Institutionalizing the Trade Facilitation Process in Nepal Purushottam Ojha Joint Secretary, Ministry of Industry, Commerce and Supplies Nepal.

Institutionalizing

the Trade Facilitation Process

in Nepal

Purushottam OjhaJoint Secretary,

Ministry of Industry, Commerce and SuppliesNepal.

National Transport and Trade Facilitation Committee (NTTFC)

The project was also instrumental in setting up a coordination body by the name of National Transport and Trade Facilitation Committee under the chairmanship of the Secretary in the Ministry of Commerce of the Government of Nepal. The Committee comprises of 18 members and the membership included as follows

Secretary, Ministry of Industry, Commerce and Supplies.

Joint Secretary, International Trade Division of Ministry of Industry, Commerce and Supplies.

Deputy Governor, Nepal Rastra Bank (Central Bank of Nepal)

Representatives from Ministry of Finance,

Ministry of Transport, Department of Customs.

Executive Director of Trade Promotion Center.

Chairmen of Federation of Nepalese Chambers of Commerce and Industry, Nepal Chamber of Commerce.

Chairmen of Nepalese Freight Forwarders Association (NEFFA), Nepal Insurers Association, Central Carpet Exporters Association, Export Councils, Nepal, Handicraft Association, Nepal, Nepal Garment Association and Nepal Goods Carriers Association.

Objectives of Facilitation Committee:

Facilitation  

Regulatory activity  

Development objectives 

Human Resources Development (HRD)  

NTTFC is composed of three key players of trade and transport sectors that are: Government, Service providers and Traders. It is also a consultative body for proposing facilitation recommendations to the government and private sector institution concerned.

Important tasks taken up by the Committee

Drafting of transport legislations. The legislations include Multi-modal Transport Act, Railway Act, Carriage of Goods by Road Act and the Marine Insurance Act.

The Committee considered the report submitted by the consultant on Simplification of the Procedure and Documentation for movement of Goods in Transit by Rail as well as by Road

Review of implementation progress of Nepal Multi-modal Transit and Trade Facilitation Project

Considered and debated the bid process for leasing out the multi-modal terminals under Nepal Inter-modal Transport Development Board

Various sub-committees formed to look into various portfolios

Documentation, Procedures and Banking Sub-committee,  Insurance Sub-committee  Facilitation Sub-committee

The formation of such sub-committees were done in an ad-hoc basis, as the need of resolving certain issues would appear while carrying out the implementation of the project.  Advantages of having Sub-committees under NTTFC has been towards finding a quick fix to some of the simple issues without going through the long bureaucratic process.

Some issues resolved at the initiation of Facilitation Sub-committee

Issue on Twenty-four hour cooling period for cargo in Tribhuvan International Airport

Willful damages to the export items while examining cargo at the airport by the reckless customs examiners.

The use of worn off stamps in GSP certification.

Stuffing of containers at Katmandu.

Hassles in obtaining visa by the buyers.

A one spot clearance center was opened at the initiation of NTTFC

Issues Related to Functioning of NTTFC Transfer of staffs and loss of institutional

memory,

Lack of fund to support the reform; Impact of Conflict:

Slow progress in operation of the only rail connected ICD;

Lack of diversification of activities of the Committee;

Transport sector not getting adequate place in allocation of job

Committee not able to take up the HRD and other developmental activities commensurate to the stated objectives.

Lack of professional staffs and experts to carry on the reform process.

Issues Related to Functioning of NTTFC

Measures for Improvement

Establish a well organized secretariat

Assume the presidency either by the Minister for Commerce or Minister for Transport.

Ensure equal mix of representation both from private and public sector in the committee.

Reorganize the Committee and Subcommittees with the clear delineation of the role and responsibilities

Networking with trade experts, research institutions and academician

NTTFC should be mandated to discuss and endorse any policy changes in the trade and transport sector

The Committee should prepare its annual plan and program in order to meet its goal and objectives.

A separate unit needs to be created under the Committee to look into the issue of transit

The Committee should be specifically mandated to provide technical inputs and guidance's in preparing national positions in the international trade, transit and transport cooperation negotiations.

Facilitation activities should be expanded at the sub-regional and regional level