Stoppage at Jogbani Customs hits trade

BIRATNAGAR, APR 04 -

Factories based in the Sunsari-Morang industrial corridor have been forced to cut production due to a shortage of raw materials as shipments through Jogbani Customs have been hindered for the last two weeks.

Nepal’s export-import trade became obstructed after employees of Jogbani Customs launched a protest against the arrest by the Central Bureau of India (CBI) of four officials including deputy commissioner Shiva Shankar Kumar on charges of bribery on March 21.

Although work at the customs office had come to a complete halt initially, the staff resumed their duties from last week. Customs clearance is being delayed as many customs agents are not cooperating, and imported goods are being cleared during a specific timeframe only based on category.

Industrialists said that delays in customs clearance have prevented getting raw materials in time and in adequate quantities which has forced them to slash production.

“Lately, the Indian customs office has been clearing goods bound for Nepal as per an impractical timetable delaying clearance,” said Abinas Bohora, president of the Morang Merchant Association.

According to him, Jogbani Customs has been allowing trucks carrying petroleum products and goods imported from third countries to depart between 6 am and 9 am. Likewise, Nepal’s exports are being cleared from 11 am to 4 pm and imports from 4 pm to 8 pm.

“Previously, goods used to be cleared from the customs from 10 am till the evening without any categorization of goods,” said Bohora.

“Goods brought by railway are to be cleared within nine hours of arrival, and the railway yard should be cleared within 15 hours of arrival. This schedule of Indian customs has complicated Nepal’s exports and imports,” he added. As a result, industrialists said that they were forced to pay extra charges for detention and demurrage.

After foreign trade became complicated, the association appealed to the Indian Embassy in Kathmandu and its local office to simplify customs procedures. On Tuesday, industrialists and traders also urged commerce secretary Lilamani Joshi to help ease the situation. Joshi pledged to extend his help. Meanwhile, Ram Prasad Regmi, an officer at the Biratnagar Customs Office, said they had urged the Indian side to improve the situation. “They have assured us that the situation would be worked out soon,” he added.

Source: The Kathmandu Post