Nepal, India formalise Transit Treaty amendment

KATHMANDU, FEB 02 -

Nepal and India have formalised an amendment to the Export Procedure in the Transit Treaty, enabling re-export of goods from Nepal to third countries through India.

The two sides finalised the letter of exchange to formalise this amendment which was agreed during the Inter-Governmental Committee (IGC) meeting held in Kathm-andu in December 2013.

Nepali government officials and the Indian Embassy in Kathmandu said goods of non-Nepali origin will be allowed export to third countries through India. “This provision would facilitate Nepal’s genuine third country export which may be required for re-export of goods imported in to Nepal for display in fairs and exhibitions,” read an Indian embassy statement. “The am-endment would also facilitate re-export of third country origin capital goods from Nepal to third countries for repair and return and also re-export of rejected goods from Nepal.”

The amendment was necessary as the earlier procedure only allowed goods of Nepali origin to be exported through India to third countries.

Ministry of Commerce and Supplies Joint-secretary Jib Raj Koirala said Nepal had been unable to send machineries for repair and maintenance due to the previous provision, which has now been resolved.

According to the Indian embassy, the amendment to the treaty will also facilitate Nepali business as it will allow re-export of goods imported from third countries after some value addition. “This change would also facilitate movement of diplomatic cargo exported from Nepal and transiting through India,” said the embassy.

Two sides are yet to finalize two other important trade facilitation measures which were discussed in the IGC meeting. The measures are allowing Nepali importers to drive vehicles imported from third countries through Indian roads to Nepal and facilitating the import of bulk cargo into Nepal through the operationalization of multimodal transport link from the Kolkata port through Jogbani-Biratnagar and Sunauli-Bhairahawa land routes.

The embassy said the Indian government has finalised proposals for making these amendments to the Transit Treaty and shared through the Indian Embassy in Kathmandu with the Nepal government.

Koirala said that two proposals are under consideration of Nepal and they were holding discussions on the modality and wording of the proposal. “The Cabinet will have to take a decision first, which will be done shortly.”

Source: The Kathmandu Post