SUMMARY RECORD OF INDIA-BANGLADESH MEETING … · SUMMARY RECORD OF INDIA-BANGLADESH MEETING OF THE JOINT WORKING GROUP ON TRADE HELD ON 13 -14 JUNE ... Bangladesh has imposed ban

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-SUMMARY RECORD OF INDIA-BANGLADESH MEETING OF THE JOINT

WORKING GROUP ON TRADE HELD ON 13 -14 JUNE 2013

The 8th meeting of the India-Bangladesh Joint Working Group on Trade was held in New Delhi on 13-14 June 2013

Indian delegation was led by Shri Arvind Mehta Joint Secretary Ministry of Commerce and Industry Government of India and the Bangladesh delegation was led by Mr Md Shawkat Ali Waresi Joint Secretary Ministry of Commerce Government of the Peoples Republic of Bangladesh

List of participants on both sides is attached

Shri Arvind Mehta warmly welcomed the visiting delegation Referring to the positive trade policy initiatives taken by India in favour of Bangladesh he reaffirmed Indias desire to encourage greater imports from this important neighbour and conveyed Indias

deep commitment to strengthening its trade relationship with Bangladesh He expressed happiness that exports from Bangladesh to India have trebled during the last three years He also mentioned that Indian imports have gone up during this time He drew the attention of the Bangladesh delegation to the fact that cost of doing business in South Asia is high as compared to international levels These costs can be easily reduced by removing the existing bilateral tariff as well as non-tariff barriers He further said that both countries should work towards deepening of the bilateral relationship by facilitating movement of vehicles between both nations This will benefit not only bilateral trade but also strongly encourage Indian tourists to travel seamJessly into tourist destinations of Bangladesh He stressed that Indians are now amongst the highest spending international tourists

The leader of the Bangladesh delegation Mr Md Shawkat Ali Waresi thanked the Indian side for the excellent arrangements made for their stay in Delhi He conveyed deep appreciation of Bangladesh for the efforts made by the Indian side to resolve all the pending issues He further stated that the next step is to ensure that Governments of both countries facilitate deepening of bilateral trade relationship

BANGLADESH ISSUES

1 Recognition of certificates issued by BSTJ

Bangladesh side reiterated its request for accepting the certificates issued by BSTI and allowing exports of the items certified by BSTI laboratories already accredited by NA L for such items ~~

Indian side informed that guidelines for import of food items into India are prescribed and regulated by Food Safety Standards Authority of India (FSSAI) [also available at wwwJssaigovin] It has been found that some Government of India mandated test parameters have not been covered by NABL accreditation A copy of the list was handed

over to the Bangladesh side for their information

Indian side further informed that FSSAI is expected to harmonise Indian standards with the International standards within one year However in the meantime all food item

exports conforming to international standards are allowed into India

2 Removal of CVD on RMG

Referring to Government of India notification dated 1 March 2013 exempting excise duty on domestic manufacture of RMGs Bangladesh side requested for withdrawal of CVD on RMGs as it is adversely affecting their exports

Indian side clarified that the optional route of excise duty on RMG products for domestic manufacturers has been restored by this notification

Indian side stated that Government of Bangladesh can take up this issue through the diplomatic channels for consideration by the Indian Ministry of Finance

3 Development of LCS infrastructure

Bangladesh side requested for the stalus of development of leps at Agartala Petrapole Dawki and LCS at Srimantapur

Indian side informed that Agartala ICP is expected to be completed by October 2013 Petrapole by March 2014 land acquisition is under process at Dawki and is likely to be completed by April 2014 Thereafter normal time of completion of this work would be about two years As regards Srimantapuf the latest status will be ascertained from the

Tripura State Government and the Bangladesh side will be informed accordingly

4 Export of electronics and motor-bike through LCS to India

Bangladesh side stated that there are port restrictions on export of electronics and motor

bikes to India along the MeghalayajWest Bengalf AssamjTripura-Bangladesh border They further stated that the quality certification issued by Bangladesh Road Transport Authority (BRTA) is not being accepted by the Indian authorities

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--Indian side informed that there is no port restriction on import of electronics goods The issue regarding lifting of port restrictions for import of motor bikes from Bangladesh is being examined

S Permission for construction of LCS infrastructures within 150 yards of zero line

Both sides noted that construction is now being allowed within 150 yards of the zero line for LCSICP purposes and agreed to drop this agenda item

