NFTA urges to recognise bill value at customs

 Kathmandu, Jan. 24

Nepal Foreign Trade Association (NFTA) has complained that the customs offices do not recognise the bill value even in the case of goods that are imported with payment from the Letetr of Credit (LC), shipped from the manufacturer and imported according to the guidance of the customs.

President of the NFTA, Binod Kumar Sethia, said that the transaction value should be recognised by removing the reference valuation book. He said that reference assessment is promoting practices such as over and under-invoicing and misappropriation of foreign currency in the international trade.

Speaking at a programme organised on the occasion of the International Customs Day 2023, Sethia drew attention to the fact that thousands of files applied for re-evaluation have been undecided for a long time, Sethia said that the harmonic system code of item classification should be increased from 8 digits to 10 digits and the practice of changing the classification for the purpose of charging more tax should be ended.

He also said that due to the lack of coordination between the ministries and departments of the government, users and businessmen had to face various troubles at the customs and other offices related to international trade.

Saying that high customs rates will increase unauthorised trade, Sethia emphasised that customs rates should be made scientific.

In order to reduce under-invoicing and protect the domestic industry, he suggested that customs should be levied on the unit of imported goods and demanded to solve the problems in the system of pre-ordering customs duties.

Similarly, the traders have stressed that the time limit for electronic payment at the customs office should be made practical, internationally recognized laboratories should be established at all major customs offices and the practice of sending letters to businessmen after years saying that the customs are invalid, he emphasized.

Secretary of the Ministry of Finance, Toyam Raya, said that the government was every ready to listen to the problems of the private sector traders and resolve their problems.

First Vice President of the NFTA, Shiva Kumar Agrawal, said that private sector representation should be ensured at the customs reevaluation committee.

Published in The Rising Nepal daily on 25 January 2023.