February 27, 2007	Tuesday	Safar 9, 1428

ISLAMABAD, Feb 26: Pakistan on Monday handed over a copy of the non-paper on tariff, non-tariff and para-tariff barriers, restricting flow of border trade with neighbouring countries, to India.

Commerce Minister Humayun Akhtar Khan gave the copy to Indian Commerce Minister Kamal Nath at the sidelines of the Safta Ministerial Conference held in Khatmandu. Secretary Commerce Syed Asif Shah released the copy of the report to media at a press conference here on Monday.

The 30-page report titled “an overview of trade policy of India on trade in goods” elaborates in detail tariff, non-tariff and para tariff barriers put in place in the trade regime of India, which restricted market access for Saarc countries, including Pakistan.

According to the report regarding textile sector, only the ad valorem component was reduced to 12.5 per cent in the last year Indian budget, the specific component wherever applicable, remained unchanged. This means that there was no reduction in this sector.

Under the para-tariffs -- border charges and fees other than tariff -- countervailing duty is levied on similar articles produced or manufactured in the country, special duty at a rate of 4 per cent was imposed on all imported goods including agriculture and farm products since last year.

National calamity duty (NCD) is applied to tobacco products, motor spirit, polyester filament yarn, motor vehicles and two-wheelers, additional excise duty on (textile and textile articles) and the commodity cess are also levied as additional duty, the rate of which varied in numbers.

The education cess at the rate of two per cent of the aggregate duty of customs and excise was levied on all imports. All these levies are not imposed on domestic production and are definitely para-tariff.

According to the report, rampant non-tariff barriers constitute a hallmark of Indian trade regime. Even during the 1990, India had started liberalising its trade regime, quantitative restrictions on import of agriculture and stringent import license procedures on a large number of textile and industrial production remained entrenched with full force.

The Indian main non-tariff barriers include — agriculture permits, phyto-sanitary certificates, Indian standard of quality, licensing requirement for import of vehicles, textile specific barriers, health and safety regulations, and tariff quotas etc.

Pakistan is in a position to market its textiles in India but the strict conditions laid down under Textile (Consumer Protection) Regulation of 1988) are a major barrier. These include producer identification and production composition, the colour and even the form, size and colour of letters and signs.

The rules and regulations regarding food items are very complicated, which provide enormous power to the customs authorities to detain and even completely stop imports on minor infringements of rules and procedures.

Inter provincial movement of goods was another major hurdle in trade. In India each state has it own set of rules, regulations, and levies and further inspection on border crossing. Dispute based on these disparities could result in more costs both in terms of time and money.