Exports to India hit 4yr low, China boom

[Contrarian]

That is neither a logic nor a civilized trade practice. This is sheer indian chest thumping and admission of trade deception that questions the core of indian credibility. US example is irrelevant as it is about dumping, whereas we are talking about non tariff barrier and non payment india use as tool to prevent export from smaller countries. Thanks for coming around admitting india not to be trusted with trade and agreement.

'WTO wants China to cut non-tariff barriers' - The Nation
This is how things work jamati.

 

[idune]

'WTO wants China to cut non-tariff barriers' - The Nation
This is how things work jamati.

That is neither a logic nor a civilized trade practice. This is sheer indian chest thumping and admission of trade deception that questions the core of indian credibility. Your logic is like since people in delhi get away with raping so you want to do the same. Who can beat such fundamentalist hindu mentality. Thanks for coming around admitting india not to be trusted with trade and agreement. That is the reality hindu fundamentalist.

 

[Contrarian]

That is neither a logic nor a civilized trade practice. This is sheer indian chest thumping and admission of trade deception that questions the core of indian credibility. Your logic is like since people in delhi get away with raping so you want to do the same. Who can beat such fundamentalist hindu mentality. Thanks for coming around admitting india not to be trusted with trade and agreement. That is the reality hindu fundamentalist.

razakar, I never expect you to understand logic and economics. But I atleast thought you understood about religion.

Look at those for whom you bend, scrape and grovel jamaati..
B’desh food products face non-tariff barriers in Saudi Arabia
B’desh food products face non-tariff barriers in Saudi Arabia

Trade Agreements in Saudi Arabia: Trade Barriers in Saudi Arabia

Damn, is this terrorist muslim mentality. It shows muslims can never be trusted with trade and agreement. thank god the world can see what muslims really are.

 

[idune]

Watch how india signed trade agreement with SriLanka and then when SriLankan product seen demand in indian market, indians did non tariff barrier to prevent SriLankan export. Time and again indian proved - india has ZERO credibility.
-----------------------------------------------------------------------
January 14, 2007 Vol. 41 - No 33
Financial Times

Indo-Lanka trade talks skidding on vegetable oil

By Dilshani Samaraweera

Sri Lanka is to tackle non tariff barriers (NTBs) faced by Sri Lankan exporters using the Indo-Lanka Free Trade Agreement (FTA) at January trade talks in New Delhi.

Trade authorities of India and Sri Lanka are meeting early this year to push the Comprehensive Economic Partnership Agreement (CEPA) forward. The CEPA is aimed at expanding the current FTA on goods, to include services, investment and other types of collaboration between the two countries. But CEPA talks skidded off track last year on a vegetable oil known as vanaspati.

Vanaspati flows from Sri Lanka to India dried up last year after the Indian government canalized its import. India later agreed to a quota of 250,000 MT instead of a free flow of the oil. But vanaspati exports from Sri Lanka are still blocked off by Indian red tape. Meanwhile the quota for the year will expire in March - without being used. Sri Lanka is looking to tackle such non-tariff barriers to trade, at the January talks.

“Although there was a decision at the top level in India for free trade, in the administration down the line, exporters face a lot of NTBs. So we want to resolve these. For instance, in the case of vanaspati, although the Indian government agreed to a quota, the exporters still can’t export, because import permits have still not been issued,” said Dr K Ratnayake, Secretary to the Ministry of Trade.

FTA - Free Trade Area > Home

 

[HariPrasad]

which are the things that Pakistan see they can export to India in large scale (there is demand in India) but not able to do so for some reason?

Textiles and handicraft.

 

[extra terrestrial]

Yes' i agree India has a problem with NTB's, our Textile industry is doing bad and needs protection

here are some of the reasons

Textile worry

Policymakers feel there is a pressing need to provide relief to the textile industry, which has a significant presence in finance minister P. Chidambaram’s home state Tamil Nadu.

The global economic recession has shrunk the demand for textiles. While low-cost competitors such as Bangladesh and Vietnam are ahead of India, around 383 textile mills here have shut shop with more than half of them in Tamil Nadu.

Further, in December last year, the European Union said it would allow Pakistan to export textile at zero duty, a privilege also enjoyed by Bangladesh. This means Indian textile will face over 9 per cent tax in Europe compared with Pakistan’s zero duty.

