Duty evaded for most imported cosmetics

Most imported cosmetics being sold in Bangladesh have not had their duty and tax paid, said AHM Shafiquzzaman, director general of the Directorate of National Consumers Right Protection, yesterday. 

"Ultimately consumers are suffering. But it is possible to run a business with integrity if anyone wants to," he said, adding that the directorate was working to protect the rights of consumers.

Tap here to add The Daily Star as a trusted source

Shafiquzzaman was addressing a meeting organised by the directorate with representatives of cosmetics importers and retailer on its premises in Dhaka centring irregularities unearthed during monitoring at several markets of Dhaka, including Gulshan and New Market.

The directorate said to have found importers not providing maximum retail prices (MRPs) on the products, rather it was the retailers who fixed MRPs. In some cases, MRPs provided by importers are replaced with higher prices of retailers, it said.

Fake cosmetics were found being sold with the claim that those had been imported, it added. Use of fake cosmetics can cause skin damage and lead to complex diseases like cancer, said the directorate.

The directorate said to have fined 10 shops Tk 8 lakh in the last couple of days.

Some cosmetics retailers at the event denied the allegations.

Al Ameen, supervisor of Mustafa Mart, said, "In our shop, the product has a price tag, importer information and expiry date along with manufacturing date. We sell the product at the price that the importer sets."

Mohsin Howlader, the owner of Dhali Super Store in Gulshan, gave similar comments.

Azmol Hossain, general secretary of the Bangladesh Cosmetics and Toiletries Importers Association, said some unscrupulous traders were illegally importing cosmetics from different countries in connivance with a section of customs officials.

"As a result, genuine traders are facing various challenges in running their business," he said.

Research organisations LightCastle Partners and Allied Market Research said an estimated $1.23 billion-worth skincare and personal care products were sold in Bangladesh in 2020 and the amount is expected to hit $2.12 billion by 2027.

Businesspeople said the market is dominated by some major players, notably Unilever Bangladesh, Kohinoor Chemical Company (Bangladesh), Square Toiletries, Keya Cosmetics, Moushumi Industries, Marico Bangladesh, Reckitt Benckiser (Bangladesh), Dabur, and Lily Cosmetics of Delta Group.

These companies together hold more than 95 per cent of the market share for local products, they added.

Bangladesh imports cosmetics worth around Tk 10,000 crore every year, according to the cosmetics importers' association.