The expert says, ”The government made a mistake by removing the quantitative restrictions on smuggled betel nuts, it may affect other items that are exported.”
The government has removed quantitative restrictions on smuggled betel nut, plantain and pepper to allow the newly opened industries to import. Last Thursday, the Ministry of Industry, Commerce and Supply published a notice in the gazette to allow the importation.
Govinda Bahadur Karki, Secretary of the Ministry, said that the ban on the import of banana, betel nut and white and black pepper for industrial purposes has been lifted in the financial year 2081/82.
After the increase in the smuggling of betel nut, banana, pepper and chokada, the government imposed a ban on the importation of the goods in accordance with Section 3 (1) of the Export Importation (Control) Act, 2013 on 24th Chait, 2076. The then Finance Minister Yuvraj Khatiwada had imposed a ban to increase foreign exchange reserves when the Covid-19 epidemic was on the rise. After the economy started running, quantitative restrictions were imposed by removing the complete ban by publishing a notice in the gazette on 9th Chait, 2077. After that, the import permission was given by making 'procedures for managing the importation of betel nut, banana and pepper, raw materials required for industrial purposes by the manufacturing industry 2078'.
In the financial year 2077/78, quantitative restrictions were imposed so that industrialists could import 80,000 tons of bananas, 25,000 tons of betel nuts, 5,000 tons of chickpeas, and 15,000 tons of unwashed pepper in a year. At that time the Prime Minister was KP Sharma Oli. Even now, the Prime Minister is KP Sharma Oli. Now the ban has been lifted to open up new industries.
The procedure initially gave the right to grant a license of a maximum of two hundred tons for one time. Later, the procedure was modified and given as per the demand of the industrialists," said an official of the ministry, "now the procedure has also been cancelled. And, the import has been opened for industrial purposes.' The Department of Industry is making a new procedure.
After the quantitative restriction, there was a loud 'lobbying' of industrialists. It was distributed according to demand influenced by middlemen. Now, the old procedure has been abolished to provide import facility to the new ones as well. Before importing, the industry should have been operating for at least five years. Now it has been published in the gazette to allow newly opened industries to import as well, said the official. In the gazette published on Thursday, it is mentioned that manufacturing industries will be allowed to import banana, betel nut and pepper as raw materials for industrial purposes. But how much will be given has not been disclosed. This means that all industrialists can bring their own custom.
Even though it is said to be for industrial purposes, the purpose is smuggling, said Ravi Sainju, former joint secretary of commerce. "The removal of the ban by the government is encouraging smuggling. This does not happen in bilateral trade, open border leads to smuggling, it has happened in the past as well,'' said Sainju, "it spoils the relationship between the two countries. India can tax other items that are exported negatively.'
The Indian side has been repeatedly raising questions about betel nuts. The same question was raised during the visit of the then Industry, Commerce and Supply Minister Romi Gauchan Thakali. "At that time, Indian officials complained to the minister about this matter. After that, the ministry took some measures," said Sainju, "now smuggling has intensified again. The government will think for the nation rather than the businessmen. Betel nuts produced in Nepal can be exported. But it has been smuggled by importing it from third countries.'' Betel nuts are imported from Indonesia, Malaysia, Canada and other countries. In the six months of the current financial year, betel nuts worth 41.17 million have been imported. In the last fiscal year, 1 billion 584 million worth of betel nuts came.
The Ministry of Agriculture and Livestock Development has said that domestic production is low. The annual production of the country is 8.5 thousand tons. It does not meet the demand. To meet the demand, we have to import. But experts say that it is being smuggled through unnatural imports. "Gudkha can be exported by adding some value by importing betel nuts. But betel nuts were smuggled here, said Sanju.
Exporting betel nuts to India will only face non-customs barriers. Non-customs barriers require certificates such as food license, certificate of origin, quarantine. Because it will be difficult to complete the same process, they have chosen the route of smuggling. After the increase in smuggling, a sub-committee under the Committee on Industry and Commerce and Labor and Consumer Affairs and the Sustainable Development and Good Governance Committee of the National Assembly investigated. But the government is deciding to open the import by ignoring the directive.
It is mentioned that when the government gives the permission, the Department of Industry will carry out necessary investigations and determine the quantity of raw materials required for the relevant industry and recommend to the Department of Commercial Supply and Consumer Protection for the importation of specified goods. It is mentioned that commerce will give permission within the approved scheme and approved quantity limits received from the industry. "In the case of newly established industries, a copy of the industry registration certificate is required for VAT, a copy of the PAN registration certificate and a copy of the annual approved scheme of the industry's production capacity," the gazette said, "the details including self-declaration of operations and production targets should be submitted in the current financial year." It is also mentioned in the gazette that a copy of the tax payment certificate of the last financial year, the production capacity of the industry, the operating conditions, operations in the current financial year and the production target should be self-declared. A copy of the annual approved scheme of the industry, details including the amount of raw material imported in the previous financial year, the amount of the product and the amount of savings should also be submitted.
