Regulatory gaps hold back global competitiveness

Jamal Uddin
General Secretary Association of Skin Care & Beauty Products Manufacturers & Exporters of Bangladesh (ASBMEB)

The Daily Star (TDS): Could you provide an overview of Bangladesh's cosmetics and toiletries industry?

Jamal Uddin (JU): The annual market for cosmetics and skincare products in Bangladesh exceeds Tk 24,000 crore. Although this sector holds significant potential for the country, the presence of counterfeit and smuggled products poses a serious challenge to the market for quality goods.

Despite notable growth in Bangladesh's cosmetics and skincare industry in recent years, there remains a lack of a proper regulatory framework for import, production, and marketing. Compared to the guidelines of the Central Drugs Standard Control Organization (CDSCO) in neighbouring countries, several important regulations and controls are absent in Bangladesh. In many countries, even at the supplier level, manufacturers are required to declare whether harmful chemicals are being used as raw materials in products. However, no such system exists in Bangladesh, posing a threat to the domestic industry.

Furthermore, the existing process for product approval after production, overseen by BSTI, is extremely complex and disproportionately more burdensome compared to imported goods. While a CM (Certification Mark) licence for imported products can be obtained within 3–5 working days, it takes a minimum of 38 working days—sometimes extending to 44 to 46 working days—to obtain a CM licence for domestically produced goods. As a result, imported products are marketed easily, while domestic manufacturers face unequal competition.

TDS: How would you assess the current position and performance of local brands?

JU: Under the import policy, only 79 out of the 299 products mandated by BSTI for licensing require a CM licence for import. However, many cosmetic products, including those related to skin protection, fall outside this mandatory list, putting public health at risk.

This disparity extends to customs duties as well. The Tariff Commission has noted that a local manufacturer must pay a 10% supplementary duty on the unit price per piece. This results in a much higher duty burden for local producers, as the dutiable value of domestically produced goods is significantly higher than that of imported ones. Such disparities threaten investment by local manufacturers in an increasingly competitive market environment.

TDS: What are the major challenges or barriers limiting the growth and expansion of the local cosmetics industry?

JU: The export process for cosmetics and personal care products from Bangladesh is extremely complex and time-consuming, making it difficult to compete in international markets. Compared to Bangladesh, countries such as India, China, and South Korea have far more simplified and business-friendly export policies and facilities. As a result, the global expansion of Bangladeshi brands is being hindered.

TDS: What types of policy revisions or government support could help further develop the industry?

JU: In Bangladesh, the absence of mandatory registration and quality control systems for cosmetics has led to the unregulated establishment of substandard and adulterated factories, posing serious health risks. Warehouses are also set up haphazardly, creating further safety concerns and opportunities for storing unregistered products.

Moreover, there is no requirement for international quality standards, such as GMP (Good Manufacturing Practices), allowing substandard products to flood the market. These regulatory gaps significantly hinder Bangladesh's ability to compete internationally.

To be globally competitive, the cosmetics industry urgently needs simplified export processes, stronger policy support, and adoption of frameworks similar to CDSCO and FDA standards. Additionally, there are limited tax exemptions, subsidies, and cash incentives for cosmetic exports, leaving Bangladesh far behind neighbouring countries in government support for industry growth.