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Exports to India hit hard for non-tariff barriers: Study
Exports to India hit hard for non-tariff barriers: Study
Thursday, 03 November 2011
Author / Source : Jasim Uddin Khan
Dhaka, Nov 2: Despite warm relations with India, Bangladeshi products still face about a dozen non-tariff trade barriers to the Indian markets, which have hampered the expected pace of export growth, according to a study conducted by the Bangladesh High Commission in New Delhi. Harsh testing requirement, complex harmonised code classifications, inadequate infrastructure, and special labelling requirements are among major non-tariff barriers that Indian authorities have imposed, to hinder Bangladeshi exports to that country, stated the study, which was published last month.
The high commission spoke to several businessmen and Indian officials, and came to the conclusion that the imposition of such non-tariff barriers has seriously impacted the potential of Bangladeshi exports to India.
Mahbub Hassan Saleh, Bangladesh deputy high commissioner in New Delhi, after conducting the investigation, said that the government should negotiate with its counterpart, in this regard. The study also noted that Indian authorities impose mandatory standard requirements, additional technical regulations, and difficult banking norms. Apart from that the Indians also slap duties, other than tariff, and restrict the entry Bangladeshi trucks into India.
Exporters complained that each item of food consignment is subjected to certification by port health officers, which take more than a month, and seriously hamper exports of food items to India, Mahbub Hassan wrote in his letter to the foreign ministry.
About exports of soaps, he said all types of soaps are subjected to chemical tests and samples are sent to laboratories that take more than a month to issue clearance.
Despite huge demand for cement, steel products, electrical and electronic goods, and leather products, in North East India, these products need to comply with Indian Bureau of Standards (BIS) mandatory marketing and standard requirements, which also affect exports, the deputy high commissioner noted.
He said that most of the land customs stations on the Indian side have no warehousing facilities, and goods exported from Bangladesh are kept in the open, till customs formalities are over, which, in turn, result in huge damage and inconsistent supply of goods. The number of bank branches in north-eastern India, that are allowed to handle foreign currency transactions and open letters of credit, is very limited. Even these are not authorised to carry out direct transactions with Bangladesh, which is a major impediment for Bangladeshi exports to North Eastern India, he added.
The existing para-tariff and non-tariff barriers, imposed often by Indian authorities on shipment from Bangladesh to India, are major obstacles, hindering growth of Bangladeshs exports to India, Bangladesh Tariff Commission chairman, Mojibur Rahman, told The Independent. He said Bangladeshs current exports to India would increase two- to three-fold, if these barriers are lifted.
FBCCI president AK Azad said the trade-gap between the two countries would further widen in the coming days, unless existing non-tariff barriers are withdrawn.
President of Dhaka Chamber of Commerce Industry (DCCI), Asif Ibrahim, said it seems that the Indian bureaucracy is reluctant to open the countrys market to Bangladeshi products, though it allows many European and other Asian products, at softer terms.
He urged the government to give the issue of non-tariff barriers utmost priority, during discussions in bilateral forums.
The BGMEA president said Bangladesh presently imports nearly 50 per cent of its total raw materials for garments industry, and the volume is growing at the rate of 10 per cent per annum. He observed that Bangladesh could take an initiative to raise its raw materials import from India, in exchange of increasing its exports of garment items there.
Trade deficit between India and Bangladesh doubled to USD 4.05 billion in FY 2010-11, from USD 2.0 billion in FY 2006-07, according to Export Promotion Bureau statistics.
Bangladesh imported Indian goods worth USD 4.57 billion in FY 2010-11, while it exported goods worth USD 512 million to India, during the same period.
In FY 2009-10, trade figures were USD 3202 million and USD 321 million, respectively.
Exports to India hit hard for non-tariff barriers: Study
Thursday, 03 November 2011
Author / Source : Jasim Uddin Khan
Dhaka, Nov 2: Despite warm relations with India, Bangladeshi products still face about a dozen non-tariff trade barriers to the Indian markets, which have hampered the expected pace of export growth, according to a study conducted by the Bangladesh High Commission in New Delhi. Harsh testing requirement, complex harmonised code classifications, inadequate infrastructure, and special labelling requirements are among major non-tariff barriers that Indian authorities have imposed, to hinder Bangladeshi exports to that country, stated the study, which was published last month.
The high commission spoke to several businessmen and Indian officials, and came to the conclusion that the imposition of such non-tariff barriers has seriously impacted the potential of Bangladeshi exports to India.
Mahbub Hassan Saleh, Bangladesh deputy high commissioner in New Delhi, after conducting the investigation, said that the government should negotiate with its counterpart, in this regard. The study also noted that Indian authorities impose mandatory standard requirements, additional technical regulations, and difficult banking norms. Apart from that the Indians also slap duties, other than tariff, and restrict the entry Bangladeshi trucks into India.
Exporters complained that each item of food consignment is subjected to certification by port health officers, which take more than a month, and seriously hamper exports of food items to India, Mahbub Hassan wrote in his letter to the foreign ministry.
About exports of soaps, he said all types of soaps are subjected to chemical tests and samples are sent to laboratories that take more than a month to issue clearance.
Despite huge demand for cement, steel products, electrical and electronic goods, and leather products, in North East India, these products need to comply with Indian Bureau of Standards (BIS) mandatory marketing and standard requirements, which also affect exports, the deputy high commissioner noted.
He said that most of the land customs stations on the Indian side have no warehousing facilities, and goods exported from Bangladesh are kept in the open, till customs formalities are over, which, in turn, result in huge damage and inconsistent supply of goods. The number of bank branches in north-eastern India, that are allowed to handle foreign currency transactions and open letters of credit, is very limited. Even these are not authorised to carry out direct transactions with Bangladesh, which is a major impediment for Bangladeshi exports to North Eastern India, he added.
The existing para-tariff and non-tariff barriers, imposed often by Indian authorities on shipment from Bangladesh to India, are major obstacles, hindering growth of Bangladeshs exports to India, Bangladesh Tariff Commission chairman, Mojibur Rahman, told The Independent. He said Bangladeshs current exports to India would increase two- to three-fold, if these barriers are lifted.
FBCCI president AK Azad said the trade-gap between the two countries would further widen in the coming days, unless existing non-tariff barriers are withdrawn.
President of Dhaka Chamber of Commerce Industry (DCCI), Asif Ibrahim, said it seems that the Indian bureaucracy is reluctant to open the countrys market to Bangladeshi products, though it allows many European and other Asian products, at softer terms.
He urged the government to give the issue of non-tariff barriers utmost priority, during discussions in bilateral forums.
The BGMEA president said Bangladesh presently imports nearly 50 per cent of its total raw materials for garments industry, and the volume is growing at the rate of 10 per cent per annum. He observed that Bangladesh could take an initiative to raise its raw materials import from India, in exchange of increasing its exports of garment items there.
Trade deficit between India and Bangladesh doubled to USD 4.05 billion in FY 2010-11, from USD 2.0 billion in FY 2006-07, according to Export Promotion Bureau statistics.
Bangladesh imported Indian goods worth USD 4.57 billion in FY 2010-11, while it exported goods worth USD 512 million to India, during the same period.
In FY 2009-10, trade figures were USD 3202 million and USD 321 million, respectively.
