Kathmandu, March 30:

The four per additional customs duty (ACD) imposed on Nepali exports to India is all set to be removed soon, thanks to latest negotiations held by the business sector people and government officials with their Indian counterparts.

Bharat Bahadur Thapa, secretary at the ministry of industry, commerce and supplies, while talking to The Himalayan Times hoped that the duty imposed by India as per the current fiscal year’s budget would be removed in due course of time. Thapa said that India has already assured the Nepali government about the removal of the duty as goods bound for India have been stranded at border points for the last few days.

The announcement made by Indian budget for the imposition of additional duty in the current fiscal year was applicable to all imports to India from any part of the globe. But in the case of Nepal, India would reconsider, Thapa hoped.

Binod Chaudhary, president of Confederation of Nepalese Industries (CNI) hoped that as thousands of trucks carrying Nepali goods are being stranded at the border due to the imposition of additional duty, India would consider removing it at the earliest. Chaudhary said that there has been misinterpretation of the additional duty as being politicised. Business issues should be dealt in a ‘business-like manner’.

Even in 1996, the effect on private sector was felt while renewing Nepal-India Trade Treaty which marked a new era in Nepal-India economic relationship, said Chaudhary.

However, in later years, ‘distortions and misunderstandings’ started to crop up in issues related to India that affected Nepal and created confusions which have affected bilateral relations.

The four per cent duty imposed by India is to protect their ‘own’ industry which is applicable to all countries’ products. However, Chaudhary hoped that considering the relationships with India, this should be exempted as was done earlier as a gesture of friendship and in the spirit of preferential arrangement.

After 20th March, 2006, when India imposed duty, we held talks with people at the government and political level who have given a ‘green signal’ for resolving the issue soon.

In case the duty is not removed, goods worth over Rs 1.2 billion stranded at the border will be wasted, business sector people said.

Dr Raghav Dhoj Pant, senior economist and former member of National Planning Commission (NPC), questioned the government’s ability to deal with issues such as the ACD imposed by India and goods being stranded at bordering points. Dr Pant was of the view that if the government takes initiative and discusses with the Indian government, the issue can be resolved soon. What is crucial is that the government should come clear on its ‘position’ not keep people in the dark, he added.