‘Govt itself responsible for export barriers’
At a time when the government is seeking support of international trading partners to lower non-tariff measures (NTMs) that have been hindering exports to destination country, the government itself has been found to be creating lots of procedural hassles during exports in the country itself, which traders consider as NTMs created by the government.
A recent study commissioned by the International Trade Centre (ITC) has revealed that procedural and regulatory obstacles are the major NTMs imposed by the country of origin, country of destination and transit providing country, which are causing delays and accruing high cost in export.
Exporters can benefit if the government minimises procedural obstacles in export, according to the report. As per the report, exporters face 65 per cent of the procedural hassles in the country of origin, that is Nepal, three per cent in transit providing country, India, and 32 per cent in various destination countries.
The study has highlighted that Department of Customs can play a crucial role in minimising such procedural hassles, among government agencies with whom exporters have to work. Forty-three per cent of procedural hassles are related with customs, 13 per cent with Nepal Bureau of Standards and Metrology, 11 per cent with Department of Plant Resources, and eight per cent with Department of Food Technology and Quality Control.
Interestingly, Federation of Nepalese Chambers of Commerce and Industry, which is the umbrella organisation of the private sector, is also found to be creating procedural hassles while issuing certificate of origin of the goods and others.
Procedural obstacles created in the country of origin are related with inappropriate lab testing facility, administrative hurdles, document requirement, payment-related hassles, lack of proper information regarding new rules of trading partners to the exporters, delay in customs clearance process, among others, as per the study.
The study report has highlighted that though the government and private sector have taken some initiatives to address the concerns of exporters, lack of coherent and well-defined roles and responsibilities and coordination among various agencies within the government system for the problems not being addressed.
