Exporters fear even more trade barriers over India’s new customs rules

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India’s move to introduce a stringent customs provision empowering customs officials to administer guidelines of origin under preferential trade arrangement may appear as a fresh non-tariff barrier to Bangladesh’s export to the united states, authorities and trade leaders explained.

They said that Bangladesh’s export which have been facing numerous NTBs, including testing, standardisation and product specific barriers, to India might face a blow as a result of new provision called administration of rules of origin under trade agreement.

Indian maneuver came at the same time when Bangladesh’s export, particularly readymade garment products, to the united states is defined to get momentum and the entire export to India for the very first time exceeded the $1-billion mark and stood at $1.25 billion in the fiscal year 2018-2019, they said.

Such provision which finally would become an NTB will further widen the existing huge trade imbalance worthy of a lot more than $7.5 billion against Bangladesh, they added.

India through the Finance Action-2020 introduced the provision empowering the customs officials to reject and suspend the preferential rewards and have other administrative procedures if they believe that the united states of origin has not been met.

The provision also set numerous conditions, including building a declaration that goods quality for the power and exercise reasonable care concerning accuracy and truthfulness of information linked to country or origin criteria, for claiming for preferential rate of duty under trade agreement.

India’s commerce and market ministry possesses requested the financing ministry to introduce stringent provisions linked to rules of origin, to empower customs officers for looking at the abuse of FTAs, and stricter scrutiny of goods via Bangladesh, Sri Lanka, South Korea and the ASEAN bloc amid fears of Chinese imports increasingly staying routed through these countries, according to a written report of the Economic Times.

Bangladeshi goods, except 25 items linked to liquor and tobacco, get duty-free market usage of India as a least developed region. India has supplied the benefit beneath the South Asian No cost Trade Area.

Former Bangladesh Knitwear Makers and Exporters Association president Fazlul Haque told New Age that the implementation of the actions would affect Bangladesh’s export which had already been facing numerous others non-tariff barriers.

‘Apparently, India may adopt the measures to stop entering Chinese goods through the countries, nonetheless it will finally shrink Bangladesh’s export mainly because importers will feel discouraged to import from Bangladesh as a result of barrier,’ he said.

It'll be added as new hindrance along with existing obstacles to the bilateral trade, he said.

Bangladesh Chamber of Industries president Anwar-Ul-Alam Chowdhury Parvez said that it could discourage Indian importers to import products from Bangladesh as there will be no guarantee that customs would release goods.

Customs may suspend the power showing numerous reasons including country of origin and worth addition, if indeed they wish, he feared.

It'll create uncertainty among importers, he added.

He said that Bangladesh commerce ministry with Bangladesh Garment Producers and Exporters Association should take the issue with Indian area to prevent the move.

South Asian Network about Economic Modeling executive director Selim Raihan said that India often raised such issue whenever export of any product from Bangladesh to the country increased.

A country can check violation of any condition such as country of origin of trade arrangement nonetheless it is against the international norms to introduce additional procedures to create hindrance to trade under the FTAs, he said.

The proposed provision gives huge discretionary power to Indian customs officials to create hurdle to Bangladesh export, he said.

‘Bangladesh’s export will face a fresh blow,’ he said.

Such protectionism for neighbouring countries can be not great for India amid discomfort with China as it would also breach the confidence of neighbours, he observed.
Source: https://www.newagebd.net

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