Apex trade body rediscovers barriers to export to India

The apex trade body has prepared a list of bottlenecks that are restricting the export of various products from Bangladesh to India, seeking a remedy from an upcoming joint meeting of customs in Delhi.
Inadequate border infrastructure, local duties in the neighbouring country, poor logistics in land ports, cumbersome customs requirements, manual clearance system, lack of testing facilities nearby any land port on the other side have been marked as major hurdles.
A report, prepared by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), has been placed with the customs department of the National Board of Revenue (NBR) ahead of the meeting of the joint group of customs.
The customs officials of Bangladesh and India will hold the trade-related talks in the Indian capital, New Delhi, on February 5-6.
Farid Uddin, customs policy member of the NBR, will head the team of Bangladesh.  
Some longstanding issues relating to removal of non-tariff barriers and improvement of infrastructure at land customs stations would come up at the meet for discussion.
A gaping trade imbalance facing Bangladesh is a major concern for many years now. In fiscal year 2013-14, Bangladesh imported goods worth $6.0 billion in official channel while its exports fetched only $456 million from India.  
The FBCCI prepared a brief report on problems and roadblocks facing Bangladeshi traders for the meeting after field-visit to different land customs stations (LCS).
"Although India has granted Bangladesh duty-free access for all items but tobacco and liquor, there exist reportedly several types of local duties in India. Bangladeshi exporters have to pay customs surcharges and other duties, including basic duty of customs, additional duty, countervailing duty and so on," the FBCCI report reads.
On infrastructure issues, the FBCCI stressed the need for building dedicated bypass roads and multi-lanes to reduce congestion at LCS, expansion of areas at LCS with appropriate parking and warehousing facilities.
It seeks well-equipped LCS with scanners, weight machines and lift machines. Automation and proper traffic- control system in LCS also suggested.
Non-tariff barriers have also been pointed out as major hurdles. Indian customs does not accept test certificate from Bangladeshi laboratories. Specially, export of food items from Bangladesh suffers as the Indian authorities send the samples to their labs far away from the customs stations.
Although the Indian government has offered an advantage for Bangladeshi exporters with 5.0 to 20 per cent random sampling of certain categories of food or food items, Bangladeshi traders cannot avail the facility uninterrupted as it depends on satisfaction of the Indian customs.  
"Processed food exporters find it difficult to access the northeastern states of India as the region's customs authorities have set a rule, from June 1, 2010, asking the traders to store the imported products in bonded warehouses until the completion of laboratory tests on shipments," the FBCCI report said.
Expecting national treatment on exports from Bangladesh to India, the apex body said Indian customs frequently changed their respective positions about where to print the expiry date -- on the bottom or on the label of bottle -- on export of fruit juice.
The FBCCI proposes that India allow a corridor through Banglabandha, Phulbari and Kakarvita to reach markets of Nepal and Bhutan.
It also has mentioned cumbersome export procedures of documentation, lack of banking services in border areas, non-availability of mobile-phone networks, visa and travel restrictions and lack of improved road and railway communications.
The apex body also seeks regular coordination meeting among the Bangladesh customs, land-port authority, BGB, Clearing and Forwarding agents, exporters, importers and other stakeholders.
It has sought reduction of excessive inspection with an excuse of security at the border ports through joint inspection by BGB and customs.
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