Bangladesh has not received any positive response from India regarding its demand on removal of five non-tariff barriers (NTBs) and para-tariff barriers (NTBs), officials said.
The Indian High Commission has recently forwarded a letter to foreign ministry responding to Dhaka's demand to remove the barriers.
Bangladesh at the joint consultative commission (JCC) meeting in New Delhi last year raised the issue, seeking solutions.
Officials said Bangladesh in the meeting requested India to withdraw the provision of mandatory marking in jute bags before exporting to India. According to a notification of Jute Commissioner of India every jute bag manufactured and imported to India must have a marking mentioning the name of manufacturing company.
Bangladeshi exporters think the additional marking on the jute bags causes extra burden to them and also increases cost.
Responding to the request India said the mandatory marking on the jute bags is not a NTB since it applies for all. It also said the measure has no impact on export of the item, as statistics show substantial increase in Bangladeshi jute bag export to India after making the marking mandatory.
It suggested that instead of stitch labels Bangladeshi manufacturers can opt for printing on every bag to reduce the cost.
India said Bangladesh's jute sector enjoys several benefits from the government that make it competitive.
"Cash subsidy at the rate of 10 per cent on jute goods helps Bangladeshi exporters to adopt price discount and retain its position as pre-dominant exporter in the world market. Whereas the government of India does not provide any export subsidy to local exporters of jute goods," it added.
Regarding the demand of removing countervailing duty (CVD) on importing ready-made garment (RMG) in India the country mentioned that the budget of fiscal year 2013-14 allowed Indian manufacturers to pay duty on the manufactured garment by availing Cenvat credit.
Following the decision the manufacturers contribute to the exchequer either by way of duty on finished garments or by way of input duties. Thus, to maintain a level-playing field CVD is levied on imported goods.
It also said the excise duty on RMG has not been withdrawn for local manufacturers in India as raised by Bangladesh, as they are paying excise duty either on inputs or finalised garments.
The reply mentioned the amount that 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.
Replying on port restriction on export of motorbike India said two more land customs stations (LCs) Benapole and Agartala are now included in the list for importing new motorbikes from Bangladesh in addition to the existing 12 ports. Bangladesh demanded allowing import of motorbikes to India through all ports and LCs.
Regarding non-recognition of testing certificates, issued by Bangladesh Standards and Testing Institution (BSTI), the reply said the Indian authority concerned is examining a draft of memorandum of understanding for collaboration between BSTI and Bureau of Indian Standards (BSI).
On decongesting Petrapole land-port it said the land-port authority of India is developing an integrated check-post in Petrapole, which will help quickening loading and unloading of goods in the port.
When contacted, director of Bangladesh Foreign Trade Institute (BFTI) Dr Mostafa Abid Khan told the FE on Sunday export of Bangladesh's agricultural products to India is facing significant non-tariff barriers that need to be removed.
He said the Indian food authority should recognise the BSTI-issued certificates for some products, which were accredited by Indian National Accreditation Board for Testing and Calibration Laboratories (NABL).
Bangladesh's export to India stood at $456.2 million against the import of $6,035 million in fiscal year 2013-14, resulting a deficit worth $5,578.8 million.
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