New Delhi seeks removal of import duties on several products

India sought the removal of certain products from the sensitive list of Bangladesh at the 10th meeting of the Bangladesh-India Joint Working Group (JWG), according to the minutes of the meeting.
At the JWG meeting, held in New Delhi last month, India urged Bangladesh to remove import duties on certain products like oranges, pomegranates, bicycles, dairy/milk products, steel, sugar, rice, cement, tea, coffee, jewellery items, and cut and polished diamonds.
India also highlighted the need to improve the trade infrastructure of roads and land ports for enhancement of trade between the two countries.
The neighbouring country requested removal of oranges from the sensitive list under SAFTA and also urged Dhaka to consider removal of import duty of INR 37 per kg levied on Indian oranges. It sought removal of pomegranates from the sensitive list under SAFTA and also urged Dhaka to consider removal or reduction of import duty of 25 per cent levied on Indian pomegranates.
The Indian side requested the Shekh Hasina government to remove dairy and milk products from the sensitive list maintained by Bangladesh under SAFTA so as to establish the SAARC milk grid.
The minutes noted that New Delhi emphasised that this would aid cross-border investments and improve the per capita milk nutrition intake. It noted that Bangladesh imposes 25 per cent import duty on milk powder and sought a reduction in this duty.
The Indian side requested Dhaka to consider the removal of safeguard duty of 25 per cent on ferro alloys. The Indian side stated that in the case of ferro alloys, a safeguard duty of 25 per cent in addition to other duties has been imposed about two months ago, which has affected the trade significantly, leading to reduction by up to 70 per cent.
The Indian side stated that Bangladesh’s government has increased import duty on raw sugar from Tk. 3,500 per tonne to Tk. 7,000 per tonne on August 27, 2015. The current import duty of Tk. 7,000 per tonne translates into USD 90 per tonne.
Indian also sought waiver of import duty on exports of raw sugar (as well as white sugar) from India to Bangladesh or a concessional/preferential duty for Indian sugar.
It also said that the import duty on rice has been increased from 0 to 20 per cent in two phases, resulting in a steep hike in prices of rice in the local market in Bangladesh. Since most of the rice imports of Bangladesh are from India, the Indian side sought a reduction in the import duty on rice.
The Indian side stated that the total incidence of duties on imports of cement was as high as 92 per cent, on account of duty and other levies such as Customs duties and supplementary duties, value added tax (VAT), advance income tax, regulatory duty and advance trade VAT. A request was made to reduce the duties and other levies to enable availability of cement at competitive prices in Bangladesh.
The Indian side requested Dhaka to lower import duties on Indian tea to boost trade amongst the two nations.
The Indian side stated that the applied import tariff rate is 25 per cent on all types of coffee in Bangladesh. A request was made to provide tariff concessions on all forms of coffee, reducing it from the existing 25 per cent to 0 per cent for India, to improve the trade of coffee between India and Bangladesh.
The Indian side stated that the tariffs on imports of gold and jewellery items were very high in Bangladesh. The total tariff applicable on articles of jewellery including plain gold was 59.18 per cent and the tariff on cut and polished diamonds was as high as 151.68 per cent. Such high tariffs have led to an unofficial trade in gems and jewellery from India to Bangladesh, it observed.
 It requested Dhaka to reduce the tariff on these products so as to increase the bilateral trade in these.
The Indian side stated that exports of leather and leather products from Bangladesh have increased in the past few years, which has also led to significant increases in imports of footwear components under HS code 6406 in Bangladesh.
The Indian side requested Bangladesh to consider the removal of certain products related to leather and footwear components from the sensitive list. It specifically requested the Sheikh Hasina government to consider removal of footwear components in view of the requirement of these items as raw materials for its exports.
The Bangladesh side pointed out that as a member of SAFTA, if the import duties are removed/reduced for India, these would be automatically extended to other SAFTA members. So the Indian requests would be examined after consultation with the relevant stakeholders and agencies, it explained.
The Bangladesh delegation also observed that though the country has been provided duty-free access for almost all products, the expected benefits are not accruing due to various kinds of non-tariff measures in India. The Indian side requested Bangladesh to share these perceived non-tariff measures

