Nepal imported 9,000 tonnes of betel nuts in 1st 6 months of FY

KAKADVITTA, JAN 17 -

The government’s effort to discourage betel nut imports by increasing customs duty and valuation has failed to yield positive results.

Instead, the imports have surged in such a way that the import volume in the first six months of this fiscal year through Mechi customs has already surpassed that for the whole last fiscal year.

Betel nuts worth over Rs 600 million were imported in the review period — up from last year’s total import of Rs 529.4 million, according to the customs office.
As local consumption is low, almost all the imported betel nuts are re-exported
to India as original Nepali products.

The customs office’s record shows the import volume has been increasing massively in the last three years.

The country imported 3,802 tonnes of betel nuts in 2011-12, which increased to 7,930 tonnes in 2012-13.

The import volume has reached more than 9,000 tonnes as of the sixth month of this fiscal year.

The government has increased the customs valuation of betel nuts to $750 per tonne from $450 dollar. The rate of customs duty has also been increased to 30 percent from 20 percent.  However, the government’s move doesn’t seem to have worked.

Mechi Customs Office Chief Mukti Pandey said despite heavy rise in valuation, betel nut imports have not decreased, instead, it has increased notably.

The revenue collected from betel nuts import makes a huge contribution to the Mechi Customs Office.

The office collects Rs 200-300 million annually on an average from betel nuts alone.

"Based on the current trend of import, the office’s revenue target is likely to be met only from betel nuts,” said a customs office source.

For the first time, the UCPN (Maoist)-led government had banned the illegal import of betel nuts two years ago.

Earlier, the product used to be smuggled in collusion with the police. The smuggling, which came down to almost nil after Deputy Inspector General of Police (DIG) Surendra Bahadur Shah took charge of the eastern region, is now continuing unabated.

For the past few years, a few influential traders of Jhapa and Morang are re-exporting betel nuts imported from third countries to India by tagging them as original Nepali products.

They have also formed a company named Nepal Supari Bikas Samsthan.
Following a complaint filed against the company at the Commission for Investigation of Abuse of Authority (CIAA), export of betel nuts was banned until the probe is completed.

However, the ban was lifted, coinciding with the appointment of Lok Man Singh Karki as CIAA chief.

Upon the recommendation of Nepal Supari Bikas Samsthan, the District Chamber of Commerce and Industry issues the certificate of origin to betel nuts imported from third countries, confirming them as local products. The Samsthan charges a certain fee for the recommendation.

The betel nuts imported through Mechi customs point are exported to India through Biratnagar Customs Office as only the latter has authority to export betel nuts.

(Source: The Kathmandu Post)