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Oct. 28 – India and Nepal signed a new trade treaty yesterday that will lower export taxes to Nepal and simplify the export refunds procedure with no discrimination on the basis of payment modality or currency of payment.
It will also benefit Indian companies that manufacture in Nepal with floriculture products, atta, bran, husk, bristles, herbs, stone aggregates, boulders, sand and gravel added to the list of products that can be imported duty-free into India.
Previously, exporters to Nepal were not refunded excise duty unlike similar exports of goods in convertible currency. The Economic Times reports that Indian exporters will be eligible for an exemption on customs duty on import of items equivalent to the excise duty paid by them, which is reimbursed to the Nepalese government by the Indian government.
“It will also allow Indian exports to avail benefit of export promotion schemes prevailing in India, making these products more competitive for sale or value addition in Nepal,” Indian Commerce and Industry Minister Anand Sharma told The Economic Times.
The new treaty will be valid for seven years and will allow bilateral trade via international airports in Delhi, Mumbai, Kolkata and Chennai.
