Indo-Bangla Customs Meeting
Dhaka to seek removal of NTBs, infrastructure dev on border
Bangladesh will seek removal of non-tariff barriers, improvement of infrastructure and connectivity and harmonisation of customs procedures at the land customs stations along the border between India and Bangladesh at the upcoming meeting of the Joint Group of Customs to facilitate bilateral border trade, officials said. They said that border trade facilitation would be the main objective of the meeting through settling the long-standing issues like NTBs faced by Bangladeshi businesses in export to India, infrastructure development at LCSs and simplification of customs procedures.
‘The NBR has already finalised its agenda for the meeting, giving emphasis on the recommendations of the businesspeople and field-level customs officials,’ a high customs official told New Age last week.
The 10th JGC meeting will be held in February 5-6 in New Delhi in India and National Board of Revenue member (customs policy) Farid Uddin will lead the Bangladesh delegation, he said.
The both sides will also discuss the progress made after the ninth JGC meeting held in Dhaka in October 2013, he said.
The businesspeople have also placed their recommendations before the NBR for discussion at the meeting, officials said.
They said that the Federation of Bangladesh Chambers of Commerce and Industry suggested that the NBR should focus on removing non-tariff barriers and improving infrastructure, connectivity and services at LCSs at the meeting.
In its recommendations, the FBCCI said that despite having huge potential Bangladesh’s export could not be increased mainly due to tariff and non-tariff barriers in India.
Removal of tariff and non-tariff barriers and an improved connectivity, infrastructural facility and smooth procedures are critical for enhancing bilateral trade between the two neighbouring countries and for reducing huge trade imbalance against Bangladesh, it said.
Trade deficit between the two countries has been increasing over the years and stood at $5.44 billion in the last fiscal year of 2013-2014 when Bangladesh imported goods worth $6 billion against its import worth $ 456 million.
According to the FBCCI, major NTBs include non-acceptance of standards and testing certificates issued by Bangladeshi laboratory, absence of testing facilities close to the border on the Indian side, non-availability of advantage of random sampling for exporters, packaging and labelling issues, cumbersome procedures and excessive inspection by the Indian customs.
Though India gave duty-free access to all Bangladeshi products, except tobacco and liquor, export cannot grow because of some tariff and para-tariff barriers including state-based local duty, countervailing duty, basic duty of customs and surcharges, it said.
‘India does not accept the standard certificates issued by Bangladesh Standards and Testing Institution that creates a lot of problems for exporters,’ the FBCCI said.
In the absence of testing facilities in the border areas, samples are sent to far away laboratory that is the main barrier to food items export from Bangladesh, the apex trade body said.
‘It is necessary to establish testing facilities at major border points of India and sign mutual recognition agreements with commensurate strengthening of the BSTI,’ it said.
Inadequate customs and port facilities including warehouse facilities, poor condition of roads in most of the land customs stations both of Bangladesh and India and in absence of bonded warehouse on the Indian side hinder the smooth movement of goods from Bangladesh.
Bangladesh may also raise the issue of establishing a trade corridor among Banglabandha, Phulbari and Kararvita that is necessary for expansion of border trade among Bangladesh, India and Nepal, the FBCCI said.
Adequate banking services on borders, road and rail communication to and from borders, simplified visa procedures for businesses and harmonisation of customs procedures will benefit both sides, it added.
-With New Age input
