Background studies
59
The need for and cost of selected trade facilitation
measures relevant to the WTO trade facilitation
negotiation: A case study of Nepal
Pushpa Raj Rajkarnikar*, Nephil Matangi Maskay and Shiva Raj Adhikari
Summary
Trade facilitation is a longstanding and traditional feature of the General Agreement
on Tariffs and Trade (GATT), which is expected to have serious implications for developing
member countries. This study aims to evaluate the need for and the cost of implementing
trade facilitation measures in Nepal in the context of the on-going WTO negotiation.
Nepal initiated market-oriented economic reforms in 1985. Trade liberalization
under the economic reform was significant. Trade facilitation, however, has received its
due attention only in recent years. The Government of Nepal introduced the Automated
System for Customs Data (ASYCUDA) in selected customs offices and implemented
a three year (2003-2006) Customs Reform Action Plan in the process of TF.
The major features of the current TF situation in Nepal include: Delays in customs
clearance; complications in customs valuation; time gap between publication and
implementation of policies and laws; lack of advance ruling system; low litigation rate of
appeal; lack of adequate coordination among border agencies and delays in clearance of
goods in the Kolkatta port. While the systems of advance lodgment, risk assessment and
audit based control are still at an early stage there, consultative and feedback mechanisms
between the Government and traders exist. But traders complain that their suggestions
are least considered among others.
A small-scale perception survey was carried out among importers and exporters.
The survey revealed that: current status of access and availability of information is
perceived as normal; there is gap between information supply and absorption capacity of
SMEs; documentation requirements are not excessive and time consuming; fees and
charges levied on export and import are reasonable; customs regulation is not a big
problem; arbitrary payments are often required to expedite the release of goods; ASYCUDA
system has not been able to produce desired level of result.
* Institute for Policy Research and Development (IPRAD, Nepal). The complete study is available
on the companion CD-ROM to this publication, as well as on the ARTNeT website at:
www.artnetontrade.org. The views presented in this paper are those of the author(s) and do not
necessarily reflect the views of the United Nations or any other ARTNeT members or partners. Any
remaining errors are the responsibility of the author(s).