India can allow importers to change cargo entry point

Kathmandu, July 27

India has shown positive signals to allowing the Nepali importers to change the freight destination point at the Nepal-India border.

It said that if Nepal presented better locations of its convenience, the process to provide the facility, of changing the entry point of the Nepal bound cargo, could be initiated.

“The Ministry of Commerce and Industry (MoCI) has not received the demand formally. When Nepal presents the specific locations or entry points, the process will be started,” said N. Sivasailam, Special Secretary (Logistics) at the MoCI, India at a meeting with Nepali freight forwarders and traders at the Federation of Nepalese Chambers of Commerce and Industry.

Both the countries are developing trade infrastructures like the Integrated Check Posts (ICPs) and dry ports at the border to facilitate cross-border trade.

He said that there were issues related to documentation and logistics in Nepal’s trade with third countries through India, most of which would be addressed with the improved infrastructure and system automation.

“Improved logistics and infrastructure will equally benefit India as well while the automation will promote electronic documentation, process, invoices and payments,” Shivasailam said.

According to him, he was here to hear from Nepali business community about the issues on Nepal related trade and find the solutions to improve the environment.

Bhawani Rana, President of the FNCCI, said that the implementation of the e-system will reduce the cost of trade in the part of Nepal and will contribute in improving the overall business environment.

Rajan Sharma, former President of the Nepal Freight Forwarders Association (NEFFA), raised the issue of increased cost of trade due to the implementation of the e-tracking of cargo and consignment in Nepal-bound cargo.

The government had decided to implement e-tracking of the Nepal-bound cargo and consignment from the Kolkata and Haldiya Port some month ago and web-based vehicle and consignment tracking system to keep track of the whereabouts of the cargo carrying containers and trucks from this fiscal year.

“The Indian secretary has assured us that he would personally monitor the logistics’ situation and try to improve it. The FNCCI will submit written recommendations on the issue to the secretary,” said Sharma while talking with The Rising Nepal.

In the meeting, Nepali entrepreneurs had raised issues of insufficiency of train bogies, unloading facility the goods at the port, and keeping them in warehouses had increased the cost of trade. The delay in sending the goods to Nepal had been incurring a huge detention charges.

Meanwhile, Nepal and India are setting to amend the Trade, Transit treaties and Railway Service Agreement (RSA) and mulling to promote the inland waterways to facilitate trade between the two countries.

In the recent commerce joint-secretary level talks with India in June this year, Nepal had asked to allow the Indian private train operators to carry Nepal-bound cargo from Kolkata and Bishakhapattnam ports to Nepal.

The two countries are also planning to open ICPs in multiple locations at the Nepal-India border.

Meanwhile, the FNCCI is organizing Nepal-India Logistics Summit 2019 jointly with the Ministry of Industry, Commerce and Supplies and Maritime Gateway magazine, and in association with the NEFFA. The summit will deliberate on the current challenges and way to resolve them.

Published in The Rising Nepal daily on 28 July 2019.