Close on heels of India implementing new customs rules — in September, India issued the Customs Rules-2020, which was framed for the administration of rules of origin under all the trade agreements it has signed so far — reportedly framed with a view to check inbound shipments of products that are considered of inferior quality as well as dumping of goods by a third country routed through an FTA partner nation, Bangladesh has called upon India to consider withdrawing the new rules, as per media reports.
We have asked for the withdrawal of the rules considering its probable impact on our exports to India, reportedly maintained a senior official of the Commerce Ministry to the media while adding that Dhaka has also requested New Delhi to follow the guidelines for the regional trade treaties while verifying the compliance with rules of origin.
Bangladesh reportedly came up with the suggestions after recent examination and detailed consultation with the stakeholders on the implications of the new customs rules.
According to media reports, officials have expressed apprehensions that the new rule would make it difficult for Bangladesh to get tariff preferences and further widen the trade gap between the two countries.
The Bangladesh Trade and Tariff Commission (BTTB), the Export Promotion Bureau (EPB) and the National Board of Revenue (NBR), which have been asked by the Ministry of Commerce to examine and evaluate the impact of India’s new custom rules, have reportedly maintained that due to the same, Bangladeshi exporters would not be able to avail tariff preferences in the Indian market.
This, they said, will result in fall of exports and widen the trade gap further.