A recurring cost of credit rating?

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: We are confused about trading with Pakistan. We manufacture polished granite slabs tiles. Can we export them to Pakistan? We want to import Onex stone from Pakistan. Is that allowed? We hear that trade between India and Pakistan is mainly through unofficial channels. Could you please also tell us the best way to enter the Pakistani market?
—Sethuraman, Vijya Grantites (P) Ltd, Bangalore

According to the latest Import Policy Order, 2005, only 770 items can be imported into Pakistan from India. However, there is no such restriction from India’s side. India has already extended Most Favoured Nation (MFN) Status to Pakistan as to all WTO members. Any thing that could be imported into India from any other country, is allowed from Pakistan as well.

In your case, polished granite slabs and tiles can be exported from India to Pakistan (as per the list item Sl no 656, HSN 6802.2300, Import Policy Order, 2005). Another good news is that your item also figures under the Sapta (Saarc Preferential Trade Arrangement) list and would get 10% concession on import duty in Pakistan. You can freely import Onex stone from there.

Trade experts suggest that while the official trade between the countries is worth $200 million, the unofficial trade, including both smuggling and through third countries, is around $1.5-2 billion. It is estimated that if restrictions are lifted, the potential for annual bilateral trade is to the tune of $6-8 billion.

Because of hostile bilateral relations and restrictive visa policies of the two countries, not many businessmen venture into each other’s markets. There are not many platforms where buyers and sellers from the two countries can interact. However, Ficci, along with the Federation of Pakistan Chambers of Commerce, is organising a ‘Made in India’ exhibition from 10-16 November in Lahore this year. Such an exhibition has not been organised in either of the two countries before. You can have more details from http://www.ficci.com.

Newspaper reports inform us that Sidbi has started a credit rating agency for SSIs. Some private agencies offering credit rating services have also approached us. They claim that they will arrange subsidy from NSIC. What is the correct picture? According to you, which is the best agency in India for credit rating?
—PK Godalia through email