Bangladesh's mobile market is at a turning point. The government is rolling out the National Equipment Identity Register (NEIR) to block unregistered and smuggled phones. In recent weeks mobile traders staged protests over high duties and NEIR enforcement. BTRC chairman Maj Gen (retd) Md Emdad ul Bari counters that legal devices, those brought in through official channels, will remain active and even be made more affordable. Importantly, regulators say NEIR and new tax measures aim to curb massive revenue losses and support local industry.
Crackdown on Illegal Imports
Under NEIR, any phone without a valid IMEI (identity number) will be deactivated after a grace period. This is intended to stop unauthorised, cloned and refurbished phones from flooding the market. Without this, prices of large volumes of illegal and refurbished sets enter the country. NEIR will help detect these devices and protect domestic manufacturers.
Consumers have been reassured that phones already active on networks will stay on, and even expatriate workers get relaxed rules: those with BMET registration can bring in up to three phones tax-free (one personal plus two new). In short, the government is phasing in enforcement and easing some import rules to prevent a sudden supply shock.
"Official imports ensure quality, safety, and reliable after-sales support. They increase the local demand for packaging, transportation, retail infrastructure, and other supplier services, keeping a meaningful share of the value chain within the domestic economy."
— Md Asaduzzaman Director of Marketing Xiaomi Bangladesh
Tax and Duty Reforms
Simultaneously, officials are preparing sharp duty cuts on legal imports. Smartphones through official channels currently carry about a 58%–61% tax burden.
Crucially, the cuts will be coordinated with local industry: any duty reduction on imported phones will be matched by lower VAT and other taxes for the 13–14 domestic assembly plants. As Faiz Ahmad Taiyeb, special assistant to the chief adviser for the Ministry of Posts, Telecommunications and Information Technology, explained, the aim is "fair competition"—protecting the Dhaka factories that build phones for brands like Samsung, Walton, Vivo, Oppo and others. In fact, the government has already instructed that tariffs on handsets assembled locally be lowered in step with import cuts. This alignment is meant to keep foreign investment coming into Bangladesh's budding phone-making industry.
Economic Benefits of Legal Imports
"The most important phenomenon is that official imports generate broad, measurable economic value far beyond the product itself," said Md Asaduzzaman, Director of Marketing in Xiaomi Bangladesh. "They contribute directly to government revenue through customs duties, VAT, and income taxes, while also creating formal, salaried employment across logistics, sales, finance, compliance, and after-sales services." At the same time, they increase local demand for packaging, transportation, retail infrastructure, and other supplier services, keeping a meaningful share of the value chain within the domestic economy. Official brands also invest significantly in nationwide spare parts and technical training, which improves consumer protection, skill development, and service-sector growth. Collectively, these factors support business formalisation, strengthen investor confidence, and lay the groundwork for future local manufacturing and higher foreign direct investment.
In contrast to the informal grey market, this is stable employment with benefits. Beyond factories, official imports support a wide network of distributors, retailers and service technicians. Bangladesh had around 38 lakh of total handset sales in the first half of 2024, and each legal sale involves logistics, retail staff, and warranty support.
Official phones come with valid warranties and certified quality. Illegally imported sets often lack any warranty and can be substandard. By contrast, legally imported smartphones must meet regulatory standards and can be repaired or exchanged locally.
Consumer Access and Affordability
A key concern is whether clamping down on grey phones will make handsets unaffordable. For example, an iPhone 17 Pro Max is officially around 220,000-250,000 taka, but in the grey market, the cost decreases to 180,000-190,000 taka. "While illegal phones may appear cheaper, they evade taxes and provide no warranty or consumer protection," Asaduzzaman added. "To keep phones affordable, we are expanding locally assembled models and strengthening entry-level offerings, and many brands are providing financing and instalment plans so consumers can access reliable devices at fair and comfortable prices."
In practice, companies are also looking at ways to keep prices competitive. On balance, authorities say, consumers will gain safer, guaranteed phones at gradually lower net prices once the policy changes settle in.
Overall, in the long term, these measures will strengthen Bangladesh's digital ecosystem. Greater formal imports mean more tax revenue for infrastructure, more jobs in tech and retail, and higher-quality devices for users. Once the NEIR is fully enforced and duties are adjusted, the expectation is for sustained growth in smartphone adoption, which will serve as a key driver of the country's digital economy.
