Wednesday, April 6, 2016

Importers demand India to lift CVDs on Nepalese goods

Nepal Foreign Trade Association (NFTA) Tuesday urged India to remove the counter-vailing duties (CVDs) while exporting Nepalese goods to the southern neighbor.
Speaking at an interaction with the high officials of the Indian Embassy in Kathmandu, Nepalese export entrepreneurs asked the Indian ambassador to Nepal, Ranjit Ray to facilitate in the removal of CVDs that India imposed on Nepalese goods.
According to Wikipedia, CVDs are trade import duties imposed under the World Trade Organization (WTO) rules to neutralize the negative effects of subsidies. They are imposed after an investigation finds, through its own examination, that a foreign country subsidizes its exports, injuring domestic producers in the importing country.
"Doing away with the CVDs will increase Nepalese export to India and will help to lessen the trade deficit of the country in bilateral trade. I request India not to impose CVDs at least for a decade from now," said Ramesh Gupta, president of NFTA.
He urged the envoy to facilitate in removing the quota system for Nepalese goods in bilateral trade between the two countries, and allowing the Nepalese importers to carry the goods from the third countries upto Jogbani-Biratnagar and Sunauli-Bhairahawa via train.
Currently, bulk cargo from the third countries can be transported only to Raxaul-Birgunj via train which has resulted in increased traffic at the border.
Gupta also drew attention of the embassy officials at the insufficient railway rack to carry goods from Kolkata-Haldia port to Raxaul or Birgunj Inland Clearance Depot, and complained that it had been forcing the Nepalese importers to pay high demmurage and detention charges.
The businesspersons asked India for the removal of the service tax that Nepalese importers were forced to pay on cargo and services.
Likewise, they requested to remove the provision under which a Nepalese citizen travelling to India from China must obtain a visa. "According to the bilateral treaties, Nepalese or Indian citizens don't require visa to travel to both the countries but if a Nepalese passport holder want to go to India via China, he/she must obtain Indian visa. This is not practical."
In response to the demands of the exporters, Indian envoy Ray informed that he would take the issues regarding to the CVDs to respective agencies in India.
"Integrated Check Posts (ICPs) at Nepal-India border will help to solve problems that Nepalese traders face in import-export business. ICP Infrastructure is ready at the Indian side, therefore you should force your government to constructure required infrastructure across this side of the border," he said.
He asked the businesspersons to suggest the goods that needed protection and the things that the governments needed to do in order to facilitate the smoots movement of goods across the border.

Likewise, Ray said that India should not impose any service tax to Nepalese importers. 

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