"Unabated smuggling of China origin lens and frames into the country through Teknaf border has created an uneven competition that we are facing now," Bangladesh Optical Industries and Traders Association (BOITA) said in its budget proposal for 2004-05.

The association urged the government to allow zero-duty import of raw materials and withdraw value added tax (Vat) from local production to help grow the local industry.

A legally imported frame costs Tk 80-100 while cost of a locally manufactured one is Tk 40-80. But smuggled frames are available in market at Tk 30-40 each, industry sources said.

"Raw material prices shot up by 60-70 percent in last few months, forcing many frame and lens producers to stop production," said Manjurul Hoque Sikder, president of BOITA.

The price of wire rose to $4,500-$6,000 per ton from $2,500-$3,000 a year ago in the international market, he said. "Price of other steel and iron products also rose."

According to National Board of Revenue (NBR) sources, the import volume of frames is negligible, though the market is big enough. "The local demand is largely met by frames and lens that come through illegal channels," a leader of BOITA said.

In the budget proposal, the association said smuggling controls 70 percent of the market.

The spectacles manufacturers demanded lifting of 15 percent customs duty on raw materials such as wire, blanks and demos plastic and natural abrasive, and 7.5 percent duty on raw materials for making frames to stay competitive.

They also demanded the local production be exempted from 15 percent value added tax (Vat).

"The government should provide incentives to help us remain competitive. We don't get any support from the government's export diversification project," the BOITA chief said.

At present, some 50 firms produce lens and meet 60 percent of domestic demand while three companies produce frames to meet 50 percent of requirement. Last year, local manufacturers exported frames worth $ 1 lakh to South Korea and Saudi Arabia.