Draft LoE on vehicle imports ready

REPUBLICA KATHMANDU, Jan 4: The government has prepared a draft of bilateral Letter of Exchange (LoE) for allowing transport of vehicles, imported from third countries via India´s Kolkata Port, to the Nepali border ´on their own power´. “We have prepared a draft of LoE and are in the process of getting inputs from line agencies such as the Department of Customs (DoC), foreign ministry and law ministry. After incorporating their inputs, we will forward the draft to the cabinet for approval,” an official at the Ministry of Commerce and Supplies (MoCS) told Republica on Friday. Once it is approved by the cabinet, the MoCS will send the LoE to India via foreign ministry. The recently held Inter-government Committee (IGC) meeting decided to allow Nepal to transport vehicles imported form third countries to the Nepali border on their own power. The Nepal-India Transit Treaty requires traders to use only wagons or containers to transport such vehicles to Nepal. The MoCS has already sent another LOE, on implementation of the agreement that allows Nepal to export third country goods via the Indian port, to India. The agreement was signed at the IGC meeting held in Kathmandu in December 2013. “We have already forwarded the LoT to the concerned Indian authority. We are waiting for the southern neighbor to sign it,” the official added. Traders are facing difficulties in exporting different goods and equipment brought to Nepal from countries other than India for various purposes like trade fairs, aviation, diplomatic purposes, and development projects, as bilateral transit treaty bars Nepal from sending back goods to their countries of origin through the Indian territory. In June, India had stopped allowing third country vehicles imported by Nepal through its port. Similarly, it had also stopped allowing export of third country goods to the countries of origin citing bilateral transit treaty. Following diplomatic pressure from Nepal, India has lifted the restriction till January 9. “We are hopeful that both the LoEs will be signed by both the countries before January 9,” the official added. In a bid to expedite implementation of the agreement signed in IGC, the MoCS has prepared an initial draft of a work plan, setting deadline and specifying executing agencies. “We will sit with line agencies soon to finalize the draft so that implementation process becomes smooth,” the source added. During the meeting, both the countries agreed on most of the points that are important for bilateral trade.
Published on 2014-01-04 06:12:50