IAN submits letter to the PM seeking his leadership role in creating a prosperous nation
KATHMANDU, AUGUST 20
The Importers Association of Nepal (IAN) has expressed concerns over the government's decision to mandate the labelling of imported products with the full details of the importer and the market distributor through the Finance Bill 2023.
Stating that the labelling will take some time and affect the sales and distribution process, the IAN has urged the government to provide time till November to implement the rule effectively.
Earlier, the government had made it mandatory to put labels with clear details of importer and distributor on imported goods from July 17 onwards.
While the association is aware that the rule will help prevent the unauthorised imports and distribution of goods in the market, it will also add a huge challenge to importers and distributors.
Stating that a large amount of fake and expired goods are also imported despite the existing laws in place, the use of fake stickers and labels by unauthorised sources is likely to increase and create more confusion in the market.
According to the IAN, importers will have to manage a separate office and staff to label and apply the stickers, which will create financial and managerial challenges for such companies and affect consumers. As the country is dependent on India for the purchase of stickers used in labelling imported goods, this will further expand the country's trade deficit.
The rule will also create issues for labelling small products like lipsticks, nail polishes, lip balms etcetera. Further more, labelling of some goods re quires the seal to be broken, which may cause damage during the shipping process.
To control unauthorised imports and maintain transparency, the association has suggested that the government identify genuine importers and implement a comprehensive registration process by issuing distribution licences to such importers. It has also suggested strengthening the documentation process and managing a website with a list of all licensed importers, while also allowing imports from authorised companies only.
The association has also urged the government to provide more time to apply the labelling in imported products and has assured the government that all imported packages will be properly labelled by November after the main companies change the packaging and include theinformation of the importers and distributors on products that are traded in large quantities.
The association has expressed its belief that the problem of label stickers will be solved while maintaining transparency and making the import process organised while also protecting the interests of consumers if the suggestions are implemented effectively.
On another note, the IAN has also pointed out that the government's strategy of increasing revenue by maintaining high customs rates is counterproductive and will ultimately reduce imports and overall income.
The association has also called out the government over the incident of harassment faced by the officials and legitimate businessmen who contribute significantly to the economy of Nepal and has suggested the government prioritise the policies and programmes that bring investment into the country, while also creating a suitable business environment for the economic prosperity and the welfare of the nation as a whole.
Stating that the Nepali economy and the confidence of the business communities are declining daily, the IAN has submitted a letter to Prime Minister Pushpa Kamal Dahal, requesting him to play a leading role in creating a prosperous nation by reviving the economic sectors through strategic measures to attract foreign investment.
The association has suggested the government to implement the Foreign Investment Protection Agreement, a bilateral agreement that provides a framework for safe investment and protects foreign investment to attract foreign investment, economic growth, and employment creation.
It has also suggested that the country have a double taxation agreement with foreign countries which will also facilitate and encourage the flow of investment in Nepal from the international market, as well as individual investors will be willing to invest if they can get tax benefits. It will enhance economic cooperation between the two countries, promote bilateral trade and investment and strengthen the relationship between Nepal and foreign countries.
The association has also urged the government to introduce friendly policies targeting Non-Resident Nepalis (NRNs), form a special committee to strengthen bilateral relations between Nepal and strategic countries, carry out 'Visit Nepal' campaigns in major countries for tourism promotion, and organise investment related conferences annually to increase cooperation in trade, investment, and technology.
A version of this article appears in the print on August 21, 2023, of The Himalayan Times.
