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Duty-free access to India meaningless – Experts
Mar '10
The Bangladesh government and clothing trade bodies have requested the Indian government to lift the quota on exports of ready-made garments to India from Bangladesh, since it is not benefiting Bangladesh.

In September 2008, India had permitted Bangladesh to export eight million pieces of garments duty-free to India in a financial year, with the purpose to balance the trade gap between the two countries.

But according to experts, the good intentions never translated in to action, despite there being a good demand for Bangladeshi goods for the reason that, India imposed eight percent countervailing duty and a four percent special additional duty.

This made the landing cost of Bangladeshi clothing very costly in India and completely negated the impact of duty-free access, due to which Bangladesh has been able to ship only 50 percent of the eight million pieces quota.

They are also of the opinion that exports under the tariff rate quota (TRQ) involve long procedures, which sometimes discourages exporters and advice that, if India really wants to make the offer meaningful, it must relax rules.

At a recently held meeting it was decided that, Bangladesh would explain its current position vis-à-vis the TRQ and then request India to remove the ceiling on Bangladeshi exports of clothing to that country.

Fibre2fashion News Desk - India

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