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Delhi has sought waiver of duty on the import of some fruits, especially grape, as Indian exporters face a setback due to complexity in opening letters of credit (LCs) by Bangladeshi importers, sources said.
The Indian embassy in Dhaka has sent a note verbale or a diplomatic note to the foreign ministry, requesting it to raise the issue with the authorities concerned.
Import duty on Indian grapes to Bangladesh has witnessed a year-on-year increase from Tk 32 per kg to Tk 64, according to the Indian note.
For higher duty, Indian exporters are facing challenges in exporting grapes for having difficulty in opening LCs in Bangladesh, reads the note.
In December 2022, the high commission requested the commerce ministry to reduce assessment value on the import of apples from India.
Bangladesh increased the value of Kashmiri apple by an estimated 40 per cent, a high official said.
"We've received a note verbale on duty on grape and are currently scrutinising the issue," said an official.
On 24 May 2022, the revenue board slapped a 20-per cent duty on the import of 130 items like fruits, cosmetics, flowers and furniture, terming them luxury items.
On July 04, the central bank issued a notification imposing 100-per cent cash LC margin on the import of different luxury products, including fruits.
The volume of grape exported to Bangladesh from the neighbouring country was close to 89,000 tonnes in 2022, according to statista.com.
An estimated 12,000 tonnes of apple are exported to Bangladesh annually, according to the Department of Horticulture Planning and Marketing of India.