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Indian and Bangla business leaders trade charges

The Indian customs linger the clearing process even by a month, claiming they need to seek clarification from the central government in New Delhi, they alleged at a meeting with Indian counterparts at the office of the Federation of the Bangladesh Chambers of Commerce and Industry (FBCCI) in Dhaka. At the meeting leaders of both Federation of Bangladesh Chambers of Commerce and Industry and their counterparts from the Federation of Indian Export Organisation (FIEO) traded allegations and counter allegations. The FIEO leaders, mainly from India's northeastern region also alleged that they had to bear extra expenses as cargo trucks from India had to wait 2-3 days to pass through the land ports. Acting FBCCI president Kamaluddin Ahmed led the Bangladesh side while FIEO chairman SK Jain headed the Indian businessmen.

The FIEO delegation arrived Friday on a six-day visit to Bangladesh. FIEO leaders also raised banking problems that few Bangladeshi banks did not proceed import payments against LC commitments causing huge losses to their exporters. But Bangladeshi businessmen explained that those might have taken place due to discrepancies in consignments or documentation.

They also pointed out that they had been also facing from Indian side tariff, para-tariff and non-tariff barriers on Bangladeshi exports. "Indian customs try to show us high court, Supreme Court when a Bangladeshi consignment reaches their yard, FBCCI director Mohammed Abdul Wahed complained at the meeting." He said local exporters are used to hear that the Indian customs require permission from Kolkata or even from Delhi to clear the exports from Bangladesh.

The Indian side cites various causes simply to discourage exports from Bangladesh, Wahed said and expressed frustration over the unwillingness of the bigger trading partners to solve the bilateral trade problems. "We have long been assuming from the Indian side that they will solve the problems. I doubt, whether they would be removed in my lifetime, said Md Delwar Hossain, another director of the apex trade body.

About import payments, former president of Dhaka Chamber of Commerce and Industry MH Rahman said Bangladesh has got a very transparent practice of international trade and it strictly follows UCPDC 500 regulation for making payment against documentary credit. Kamaluddin Ahmed pointed out that there could be payment problems for not complying with the terms and conditions.

Perhaps goods were not exported as per commitment or there were documentation problems, he added. Kamal also cited a case where a consignment from India was recorded at the Indian customs but the same skipped at the Bangladesh Customs, resulting in non-payment. However, at the end of a lively debate, both sides stressed the need for working together to solve the problems with the FBCCI and FIEO as the facilitator to improve bilateral trade relations.