The Bangladesh Trade and Tariff Commission has suggested restricting imports by increasing charges and tariffs on 330 non-essential commodities, including foreign fruits, gold, alcohol, beer, cellphones, vehicles, air conditioners, refrigerators and spices.
A commission study claims that the action will help alleviate the ongoing US dollar shortage on the local market and help replenish the country's declining foreign exchange reserves.
The commission recently forwarded the report to the Commerce Ministry, which warns that the import restriction may hinder the collection of import duties and result in a price increase brought on by stockpiling.
In FY22, Bangladesh spent $82.50 billion for imports as exports brought in $49.24 billion, registering a $33.24 billion trade deficit.
The government has been undertaking several measures for the past couple of months to ease the dollar crisis. As part of the initiatives, the commission has come up with the report.
According to Bangladesh Bank data, non-essential items accounted for around 30% of import bills in FY22. The single largest sector of import expenditure was the import of non-essential goods.
The Tariff Commission's list of non-essential goods includes cigarettes, cigars or tobacco products, foreign fruits, coffee, green tea, tea leaves, pepper, and many more.
There are also plastic plates, bath tubs, kitchen basins, doors and windows, etc.
Besides, the report recommended controlling import of gold ornaments and gold bars.
Currently, a Tk2,000 customs fee is required for the importing gold bars under the baggage rule. It is advised that it be raised to Tk3,000. Additionally, it has advocated for adding a 10% additional charge to imports of smartphones.
Imports of goods that won't likely have a negative impact on industrial production have been advised to be temporarily discouraged.
However, it has been suggested to raise the tariff and tax on all consumer goods that are typically purchased by the wealthy.
The report also emphasizes the need to prevent the misuse of raw materials imported through a bond facility in order to preserve the dollar. According to the commission, properly managing the storage of goods for export can also help preserve foreign currency.
As the import curbing may drive up import by misdeclaration, under invoicing and smuggling of goods, the commission also calls for intensifying market monitoring.