6 Opening of branch office in India by Bangladeshi Companies

Bangladesh side dropped this agenda item

7 Lilliput kids-wear issue

Bangladesh side reiterated its request for expediting all pending payments (approximately US$ 5 Million) to 22 Bangladeshi vendors by Lilliput Kids-wear

Indian side informed that the first instalment amounting to Rs US$ 21520 out of the total pending payments has been released by Lilliput Kids-wear

Bangladesh side appreciated the efforts made by Indian side in this regard

Both sides agreed that there is a need to involve the respective chambers of commerce to come to an agreement for joint resolution arbitration of commercial disputes

8 Acceptance of dollar endorsement by money changers for visa purpose

Bangladesh side dropped this item

9 Dhaka-Guwahati-Dhaka and Dhaka-Shillong-Dhaka Bus Service

Bangladesh side wanted to know the status of their proposal for plying buses between Dhaka-Guwahati-Dhaka and Dhaka-Shillong-Dhaka Indian side stated that they will revert after taking inputs from the Assam and Meghalya State Governments Details also need to be ascertained by both sides of the commercial viability of these bus routes

10 Temporary ban on essentia1 commodities

Bangladesh side stated that sudden bans on essential commodities disrupt the market prices of these goods in their country and therefore requested for not imposing any such bans in future Indian side stated that bans are generally imposed due to domesti

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supply constraints and to address the price inflation domestic issues during times of such shortages

With regard to Cotton an MoV is under discussion between both sides for unrestricted export of 15 Million bales of cotton to Bangladesh on annual basis even in case of export ban by India on raw cotton

INDIAN ISSUES

11 Trade Facilitation

(i) Removal of 225 items from Bangladesh sensitive list of SAFTA Indian side reiterated its request for removal of 225 items from Bangladesh sensitive list under SAFT A As on date only 21 items have been removed from the Sensitive List under SAFT A which is less than ten percent of the items identified as export interest by the Indian side

Bangladesh side stated that internal consultations are underway and the status is expected to be given in the forthcoming meeting of the Working Group for Reduction of Sensitive Lists under SAFTA

(ii) Confirmation on the SAFT A proposal

Indian side urged the Bangladesh side to respond positively to the proposal put forward in the last SAFT A meeting by Bhutan India Maldives and Pakistan that peak tariff on

all products be reduced by all member countries to 0-5 by the year 2020 excluding a small number of about 100 tariff lines which may still remain in the respective sensitive

lists of each member country

Bangladesh side stated that their response may be expected during the next SAFT A meeting to be held in July-August 2013

(iii) Renewal of Protocol on Inland Water Transit and Trade

Indian side stated that the Protocol on Inland Water Transit and Trade is being renewed

at present for short periods of time Due to this there is not much private sector interest for investment in this sector To encourage greater investment in this sector Indian side requested for signing of this protocol for a longer period of not less than 10 years

Bangladesh side informed that internal consultations are underway to make the PIWIT coterminous with the Trade Agreement

(iv) Sharing of the TLP Schedule of SAFfA

Bangladesh Government is requested to share the TLP schedule being followed by it under SAFfA to understand the time schedule of the downward movement of the peak tariff levels so as to reach 5

Bangladesh side informed that the TLP schedule is being prepared and will be shared The current peak tariff rates are as follows

Final goods - 25 Intermediate goods -10 primary goods - 2

12 Non Tariff Barriers

(i) Institutionalised verification mechanisms relating to Rules of Origin under SAPT A and SAFfA

Indian side expressed their concern about possible mis-declaration of country of origin

certificate for textiles and betel nuts imported from third countries and exported to India after they are re-packed I reinvoiced without any major value addition Indian side informed that action to prevent such misuse needs to be taken by both sides

Bangladesh side informed that they have already banned import of raw betel nuts except for the export processing zones The export processing zones can export betel nuts only after the mandatory value addition norms are adhered to As regards textiles Bangladesh side requested for information regarding any specific instances

(ii) Banking Problems faced by businessmen

Indian side reiterated its request for resolving the issue relating to payment defaults by Bangladeshi importers arising out of non honouring of irrevocable Letters of Credit not

honouring of LICs on due date non payment of interest for delays and returning LICs without payment by the Bangladesh Banks The total pending claims amount to USS 5300744404 and Euro 688997209

Bangladesh side informed that payment for most of the pending claims has been made In some cases the goods did not enter Bangladesh and the remaining pending cases are

subjudice Bangladesh side handed over a status note in this regard They also handed over a list of pending payments arisen out of non-honouring of LCs by Indian banks

