India cuts duty on some imports from LDCs
M Azizur Rahman | Thursday, 5 June 2008
India has decided to cut duty on imports from the least developed countries (LDCs), including Bangladesh, for products like cosmetics and toiletries, textile and clothing, furniture and crockery under its newly announced duty-free preference scheme (DFPS), officials said.
"We have recently received a letter from the Indian authority regarding its decision to cut import duty on different items from 49 LDCs, including Bangladesh, under its DFPS scheme," commerce secretary Mr Feroz Ahmed told the FE Wednesday.
Welcoming the move from the Indian government he said the country's benefit out of it will depend on how much the businessmen can utilise the opportunity.
"This is a positive sign," said the commerce secretary.
The Indian DFPS scheme for the 49 LDCs was first declared by Prime Minister Dr Manmohan Singh when he was inaugurating the India-Africa Summit in New Delhi in April last.
"This move will ensure development of international trade at remarkable pace," said the Indian Prime Minister.
Under the DFPS scheme India has offered duty cuts between 10 per cent and 100 per cent from the current import duty structures for 468 products from the LDCs
Commerce ministry officials said the Indian commerce ministry has requested Bangladesh to sign a letter of intent to avail the latest opportunity and hold discussions bilaterally for its smooth implementation.
Though India has decided on the slash on import duty of 468 products for the 49 LDCs Bangladesh might not benefit much excepting for the products like cosmetics and toiletries, textile and clothing, furniture and crockery and some fish items, the commerce ministry official said.
Products like cashew nuts, cotton, copper ores, aluminum ores, cocoa, cane sugar, non-industrial diamonds and fish fillets would also get preferential treatment, he added.
"We, however, have sought opinion from the apex trade body - the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) - Export Promotion Bureau (EPB) and Tariff Commission regarding the possible impact of the Indian duty cuts," a senior commerce ministry official said.
The FBCCI, EPB and tariff commission have been asked to give their opinions by this week to help implementation of the Indian tariff cut proposals, he added.
The commerce ministry will sign a letter of intent to avail this opportunity upon receipt of opinions from the trade related agencies and businessmen, the commerce ministry official said.
Sources at the commerce ministry said India is the second largest trading partner of Bangladesh after China in terms of both import and export.
Currently, Bangladesh imports Indian products worth about US$2.0 billion a year while exports less than $300 million to India.
"We have recently received a letter from the Indian authority regarding its decision to cut import duty on different items from 49 LDCs, including Bangladesh, under its DFPS scheme," commerce secretary Mr Feroz Ahmed told the FE Wednesday.
Welcoming the move from the Indian government he said the country's benefit out of it will depend on how much the businessmen can utilise the opportunity.
"This is a positive sign," said the commerce secretary.
The Indian DFPS scheme for the 49 LDCs was first declared by Prime Minister Dr Manmohan Singh when he was inaugurating the India-Africa Summit in New Delhi in April last.
"This move will ensure development of international trade at remarkable pace," said the Indian Prime Minister.
Under the DFPS scheme India has offered duty cuts between 10 per cent and 100 per cent from the current import duty structures for 468 products from the LDCs
Commerce ministry officials said the Indian commerce ministry has requested Bangladesh to sign a letter of intent to avail the latest opportunity and hold discussions bilaterally for its smooth implementation.
Though India has decided on the slash on import duty of 468 products for the 49 LDCs Bangladesh might not benefit much excepting for the products like cosmetics and toiletries, textile and clothing, furniture and crockery and some fish items, the commerce ministry official said.
Products like cashew nuts, cotton, copper ores, aluminum ores, cocoa, cane sugar, non-industrial diamonds and fish fillets would also get preferential treatment, he added.
"We, however, have sought opinion from the apex trade body - the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) - Export Promotion Bureau (EPB) and Tariff Commission regarding the possible impact of the Indian duty cuts," a senior commerce ministry official said.
The FBCCI, EPB and tariff commission have been asked to give their opinions by this week to help implementation of the Indian tariff cut proposals, he added.
The commerce ministry will sign a letter of intent to avail this opportunity upon receipt of opinions from the trade related agencies and businessmen, the commerce ministry official said.
Sources at the commerce ministry said India is the second largest trading partner of Bangladesh after China in terms of both import and export.
Currently, Bangladesh imports Indian products worth about US$2.0 billion a year while exports less than $300 million to India.