Customs violates Supreme Court order

-By a Post Reporter

KATHMANDU, Jan 6 - Bhairahawa Customs has denied the entry of salt imported by Himali Noon Pvt Ltd. from India against the interim order of the Supreme Court.

The customs has denied permitting the entry of six trucks of salt imported by the private importer citing finance ministry’s directives not to allow the entry of salt imported by any private party. 

Supreme Court on September13, 1999 issued an interim order asking the government not to hinder the import of salt from India by Himali Noon Pvt Ltd unless the court gave a final verdict on a petition filed by the Himali Noon.

Himali Noon, the private sector company dealing with the import, iodizing and distribution of salt, had filed a petition on July 20, 1999 to nullify cabinet’s decision that effectively barred it from importing salt from India. The Cabinet on March 22, 1999 decided to allow only Salt Trading Corporation (STC) to deal with import and distribution of salt until the end of the Ninth Five-Year period ending 2002. STC is a public company with only 11.6 percent of government stake holding.

The plaintiff in its petition had argued that the cabinet decision violated the Iodized Salt (supply and manufacture) Act 1998 and ran counter to the government’s policy of liberalizing salt import. The Act allows the entry of any capable private party into salt trade.

The plaintiff had also argued that the cabinet decision violated Import Export Act, which guarantees citizen’s right to export and import goods, except those enlisted in the negative list of the Act’s annex. Salt is not included in the negative list.  

Himali Noon obtained licence from the Department of Industry in 1993 under the government’s much publicized policy of liberalizing salt trade. The government did not only grant the licence but also requested the Government of India on July 3, 1998 to provide railway rack facility to Himali Noon for importing salt from India. Under the bilateral agreement Indian government subsidizes 50 percent of transportation cost for the import of salt from India through railway racks.

However, the government later on made a U-turn from its earlier decision and did not only request the government of India to scrap the railway rack facility to the private party but also made a cabinet level decision to bar the private sector from dealing in salt.

Tamrakar appeals UK to promote Nepalese carpets

-By a Post Reporter

KATHMANDU, Jan 6 - Minister for Commerce Ram Krishna Tamrakar appealed to the British government and industrialists to promote Nepalese carpet exports in the European markets.

Minister Tamrakar urged the British government while addressing a British Wool Promotion Event organized jointly by the British Embassy and Nepal Britain Chamber of Commerce and Industry (NBCCI) here today. Minister Tamrakar expressed the hope that British people would help Nepal in the development of wool production through technical and joint venture investment.

As British wool is competitive in price and is high in quality, and if Nepalese carpets could be made using British wool, it could be sold in the global market, said the minister.

President of NBCCI Rajendra Khetan said since Nepalese carpet is the largest exportable item, which alone constitutes over 31 percent of export markets, it needs to be promoted in the European markets and the USA. 

As UK is one of the main producers of high quality wool, it could be an asset in weaving carpets, Khetan observed. He said that the forthcoming visit of Nepalese carpet delegation to the UK would help further explore possibilities for the promotion of Nepalese carpets made up of British wool in the global markets.

British Ambassador for Nepal Ronald P Nash, addressing the function, said UK is the largest wool producer in Europe with an annual fleece wool clip of nearly 50 million kgs or roughly 3 percent of the world’s entire production. President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Pradeep Kumar Shrestha stressed on the need to have strategic partnership with British government to promote Nepalese carpets in the European markets through ‘buyback’ system. If Nepalese carpets are made of using British wool, our products should also have access to UK, Shrestha added.

President of Central Carpet Industries Association (CCIA) A G Sherpa said since the carpet industry is the major economic activity of the country, the government and the private sector should work unitedly to resolve the problems facing the sector.  Sherpa also demanded with the government to revise the customs floor price. He appealed to the British government and the NBCCI to play a catalytic role in activating the interests of British carpet importers in Nepal.

Richard Pashmore, speaking at a press conference said that British wool is better than New Zealand wool in that the former is resilient. Japan is the biggest user of British wool in Asia and Belgium is biggest importer. British Wool Marketing Board will provide a licence to Nepalese carpet manufacturer if he uses more than 50 percent of British wool to help Nepalese entrepreneurs in marketing carpet globally.

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6 January , 2000