India reluctant to bridge trade gap: Faruk Khan
Bangladeshi exports facing too many obstacles in India
India wants duty waiver on ODC [over- dimensional cargoes] transport
Commerce minister Muhammad Faruk Khan on Thursday said that Delhi's assurance of reducing the trade gap between Bangladesh and India would mean nothing if the larger economy did not fulfill its pledge.(The New Age BD)
Citing Article 32 of the joint-communiqué of the two countries on December, 2009, Faruk pointed out that the decision to withdraw all tariff and non-tariff barriers was made at the summit level, but there was no progress in minimising the trade gap due to the lack of trust between the neighbours.
Faruk Khan, while addressing a seminar titled 'Bangladesh-India trade: a closer look', described India's execution of the joint-communiqué as a strategy of 'one step forward and two steps back'. The seminar was organised by the Metropolitan Chamber of Commerce and Industry in the city.
He said emphatically that India was always reluctant to bridge the trade gap for 'security concerns', but did not explain.
'India must shed its colonial mindset which is evident in the barriers it raises to stop Bangladeshi goods from entering the north-eastern states of India, popularly known as seven sisters,' he told reporters.
Bangladeshi exporters, compared to their Indian counterparts, have been facing more obstacles while sending their products to the Indian market, he added.
Faruk said that the export of Bangladeshi products has turned out to be a quite complex and prolonged process as any authority in India, whether central or state, enjoys the right to examine the products.
However he said that Bangladesh would have a fair chance to export some selected items such as raw jute and jute products to India
He said that Bangladeshi businessmen would have to take advantage of the demand for jute and jute products in India which has decided to use natural fibres for packing all food products.
The prime minister's economic adviser, Mashiur Rahman, said it was not possible for a less developed economy such as Bangladesh to compete with the giant economy of India if the latter decided to continue such discriminatory taxing of the exports of its neighbours.
Presided over by MCCI's president M Anis-ud-Dowla, the seminar was attended by the chairman of the Confederation of Indian Industry North East Council, Dipankar Chatterjee, and the chairman of the parliamentary standing committee on foreign affairs, Abul Hassan Ali, along with others.
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India is pressing Bangladesh to agree to waive duties on transport of over-dimensional cargoes from its western side to the north-eastern states, government officials said.
'India is asking us to waive duties on transport of ODCs,' a senior official at the Prime Minister's Office told New Age.
'An adviser to prime minister Sheikh Hasina', the official said, 'is in favour of waiver of duties on transport of ODCs on the plea that it is a one-time deal between the two countries'.
'Apparently it is a one-time deal to allow India to transport ODCs [over- dimensional cargoes] via Bangladesh. But according to Article 22 of the joint communiqué issued on January 13 during the prime minister's visit to New Delhi, it is a deal for a "longer term transportation of ODCs", which has long-term implications,' another government official said.
Bangladesh agreed, during foreign minister Dipu Moni's visit to New Delhi in September, 2009, to provide India access to Ashuganj port here to facilitate 'transport of Over Dimensional Consignments for the Palatana power project in Tripura'.
During Sheikh Hasina's visit to New Delhi in January this year, the two sides agreed to declare Ashuganj in Bangladesh and Silghat in India ports of call.
In a joint meeting in April, both sides agreed that Bangladesh would collect duties under the Bangladesh customs laws.
Subsequently on May 31, the two sides amended the 'Protocol on Inland Water Transit and Trade' and added Ashuganj and Shilghat as ports of call.
Bangladesh has eventually allowed multi-module transit to India after adding Ashuganj as a new trans-shipment point between the two countries.
As per the new arrangement, India can now carry its goods not only by waterways but also by road and rail transports from one part of its territory to the other via Bangladesh.
The PIWTT amendment allowed India to carry goods to Ashuganj port by ferry and from where they could be taken to the north-eastern India by road transports and railway.
According to the amended PIWTT, the new route would be Kolkata-Holdiya-Raimongal-Mongla-Kaukhali-Barisal-Hizla-Chandpur-Narayangang-Boirab Bazar- Ashuganj. From Ashuganj, goods would be carried by trucks and tractor-trailors or by railway to the Akhaura-Agartala border.
The National Board of Revenue (NBR) has set duties by a statutory regulatory order (SRO) on June 10 for trans-shipment and transit of goods through Bangladesh.
The duties would be Tk 10,000 per TEU container if the cargo is transported by road or rail in such containers and Tk 1,000 per tonne if transported by covered vans or trucks or in bulk by non-container ships and trains.
The NBR circular also says that controlled items like arms and ammunition, alcoholic drinks and narcotics, endangered species of plants and animals, and other commodities with a ban on their import will not be allowed for trans-shipment or transit.
The SRO also said that Bangladesh customs officers must know and would have the authority to check what goods were being trans-shipped or in transit.
