Insights
- India has curbed imports of RMG and other goods from Bangladesh through land ports, especially those in Meghalaya, Assam, Tripura and Mizoram, as well as through Phulbari and Changrabandha in West Bengal.
- Starting May 17, it has limited the entry of Bangladesh RMG products to only Kolkata and Nhava Sheva seaports.
- Import of cotton and cotton yarn waste shall also not be allowed via any land port.
India’s Directorate General of Foreign Trade (DGFT) has decided to curb imports of readymade garments (RMG) and other consumer goods from Bangladesh through land ports, especially those situated in the northeastern states of Meghalaya, Assam, Tripura and Mizoram, as well as through Phulbari and Changrabandha in West Bengal.
Beginning May 17, India has limited the entry of Bangladesh’s RMG products to just two seaports—Kolkata and Nhava Sheva ports.
Import of cotton and cotton yarn waste shall also not be allowed through any land port.
The restriction will not apply to goods from Bangladesh transiting through India that are specifically destined for Nepal and Bhutan, a DGFT notification said.
The port restrictions, however, do not apply to the import of fish, liquefied petroleum gas, edible oil and crushed stone from Bangladesh.
The decision is reportedly in response to Dhaka imposing similar trade barriers on Indian yarn and rice, as well as raising inspection of all Indian goods.
Truckers and workers at border logistics hubs will be affected by the order. The decision will hit Bangladesh with a $770 million bill, amounting to nearly 42 per cent of bilateral imports, according to an analysis by think tank Global Trade Research Initiative (GTRI).
According to GTRI, India’s latest trade restrictions are far from arbitrary. “The restrictions look like India’s response to Dhaka restricting imports from India on a large number of items and diplomatic pivot towards China,” the GTRI noted in its analysis.
Source: https://www.fibre2fashion.com/