The inspection of imported goods has been affected at customs checkpoints across the country, including Birgunj Customs, since Tuesday. Businessmen say that this will disrupt the supply chain and also affect revenue collection.
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The private sector has objected to the provision that the mandatory maximum retail price (MRP) should be mentioned on all goods coming to the customs point and produced domestically, as per the notification issued by the Government of Nepal on Chaitra 10, 2005.
The inspection of imported goods has been affected at customs checkpoints across the country, including Birgunj Customs, since Tuesday. According to businessmen, this has caused disruption in the supply chain and has also affected revenue collection.
The Birgunj Chamber of Commerce and Industry, an umbrella organization of businessmen, has stated that the decision to unilaterally implement MRP without sufficient consultation with stakeholders is not private sector-friendly. The association issued a statement on Tuesday expressing its objection. The statement also accused the government of making the decision hastily, citing the provisions of the Consumer Protection Act, 2075 BS.
The statement signed by the association's president Hari Prasad Gautam states that MRP is implemented only on limited goods in neighboring India - FMCG and small machinery, but the provision to make it mandatory for all types of goods in Nepal is not practical. The statement states that there is no clear standard for determining the price of imported goods in a situation where prices in the international market are constantly changing and foreign exchange is fluctuating.
Since the issue of determining the profit base is also challenging for small retailers, the statement states that foreign suppliers are refusing to ship goods by mentioning the MRP as the quantity of goods imported into Nepal is low due to the small economy. The statement also states that the trend of changing the harmonic code at customs will also make it difficult to determine the MRP and that the government's policy of customs valuation of 40 to 50 percent of the MRP is not practical, and it warns that it will increase conflict between importers and the customs administration.
Stating that such a policy will increase the risk of goods entering through informal channels, the statement states that in the current situation, in-depth study, consultation with the private sector and market research are necessary before implementing the MRP. The association also demands that a committee be formed with the participation of the private sector and based on its recommendations, the MRP be implemented. The association has demanded that the country's supply system be affected if the problem is not resolved immediately and that the government reconsider its decision as soon as possible.
Birgunj Customs Office officer Amit Tiwari said that the customs' work was affected when they tried to enforce the rule that MRP should be mentioned on imported goods. 'This rule was supposed to be implemented from Tuesday, but it was not implemented on industrial raw materials and bulk items,' he said. 'But since it was found that the same was not the case even for items that had to be opened or come with MRP attached, we did not inspect them.'
He informed that the revenue collected by the customs was also affected after the inspection was affected. '80 to 90 percent less revenue was collected on Tuesday than on normal days,' he said. Birgunj Customs is currently collecting around Rs 60 to 65 crore revenue daily on normal days.'