A Bangladesh Tariff Commission member said, 'Bangladesh stands to lose a large amount in revenue if duties are waived on the Palatana-bound ODCs as it would set a precedent to allow India to transport both public and private cargoes between their western and eastern regions.'
Citing Article 32 of the joint-communiqué of the two countries on December, 2009, Faruk pointed out that the decision to withdraw all tariff and non-tariff barriers was made at the summit level, but there was no progress in minimising the trade gap due to the lack of trust between the neighbours.
Faruk Khan, while addressing a seminar titled 'Bangladesh-India trade: a closer look', described India's execution of the joint-communiqué as a strategy of 'one step forward and two steps back'. The seminar was organised by the Metropolitan Chamber of Commerce and Industry in the city.
He said emphatically that India was always reluctant to bridge the trade gap for 'security concerns', but did not explain.
'India must shed its colonial mindset which is evident in the barriers it raises to stop Bangladeshi goods from entering the north-eastern states of India, popularly known as seven sisters,' he told reporters.
Bangladeshi exporters, compared to their Indian counterparts, have been facing more obstacles while sending their products to the Indian market, he added.
Faruk said that the export of Bangladeshi products has turned out to be a quite complex and prolonged process as any authority in India, whether central or state, enjoys the right to examine the products.
However he said that Bangladesh would have a fair chance to export some selected items such as raw jute and jute products to India
He said that Bangladeshi businessmen would have to take advantage of the demand for jute and jute products in India which has decided to use natural fibres for packing all food products.
The prime minister's economic adviser, Mashiur Rahman, said it was not possible for a less developed economy such as Bangladesh to compete with the giant economy of India if the latter decided to continue such discriminatory taxing of the exports of its neighbours.
Presided over by MCCI's president M Anis-ud-Dowla, the seminar was attended by the chairman of the Confederation of Indian Industry North East Council, Dipankar Chatterjee, and the chairman of the parliamentary standing committee on foreign affairs, Abul Hassan Ali, along with others.
------------------------------------------
India is pressing Bangladesh to agree to waive duties on transport of over-dimensional cargoes from its western side to the north-eastern states, government officials said.
'India is asking us to waive duties on transport of ODCs,' a senior official at the Prime Minister's Office told New Age.
'An adviser to prime minister Sheikh Hasina', the official said, 'is in favour of waiver of duties on transport of ODCs on the plea that it is a one-time deal between the two countries'.
'Apparently it is a one-time deal to allow India to transport ODCs [over- dimensional cargoes] via Bangladesh. But according to Article 22 of the joint communiqué issued on January 13 during the prime minister's visit to New Delhi, it is a deal for a "longer term transportation of ODCs", which has long-term implications,' another government official said.
Bangladesh agreed, during foreign minister Dipu Moni's visit to New Delhi in September, 2009, to provide India access to Ashuganj port here to facilitate 'transport of Over Dimensional Consignments for the Palatana power project in Tripura'.
During Sheikh Hasina's visit to New Delhi in January this year, the two sides agreed to declare Ashuganj in Bangladesh and Silghat in India ports of call.
In a joint meeting in April, both sides agreed that Bangladesh would collect duties under the Bangladesh customs laws.
Subsequently on May 31, the two sides amended the 'Protocol on Inland Water Transit and Trade' and added Ashuganj and Shilghat as ports of call.
Bangladesh has eventually allowed multi-module transit to India after adding Ashuganj as a new trans-shipment point between the two countries.
As per the new arrangement, India can now carry its goods not only by waterways but also by road and rail transports from one part of its territory to the other via Bangladesh.
The PIWTT amendment allowed India to carry goods to Ashuganj port by ferry and from where they could be taken to the north-eastern India by road transports and railway.
According to the amended PIWTT, the new route would be Kolkata-Holdiya-Raimongal-Mongla-Kaukhali-Barisal-Hizla-Chandpur-Narayangang-Boirab Bazar- Ashuganj. From Ashuganj, goods would be carried by trucks and tractor-trailors or by railway to the Akhaura-Agartala border.
The National Board of Revenue (NBR) has set duties by a statutory regulatory order (SRO) on June 10 for trans-shipment and transit of goods through Bangladesh.
The duties would be Tk 10,000 per TEU container if the cargo is transported by road or rail in such containers and Tk 1,000 per tonne if transported by covered vans or trucks or in bulk by non-container ships and trains.
The NBR circular also says that controlled items like arms and ammunition, alcoholic drinks and narcotics, endangered species of plants and animals, and other commodities with a ban on their import will not be allowed for trans-shipment or transit.
The SRO also said that Bangladesh customs officers must know and would have the authority to check what goods were being trans-shipped or in transit.
A Bangladesh Tariff Commission member said, 'Bangladesh stands to lose a large amount in revenue if duties are waived on the Palatana-bound ODCs as it would set a precedent to allow India to transport both public and private cargoes between their western and eastern regions.'
http://www.newagebd.com/2010/aug/06/front.html#2
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