They also expressed commitment to check illegal trade of parts of endangered animals and plants at the 26th Nepal-China Annual Border Customs Meeting on Customs Harmonization and Trade Facilitation concluded in Kathmandu on Friday.[break]
“Effective measures will be taken on behalf of both countries to contain cross border smuggling of goods including gold,” the agreement paper reads.
Though Nepal had been requesting for Chinese support to control smuggling, Chinese officials had expressed commitment only verbally so far. This time, Chinese officials have expressed written commitment to control cross border smuggling.
Different forest products such as red sandalwoods, orchid and Yarshagumba as well as parts of endangered animals like pangolins, tortoises, elephants, tigers and leopards, are being smuggled to China. Similarly, gold is being smuggled to the Nepali market from China to supplement the supply deficit of the yellow metal.
Over the past year, police have seized more than 50 kg of gold being smuggled to Nepal from China.
Damodar Regmi, deputy director general of the Department of Customs and Liu Jiang, vice-commissioner of Smuggling and Drug Control Unit in Lhasa, signed the agreement on behalf of their respective governments.
“We are hopeful that this agreement will help control cross border smuggling of goods which has been affecting bilateral trade,” Mimansa Adhikari, chief of Tatopani Customs, who also participated in the meeting, told Republica.
Similarly, the two sides also held extensive discussion on the prospect and challenges existing in bi-lateral trade and decided to promote Nepal´s exports to China.
According to Trade and Export Promotion Center (TEPC), Nepal suffered trade deficit of over Rs 66.13 billion with Asia´s largest economy during fiscal year 2012/13. Though China has offered duty free access to over 8,000 Nepali goods to its market, Nepal failed to take benefit from the facility. Nepali traders say administrative hassles by Chinese customs officials and lack of recognition to quarantine certificate issued by Nepali labs have been hampering Nepal´s trade with China.
In a bid to promote formal trading and payment system in trade, the meeting also decided to encourage used of Letter of Credit (LC) to gradually discouraging payment through draft and illegal channels like hundi.
Similarly, the Chinese side has agreed to convey the request of Nepali officials for recognition of quality certificates issued by Nepali labs to concerned Chinese officials. They have also agreed to do the needful to ease administrative procedures at border points, harmonize office hours at both customs points and upgrade the facility of Rasuwa and Kerung customs to facilitate bilateral trade.
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