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Deadlock over jute goods exports to India gets resolved
17 Feb '11
2 min read
Bangladesh's Commerce Ministry recently revealed that, the revenue department under the Ministry of Finance of India has waived its decision of subjecting jute and jute product imports from Bangladesh to 14 percent duty, through a notification issued in this behalf on February 14, 2011, keeping the public interest into consideration.
Earlier, the Indian government on January 18, 2011 had subjected the jute and jute goods imports from Bangladesh to a duty imposition of 14 percent, which included eight percent countervailing duty (CVD), four percent additional CVD and two percent other charges.
Prior to the duty imposition, the jute and jute product imports from Bangladesh were enjoying duty free access in India since 2004.
However, reversal of its decision by the Indian government has eased the deadlock prevailing over the exports of three billion worth of jute products from Bangladesh to India.
Bangladesh's jute industry has recently started recovering from the effects of the global economic slump, with a rise in the demand for jute products in the global market, but then such duty imposition had rendered its goods uncompetitive, the jute good exporters from Bangladesh said.
The traders from India, too, stated that such abrupt duty imposition on the natural fibre is unjust, and even added that, the Indian laws do not support such duty imposition.
Earlier, the Indian government on January 18, 2011 had subjected the jute and jute goods imports from Bangladesh to a duty imposition of 14 percent, which included eight percent countervailing duty (CVD), four percent additional CVD and two percent other charges.
Prior to the duty imposition, the jute and jute product imports from Bangladesh were enjoying duty free access in India since 2004.
However, reversal of its decision by the Indian government has eased the deadlock prevailing over the exports of three billion worth of jute products from Bangladesh to India.
Bangladesh's jute industry has recently started recovering from the effects of the global economic slump, with a rise in the demand for jute products in the global market, but then such duty imposition had rendered its goods uncompetitive, the jute good exporters from Bangladesh said.
The traders from India, too, stated that such abrupt duty imposition on the natural fibre is unjust, and even added that, the Indian laws do not support such duty imposition.
Fibre2fashion News Desk - India
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