DHAKA, 6 November 2004 — In a symbolic gesture of good will toward its smaller neighbor Bangladesh, the new Congress-led government in Delhi has issued a gazette notification giving immediate effect to the withdrawal of anti-dumping duty on import of lead-acid batteries from Bangladesh.
Officials of the Commerce Ministry said in Dhaka yesterday, New Delhi in a pragmatic, albeit belated move, has removed the anti-dumping duty on lead acid batteries which was in force over the last three years putting a virtual stop to its import by India.
As Dhaka has been exempted from anti-dumping duty and now enjoying concessional duty under South Asian Free Trade Area (SAFTA) framework as one of the least developed countries in the SAARC region, the Indian government will impose only 8 percent duty on batteries from Bangladesh.
The normal Indian government duty on import of lead-acid batteries is currently 20 percent. The anti-dumping duty is something over this percentage point, the official sources in Dhaka said.
It will give a boost to Bangladesh’s business in the Indian market, said a source. The battery issue was at the center of a big trade dispute between the two countries and Dhaka even moved to take the issue to the WTO arbitration court in Geneva. Preparations were afoot when the Indian trade minister intervened into the matter with a view to mitigating the long-standing problem.