The textile ministry is believed to have sought a 5-per-cent duty drawback on exports to partially offset the duty advantage enjoyed by the two neighbours.
Duty cut tug-of-war in parleys

Boosting pry textiles production capacity to help RMG exporters cope with emerging challenges | TRADE & MARKET | Financial Express :: Financial Newspaper of Bangladesh

EU already provides duty free imports of Pakistani and Bangladeshi textile, which has put immense pressure on Indian textile which has slowed down growth, hence India imposes NBT's


As the link given above, Bangladesh is exempted from import duties on certain products where Indian exporters still have to pay

Well, textile is not even a major sector in your country, that means your country is not dependent on this industry. The duties can be imposed on Indian exports to Bangladesh as well in the name of protectionism, but it's not done. You can't deny the fact that Bangladeshi market is more liberal than the Indian one which is creating an unequal trade environment on India's favor and helping to boost the trade deficit. Since Bangladeshi market is quite open to Indian products, India should reciprocate it.

 

[Mr.S.Singh]

Well, textile is not even a major sector in your country, that means your country is not dependent on this industry. The duties can be imposed on Indian exports to Bangladesh as well in the name of protectionism, but it's not done. You can't deny the fact that Bangladeshi market is more liberal than the Indian one which is creating an unequal trade environment on India's favor and helping to boost the trade deficit. Since Bangladeshi market is quite open to Indian products, India should reciprocate it.

textile is one of the largest employee generator in India, and has been doing bad
While i agree with you, the world follows this face of protectionism not only India
Nobody is denying bangladeshi market is more liberal, it is a phase in economy where bangladesh boost exports, when a a third country, makes cheaper quality textile and exports it to Bangladesh, you would see Bangladesh coming up with similar NTB
BTW can you help me understand some barriers bangladeshi exporters face ?
thanks

 

[extra terrestrial]

textile is one of the largest employee generator in India, and has been doing bad
While i agree with you, the world follows this face of protectionism not only India
Nobody is denying bangladeshi market is more liberal, it is a phase in economy where bangladesh boost exports, when a a third country, makes cheaper quality textile and exports it to Bangladesh, you would see Bangladesh coming up with similar NTB
BTW can you help me understand some barriers bangladeshi exporters face ?
thanks

"there exists reportedly several types of local duties (countervailing duty on the assessable value is 8 per cent, special additional duty is 4 per cent, secondary education cess is 2 per cent and higher education cess is 1 per cent). Altogether it comes to around 15 per cent and this discourages exports from Bangladesh to India.
Researchers in both countries have found that Bangladesh has a potential export market of $2 billion in India. However, the slow growth of Bangladesh's exports is for the following reasons among others:
* Harsh testing requirements, complex harmonized code classification, and special labeling requirements and technical standards.
* Non-tariff measures are turned into non-tariff barriers while complying with sanitary and phyto-sanitary measures and technical barriers to trade.
* Poor logistics for land ports, only certain commodities can pass through land ports, cumbersome customs requirements, manual clearance, excessive inspection as an excuse for security, no customs cooperation or joint inspection, lack of warehouse facilities in many land ports, and no testing facility nearby in any land port.
* Non-acceptance of test certificates issued by Bangladesh Laboratory for certain products like soap, Jamdani saree, RMG and food products. In the absence of testing facilities in the locality, the samples are sent to far away laboratories (even to Chennai)
* Lack of banking services in border areas hampers the trade.
Some researchers have suggested to increase imports from Bangladesh, some steps such as, (a) India should recognise the principle of asymmetry and non-reciprocity in trade with Bangladesh, (b) there should be guaranteed market access of Bangladeshi products to India (liberal rules of origin,) (c) no tariff and non-tariff barriers and (d) export quality Bangladeshi products should not be in India's negative list, These measures will hardly dent India's large economy or market."
BOTTOM LINE | Bangladesh-India trade talks

 

[Mr.S.Singh]

"there exists reportedly several types of local duties (countervailing duty on the assessable value is 8 per cent, special additional duty is 4 per cent, secondary education cess is 2 per cent and higher education cess is 1 per cent). Altogether it comes to around 15 per cent and this discourages exports from Bangladesh to India.

CESS and Higher education cess is something everyone pays
The duties that have been mentioned are state govt duties that they levy, for an example any product produced outside the order of Mumbai, even if it is produced in the state of Maharashtra have to pay octroi/LBT tax, that goes upto 8%
Unless they can name the duty it is quite difficult to pin point which duty is levied.

Researchers in both countries have found that Bangladesh has a potential export market of $2 billion in India. However, the slow growth of Bangladesh's exports is for the following reasons among others:
* Harsh testing requirements, complex harmonized code classification, and special labeling requirements and technical standards.
* Non-tariff measures are turned into non-tariff barriers while complying with sanitary and phyto-sanitary measures and technical barriers to trade.

these are import requirement any country would ask you to follow.

* Poor logistics for land ports, only certain commodities can pass through land ports, cumbersome customs requirements, manual clearance, excessive inspection as an excuse for security, no customs cooperation or joint inspection, lack of warehouse facilities in many land ports, and no testing facility nearby in any land port.

