Withdraw import ban on used EVs: BARVIDA

Star Business Report

The country’s reconditioned vehicle importers have urged the government to withdraw the ban on imports of reconditioned and used electric vehicles (EVs), saying the restriction could deprive consumers of access to affordable and newer automotive technologies.

The Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA), through a press release yesterday, said reconditioned EVs could be imported under a regulated framework while maintaining international safety, environmental and technical standards.

The association said the government’s new import policy, published on August 24, completely prohibits the import of used and reconditioned electric vehicles, despite such vehicles being widely used and traded in many countries.

According to BARVIDA, reconditioned electric vehicles are being exported regularly from countries including Japan, South Korea, Germany and other European nations. Several countries allow the import of used EVs subject to age limits, safety requirements and other regulatory conditions.

BARVIDA argued that new EVs remain beyond the purchasing capacity of many middle- and lower-middle-income consumers, while reconditioned EVs could offer a more affordable alternative. It said expanding access to EVs could also help Bangladesh move towards its target of increasing the use of electric vehicles in the transport sector by 2030.

The association proposed allowing the import of used or reconditioned EVs for up to five years. It also recommended setting a minimum battery State of Health (SOH) of 70 percent and making battery-life certification by the relevant authorities mandatory to protect consumers.

It further called for mandatory inspection and certification by authorised agencies before imported EVs are cleared.

BARVIDA proposed banning the import of EVs that have been damaged by floods, fires or serious accidents, as well as vehicles with significant structural damage. It also called for a battery recycling and safe-disposal framework and incentives for investment in charging stations, servicing, battery diagnostics and recycling facilities.

The association also sought a review of the existing duty and tax structure for electric vehicles, saying the current price-based structure should be reconsidered in consultation with relevant sectors. It recommended reviewing the age limit and other import conditions after evaluating the policy’s impact over a specified period.

“Bangladesh is going through a period when we need to protect the environment, save fuel and foreign currency, safeguard consumers’ purchasing power, increase investment and employment, develop charging infrastructure and lay the foundation for the country’s future EV industry,” BARVIDA said.

The association said its appeal had already been submitted to the relevant ministries and the highest levels of government. It expressed hope that the government would reconsider the ban in the public interest.

BARVIDA Secretary General Reaz Rahman said the association would be compelled to pursue a stronger programme if the government did not address the concerns of businesses involved in the reconditioned vehicle sector and consumers, according to the release.

The press release said current and former leaders of BARVIDA and businesspeople associated with the sector attended a human chain organised by the association.