Govt okays export of third-country goods

KATHMANDU:

The government has endorsed a decision to allow exports of goods imported by Nepal from third countries to countries other than India via Indian transit routes.

An understanding in this regard was reached during the Nepal-India commerce secretary-level talks held in Kathmandu from December 21-22. “As per understanding reached during the secretary-level meeting, we had prepared Letter of Exchange (LoE) on the matter, which has already been endorsed by the Cabinet,” a senior official of the Ministry of Commerce and Supplies (MoCS) told The Himalayan Times.

The LoE, with the government’s seal, was forwarded to the Ministry of Foreign Affairs yesterday. “The ministry will hopefully send the letter to the Indian Embassy in Kathmandu soon,” the official informed.

Once the Indian government signs the LoE approved by Nepal, third country goods imported by Nepal can be exported back to third countries via Indian transit routes. This effectively means goods, say airplane engine, imported by Nepal from, say, the US, can be sold to a company in, say, a European country, and use India as a transit route to export it.

Although Nepal had not received this facility before, the Indian government used to let such goods

pass through its territory based on goodwill. However, from mid-June last year Indian officials started confiscating such goods, which created tension among some Nepali exporters.

“We hope India will sign the LoE on movement of traffic in transit carrying third country goods via Indian transit routes at the earliest so that third country goods exported from Nepal are not obstructed,” the official said.

While the MoCS is expecting early endorsement of LoE on exports of third country goods, it is also

trying to expedite the process of allowing Nepali traders to import vehicles from third countries by driving them from Haldiya port in Kolkata. An understanding in this regard was also reached during the two-day commerce secretary-level talks held in December.

“As per the understanding, we are preparing a draft of LoE on it by holding discussions with the Department of Commerce, Ministry of Finance, Ministry of Foreign Affairs, Ministry of Law and Justice, and Nepal Intermodal Transport Development Board,” the MoCS official said.

Once the LoE is signed, Nepali traders, whose consignments of vehicles have arrived at Kolkata port, can drive them to Nepal instead of ferrying them in wagons or containers as in present. This is expected to lower transportation cost for vehicle importers, which will ultimately bring down prices of cars imported from countries other than India.

“We hope to finalise the LoE on it within a month after which it will be forwarded to India,” the official said.

Source: THT