KHATMANDU: India has withdrawn additional customs duties levied on import of jute products from Nepal. The anti-dumping duty, however, continues.
A Gazette notification on April 20, said Nepal is eligible to get exemptions from additional duties on jute sacks and bags similar to Bangladesh which was granted the exemption in February 2011.
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“In the said notification (February 14, 2011), after the words “from Bangladesh”, the word “or Nepal” shall be inserted,” the notification said.
Nepal has a minuscule 150 tonnes a day capacity to produce jute goods. This is two to three per cent of India’s annual capacity of 1.9 million tonne. The Himalayan country has 11 jute mills of which six are operational.
Considering low domestic consumption, the survival of Nepal’s jute industry is dependent on Indian imports. In December 2016, India slapped 12.5 per cent additional duty on jute goods imports from Sri Lanka, the Maldives and Nepal. This was followed by imposition of anti-dumping on jute products from Bangladesh and Nepal in January this year.
Prakash Mundara, Secretary-General of the Biratnagar-based Morang Merchants Association in Nepal, believes the additional duty was imposed “by mistake”. Mundara pointed out that the bi-lateral treaty didn’t have scope for such duties and the Nepalese jute industry benefits Indian farmers as well. According him, with anti-dumping still on, Nepalese jute industry is now treated at par with Bangladesh.
“This is a positive development for India-Nepal relationship. It will help people in either country,” Mundara said.
