Bangladesh will raise the issues relating to non-tariff barriers (NTBs) and para-tariff barriers (PTBs) again during the ensuing visit of Indian Prime Minister Narendra Modi, officials have said.
"The response from Indian officials on removal of NTBs and PTBs is not satisfactory. We will raise the issue again during Mr Modi's visit," a senior commerce ministry official told the FE.
He said India has handed over its response to Bangladesh's demand for removal of the barriers in March, some six months after the joint consultative commission (JCC) meeting held in New Delhi last year.
"But the response was not positive, especially about countervailing duty (CVD) on apparel and mandatory marking on jute bags," he said.
The official said a recent inter-ministerial meeting, held at the ministry of foreign affairs, has decided that the issue of NTBs and PTBs will be included in the joint statement of the prime ministers of Bangladesh and India.
Another official said responding to Bangladesh's plea to remove the barriers, India did not recognise that the obstacles are hindering Dhaka's export to Delhi.
He said Bangladesh had requested India to withdraw the provision of mandatory marking on jute bags before exporting those to India. According to a notification of Jute Commissioner of India (JCI) every jute bag manufactured and imported into India must have a marking mentioning the name of the manufacturing company.
India said the mandatory marking on the jute bags is not a NTB and the measure has no impact on export of the item. It also said Bangladesh's jute sector enjoys several benefits from the government that make it competitive and that is why it would not remove the provision.
Relating to the demand for removal of countervailing duty (CVD) on importing readymade garment (RMG), India mentioned that the amount Bangladesh is paying as CVD is insignificant. The duty in case of cotton garment is 1.85 per cent and 3.71 per cent in case of garments made of other materials.
"These values are insignificant as compared to the competitive advantage Bangladesh enjoys vis-à-vis RMG," it added.
Bangladesh had demanded allowing import of motorcycles by India through all ports and land customs stations (LCS). However, India has designated two more LCS -- Benapole and Agartala-- in addition to the existing 12 ports and land ports. It did not agree to withdraw port restriction as a whole for motorcycle import by India.
Officials said non-recognition of testing certificates, issued by Bangladesh Standards and Testing Institution (BSTI), and decongesting Petrapole land port will also be put forward for solution during the meeting with Mr Modi and his delegation members.
They said Indian National Accreditation Board for Testing and Calibration Laboratories (NABL) has accredited testing certificates of BSTI on some products, but the Bangladeshi organisation is not recognised by the Indian food authority.
Bangladesh's export to India stood at $456.2 million against the import of $6,035 million in fiscal year 2013-14, resulting in a deficit worth $5,578.8 million.
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