BUSINESS & ECONOMY

EPZ can be crucial to increase exports

By A Staff Reporter

When the countries around the world aregetting more competitive, Nepal must focus on quality of its products for raising its export of volume. Though Nepal’s export to India showed a quantum jump in the past few years, concerted effort in the export promotion can bring even better results.

In this context, establishment of Export Promotion Zone (EPZ) can play a vital role, participants said at the seminar on “Investment Opportunities in Nepal” organized by Nepal-India Chamber of Commerce and Industry (NICCI) under the aegis of Embassy of India in Kathmandu and B. P. Koirala India-Nepal Foundation on Saturday.

Delivering the welcome speech, Rukma Sumsher Rana, chairman of NICCI, said that to attract the foreign investors to our country, Nepal must create a favorable environment and comparative benefits to others. “The government can play a very crucial role by giving appropriate policies, support, and proper environment, he said. 

“Establishment of Export Promotion Zone is one of the important aspect of this trust,” he further said, and added that the government has included the concept of EPZ in the budget for the existing fiscal year.

Though the concept of EPZ is not new to the South Asian region, this new in the Nepalese context. It was started in India as early as in 1965 when Kandla EPZ was established. Similarly, Kutuna yake EPZ was established in Sri Lanka in 1978 and Chittagong EPZ was established in Bangladesh in 1980.

“Since the countries around the world are getting inter-linked, export is a must these days,” said Pradeep Kumar Shrestha, President, Federation of Nepalese Chambers of Commerce and Industries (FNCCI).

“In this connection, establishment of EPZ plays an important role for the promotion of export,” he said. “This will help Nepalese business community in moving separately and striking together,” he further added.

Speaking on the same occasion, Indian Ambassador to Nepal K. V. Rajan said that there was a significant improvement both in investment from and export to India after the signing of the Trade Treaty between India and Nepal in 1996. He also highlighted on the need of EPZ in Nepal.

Similarly, Nepalese Ambassador to India, Dr. Bhekh Bahadur Thapa also addressed the gathering. He urged Nepalese business community to learn to compete to survive in the global market.  

Nepali Stupa Temple for EXPO 2000

By A Staff Reporter

A unique Nepalese building in the form of a 23-metre high stupa together with 11-metre high temple is being constructed in Germany by a team of 29 specialized Nepalese craftsmen and engineers. Referred by German press as the masterpiece of Nepalese traditional architectural grandeur, the Nepalese building is being erected for the EXPO 2000 Hannover as Nepal’s national pavilion. The Nepalese technical team has been erecting the Nepal’s Himalayan pavilion for the last one month and the construction is scheduled to be completed by the end of April. The stupa-temple building will be the only Nepalese architecture of this kind of the world, says the IE Group press release.

Appointed by HMG to plan, erect, operate and manage the country’s participation at the EXPO 2000 Hannover, the Implementing Experts Group (comprising of professionals having experience and expertise of previous world expositions) is undertaking the entire erection with its own finances and with materials carved in Nepal. Earlier about 450 MT of construction materials including exquisitely carved wood, stone and metal were brought to Hannover by sea containers.

Nepal’s Himalaya Pavilion in the form of stupa and temple will sit in the centre of 2500 sq. metres Mandala shaped garden with 150 sq. m. L-shaped pond in front. A 62 metre long and 4 metre wide traditional Sattal walkway will surround the pond. There will be a traditional platform in the east for presenting traditional Nepalese dance performances whereas platform in the north will serve as a place for presenting live demonstration of pottery making, wood carving, metal casting, Thanka painting and carpet weaving. Thatched roof farmhouse of Kathmandu valley and Tharu mud house with colourful wall paintings will be erected in the west and south side of the garden.

Nepali artists will be presenting their skill in wood and stone carvings and metal engraving at the pavilion. The pavilion will also have regular live performances by Nepalese dancers and musicians and live demonstration by artisans who will exhibit the art of pottery making, wood and stone carving, metal casting, Thanka painting and carpet weaving.

Mankind Nature Technology is the main theme and several sub-themes specified by Expo 2000 for each participating country to make their national presentation. Nepal is concentrating its presentation in the main theme and sub themes such as Education & Culture, Leisure & Mobility, Environment & Development. 173 countries and 20 international organisations will have their pavilions at EXPO 2000 HANNOVER, which is expected to be attended by 40 to 50 million visitors from Germany and the rest the world. Nepalese participation at the EXPO is expected to help promote besides national image and prestige; country’s foreign trade, investment, tourism and commercial utilisation of human and natural resources. Promotion of art and architecture, culture will also receive substantial boost at the EXPO 2000.

The role of customs in trade facilitation

By Jagadish B. Mathema

We have just entered the next millennium. In the last millennium, tremendous progress has been achieved in the areas of transport and communications. With the introduction of Internet and mobile phones via satellite the world has shrunk dramatically. One can do all business activities just sitting in a room.

This new millennium is the era of trade and competitiveness. A nation’s economic development is very much based on international trade. International trade, in addition to earning foreign exchange meet the demands of consumers whether it is domestic or industrial. Nepal cannot always depend on aid for its economic acceleration, rather she should expand her trade. Export trade has been given special importance in view of its valuable contribution in earning foreign exchange and in creating employment opportunities in the country.

There is no denying the fact that Nepal will certainly be affected by the present globalisation of production and the liberalisation in trade. If we really want to survive in this present competitive world, we must provide adequate facilities to promote trade internationally. Therefore the role of customs is very important in trade facilitation.

During the Rana regime, the main function of the customs was to collect the revenue. International trade was non existent then. The only trade we had during that time was with India and Tibet. The officials working in the customs department were authority oriented. Knowledge about facilitating movement of goods was non existent.

Ours is a developing country. Therefore policies regarding international trade, revenue generation and the function of the customs play a vital role in its economic development. One of the major sources of the government income is the revenues collected by the customs at the borders and at the Tribhuvan International Airport.

With the increase in international trade, the officials working in the customs should change their age old attitude and should facilitate in the smooth movement of goods in international trade. Therefore the customs department should change its role from that of a revenue collector, security officer and a store keeper to that of a facilitator of trade.

As we have now entered in the 21st century, it is an opportune time to initiate steps towards modernizing and reforming the Customs Department.

Most people complain that the attitude of the customs officials are not friendly. They always look at  traders in a very suspicious way. The traders feel that they are being harassed by the customs even in small matters. Customs personnel always have had a negative approach towards traders and almost always create problems for them.

The traders complain that even in packed cargoes of homogeneous goods, sample checking could have been done but sometimes the whole cargo is unloaded and checked, which is not necessary at all. For some special type of cargoes, which have got to be shipped in time are usually not given clearance if it does not come in time or if it comes during holidays. This is the kind of feeling we gather from the traders and the traders have the notion that the system has not yet developed in our country. It rather runs just on customs personnel’s whim.

The customs act as a value provider and a facilitator of trade and industry. Steps should be taken to give training to customs officials through a comprehensive HRD programme. The government should encourage establishment of training institutes to upgrade  the knowledge and skills of officials involved in servicing international trade, trading community, freight forwarders and customs house agents.

The customs should adapt cargo clearance systems to expedite clearance of imports. It should be kept open 24 hours and if it is not possible it should at least be opened from 9.00 to 21.00 hours. It should take steps to provide adequate transit warehousing facilities and bonded cargo. These are some of the few recommendations that could assist, facilitate and run our international trade smoothly.

The role of customs is very vital in facilitating international trade and in particular, in a land locked country like ours, it should be all the more concerned to improve its performance.