New Delhi: India imposed port restrictions on the import of certain products such as readymade garments and processed food from Bangladesh, in response to similar measures imposed by Dhaka. The move announced on Saturday also comes amid a cooling of ties between the two countries since the toppling of Sheikh Hasina's government last year.
Import of fruit, processed food items, cotton and cotton yarn waste, certain plastics and wooden furniture won't be allowed through any Land Customs Stations (LCSes) and Integrated Check Posts (ICPs) in Assam, Meghalaya, Tripura and Mizoram as well as LCS Changrabandha and Fulbari in West Bengal.
The Directorate General of Foreign Trade (DGFT) in a notification said that import of readymade garments from Bangladesh won't be allowed from any land port and would be permitted only through Nhava Sheva and Kolkata sea ports.
The new restrictions come five weeks after India ended a nearly five-year-old arrangement for the transshipment of Bangladeshi export cargo to third countries via Indian airports and ports.
Bangladesh recently imposed restrictions on Indian yarn via land ports, allowing it only through sea ports, even though the former offers the quickest and cheapest access to Dhaka's garment industry. The restrictions are also in response to Dhaka barring entry to certain value-added items from the northeast through land transit points. Indian exports are subjected to rigorous inspection on entry, targeting those commodities that can be locally manufactured, they said.
Bangladesh exports readymade garments worth over $700 million annually to India, 93% of which come in through land ports.
"It has been decided to reciprocate this measure by imposing port restrictions on imports from Bangladesh of readymade garments of all categories across all landports--LCSes and ICPs--permitting imports through Kolkata and Nhava Sheva seaports only, where the mandated inspections will apply," said an official.
The measure is expected to increase the opportunity available to Indian manufacturers to boost production for both local consumption and export.
"Bangladesh cannot cherry pick terms of bilateral engagement solely to benefit itself or take India's market access for granted. India is willing to engage in discussions but it is Dhaka's responsibility to create an environment free of rancour," the official added.
However, the port restriction will not apply to Bangladesh goods transiting through India and destined for Nepal and Bhutan. "The port restrictions do not apply to the import of fish, LPG, edible oil, and crushed stone from Bangladesh," the DGFT said.
Northeast development
There are 11 land transit points in the northeast for trade between India and Bangladesh. Of these, three are in Assam, two in Meghalaya and six in Tripura.
India had previously permitted export of Bangladesh goods through all land trading points and seaports without undue restrictions. However, Bangladesh continued to impose port restrictions on Indian exports at LCSes and ICPs bordering the northeastern region. "India had taken up the issue with Dhaka but there was no positive response," said an official, adding that industrial growth in the northeastern states suffered due to the imposition of unreasonably high and economically unviable transit charges levied by Bangladesh.
Import of fruit, processed food items, cotton and cotton yarn waste, certain plastics and wooden furniture won't be allowed through any Land Customs Stations (LCSes) and Integrated Check Posts (ICPs) in Assam, Meghalaya, Tripura and Mizoram as well as LCS Changrabandha and Fulbari in West Bengal.
The Directorate General of Foreign Trade (DGFT) in a notification said that import of readymade garments from Bangladesh won't be allowed from any land port and would be permitted only through Nhava Sheva and Kolkata sea ports.
The new restrictions come five weeks after India ended a nearly five-year-old arrangement for the transshipment of Bangladeshi export cargo to third countries via Indian airports and ports.
Bangladesh recently imposed restrictions on Indian yarn via land ports, allowing it only through sea ports, even though the former offers the quickest and cheapest access to Dhaka's garment industry. The restrictions are also in response to Dhaka barring entry to certain value-added items from the northeast through land transit points. Indian exports are subjected to rigorous inspection on entry, targeting those commodities that can be locally manufactured, they said.
Bangladesh exports readymade garments worth over $700 million annually to India, 93% of which come in through land ports.
"It has been decided to reciprocate this measure by imposing port restrictions on imports from Bangladesh of readymade garments of all categories across all landports--LCSes and ICPs--permitting imports through Kolkata and Nhava Sheva seaports only, where the mandated inspections will apply," said an official.
The measure is expected to increase the opportunity available to Indian manufacturers to boost production for both local consumption and export.
"Bangladesh cannot cherry pick terms of bilateral engagement solely to benefit itself or take India's market access for granted. India is willing to engage in discussions but it is Dhaka's responsibility to create an environment free of rancour," the official added.
However, the port restriction will not apply to Bangladesh goods transiting through India and destined for Nepal and Bhutan. "The port restrictions do not apply to the import of fish, LPG, edible oil, and crushed stone from Bangladesh," the DGFT said.
Northeast development
There are 11 land transit points in the northeast for trade between India and Bangladesh. Of these, three are in Assam, two in Meghalaya and six in Tripura.
India had previously permitted export of Bangladesh goods through all land trading points and seaports without undue restrictions. However, Bangladesh continued to impose port restrictions on Indian exports at LCSes and ICPs bordering the northeastern region. "India had taken up the issue with Dhaka but there was no positive response," said an official, adding that industrial growth in the northeastern states suffered due to the imposition of unreasonably high and economically unviable transit charges levied by Bangladesh.
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