Govt allows duty-free import of veg, fruits from Dhaka

Ahead of Prime Minister Manmohan Singh's visit to Bangladesh, India, in a goodwill gesture, has allowed zero duty import of vegetables, spices and garments from the neighbouring country, with immediate effect.

However, Bangladesh exporters would enjoy the duty concession only if they dispatch the goods through the land route from Balat-Kalaichar region in Meghalaya for sale in Border Haats.

Besides, their is a ceiling on quantity of the imports under the scheme.

"(Duty concession will not) apply to goods having an estimated total value of $50, brought into India from such border haat by a person during a day," the revenue department said.

India has also removed customs duty on import of minor local forest produce, cottage industry items and small agriculture equipments like plough, axe, spade and chisel.

Some other items like processed food items, fruit juice and melamine products have been exempted from import duty.

Leadership of the two countries have been taking steps to to promote trade and economic cooperation.

External Affairs Minister S M Krishna recently visited Bangladesh.

The Prime Minister is also scheduled to visit Bangladesh in September with an aim to improve bilateral ties. It would be first visit by an Indian Prime Minister to Bangladesh in 12 years.

Apart from the latest customs duty concessions, India has also offered a tariff-free import of 10 million pieces of apparel from its eastern neighbour.