The National Board of Revenue has allowed import of painted completely knocked down (CKD) motorcycles to facilitate the local assembling industry.
Customs wing of the revenue board has recently extended the benefit up to June 30, 2021, suspending the previous ban on import of painted CKD motorcycles.
Officials said that the benefit was offered following a demand made by the Bangladesh Motorcycle Assemblers and Manufacturers Association.
The revenue board in the budget for the current fiscal year 2020-2021 discontinued the benefit it had offered for the last few years through amending a directive issued in 2015, they said.
Motorcycle assemblers under a policy issued in 1997 by the NBR could import painted CKD motorcycles.
Though the NBR in 2015 scrapped the benefit, it later continued the facility until June 2020.
Since then, local manufacturers had been demanding continuation of the scope for painted CKD motorcycle import to cope with the negative impact of coronavirus outbreak.
Investment in the sector was also affected due to the discontinuation of the facility as entrepreneurs, encouraged by the policy support, made a huge investment in the sector.
The discontinuation of the painted CKD motorcycle import also affected supply of the vehicle on the local market, industry insiders said.
Motorcycle assemblers usually import parts of motorcycle (CKD) and assemble in their local plants.
Many assemblers do not have enough facility to paint the parts, they added.
ACI Motors executive director Subrata Ranjan Das said that the continuation of painted motorcycle import facility would help the sector.
But there are many other problems affecting import of CKD motorcycles as customs officials are halting release of the products over definitions of several technological matters put in the 1997 policy.
The definitions are now outdated but officials are creating obstacles to releasing the imported CKD motorcycles due the definitions, he said.
A huge number of motorcycles of various companies have remained stuck in ports, he added.
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