Decision to review ‘rules of origin’ clause likely to check rising textile imports from Bangladesh

[Black_cats]

Budget 2020: Decision to review ‘rules of origin’ clause likely to check rising textile imports from Bangladesh

Pratim Ranjan Bose Updated on February 03, 2020

www.thehindubusinessline.com/economy/budget/budget-2020-decision-to-review-rules-of-origin-clause-likely-to-check-rising-textile-imports-from-bangladesh/article30727168.ece/amp/

The Union Budget decision to review ‘rules of origin’ of the clause under the Customs Act to check misuse of FTA route and strengthening provisions relating to safeguard duty; may check rising flow of textile (readymade garments) imports from Bangladesh.

India offers Bangladesh duty-free, quota-free import advantage under SAARC FTA or SAFTA, entered in 2011.

Textiles played a crucial role in pushing Bangladeshi exports to India from $672 million in 2016-17 to $1.04 billion during April-November period of 2018-19. During April-November this fiscal, total imports from Bangladesh stood at $781 million (annualized $1.17 billion)

Bangladesh is world’s second-largest exporter of readymade garments (RMG). However, its exports to India got a significant boost following the implementation of GST – which subsumed 12 per cent countervailing duty (CVD) - in July 2017.

Countries like Sri Lanka, Vietnam also enjoyed the benefits of the introduction of GST. But, Bangladesh made the most of it.

During the first eight months of 2019-20, India imported $801 million worth of textile items under HS codes 61 and 62. Of India’s total garments import one-third (34 per cent) came from Bangladesh. The share is as high as 44 per cent in imports under HS-Code 62 (articles of apparel and clothing not knitted or crocheted).

What particularly drew the attention of the Indian textile industry was the absence of the minimum value addition criteria in SAFTA. Confederation of Indian Textile Industry (CITI) was apprehensive that the loophole might be used for diversion of Chinese man-made fibre-based garments through Bangladesh.

With India-Pakistan relations at its lowest ebb, amending SAFTA may not be possible at this juncture, Sanjay Jain Managing Director of TT Ltd felt India might consider imposing safeguard duty as per Budget provisions.

 

[Destranator]

This is why India can never be a friend of Bangladesh. Their fourth class, cheap mindset does not let them accept a slight decrease in the huge trade surplus they have over Bangladesh.

Yet new deluded idiots arrive at this forum and act shocked to find out that Bangladeshis do not trust India.

 

[TopCat]

Bangladesh always maintain at least 30% value addition to get preferential treatment in EU, Canada and China. Besides most of the backward linkage industry already in place in Bangladesh. So, whatever Indians are thinking are nothing but delusional. Where is that idiot @Nilgiri.. I want to hear his insight on this

 

[Bilal9]

I cannot believe what these bhakt idiots are proposing...

Why would Bangladesh source woven fabric from China, when local weaving capacity is sufficient for exports of these apparels to India.

Any kind of duty Bhartis want to impose on our exports to their market, must be matched point-for-point (dollar for dollar) in Indian imports to Bangladesh. Grow some BALL$ Hasina!!

 

[peagle]

Budget 2020: Decision to review ‘rules of origin’ clause likely to check rising textile imports from Bangladesh

Pratim Ranjan Bose Updated on February 03, 2020

www.thehindubusinessline.com/economy/budget/budget-2020-decision-to-review-rules-of-origin-clause-likely-to-check-rising-textile-imports-from-bangladesh/article30727168.ece/amp/

The Union Budget decision to review ‘rules of origin’ of the clause under the Customs Act to check misuse of FTA route and strengthening provisions relating to safeguard duty; may check rising flow of textile (readymade garments) imports from Bangladesh.

India offers Bangladesh duty-free, quota-free import advantage under SAARC FTA or SAFTA, entered in 2011.

Textiles played a crucial role in pushing Bangladeshi exports to India from $672 million in 2016-17 to $1.04 billion during April-November period of 2018-19. During April-November this fiscal, total imports from Bangladesh stood at $781 million (annualized $1.17 billion)

Bangladesh is world’s second-largest exporter of readymade garments (RMG). However, its exports to India got a significant boost following the implementation of GST – which subsumed 12 per cent countervailing duty (CVD) - in July 2017.

Countries like Sri Lanka, Vietnam also enjoyed the benefits of the introduction of GST. But, Bangladesh made the most of it.

During the first eight months of 2019-20, India imported $801 million worth of textile items under HS codes 61 and 62. Of India’s total garments import one-third (34 per cent) came from Bangladesh. The share is as high as 44 per cent in imports under HS-Code 62 (articles of apparel and clothing not knitted or crocheted).

What particularly drew the attention of the Indian textile industry was the absence of the minimum value addition criteria in SAFTA. Confederation of Indian Textile Industry (CITI) was apprehensive that the loophole might be used for diversion of Chinese man-made fibre-based garments through Bangladesh.

