Businesses fail to avail duty free facility of China

KATHMANDU, APR 02: 

Despite zero tariff treatment to Nepali products, Nepal has a huge trade deficit with China. Nepal had a trade deficit of more than Rs 62 billion with China in 2010–11. Total exports during 2010-11 was worth Rs 1.78 billion and imports worth Rs 64.66 billion.

According to Nepali traders, though China has granted duty free facility for 4810 Nepali products, Nepali businesses have not been able to enjoy the facility.

“Businesses that have been fulfilling the necessary criteria have been easily availing the facility while exporting their products to China,” said joint secretary at the Ministry of Commerce and Supplies Naindra Prasad Upadhyaya. However, those who have failed to meet the criteria are not eligible to get duty free access to China.

“There is a system to avail duty free facility,” said Upadhyaya and informed that those products which come under the ‘4810 products’ for duty free access should be a national product. 

“Producers of such goods should be able to provide all the necessary documents including total value addition made and obtain a certificate of origin from the Federation of Nepalese Chambers of Commerce and Industry (FNCCI),” he said and further added that until a product meets the required criteria and receives a certificate of origin, it will not be eligible for the duty free facility. China has granted duty free access to 4810 commodities from least developed countries and Nepal is among them. According to FNCCI, products such as herbs, leather goods, brass and carpets have already taken their certificates of origin and the products also have a good demand in the Chinese market.

Most of the goods identified for the duty free facility are agriculture products, ceramics, jewelleries, etc. Earlier there used to be 10–35 per cent charge on various products exported to China.

Source: THT