Changes in DRP confuse traders on both sides

KATHMANDU, MAR 26: 

Ambiguity in the changed system of Duty Refund Procedure (DRP) among both Nepali and Indian traders has been posing problems in implementing DRP.

The refund of excise duty has been the subject of conflict between Indian exporters and Nepali importers, said secretary at the Ministry of Commerce and Supplies Lal Mani Joshi. “But, problems have been created because some traders from both sides are yet to be clear regarding the new provision.”

Some exporters in India have been issuing invoices by including the amount of excise duty levied by the Indian government to sell goods in the Indian territory, said Joshi. “But, exporters should not include excise duty for goods sold to Nepali traders.” 

The ambiguity and dilemma among traders has created problems at customs points of both countries. “Principally, traders should not pay excise duty in two different countries,” said deputy director general at the Department of Customs Laxman Aryal.

“But, some Nepali traders and importers are facing problems since the beginning of March because Indian traders are still adding excise duty on goods to be exported to Nepal.”

Department of Customs has been clearing goods from customs points by keeping collateral, he said. “But, it is not a long term solution.” The price of goods will be dearer if importers pay excise duty in two countries, according to him. 

The ministry is trying to solve the problem among traders of both sides, according to secretary Joshi. The Indian embassy in Nepal has pledged to solve the problem if Nepali traders report hurdles through the ministry, he said. 

Ministry of Commerce and Supplies has already written to its Indian counterpart to resolve the current dilemma being faced by Nepali traders, he added. “The ministry has asked all traders to report to the concerned government body if they face any problem.”

Source: THT