(iii) Difficulty in sending remittances back to India Indian side appreciated the relaxation made in repatriation of full savingsl retirement benefits once the foreign employee would be leaving Bangladesh Salary remittance of

foreigners employed in Bangladesh h~S also been raised from ~

companies are still facing problem of repatriating earnings with respect to royalty where there is a ceiling of 6 of sale proceeds in Bangladesh6 of the cost of imported machineries This ceiling needs to be suitably enhanced

Bangladesh side noted the Indian concern

(iv) Non- inclusion of export of Vulcanized rubber thread through Akhaura LeS

Indian side reiterated its request for removal of port restriction on export of Vulcanised

rubber thread via Akhaura LCS which is affecting trade opportunities

Bangladesh side stated that this proposal has been agreed to in principle and is expected to be implemented shortly

(v) Port Restrictions in Bangladesh

Indian side reiterated its request for removal of land port restrictions imposed by Bangladesh particularly on items like yarn milk powder fish sugar potatoes which affects bilateral trade opportunities It was pointed out that such Indian exports are allowed by the sea route but not through all land custom posts The NBR notification permits export of specific items from NepalBhutan barring the same to India The notification needs to be amended so that this becomes WTOSAFfA compliant

Bangladesh side agreed to check and revert at the earliest on these issues

(vi) Export of Poultry products

Bangladesh has imposed ban on import of poultry and poultry products from India for quite some time in the wake of outbreak of avian inlluenza (bird flu) in India Since the outbreak of avian influenza is quite frequent in India export of poultry products to Bangladesh is irregular In view of the above India is following the concept of compartmentalization as provided under OlE guidelines Indian side requested Bangladesh authorities to lift the ban on import of poul try prod ucts from India Indian side invited a Bangladeshi team to see the compartmentalisation being carried out

Bangladesh side noted the request and sought a formal proposal along with required technical details through diplomatic channels

(vii) Pre-Shipment Inspection (PSI)

Indian side conveyed its concern regarding PSI being mandatory except in case of goods specifically exempt and requested that mandatory PSI should be abolished as is the norm worldwide

Bangladesh side stated that this PSI requirement will become optional with effect from

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Therefore both sides agreed to drop this agenda item

13 Tariff Barriers

(i) Imposition of supplementary duty of 60 on import of plastic goods

Indian side reiterated its request for reduction of high supplementary duty on plastic goods imported by Bangladesh

Bangladesh side stated that the supplementary duty on most of the plastic goods will be reduced to the range of 45 - 20 with effect from July 2013 They further stated that this supplementary duty is also applicable to local manufactured goods at the same rate as on imports of similar items

14 Improvement in infrastructure

(i) Border Haats

This issue was discussed in the Joint Border Haat Committee meeting held on the sidelines Minutes are attached at AnnexuremiddotII

(ii) Opening of a new LCS at Maheshkhola-Bandrasora (Ramnathpur)

Indian side proposed to open a new LCS at Maheshkhola between border pillar noI186 S-S and 11866-5

Bangladesh side took note of the request

(iii) Relocation of Khowaighat-BaIIa LCS

Indian side indicated that full-fledged trade through the present operational LCS at Khowaighat - Balla is not possible as there is a need for the constru~

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river Khowai which flows along the zero line Inclian side therefore proposed relocation of the LCS This proposal has also been recommended by the joint Sub-Group on LCS infrastructure

Both sides agreed in principle to relocate the LCS as recommended by the Sub Group on LCS Infrastructure between border pillar Nos 196615 and 1966 25

(iv) infrastructural developments at Land Customs Stations

Inclian side stated that Government of India is in the process of upgrading 7 LCS bordering Bangladesh to Integrated Check Posts at a cost of Rs 467 crore These LCSs are Petrapole Hili Changrabandha Oawki Sutarkandi Agartala and Oemagiri Additionally the Dept of Commerce is upgrading Mahadipur Gojadanga Fulbari Dalu Borosora Ghasuapara Srimantapur Indian side also informed that the existing LCS at Sabroom is contemplated to be converted into an ICP

Indian side requested Bangladesh side to share the status of the development of LCSs on their side

Bangladesh side informed the status of upgradation as follows

(a) Modernisation projects in the process of approval Benapole (petra pole) Land Port shyBOT 12316 crores Burimari (Changra Bandha) - BOT 2041 crores Bhomra (Ghojadanga) - BOT 20 crores Tamabil (Oawki) BOT 487 crores GobrakuraKoroitola (Ghasuapara) - BOT 3421 erores

