Banks reluctant to open LC for car import: Dealers

Despite fulfilling the criteria of 100 per cent margin, importers cannot open LCs from banks to import cars putting this business in dire straits, said stakeholders at a meeting on Thursday.

Importers also called for considering cars as necessary product and demanded incentives for hybrid cars like other countries.

They shared their sufferings during the 2nd meeting of the FBCCI standing Committee on Automobile held on Thursday at the FBCCI office in Dhaka.

According to the press release, in Bangladesh cars have long been considered as luxury items and the government has imposed a 100 per cent LC margin on importing cars to deal with the dollar crisis.

However, in view of the country’s current economic growth, cars have appeared as the daily necessary items, businessmen said. There is no alternative to trucks and pickups for goods transport, they added.

Mentioning the contribution of truck and pickups during the Covid-19 pandemic, members of the committee said these vehicles kept the supply chain afloat. Hence, they urged the government to keep cars out of the luxury list.

In contrast to the global trend, in Bangladesh currently BRTA does not register electric vehicles. Therefore, businessmen urged the government to introduce registration policies for EVs.

Speaking as the Chief Guest FBCCI President Md Jashim Uddin informed that a foreign company had already taken initiative to manufacture electric vehicles in Bangladesh.

This investment might fail if the registration is not given which will discourage other foreign companies from investing in the automobile sector in the country, he said.

FBCCI Vice-President and Director in-Charge of the committee Md Habib Ullah Dawn said, “During this global crisis, we agreed with 100 per cent LC margin decision but the banks do not want to open LC.”

He called for solving the duty obstacles and demanded incentives for the automobile industry.

BRTA should include FBCCI representatives on behalf of the businesses for business-friendly and realistic policy formulation.

While chairing the meeting, the chairman of the committee and Runner Automobiles Ltd Hafizur Rahman Khan also demanded incentives for the sector.

Joining the open discussion businessmen demanded amendment to the rule of mandatory driving license while purchasing motorcycle, harassment free issuance of driving license, specific HS code for electric vehicle, registration for three wheelers and sector-friendly policy support.

Among others, FBCCI Senior Vice President Mostofa Azad Chowdhury Babu, Director Md Rejaul Karim Rejnu, CIP, M G R Nasir Majumder, Bijoy Kumar Kejriwal, Hafez Harun, Iqbal Shahriar, Md Aslam Serniabath, Abu Hossain Bhuiyan (Ranu), Akkas Mahmood, Committee Co-Chairmen Matiur Rahman, Abdul Haque, Taskeen Ahmed, Abdul Hamid Sharif, Maj. Gen. AKM Abdur Rahman, OSP, NDC, PSC (Retd.) and Mahbubul Haq Chowdhury Babur were present at the meeting.