India has slightly softened conditions recently imposed on import of jute and jute goods from Bangladesh as the latter has repeatedly expressed its concern over the issue, officials have said.
A new notice has exempted jute importers from collecting no objection certificate (NoC) from the office of the Jute Commissioner against each consignment of goods, they added.
The fresh notification has also omitted the paragraph of a previous notification which had stated that imported raw jute and jute yarn will not be used in manufacturing of sacks which are used for packaging of commodities in the 'reserved sector'.
Dhaka was claiming that its export of jute and jute goods to India was being seriously hampered because of the new conditions set by New Delhi through a notification on September 10 last.
The Indian High Commission in Dhaka informed the ministry of commerce (MoC) last week about the latest development.
"This order supersedes all previous orders on the subject and takes away the need to obtain NoC for every export consignment," first secretary of the high commission Bijay Selvraj wrote in a letter.
The notification of September 10 said the importers would have to apply for NoC in a given format to the office of the Jute Commissioner for every consignment.
It said while applying for NoC the importer has to provide the details of the buyer to whom he is intending to sell the imported jute and jute products. If the importer is not the end user, all the stakeholders starting from the buyer until the final user have to register their units with this office.
However, the new notification did not exempt importers, traders, and end users from getting registered with the jute commissioner's office. "It may be ensured that the entire chain from the import to the level before the end users shall be registered with the jute commissioner to facilitate tracking of such materials," it said.
Both the importers and traders have been asked to submit a monthly report on imported goods and trading of goods within four working days of the end of every month. They will have to mandatorily submit reports even though no import or trade takes place.
A senior MoC official said the ministry was examining the fresh notification and will consult with the jute and jute goods exporters about the new conditions.
"We are scrutinising the new notification before taking any further step," he told the FE.
Earlier, after the previous notification was issued, the MoC officials termed it a new non-tariff barrier (NTB) and inconsistent with the rules of the World Trade Organisation (WTO). They also requested Indian officials concerned to revoke the regulation as Bangladesh's jute exports are being hampered seriously because of the new rules.
After issuance of notification on September 10 last the Indian Jute Commissioner Subrata Gupta informed a diplomat of the Bangladesh Deputy High Commission in Kolkata that they were obliged to issue the new circular in the face of violation of Jute Packaging Materials Act 1987.
Under the Act, all jute bags, which are used as packaging materials of food grains, have to be made of 100 per cent local jute. However, in many cases, the order was not followed by the jute millers.
When contacted, chairman of Bangladesh Jute Exporters' Association Mohammad Shahjahan hailed the decision of exempting the importers from collecting mandatory NoC for each consignment.
He said it will give the importers a little bit relief from hassles in facilitating jute and jute goods export from Bangladesh.
Mr Shahjahan has requested the government to take necessary steps so that there remain no obstacles to export of the items.
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