Beauty on a budget? Not anymore as Bangladesh hikes customs values for cosmetics

In the proposed national budget for the upcoming fiscal year, the government has raised the minimum customs value on a wide range of beauty products, including lipstick, foundation, makeup kits, and compressed powders. That means shoppers may soon have to pay more for their favourite cosmetics.

According to sellers, most beauty products available in Bangladesh are imported. Even for local brands, the raw materials are largely sourced from abroad. There are also concerns about some local traders producing knockoff products and selling them under fake brand names.

WHAT'S CHANGING?

This year’s budget proposal increases the baseline customs values for makeup, chocolates and various grooming products. Customs duties are calculated based on these minimum values per kilogram or per unit, so the changes are expected to drive prices up.

Here’s an overview of the new rates:

-- For lip products, including lipstick, the minimum value has doubled from $20 to $40 per kg.

-- Similar products like lipliners, lip gels, and lip glosses will now have a set value of $20 per kg.

-- Eye makeup items such as eyeshadow, eyeliner, eyebrow pencils, and mascara will be assessed at $10 per kg instead of the previous $7.

-- Manicure and pedicure items, as well as various powders, including compressed ones, will now be valued at $10 per kg, up from $5.

-- Face and skin creams have seen their minimum value rise from $8 to $20 per kg, while moisturising lotions have gone from $8 to $10.

-- Makeup kits and foundation products will now be valued at $12, up from $6.

-- Henna cones will be assessed at $2 per kg and face washes at $10 per kg.

Beyond cosmetics, the minimum value of cocoa-based chocolates has been raised from $4 to $10 per kg.

The proposed budget also raises the minimum customs value for various types of locks. Vehicle locks and padlocks will be assessed at $3 per kg instead of $2.5, furniture locks at $3.5 up from $3, and door locks at $5 instead of $4.

With the exception of rice cookers, household appliances such as ovens, cooking plates, and boiling rings will see their per-unit minimum value rise from $6 to $12.

Additionally, a range of toys, including inflatable items, balloons, toy laser lights, marbles, and masks will have their minimum value raised from $3.5 to $4 per unit.