Forging Partnership for Facilitation

FOREIGN trade is subject to formalities, procedures and paperworks that are used for monitoring and controlling the movement of goods, transfer of services and financial flows by the government and related trade operators. The is required for the purpose of collection of revenues, monitoring of foreign exchange payments and receipts, and recording of statistical and operational information. On the other hand, this is also essential to control unauthorised movement of drugs, arms and ammunition, protected species, hazardous waste and other contraband goods.

The formalities, procedures and documents are often introduced and changed from time to time by the government without consultation with the private sector, and also without considering their effects on cost and efficiency in trade. This calls for a coordinated approach to tradefacilitation to ensure that the changes and solutions introduced in one part of trade transaction create problems a in another part. Indeed, the needs and problems of all the parties involved are to be indentified before subscribing to a change. The private and public sectors may have differnt interests and requirements behind such proceduers, but the development of trade may be the common goal of the both. This is the very ground for the government and trading community to take coordinated approach to the facilitation of trade through simplification, harmonisation and standardisation of formalities, procedures and documents in foreign trade.

In consideration to the need of trade facilitation through the joint efforts of the government and traders, the Working Party on Facilitation of International Trade Procedures of the UN/ECE, now UN/CEFACT (Centre for the Facilitation of Procedures and Practices for Administration, Commerce and Transport) had adopted Recommendation No. 4 on 'National Trade Facilitation Organs' in October 1974. With a view to talking stock of the political, economic and technological changes affecting trade and trnsport since then, the UN/CEFACT revised the Recommendation No. 4 in March 1999.

The recommendation puts forward a concept of partnership approach between government authorities, and users and providers of trade and transport services through creation on national bodies for the implementation of trade facilitation measures. This clearly identifies the need of public and private sectors stakeholders in transport, commerce and finance for forging into partnership through establishment of a national boby that can effectively and regularly implement recommendations for trade and transports facilitation. The body is a unique blend of regulatory and promotional interests, and acts as an inter-institutional forum to promote facilitation, coordination, study international trade and transport regulations, prepare recommendation for implementation by the concerned agencies, and create transparency on trade and transport issues. This widely accepted model of trade development has led many countries to create such a national body, which functions efectively with the coperation and support of the trading community and governments in thier individual countries. Under its technical assistance activities, UNCTAD has been promoting the creation of national facilitation bodies in various ountries including Nepal.

His Majesty's Government of Nepal has launched the Nepal Multimodal Transit and Trade Facilitation Project (NMTTFP) that envisages development of three inland clearance depots (ICD) or dry ports in Biratnagar, Birgunj and Bhairahwa with the technical assistance of UNCTAD for trade and transport facilitation with the funding from the World Bank loan in 1998. As a part of the project, a 'National Trade and Transport Facilitation Committee' (NTTFC) has been formed under the chairmanship of the Secretary for the Ministry of Industry, Commerce and Supplies in 1998 with the purpose of facilitation, development and modernisation of transport and trade practics. The Committee has 13 members that includes representatives from the Ministry of Finance, Minitry of Labour and Transport Management, Nepal Rastra Bank, Department of Customs, Nepal Trasit and Warehousing Company Ltd., The FNCCI, Nepal Chamber of Commerce, Nepal Freight Forwarders Association, Bankers' Association and Insurers' Association, in addition to invitees from various public and private sector institution.

The NTTFC has defined its four specific objectives as facilitation, regulatory, development policy and training. The facilitation objectives includes institutional coordination for the facilitation of trade and transport review of procedures for trade and multimodal transport for their simplification and harmonisation, collection and dissemination of information on international trade and transport procedures. It also covers alignment of documents as per the United Nations Layout Key and promotion of standard information technology and international codes for trade and transport information including EDI Communication.

The regulatory activity covers reviewing amending and proposing new draft regulations on liability, civil responsibility, banking, insurance and multimodal transport with a view to reforming and modernise current lagislation. This area also includes follow-up actions with institutions concerned for the approval of proposed regulations and practices, as well as examination of international legal instruments on trade and transport facilitation for possible accession.

Similarly, the NMTTFP's development policy objectives of the NTTFC refer to the review of the policy relating to intermodal transport including that on ICDs, development of transport and trade technologies, investment in EDI technology, institutional developments, international coverage of national companies, joint ventures, public responsibility and management of facilities.

Regarding the human resource development (HRD) the training activities include publicity for popularisation of the benefits and requirements of simplified procedures and documentation to the policy and decision-makers in government organisations, parastatal bodies, transport operators, customs and other regulatory instituions. Seminars and workshops are also to be organised for policy and decision-makers, and also for middle and junior level employees for making them aware of multimodal transport principles, practices and implications.

