Posts Tagged ‘reconditioned’

Bangladesh Investigates New “Used” Imports

June 24, 2008

The National Board of Revenue (NBR) of Bangladesh is looking into the possiblity of people importing brand new cars as “reconditioned” cars, mostly from Japan.

As many Japanese used car exporters are aware, brand new vehicles are quickly registered and de-registered to circumevent Japanese laws forbidding anyone besides the manufacturer from exporting new vehicles. Technically, in the eyes of the law these are no longer brand new vehicles, just new or “as-new” vehicles. Why this matter to Bangladesh NBR is that they make 50% higher import duty on cars imported as new.

To counter this, it is proposed for the new budget that for a vehicle to be considered a “reconditioned” car, it must have a space 365 days between registration and deregistration and have clocked at least 1,000 km of mileage. They hope this will close the loop hole.

It’s not all bad news for importers though. Also in the proposed budget, the government will reduce supplementary duties from 60 percent to 20 percent on import of ordinary non-luxurious microbuses with and engine size between 1500 to 1800 CC which are used for transportation of industrial raw materials and/or passengers.

Source – The New Nation

Bangladesh Proposes Higher Import Duty on Used Cars

June 12, 2008

In the proposed budget for the 2008-09 fiscal year (FY) the government has suggested the following:

  • 20 per cent SD (Supplementary Duty) on vehicles of up to 1500cc
  • 60 per cent SD on vehicles between 1,501 and 2,350cc
  • 100 per cent SD on vehicles between 2,351cc and 3,500cc.

This rates are only applied to used, also called reconditioned, cars. It may change before the budget is put into effect as the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) argues it should be reduced.

BARVIDA believes that raise the taxes on reconditioned car imports will hold back the current progress the economy is experiencing. The connection is that many small and medium businesses rely on the cheaper used car imports to do their business. We will have to see what comes as most vehicles imported come from Japan.

– Source: The Daily Star