Traders demand scrapping of customs manual

 Kathmandu, Jan. 24

The Nepal Foreign Trade Association (NFTA) has demanded the removal of the customs manual on valuation (database) used by the customs offices recently.

"The manual has added challenges the guidance of the World Trade Organization to recognise the transaction value, and has legitimised the misappropriation of foreign currency," President of NFTA, Binod Kumar Sethia said in an interaction organised by the Association on the occasion of the 72^nd International Customs Day in Kathmandu on Tuesday evening.

He also emphasised on the stability of customs policy and leadership. "There is no indication of when the policy will be changed. Due to this, domestic and foreign investors are always suspicious. What kind of prosperity are we trying to achieve on the basis of political instability?'' Sethia asked.

He demanded that the harmonic system code of 10 digits should be maintained for the classification of goods, and said that the practice of changing the classification for the purpose of collecting more tax should be ended.

Stating that high customs duty is promoting unauthorised trade, he suggested that customs should be levied on the unit of imported goods to reduce under-invoicing and to protect the domestic industry.

According to Sethia, if discounts are given on the air cargo while determining the customs duty of goods entering the country from air cargo, traffic will increase at the Gautam Buddha International Airport in Bhairahawa and Pokhara International Airport.

He demanded that the import and export (EXIM) code number should be valid for five years, and the rules for canceling the EXIM code of companies that have stopped trading should be simple. He emphasized on the need to increase mutual trust between the government and the private sector to control the import and trade of duplicate goods.

Stating that import has decreased but revenue has increased recently, he said that when economic activity, industry, and trade increase, revenue increase will be sustainable and natural.

Dr. Krishna Hari Pushkar, Secretary of the Ministry of Finance expressed his commitment to solve the real problems raised by the NFTA immediately by discussing with the relevant agencies. Saying that businessmen also have problems, he advised businessmen to work honestly.

Dr. Pushkar also said that he is ready for the reforms in the law and technology upgrades.

Vice President of the Confederation of Nepalese Industries (CNI) suggested increasing the number of goods imported through the green channel of customs, reducing the time taken at the customs point, and implementing the system of trusted trader in various places including customs.

He said that the country should promote domestic production by discouraging the import of the goods that the country is self-reliant of has the potential to be self-sufficient in.

Hemraj Dhakal, VP of the Federation of Nepalese Chambers of Commerce and Industry, emphasised the need to review the SAFTA and customs tariff rates. He also said that revenue should be increased by increasing business activities.

The Director General of the Inland Revenue Department, Dirgha Raj Mainali, said that structural changes are taking place in the tax system. He said that he is always ready to listen to the problems and complaints of the tax sector and asked them to talk to him directly in case of any problem.

Director General of Customs Department, Shobhakant Paudel, said that the problem has arisen due to lack of clean and transparent trade. 

 Published in The Rising Nepal daily on 25 January 2024.