Is zero import duty for Bangladesh a threat for
The Directorate of Revenue Intelligence (DRI) has raised its
doubts over Indian import of garments from Bangladesh.
Currently, Bangladesh is allowed certain concessions on duty under a
free-trade pact and it is possible that other countries are
leveraging this in order to import their goods into India.
To stop this from happening, the DRI has instructed the customs wing
to cautiously examine the origin certificates issued for
such consignments by Bangladeshi trade bodies.
“There is concern over growing cheap imports from third countries
via Bangladesh. The agency wants to ensure that only Bangladeshi
origin imports are permitted the concessions,”said a Government
Earlier this month, the DRI had issued a show cause notice to Future
Enterprises on 83 garment assignments that were routed through
Bangladesh but were originally imported from a third country.
Many countries have been taking undue advantage and hence, the
customs department has been alerted and will keep a close watch on
all garment imports under the South Asian Free Trade Pact.
The South Asian Free Trade Agreement mandates 30 per cent local
value addition in least developed countries for import by other
nations.“Such imports using the FTA route without any value addition
not only defeat the whole objective of the agreement but also hurt
the ‘Make in India’ initiative,” commented the Government official.
India has been faced with similar issues earlier with the
India-Thailand FTA regarding gold jewellery import and the India-Asean
accord with regard to consumer durables imports.