Procedural change in DRP to facilitate trade

KATHMANDU, MAR 5: 

Department of Customs today said that Nepali traders will not face any hurdle at Indian customs points during imports.

“Vehicles ferrying goods were stranded for two days at different customs points after both the Nepali and Indian governments made some procedural changes in Duty Refund Procedure (DRP) effective from March 1,” said deputy director general at the department Madhusudan Pokharel. “The hurdle was created due to a delay in disseminating the information at the Indian customs offices.”

Cargo vehicles were stopped at 31 different customs points and various sub-customs points after Indian customs did not allow them to enter Nepal citing the newly implemented Duty Refund Procedure modality.

However, it had already been agreed that the previous Duty Refund Procedure provision which was in place till the end of February would be applicable for trade conducted before the end of February, informed Pokharel. “But the problems have been sorted out today after Indian customs allowed Nepali traders to import goods through the previous procedure.” Vehicles will now be allowed to ferry goods without any hurdle from today, assured Pokharel. 

Even after the change in the modality, the old Duty Refund Procedure will still be applicable for trade conducted before the end of February, he said, adding that it is expected that it will take one more month to complete trade under the old Duty Refund Procedure modality.

According to the old modality, duty refund from the government was available as rebate to buyers, as the Indian government used to later rebate the duty to Nepal.

After the Indian government made procedural changes to Duty Refund Procedure, the Department of Customs is working to clear all Duty Refund Procedure refunds from India, Pokharel said.

Both the Nepali and Indian governments had agreed to implement the Duty Refund Procedure according to the revised Nepal-India Trade Treaty signed in 2009.

“Nepal will get rid of the time-consuming process of duty refund after changing the modality of the refund,” said finance secretary Krishna Hari Baskota. “It will be easier for both importers and exporters,” he said, adding that though cargo had been halted, they have started entering Nepal from today and there will be no more hassles.

Source: THT