Car importers still unable to open LCs from banks

Despite fulfilling the criteria of 100 percent margin, importers cannot open letters of credit (LCs) from the banks for importing cars, pushing this business to dire straits, reports UNB.

Businessmen said this during the second meeting of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) standing committee on automobile in Dhaka Thursday.

In Bangladesh, cars have long been considered luxury items, and the government has imposed a 100 percent LC margin on importing cars to deal with the dollar crisis. However, in the context of the country's current economic growth, cars have appeared as a necessary item, they said.

"There is no alternative to trucks and pickups for goods transport on the road. These vehicles kept the supply chain running during the height of the Covid-19 pandemic," the businessmen said.

They urged the government to keep cars out of the luxury list and called for incentives for hybrid cars like in other countries.

In contrast to the global trend, in Bangladesh, the Bangladesh Road Transport Authority BRTA does not register electric vehicles. So, businessmen urged the government to introduce registration policies for electric vehicles.

FBCCI Vice-President and Director in-charge of the committee Md Habib Ullah Dawn said: "During this global crisis, we agreed with a 100 percent LC margin decision, but the banks do not want to open LCs and discourage us through continuously seeking different documents."

Also, the businessmen demanded amending the rule of mandatory driving licence while purchasing a motorcycle, harassment-free issuance of driving licence, specific HS code for an electric vehicle, registration for three-wheelers and sector-friendly policy support.