Govt drafting new export import Act

In a bid to make the law governing country´s overseas trade more effective and incorporate service trade, the government has drafted new Export and Import Act (EIA) to replace the existing Export and Import Control Act (EICA) enacted in 1957.
“The first draft is ready, it has already been circulated among stakeholders and concerned officials for necessary consultation,” an official of the Ministry of Commerce and Supplies (MoCS) told Republica.
He told Republica that the need for a new Act was felt mainly as the previous Act, which has no provision for service trade, has become obsolete in present context. “The new law will have specific provisions for export and import of services,” the official said.
The government has identified seven services that have comparative advantage for export. The National Trade Integration Strategy (NTIS) -- a blueprint of the government to boost country´s export, identifies tourism, labor, information and technology, healthcare, education, engineering and hydroelectricity as service areas having export potential.
“Unlike the previous Act, the new draft aims to facilitate export and import,” the official, who is also reviewing the draft of the new Act, said. “The inclusion of the word ´control´ in the previous Act had started to give negative connotation in the present context of bilateral and multilateral trade.” The official, however, refused to divulge further details.
The existing Act was prepared at a time when Nepal´s trade volume was very low. It has not been amended after its ratification in February, 1957. Among others, the existing Act allows the government to open and prevent export and import of goods if it deems necessary.
“The draft proposes the government to play facilitator´s role in import/export trade,” the official disclosed. However, it will have a clause that allows the government to regulate trade of sensitive goods and services.
MoCS, which is pushing for early finalization of the draft Act, is also reviewing Foreign Direct Investment and One Window Policy in order to make it up-to-date. “This is also an effort to make all the Acts and policies coherent with each other,” the official said.