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Imposition of 14% duty impedes jute exports to India
24 Jan '11
1 min read
India has recently ended the duty free access that it had granted to the Bangladeshi jute products as back as in 2004.
Pursuant to this move of the Indian government, the customs authorities have unexpectedly imposed a 14 percent duty on imports of jute products from Bangladesh, because of which around 300 vehicles loaded with Bangladeshi jute products were compelled to return back from the Benapole.
The 14 percent duty imposition includes eight percent countervailing duty (CVD), four percent additional CVD and two percent other charges.
Sizeable consignments of hundreds of tons of jute products remained blocked at the Bangladesh's Benapole and India's Petrapole ports, since January 18. Thus, no shipments of Bangladeshi jute products have arrived in India since then.
The Bangladeshi jute industry recently started reviving owing to the rise in demand for jute products in the global market, but such abrupt duty imposition is apprehended to render its goods uncompetitive. Also, with such heavy duty, the country would no more be able to export products like carpeting cloth bags and jute bags to India.
Pursuant to this move of the Indian government, the customs authorities have unexpectedly imposed a 14 percent duty on imports of jute products from Bangladesh, because of which around 300 vehicles loaded with Bangladeshi jute products were compelled to return back from the Benapole.
The 14 percent duty imposition includes eight percent countervailing duty (CVD), four percent additional CVD and two percent other charges.
Sizeable consignments of hundreds of tons of jute products remained blocked at the Bangladesh's Benapole and India's Petrapole ports, since January 18. Thus, no shipments of Bangladeshi jute products have arrived in India since then.
The Bangladeshi jute industry recently started reviving owing to the rise in demand for jute products in the global market, but such abrupt duty imposition is apprehended to render its goods uncompetitive. Also, with such heavy duty, the country would no more be able to export products like carpeting cloth bags and jute bags to India.
Fibre2fashion News Desk - India
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