Dhaka Shops Shut as NEIR Crackdown Triggers Small-Business Backlash

DHAKA: A nationwide day-long shutdown of mobile phone retail shops signaled fierce opposition today to the National Equipment Identity Register (NEIR), a new government initiative set to reshape the country’s multi-billion dollar handset market.

The protest, organized by the Mobile Business Community Bangladesh (MBCB), was a direct response to the government’s plan to launch NEIR enforcement from December 16.

The National Equipment Identity Register (NEIR) is a centralized database system that records and verifies the unique IMEI numbers of mobile handsets. Once fully operational, any device identified as illegal, cloned, or unregistered will be prevented from accessing mobile network services, a move intended to curb telecom fraud and increase state revenue.

However, for small traders who currently rely on the “grey market” for supply—often through devices imported via “luggage baggage” by travelers—the strict enforcement means an immediate end to their business model.

“We want the government to reduce the current tax rate and bring us under their rules and regulations,” said Md Kabir, a vendor at Bashundhara City who has been in the business for a decade.

MBCB leadership contends that the high 58% import duty on officially imported devices makes them uncompetitive compared to the tax breaks enjoyed by local assemblers. This structure, they argue, compels them to source through unofficial channels.

MBCB Acting President Shamim Mollah called for NEIR to be “restructured”, stating the industry wants to pay tax but faces unreasonable barriers, such as complex requirements for small players to obtain direct import certificates from major global brands. They also allege that the policy unduly favors a syndicate of 11 large businesses who already control the distribution chain.

The closure was a dramatic measure to highlight the existential threat NEIR poses to thousands of small and medium enterprises.