DoC puts temporary ban on imports of Indian paper

BIRGUNJ, NOV 26 -

The Department of Customs ( DoC ) has temporarily stopped clearing paper imported from India after finding out difference in valuation of same quantity of paper at different customs offices.

The department’s decision is intended at curbing the practice of undervaluation of imported paper, according a DoC official. While Birgunj Customs office is charging a customs duty of Rs 45 per kg on the imported paper, other customs offices are charging just Rs 32 per kg.

The DoC official said that the department had been probing the matter inspecting customs clearance documents on imported paper from several customs offices.  The department’s move has, however, put traders in dilemma, as they have been clearing the customs in bail.

Manohar Mul, chairman of the Papers Traders Association (PTA), said that for the past two months the traders had been importing papers in bail on the basis of reference price. “We are confused over the rate at which the paper be sold in market,” he said, adding that it had led to decrease in paper imports.

J K Company, which used to import some 16 trucks of paper monthly in the past, has scaled down its import down to around 7 trucks now. “We have already imported 15 trucks of paper in bail so far,” Pramod Kabara of the company said, “The bail amount has already shot up to hundreds of thousands of rupees.”

Traders blamed the under invoicing practiced by some traders in bordering areas as the cause of the problem. “Under invoicing is impossible without the involvement of customs officials,” said a trader.

But Mul maintains that importing paper in bail will leave traders with unnecessary hassles. “This will directly hit the consumers,” he said.

Ram Hari Aryal, the customs chief, said that his office had already initiated home work to bring uniformity in customs rate. Despite there is a mechanism at the DoC for keeping the valuation rate same, such difference of valuation was identified.

Customs officials said that the termination of DRP had led to the practice of under invoicing  imported goods under the AIE 1 system. “There was no problem in importing paper under the DRP system,” said a customs official.

Following suspicion of under invoicing, the PTA has requested the DoC to impose the minimum price of Rs 38 as the base rate.  “We have recommended action against traders importing the papers in less than the set rate,” said Mul.

Source: The Kathmandu Post