The News reported that cement exporters have identified various non tariff barriers erected by the Indian authorities that deny them fair opportunity to exploit the actual potential of the Indian markets.
The non tariff barriers include delays in granting certification from the Bureau of Indian Standards, restriction on cement exports via train and trucks and the cumbersome process of obtaining marketing permits in India.
The Trade Development Authority of Pakistan has distributed a questionnaire for the identification of Non Tariff Barriers to various trade bodies asking them to give details of the problems that they face in exporting their goods to India.
This questionnaire was distributed in light of the recently concluded trade negotiations between Commerce Secretaries of India and Pakistan held at Islamabad on Aril 27 to 28 where both side agreed that it was important to remove NTBs to promote bilateral trade.
The cement manufacturers that have submitted answers in this regard stated that they were required to obtain certification from the Bureau of Indian Standards, which was a very cumbersome process. They pointed out that the certification takes from 3 weeks to as long as 6 months. And the certification cost is PKR 60,000 per grade of cement which was valid for one year marketing only.
Moreover the practice seems Pakistan specific as far a renewal of this marketing certificate was concerned. They said licenses for marketing that expired in December 2010 were kept on hold for renewal till March 2011 this year due to delay in arrival of surveillance team from India.
Cement exporters said that four cement units were omitted from surveillance due to undisclosed reasons, adversely affecting the volume of trade. Payment of PKR 25,000 per grade to the surveillance team was an unjust expense.
Another non trade barrier by India was the refusal of the Indian railways authorities to interchange the loaded wagons. They said that specific packaging requirement and special printing of BIS marked on packing was yet another way to create hurdles in exports that increases the compliance cost on packing to PKR 400 per ton.
Cement exporters also complain that the Indians do not allow export of cement from Wagah border through trucks. They pointed out that Indians bring in many of their goods on trucks through Wagah border but do not allow Pakistani trucks to bring cement through that border. They further pointed out that the Indian railways do not make interchange of trains regularly restricting exports from the only route that was available at Wagah.
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