Private sector seeks customs valuation on factory gate price

Kathmandu, January 25

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the government to do customs valuation of imported goods based on the factory-gate price.

Speaking at an event to mark 65th International Customs Day, President of Tax and Revenue Committee of FNCCI, Saurabh Jyoti, said, “Traders are suffering from extra valuation made on goods at customs offices. The government should promote and practice valuation on exact transaction price (factory-gate price of goods).”

Jyoti also added that the government should properly adopt and implement the provision on General Agreement on Tariffs and Trade (GATT) of the World Trade Organisation (WTO).

Similarly, Jyoti said that the government should focus on developing customs infrastructure and border management for

effective trade. “We have not yet been able to develop integrated check post at our customs offices and a number of other infrastructure at the customs offices are weak which has been affecting the country’s trade.”

Likewise, Jyoti also urged the government to increase export subsidy for export-oriented industries of the country and promote exports to bring down the ballooning trade deficit of the country. He further expressed that government should provide capital subsidy to businesses and industries to promote trade.

Addressing the gathering, Pashupati Murarka, president of FNCCI, said that the government should remove different customs procedural hurdles, which have been troubling traders a lot. Similarly, he also said that customs offices should be made accountable because traders sometimes are levied more taxes than prescribed by law. Murarka also urged government to make the soon-to-be-launched Export Import Code Implementation Guidelines friendly for trade and traders.

Meanwhile, Sishir Kumar Dhungana, director general of Department of Customs (DoC), said that the government is in the process of digitalising a majority of customs procedures to maintain accountability. Informing that some traders do not declare the actual price of goods, he added, “Traders should declare the actual price of goods they import which will help customs officials to do actual valuation of their goods.” Dhungana also vowed that DoC would address every logical concern of domestic traders.