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BANGLADESH: Go-ahead Given for Domestic Mobile Phone Manufacturing/Assembly

Mobile phone handsets are to be manufactured and assembled in the country for the first time under a new government initiative designed to boost domestic businesses and limit the number of imported mobile phones. As part of the same policy, duty on imported mobile phone parts was cut from 25% to 1% earlier this year, while the duty payable on imported handsets was increased from 5% to 10%.

Would-be manufacturing/assembly companies will have the option of applying for one of two different operating certificates. The type A certificate will cost an initial Taka 1-5 million (US$12,000-60,000), with an annual fee of Taka 500,000 also payable. As well as granting manufacturing rights, this will also entitle successful applicants to establish and manage their own testing laboratories.

Under the terms of the B certification, companies will be obliged to use the testing facilities of type A certification holders or submit 5% of their output for approval by an internationally-accredited testing facility until such a time as a domestic alternative is established. The cost of a B certificate, however, is notably lower, with an initial charge of Taka 500,000-2 million and an annual fee of Taka 200,000. All certificate holders, regardless of category, will also be liable to pay VAT at a rate of 15%.

A final date for the implementation of these measures has yet to be announced.

Content provided by Picture: HKTDC Research
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