Raise customs duty to protect local chemical industry: LSMAB

Local producers of sodium lauryl ether sulphate (SLES) and linear alkyl benzene sulphonic acid (LABSA) – two ingredients used for making personal care and cleaning products – have urged the government to raise import tariffs to safeguard the domestic chemical industry.

Local manufacturers have the capacity to meet 100 percent of domestic demand for both chemicals, which are essential for making shampoo, hand wash, detergent, and dishwashing liquid, the LABSA and SLES Manufacturing Association of Bangladesh (LSMAB) said in a statement.

Bangladesh mostly meets its demand for SLES through imports from India and China, and half of LABSA's demand through imports from India, the association said.

Five LSMAB member companies – Rhymer Chemicals Ltd, Crescent Chemicals Ltd, United Sulpho Chemicals Ltd, Liberty Chemicals Ltd, and Wata Chemicals Ltd – currently produce the two ingredients locally, the association said.

Despite the presence of the five local producers, the country is still heavily dependent on imports due to the low customs duty on the products, which currently stands at 10 percent, the association said.

The government should now raise the customs duty on imports of the two ingredients for the sake of the local industry, the LSMAB said.