Delhi’s new customs law may harm BD’s trade: Indian HC
The Indian High Commissioner to Bangladesh Vikram K Doraiswami visited Dhaka Chamber of Commerce and Industry (DCCI) on Tuesday and held discussion with the chamber president Rizwan Rahman on bilateral issues.
Doraiswami said bilateral trade between Bangladesh and India was USD 6.9 billion in FY 2019-20 where the Bangladesh's export to India
was USD 1.10 billion and India's USD 5.79 billion. India's total FDI Stock to Bangladesh as of September, 2020 was USD 645.54 million.
He conceded that Bangladesh's jute products are facing anti-dumping duties since 2017 ranging between USD 19 and USD 351.72 per ton while exporting to India. Moreover, India has enacted Customs Rules 2020 which may create problems in claiming preferential duty for Bangladeshi goods in the Indian market under SAFTA and APTA.
Cost of transporting goods from Dhaka to Delhi is significantly higher than those from Dhaka to European and US ports, the High Commissioner said while DCCI president Rizwan Rahman asked India to expedite implementation of Indian Line of Credit promised to Bangladesh.
He also urged to review India's new Custom Rules 2020 pertaining to Rules of Origin and mutual recognition of quality certification given by both the countries. He also said private sector needs to be included in the Joint Economic Commission to address non-tariff barriers and trade related disputes and BIMSTEC, BCIM Economic Corridor facility needs to be tapped for mutual interests of two countries private sector.
Rizwan also emphasized on up-gradation of land Port infrastructures of the two countries, transit and connectivity, cross border railway connectivity and implementation of BBIN Motor Vehicle Agreement. Bangladesh can export electronic items, iron, steel and cement to north eastern region of India.
Doraiswami said that Bangladesh can export edible oil to India with at 20 percent value addition on the product. We would like to establish a unique mechanism to allow Bangladesh's BSTI certification especially for food and other products including steel in a reciprocal manner.
Cost of transportation and time between Delhi and Chattogram Port is high, he said and urged the business community of the two countries to work together to convince their governments to upgrade goods transportation facilities.
He also urged for infrastructure development and technological advancement of all the land ports of Bangladesh to expedite faster export, import processes. There are five railway crossings that are connected between the two sides now.
He said railway can be the best cost effective option for exports and imports and expediting river ports need to be improved and river dredging implemented. He said India is interested to invest in SEZs for it offers better facilities.