The New Nation - Internet Edition

IN an exceptionally quick response to the demand of the shipbuilders, the government has announced a policy package to boost the rapidly growing shipbuilding industry treating this as a thrust sector. Under the policy the shipbuilders will enjoy 'bonded warehouse' facilities like the export-oriented readymade garment industries.

Shipbuilding in Bangladesh emerged as a potential sector in recent years when two local builders got export orders worth over US$150 million. Foreign orders jumped to 350 million dollars within a year. The shipbuilders import 80 percent of the raw materials and hundred percent of the machinery. The problem with this import is that customs clearance of those goods take three to four months. In a bid to avoid the hassles, the shipbuilders had been demanding different facilities. Under the latest government response, the shipbuilding sector will enjoy facilities including duty free import of raw materials and tax holiday for ten years.

The National Board of Revenue has imposed some conditions with a view to preventing sale of the imported goods to the local market. While such conditions are necessary, precautions must be taken so that those do not hamper the growth of the sector. It is gathered that a sort of vacuum in shipbuilding prevails internationally. The shipbuilding industry should take advantage of this to grow as a strong contender. The government should also expedite the installation of the proposed steel industry with a production capacity of two million tons of hot rolled steel sheets to bring an end to the dependence on imported sheets. The builders must make quality ships at competitive costs to hold and expand the market.