NFTA urges commerce secretary to tackle cargo delays via India

KATHMANDU: A delegation from Nepal Foreign Trade Association (NFTA) met Dr Ram Prasad Ghimire, Secretary (Commerce and Supplies), at the Ministry of Industry, Commerce and Supplies on Tuesday. The delegation raised concerns about delays in cargo moving through Indian territory and other trade issues.

NFTA Secretary General Jayant Kumar Agrawal said cargo for goods imported to Nepal via Indian territory has been delayed for several months and urged the ministry to arrange additional trains for Nepali goods.

The association called for measures to curb the grey market by adjusting customs duties and other taxes to narrow the price gap between Indian and Nepali markets, citing recommendations from the High-level Economic Reforms Recommendation Commission.

NFTA asked for changes to the protocol of the Nepal-India Treaty of Trade to allow spare parts for machinery made in third countries to be imported from India. It said current rules prevent parts available in India from being brought into Nepal, causing long repair delays when parts must be imported from the country of manufacture and driving goods into unauthorised channels across the open border.

The delegation demanded the immediate resumption of export cash subsidies, which the government recently suspended, and called for amendments to difficult provisions in the Agency Act. NFTA also stressed the need for a one-door policy for firm renewal.

NFTA asked for a simplified system so government agencies can access submitted documents online from a single office. It urged clarity on the Maximum Retail Price (MRP) and criticised a rule requiring every firm to submit an annual turnover statement to the Department of Commerce as costly and burdensome.

The association opposed bans on the import of essential daily-use goods, saying such bans encourage unauthorised imports, reduce revenue and halt legal trade. It also expressed dissatisfaction with the government’s decision to cut the cash transaction limit from Rs 1 million to Rs 500,000.

In response, Secretary Ghimire said he has formed a committee to study the import bans and will take steps to address the issues raised.

The NFTA delegation was led by President Shiv Kumar Agrawal and included Secretary General Jayant Kumar Agrawal, Secretary Bishnu Kumar Joshi, and executive members Mayank Kedia and Akash Golchha.