Non-tariff barriers hampered Nepal's export to India

Kathmandu, Aug. 25: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has said that the non-tariff barriers like quarantine and sanitary phyto-sanitary (SPS) measures and technical barriers of trade, and stringent rules of origin have hampered Nepal’s export to India.

“To address these non-tariff problems, we seek India’s technical assistance in enhancing the quality of Nepali products, and making quarantine and SPS lab certification compatible to Indian standard,” said FNCCI President Bhawani Rana during a meeting with Indian Minister of State for Commerce Nirmala Sitharaman in New Delhi the other day.

According to a press statement issued by the FNCCI, she requested India to relax stringent rules-of-origin criteria for goods manufactured in Nepal and simplify to a single criterion of 20 per cent value addition.

India is Nepal’s largest trading and economic partner but the trade imbalance between the two countries is ever increasing, with Nepal’s export to import ratio to India reaching 1:15.

Rana said that India could play a pivotal role in narrowing down the gap by bringing investment and technology to Nepal to enhance productivity and competitiveness, and enhancing bilateral intra-industry trade and giving an opportunity to Nepali investors to be a part of the ‘Make in India’ campaign by supporting the complementary industries in Nepal.

“We request to provide Goods and Services Tax (GST) waiver facility in services export as well, irrespective of the currency of payment as there is still not clarity about the GST waiver on services export and transit cargos. It has made the procurement of services from India expensive,” reads the statement.

The FNCCI has urged the minister to issue the ‘Explosive Certificate’ to Nepali LP gas industries by the Petroleum and Explosive Safety Organisation (PESO) of India.

Due to the lack of such certificates, Nepali gas bullets are not allowed to carry LP gas from India to Nepal.

It stressed on the need to reform the Trade and Transit Treaty between the two countries.

The FNCCI is establishing a ‘Nepal-India Economic Cell’ in Kathmandu with the Indian Embassy’s support to facilitate in addressing concerns raised in bilateral economic relations.

The FNCCI delegation included immediate-past President Pashupati Murarka, Senior Vice-President Shekhar Golchha, VP Chandra Prasad Dhakal and Treasurer Gyanendra Lal Pradhan.