That is India age old problem, our own exporters don't get storage place near the ports

Non-acceptance of test certificates issued by Bangladesh Laboratory for certain products like soap, Jamdani saree, RMG and food products. In the absence of testing facilities in the locality, the samples are sent to far away laboratories (even to Chennai)

Again, it is for both govt to set the standards. Indian standard might be different from bangladeshi, which both countries will have sit and bargain

* Lack of banking services in border areas hampers the trade.
Some researchers have suggested to increase imports from Bangladesh, some steps such as, (a) India should recognise the principle of asymmetry and non-reciprocity in trade with Bangladesh, (b) there should be guaranteed market access of Bangladeshi products to India (liberal rules of origin,) (c) no tariff and non-tariff barriers and (d) export quality Bangladeshi products should not be in India's negative list, These measures will hardly dent India's large economy or market."
BOTTOM LINE | Bangladesh-India trade talks

Banking hasn't penetrated well into rural area's, i don't see this as a NTB

India can give you the market, you have to penetrate it sir, with help of Indo-bangla trade association, govt of India cannot help you find a market, that doesnt come under

for no Tariff FTA agreements need to be strengthened, As per NBT's most of them are due infrastructure problem and local taxes, which central govt don't have control over

export quality not to be included in negative list, is something Bangladesh has to work on, bring the standards close to Indian accept standards.

 

[idune]

Non-tariff barriers set back exports to India

ShumonSohel Parvez

Local entrepreneurs are unable to reap the full benefits of duty-free exports to India because of the prevalence of non-tariff barriers, said exporters.

Some of these problems include exporters facing hassles in obtaining visas, product testing requirements and delays in getting test results from Central Food Laboratory (CFL) of India, duty variations from port to port, and the need to store imported goods at Bonded Warehouses by showing bank solvency certificates of Rs 50 lakh.

Despite certification by Bangladesh Standard Testing Institution (BSTI), cement exporters require further testing by the Bureau of Indian Standards (BIS) for entry into the Indian markets, mainly North-East India.

Meanwhile, the export of soap through Agartala Land Port is suspended for more than a year after the neighbour imposed a bar on entry from the particular point based on a decades-old rule.

At the same, inadequate physical facilities such as parking, the 10am-4:30pm office hours of Indian customs, narrow road connection to Bangladesh land ports at Indian border also hampers exports.

"It affects our exports to India," said Kamruzzaman Kamal, director of marketing of the leading food processor and exporter Pran-RFL Group. The group exports products worth $10 million to India a year.

Exporters said the existing barriers to entry in Indian markets delay shipments and increase costs of both exporters and importers due to compliance requirements.

These problems in exports to India exist at a time when trade gap between the two close neighbours is on the rise, mainly due to the rise in imports from India every year.

The trade deficit more than doubled in just five years to $4,057 million in 2010-11 from $1,998.58 million in fiscal 2006-07, with Indian products dominating the two-way trade basket, according to Bangladesh Bank and Export Promotion Bureau data.

Bangladesh mainly exports raw jute and jute goods, hilsha fish, processed foods, garments and knitwear, leather, cement, soap and cosmetics to India while imports include textile raw materials and chemicals, food items, vehicles and associated transport equipment, machinery and machinery appliances.

In the recent years, Bangladesh exports to India have increased but exporters said the volume of exports would go up further if Indian authorities do not impose rules that discourage imports from here.

Last month, the Indian authorities imposed a 4 percent special countervailing duty (CVD) on jute yarn.

"The extra imposition of 4 percent duty has left the import of jute yarn into India totally unviable and we are left with no option but to gradually stop imports," said a letter sent by Jute Products Importers Association of India to Bangladesh High Commission in New Delhi.

The letter, singed by the association's Vice Chairman Rishi Jalan, said the imposed tax has made Bangladesh jute yarn costlier than Indian ones.

Kamal of Pran-RFL Group said the company, which is set to establish a manufacturing plant in North East India, is recording a rise in exports to India. To develop the market, employees need to visit different Indian states frequently.

But as the Indian High Commission in Dhaka usually issues one-month single entry visas, most Pran officials have to come back to Dhaka every month and apply for a new visa, he said.

"Again, it takes 10-15 days to get a new visa," said Kamal, seeking one-year and 6-month multiple entry visas to allow its designated people to visit India and reduce the hassles with applying for visas frequently.

Problems with testing

The Pran official also pointed at the delays in getting testing reports for food items from CFL in India and the costs associated with testing each item in each consignment, which is mandatory.

He said samples are sent to Guwahati Health Analyst Office by post from the customs office, not by hand. It takes 12-13 days for the sample to reach. Similarly, test reports are also sent by post, causing further delays.

Earlier, the reports were faxed, according to the Pran official.

Rules and duty variations from

port to port

The Pran official said they also face hassles for the different duties charged at different ports in India.

