Traders seek end to valuation dispute

KATHMANDU:

A dispute in the customs valuation of cars and motorcycles imported from India has gone on for long due to the confusion regarding the export excise invoice, popularly known as ARE 1, that is issued by excise offices of India while goods are being exported.

Exporters from India need to duly fill up the ARE 1 form, which includes transaction value and the cost of insurance and freight (CIF), for removal of excise duty, as per traders.

The Nepali customs offices, however, are reluctant to recognise ARE 1 as the complete invoice citing that the cost of insurance and freight vary even for similar imports and in some cases CIF is not mentioned in it. During the valuation of the goods at customs points, officials add CIF to the commercial invoice of goods and charge accordingly. This provision has created a confusion.

Traders have for long been complaining to the Department of Customs (DoC) that they are being charged more at customs and requesting it to evaluate goods based on ARE 1 form that includes CIF as well. During a programme organised today by Nepal Chamber of Commerce on the eve of International Customs Day, traders raised the issue about recognising ARE 1 form for customs valuation.

Director General of DoC Shishir Dhungana said the DoC has asked the Central Board of Excise and Customs of India about how CIF is included in the ARE 1 form and they will decide on their next step after receiving a response.

Source: THT