• The Directorate General of Foreign Trade (DGFT) imposed port restrictions on the import of certain goods, such as readymade garments and processed food items, from Bangladesh, in response to similar curbs placed by Dhaka on certain Indian products.

• According to a notification of the DGFT, these port restrictions will not apply to Bangladeshi goods transiting through India but destined for Nepal and Bhutan.

• The order said that readymade garments imports from Bangladesh will not be allowed from any land port. However, it is allowed only through Nhava Sheva and Kolkata seaports.

• Bangladesh exports over $700 million worth of readymade garments annually to India. 

• For fruits; fruit flavoured and carbonated drinks; processed food items (baked goods, snacks, chips and confectionary); cotton and cotton yarn waste; plastic and PVC finished goods, dyes, plasticisers and granules; and wooden furniture, the notification said the inbound shipments from the neighbouring country shall not be allowed through any LCSs (Land Customs Stations) and ICPs (Integrated Check Posts) in Assam, Meghalaya, Tripura and Mizoram; and LCS Changrabandha and Fulbari, in West Bengal.

• These port restrictions do not apply to the import of fish, LPG, edible oil, and crushed stone from Bangladesh.

Deteriorating relations

• On April 9, India withdrew the transhipment facility it had granted to Bangladesh for exporting various items to the Middle East, Europe and various other countries except Nepal and Bhutan.

• It was announced against the backdrop of the controversial statement made by the head of Bangladesh’s interim government Muhammad Yunus in China recently that India’s seven northeastern states, which share a nearly 1,600 km border with Bangladesh, are landlocked and have no way to reach the ocean except through his country.

• The comments did not go down well in New Delhi. It also drew sharp reactions from political leaders in India across party lines.

• Indian exporters, mainly from the apparel sector, had also earlier urged the government to withdraw this facility to the neighbouring country.

• Bangladesh recently imposed curbs on export of Indian yarn via land ports allowing Indian yarns only through seaports.

• Further, rice exports from India were not allowed through Benapole ICP from April 15, adding to existing restrictions.

Directorate General of Foreign Trade (DGFT)

• Directorate General of Foreign Trade (DGFT) is an attached office of the Ministry of Commerce and Industry. 

• Right from its inception till 1991, when liberalisation in the economic policies of the government took place, DGFT has been essentially involved in the regulation and promotion of foreign trade.

• Keeping in line with policies of liberalisation and globalisation and the overall objective of increasing exports, DGFT has been assigned the role of a “facilitator”. The transition has been from prohibition and control of imports/exports towards promotion and facilitation of exports/imports, keeping in view the interests of the country.

• This Directorate, with headquarters at New Delhi, is headed by the Director General of Foreign Trade.

• It assists the government in formulation of Foreign Trade Policy (FTP) and is responsible for implementing the Policy and schemes under FTP with the main objective of promoting India’s exports. 

• Further, it is responsible for implementation of Foreign Trade (Development and Regulation) Act, 1992 and Rules and Regulations notified thereunder. 

• The DGFT also issues authorisations to exporters and monitors their corresponding obligations through a network of 24 regional offices.

(The author is a trainer for Civil Services aspirants.)