Bangladesh asks India to grant zero-tariff market access for garments

During her upcoming visit to India, Bangladeshi Prime Minister Hasina may propose to India to lift restrictions on the quantity of Bangladeshi garment exports to India and grant zero-tariff market access. Currently, India has set a limit of 8 million pieces of Bangladeshi ready-made garments to enter India with zero tariff every year. However, when Bangladeshi exporters export ready-made garments to India, India also charges an 18% surtax including education tax and value-added tax. In addition, Indian customs does not accept the certificate of origin under the SAARC Free Trade Agreement issued by the Bangladesh Export Promotion Center and does not comply with the rules set by the regional agreement. In fact, Bangladesh’s export of ready-made garments to India does not receive the preferential treatment promised by India.