Chinese goods no longer cheaper

KATHMANDU, Dec 25: Chinese apparels, shoes, cosmetics and electronics have become dearer by as much as 75 percent over the past three months mainly due to rise in customs valuation and appreciation of US dollar and Chinese Yuan vis-à-vis Nepali currency.



Skyrocketing price rise, meanwhile, have made things difficult for traders. “The depreciation of Nepali currency has greatly affected our business, as it made Chinese shoes expensive this winter,” said Mayjan Rai, owner of Foot Locker and Track n Trail at People´s Plaza. [break]



A Yuan is currently valued at Rs 13.40, up from approximately Rs 10 during Dashain festival about three months ago.



Tulsa Paudyal, proprietor of Jump -- a shoes store at People´s Plaza, echoed Rai and said hike in prices have made it difficult for her to meet sales target. “Upward revision in customs valuation has made Chinese footwear expensive by Rs 300 to Rs 400 per pair,” said Paudyal.



According to the Department of Customs (DoC), customs valuation of Nepal-bound Chinese goods has been raised by as much as 150 percent.



While the price of Chinese cosmetics has increased by up to 75 percent, electronic goods have become dearer by 35 to 60 percent.



Mahendra Joshi, a wholesaler of electronic goods at Maru, said the sale of Chinese electronics has dropped over the past few months. “People go for Chinese electronics because of their low price tag. But sales of these products have been affected due to price hike in recent months,” he added.



Price of Chinese cosmetics has increased in range of Rs 50 to Rs 300 over the period. Pramod Ghimire of Pravin Store at Mahabouddha said sales of Chinese cosmetics have been affected due to upward revision in customs valuation.



According to importers of Chinese goods at Khichapokhari-based R B Complex, Chinese goods have become dearer also because of rise in manufacturing costs in China itself amid massive labor shortage in coastal manufacturing hubs.



Customs valuation and price rise, however, have not affected import of Chinese goods via Tatopani customs, according to officials of DoC.



Not only Chinese goods, traders say even cloths and footwear imported from Thailand have become costlier due to weakening of Nepali rupee vis-à-vis Thai Baht.

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