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The provision raises transport cost from Kolkata port to Nepali border by as much as five times compared to the existing cost. [break]
So far, importers had been bringing four-wheelers on-its-own-power (by driving) to Nepal from Kolkata port.
Chandra Ghimire, Nepal"s Consul General in Kolkata, told Republica over phone that four-wheelers meant for Nepal have been stuck in Kolkata port for the past three weeks.
The Indian government had issued the new notification in the first week of May.
“Not a single four-wheeler meant for Nepal has left the Kolkata port since the new notification was enforced as transportation cost from Kolkata to Nepali border towns is very expensive,” Ghimire said.
According to Ghimire, cost of driving a vehicle to Nepali border from Kolkata port stands at around IRs 3,750. The cost goes up by five times if the vehicle has to be transported by container.
“Besides, Nepali importers have to face administrative hassles and go through lengthy procedures to transport goods from Kolkata customs under the newly imposed system,” added Ghimire.
The Nepali side had raised the issue before Indian officials at a meeting of customs officials from both countries held in New Delhi last week. According to Ghimire, Indian officials have assured the Nepali officials that they would soon revoke the new system.
“We have already received verbal assurance from the Indian side. They have told us that they would scrap the new system soon,” Ghimire added.
Indian officials had told Nepali officials that the new system was imposed as per the existing Nepal-India Transit Treaty that allows Nepali traders to transport third-country imports of four-wheelers by rail wagons and containers.
Anjan Shrestha, executive member of Nepal Automobile Dealers Association (NADA), said Nepali automobile dealers have not imported vehicles from Kolkata port since the first week of May due to lengthy administrative procedures and excessive cost. “We are not in a position to bring vehicles from Kolkata under the new provision as it drives up our transportation cost. Also the customs clearance process is full of hassles,” added Shrestha.
Suraj Vaidya, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), who is also the distributor of Toyota cars in Nepal, said he had raised the issue before senior officials at the Ministry of Commerce and Supplies (MoCS).
According to Indian customs officials, as many as 300 cars were lying in the customs yard of Kolkata port before the new system was enforced. Seventy cars have landed at the Kolkata port since the new rule came into effect.
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