Kathmandu, September 21:

After waiving additional four per cent duty on majority of exports, India has recently decided to refund the duty, if it has been still found to be imposed on Nepali exports.

Javed Ashraf, outgoing commerce counsellor at the Indian embassy today said that India has recently decided to refund the additional customs duty on Nepali exports.

“Nepal is the only country, which has been given this special treatment of waiving four per cent additional customs duty,” he said.

He was speaking at an interaction organised by the Confederation of Nepalese Industries (CNI) today to welcome Harsh Jain, new commerce counsellor at the Indian embassy and bid farewell to Ashraf.He also informed that government of India is ‘seriously examining’ the possibility of removal of excise duties collected on Indian exports to Nepal. “Positive outcome could be expected soon,” he said adding that India is willing to include some provisions in the existing Indo-Nepal Trade Treaty keeping special and preferential trading arrangement intact.

Earlier, Jagadish Prasad Agrawal, vice-president at the CNI made a presentation on enhancement and promotion of Nepal-India economic relations. He pointed out the need to review requirement of 30 per cent value addition.

Agrawal also urged that the additional customs duty and different duties levied by the Indian states should be considered for removal keeping in view of competitiveness of Nepali exports.

He also asked that Indian plant and machineries, which are more than three years old, should be allowed to enter India for repair and maintenance.

“Payment of counter-veiling duty (CVD) should be allowed to be deposited in the Indian customs accounts opened in Nepal or the Nepali cheques should be accepted to customs authorities,” he said.

The CNI vice-president also pointed out some of the operational issues such as quarantine of agricultural goods, service tax on transportation and exports of Indian plant and machineries that need to be addressed.

While responding to the issues raised by CNI, Ashraf replied that India is keen

on signing motor vehicle transport agreement with Nepal, which could facilitate trade, tourism and people-to-people contact between the two countries.

He added that India is looking beyond specific or any particular agreement or treaty in forging a long-term and broader partnership with Nepal. “India has already proposed for a Comprehensive Economic Partnership Agreement (CEPA), which will not only cover all the areas but also look into future prospects,” Ashraf said.

Binod Kumar Chaudhary, president of CNI welcoming the new commerce counsellor urged India to provide preferential tax incentives for Nepal.