Bangladesh: Commerce Ministry, apparel exporters seek exemption from 12% CVD in India

Trade & Policy

Bangladesh: Commerce Ministry, apparel exporters seek exemption from 12% CVD in India

Even as Bangladesh’s apparel exports enjoy duty-free access to India, the 12% countervailing duty (CVD) imposed by the Indian government is hurting trade.

The CVD is equal to excise duty imposed on a like product manufactured in India. It is implemented under the Section 3 (1) of the Indian Custom Tariff Act. Three months ago, the Indian customs department withdrew excise duty of 12% on Indian garment manufacturers, but the countervailing duty still remains.

To resolve the issue, Commerce Secretary Mahbub Ahmed will meet the Indian finance and commerce secretaries on September 11, 2013 to seek exemption from CVD for Bangladeshi garment exporters. Also on the agenda is acceptance of standard certification by Bangladesh Standards and Testing Institution (BSTI) for textile products from Bangladesh.

Besides, a delegation of Bangladeshi exporters and businessmen will meet Indian importers on September 13 in Mumbai, when they will urge Indian importers to take measures for withdrawal of the countervailing duty, according to the Bangladesh commerce ministry sources. Bangladesh is currently India’s biggest trading partner among the SAARC countries.