Country to raise issue of pending LoEs during IGC meeting

KATHMANDU:

The government is preparing to raise the issue of pending Letters of Exchange (LoEs) of crucial agreements with India during the commerce secretary level talks, also known as Inter-governmental Committee (IGC) meeting scheduled for next month in India. There are six LoEs of trade and transit agreements that have been pending since long.

The pending LoEs are for operationalisation of rail transit through Singhabad to Rohanpur, simplification in modality of traffic movement between Nepal and Bangladesh through Kakarvitta to Banglabandha, amendment to treaty of transit for the movement of traffic from/to Visakhapatnam port to Nepal (by road/by rail), and traffic in transit via Nepal to India, according to Jib Raj Koirala, joint secretary of the Ministry of Commerce and Supplies (MoCS).

Likewise, LoE on Process Simplification and Additional Routes, which is for bulk cargo movement from two additional routes — Kolkata-Nautanwa (Bhairahawa) and Kolkata-Jogbani (Biratnagar) — are yet to be finalised as India only agreed to allow ferrying fertilisers through proposed routes. But Nepal has requested for facility to ferry any bulk cargo like coal, cement and iron ore through the proposed routes.

As Nepal has more or less agreed to affixation of additional one-time lock (AOTL) on cargo containers by the Indian customs for the movement of Indian trucks/containers through its land route, authorities expect that the LoE for railway service agreement (RSA) will also be concluded. The LoE of RSA was pending due to Nepal’s reservation on AOTL.

Similarly, LoE on amendment to treaty of transit for the movement of traffic from/to Visakhapatnam port to Nepal (by road/by rail), which would allow the country to transport goods from Visakhapatnam port using road and rail services, has also been pending since long. Authorities of both sides tried to exchange the letters on the operationalisation of Visakhapatnam port during the visit of Indian Premier Narendra Modi. However, it has been shelved again as they failed to conclude it.

The government of India had principally agreed to allow Nepal-bound cargo to use Visakhapatnam port in 2009 during then Prime Minister Madhav Kumar Nepal’s visit to India but the procedural works to bring that agreement into effect is yet to be finalised.

LoE on operationalisation of rail transit through Singhabad to Rohanpur would pave the way to use the Rohanpur-Singhabad rail transit route as well as the Phulbari-Banglabandha over Indian territory.

Apart from the pending LoEs, Nepal will raise the issue of the hassles on exporting medicinal herbs to India due to the high levy enforced by the states. Compulsion of registration of the brand at the Tea Board of India prior to exporting tea, and the quarantine hassles for exporting agro products would also be discussed.

Likewise, IGC meeting would seek a solution on opening letter of exchange (L/C) from India based subsidiaries of multinational companies to import goods for their Nepali distributors.

SOurce: THT