With India-Pakistan relations at its lowest ebb, amending SAFTA may not be possible at this juncture, Sanjay Jain Managing Director of TT Ltd felt India might consider imposing safeguard duty as per Budget provisions.

I will admit I do not know too much about India/Bangladesh relations, other than the basics, but everywhere you watch in the region, the only thing India does or tries to do is suppress. oppress or dominate anyone and everyone it can.

This is a shameful attitude if you wish to stop their exports, make it cheaper and better in India, not put up barriers.

 

[UKBengali]

India cannot compete with quality and price of BD exports and so wants to put up unfair barriers.

India is digging it’s own economic grave as BD will import less from India and more from other countries in response- BD has advantage as it has massive trade deficit with India.

 

[Homo Sapiens]

Doing business with cheater bania is not easy. Cheater bania do not care about fairness, honesty, commitment while doing business. We need to gradually disengage business with them. Import from India need to drastically reduce to bare minimum. We need to strive self sufficiency to the items we need to import from them and secure from alternate countries. It is almost a crime on part of us that those bania cheater are enjoying 9 billion dollar trade surplus with us. This need to stop as soon as possible.

 

[Black_cats]

Doing business with cheater bania is not easy. Cheater bania do not care about fairness, honesty, commitment while doing business. We need to gradually disengage business with them. Import from India need to drastically reduce to bare minimum. We need to strive self sufficiency to the items we need to import from them and secure from alternate countries. It is almost a crime on part of us that those bania cheater are enjoying 9 billion dollar trade surplus with us. This need to stop as soon as possible.

It does not count the amount of money that Bangladeshis spend on shopping and for treatment there. In addition to that there are non stop smuggling of Indian clothing, cosmetics and other items through carriers which will not be less than billions of dollar. Plus Indians illegally sending billions to India working here in Bangladesh.

 

[Destranator]

India is taking Bangladesh's imports for granted. This will come back to bite them hard.
Due to increase in income Bangladeshi consumers are increasingly demanding better quality and uninterrupted supply of goods. Even the US is trying to woo BD into buying their agro products. Once Bangladeshi orders get diverted from India they are gonskies forever.
Importers will stick to more reliable, quality sources while India will as usual come and beg to sell their products.

 

[mmr]

Shoulda coulda bla bla bla....hasina wont do anything neither BAL government. Hasina is giving free transit and all out support to indian government. Definitely husband wife relationship is very strong.

India cannot compete with quality and price of BD exports and so wants to put up unfair barriers.

India is digging it’s own economic grave as BD will import less from India and more from other countries in response- BD has advantage as it has massive trade deficit with India.

you were telling me bd export to india will increase to 5 or 6 billion dollar cause of growing middle class in india. good luck!!

I cannot believe what these bhakt idiots are proposing...

Why would Bangladesh source woven fabric from China, when local weaving capacity is sufficient for exports of these apparels to India.

Any kind of duty Bhartis want to impose on our exports to their market, must be matched point-for-point (dollar for dollar) in Indian imports to Bangladesh. Grow some BALL$ Hasina!!

You really think hasina will do anything lol. You are asking too much from the kitchen lady.

 

[UKBengali]

Shoulda coulda bla bla bla....hasina wont do anything neither BAL government. Hasina is giving free transit and all out support to indian government. Definitely husband wife relationship is very strong.


you were telling me bd export to india will increase to 5 or 6 billion dollar cause of growing middle class in india. good luck!!


You really think hasina will do anything lol. You are asking too much from the kitchen lady.

Let us wait and see.
India did not open it's markets to BD for no reason - BD told India it will retaliate.
I think that India will not go ahead on pain of retaliation from BD. They are only thinking about it.
Remember BD buys a lot more from India than the other way around and so India will lose more in trade war.

 

[TopCat]

Doing business with cheater bania is not easy. Cheater bania do not care about fairness, honesty, commitment while doing business. We need to gradually disengage business with them. Import from India need to drastically reduce to bare minimum. We need to strive self sufficiency to the items we need to import from them and secure from alternate countries. It is almost a crime on part of us that those bania cheater are enjoying 9 billion dollar trade surplus with us. This need to stop as soon as possible.

No we need patience. Textile is always a sensitive item for any developing economy as it hurts low paying job directly. As we are moving up into value chain and into more complex items Indian market will be wide open without any objection except from foreign investors there.

 

[Nilgiri]

Bangladesh always maintain at least 30% value addition to get preferential treatment in EU, Canada and China. Besides most of the backward linkage industry already in place in Bangladesh. So, whatever Indians are thinking are nothing but delusional. Where is that idiot @Nilgiri.. I want to hear his insight on this

Why not just take all your complaints to WTO?

The same WTO that shows a few thousand dollars of refrigerator exports when BD domestic media was promising millions and billions ... just like alladin skyscraper project....or semi presentable Dhaka airport (lol at the new videos of the dirt and filth piled up outside yet again).

Reality checks are brutal for low IQ ppl that earn worse than Haitians and thus rely on 3-million-cry propaganda style, 95% seat won style govt inflation laundering stats...too bad.