In a case of imposing higher hidden taxes on the shipment of eight million RMG items to India under duty-free facility, the Commerce Ministry of Bangladesh wants elucidation from Delhi, said an official.
Further he lamented that these higher hidden taxes curbed the country from availing benefits of exporting apparel items, which actually were meant to provide duty-free facility under the South Asia Free Trade Agreement (SAFTA) framework.
These hidden taxes add to more than 18 percent, and in this regard the Ministry expects Delhi to give a reply before Bangladesh Prime Minister's visit to India, which is commencing from December 19, said the official.
In a bid to increase trade relations and trade volumes between the two countries, Bangladesh will ask India to increase the duty-free quota and remove non-tariff and para-tariff barriers, during PM's visit to India, he informed.
Whereas, he said that complete duty waiver on Bangladeshi RMG exports to India can not be expected, since both the countries produce nearly similar sought of apparel items.
He informed that the clarification has been requested, as the Ministry believes that imposing such taxes is illogical and the country is entitled to the duty-free benefit.
In this regard, a letter has been sent by the Ministry after a complaint lodged by Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
As member companies of the association were going through difficulties while exporting products under duty-free quota, the association lodged the complaint.
Though the country has signed an agreement with India in September 2007 to export eight million pieces of garment items per year under duty-free facility, it could dispatch just 40 percent of the said volume in the first nine months of the current year, informed BGMEA President.
BGMEA members enjoy 70 percent share of the total quota, while the remaining 30 percent share goes to the members of Bangladesh Knitwear Manufacturers and Exporters Association.
Fibre2fashion News Desk - India
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