Procedural change in duty refund soon

KATHMANDU, FEB 27: 

Though some procedural changes in Duty Refund Procedure (DRP) to export goods in India will be effective from March 1, the existing DRP will be applicable for trade carried out before the end of February, according to deputy director general at the Department of Customs Madhusudan Pokharel. 

“The Indian government has estimated one more month to complete the changes in the existing modality of DRP.” Currently, duty refund is available as rebate to Nepali buyers from the government, as the Indian government provides a rebate of duty.

The export invoice will be in freely convertible currency after implementing the new modality of Duty Refund Procedure, said Pokharel. Exporters can be under bond without payment of duty, under self sealing or physical examination as required, the procedural change note mentioned.

It also mentions that rebate as applicable on exports will be available. Holders of Duty Exemption Entitlement Scheme, advance license, and duty exemptions are also allowed for exports to Nepal.

After the Indian government made procedural changes in DRP, the Department of Customs has been working to clear all DRP refunds from India, according to it. However, it has yet to calculate the exact amount of refunds under DRP from the Indian government, according to Pokharel. “The real amount to be received from India will be calculated after the procedural changes at the end of February.”

Both 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 which the Indian government charges after changing the modality of the refund, according to the department.

Mode of Payment 

Indian traders have signalled that the mode of payment for trade with Nepal will not be changed any time soon, according to deputy director general at the Department of Customs Madhusudan Pokharel. “Some Indian traders have called Nepali traders to inform them that the Indian Currency will remain unchanged,” he said. Meanwhile, the Finance Ministry has directed the Ministry of Industry to study news that the Indian government is implementing dollars as a mode of payment, spokesperson Rajan Khanal said.

TIA introduces bank slip 

Tribhuwan International Airport Customs Office on Sunday introduced the system of customs clearance using a bank slip, according to the chief at the office Shisir Kumar Dhungana. “The old method of submitting a bank slip to the office and taking another voucher from customs office has ended with introduction of the new system,” he said, adding that it will reduce the complaints of delay at customs points. Work efficiency will be enhanced by removing the clumsy and time-consuming manual bill issuing system, he said.

Source: THT