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  Kathmandu,Monday February 21, 2000  Fagun 09, 2056.


ICDs necessitate changes in Indo-Nepal Transit Treaty

By a Post Reporter

KATHMANDU, Feb 20 - The almost completed inland container depots (ICDs) coming into operation in three major economic areas namely Biratnagar, Birgunj and Bhairahawa would necessitate significant reviews in Nepal-India Transit Treaty, to have positive impact on the overall economy of the country.

So far shipping companies have been considering Calcutta or any other Indian ports as the last destination, and the parties taking the responsibility of transfer of goods receive it there only. But, with the operation of ICDs in Nepal, the liability of shipping companies would be extended up to the particular ICD of Nepal.

However, there is no such provision in the existing Transit Treaty under which India would be releasing Nepal-bound containers as the goods in transit. Though Nepal-bound goods are given in-transit status, there have been still many catches within the Treaty, which provides various rights to Indian officials.

R B Rauniar of Interstate Multi Modal Transport talking to The Kathmandu Post said, "We need to reform the Indo-Nepal Treaty to operate our ICDs." According to him, it would not be very difficult to make amendment in the Treaty because there are hundreds of such hinterland ICDs in India which have been operating with the international norms.

Rauniar, however, sees many issues to be corrected within the country to attain the status of internationally recognized as bonded area," he added.

Since the existing Transit Treaty is based up to Calcutta or any other Indian ports, it certainly requires further addendum to recognize the status of Nepalese ICDs. "In fact, by the law Nepal is not in a position to issue bill of lading at the moment. But, we should be able to take the international recognition to let main line operators open their offices in Nepal," Rauniar added.

The containerized goods concept has been very new to Nepal. Even now majority of the items are coming in loose on the trucks. The first container that entered into Nepal, except for few party-owned containers, was that of Shipping Corporation of India in 1987. The international container entered into the country only after two years.

However, the containerized movement has increased very fast in recent days. The movement of containers that was merely in dozens till nineties increased to 29 thousand containers in 1995, which then increased slowly to reach 29,976 containers in 1999.

The current trend of container movement shows that there has been average 14 percent growth in the goods imported or exported through containers. But, with the establishment of three new containers the volume of business is expected to reach up to 40 thousand containers by 2000.


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