FE Today Logo

New move to ask India to remove non-tariff, para-tariff barriers

July 25, 2007 00:00:00


Doulot Akter Mala
The government has taken a fresh move, seeking removal of non-tariff and para-tariff barriers on export of Bangladeshi products to India.
A Bangladesh team left for New Delhi Tuesday to negotiate with Indian officials on elimination of such impediments, which are standing on the way of increased export to the country's big neighbour.
The seven-member team, headed by a Member of the Customs Department, includes representatives of the Ministry of Commerce, the Ministry of Foreign Affairs and the Bangladesh Rifles (BDR).
The delegation members will sit for a two-day meeting with their Indian counterparts in New Delhi.
At the meeting, Bangladesh will propose creation of a proper warehousing facility in Indian land customs station. The absence of such a facility is considered as a major non-tariff barrier for Bangladeshi exports, sources concerned said.
Such warehousing problem has been hindering the smooth flow of Bangladesh's export to India, they added.
Bangladesh exporters also face problems due to Indian non-acceptance of SAARC Preferential Trading Agreement (SAPTA) certificates issued by Export Promotion Bureau (EPB).
Bangladeshi exporters are entitled to enjoy tariff concessions under the SAPTA on submission of the certificate titled 'Country of Origin' issued by EPB.
The assistant commissioner of the Indian customs house is empowered to accept the SAPTA certificates after their verification, sources said.
The Indian customs authorities, they alleged, create lots of confusion while checking the value addition of the products and authenticity of the certificates. The process causes delay in clearance to the woes of both exporters and importers.
Such unusual delays caused huge financial loses to the importers, they added.
"The country will propose for empowering Customs superintendent, who is available at the port, rather than assistant commissioner of customs, to accept the SAPTA certificate of origin," an official source said.
The team will propose withdrawal of additional duty of 4.0 per cent as special countervailing duty (CVD)) on zero-rated items exported from Bangladesh, which is affecting the spirit of the SAPTA and the Asia-Pacific Trade Agreement (APTA).
The high-powered group will propose India to allow import of the products that enjoy general exemption or concessionary exemption under the SAPTA and the APTA.
Sources said the India has imposed the CVD in general, which might hurt those products enjoying preferential status.
The team will also discuss the issues relating to development of the land customs stations, and free and steady flow of information between the customs authorities of Bangladesh and India.
They will also propose imposition of restrictions on the frequent and unnecessary movement of customs clearing agents across the border.

Share if you like