Indian Joint Secretary for Commerce Arvind Mehta said Pakistan and India have finalised three agreements to remove Non-Tariff Barriers (NTBs) presently billed as obstruction for Pakistani exports to India. Indian joint secretary, who was heading a high-level five-member delegation of Indian regulators, was speaking at Lahore Chamber of Commerce and Industry (LCCI) here on Thursday. He said these agreements are expected to be signed during the upcoming visit by the Indian commerce minister next month.
These agreements are the customs cooperation agreement, to avoid arbitrary stoppages of goods at each other’s ports; mutual recognition agreement for acceptance of certificates of internationally accredited laboratories; and redressal of grievances agreement in case of any disagreement. He said both the sides have also finalised a very liberal visa regime that would be in place as soon as the cabinets in the two countries grant approval. He said the peak tariff line in India for Pakistan is eight per cent that is going to be curtailed to five per cent by year end.
Speaking about cement export to India, Mehta clarified that NTBs considered to be the major hurdle were not Pakistan specific rather the delay in the clearance was only due to poor infrastructure on both sides of the border. He pointed out that on the Indian side, a big customs complex with the cost of $30 million is being built that would be operational in three months. It would enable the customs authorities on both sides to handle 800 trucks daily.
Meanwhile, the representative of Indian customs Mr Ready ensured Pakistani businessmen that the new automatic custom system will enhance the efficiency and transparency and the trade consignments from Pakistan to India would be expedited. He acknowledged that the major problem between the two countries is lack of institutional and communication framework. To overcome this problem, India is working on a three tier solution i.e. daily or local problems at Wagha Attari border would be handled at their own level, one meeting between the custom collectors of both the countries at least once in two months and one meeting of ministerial level regarding policy matters would be held in every six months.
Speaking on the occasion, LCCI President Irfan Qaiser Sheikh said Non-Tariff Barriers are hindering meaningful improvement in Pakistan-India trade relations and must be removed. He said there are a number of challenges relating to Indian standards and quality parameters which also vary from city to city. Pakistani exporters spend considerable time and money to obtain certain certifications and fulfill clearance requirements. He said multiple conditions have to be met at the clearance stage, which include obtaining agricultural permits, phytosanitary certificates and Indian quality standards. There are also various licensing requirements for import of vehicles, textile specific barriers and health and safety regulations. LCCI president said presently Indian and Pakistani customs authorities are not accepting lab reports and quality control certificates of consignments conducted by custom labs of both the countries. It is requested that custom authorities on both sides should accept the lab reports and quality control certificates provided by exporters and importer of each country as Pakistan and India have same environment and standards.
Irfan Qaiser Sheikh said previously, Pakistani authorities were accommodating approximately 150 trucks of Indian consignments on daily basis. Now the volume of Pakistani exports to India has increased and touched up to 150 trucks per day. Whereas presently Indian Customs authorities are clearing only 100 Pakistani trucks daily. It is requested that Indian custom authorities should make all efforts to clear at least 150 Pakistani trucks going to India.
He said under the protocol signed by both the governments, Indian and Pakistani custom authorities only allow 10 wheeler trucks and hydraulic dumpers for moving goods. This restriction is causing unnecessary delays in offloading and clearance of consignments. Often, Pakistani trucks come back without off-loading due to non-availability of labour on the Indian side. This is causing them huge losses in the shape of extra transportation charges. We believe that 12 and 14 wheeler trucks should also be allowed to cross border. Indian authorities should ensure that labour force for offloading Pakistani consignments is readily available in their customs yard.
He urged upon the need to continue to work closely in exploring all avenues to improve bilateral trade. I cannot emphasise enough that government-to-government and business-to-business exchanges are critical for achieving the objectives of enhanced economic and trade ties between the two countries.
Earlier, Indian regulators, including customs, bureau of Indian standards, food safety and standards authority of India and export inspection council apprised the Pakistani businessmen of customs procedures, regulations, standards and certification requirements for entering into the Indian market.
This Indian regulators visit is the follow up of the 5th and 6th round of commerce secretary-level talks held in April and November 2011, respectively. During the 5th round of commerce secretary-level talks, the issue of NTBs faced by the business community of Pakistan in the Indian trade regime was taken up with the Indian side.
