Move to allow some EPZ units to sell 10pc of products in local market

---

Siddique Islam
The government is considering a move to allow some enterprises located in the export processing zones (EPZs) to sell a maximum of 10 per cent of their products in the local market, on fulfilment of some criteria.
The members of the country's business community have, however, expressed mixed reaction to the move, saying that it may have a negative impact on the local industries if the system is allowed for a long period of time.
They expressed the fear that the facility might be misused and eventually might affect the local industries.
Under the proposed system, local traders will have to pay duties and value added tax (VAT) on the goods they would like to procure from the manufacturers in the EPZs just as they would do when importing from abroad.
The Ministry of Commerce (MoC) convened a meeting, to be held today (Wednesday), to discuss the matter and finalise the strategy for the purpose, official sources said.
"We will review the matter in its entirety in the light of opinions and views about the possible impact of the move. However, the decision on the issue will be taken by a high-level committee, to be headed by the Principal Secretary to the Chief Adviser", said a senior official of the ministry of commerce.
The MoC has invited the authorities concerned, including the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), to attend the meeting.
On July 16 last, the Ministry of Industries took opinions from the business community on this issue and circulated a list of 13 products, which are likely to be allowed for selling in the local markets.
The ministry asked the business community to come up with elaborate opinions about the impact of such initiative on the local industries.
The products are steel stud/fitting/forging products, blister bag, poly roll, kitchen towels, bath robe/ beach towels, all sorts of acrylic resin, styrene, vinyl acrylic, PVC resin, ploy propylene webbing, ploy propylene braid string and nylon elasticised cord, natural rubber male latex condom, rubber based products- automobile parts, rubber mats/tiles, rubber metal bonded parts, electrical- electronic parts, shoe accessories, sulpher treated/crushed oven arecanut, cushion/pillow/ blanket, textile chemical and auxiliaries and fishing boat.
Former director of the FBCCI Monzur Ahmed, who has been nominated to represent the meeting, said it is a highly technical matter so it should be reviewed thoroughly to have a clear idea about the new system.
"Certainly, it will help to reduce the transportation cost and the lead time but it must be made clear about how the legitimate interests of the local industries will be protected," Ahmed told the FE.
President of the Bangladesh Corrugated Carton & Accessories Manufacture Exporters Association Safiullah Chowdhury said it could be a temporary measure but if it is taken as a permanent measure, the local industries will be affected.
"The measure could be taken for some specific products for a certain period of time," Chowdhury added.
President of the Bangladesh Plastic Drabya Prostutkarak and Exporters Association Jashim Uddin strongly opposed the move alleging that such a move has been taken with an intention that would adversely affect the local industries.
"We don't support such an initiative that would be harmful for the local industries," he added.
Currently, a total of 258 industrial units are operating in the eight EPZs across the country.