India grants duty-free access to 40 Bangladeshi tariff lines

The two countries agreed to expand duty-free market access for specific Bangladeshi products and streamline customs procedures to facilitate trade.

Who it concerns: The agreement involves the Government of India and the Government of Bangladesh, specifically their Commerce Secretaries. It affects the textile and export sectors (specifically 16 categories of products), customs officials, and the Government of West Bengal regarding tax issues.

What was agreed

• India agreed to provide immediate duty-free access to 40 tariff lines (six-digit HS level) corresponding to 16 categories of Bangladeshi products.
• India committed to discussing duty-free access for the remaining requested tariff lines at the earliest opportunity.
• India agreed to take up the issue of the luxury tax imposed by the Government of West Bengal with that state government.
• Both sides agreed to streamline customs and administrative procedures and form a joint group of customs officials to meet as early as possible.
• Bangladesh agreed to take up the issue of restoring the land route for Indian exports of cotton yarn and sugar with the National Board of Revenue.

Also in the document

• India committed to immediate duty-free access for 40 specific tariff lines of Bangladeshi goods.
• The statement highlights a request by Bangladesh for duty-free access to 25 categories (191 tariff lines), of which India immediately granted 16 categories (40 tariff lines).
• The issue of the luxury tax in West Bengal was raised as a non-tariff barrier affecting Bangladeshi exports.