BTC against lifting fumigation rules to avert harmful impact on local crops

Bangladesh Tariff Commission (BTC) has recommended the government not to stop applying fumigation rules at the port of entry while importing US cotton to avert possible harmful impact of an infamous insect 'boll weevil' on the local crops.
It also suggested the commerce ministry to consider seeking fumigation certification from the appropriate authorities in case of cotton export by the US cotton traders, officials said.
The BTC put forward the recommendation recently as per a decision taken at an inter-ministerial meeting at the Ministry of Commerce (MoC) early this month.
The meeting was to discuss a request by the US authorities to withdraw the fumigation requirement of American cotton while importing into Bangladesh.
American cotton industry leaders requested lifting the fumigation rules on the import of the US commodity in Bangladesh. They argued that the fumigation not only imposes an additional cost burden on the importers and spinners of Bangladesh but also results in increased lead time.
When contacted, Md Hafizur Rahman, director (joint secretary) of the WTO Cell at the MoC, said: "The Department of Agricultural Extension (DEA) also wants to continue with the fumigation rules on the import of cotton from US."
The BTC in a study pointed out that the fumigation requirement of American cotton is applied because of harmful effect of 'boll weevil' pest on other crops.
"It is nearly impossible to withdraw this requirement if there is no declaration from the appropriate authority of the United States certifying that boll weevil has been eradicated from the territories of the United States along with fumigation report from appropriate authority of the United States," the study viewed.
Raymond Faus, president of American Cotton Shippers Association (ACSA), in an interview with the Financial Express last year termed unfair the fumigation restrictions on the import of US cotton in Bangladesh.
"Long transit time coupled with the congestion at the Chittagong port increases the cost while also creating much more exposure to price volatility," said Mr Faus, who is also the CEO of US cotton giant Omnicotton.
According to available information, many countries around the world impose fumigation requirement of cotton at port of entry. However, almost all such countries require such fumigation at port of entry for cotton sourced from any country.
Pakistan seems to have the same fumigation requirement of American cotton.
The Office of the Unites States Trade Representative regularly publishes National Trade Barriers Estimate Report, which elaborates the trade barriers faced by the US in different countries. National Trade Barriers 2018 covers 64 countries including Bangladesh and Pakistan.
The report maintains that Bangladesh is the only country, which imposes fumigation requirement of American cotton at port of entry, although related rules of Pakistan shows that it also maintains same requirement for cotton. Seemingly, since Bangladesh is one of the biggest importers of cotton American cotton exporters are focusing on Bangladesh market.
Bangladesh, one of the largest importers of cotton in the world, imports cotton from different countries. According to Bangladesh Textile Mills Association (BTMA), Bangladesh imported 8.28 million bales of cotton in 2018.
In dollar terms, the imports are worth US$ 3.0 billion. On the other hand, Bangladesh produced 1.65 lakh bales of cotton in last fiscal year (FY), which is less than 02 per cent of the annual demand of 10 million bales, according BTC.
BTC Statistics show that Bangladesh sources cotton mainly from Africa, India, CIS countries and the United States.
As per Rule 3(7) of Plant quarantine Rules, 2018, any cotton imported into Bangladesh must carry the SPS certificate from the competent authorities of the exporting country.
However, cotton imported from America region requires additional fumigation at port of entry after arrival as per rule 14.
It is reported that fumigation costs around 1 to 2 cent per bale of cotton, which price of cotton is around 60 cents. Besides, total process of fumigation and clearance require 05 days to complete, the report said.
Bangladesh imports cotton from West and Eastern Africa 37.06 per cent, India 26.12 per cent, CIS 11.35 per cent, US 11.14 per cent, Australia 4.65 per cent and rest of the 9.65 per cent from the other countries, according to the BTMA.
Imported cotton from US has to go through fumigation in Bangladesh ports According to the country's existing law, said Dr. Mostafa Abid Khan, member (Trade Remedies) of BTC.

[email protected]