Under the new reference price, DoC has increased the valuation of almost all imported goods, including those brought under DRP, by as much as 100 percent.[break]
DoC has also instructed the customs office to impose tax on the basis of new reference price if the invoice presented by traders remained undervalued (than reference price) by more than 25 percent.
However, importers tagged the instruction as confusing. “The DoC’s action has confused us,” said Abhinash Bohora, general secretary of Morang Trade Association, adding that it has left more than 100 trucks stranded at the customs yard.
It has disrupted mainly the import of products like plastic sheet, plastic granules, hydrochloric acid, marble, sanitary goods, paper sheets and wires.
Binod Kuwar, chief of Biratnagar Customs, said the new provision was not confusing as the importers have claimed. “The reference prices for majority of imports have been increased and so have happened for goods imported under the DRP facilities. There is nothing to be confused about,” he said.
Importers have argued that the reference price would not help formal trade grow. “The new valuation will make negative impact on formal trade. It will only help informal trade grow, thereby leading to more revenue loss,” said Bohora.
Tanka Mani Sharma, director general of DoC, the decision will not be reviewed. “We revised the reference price because undervaluation has resulted to reduction in tax collection and shrunk the volume of excise that we reclaim from Indian under DRP,” Sharma said.
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