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Recognizing the need for greater efficiency in procedures related to international trade, this study was undertaken to examine the processes involved in the export of vegetable ghee from Nepal to India and China and in the import of textiles from India. This research was conducted as part of a regional study by the Asia-Pacific Research and Training Network on Trade (ARTNeT) on Improving Regional Import-Export Procedures and Processes

By Pushpa Raj Rajkarnikar
Recognizing the need for greater efficiency in procedures related to international trade, this study was undertaken to examine the processes involved in the export of vegetable ghee from Nepal to India and China and in the import of textiles from India. This research was conducted as part of a regional study by the Asia-Pacific Research and Training Network on Trade (ARTNeT) on Improving Regional Import-Export Procedures and Processes. Nepalese vegetable ghee is mainly exported to India and China and is exported by road transportation. India provides preferential entry of Nepalese vegetable ghee under the bilateral trade agreement, but there is quota on the quantity of vegetable ghee imported into India from Nepal. Most vegetable ghee exports to India are on an advance payment basis, while to China all vegetable ghee is exported on this basis.
For exports of vegetable ghee to India, the process consists of 15 steps and the exporter must visit 12 institutions and prepare 26 documents. The process takes an average of 41 days, and the cost per container is 1,067 USD. For exports of vegetable ghee to China, the process consists of 13 steps and the exporter must visit nine institutions and prepare 21 documents. The process takes 11 days on average and the cost per container is 834 USD.
Textiles are one of Nepal’s major import items. They are mostly imported by road transportation through specific custom points, on an advance payment basis. The import process involves 10 steps and the exporter must visit five institutions to complete the process and prepare 12 documents. The process of importing textiles into Nepal takes six days, on average, and costs 320 USD per truck.
From the study findings, it has been observed that trade can be facilitated by addressing five main problems:
1. The present system of requiring recommendation letters from three agencies to obtain a share of the export quota.
As FNCCI is an umbrella organization, regulations should be revised so that a recommendation letter is only required from FNCCI.
2. Lack of recognized laboratories in Nepal, requiring vegetable ghee exporters to have their products tested in laboratories in India instead of in Nepal.
It is recommended that emphasis be placed on developing in Nepal the capacity and facilities necessary to facilitate trade.
3. The problem of traffic congestion on the roads between Nepal and India.
Nepal and India have agreed to establish integrated check points (customs) on major trade routes between these two countries. It is recommended that this project be expedited.
4. Shortage of trained human resources in customs.
To make customs clearance more efficient, human resources should be developed.
Furthermore, the citizen charter should be followed to reduce clearance time.
5. Delays in payment settlement.
The study shows that payment settlement through banks is excessively time consuming.
An in–depth study in this regard is needed.

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