Challenges and Calls for Reform: Nepal Overseas Exporters Association Advocates for Customs Policy Changes

The Nepal Overseas Exporters Association has called for the removal of the recently introduced evaluation database used by customs offices. President Binod Kumar Sethia expressed concerns about the legitimacy of the World Trade Organization's guidance, stating that it could facilitate fraud and foreign exchange embezzlement. Sethia emphasized the need for customs policy and leadership stability, raising questions about achieving prosperity amid political instability. He highlighted issues such as pending re-evaluation files, blocked funds in the private sector, and additional expenses on businessmen.

Sethia urged the maintenance of a 10-digit harmonic system code for goods classification, an end to changing classifications for revenue collection purposes, and simplified rules for returning bail amounts. He criticized the lack of coordination between ministries and distrust among government agencies, proposing customs duties on the unit of imported goods to combat under-invoicing and protect the domestic industry. Sethia also suggested incentivizing air cargo through discounted customs duties to boost traffic at international airports.

While acknowledging improvements in the customs sector, Sethia pointed out challenges, including high customs rates promoting a parallel economy. Vice Chairman Jayant Agarwal highlighted issues with the 8-digit harmonic system code. Secretary Krishna Hari Pushkar committed to addressing raised concerns promptly, and Vice President of Nepal Industry Confederation, Amit More, called for increased goods through the green channel, reduced customs clearance time, and a trusted trader system.

Other stakeholders, including representatives from the Ministry of Finance, Federation of Nepal Chamber of Commerce and Industry, Federation of Nepalese Industries and Commerce, Internal Revenue Department, and Customs Department, expressed commitments to addressing issues, reforming policies, and ensuring transparent trade practices. Director General of the Customs Department, Shobhakant Paudel, acknowledged the need for clean and transparent trade, emphasizing continuous discussion for problem-solving and a positive approach to policy reforms.