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Bangladeshi exporters start feeling pinch of India's new customs rules

Black_cats

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Bangladeshi exporters start feeling pinch of India's new customs rules

SYFUL ISLAM | Published: January 16, 2021 08:45:45 | Updated: January 16, 2021 08:53:29
Bangladeshi exporters start feeling pinch of India's new customs rules


With the new customs rules becoming effective late last year, India has now started seeking different types of documents from the Bangladeshi exporters and authorities in the name of checking the country of origin (CoO) certificates.

To avail duty-free facility in the Indian market under the South Asian Free Trade Area (SAFTA) deal, Bangladeshi exporters need to produce the CoO certificates before the Indian customs authority.

Later, the customs officials recheck the authenticity of the certificates and the content of the origination from Bangladesh's designated authority, particularly Export Promotion Bureau (EPB).

Sources said the Indian High Commission in Dhaka last week forwarded some country origination rules to the EPB for verification of their "genuineness and correctness."

At the same time, the mission added a questionnaire seeking details of the raw materials and the manufacturing process, saying this info "would assist in comprehensive verification of the CoOs."

Besides, it sought a copy of the application and the supporting documents the exporter had submitted to the EPB while obtaining the CoOs.

In case of CoO certificates verification for refined soybean oil from Bangladesh, the Indian mission has asked for clarification of why the cost of packaging materials and indirect/neutral elements have been incorporated into the calculation of value addition.

Officials concerned said the Indian Customs Rules-2020 have made many things complicated and those act as a "weapon" for customs officials to obstruct ways to obtain tariff preference by other countries.

A senior commerce ministry official said before the new customs rules came into force, the India did not ask for such documents and has never forwarded the questionnaire in detail.

In the name of verification, they did not seek the copy of the application and supporting documents submitted by the Bangladeshi exporters to the EPB, he said.

"This is a new kind of non-tariff barrier (NTB) to hinder Bangladesh's export to India," he said.
In November last year, Bangladesh requested India to withdraw its new customs rules, fearing the same will create difficulties for getting tariff preferences.

Bangladesh made the appeal after thorough examination of the new customs rules, which were passed for administration of rules of origin under trade agreements, and will ultimately govern all tariff preferences India offers to all its trade partners.

Research director of the Centre for Policy Dialogue Dr Khondaker Golam Moazzem had earlier told the FE the MoC officials need to verify whether India is following similar checking process in case of other trading partners for providing tariff preference or not.

"As I said earlier, due to such heightened procedural difficulties, Indian traders may feel discouraged to avail tariff preference, which may make Bangladeshi goods less competitive in their market," he said.

Thus, he said, import cost of Indian traders will increase and they will look for alternative sourcing options to save time and money.

"It will cast a negative impact on the overall bilateral trade," Dr Moazzem said.

In this case, the commerce ministries of the two countries can sit together to determine a standard operating procedure to avoid such complications, he added.

syful-islam@outlook.com

 

Bilal9

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For the umpteenth time, impose NTB's on Indian exports to Bangladesh.

Let these Sanghis feel the heat !!!

They only understand brute force. Nuances don't work with Sanghis.

NTB's will carry a clear message - don't f*ck with us, there will be costs to pay.

They will be the losers, bilateral trade is fifteen to one in their favor. We exported barely stuff worth $1 Billion to India last year.

We can substitute Chinese imports which are cheaper and better quality. China has opened up their market to Bangladeshi goods.

Sanghis are implying that shirts exported from Bangladesh are made with Chinese textiles, when Bangladesh-made shirting fabric is way cheaper. So it is just smokes and mirrors and Sanghi lies by corrupt Indian govt. servants propped up by their businesspeople.

Backboneless Bangladesh Govt. has infinite patience it seems. :rolleyes:
 
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For the umpteenth time, impose NTB's on Indian exports to Bangladesh.

Let these Sanghis feel the heat !!!

They only understand brute force. Nuances don't work with Sanghis.

NTB's will carry a clear message - don't f*ck with us, there will be costs to pay.

They will be the losers, bilateral trade is fifteen to one in their favor. We exported barely stuff worth $1 Billion to India last year.

We can substitute Chinese imports which are cheaper and better quality. China has opened up their market to Bangladeshi goods.

Sanghis are implying that shirts exported from Bangladesh are made with Chinese textiles, when Bangladesh-made shirting fabric is way cheaper. So it is just smokes and mirrors and Sanghi lies by corrupt Indian govt. servants propped up by their businesspeople.

