BD Police calls for not taking counter steps

Bangladesh Police, a state law-enforcement agency, has urged the government not to take any counter-step against India's recent restrictions on the entry of some items from the former.

Although Bangladesh has already taken a counter- measure after cancelation of transshipment facility by India for Bangladesh's export cargoes to third countries via its land ports, including air routes, it has suggested resolving the issue soon through bilateral discussion between the two governments.

But, the agency has identified high and medium types of risks due to the restrictions.

The agency fears that limiting the country's export route to the neighbouring nation will decrease export earnings, which will lay an impact on the local foreign currency reserve.

It also fears that smuggling including informal trades will increase between the borders of the two states.

The agency has recently sent an intelligent report to Finance Adviser Dr Salehuddin Ahmed, requesting for taking proper steps through the authorities concerned.

The report has already been forwarded to the commerce ministry, which has taken necessary steps and is also working on the issue relentlessly.

On April 8 this year, India cancelled the transshipment facility for Bangladesh's export cargoes to third countries via its land ports, including air routes.

After that, Bangladesh's National Board of Revenue (NBR) banned the import of yarn from India through all land ports.

Second time, India on May 17 imposed port restrictions on the import of certain goods, including readymade garments (RMG) and processed food items, from Bangladesh by the Directorate General of Foreign Trade (DGFT).

And third time, on June 30 last, the neighbouring state imposed a ban on import of nine types of products from Bangladesh via land ports. The announcement was made through a notification issued by India's DGFT.

Currently, India's exports to Bangladesh are much more than its imports.

The total bilateral trade between Bangladesh and India was approximately $14 billion in the fiscal year 2023-24, with India having a trade surplus of $9-10 billion.

After the fall of the Sheikh Hasina regime, bilateral relations between the two neighboring countries are not up to the mark due to different issues, including transhipment, transit, minority rights, etc.

The national law enforcing agency has also advised that diplomatic steps be taken to pause the imposition temporally so that the exporters can send their items to India with the former facility.

Experts say India may take different countermeasures in the future if Bangladesh takes any countermeasures against India's tariff barriers.

They are not in favour of counter steps against India. They believe that the neighbouring country may create an unstable situation in the Bangladeshi market by imposing new restrictions on the export of these products including rice, wheat, onions, spices, sugar, fruits, oil, electricity etc.

A sources concerned thinks the ban on the import of ready-made garments (all HS codes of Ready Made Garments) from Bangladesh to India by land routes except through India's Novo Sewa and Kolkata seaports will create obstacles in exports to India and the cost of exports will increase significantly.

The intelligent report said a good number of such small exporters in particular will be more affected by this ban.

It mentioned if this continues, their factories will be closed. In addition, the exporting companies produce lungis and from their small textile factories in various parts of the country. The majority of the workers in these textile factories are women.

An exporter explained due to India's ban, Bangladesh's goods will now have to be shipped using the Kolkata and Mumbai sea ports. As a result, both time and cost will increase significantly. Goods could be shipped anywhere in India in one to six days through land ports. Sending these goods through the alternative route (by sea) would take 15 to 30 days. Using the Kolkata port would take 15 days. This would increase the cost two to three times compared to land ports.

Because of the closure of land ports, exporters will have to travel longer distances to ship goods to various destinations in India, which will disrupt export of agricultural and processed food products and increase the risk of product spoilage, he said, adding that as the time and cost of importing goods (Bangladesh's exports) through legal channels increases, informal trade and smuggling will increase on the borders of both countries.

The Bangladesh Police has suggested finding alternative markets for importing essential goods to prevent sudden prices hike and destabilising the market, taking necessary measures, including increasing the number of BGB patrols, to prevent informal trade and smuggling on the border.

When contacted, a senior official of the commerce ministry said Bangladesh has recently requested the Indian authorities to fix date for holding the commerce secretary level meeting

He added trade talks between Bangladesh and India remain stalled for a couple of years, despite frequent reminders from the former's side, mainly due to a lack of positive response from the Indian side.

Besides, Commerce Adviser SK Bashir Uddin wrote to the Indian higher authorities to resolve the recent different types of restrictions.

Recently, New Delhi has claimed that India's exports to Bangladesh are facing challenges due to non-tariff barriers. Indian authorities concerned through Bangladesh High Commission in New lodged the claim and sought necessary steps to look into the issue, an official document revealed.

Contacted, a high official said any tariff barriers currently does not exist regarding Bangladesh's goods export to India, but they are facing various non-tariff barriers, including anti-dumping duties, product quality certification, inadequate port infrastructure, land and sea connectivity restrictions, etc.

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