Trade volume drops by 20-30 per cent

KATHMANDU, FEB 10: 

Overall export-import declined by 20 per cent to 30 per cent of late but revenue from customs remained stable due to the gain in exchange rate.

“The quantity of consignments from different customs points has reduced significantly,” said director general of the Department of Customs Rana Bahadur Shrestha at a programme organised here in the capital by Nepal China Chamber of Commerce and Industry.

“Revenue mobilisation would have dropped notably, had the US dollar not seen a steep rise against the rupee,” he said

“The encouraging revenue mobilisation is not due to an expansion of trade but due to a stronger dollar,” claimed president of Nepal China Chamber of Commerce and Industry Rajesh Kaji Shrestha.

According to the department, there has been a decline in opening Letter of Credit (LC) due to a volatile US dollar. It has also asked Nepal Rastra Bank to provide the trend of LCs for the last one month to get a clear picture of the export-import trend and forecast customs collections.

Import volume from different customs points also declined because most importers are in a ‘wait and watch’ mode due to the fluctuation in the value of the US dollar, the department claimed, adding that it is expected that imports will rise once the value of the dollar remains stable.

Customs data revealed that the import of petroleum products has gone down in the last two months and the import of vehicles has also plunged. The government is mulling on reducing import tariffs on vehicles, Shrestha, said, adding that this could materialise if there is no change in government till the next budget.

Meanwhile, the department is also preparing on introducing e-bidding from early March. It has been facing problems of hooliganism and political pressures during the auction procedures of under-invoiced goods, Shrestha said. “The department will accelerate the sale of under-invoiced goods once the e-bidding system comes into operation.”

“Similarly, the department will introduce a code of conduct for customs agents soon,” he added.

Blame game

Traders affiliated to Nepal China Chamber of Commerce and Industry blamed Department of Revenue Investigation for creating unnecessary burdens by various agencies. “The department has created problems through checking by different agencies,” president of the chamber Rajesh Kaji Shrestha said, urging the Department of Customs to introduce a checking system through a single agency.

New dry port

Beijing is in talks with Ministry of Commerce and Supplies to start construction of a dry port at Tatopani customs office, according to second secretary at the Chinese embassy Zhu Wei. “I hope construction work will begin soon,” he said. “Nepal’s total trade with China stood at Rs 44 billion in 2010-11 with exports worth Rs 1.2 billion,” president of the chamber Rajesh Kaji Shreshta said.