India pushes Nepal to discontinue additional customs duty on agricultural products

Commerce officials of Nepal and India hold a meeting in Kathmandu in April 2018.

Kathmandu, April 27

India has piled pressure on Nepal to lift an additional customs duty of five per cent that Nepal imposes on import of agricultural products. Nepal, however, has refused to consider the request.

In a bid to promote domestic productions, Nepal imposes five per cent additional customs duty on agricultural products to be imported from India and China.

The Indian delegation has pressed Nepal to discontinue the duty, at the Inter-government Committee meeting of Commerce Secretaries that began in Kathmandu on Thursday.

“But we are not in the condition of withdrawing it. If we remove this duty, the import will surge as Indian products are cheap and the Nepali products’ market will collapse.”

During the two-day meeting, officials will discuss policy and technical issues about bilateral trade and commerce.

Nepal is presenting proposals on removing obstructions on the export of jute and ginger, and implementation of various bilateral agreements among others.


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