News India Live, Digital Desk:The relations between India and Pakistan have deteriorated after the Pahalgam terror attack , Nevertheless, Indian companies are continuing sending their goods to Pakistan. Despite the ban on direct trade between the two countries, these companies have found a new way. These companies are using ports of third countries to deliver goods to Pakistan.
Trade restriction after attack
26 people were killed in a terrorist attack in Pahalgam in Kashmir, after which India and Pakistan took strict action against each other. Trade between the two countries is almost closed. However, according to data from Global Trade Research Initiative (GTRI), Indian goods are reaching Pakistan for sale even after terrorist attacks. According to GTRI, goods worth more than $ 10 billion from India are sent by third route. For this, traders have started using the ports of Dubai, Singapore and Colombo to avoid business restrictions.
What is in the GTRI report?
GTRI The report said that despite trade obstacles, Indian goods are reaching Pakistan by these routes. The report said, “GTRI estimates that India sends goods worth more than $ 10 billion every year from this route.” This means that large amounts of business is not directly, but indirectly.
Exporters are adopting a new approach
GTRI explained how exporters are adopting new methods. Indian companies send their goods to these ports. There, another company takes these goods and stores them in the bonded warehouse. Banded warehouse is a place where goods can be kept tax-free, as they are still considered in transit.
In this bonded warehouse, the labels and documents on the goods are replaced. For example, the goods made in India have a ‘Made in UAE’ label. After this, these goods are sent to Pakistan, where direct trade with India is banned.
Companies avoid investigation
In this way, companies survive the ban on trade between India and Pakistan. They sell their goods from the third route at a higher price and do not come to anyone, because it seems that business is being done from another country. For example, a company sends auto parts worth $ 100,000 from India. Then, the label was changed to UAE. After this, these goods are sold in Pakistan for $ 1,30,000. Increased costs include storage, documentation and the cost of reaching the closed market.
Is this method legal?
The report states that this transmission model is not completely illegal, but it is somewhat suspicious in the purview of law. This shows how companies are looking for new ways to continue business.
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