(b) Sonamasjid (Mahadipur) Hilli (HiUi) and Bangia Bandha (Fulbari) Land Ports shyfurther expansion of physical infrastructure is being implemented

(c) Birol Land Port (Radhikapur) - Land acquisition completed

(d) Bilonia (Belonia) - Land acquisition in progress

(e) Ramgarh (Sabroom) - Declared a Land Port

(v) Meeting of the Subgroup on LCS infrastructure

Both sides agreed to visit the LCS Land Ports along Bangladesh - West Bengal border at a mutually convenient date in October 2013

(vi) Operationalisation of Oemagiri-Thegamukh LCS

The formation of a Joint Expert Group to examine issues relating to operationalisation of the LCS is under examination by both sides

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(vii) Motor Vehicles Agreement

Indian side sought to know the status of the revised Indian draft of the Agreement for the Regulation of Passenger and Cargo Vehicular Traffic shared with the Bangladesh side in May 2013

Bangladesh side informed that the draft is under examination

Indian side also proposed that cargo trucks at Petra pole Benapole LCS may be allowed to move beyond the presently approved (SOP) 200 meters into each others territory

Both sides agreed to refer it to the next meeting of bilateral Joint Group on Customs

(viii) Rail Connectivity

Indian side stated that to help decongest the land routes alternative connections through rail routes and movement of containerised cargo by rail along with the necessary infrastructure can be explored

Both sides agreed that such issues may be pursued through IGRM

(ix) Construction of bridge over River Feru

Bangladesh side stated that certain suggestions on the DPR received from the Indian side has been communicated to the Indian Government

(x) Coastal shipping

Draft agreement and SOP on Coastal shipping are being examined by both the governments Both sides agreed that such connectivity would help facilitate bilateral trade

15 Other Issues

(i) Bilateral Cooperation Agreement between BIS and BSTI

Both sides agreed to expedite finalisation of the Bilateral Cooperation Agreement proposed between BIS and BSTI

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(ii) Issue of long term Work permit and multiple entry long term Business Visa

Both sides noted with satisfaction that visa regime has been liberalised after the signing of the Revised Travel Arrangements

(iii) Issue of Khamarbari certificates (Import permits)

Indian side requested for clarification regarding the reported delays in issuance of Khamarbari certificates in respect of export of agricultural commodities from India especially Potatoes

Bangladesh side informed that they are not aware of any such delay since at present there are adequate number of Plant Quarantine Stations located in most of the LCSs on IndiamiddotBangladesh border (19 operational and 4 more proposed for construction)

(iv) Technical information for Pest Risk Analysis

Indian side requested that technical information to conduct pest risk analysis for the

commodities which Bangladesh wishes to export to India as per PQ order 2003 with the Indian government to avoid any possible delay at the time of release of consignments


The meeting was held in a very cordial atmosphere

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(ARVIND MEHTA) (MD SHAWKAT ALIWARESI) JOINT SECRETARY JOINT SECRETARY

MINISTRY OF COMMERCE MINISTRY OF COMMERCE AND INDUSTRY GOVERNMENT OF THE PEOPLES

GOVERNMENT OF INDIA REPUBLIC OF BANGLADESH

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ANNEXURE-I

MEMBERS OF BANGLADESH DELEGATION

s No

Na Oesilnatlon

1 Mr Md Shawkat Ali Waresl Joint Secretary Mia Commerce leader 2 Mr Md Ahsan Ullah Executive Director Bangladesh Bank Member 3 Mr Md Hablbur RAhman Khan Minister (Commercial)

Bangladesh HiRh Commission New Delhi Member

4 Mr Md Mokabblr Hossain Deputv Secretarv Mia Commerce Member 5 Mr Tareq Md Arlfullslam Director MIa Foreign Affairs Member 6 Mr Kazi Mostafizur Rahman First Secretarv NBR Member 7 Mr Shah Ahmed Shafl Counsellor (Political)

SHe New Delhi Member

MEMBERS OF INDIAN DELEGATION

s No

Name DHlsnation

l Shri Arvind Mehta Joint Secretary DoC leader 2 Ms Jayashree Mukherjee Vice Chairman iWAI Member 3 Ms l Kharkongor Commissioner amp Secretary (CampI)

Govt of Meghalaya Member

4 Smt indira Murthy Director DoC Member 5 Ms Chandrima Roy Counsellor (Commercial)

HO Dhaka Member

6 Shri M K Saha Director IWAI Member 7 Dr Sandha Kabra Director FSSAI Member 8 Shri Ajit B Chavan Deputy Secretary DoC Member

