The Hindu Business Line : Move to set up trade dispute redressal body with Bangla

THE Federation of Indian Export Organisations (FIEO), Eastern Region, in close collaboration with the Dhaka Chamber of Commerce and Industry (DCCI), is planning to create a joint Dispute Redressal System for addressing trade issues which affect security of export cargo at the various land customs border points with Bangladesh.

Talking to Business Line here, Mr Prakash Thaker, immediate past Regional Chairman of the Federation, who led a large FIEO business team to Bangladesh recently for buyer-seller meets (BSMs) and informal trade discussions with the various trade bodies of that country, said the DCCI, responding to the proposal by the federation, has already initiated the process, and will soon be sending a concrete proposal to FIEO for setting up such a body, which would broadly function as a trade monitoring organisation, with adequate representation of senior customs officials from both sides.

Stressing on the urgent need to set up such a body, Mr Thaker said for small exporters of both nations to take the various commercial disputes for arbitration to ICC, Paris every time was an expensive and time-consuming affair. Once the proposal for setting up the body was thoroughly vetted and a decision taken at the appropriate levels, an MoU was likely to be signed between DCCI and FIEO to formalise the arrangement. He confirmed that the modalities are being worked out, and hopefully, by end March, the mechanism should be in place.

He said detailed discussions were also held with Member, Customs, Bangladesh National Board of Revenue, Mr Ali Ahmed, on the cumbersome pre-shipment inspection (PSI) procedures applicable for exports to Bangladesh. He said indications were given by Mr Ahmed that a closer look was now being given to phasing out of the PSI procedures, by end March. Commodities exported from India to Bangladesh are now subjected to a thorough PSI programme, to check the quantity, quality, HS Code and price of the commodities (in dollar terms).

Certification by the designated authority is ostensibly aimed at ensuring that prices being certified by the authority reflects the true transaction value of goods, based on which the Bangladesh Customs collects import duties. Exporters often complain of consignment delays on account of the PSI procedures. The valuation norms are based on GATT Valuation Rules, and procedures have been laid down by the Bangladesh National Board of Revenue.

According to Mr Thaker, Mr Ahmed agreed that streamlining of procedures was necessary for smooth trade relations between the two countries.

Describing the buyer-seller meets as successful, Mr T.K. Chattopadhyay, Deputy Director-General, FIEO, ER, also a part of the team, said useful talks were also held with the important chambers such as DCCI and Metropolitan Chamber and Chittagong Chamber on many emerging trade issues, including the problems faced by Indian exporters at the North East border points with Bangladesh. The issue of allowing yarn exports through the land ports has also been taken up.

He said the issue of high incidence of import duties, especially for exports through North-East points such as Dawki which witness huge consignments of coal, were also discussed.

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