New Delhi seeks removal of import duties on several products

India sought the removal of certain products from the sensitive list of Bangladesh at the 10th meeting of the Bangladesh-India Joint Working Group (JWG), according to the minutes of the meeting. At the JWG meeting, held in New Delhi last month, India urged Bangladesh to remove import duties on certain products like oranges, pomegranates, bicycles, dairy/milk products, steel, sugar, rice, cement, tea, coffee, jewellery items, and cut and polished diamonds. India also highlighted the need to improve the trade infrastructure of roads and land ports for enhancement of trade between the two countries. The neighbouring country requested removal of oranges from the sensitive list under SAFTA and also urged Dhaka to consider removal of import duty of INR 37 per kg levied on Indian oranges. It sought removal of pomegranates from the sensitive list under SAFTA and also urged Dhaka to consider removal or reduction of import duty of 25 per cent levied on Indian pomegranates. The Indian side requested the Shekh Hasina government to remove dairy and milk products from the sensitive list maintained by Bangladesh under SAFTA so as to establish the SAARC milk grid. The minutes noted that New Delhi emphasised that this would aid cross-border investments and improve the per capita milk nutrition intake. It noted that Bangladesh imposes 25 per cent import duty on milk powder and sought a reduction in this duty. The Indian side requested Dhaka to consider the removal of safeguard duty of 25 per cent on ferro alloys. The Indian side stated that in the case of ferro alloys, a safeguard duty of 25 per cent in addition to other duties has been imposed about two months ago, which has affected the trade significantly, leading to reduction by up to 70 per cent. The Indian side stated that Bangladeshs government has increased import duty on raw sugar from Tk. 3,500 per tonne to Tk. 7,000 per tonne on August 27, 2015. The current import duty of Tk. 7,000 per tonne translates into USD 90 per tonne. Indian also sought waiver of import duty on exports of raw sugar (as well as white sugar) from India to Bangladesh or a concessional/preferential duty for Indian sugar. It also said that the import duty on rice has been increased from 0 to 20 per cent in two phases, resulting in a steep hike in prices of rice in the local market in Bangladesh. Since most of the rice imports of Bangladesh are from India, the Indian side sought a reduction in the import duty on rice. The Indian side stated that the total incidence of duties on imports of cement was as high as 92 per cent, on account of duty and other levies such as Customs duties and supplementary duties, value added tax (VAT), advance income tax, regulatory duty and advance trade VAT. A request was made to reduce the duties and other levies to enable availability of cement at competitive prices in Bangladesh. The Indian side requested Dhaka to lower import duties on Indian tea to boost trade amongst the two nations. The Indian side stated that the applied import tariff rate is 25 per cent on all types of coffee in Bangladesh. A request was made to provide tariff concessions on all forms of coffee, reducing it from the existing 25 per cent to 0 per cent for India, to improve the trade of coffee between India and Bangladesh. The Indian side stated that the tariffs on imports of gold and jewellery items were very high in Bangladesh. The total tariff applicable on articles of jewellery including plain gold was 59.18 per cent and the tariff on cut and polished diamonds was as high as 151.68 per cent. Such high tariffs have led to an unofficial trade in gems and jewellery from India to Bangladesh, it observed. It requested Dhaka to reduce the tariff on these products so as to increase the bilateral trade in these. The Indian side stated that exports of leather and leather products from Bangladesh have increased in the past few years, which has also led to significant increases in imports of footwear components under HS code 6406 in Bangladesh. The Indian side requested Bangladesh to consider the removal of certain products related to leather and footwear components from the sensitive list. It specifically requested the Sheikh Hasina government to consider removal of footwear components in view of the requirement of these items as raw materials for its exports. The Bangladesh side pointed out that as a member of SAFTA, if the import duties are removed/reduced for India, these would be automatically extended to other SAFTA members. So the Indian requests would be examined after consultation with the relevant stakeholders and agencies, it explained. The Bangladesh delegation also observed that though the country has been provided duty-free access for almost all products, the expected benefits are not accruing due to various kinds of non-tariff measures in India. The Indian side requested Bangladesh to share these perceived non-tariff measures