NCC discusses Incoterms 2020; warns of land‑trade problems

KATHMANDU: A discussion on the practical dimensions of Incoterms 2020, issued by the International Chamber of Commerce (ICC) for global trade facilitation, was held in Kathmandu on Friday. The event brought together Nepal Chamber of Commerce (NCC) officials, bankers, finance experts and other stakeholders.

The programme was organised in collaboration with the NCC ICC desk and ICC headquarters as part of the NCC’s Diamond Jubilee celebrations, and participants examined the effectiveness of Incoterms 2020 and their relevance to Nepal’s import–export practices.

Rajesh Kazi Shrestha, Chairperson of the NCC Diamond Jubilee Main Organising Committee and former president of NCC, said that for a landlocked and developing economy like Nepal, coordination among the Ministry of Industry, Commerce and Supplies, the Department of Customs, Nepal Rastra Bank, banks and insurance companies, as well as importers and exporters, is essential to make international trade secure, transparent and effective.

Shrestha said Incoterms 2020 play a crucial role in clearly defining responsibilities, risks and costs between buyers and sellers, and are vital for aligning Nepal’s existing practices with internationally recognised standards. He said that problems arise when Incoterms intended for maritime transport are applied to land‑based trade without a clear understanding among stakeholders. "Nepal carries out imports and exports with neighbouring countries like India and China through land routes. However, during these commercial transactions, problems arise in settlement, customs procedures and banking transactions when Incoterms meant for maritime transport are used for land‑based trade due to a lack of clear understanding among stakeholders," he said.

On the occasion, NCC President Kamlesh Kumar Agrawal highlighted a lack of awareness and technical knowledge of Incoterms 2020 among small, medium‑sized and new entrepreneurs. He added that formal training or awareness programmes are limited in Nepal and that, in some cases, even employees involved in customs and trade facilitation, as well as importers and exporters, lack sufficient information.

Agrawal also noted that Nepal’s landlocked status complicates the use of transport‑related Incoterms because of weak transport infrastructure and reliance on Indian ports such as Kolkata and Visakhapatnam.