Confederation of Nepalese Industries (CNI) urged the government to grant them the right to issue Certificate of Origin (CO) back.
The ministry of trade has given the right to issue CO -- a facility offered primarily to export-based industries -- Federation of Nepalese Chamber of Commerce and Industries (FNCCI), though CNI also used to issue the CO till six months ago.
CNI today demanded it to be treated equally with FNCCI and give it back the right to issue CO. "Most of the exporters are with us," claimed Binod Chaudhary, president of CNI and CA member during a programme organised in the capital.
However, the ministry decided to give the right to issue the CO to FNCCI only on November 24, 2009. According to the decision, the FNCCI will charge 0.12 per cent and the accumulated fund will be distributed among the district chamber, FNCCI, concerned commodity association and bilateral association, Trade and Export Promotion Centre, CNI and for institutional development. "However, we have not got our dues," complained Chaudhary. "The government should implement its own decision," he added.
"The fund is meant to be utilised in the export promotion," said Narendra Basnyat vice-president of CNI. "CNI needs its fair share of resource allocation to continue activities and continue its role of being a key catalyst in the nation's growth and development."
"The ministry must ensure the right of the exporter to chose the organisation from which it wants to issue it's CO," Vijaya Shah, founder chairman of Jawalakhel Distillery and Himalayan Distillery, said adding that it is a fundamental right to economic freedom.
Meanwhile, commerce and supply secretary Purushottam Ojha said that the CO issuing authority also has to have competency.
"Otherwise, Nepal will get bad name in the international market." he said adding that the country need to give CO to export its goods to the European countries that has given it Generalised System of Preferences (GSP) that is a formal system of exemption from the more general rules of the World Trade Organisation (WTO). Specifically, it's a system of exemption from the most favoured nation principle (MFN) that obligates WTO member countries to treat the imports of all other WTO member countries no worse than they treat the imports of their 'most favoured' trading partner.
In case of India, he said that only one institution that the government has recommended can issue CO according to the Nepal-India trade Treaty. "But for the third country both CNI and FNCCI can issue the CO," he added.
Minister for Trade and Commerce Rajendra Mahato agreed with the secretary. He advised the entrepreneurs to share the fund according to the ministerial decision. "But if there is a problem," Mahato said, "the ministry can think of constituting a neutral agency as suggested by the entrepreneurs."
CNI to expand
KATHMANDU: CNI has decided to expand its branches in all the districts across the country. The organisation that was established some nine years ago has no district branches till now. According to CNI, more than 125 corporate houses, leading institutions, multinational companies are its members, who represent more than 1,000 companies and above 400 industries. The organisation that provides 50,000 direct employment and 150,000 indirect employment opportunities and has turnover of 35,0000 million -- has middle and large exporters. It is developing itself as a think-tank and contributes to above 50-90 per cent in most major sectors of the economy and has footprint across all major cities, towns, and industrial regions from Mechi to Mahakali, CNI claimed