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| Kathmandu Friday March 15, 2002 Chaitra 02, 2058. |
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EU-Nepal textiles trade slows
Post Report
KATHMANDU, March 14 : At a time when the export
of textile products to the United States, especially readymade garments, is on a wane,
figures recently revealed by the Department of Commerce (DoC) indicate a fall in business
even with the European sector.
The issuance of licence and certificate of
origin (CO) for export purpose by the DoC reveal a highly satisfactory performance in the
first month of 2002, but an equally dismal performance in the second month, pulling down
the overall statistics for the first two months of 2002.
Nepali textile entrepreneurs exporting products
to the EU, apart from the mandatory need of CO, need to obtain licence for the export of
some textile goods. In the first two months of 2002, the DoC issued a total of 989 COs
while it had issued 998 such COs in the first two months of the last year.
The value of the issued COs in the first two
months of the last year stood at Rs 225.18 million, which dropped a little to touch Rs
212.58 million this year.
Likewise, the number of licences issued for
export to the EU has decreased in the first two months of 2002 as compared to the like
period last year. Of the total 578 licences issued in the first two months last year, the
issuance fell to touch 520 in the first two months this year.
The value of goods for which the licences were
issued in the first two months of 2002 stands at Rs 160.91 million. The figure is down by
20 per cent as compared to the like period last year.
The fall in the total indicative figures for the
first two months of 2002 can be attributed to dismal demand from entrepreneurs for CO and
licences in February.
In February, the DoC had to issue only 554 COs
for goods valued at Rs 106.94 million against 605 COs for goods worth Rs 132.02 million.
Likewise, the issuance of licence in February stood at 288 for the export of goods worth
Rs 48.57, which is a decline from 365 licences worth Rs 120.57 million in the last year’s
corresponding period.
However, unlike the February figures, January
saw a good growth in both the issuance of COs and licences. In January 2002, the DoC
issued 435 COs for goods worth Rs 105.64 million, up from 396 COs for goods worth Rs 93.16
million last January. In the like manner, the DoC had issued 232 licences for goods valued
at Rs 112.34 million, up from the last year’s 214 for goods costing Rs 80.44 million.
Nepal and EU had reached an agreement on 26th
March 1999 that introduced the licensing system for the export of textile products falling
under five major textile categories, of the 161 categories as classified by EU. The
agreement was enforced from March 1, 2000.
The products falling under the five categories
include: knitted or crocheted shirts, T-shirts, jerseys and pullovers; gents’ or
ladies’ shorts, trousers and slacks; woolen or cotton shirts; and ladies’
dresses, among others.
Most of the Nepalese exportable items to EU fall
among one of the five categories. Apart from the licensing requirement, exporters need to
obtain COs from the DoC before exporting. The DoC has been providing entrepreneurs with
COs and licences within an hour of the application as per their policy to ensure
hassle-free services.
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