Bangladesh to allow making motorcycles up to 500 cc but ban local use above 165 cc ones 

Bangladesh will allow the manufacture of motorcycles up to 500 cc but will prohibit the use of motorcycles with engine capacities higher than 165 cc.

The commerce ministry is going to amend the Import Policy Order 2021–24 to ban the import of motorcycles with engine capacities above 165 cc for use within the country.

However, manufacturers will be allowed to import machinery or parts used in the production of motorcycles up to 500 cc for the purpose of export only.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the Bangladesh Motorcycle Assemblers and Manufacturers Association are opposing the conditions to be included in the amended import policy.

According to the existing policy, registered motorcycle manufacturers can import machinery or parts used in the production of motorcycles up to 500 cc. But nothing is mentioned about whether these motorcycles can be used in the country or have to be exported.

Senior Secretary to the commerce ministry Tapan Kanti Ghosh recently held a meeting with stakeholders on amending the import order. In that meeting, it was decided that motorcycles up to 165 cc could be imported for use in the country. And higher capacity motorcycles produced with imported parts and accessories must be exported abroad and cannot be used in the country.

Opposing the decision, the FBCCI told the commerce ministry in a letter sent on 26 January that the motorcycle manufacturers have already invested a huge amount of money in research, planning, and setting up factories for the production of motorcycles up to 500 cc.

"It is not possible to cover this investment cost through exports alone. Besides, to survive in the competition on the international market and to improve the quality of the locally produced motorcycles, it is necessary to sell the motorcycles in the local market before exporting them," said the country's apex trade body.

In a separate letter, Matiur Rahman, president of the motorcycle manufacturers' association, informed the commerce ministry that some motorcycle manufacturing companies have made preparations, including the establishment of factories, to produce high-performance motorcycles.

"Besides, if the companies can sell high-performance motorcycles in the local market before entering the competitive international market, it will help to improve their quality as well as save their investment costs," the letter added.