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FNCCI monopoly of CO issuance ends
KATHMANDU, MAY 21 -
The government has authorised the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI) and Nepal Chambers of Commerce (NCC) to issue certificate of origin (CO) for Nepali exports to the third country.
This has ended FNCCI’s monopoly in CO issuance.
For export to India, exporters will get certification under the Trade and Export Promotion Centre (TEPC). It means TEPC will do it through these industrial and trade bodies under its banner. “The decision about issuing the certificate of origin to the third country export will be effective from today,” said Purushottam Ojha, secretary at the Ministry of Commerce and Supplies. However, the new provision on CO for export to India will be implemented from July 17, the first day of the next fiscal year. “Until then FNCCI will continue issuing the certificate,” Ojha added.
As per the government’s decision on Nov 24, 2009, only FNCCI had been issuing such certificates to third country exporters as well as India.
A minister-level meeting on Friday came up with this provision following controversy between FNCCI and CNI over the sharing of funds collected as certificate issuance fees. The FNCCI charges 12 paisa on every Rs. 100 worth of export out of which CNI gets 1.3 paisa as its share.
The FNCCI has been issuing certificates of origin for export to India for the last 30 years.
Meanwhile, the FNCCI has stated that it sent a cheque of Rs. 341,000 as a share of CNI on Thursday as per the provision made by the government last November.
Hemanta Dawadi, director general of the FNCCI said that they had collected Rs. 6.82 million during the period of Jan. 15 to April 13, 2010 from certificate issuance and had sent cheques of Rs. 524,000 to TEPC and Rs. 400,000 to Federation of Nepalese Cottage and Small Industries. CNI President Binod Chaudhary welcomed the government’s move saying that it would create an environment for healthy competition among the three CO issuing bodies.
“The government’s decision ended the monopoly of FNCCI and ensured the rights of the CNI that it sought for long,” said Chaudhary. “It has also given the exporters a right of choice and a level playing field.”
He also urged the FNCCI to work together with CNI on business community’s issues. Pradip Jung Pandey, FNCCI vice-president, expressed ignorance about the new provision.
Posted on: 2010-05-22 08:54
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