Backboneless Bangladesh Govt. has infinite patience it seems. :rolleyes:
Awami league gets cucked by cucks so not surprised
 

SpaceMan18

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Awami league gets cucked by cucks so not surprised

Imagine being a slave of a country that hasn't figured out their own issues :woot:

Bangladesh is truly pathetic , or maybe just the AL.

In America people praise Elon or Bezos , and in China people look up to Jack Ma.

In Bangladesh people are forced to look up to Bangubandu , this alone shows Bangladesh is doomed
 
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Imagine being a slave of a country that hasn't figured out their own issues :woot:

Bangladesh is truly pathetic , or maybe just the AL.

In America people praise Elon or Bezos , and in China people look up to Jack Ma.

In Bangladesh people are forced to look up to Bangubandu , this alone shows Bangladesh is doomed
It’s only the daughter with daddy issues that look upto him 😂😂😂
 

Atlas

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Imagine being a slave of a country that hasn't figured out their own issues :woot:

Bangladesh is truly pathetic , or maybe just the AL.

In America people praise Elon or Bezos , and in China people look up to Jack Ma.

In Bangladesh people are forced to look up to Bangubandu , this alone shows Bangladesh is doomed
Honestly, it's a matter to be worried.

BNP (or others ) was not such influential to forcibly impose any cult of anyone , but BAL successfully established the cult of sheikh Mujibur Rahman .

And if people overlook all achievement of BAL ,it's only because the cult like culture of BAL .

Surely establishment of a cult is a result of insecurity of BAL , but the establishment of such cult is going to make them more vulnerable.

Finally I believe that Bangladesh is actually a deep state ,and as long as authority can find/rise few more political parties ,BAL will meet the same fate of BNP ,if not worse.
 

SpaceMan18

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Honestly, it's a matter to be worried.

BNP (or others ) was not such influential to forcibly impose any cult of anyone , but BAL successfully established the cult of sheikh Mujibur Rahman .

And if people overlook all achievement of BAL ,it's only because the cult like culture of BAL .

Surely establishment of a cult is a result of insecurity of BAL , but the establishment of such cult is going to make them more vulnerable.

Finally I believe that Bangladesh is actually a deep state ,and as long as authority can find/rise few more political parties ,BAL will meet the same fate of BNP ,if not worse.
The old hag is going to die soon anyways , Bangladesh has ONE more chance to select a better leader.

If we are lucky we might get a better leader who cares about Bangladesh , or maybe we won't.

50/50 chance , I swear to God we better grow
 

Arulmozhi Varman

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The question what high commission asking is valid. What kind of value addition (packaging) is made to avail free import clearance. CoO rules are clear. Only stuffs made or grown in BD can avail free duty. Indirect routing of items is illegal.

Instead of following the rules, we can't be a dumping ground of goods which have no origin in BD.
 

Bilal9

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The question what high commission asking is valid. What kind of value addition (packaging) is made to avail free import clearance. CoO rules are clear. Only stuffs made or grown in BD can avail free duty. Indirect routing of items is illegal.

Instead of following the rules, we can't be a dumping ground of goods which have no origin in BD.
Fair enough - we will find all sorts of obscure loopholes to restrict Indian imports as well.

Touché.
 

fallstuff

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Fair enough - we will find all sorts of obscure loopholes to restrict Indian imports as well.

Touché.
Its a waste of time looking for loopholes. If a market is not worth your time, it is better directing the efforts to more worthwhile markets. Let the Indian buy what they want from where they want.
 
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Bilal9

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Its a waste of time looking for loopholes. If a market is not worth your time, it is better directing the efforts to more worthwhile markets. Let the Indian buy what they want from where they want.
The whole world knows Sanghis are not good (equal) trade partners, even their supposed allies the Brits and the US know. Painfully so.
 

fallstuff

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The whole world knows Sanghis are not good (equal) trade partners, even their supposed allies the Brits and the US know. Painfully so.
Indians just can't help it. I think they take life as a zero sum game or black & white. So if they think they are dealing with someone weaker, they will try to squeeze the most out of the supposed weak party. They do not understand mutual beneficial relationship as folks in Bangladesh do. They did that with Sri Lanka and Nepal also.

Indians will not change cause they think it works for them.
 

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