Trade deficit with China thru Tatopani customs nears Rs 10b

SINDHUPALCHOK, March 10:

Nepal suffered trade deficit of Rs 9.98 billion with China through Tatopani customs office in the first seven months of fiscal year 2013/14.

Goods worth Rs 11.39 billion were imported through the customs point in the review period. Exports through the customs point stood at a meager Rs 1.38 billion.

The country had imported goods worth Rs 10.16 billion from China and exported products worth Rs 1.12 billion to the northern neighbor through the customs point in the first seven months 2012/13. Trade deficit widened despite export growing by a 16 percent in the review period compared to same period of last year. Import growth during the period stood at 12 percent.

Mimansha Adhikari, chief customs officer at Tatopani Customs Point pointed out failure to promote Nepali products in China as the main reason behind widening trade deficit through the customs point.

Though China has provided zero customs duty on Nepali products, Nepal has been failing to cash in on the facility.

China has provided duty free access to about 3,700 products.

Traders, however, say local government of Tibet has been imposing local tax on Nepali goods. They also say administrative hurdle is affecting export of Nepali goods to Tibet.

Source: Republica