In an attempt to encourage trade with Nepal, the government has revised the procedures for importing quota products from the country.
The products for which the procedures have been simplified include acrylic yarn, copper products and zinc oxide.
The cumbersome procedures related to obtaining quotas following the revision of the Indo-Nepal Trade Treaty in March 2002 had restricted the level of imports from the country.
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In April-December 2002, only 709.7 million tonnes of acrylic yarn was imported from Nepal, as against a quota of 10,000 million tonnes.
Similarly, imports of zinc oxide stood at 240.6 million tonnes, as against a quota of 2,500 million tonnes.
The government has decided to appoint monitoring agencies for the import of these items. In the case of acrylic yarn, the monitoring agency will be the Textiles Committee under the ministry of textiles, while the Mines and Mineral Trading Corporation (MMTC) will monitor the import of copper products and zinc oxide up to their respective tariff quota ceilings.
As per the new procedures notified by the Central Board of Excise and Customs, the Nepalese government will distribute quotas through allocation letters up to the prescribed tariff quota limits to Nepalese exporters.
They will then be issued a passbook by MMTC for import of copper products and zinc oxide and by the Textile Committee for import of acrylic yarn.
The Customs authority will be required to make an endorsement on the passbook against each consignment of export cleared through the Land Customs Stations for import into India.
The amount should not exceed the total tonnage allotted to the Nepalese exporter holding the passbook.
In order to keep track of imports into India, Nepalese exporters will be required to forward a set of copies of the invoice, bill of entry, and a photocopy of the passbook duly endorsed by the Land Customs Stations of India to the Textile Committee and MMTC within seven days from the date of export.
Since the year is drawing to a close, 30 days from the date of allotment mentioned in the passbook will be allowed for the entry of a consignment of acrylic yarn up to the allocated quantity.
A maximum of 30 days from the date of expiry as mentioned in the passbook will be allowed for import of copper and zinc oxide.
That would help in utilising the quotas for the current year, said officials.