JAGARAN CHAKMA and MOHAMMAD SUMAN

A motorcycle helmet declared at just $3, or about Tk 370, during import is being sold in the local market for as much as Tk 4,500.

The wide price difference between import values and retail rates has prompted local manufacturers and large importers to accuse customs authorities of failing to properly assess imports of the essential protective headgear for riding.

They allege that the failure encourages under-invoicing, deprives the government of revenue and undermines both local production and rider safety.

Meanwhile, a senior revenue official acknowledged that under-invoicing, where importers declare goods at lower-than-actual values to reduce taxes, remains a “major challenge” in helmet imports.

According to customs data, Bangladesh imported 8.75 lakh motorcycle helmets in 2025. The total declared value stood at $2.45 million. As per this estimate, the average import value per unit helmet is less than $3, or about Tk 370 at an exchange rate of Tk 123 to the dollar.

Last year, India supplied the majority of imports, accounting for 633,384 helmets, followed by China with 223,293 units. Smaller quantities arrived from Vietnam, Taiwan, Singapore, Indonesia and Japan.

Customs records show helmets imported from India were declared at an average value of $3.02 per unit, while those from China were valued at just $1.96.

But visits to markets in Dhaka, as well as in Chattogram, found many of the same brands selling for between Tk 1,200 and Tk 6,000, depending on model and quality.

Import data show that several Indian brands, including Vega, Steelbird, Gliders, Axor, Telish and Aerostar, were declared at prices ranging from $2.50 to $3 per unit. Many of those helmets are retailing in the local market for between Tk 1,100 and Tk 4,500.

In May this year, Narayanganj-based New Nation Automobiles imported 7,236 Gliders helmets from India, declaring a unit value of $2.52. Customs assessed the shipment at $3 per unit for duty purposes.

Even after adding duties, taxes and value-added tax (VAT), which together amount to 59 percent, the estimated landed cost would remain below Tk 600 per helmet, according to import documents. But the same brand is selling in the local market for between Tk 1,200 and Tk 4,500.

Contacted, Nurul Haque, proprietor of New Nation Automobiles, said the declared import value did not reflect the total cost of bringing a product to market.

“After adding LC commissions, shipping costs, customs duties and VAT, our cost exceeds Tk 800 per helmet. We sell to wholesalers at Tk 900-Tk 950. By the time the product reaches retailers through multiple distribution layers, the price increases further,” Haque told The Daily Star.

He said helmets priced between Tk 800 and Tk 1,200 account for nearly 80 percent of market demand.

Industry players, however, say the practice remains widespread and is hurting compliant businesses.

Rokon Sarkar, deputy director of ACI Motors, which imports helmet brands including SMK and Studds, said compliant importers are facing mounting pressure as some traders allegedly understate helmet values to reduce taxes.

“Some importers are declaring a helmet at only $2.5, while we declare the actual price, around $15, and pay taxes and VAT accordingly,” he told The Daily Star.

He said the practice allows some importers to avoid a substantial portion of the roughly 62 percent duty and tax on helmet imports, making it increasingly difficult for compliant businesses to compete.

According to Sarkar, under-declaration is also contributing to the spread of lower-quality helmets while reducing government revenue.

ACI Motors previously imported premium Italian brands Nolan and X-Lite, which sold for between Tk 25,000 and Tk 60,000.

Motorcycles have become increasingly popular in major cities as a fast and affordable means of transport. According to Bangladesh Road Transport Authority (BRTA) data, the number of registered motorcycles stood at 45.8 lakh at the end of 2024, up from 31.25 lakh four years ago.

At the same time, motorcycle crashes have emerged as the leading cause of road fatalities. According to the Road Safety Foundation, motorcycles were involved in around 40 percent of all fatal road crashes in 2025.