Nepal-China sign 14-point pact

SINDHUPALCHOWK, OCT 26 -
 
Customs officials of Nepal and China have signed a 14-point agreement with a commitment to stop smuggling of gold through the Tatopani customs point and promotion of businesses that are beneficial to both the countries.

As Nepali traders have been using TT and draft for importing most the goods from China, the two sides have also agreed to promote the use of Letters of Credit (LC) as the principle mechanism for imports.

The decision of promoting LC was taken to reduce revenue leakages. China has also agreed to support exports from Nepal by giving due recognition to Nepal’s quarantine system at the border. China has so far not been confident about the quarantine facilities on the Nepali side of border.

Both the parties signed the agreement on the last day of the 26th Nepal-China Custom Officials meet between the officials of Lhasa and Nepal. The meeting took place in Dhulikhel, Kavrepalan-chowk.

The agreement was signed by Damodar Regmi, deputy director general at the Department of Customs, from Nepal’s side and Liu Jiang, deputy chief of Lhasa customs office who is also the director of anti-smuggling department of the Chinese customs office.

“The event has produced good results and China has pledged to implement the agreement soon,” said Regmi.  

Nepal also asked the Chinese side to clear goods on which China has provided duty free access.

“As we have been failing to increase exports to the northern neighbour despite getting duty free access to many products, we sought more clarification on the matter,” said Regmi.

Both the sides have also agreed to exchange information to curb smuggling of gold and other goods. “Gold smuggling has direct impact on business activities at the border point,” said Mimamsha Adhikari, head at the Tatopani customs. “That’s why we sought China’s commitment in the agreement.”

Moreover, new working hours will be determined to facilitate officials at the both ends. Currently, the Tatopani custom office closes up at

5:00 pm, the Chinese office in Khasa closes at 3:00 pm. This means Nepal has been bearing a two-hour loss every day.

Also, the two sides have agreed to develop the Kerung customs office in Rasuwa. China has been asking Nepal to develop the Kerung customs office for some time now. China has even started physical infrastructural development in that area.

Source: The Kathmandu Post