Nepal | May 20, 2019

IE code to be implemented

Himalayan News Service

Kathmandu, July 31
Department of Commerce and Supply Management (DoCSM) is preparing to introduce the Import-Export code (IE code) to facilitate importers and exporters during customs transit declaration at Kolkata port while importing goods and shipment of cargos for third country export.

The IE code is a software-based system, which will be instrumental in streamlining the process of exports and imports in the country. DoCSM will implement the IE code system in association with the Department of Customs (DoC), and a software developer was recently selected to develop the software for the implementation of the IE code, according to Damodar Regmi, deputy director general of DoC. The developer has been asked to install the software within a year.

After installing the software, DoCSM will provide a code number to importers and exporters. Once the code number is entered, the system will show detailed profile of the importer and exporter, like which product the firm will import or export from which country, its permanent account number (PAN), and value added tax (VAT) registration number, among others.

Once the code has been distributed, DoC will link it with Consulate General Office in Kolkata and the importer or exporter won’t have to take a letter from DoCSM for customs declarations of imports from third countries at Kolkata port. “Hassles related to documentation will be massively reduced once this system comes into implementation,” said Regmi.

Currently, four documents — invoice of imported goods, letter from DoCSM, Letter of Credit record from Nepal Rastra Bank and letter from Consulate General Office (CGO) in Kolkata — are required for customs transit declaration at Kolkata port while importing goods.

After IE code is implemented, CGO alone can facilitate importers and exporters. Likewise, DoC will facilitate genuine importers and exporters at customs point after risk profiling of importers and exporters.

As per Regmi, DoC will identify any sensitive party (importer or exporter), sensitive products (in terms of revenue and others), and the department will not consume more time in checking goods at customs points which are not sensitive products and are not imported by sensitive parties. “This will ultimately shorten time for customs clearance of goods.”

DoC said the system will also help reduce the number of bogus firms. In Nepal, there are 31,000 firms registered for import, but DoC does not have their detailed information. “Once the code is implemented,  the ill-practices of registering bogus firms to evade taxes will be reduced.”

A version of this article appears in print on August 01, 2015 of The Himalayan Times.

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