Trade talks with India yielding results

KATHMANDU, Jan 19: Nepalese and Indian officials have agreed to recognize selected inland container depots (ICDs), commonly referred as dry ports, and land customs stations (LCS) in Nepal as ports of entry and exit for third-country trade.



An agreement to this effect was reached when Commerce Joint Secretaries of Nepal and India met in Kolkata to simplify procedures for trade and transit between India and Nepal on Monday. [break]The technical teams held the meeting as per the mandate of Inter-governmental Committee (IGC) that was held in New Delhi on December 5-6, 2011.



So far, Kolkata port was recognized as the official port of entry and exit for Nepal´s third-country trade done via India, and all international buyers and sellers used to destine every consignment up to Kolkata port only.



"This is one important development, for it will enable Nepal to fully utilize ICDs like in Birgunj by upgrading them as exporting or importing port," said Chandra Kumar Ghimire, Nepali Consulate General in Kolkata.



The technical teams of both the countries have further agreed to recommend their respective governments to endorse and adopt the newly agreed arrangement, he stated, adding that the new arrangement, once in place, will allow Nepal to officially trans-ship third-country goods via India under a multimodal system including both rail and road transportation up to the designated ICDs and LCS.



The bilateral talks have also agreed to suggest the two governments to make Customs Commissioners of Kolkata responsible for holding periodic Trade Facilitation Committee meeting with all stake holders including Nepali Consulate General to resolve operational issues related to trade and transit.



It has also agreed to entrust Customs Commissioner of Kolkata to make necessary changes in existing arrangement of cargo movement from Kolkata Port to Container Freight Stations (CFS) and take up the issue with Kolkata Port Trust in case containers are delayed, increasing cost of transaction.



Both sides have also agreed to hold next meeting in the second fortnight of February in Kathmandu to simplify the procedures involving ship liners, port authority, railway or carriers.



In order to reduce excessive use of paper and human interface for the smooth movement of Nepal transit cargo, both sides agreed to opt for an online system for automated communication that will integrate customs of both sides and Nepali Consulate General Customs Transit Declaration (CTD) processing at Kolkata for the final reconciliation of the CTDs.



"To expedite it, a Joint Working Group as formed by the 15th Director General level talks on Customs Cooperation will be held in the third week of February. On the issue of too many signatures required for the CTD form, Indian side agreed to redesign it in a manner that shall reduce the number of signatures,” said Ghimire.



In the talks, Nepalese delegation was led by Naindra Prasad Upadhaya, Joint Secretary at the Ministry of Commerce and Supplies, while the Indian team was led by Sandeep Kumar, Commissioner at Central Board of Excise and Customs.



The meeting concentrated on how to simplify the procedural parts being followed by the customs at Kolkata Ports/Haldia Ports and at the border Land Customs Stations (LCS).

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