Freight forwarders show concern about central bank move
KATHMANDU:
Central bank aims at systematising purchases made by tourists by issuing Advance Payment Certificates (APC).
However, the freight forwarders are discontent with the provision calling it restrictive.
The local exporters can issue Advance Payment Certificates to the tourist up to foreign exchange equivalent to $5,000 for the sales made and then make the delivery of the purchases, according to Nepal Rastra Bank (NRB) Foreign Exchange Management Department.
“It will facilitate both the tourists and exporter that are carrying cash in their purchases, along with making the purchase more systematic,” said spokesperson for the central bank, Bhaskar Mani Gyanwali. “The new circular targets at bringing in the exports through the tourist inside the export procedure.”
However, cargo entrepreneurs do not agree with the central bank’s view on the matter. According to them this provision will contract the purchasing power of the tourists to less than $5,000.
“The central bank has created restriction on export destination by the tourist and amount they spend on shopping,” said former president of Nepal Freight Forwarders Association B K Shrestha.
“The circular has created restriction on export destination by the tourist and amount they spend on shopping,” he said, calling the directive impractical for trying to control the purchasing capacity of tourists.
Earlier tourists were able to export goods purchased to different destinations through cargo agents while the freight charge were paid post delivery and collection of the goods.
“Whereas now exporters are required to pay the cargo agents in cash before the delivery of goods,” said Shrestha.
“The circular issued by the central bank is completely complicated and has tried to restrict purchasing capacity of the tourists,” said managing director of Air Link Nepal Rajendra Poudyal.
The central bank has refuted the allegations saying that the cargo entrepreneurs have misunderstood the directives as NRB has not put the cap on the purchase by the tourists.
“The regulation does not prevent the tourists from buying more than $5,000 worth, it only states the tourists need to declare the amount of cash they are carrying if it is more than or equivalent to $5,000 to the immigration officer or customs officer while entering Nepal,” said NRB’s spokesperson.
“Tourists can spend as much as they want — even millions of dollars — there is no restriction,” he said, adding that they do not even need to declare anything anywhere, if they use credit cards to pay for their purchases.
Source: THT
Central bank aims at systematising purchases made by tourists by issuing Advance Payment Certificates (APC).
However, the freight forwarders are discontent with the provision calling it restrictive.
The local exporters can issue Advance Payment Certificates to the tourist up to foreign exchange equivalent to $5,000 for the sales made and then make the delivery of the purchases, according to Nepal Rastra Bank (NRB) Foreign Exchange Management Department.
“It will facilitate both the tourists and exporter that are carrying cash in their purchases, along with making the purchase more systematic,” said spokesperson for the central bank, Bhaskar Mani Gyanwali. “The new circular targets at bringing in the exports through the tourist inside the export procedure.”
However, cargo entrepreneurs do not agree with the central bank’s view on the matter. According to them this provision will contract the purchasing power of the tourists to less than $5,000.
“The central bank has created restriction on export destination by the tourist and amount they spend on shopping,” said former president of Nepal Freight Forwarders Association B K Shrestha.
“The circular has created restriction on export destination by the tourist and amount they spend on shopping,” he said, calling the directive impractical for trying to control the purchasing capacity of tourists.
Earlier tourists were able to export goods purchased to different destinations through cargo agents while the freight charge were paid post delivery and collection of the goods.
“Whereas now exporters are required to pay the cargo agents in cash before the delivery of goods,” said Shrestha.
“The circular issued by the central bank is completely complicated and has tried to restrict purchasing capacity of the tourists,” said managing director of Air Link Nepal Rajendra Poudyal.
The central bank has refuted the allegations saying that the cargo entrepreneurs have misunderstood the directives as NRB has not put the cap on the purchase by the tourists.
“The regulation does not prevent the tourists from buying more than $5,000 worth, it only states the tourists need to declare the amount of cash they are carrying if it is more than or equivalent to $5,000 to the immigration officer or customs officer while entering Nepal,” said NRB’s spokesperson.
“Tourists can spend as much as they want — even millions of dollars — there is no restriction,” he said, adding that they do not even need to declare anything anywhere, if they use credit cards to pay for their purchases.
Source: THT
