Handicraft exporters demand simplified export documentation

KATHMANDU, SEP 24 -

Handicraft exporters have urged the government to simplify the documentation process for the export of handmade products mainly to India and China.

Due to lengthy, complicated documentation procedures, traders are facing difficulties while exporting their products, they said.

Nepal exported handicrafts worth Rs 4.36 billion in 2012-13. The exports to China and India amounted to Rs 136.94 million and Rs 61.13 million, respectively.

“Due to the lack of information with customs officials about the HS Code, a harmonising numeric symbol of handmade products, exporters have failed to receive incentives being provided in importing countries,” said Swayambhu Ratna Tuladhar, proprietor of Yak & Yeti Handicrafts. The code is provided by the Customs Department to the exporters.

Besides the US and European countries, India and China are providing zero customs facility to Nepali handicrafts , provided they are supported by relevant documents.

India has waived customs duty on certain Nepali handicraft products. China has also been providing zero duty access to almost all Nepali handmade products. “However, a number of exporters have failed to receive the benefits due to the lack of adequate documents,” said Tuladhar at an interaction organised by the Federation of Handicraft Associations of Nepal (FHAN) here on Monday.

Traders said many new, customised handicrafts are being manufactured and exported as per the demand of importers. “However, traders face problems in receiving the Certificate of Origin (CoO) and HS Code for such products,” he said.

“There is a lot of confusion among customs officials and exporters regarding the categorisation of handicraft products and issuance of the HS Code,” said Sushil Prasad Sharma, an official at Customs Department. Sharma said the use of HS Code could help promote export even to countries like the US and European countries.

Traders said they are also facing hassles in customs offices while bring back unsold goods after participating in trade fairs abroad. “Traders have to undergo lengthy customs process while they bring back unsold products from the trade fair,” said Priya Darshan Sharma, senior advisor in FNCCI.

According to the exporters, lack of banking access in the countries like China has also hit the handicrafts business. “Due to the lack of banking facilities, traders are compelled to bring cash, but customs officials often create problems citing unlawful possession of foreign currency,” they said.

Jib Raj Koirala, joint-secretary at the Commerce Department, said the government was holding talks with Chinese authorities to set up a banking channel in Tibet to facilitate the business.

Resham Pokharel, general secretary at the Export Council of Nepal, said the current provision of issuing the CoO only to handicraft manufacturers has affected exports. “If there is a provision to issue the CoO also to handicrafts exporters, it could boost the exports,” Pokharel said.

Source: The Kathmandu Post