The Ministry of Commerce and
Supplies (MoCS) has approached the Indian government to clarify new
terms of payment laid down by Indian exporters, under which they are
seeking Nepali importers to pay in US dollar if they are to get duty
exemption - a move which has brought imports of excisable goods from
India to a halt since last six days.
“We have formally approached the Indian counterpart for explanation through diplomatic channel,” said Lal Mani Joshi, secretary of MoCS.
The ministry took such a step after local importers officially lodged a complaint over the confusion they faced after Indian exporters asked them to make payment in US dollars.
The confusion over terms of payment had surfaced particularly after the scrapping of duty-refund procedure (DRP) system on March 1. Under the system, India used to collect duty on excisable items exported to Nepal and the government of Nepal that used to allow entry of those goods without charging excise duty used to get the due excise collection in the form of duty refund.
After the system is scrapped, the normal understanding between the two governments was that India will allow its exporters to supply goods to Nepal at ex-factory price (without excise duty) and the Nepali customs would charge the due excise duty.
However, traders said the Indian exporters are presently demanding Nepali traders to make payment in US dollars.
“They (exporters) say they have been notified by the Indian authority to supply goods at ex-factory price only if the payment is made on US dollars,” said Pashupati Murarka, vice-president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
Murarka said Indian exporters are refusing to deal on ex-factory price when approached for payment in Indian currency.
As the DRP has been scrapped, traders won´t get payment of excise made to Indian supplier refunded.
“How can we pay excise in India and again in Nepali customs?” questioned Murarka. “We can´t pay in US dollars also because Nepal Rastra Bank (NRB) has opened US dollar payment facility for about 250 items.”
Interestingly, officials at the Indian Embassy said the term laid by the Indian exporters is not fair.
“Reserve Bank of India´s (RBI´s) guidelines has not been changed for Bhutan and Nepal. This means Indian traders cannot impose payment terms in USD to Nepali traders,” an Indian Embassy official in Kathmandu said, preferring anonymity. “If what the Nepali importers are saying is true, they should cite specific examples.”
Irrespective of what the officials said, Murarka said the stance of Indian exporters has created confusion among Nepali traders. “This has badly affected imports of cement, clinkers, textiles and vehicles, among others,” he stated.
“We have formally approached the Indian counterpart for explanation through diplomatic channel,” said Lal Mani Joshi, secretary of MoCS.
The ministry took such a step after local importers officially lodged a complaint over the confusion they faced after Indian exporters asked them to make payment in US dollars.
The confusion over terms of payment had surfaced particularly after the scrapping of duty-refund procedure (DRP) system on March 1. Under the system, India used to collect duty on excisable items exported to Nepal and the government of Nepal that used to allow entry of those goods without charging excise duty used to get the due excise collection in the form of duty refund.
After the system is scrapped, the normal understanding between the two governments was that India will allow its exporters to supply goods to Nepal at ex-factory price (without excise duty) and the Nepali customs would charge the due excise duty.
However, traders said the Indian exporters are presently demanding Nepali traders to make payment in US dollars.
“They (exporters) say they have been notified by the Indian authority to supply goods at ex-factory price only if the payment is made on US dollars,” said Pashupati Murarka, vice-president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
Murarka said Indian exporters are refusing to deal on ex-factory price when approached for payment in Indian currency.
As the DRP has been scrapped, traders won´t get payment of excise made to Indian supplier refunded.
“How can we pay excise in India and again in Nepali customs?” questioned Murarka. “We can´t pay in US dollars also because Nepal Rastra Bank (NRB) has opened US dollar payment facility for about 250 items.”
Interestingly, officials at the Indian Embassy said the term laid by the Indian exporters is not fair.
“Reserve Bank of India´s (RBI´s) guidelines has not been changed for Bhutan and Nepal. This means Indian traders cannot impose payment terms in USD to Nepali traders,” an Indian Embassy official in Kathmandu said, preferring anonymity. “If what the Nepali importers are saying is true, they should cite specific examples.”
Irrespective of what the officials said, Murarka said the stance of Indian exporters has created confusion among Nepali traders. “This has badly affected imports of cement, clinkers, textiles and vehicles, among others,” he stated.
No comments:
Post a Comment