Govt to monitor textile export

-By Bhaskar Sharma

KATHMANDU, Jan 17 - The openly exported textile products of the country to the European Union (EU) will come under government monitoring from February 1, 2000.

This is being done in accordance with the initial agreement reached between Nepal and the EU on March 26, 1999, which will be provisionally implemented from February 1, 2000, said Director General of Department of Commerce (DC) Krishna Hari Baskota, while talking to The Kathmandu Post. 

According to the agreement, exporters have to get Certificate of Origin (CO) of all textile items, exported to EU, endorsed by a competent government official, which had till now been done by the local chambers of commerce.

The DC has been entrusted with the responsibility of endorsing the CO, which is forwarded by the Garment Association of Nepal (GAN) to DC through the local Chambers of Commerce.

The agreement also requires entrepreneurs to obtain license for the export of textile products falling in five, of total 161 categories, as categorized by the EU, for the purpose of dual checking of the goods exported from Nepal.

The five categories, numbered 4, 5, 6, 7 and 26, include the major exporting textile items, such as shirts, T-shirts, light weight fine knit roll, jerseys, woven breeches, shorts other than swimwear and trousers, blouses, jumpers and pullovers made of wool, cotton or man made fibres among others.

The DC issues the license to the exporter on producing the order of goods or the receipt of advance payment made by the European importer to the Nepali exporter or if there exists a back-to-back or buy-back arrangement.

Joint Secretary at the Ministry of Commerce, Leela Mani Poudyal said, “The issuance of license is to meet the EU’s requirement for double checking the goods imported by them as EU importer too needs to get import authorization under this arrangement.”

EU had initially demanded to initiate license system for 15 categories, which Nepal bargained down to 5. India and China are also manufacturing the textile items falling under these categories, which they export to the European market under the quota system. The transshipment of Indian and Chinese goods through Nepal must have prompted the EU to pressurize Nepal entering into this Agreement on Trade in Textile Products.

The agreement has also been reached to manage exports efficiently and promote Nepali entrepreneurs by controlling transshipments of the textile products from neighbouring countries. 

Baskota said, “This agreement will control transshipment and systematize Nepali garments export. Moreover, it will give a major impetus to the Nepali entrepreneurs.”

“The agreement will also help in enhancing the quality of textile products being exported from the country,” he added.

President of GAN, Brij Gopal Innani said, “The garment export to the EU has declining trend. This agreement is reached for the satisfaction of EU and to promote Nepali entrepreneurs through the maximum utilization of the duty free market access.”

The agreement comes as a result of the unfulfillment of the import criteria set in 1996, which was laid by the EU. EU alleged of transshipment and unsatisfactory documentary procedures, thus not confirming the originality of the goods being exported from Nepal.

The Trade in Textile Products Agreement, to be implemented till December 31, 2002, has a provision of further extension with the required amendments. This is the first time in eight years that a government office has been entrusted with the responsibility of issuing license to exporters. There was a license system for the import/export of various items before 1992.

Swiss Contact to assist BICA

-By Post Reporter

BIRGUNJ, Jan 17- Birgunj Industrial and Commercial Association (BICA) and Swiss Contact (SC) have agreed to operate 14 training programmes in the year 2000. Babu Lal Chachan, Chairman of the BICA and Leon Haudrate, project manager of the SC, signed the agreement.

According to a press release issued by the BICA, the training aims to reform the situations in small and medium enterprises of Birgunj.  The Swiss Contact will provide Rs 2,61,932 for training.

Programme officer of the Swiss Contact, G. B. Banjara and Manoj Aryal of BICA will help to conduct the training.

Mobile group to monitor smuggling

-By a Post Reporter

BIRGUNJ, Jan 17 - A meeting jointly attended by the representatives of local police, customs office, Revenue Investigation Department, Tax Office, Value Added Tax Office and National Investigation Office today decided to delegate a mobile group to curb increasing smuggling trade through various customs points.

The meeting has also identified various customs points where smuggling has thrived.

The meeting chaired by the Chief District Officer of Parsa district Dolakh Bahadur Gurung stressed on the need to involve the locals in the process of curbing smuggling trade. Gurung urged for an awareness campaign among locals and border areas’ villagers to intensify curbing smuggling trade.

Chief of Birgunj Customs official Ishwore Prasad Pokharel says customs points like Chhapkaiya, Sirsiya, Alau, Inaruwa, Matekha and Vishwa would be strictly monitored.

The meeting also revealed that for the first six months during the current fiscal year, more than 6.2 million rupees worth of goods were smuggled through customs.

A host of issues related to  VAT were also raised at the meeting and the decision was also taken to organize a workshop to find out its likely implications in detail.

Representatives at the meeting realized that only alternative to raise country’s revenue is to make related segments of society aware of various sources. The meeting also decided to reward those who give information on smuggling trade.