Himalayan News Service

Kathmandu, March 1,

The government has recovered Rs 120.329 million out of a total Rs 235.6 million worth of bank guarantee, provided to various export industries that had not been reimbursed for over a decade. Under the bonded warehouse facility, export industries could import raw material or semi-processed material with a view to export more than 80 per cent of the finished goods produced from such material, enjoy zero import duty and imports can be done through bank guarantee only. In return, industries must bring in foreign currency earned from exports and reimburse the bank guarantee.

However, a joint investigation of the Department of Revenue Investigation (DRI ) and the Department of Customs had found that 434 such industries were yet to pay back the bank guarantee worth over Rs 235 million.

"Following a joint initiative of the two departments since mid-December last year, over Rs 120 million worth of bank guarantee have been reimbursed so far," said Deep Basnyat, director general at Department of Revenue Investigation, while talking to The Himalayan Times, today.

According to the Department of Revenue Investigation, since 1991 some export industries

have not cleared bank guarantees provided to them for importing raw material.

"The repayment rate is satisfactory now," said Basnyat, adding that follow up is aggressively being carried out under the Revenue Leakage Control Act. According to him, most industries include readymade garments, leather goods, handicraft, carpets and among others.