For example, the duty on the PRAN Magic Cup Jelly (12 gm) and PRAN Candy (2.5 gm) is 5 percent at Agartala Port of Tripura, whereas it is 10.30 percent in the Suterkandi Port of Assam, according to Kamal.

He said the duty should be the same for a particular product in all the land ports.

Khurshid Ahmad Farhad, head of exports of Square Toiletries Ltd, said the company could not ship its Meril beauty soap brand through the Agartala Land Port in Tripura for over a year after the port authorities termed the item a cosmetic and restricted shipments based on the decades-old Drugs and Cosmetics Rules 1945.

But soap exports from other land ports such as Old Raghna of Tripura and Karimganj are on, he added.

In case of Benapole-Petrapole, testing of each consignment of soap and other cosmetics have been made mandatory, although the Indian government had earlier informed Bangladesh that there was no need for compulsory testing of soap imports, he said.

At Agartala port, the customs office does not receive shipments of food items from Bangladesh if the Customs Super remains absent for any reason or goes on leave, he added.

“In addition, if all the trucks of a particular shipment can not be sent in a serial, the customs authority does not receive the shipment and returns the trucks," said Kamal.

Bonded warehouse

In May 2010, the Office of the Commissioner of Customs (preventive) of North East Region imposed a rule where all importers have to keep imported products in a designated bonded customs warehouse until receipt of test reports.

The new rule requires importers to show a Bank Solvency Certificate of Rs 50 lakh to take a bonded warehouse.

"This is a huge amount for an importer. He needs to mortgage a big portion of his property to get the certificate. Thus, many importers are discouraged to do business," said Kamal.

Government initiative

Dr Mostafa Abid Khan, joint chief of Bangladesh Tariff Commission, said the problems that local exporters face would be brought up in negotiations in the next Joint Working Group meet of the two countries.

“Some of the problems that exporters faced earlier have been solved," he said, citing withdrawal of special additional duty on garment exports by India and framing a standard operating procedure for movement of trucks into ports of both the countries.

Dr Humayun Kabir, director (standards) of Bangladesh Standard and Testing Institution (BSTI), said the agency received international recognition of standard for 10 processed food items, biscuits, cement and some home textile products mid this year.

"After accreditation, we believe these products should get entry to the Indian market without any barriers and will not require further testing in India," he said.

Kabir said some products require mandatory testing in India as per the law of the country.

The BSTI director said it will be helpful for BSTI to move forward if exporters let BSTI know about their specific problems.

Non-tariff barriers set back exports to India

 

[extra terrestrial]

India can give you the market, you have to penetrate it sir, with help of Indo-bangla trade association, govt of India cannot help you find a market, that doesnt come under

We are not asking to give us the market, Indian market should at least be as liberal as the Bangladeshi market that provides easy access to Indian products.

export quality not to be included in negative list, is something Bangladesh has to work on, bring the standards close to Indian accept standards.

Sure, they are being exported to EU and US but cannot be exported to India, you must be having higher standards than EU and US, congratulations.

 

[Mr.S.Singh]

We are not asking to give us the market, Indian market should at least be as liberal as the Bangladeshi market that provides easy access to Indian products.

India is complex in its geography, here every state has its right imposes its own taxes sir. People within India find it difficult to do business, i surely get how these exporters feel

Sure, they are being exported to EU and US but cannot be exported to India, you must be having higher standards than EU and US, congratulations.

products for EU/US have to go under stringent regulation and certifications, those products meant for Eu/US are not exported to India

 

[extra terrestrial]

products for EU/US have to go under stringent regulation and certifications, those products meant for Eu/US are not exported to India

The negative list is barring the export of entire products, not merely asking for regulation and certifications. Besides, the same factories and companies who are dealing with EU/US can also export to India, but you have banned those products for some unknown reasons.

 

[Mr.S.Singh]

The negative list is barring the export of entire products, not merely asking for regulation and certifications. Besides, the same factories and companies who are dealing with EU/US can also export to India, but you have banned those products for some unknown reasons.

Again before the know how about the product and why its on negative list i cannot comment. IMO negative list is something India uses to protect its industry, but sometimes products are banned after certain negative tests

 

[extra terrestrial]

Again before the know how about the product and why its on negative list i cannot comment. IMO negative list is something India uses to protect its industry, but sometimes products are banned after certain negative tests

The argument is now becoming circular. All I'm saying is that India should at least be as liberal as Bangladesh when it comes to this bilateral trade if we are really talking about equal opportunities. If there are duties imposed by the state level, the central government should make concessions by reducing the central level tariffs.

Anyway, there's also a lot to blame our own policy makers. If the Indian government is using the protectionist policies why can't we? Now that we are not dependent on aids, there's no such balance of payment issues then why abide by the hard fisted conditions of IMF?