Battery producers seek duty hike on foreign item

Local battery manufacturers have urged the government to protect the local industries by imposing increased duty on its import as they set a target to increase their export to $250 million in next five years from existing $30 million.

Sharing this information with National Board of Revenue (NBR), Bangla-desh Accumulator and Battery Manufacturers Association (BABMA), a representing trade body of the sector, has urged the government to take move for preventing import of substandard foreign batteries, mainly coming from China, by imposing increased duty on import.

It also suggested for encouraging the use of local batteries decreasing import duty on some raw materials to be used by local manufacturers. The BABMA recently placed their suggestions to the customs authority through a letter. The trade body also placed the proposals during a meeting with the NBR recently. It sent similar proposal to FBCCI, a copy of which obtained reports UNB.

The BABMA said the local manufacturers have been exporting industrial, automotive and power storage batteries to about 55 countries across the globe after meeting the local requirements. At present, about 1.8 million units of batteries are being manufactured annually by different local industries. Of these, about 590,000 are being produced as automotive battery, which are being mainly used by motor vehicles and motor cycles.

Some 437,000 batteries are being used by IPS and UPS as backup power storage while generators and heavy industries are using about 100,000 and solar panels are using 700,000 batteries.To this addition, local manufacturers are exporting one million units of batteries to different countries.

"We've opened a new horizon in our export destination. Now we need policy support from the government to continue our efforts to enhance export," Munawar Moin, told president of the BABMA.He also said the local manufacturers are confident to reach the target of increasing the export volume to $250 million within five years if they get policy supports.

As per BABMA recommendations, the supplement duty on import of finished batteries should be raised to 40 percent from current 20 percent while import duty should be highest to protect the local industries.The BABMA alleged that a section of unscrupulous importers are dodging huge import duties by making false declaration while importing substandard batteries.

"Such illegal imports cast a very negative impact on the whole local industries as they sell such batteries to local markets," said the trade body adding that locally about 30 battery industries just came to the commercial production which need protection as they create employments as well.