This was stated at a discussion on 'Facilitating and promoting trade between Bangladesh and Northeast India' held on Sunday at the conference room of the Bangladesh Enterprise Institute (BEI).

Besides, speakers said mandatory standard requirements for some products and alternative duties on readymade garments are also some non-tariff barriers imposed by India.

"While some steps have been taken to resolve the first two matters, the third issue still remains unresolved," Mostafa Abid Khan, deputy chief of the Bangladesh Tariff Commission, said in a keynote speech presented at the meeting.

He said it is noteworthy that before March 2000, duty levied on readymade garment was ad valorem in nature at the rate of 40 percent and at the same time India granted 50-60 percent tariff concessions.

Tariff concessions on readymade garment encouraged Indian importers to import low cost Bangladeshi shirts, he said, adding an annual order was placed by an Indian importer on monthly basis beginning from January 2000.

However, since April 2000, India has changed the nature of customs duty on readymade garments by converting it into an alternative duty, which implies that duty amount payable on each shirt will be 40 percent of invoice value or 185 rupees, whichever is higher, he noted.

The change raised the cost of the product and compelled the importer to cancel its order, he said, adding the issue remained unresolved although four years have passed.

The seminar jointly organised by the BEI and the South Asia Enterprise Development Facility (SEDF) was also addressed by Minister (Economic and Commerce) of the Indian High Commission RR Dash, SEDF General Manager Anil Sinha, President of Tripura Chamber of Commerce and Industry ML Debnath, Secretary of the Northeast Chamber of Commerce and Industry, India, Dilip Kumar Sarma and Reefat Zaman and Marlon Legama of the SEDF with BEI President Faruq Sobhan in the chair.

RR Dash hoped that the implementation of the South Asian Free Trade Agreement (Safta) would resolve all the trade-related distortions in the region, calling on all the parties to work expeditiously for its implementation.

ML Debnath stressed the need for expanding trade between Bangladesh and the northeastern part of India and said the problems impeding the expansion of trade should be addressed.