Bangladesh’s merchandise export to India continues to face a range of non-tariff barriers (NTBs) despite the latter’s repeated assurance to ease these bottlenecks.
In the latest edition of NTB measure, the Indian Directorate of Revenue Intelligence (DRI) has halted Bangladeshi consignments of edible oil in the West Bengal’s different land customs stations (LCS), creating fresh mistrust among local traders.
These consignments originated from Bangladesh’s gigantic edible oil refiners– Meghna and City Group of Industries, insiders said.
India earlier slapped an anti-dumping duty ranging from $19 to $352 per ton on jute yarn/twine, hessian fabric and jute sacking bags brought from Bangladesh and it led to a drastic fall of jute and jute goods export to India.
Unnerved by the fresh trade barrier, local exporters urged the authorities to take immediate steps to resolve the trade barrier in the course of meaningful negotiation in diplomatic channels.
They earlier claimed that they face various non-tariff barriers such as delays, bureaucratic red-tape, customs harassment and visa problems while trading with India, which increases the business cost and hampers smooth bilateral trade relations.
“Our edible oil shipments have been halted for more than a week at several LCS in West Bengal forcing us to count huge demurrage.
The West Bengal Customs Department came up with the measure following a DRI order,” Mostafa Kamal, Chairman and Managing Director of Meghna Group of Industries, told The New Nation on Friday.
Frustrated by the DRI’s move, Mostafa Kamal said that India earlier imposed anti-dumping duties on Bangladesh’s jute products and thus seriously affected jute industries. Now they imposed fresh barriers on edible oil export when local refiners eyed for Northeast Indian markets taking advantage of duty-free market access facility.
“Edible oil export to India has been made duty-free under SAFTA agreement. So, any restriction while taking the product into the Indian market is a violation SAFTA rule,” he said.
India is the second largest trade partner for Bangladesh after China and the two-way trade between the two countries touched US$ 9.49 billion in the fiscal year 2017-18 with trade balance (US$7.7 billion) is heavily tilted towards India.
Mostafa Kamal said when the situation prevails in bilateral trade; India imposes fresh NTB on a non-traditional Bangladeshi export item that has little exposure in Indian market. Such an initiative will definitely harm Bangladesh-India trade relations.
In a letter on September 25, the DRI has directed Kolkata Commissioner of Customs (Preventive) not to release edible oil consignments originated from Bangladesh, citing Bangladeshi exporters sent them breaching SAFTA rules and it is thereby inviting huge revenue losses for India.
It also asked the Kolkata customs authorities not to allow the Bangladeshi consignments enter into Indian territory prior to issuance of no objection certificate by DRI.
“DRI has raised the SAFTA rules while blocking the consignments. Their objection is irrational and non-informative,” said Mostafa Kamal, claiming, “Local refiners made the shipments in compliance with value addition rules as stated in SAFTA.”
Replying to a question, he said, “We have already informed the matter to Indian embassy through official channel. We’re waiting for their action to release the stalled consignments.”
Indian annual consumption of edible oil is about 22-25 million tons and 60 per cent of the consumption is met from import.
When asked, a senior commerce ministry official said that Dhaka has already communicated with Delhi through diplomatic channel and the issue is expected to resolve soon.
The official also said that Bangladesh and India are maintaining an excellent bilateral relations and efforts are being made to take to a new height.
“Bangladesh has raised the issue of non-tariff barriers in the last week’s commerce ministry level meeting. Delhi assured Dhaka of resolving the existing trade barriers,” he added.
