India Bans Land Import of Bangladesh's Jute, Yarn

India has recently banned the importation of some woven articles and jute products from Bangladesh via land ports. However, in a notification, the Directorate General of Foreign Trade stated that the articles can be imported only via Maharashtra's Nhava Sheva seaport.

The notice informed that Bangladesh's export to Nepal and Bhutan through India would be exempted from the port restrictions.  It further added that the re-export of these products from Nepal and Bhutan to India would also be prohibited.

As per the notification issued by Ajay Bhadoo, director general of foreign trade, the following goods fall under the new port restrictions: flax waste and tow (including yarn waste and garnetted stock); jute and other textile bast fibers, raw or retted; jute (except flax, true hemp, and ramie); single flax yarn; single yarn of jute or of other textile bast fibers; woven fabrics or flax; and unbleached woven fabrics of jute or of other textile bast fibers.

"No Bangladesh border land port can receive imports from Bangladesh.  But only via the Nhava Sheva port it can.  "With effect from immediately, import of some goods from Bangladesh to India is regulated," said the notification.

The action was taken hardly a month after India placed port constraints on the onshore import of specific goods from Bangladesh, such as processed food and readymade clothing.

With the exception of Nepal and Bhutan, India removed the transshipment benefit that it had long provided to Bangladesh for garments exports to the Middle East and Europe on April 9.