Govt may cut mobile phone import duty to curb illegal imports

• Government mulls smartphone duty cut before NEIR
• Agencies align taxes to support manufacturers
• Expatriates allowed limited duty-free handset imports
• NEIR to block cloned and stolen phones

The government is considering reducing import duties on legally imported smartphones ahead of the launch of the National Equipment Identity Register (NEIR) on December 16.

The National Board of Revenue (NBR), the commerce ministry and the Bangladesh Telecommunication Regulatory Commission (BTRC) have agreed on measures to curb unauthorised imports, support local manufacturers and ease rules for expatriates, said Faiz Ahmad Taiyeb, special assistant to the chief adviser for the Ministry of Posts, Telecommunications and Information Technology, yesterday.

"Work on the duty cut is already in progress. Any reduction in duties on imported phones will be matched by adjustments to VAT and other taxes for the country's 13 to 14 assembly plants to ensure fair competition," Taiyeb said.

He warned that without such alignment, foreign investment in Bangladesh's mobile device manufacturing sector could face setbacks.

NBR Chairman Md Abdur Rahman Khan told The Daily Star, "We will make decisions based on the broader national interest. We are not saying that duties will be reduced immediately, but the matter is under consideration."

Currently, import duties on legally imported smartphones stand at about 61 percent.

The move comes after a protest by the Mobile Business Community Bangladesh on November 30, when many mobile shops closed their doors over high import taxes and the upcoming NEIR rollout.

NEIR is expected to block unauthorised and stolen devices. Industry leaders have welcomed the move, though traders fear unsold stock without a valid International Mobile Equipment Identity (IMEI) registration will become worthless.

Taiyeb reassured consumers that any handset already in use and activated before December 16 will not be blocked once NEIR becomes operational.

He added that the government is also preparing to crack down on used foreign handsets being imported as new. Customs has already identified flights from India, Thailand and China for targeted enforcement.

The proposed Telecommunication Ordinance 2025 will further enhance safeguards for IMEI and electronic know-your-customer (eKYC) data.

During a recent inter-agency meeting, officials decided that expatriate Bangladeshis may use personal smartphones for up to 60 days without registration. Those staying longer will need to register under NEIR.

Those with Bureau of Manpower Employment and Training (BMET) registration cards can bring one personal handset plus two new devices duty-free; a fourth device will incur duty. Travellers without BMET registration may bring one additional handset tax-free.

Currently, Bangladeshi travellers can bring two devices duty-free.

Authorities also urged travellers to carry proof of purchase, noting that smugglers at airports in Malaysia, Thailand, Singapore, and the Middle East often pressure migrant workers to carry high-value items.

The BTRC and NBR are continuing discussions with the commerce ministry to align taxes on imported and locally assembled devices, with final decisions expected soon.

The inter-agency meeting also stressed consumer safety, warning users not to let others operate SIM cards registered in their name, which are often used for cybercrime, scams, and mobile banking fraud.

Bangladesh will block cloned, stolen, and refurbished phones from entering the market. Importers may legalise devices with valid IMEI numbers brought in before December 16 by paying reduced duty, but cloned and refurbished units will not qualify.