FNCCI supports test of valuation database system at Biratnagar Customs Office

KATHMANDU: The government has successfully tested the much-awaited valuation database system at the Biratnagar Customs Office, a digital resource that is being initiated for the first time in Nepal.

The system, which was inaugurated by Finance Minister Rameshore Prasad Khanal on September 25, replaces the prevailing reference book and is mentioned in the General Agreement on Trade in Services (GATS) under the World Trade Organization (WTO); it is in use in most countries.

Under this method, the price details of all cleared goods will be collected to allow analysis and comparison of goods presented for customs clearance, which helps in identifying the transaction value.

The government expects the system to address complaints from entrepreneurs about the reference book, which is revised every six months.

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) had been demonstrating to the government the possibility of online valuation according to GATS valuation for several years, and FNCCI demands that price determination should be done in full compliance with the methods mentioned in WTO/GAQ/Valuation Article 7 so the transaction value is determined accordingly.

FNCCI President Chandra Prasad Dhakal urged entrepreneurs and businesspeople to utilise the valuation process, which has currently started as a pilot from Biratnagar, and urged the government to initiate this service at all customs points.

As the online database system is recognised by the WTO, it is a scientific method and is expected to address the problems of under-invoicing and over-invoicing, which form part of the informal economy in Nepal, to a great extent.