Surge in used car import ahead of budget
Traders are bringing in thousands of reconditioned cars ahead of announcement of budget fearing imposition of higher levies on import of used vehicles in the new fiscal year beginning on July 1 next.Shipping intelligences said that a total of 4,842 used cars, more than double the usual monthly import, have already reached the two ports during first three weeks of May.
NYK Shipping Lines carrying 1,599 cars has reached the Chittagong port and 172 the Mongla port. Everest Bangladesh Ltd., another car carrier, has brought 2,016 at Chittagong port and 326 at Mongla port.
NYK Shipping Lines carrying 1,599 cars has reached the Chittagong port and 172 the Mongla port. Everest Bangladesh Ltd., another car carrier, has brought 2,016 at Chittagong port and 326 at Mongla port.
http://prothom-alo.com/detail/date/2010-05-22/news/65139
Prime Logistics, a new car carrier, has also carried 520 cars for Chittagong port and the 209 for the Mongla port during the period. As of Friday, the number of cars poled up at the two ports is 5,700, including 1,600 at Mongla port.
Chittagong port has 4,100 used cars against its capacity of around 4,000 at its different sheds.
One senior official at the traffic department of Chittagong port told the FE that the delivery of cars was slower compared with the import flow.
Around 130 cars are now being delivered from Chittagong port and around 20 from Mongla port a day. Habibullah Dawn, president of BARVIDA (Bangladesh Reconditioned vehicles Importers and Dealers Association) said: "Rumour relating to higher tax imposition on the vehicles in the coming budget is the main reason for record number of imports of used cars this month."He also said the buyers want to purchase before the national budget imposes higher tax on the reconditioned cars.
However, Rahat Bin Asad, managing director of Everest Bangladesh Ltd, said that his ship will carry around 3,000 cars during the first week of June, just before the announcement of national budget in parliament. Rabi Shankar, operation manager of NYK Shipping Lines said that his carrier would also carry a good number of used cars before the budget.
Import of reconditioned cars has been witnessing the biggest boom in the country's history, boosted by a surge in bank finance and the buying spree by emerging upper middle class people in the city.Habib Ullah Dawn, president of BARVIDA, said people in the middle income bracket are the main buyers in recent times as the cost of other hired means of transportation increased sharply.
Local car importers now can import up-to five year old cars as per the latest import policy. BARVIDA chief said there should be a permanent policy relating to import of reconditioned cars to stop spread of rumour ahead of budget every year.
Prime Logistics, a new car carrier, has also carried 520 cars for Chittagong port and the 209 for the Mongla port during the period. As of Friday, the number of cars poled up at the two ports is 5,700, including 1,600 at Mongla port.
Chittagong port has 4,100 used cars against its capacity of around 4,000 at its different sheds.
One senior official at the traffic department of Chittagong port told the FE that the delivery of cars was slower compared with the import flow.
Around 130 cars are now being delivered from Chittagong port and around 20 from Mongla port a day. Habibullah Dawn, president of BARVIDA (Bangladesh Reconditioned vehicles Importers and Dealers Association) said: "Rumour relating to higher tax imposition on the vehicles in the coming budget is the main reason for record number of imports of used cars this month."He also said the buyers want to purchase before the national budget imposes higher tax on the reconditioned cars.
However, Rahat Bin Asad, managing director of Everest Bangladesh Ltd, said that his ship will carry around 3,000 cars during the first week of June, just before the announcement of national budget in parliament. Rabi Shankar, operation manager of NYK Shipping Lines said that his carrier would also carry a good number of used cars before the budget.
Import of reconditioned cars has been witnessing the biggest boom in the country's history, boosted by a surge in bank finance and the buying spree by emerging upper middle class people in the city.Habib Ullah Dawn, president of BARVIDA, said people in the middle income bracket are the main buyers in recent times as the cost of other hired means of transportation increased sharply.
Local car importers now can import up-to five year old cars as per the latest import policy. BARVIDA chief said there should be a permanent policy relating to import of reconditioned cars to stop spread of rumour ahead of budget every year.
http://www.thefinancialexpress-bd.com/more.php?news_id=100839&date=2010-05-22
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