Local steel building manufacturers for duty-free raw material import

Steel building makers on Sunday urged the government to allow the local companies to import duty free raw materials for further flourishment of the industry.

They also called on the government to reduce customs duty on import of pre-fabricated raw materials of steel building products.

The local steel building makers demanded budgetary measures to stop duty free import of finished goods to safeguard the local industry.

Steel Building Manufacturers Association (SBMA) of Bangladesh held a post-budget virtual press briefing, addressed by its President Jowher Rizvi and General Secretary Md Rashed Khan. 

The government provides duty-free import facilities on steel finished products to some foreign companies for their establishment in BEZA, power plants and LNG units despite the fact that local steel building manufactures have the capacity of producing international standard products in their factories in the country with all modern equipment, said Mr Khan.  

He alleged that some foreign companies have been importing surplus finished steel goods exploiting the government’s duty-free import facilities and supplying those products to the open market putting the local steel manufacturers into an unfair competition.

“The existence of local steel manufacturers will be in dire consequences, if this situation prolongs,” he said requesting the government to withdraw duty-free import facilities on finished steel products and allow the local companies to import duty free steel raw materials for further flourishment of the industry.

Commercial importers pay 5.0 per cent customs duty (CD) in importing steel goods while the rate is 25 per cent for importing raw materials by local steel manufactures, the SBMA leader said.

“The custom duty should be less for the manufacturers than the commercial importers for the greater interest of the country’s industrialization,” he observed. 

The SBMA leaders demanded for removing the discrimination and reducing the customs duties on imported raw materials for steel building products.

The local steel manufacturing companies have the capabilities to meet the entire steel demand of the local market, Mr Rizvi said urging the government allowing the SBMA members to participate in the government’s tenders. 

The SMBA president said the industry has been facing significant financial loss worth Tk 100 billion due to the outbreak of Covid-19 pandemic since December to till date as 95 per cent of the industrial raw materials are imported from China.

There are some 30 pre-fabricated steel building industry under SBMA while another 200 that are not association with the trade body are in operation.

The SBMA president demanded making speedy disbursement of the stimulus package announced by the Prime Minister to recover the shattered economy wreaked by the pandemic. 

The SBMA leaders said all industries will be saved once the pre-fabricated steel building industry is protected.

In recent years, pre-fabricated steel buildings have become popular due to its affordability, earthquake tolerance and good to maintain global compliance at low cost.

About 0.2 million people are directly and another 0.8 million people are indirectly associated with the industry, they said adding more than 0.0 million workers and employees are in the risk to lose their jobs due to the pandemic.

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