Indian innovative measures hinder Bangladesh exports No single item from Bangladesh can enjoy smooth
entry into Indian market for long time as the close door neighbour apply innovative means of hindering steady flow of exports, reports UNB.
`Ruchi’ chips and betel nuts are the latest victims, as the Ministry of Commerce in Dhaka identified recently, after cement and lead acid batteries that have to fight hard with the Indian authorities to get a fresh start.
“Exporters of Bangladesh and importers of India find it difficult to establish long-term business relationship due to the innovative ways adopted by the Indian authorities,” a senior Commerce Ministry
official told UNB.
“They cannot develop the relationship because of the hassles and uncertainties arising out of non-tariff and para-tariff barriers imposed at the moment for a product to get market in India,” he said.
The observation, although a bitter one, came two weeks before Bangladesh was preparing for the fourth meeting of the Bangladesh-India Joint Working Group on Trade scheduled for July 5-6 in Agartala, India.
Another official said India has allowed duty-free access for some items from Bangladesh on reciprocal basis under different bilateral and regional arrangements, but it would hardly yield any benefit until and unless India refrain from imposing the unwanted barriers.
According to the Ministry of Commerce, an export consignment of `Ruchi’ chips has been held up at the Petrapole Land Customs Station (LCS) since March 1, 2006 for a technical controversy following laboratory test by Indian Central Food Laboratory in Kolkata.
The laboratory mentioned that
sodium bicarbonate contained in the chips was not permissible for import in India. As per the Prevention of Food Adulteration (PFA) Rules of India, sodium hydrogen carbonate is allowed as food ingredient.
The sodium bicarbonate detected in `Ruchi’ chips was, in fact, the other name of sodium hydrogen carbonate and permissible as per the Indian law.
“Despite this scientific fact, the Indian authorities refused to release the consignment of `Ruchi’ chips,” said an official of the Commerce Ministry.
In the case of betel nuts, Bangladesh has been exporting the item to India since 2001, enjoying 60 percent duty concession under SAPTA.
But the Indian Customs has recently refused to provide tariff concession on the ground that the value addition mentioned in the certificate of origin issued by Export Promotion Bureau of Bangladesh was exaggerated.
Indian Customs has increased the assessment value of betel nuts from US$ 320 to US$ 500 per metric ton.
The Commerce Ministry official said non-tariff and para-tariff barriers hinder smooth and steady flow of exports to India. “These are applied in such a way that no single item of Bangladesh can enjoy smooth entry into India for a long time.”