Indian traders are complaining that letters of credit (L/Cs) for exports to Bangladesh are not being honoured.

The complaints appear to be an offshoot of anger and frustration amongst traders on both sides of the Indo-Bangladeshi border over problems associated with excessive delays at a land custom station (LCS), pilfering and unresponsive financial institutions.

Bangledeshi complaints

Bangladeshi traders allege that Indian customs officers at the Chengrabandha LCS on the border with India are being uncooperative.

They are threatening that if things do not improve, they will look to use a different LCS.

Trade fair

The traders issued this threat at a session for traders from both sides of the border held during the Bangladesh trade fair held in Siliguri, the fast growing commercial nerve centre of the Indian state of West Bengal.

The deputy high commissioner of Bangladesh, Mohammad Imran, also attended the meeting.

Indian complaints

Officials of the Federation of Indian Exporters' Organisation, meanwhile, articulated the Indian exporters' grievances, according to local media.

"Letters of credit, which serve as the basis of trade between the two countries are often getting dishonoured in Bangladesh. Neither are banks in Bangladesh forthcoming on the matter," one official allegedly said, according to a report in one of India's oldest newspapers, The Statesman.

The officials also alleged that goods were being pilfered once they had crossed the border into Bangladesh according to the report.

Investigations

The deputy high commissioner from Bangladesh apparently took note of the allegations and assured the meeting he would look into the points raised.

He also said he would try to find ways to promote better coordination between the customs departments of both countries, financial institutions and traders.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.