In a report recently submitted to the Bangladeshi Ministry of Commerce, the Bangladesh Trade and Tariff Commission (BTTC) has said that high tariff protection on billet imports is damaging local customers, especially with local steel prices remaining high. A panel from the commission prepared the report according to the decision of the ministry to examine the reasons for volatility in the prices of main commodities, including steel products.
"The quantity of imported steel products is very low in the domestic market because of excessive protective tariffs. Besides, high protection reduces efficiency of producers and leads to an increase in production cost, which ultimately harms users," the BTTC said.
The BTTC also stated that customers have to pay 44 percent customs duty to import billet, apart from paying TK 500/mt ($4.84/mt) as advance income tax. Additionally, finished products attract an import duty of 89.32 percent, SteelOrbis understands.
The commission added that, even though import prices have declined, consumers are negatively affected since local prices have not moved down.
The BTTC has asked government to monitor global prices and adjust domestic steel prices accordingly and suggested that producers should inform the government before updating their prices and offering them to the local market.