RMG export to India may not start from Jan
Sunday, 9 December 2007
Naim-Ul-Karim
Bangladesh's export of ready-made garments (RMG) is unlikely to start to India from January next as the authorities concerned of that country is yet to complete necessary formalities in line with a deal singed between the two governments, sources said.
They said India signed the deal with Bangladesh in September this year on import of 8.0 million pieces of RMG in a calendar year offering zero-tariff access facility.
The deal was signed under the purview of the South Asian Free Trade Area (SAFTA) agreement reached among the South Asian Association for Regional Cooperation (SAARC) member- countries.
Fazlul Hoque, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said under the agreement Bangladeshi apparel owners were expected to send first consignment of RMG to India in January next, but this is now quite uncertain, as the authorities concerned of India is yet to complete required formalities including customs notification to facilitate its importers.
On the other hand, he said, some formalities including publication of gazette notification on the deal and finalisation of modalities for RMG export are yet to be completed by the authorities concerned in Bangladesh side.
Echoing similar views, Faisal Samad, vice president of Bangladesh Garments Manufactures and Exporters Association (BGMEA) said: "We are hopeful that all outstanding formalities will be completed soon."
He said a delegation of BGMEA will visit India next month to explore market there.
When asked, an official of the Ministry of Commerce (MoC) said Indian commerce secretary during his recent visit to Dhaka assured Bangladesh of his initiative to complete all formalities by the first week of this month.
"We have not been informed yet from the Indian side whether the deal was approved or not, but we expect that it will be made any day, " a senior official said.
He, however, said the MoC will continue pursuing the authorities concerned of the Indian government.
The official further said the Export Promotion Bureau (EPB) has already held a meeting with all stakeholders concerned including BGMEA and BKMEA to prepare a draft of the modalities on RMG export to India.
"The drafted modalities will specify the share of the BGMEA and the BKMEA in RMG export to India, and role of the EPB will be finalised soon," a meeting source said.
When asked, the official source said the export of 8.0 million pieces of RMG to India will help Bangladesh fetch US$40 million yearly.
He said the deal, signed by Bangladesh Commerce Ministry's Joint Secretary Abdul Wahab Mian and Indian Deputy High Commissioner Mukta D. Tomar on behalf of their respective countries, aimed at reducing trade gap between the two neighbouring country.
Bangladesh's export of ready-made garments (RMG) is unlikely to start to India from January next as the authorities concerned of that country is yet to complete necessary formalities in line with a deal singed between the two governments, sources said.
They said India signed the deal with Bangladesh in September this year on import of 8.0 million pieces of RMG in a calendar year offering zero-tariff access facility.
The deal was signed under the purview of the South Asian Free Trade Area (SAFTA) agreement reached among the South Asian Association for Regional Cooperation (SAARC) member- countries.
Fazlul Hoque, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said under the agreement Bangladeshi apparel owners were expected to send first consignment of RMG to India in January next, but this is now quite uncertain, as the authorities concerned of India is yet to complete required formalities including customs notification to facilitate its importers.
On the other hand, he said, some formalities including publication of gazette notification on the deal and finalisation of modalities for RMG export are yet to be completed by the authorities concerned in Bangladesh side.
Echoing similar views, Faisal Samad, vice president of Bangladesh Garments Manufactures and Exporters Association (BGMEA) said: "We are hopeful that all outstanding formalities will be completed soon."
He said a delegation of BGMEA will visit India next month to explore market there.
When asked, an official of the Ministry of Commerce (MoC) said Indian commerce secretary during his recent visit to Dhaka assured Bangladesh of his initiative to complete all formalities by the first week of this month.
"We have not been informed yet from the Indian side whether the deal was approved or not, but we expect that it will be made any day, " a senior official said.
He, however, said the MoC will continue pursuing the authorities concerned of the Indian government.
The official further said the Export Promotion Bureau (EPB) has already held a meeting with all stakeholders concerned including BGMEA and BKMEA to prepare a draft of the modalities on RMG export to India.
"The drafted modalities will specify the share of the BGMEA and the BKMEA in RMG export to India, and role of the EPB will be finalised soon," a meeting source said.
When asked, the official source said the export of 8.0 million pieces of RMG to India will help Bangladesh fetch US$40 million yearly.
He said the deal, signed by Bangladesh Commerce Ministry's Joint Secretary Abdul Wahab Mian and Indian Deputy High Commissioner Mukta D. Tomar on behalf of their respective countries, aimed at reducing trade gap between the two neighbouring country.