Nepal had repeatedly requested Indian authorities not to impose additional lock, as it would be time consuming inflict additional cost to Nepali importers. Nepali officials had argued that the imposition of additional lock on goods in transit would be against trade facilitation, which is promised by bilateral transit treaty. [break]
"The spirit of the bilateral treaty is to lessen documentation and facilitate Nepal´s third country trade through one-time lock system. Sadly, the Indian government turned deaf ears to our request and imposed additional lock from August 1," said a source at Nepali Consulate General´s Office in Kolkata.
Under the new system, Indian customs officials can unlock any container already sealed at Kolkata port.
India had given indication of enforcing the additional one-time-lock system in Kolkata port after Nepali officials during the Inter-Governmental Sub-Committee (IGSC) meeting in New Delhi agreed to impose double lock system in the newly opened Visakhapatnam Port.
Nepal had agreed in principle to impose additional lock on imports via the new port mainly, considering the distance between Visakhapatnam and Birgunj, the Nepali border point, which is more than double the distance between Kolkata and Birgunj.
“We had agreed on additional lock system, considering concerns of possible trans-shipment of goods raised by the Indian officials and also in the hope of using the new port at the earliest,” said the source.
However, instead of bringing the Visakhapatnam port into operation, India enforced the provision in Kolkata port, creating fresh problems for Nepali importers.
Trade experts said the new move by the Indian government would seriously affect the movement of third country goods to Nepal. “Imposition of additional lock means checking of Nepal bound containers several times by Indian officials. This will not only increase transit time but also drive up the cost of transport,” said Dr Posh Raj Pandey, executive chairman of South Asia Watch on Trade, Economics and Environment (SAWTEE).
Pandey said the new move is against the spirit of bilateral trade facilitation, as it obstructs movement of goods to Nepal contravening with the letter and spirit of bilateral Trade and Transit Treaty between the two countries.
Nepali traders are also worried about possible hassles and higher cost of shipment in coming days. “The new decision by India would push up the transport cost, as traders will have to waste additional time on transit. Rise in transportation cost will make imported goods dearer in Nepal,” said Madan Mittal, member of Nepal Overseas Traders Association.
Traders said they will have to face additional hassles during delivery of goods at the state-owned Kolkata port where they have already been paying huge demurrage charge due to delay in clearance of goods due to unnecessary bureaucratic problems.
Administrative hassles, congestion and low draft berth are the major obstacles that Nepali traders are facing while clearing goods from the Kolkata port.
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