# **3.5. Market Access Issues**

While tariff concessions have been offered under SAPTA and SAFTA, there would be greater benefit in addressing non-tariff and para-tariff barriers in both countries. In this paper, while the primary concern is Bangladeshi exports to India, a few examples of non-tariff and para-tariff barriers in both countries are discussed below.<sup>38</sup> One, India requires permitted risk analysis of agricultural imports in biosecurity and sanitary & phytosanitary categories, and this has turned out to be a complex process lacking transparency. It covers about 600 items with the aim of protecting ―human, animal or plant life or health‖. Nearly all livestock, agricultural, and food imports require sanitary or phytosanitary (SPS) certificates and import permits from India‘s Ministry of Agriculture.

Two, the Indian Food Adulteration (Prevention) Act 1954 requires the shelf life of processed foods to be not less than 60 percent of the original shelf life at the time of import. While this objective is fine, the process of determining shelf life is often arbitrary and non-transparent. India‘s Prevention of Food Adulteration Rules, 1955, are complicated. Just one rule, number 32, has 30 provisions with further subprovisions. It also cross-references other rules prescribing content, size and design of labels, display-panel specifications, details of colors and flavors, trade names, and so on. No certificate from the country of origin is accepted. The results of laboratory tests cannot be challenged. Separate regulations exist for various food types.

Three, to export textile and textile products to India, exporters must obtain a pre-shipment inspection certificate from a textile testing laboratory accredited to the National Accreditation Agency of the country of origin. Non-availability of the certificate requires testing from the notified agencies in India for each and every consignment. In some cases, even certificates issued by EU-accredited labs have been rejected by Indian customs authorities and such consignments are subject to repeat tests in India. In addition, the Textile (consumer protection) Regulation of 1988 imposes strict marking requirements for yarns, fibers, and fabrics imported into India.

Four, exporters of jute products to India must have certificates from the exporting country providing it does not contain more than 3 percent, by weight, of non-homogenate hydrocarbon (jute batching oil). Jute bags/sacks require special labeling, and each bag/sack must carry machine-stitched marking of the country of origin.

Bangladesh also imposes several NTBs and supplementary duties on Indian exports. Some of them are as follows<sup>39</sup> : One, Bangladesh has imposed over 60 percent supplementary duty on import of plastics from India.

Two, Bangladesh still maintains 225 items in its sensitive list in terms of trade with India, covering machinery, pharmaceuticals, textiles, etc.

Other issues brought up by the Commerce Secretary level discussion held on 28-29 March 2012 include the cases of port restrictions in both countries. Not all Indian ports can accept cargoes from Bangladesh. There are also port restrictions imposed by Bangladesh on Indian exports. For example, port restrictions

> 38 Sourced from Raihan (2011).

> 39 Summary record of India-Bangladesh Commerce Secretary level discussions held at New Delhi on 28-29 March, 2012.  Available at http://commerce.nic.in/WhatsNew/IndiaBangladeshTalk.pdf

19