9 Shri DDK Sharma Add PPA 00 ARriculture Member 10 Shri P Oasgupta Under Secretary DoC Member 11 Ms Smriti Under Secretary

Mlo External Affairs Member

12 Shri US Pandey Under Secretary DoC Member 13 Shri Pradeep Kumar Sharma Under Secretary

Mlo Shipping Member

14 Shri Mudit Kumar OSD (lC)Do Revenue Member 15 Shri Virendra Singh Khaira SE (NER) Mlo RTampH Member 16 Shri Manish Kumar Singh Under Secretary Mo RTampH Member 17 v Surendra Section Officer DoC Member 18 Shri W Warshong Asstt Director (Tech)

Mo Commerce and Industry Govt Meghalaya

Member

19 Ms Pushpinder J Kaur Technical Officer FSSAI Member

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Annexure-II

MINUTES OF THE JOINT BORDER HAA T COMMITTEE MEETING HELD ON 13 JUNE 2013 AT NEW DELHI

The joint Conunittee for Border Haats was held at the level of joint Secretaries to review the Border Haat operations suggest modifications in the operational modalities and propose new locations for Border Haats The following is the discussion summary

1 Border Haats along Tripura-BangIadesh As proposed by India Bangladesh approved in principle the establishment of 4 Border Haats in KamIasagar (farapur Kashba) Srinagar (purbo Madhyagrarn Chhoighoria) Palbasti (West BatuIi) and Karnalpur (Kurrnaghat) Work on KamIasagar and Srinagar is expected to be started soon

The actual layout plan for Palbasti and KarnaIpur Border haats along with relevant border pillar numbers will be shared at the earliest with the Bangladesh side

2 Border Haato along Mizoram-Bangladeoh Bangladesh side informed that the four identified points along the Mizoram border are not viable because there is no habitation even within 10 km of each point Further since these areas are hilly regions Border Haats developed at these points will be inaccessible to the traders on the Bangladesh side

Indian side stated that Bangladesh side may identify and share with the Indian Government any other viable and accessible points for developing Border Haats with respect to this region

3 Border Haats along Meghalya-Bangladeh Indian side proposed 22 more Border Haats along the Meghalaya border and shared the list thereof with the Bangladesh side

Bangladesh side stated that this is under examination and they will revert in due course

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(ARVIND MEHTA) (MD SHAWKATALIWARESI) JOINT SECRETARY JOINT SECRETARY



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Indian side informed that guidelines for import of food items into India are prescribed and regulated by Food Safety Standards Authority of India (FSSAI) [also available at wwwJssaigovin] It has been found that some Government of India mandated test parameters have not been covered by NABL accreditation A copy of the list was handed

over to the Bangladesh side for their information

Indian side further informed that FSSAI is expected to harmonise Indian standards with the International standards within one year However in the meantime all food item

exports conforming to international standards are allowed into India

2 Removal of CVD on RMG

Referring to Government of India notification dated 1 March 2013 exempting excise duty on domestic manufacture of RMGs Bangladesh side requested for withdrawal of CVD on RMGs as it is adversely affecting their exports

Indian side clarified that the optional route of excise duty on RMG products for domestic manufacturers has been restored by this notification

Indian side stated that Government of Bangladesh can take up this issue through the diplomatic channels for consideration by the Indian Ministry of Finance

3 Development of LCS infrastructure

Bangladesh side requested for the stalus of development of leps at Agartala Petrapole Dawki and LCS at Srimantapur

Indian side informed that Agartala ICP is expected to be completed by October 2013 Petrapole by March 2014 land acquisition is under process at Dawki and is likely to be completed by April 2014 Thereafter normal time of completion of this work would be about two years As regards Srimantapuf the latest status will be ascertained from the

Tripura State Government and the Bangladesh side will be informed accordingly

4 Export of electronics and motor-bike through LCS to India

Bangladesh side stated that there are port restrictions on export of electronics and motor

bikes to India along the MeghalayajWest Bengalf AssamjTripura-Bangladesh border They further stated that the quality certification issued by Bangladesh Road Transport Authority (BRTA) is not being accepted by the Indian authorities

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INDIAN ISSUES












































July 203


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15 Other Issues



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15 Other Issues



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15 Other Issues



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Documents

SUMMARY RECORD OF INDIA-BANGLADESH MEETING … · SUMMARY RECORD OF INDIA-BANGLADESH MEETING OF THE JOINT WORKING GROUP ON TRADE HELD ON 13 -14 JUNE ... Bangladesh has imposed ban