FinMin for developing customs as facilitating centres to boost trade

KATHMANDU, JAN 27 -

Finance Minister Shankar Prasad Koirala has stressed on the need for developing customs as facilitating centres for promoting trade.

He said customs offices have to improve services through administrative reform and modernisation of the system to promote trade. “There is a need for speeding up customs clearance procedures to promote trade simplification,” said Koirala addressing the 62nd International Customs Day here on Sunday.

Stakeholders at the programme urged the government to develop customs offices as autonomous government bodies in order to have effective border management, including the control of illegal trading.

They asked the government to promote the offices for simplifying trade rather than just collecting revenue.

Although the government is taking measure to enhance customs administration, customs offices still lack minimum infrastructure like testing labs, database management, post customs clearance mechanism and skilled manpower. As a result, the government has failed to control illegal trade along border areas.

Finance Secretary Shanta Raj Subedi underscored the need for developing customs offices into separate autono-mous bodies. He said the ministry has prepared a draft on forming a separate customs board. “If a separate customs board is implemented, the customs administration will be more efficient, helping generate more revenue.”

With customs duty contributing around 40 percent to the government revenue, Sub-edi stressed on raising the contribution by monitoring small customs, capacity building of customs officials, improvement of the database system and cross-check of shipments after the issuance of customs clearance.

With an aim to improve customs procedures, the government recently enforced a four-year customs reform and modernisation strategy and work plan. The strategy aims at simplifying customs clearance procedures, reducing paperwork and recommending the government on enforcing an effective mechanism for border management.

Rajan Khanal, joint secretary at the ministry, said effective communication is one of the main factors contributing to efficiency of customs offices. “Present day customs offices should not limit their work to providing clearance, they should also work for border management,” he said.

Krishna Hari Baskota, secretary at the Prime Minister’s Office, stressed on the need for providing incentives to customs officials, managing a separate customs police unit and forming a separate department to cross-check after customs clearance issuance. “A separate, powerful agency, which could inspect customs clearance issued by even high-ranking officials, could help reduce the inflow of smuggled goods,” he said.

The private sector has identified under invoicing, inappropriate customs valuation and multiple checking of imported goods at difference customs check points, among others, as the main hurdles for trade simplification.

“In order to remove these hurdles, the current customs directive has to be implemented at all customs check points,” said Bhaskar Raj Rajkarnikar, senior vice-president of the Federation of Nepalese Chamber of Commerce and Industry. He demanded a revision of rates of short customs declaration which the government recently increased to up to Rs 1,000 from Rs 100.

The Customs Department said it is committed to facilitating trade simplification and controlling illegal cross-border trading. “For the purpose, the department has focused on implementing the autonomous system along with developing necessary infrastructures,” said Surya Prasad Acharya, director general at the department.

Meanwhile, the department on Sunday launched an interactive web portal. It can be accessed on the department’s website http://www.customs.gov.np.

Source: The Kathmandu Post