Core group formed to review Indian barriers to Bangladesh goods

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Nazmul Ahsan
The government has recently formed a core group comprising representatives from ministries of foreign affairs, commerce, communications and national board of revenue to recommend the ways and means to eliminate the critical barriers to trade with the neighbouring India
An inter-ministerial meeting attended by Commerce Minister Faruk Khan and representatives from different ministries such as commerce, finance and communications discussed in details the non-tariff and para-tariff barriers often erected by India to restrict import of Bangladesh goods. It also decided to form a core group that would submit a report to the ministry of foreign affairs after a thorough review of the barriers. Foreign Minister Dipu Moni chaired the meeting.
The commerce ministry placed at the meeting a list of non-tariff and para tariff barriers imposed by Indian authorities in recent times.
Besides, the commerce ministry appraised the meeting of the Indian proposal to open Sabroom(Tripura)-Ramgarh(Bangladesh) route for bilateral trade and construct a bridge over river Feni to facilitate trade between the two countries.
The meeting observed that efforts made by successive governments to persuade New Delhi for lifting numerous non-tariff barriers had failed, according to sources.
According to the list of barriers put up by India to discourage import of Bangladesh goods, Indian customs authority asks for laboratory test for each and every consignment of food products, cosmetics, and leather and textile products. Exporters concerned are subjected to pay Rs. 3000 as laboratory test fee for each type of food items. The laboratory report normally takes 15-20 days as the samples are sent to the laboratories located far from the land customs stations and sent through normal mail, which delays the clearance of consignment.
Furthermore, the Indian authorities have recently imposed 18 per cent tax and value added tax as central value added tax, Special Central Vat and Education Tax on apparels of Bangladesh origin defying the SAFTA agreement.
Under the SAFTA list of sensitive goods, India is supposed to provide duty-free access to 8.0 million pieces of apparels originating from Bangladesh from 2008.
Original SAPTA certificate issued by the Export Promotion Bureau is not accepted by Indian customs at Agartala. Indian customs people ask both the exporters and importers to submit details of rules of origin calculation along with the documents, ignoring the set criteria of the regional agreement, said the list.
Sanitary import permit has been made mandatory for Indian importers of processed food, toiletries and cosmetics from Bangladesh.
Indian government has recently imposed 18 per cent extra duty on cement imports from Bangladesh, affecting cement exports to India's North Eastern region.
Packaging requirement has been specified for food items with maximum retail price, standard unit, month and year of packaging inscribed on the packets. All pre-packaged commodities like processed foods, cosmetics, toiletries, spices imported in India requires generic and common name of the commodity packed, net quantity in terms of standard unit of weights and measures.
Non-tariff barrier like inordinate delay in clearance of Bangladeshi goods from customs for various reasons, including non-availability of their designated officers and certificates from departments concerned of the Indian government causes problems for Bangladeshi exporters.
Besides, inadequate physical facilities like warehousing, transshipment yard, parking yard and connecting roads at land customs stations of India also hinder exports from Bangladesh, the list elaborated.
Furthermore, the brief prepared by the commerce ministry said the Indian authorities do not allow trucks of Nepal to go into Bangladesh territory through Banglabandh land customs that causes extra expenses for Bangladeshi importers and exporters.
At Banglabandha point at Phulbari, Nepalese trucks are allowed to come up to zero point and unloading/loading takes place there. The Bangladesh customs and ministry of commerce have long been requesting the Indian authorities to allow Nepalese trucks to come 200 metres inside Bangladesh from the zero point.
The two-way trade balance was $968.71 million in favour of India in the 2001-02 fiscal year, when Bangladesh exported goods worth $50.19 million to India against her imports of $1.01 billion. The gap increased to $3.03 billion in 2007-08.
Asked, Commerce Secretary Firoz Ahmed said they have been communicating with the Indian authorities to lift non-tariff and para-tariff barriers to exports from Bangladeshi to India.
"Our export in Indian markets has long been hampered due to all these barriers", Firoz told FE.
"Things are likely to improve soon", he said
Another high official in the ministry said they don't find any rational behind opening the land customs station at Sabroom(Tripura)-Ramgarh (Bangladesh) route.