The government has drafted a guideline to encourage manufacturing and assembling of handsets in Bangladesh, following up on its earlier move to slash customs duty for mobile parts by 24 percentage points to 1 percent.
The move is part of the government's efforts to hold on to the vast sums of foreign currency needed to import handsets.
In 2016, Bangladesh imported 3.1 crore units of handsets for Tk 8,000 crore, according to the Bangladesh Mobile Phone Importers Association. Besides, about 50 lakh handsets enter the country illegally every year, according to the telecom watchdog.
“Mobile handsets need to be made in our country and it should be done under a framework,” said a commissioner of the Bangladesh Telecommunication Regulatory Commission who attended the recent meeting in which the draft guideline was approved.
The telecom regulator, however, will not impose any restrictions on the import of the devices even after the assembly plants start rolling.
Walton and some other local companies have already submitted proposals to set up assembly plants, while some international brands have expressed their interest, he added.
The BTRC will give two types of certification for handset assembly plants, according to the draft guideline.
For the 'A' category certificate, the fee will be Tk 10 lakh to Tk 50 lakh and annual fees will be Tk 5 lakh. For 'B' category certificate, the fee will be Tk 5 lakh to Tk 20 lakh and annual fees will be Tk 2 lakh, according to the draft guideline.
Both the categories have to bear 15 percent value-added tax.
As per the draft guideline, the 'A' category companies will have to set up testing laboratories on their own; the 'B' category companies will have to test their devices at 'A' category labs.
Until the establishment of the testing labs, the plants will have to get at least 5 percent of their devices tested at internationally accredited labs and the report must be submitted to the BTRC.
Besides, every plant will have to put in place electronic waste management system, service centre and collection centre up to the district level.
Mobile importers have welcomed the draft guideline.
“Time has come to turn Bangladesh into a device manufacturer from a handset importer,” said Rezwanul Hoque, a former general secretary of the BMPIA.
The BTRC also wants to make Bangladesh a device exporter and earn foreign currencies.
The regulator said the scope to set up manufacturing or assembly plants will provide the local entrepreneurs with the opportunity to invest in technology that will also create jobs.
It will also boost teledensity in Bangladesh and will take the country one step closer to Digital Bangladesh, according to the telecom watchdog.
Teledensity is the number of telephone connections for every 100 individuals living within an area.
To discourage imports, the government also doubled the customs duty on handset imports to 10 percent. There are some other import taxes as well as 15 percent VAT.
Source: http://www.thedailystar.net/business/btrc-drafts-policy-mobile-assembly-1458691