Fresh legislation on customs on anvil

Kathmandu, January 21:

The government is all set to bring in a new customs legislation meeting all the specifications from the World Trade Organisation (WTO) agreements and the Kyoto Convention.

The government initially planned to amend the existing Customs Act 2019 (seventh amendment), but the ministry of law suggested a fresh legislation in order to meet all of Nepal’s commitment made to the WTO and Kyoto Convention, regarding simplification and harmonisation of customs procedures, informed Bal Govinda Bista, director general, Department of Customs.

Speaking at the seventh annual general meeting of Nepal Freight Forwarders Association (NEFFA), he informed, “Draft preparation for the new legislation is underway.” Bista further added that the new Act would address the current problem of procedural hassles and make customs procedures more simple, transparent and business-friendly.

As part of customs reforms, new systems including automated system for customs data (ASYCUDA) and new HS Classification 2007 have been introduced in major customs points, which will be expanded to other custom points too shortly, said Bista, adding that more infrastructure development will follow.

“Birgunj customs, which is a major customs point for Nepal’s international trade, will have one window system within a month. This will facilitate exporters-importers in terms of saving time and cost,” he said.

Responding to queries from freight forwarders, Bista assured that customs officials are ready to work even on holidays as per the requirement. He also informed that the government is preparing to handover custodian rights of the TIA Customs to Civil Aviation Authority of Nepal (CAAN) for efficient handling and functioning of air-cargo.

NEFFA president Namgyal Lama informed that traders are being compelled to lose two days (holidays) at the customs points, Saturday in Nepal side and Sunday on the Indian side. He also complained about TIA Customs not being capable of handling air-cargo efficiently.

Lama also stated that Nepali freight forwarders are simply not willing to use ICD facility because of higher freight cost than cargo movement, using trucks. “It is contrary to the earlier expectation that freight costs would significantly come down and facilitate export-import after the ICD operation,” he said.

Bharat Bahadur Thapa, secretary at ministry of industry, commerce and supplies urged exporters and importers to use dry ports and other facilities being provided by the government. “Government is committed to promote international trade and facilitate traders through business-friendly policy measures,” he assured.

Considering the changed context and environment of trade, the government has

already drafted three major policies related to industry, commerce and investment in consultation with private sector stakeholders, said Thapa. “The new policies are expected to be instrumental in the promotion of trade, commerce and investment,” he added.

On the occasion, secretary Thapa and Bijaya Nath Bhattarai, governor of Nepal Rastra Bank (NRB) jointly released the NEFFA Membership Directory and launched the official website- www.neffa.org.np.

Bhattarai informed that the central bank would request the government to amend the Foreign Exchange Act to make it more relevant.

Chandi Raj Dhakal, president of FNCCI and Surendra Bir Malakar, president of Nepal Chamber of Commerce pointed out the need for trade diversification and capacity enhancement by customs administration to facilitate international trade.