Cabinet gives nod to DFQF facility

KATHMANDU:

The Ministry of Commerce and Supplies (MoCS) is preparing to write a letter to its Chinese counterpart to sign an agreement on the Duty Free Quota Free (DFQF) facility on an additional 199 products following the Cabinet’s approval to utilise the facility extended by the northern neighbour.

China recently expanded the DFQF facility for least developed countries (LDCs), including Nepal. All the LDCs that have diplomatic relations with China can enjoy this facility.

“China has already been providing DFQF access to 7,831 products under its DFQF scheme introduced in 2011,” said Deepak Subedi, spokesperson of MoCS, adding, “The formal agreement with China for access of the additional goods will be signed soon at the convenience of both the countries.”

Secretary of MoCS and Chinese ambassador to Nepal will sign the pact.

After the agreement is signed, Nepal will enjoy DFQF access for 8,030 products, according to Subedi. “The products enjoying DFQF with China are handknit woollen carpets, handknit clothing, pashmina, citrus fruits and agro products.”

With the addition of more products in the DFQF facility, the northern neighbour also increased the product coverage to 97 per cent of all tariff lines in accordance with provisions of the Hong Kong Ministerial Declaration.

Nepal has not been able to reap the benefits from this facility due to non-tariff and para-tariff barriers of trade such as quarantine, sanitary and phyto-sanitary measures, labelling, grading and other standards set by the northern neighbour, according to former commerce secretary Purusottam Ojha.

Source: THT