New Delhi has proposed signing a memorandum of understanding with Dhaka soon for duty-free import of eight million pieces of readymade garments from Bangladesh annually apart from India’s most recent zero-duty offer for poorer SAARC nations, including Bangladesh. Officials concerned of government agencies have, however, insisted on a few amendments to the proposed MoU to bring more clarity and specifications in implementation process of duty-free facility under tariff-rate quota of the South Asian Free Trade Area.

The Indian offer is said to have entailed ‘too much discretional authority’ of the customs authorities in defining the product category of apparel items while entering the Indian market. There is also no clear timeframe except the word ‘immediately’ mentioned in the draft for certification of each consignment by a textile committee in India. Another requirement for Bangladeshi exporters to give advance information about export much before the consignment can arise as a hindrance to implementation of the facility, observed an earlier meeting of the Tariff Commission. Dhaka also wants to see revision of the memorandum in every two years so that the changes can be accommodated.

Sources in the Indian High Commission in Dhaka claimed that New Delhi was serious to ‘make happen’ the proposed duty-free import of eight million pieces of apparel items from Bangladesh to build more confidence in Indo-Bangla bilateral relations. Garment and a number of items of Bangladesh’s export basket are currently restricted for export to Indian market in accordance with a sensitive list New Delhi prepared like other SAARC member states.

An official concerned of the Indian high commission past week wrote a letter requesting the Bangladesh authorities to make quick arrangement for signing the memorandum after Dhaka in the previous month showed its interest in cashing in on the Indian offer to import Bangladeshi garments duty-free. Dhaka is still hesitant in signing the memorandum for availing of opportunity to export eight million pieces of apparel items — a quantum which some Bangladeshi exporters reportedly considered to be small in terms of their global businesses — especially after the Indian prime minister, Manmohan Singh, early April announced duty-free and quota-free facilities for the least developed countries in the South Asian Association for Regional Cooperation.

An inter-ministry meeting with the stakeholders scheduled to be held on May 17 is expected to finalise Bangladesh’s position on the draft memorandum as the last exercise before its singing, provided the Indian authorities agree to changes, said officials concerned. Earlier Dhaka took almost five months in responding to the Indian proposal for signing the memorandum, because of, what officials claimed, political turmoil and changeover in power. When asked about the tariff-rate quota, the Bangladesh Knitwear Manufacturers and Exporters Association president, AKM Fazlul Haque, welcomed the initiative and said Dhaka should pursue for whatever more it could gain from Delhi in ensuring access of Bangladeshi products to the Indian market.