Trade Policy Updates (From 20th August to 29th August 2018)
1) A recent Indian government’s move to introduce rules of origin in the name of protecting its local garment manufacturers might severely hurt Bangladesh’s export growth to its neighbor.
2) The Indian Government has extended the suspension of the reverse charge mechanism (RCM) on purchase of goods or services by registered dealers from unregistered dealers within the state till September 30 next year.
3) The Goods and Services Tax (GST) on ‘buy one get one’ products, free samples and additional quantities of products may not be taxed anymore, reported The Economic Times.
4) Vietnam’s department of trade defence will start sharing monthly export data to the Eurasian Economic Union (EAEU), consisting of Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan, to help local businesses avoid most favoured nation (MFN) tariffs.
Vietnamese exports to the EAEU includes apparel. Under a free trade agreement (FTA) signed between Vietnam and the EAEU in May 2015, the EAEU committed to eliminating tariffs for up to 9,774 tax lines (90 per cent) for products imported from the former. The FTA came into effect in October 2016.