The NTTFC composed of three key players of trade and transport, government, service providers and traders, is a consultative organ for proposing facilitation recommendations for implementation by the government and private sector institutions concerned. It has constituted sector three sub-committees on laws and regulations, trade procedures and documentation, and insurance. The sub-committees will submit recommendations to the main committee after a detail examination of the related issues for trade and transport facilitation. The Committee is expected to play a lead role in providing an important forum for representing the common and individual interests of manufacturers, importers, exporters, freight forwarders, carriers banks, insurance and public administration, and carrying out lively trade and transport facilitation measures. It will be instrumental in catering to the needs of the trading community by reforming and modernising trade and transport sectors in response to the changing environment in the international trade, and thereby contributing to the development of foreign trade in Nepal.

Customs revenue up in Birgunj, Bhadrapur

Birgunj, July 18 (RSS): The Customs Office, Birgunj has registered a 16.99 per cent increase in its revenue in fiscal year 1999/2000 as compared to fiscal year 1998/1999.

The customs office collected revenue totaling Rs 8.5 billion in the fiscal year 1999/2000 which is more by around Rs 1.2 billion over the previous fiscal year.

Of the total revenue collected, Rs 4.58 billion came by way of customs revenues, Rs 3.3 billion by way of the Value Added Tax (VAT), Rs 494 million by way of local development tax, Rs 929 million by way of the South Asian Federation Games Fund, Rs 8.09 million by way of smoking and liquor control tax, Rs 1.39 million from the agricultural services and Rs 15.5 million from income tax, according to Ishwar Pokharel, chief of the customs office.

Likewise, out of the revenue of Rs 7.3 billion which the Customs Office collected in fiscal year 1998/1999, Rs 4.12 billion came from customs duty, Rs 2.77 billion from Value Added Tax, 230.2 million from advance income tax, Rs 95 million from local development tax, Rs 73 million from the South Asian Federation Games levy and Rs 5.1 million from smoking and liquor control levy.

The Customs Office collected Rs 458.8 million more in terms of customs tax in fiscal year 1999/2000 as compared to the previous year, registering an increase of 11.9 per cent. Similarly, the office collected Rs 573.9 million more in terms of Value Added Tax in fiscal year 1999/2000 as compared to the last fiscal year thereby registering an increase of 20.69 per cent, it is learnt from the Customs Office.

Menawhile in Bhadrapur, the Mechi Customs Office, Kakarbhitta collected revenues to the tune of Rs 557.47 million by the end of the fiscal year 1999/2000 which ended mid-June.

According to the Customs Office, of the total revenue collected last fiscal year Rs 340.7 million came from customs tax and Rs 216.6 million in terms of Value Added Tax.

The total revenue in fiscal year 1999/2000 increased by 95.54 per cent of the total estimated revenue collection figures. The percentage increase is due to the increase in revenue collection in terms of customs tax and value added tax which increased by 81.1 per cent and 132.5 per cent respectively as against the estimated revenues from these sectors, according to Deepak Kharel, chief of the Mechi Customs Office.

He said a patrol teams have been constituted to check cross-border smuggling of goods, evasion of customs, revenue leakage and to activate the customs staff and police activities.

BCCI flays hassles created by VAT people

BY A STAFF REPORTER

Kathmandu, Jyly 18: Bhaktapur Chamber of Commerce and Industry (BCCI) has strongly demanded the government to stop unnecessary pressure of the VAT inspectors while checking the documents of traders and businessmen. The checking of the documents should be carried out at the presence of the BCCI, says a press release issued today.

The VAT Office should notify the traders that documents should submitted to the representatives of the VAT.

Besides, the process regarding the assessment of the bills should be very transparent, the BCCI demands.

Traders who are registered in the VAT Office have been deprived of facilities that they are entitled to get. They are vexed with the administrative hassles. The BCCI also demands the government to reduce anomalies and aberrations.

Meanwhile, RSS reports say that President of the Employers' Council of Federation of Nepalese Chambers of Commerce and Industry and president of Nepal-Britain Chamber of Commerce Rajendra Kumar Khetan left here recently for London to attend a function to be hosted by Her Majesty Queen Elizabeth II of Great Britain at the Buckingham Royal Palace on July 25.

During his stay in London, Mr Khetan is scheduled to discuss with the office bearers of the Britain-Nepal Chamber of Commerce and the British Trade International matters concerning the promotion of trade and economic cooperation between Nepal and Britain.