The private sector has complained that the government is not interested in solving problems related to industry and trade. The Birgunj Chamber of Commerce and Industries (BCCI) expressed this concern in a letter to the bodies responsible for facilitating industry and trade.
Madhav Rajpal, vice president of BCCI, stated that they have written to the Department of Customs, the local customs office, and the trade committee of the Federation of Nepalese Chamber of Commerce and Industry, noting that the business environment has become uncomfortable due to the unreasonable procedures followed in customs clearance.
"Even though we have repeatedly suggested solutions to the problems in customs management, the suggestions from the private sector have not received due attention from the government," said Rajpal, adding, "We have pointed out where the problems lie and which policy reforms would help industries thrive and boost business. These changes would also increase government revenue. However, no one is listening."
BCCI claims that if the government implements the private sector's suggestions, it would not only ease business operations but also increase revenue. Industrialists highlighted the biggest issue: the customs reference price book.
Anil Kumar Agarwal, president of BCCI, explained that customs penalize importers if they submit invoices lower than the reference price book, forcing them to submit inflated invoices. He informed, "The excess amount is returned to Nepal through illegal hundi transactions. This practice of imposing penalties should be abolished as it encourages illegal activities."
Businessmen have also raised concerns about customs offices seizing bond amounts without notifying the concerned businesses when there emerges disputes over customs duties.
While customs valuations of imported goods are decreasing globally, BCCI claims they are increasing in Nepal. Importers argue that customs officials are making trade difficult under the guise of trade facilitation. They alleged that the officials refuse to acknowledge bills despite having the same HS codes internationally.
Importers have also objected to the valuation of tiles imported from India. While branded and non-branded tiles have a price difference of 10 to 15 percent, the BCCI disagrees with adding 35 percent to the valuation of well-known brands.
Industrialists further argue that the valuation process for items such as electric drill machines, medicines, food grains, spices, and lighters is unreasonable. They claim that similar goods are being evaluated differently at various customs offices. The industrialists have also suggested improving the revenue rates collected by customs, pointing out discrepancies between the revenue for raw materials and finished products.
Industrialist Ravindra Baranwal noted that raw materials like ABB board, TC board, and duplex, used by the printing and packaging industries are being treated the same as finished goods, which has led to the collapse of local industries.
To facilitate trade, the association has demanded development of infrastructure for small customs and checkpoints alongside the larger ones. Hari Gautam, senior vice president of BCCI, emphasized the need for cold storage at the ICP and effective management of scanners and reliable laboratories. Traders also complained about the poor quality of the automated customs system.
Importers have further objected to the entry fee of Rs 1,500 per truck entering customs, introduced this year.