Nepal urges India to remove CVD, CENVAT
KATHMANDU, August 3:
Minister for Commerce and Supplies (MoCS) Sunil Bahadur Thapa has urged his Indian Counterpart Nirmala Sitharaman to remove countervailing duty (CVD) and CENVAT -- central excise duty -- imposed on Nepali goods.
Speaking to media persons upon his arrival at Tribhuvan International Airport (TIA) after his five-day India visit, Thapa said he also met with Indian finance minister Arun Jaitley, railway minister Sadananda Gowda and officials of Federation of Indian Chambers of Commerce and Industry (FICCI) and Confederation of Indian Industries (CII).
Minister Thapa also said his meeting with the Indian finance minister centered on the removal of central excise duty and countervailing duty on Nepali products. Similarly, the meeting with the railway minister focused on the pending letter of exchange (LoE) for railway agreement.
In 2011, Nepal and India agreed in principle to make amendment to railway agreement which ensures operationlization of Visakhapatnam port for Nepal´s third country trade, rail transit facility from Singhabad to Rohanpur for boosting trade with Bangladesh.
India has been imposing countervailing duty on Nepali export products like readymade garments (RMG), yarn, copper, vegetable ghee and zinc oxide, among others.
Minister Thapa has also urged India to remove 6.5 percent CENVAT imposed on Nepali exports to India. India´s state governments collect CENVAT and submit to central government. CENVAT is levied by Excise Board of India.
Minister Thapa also requested his Indian counterpart to remove quantitative restriction on Nepali goods. He also urged India to give recognition to quality certification issued by Nepali labs in India.
At present, Nepali agro products have been facing non-tariff barriers of sanitary and phyto-sanitary measures. This will be addressed once quality certification issued by Nepali labs is recognized in India.
During the visit, the Indian side also agreed to build 41-km petroleum pipeline from Raxaul of India to Amlekhganj of Nepal. Likewise, the Indian government also agreed to construct Integrated Check Post (ICP) in Bhairahawa and Nepalgunj at the earliest.
India is already constructing ICPs in Birgunj and Biratnagar.
Minister Thapa also addressed business conclaves organized separately by FICCI and CII. In the programs, he talked about investment opportunities in Nepal for Indian investors.
FICCI to organize ´Invest Nepal´
Federation of Indian Chambers of Commerce and Industry (FICCI) on Sunday said that it would organize a program named ´Invest Nepal´ for attracting investment in Nepal.
"Prime Minister Modi´s visit would impart renewed momentum to the Indo-Nepalese multifaceted ties leading to effective measures to enhance bilateral trade and investment," FICCI said in a statement issued on Sunday. "We need to harness this by exploring the untapped potential in hydropower, tourism, agriculture & food processing towards mutually beneficial economic growth and development.”
Jyotsna Suri, senior vice president of FICCI, said: "With a focus on calibration of the current level of economic engagement, some key deliverables that India and Nepal are eyeing during the forthcoming visit of Prime Minister Modi are finalization of the text of an India-Nepal Power Trading Agreement and an early conclusion of the agreement and completion of necessary formalities to enable entry into force of the Bilateral Investment Protection and Promotion Agreement (BIPPA)."
Nepal and India signed BIPPA and Double Taxation Avoidance Agreement (DTAA) in 2011.
Indian industry also sees cooperation in hydropower sector as a win-win situation for both the sides and FICCI is keen to work with its Nepalese counterparts to make it a reality, FICCI said in the statement.
Source: Republica
