The government has planned to form an independent body to issue Certificate of Origin (CO). A draft of the proposal has been forwarded to entrepreneurs for their opinion.
"After a row between the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Confederation of Nepalese Industries (CNI), the government is trying a find a middle path by creating an independent body," said a high-level government official.
"Once they agree on it, a joint secretary will head the body that will distribute the fees collected for issuing CO as it has been the crux of the dispute among the entrepreneurs' bodies," said the source.
Though, CO will be issued under the FNCCI banner, the body will mainly be responsible for the distribution of the fees. According to the proposal sent to the FNCCI and CNI, the issuing district chamber will get five paisa and the remaining seven paisa will be distributed by the 'new body' as prescribed.
The row surfaced on May 21, when the Ministry of Commerce and Supply (MoCS) gave rights to issue CO to CNI along with FNCCI and Nepal Chamber of Commerce (NCC).
But CNI claims that out of the total exporters, above 60 per cent are with them, the claim FNCCI refutes.
The new provision was expected to build competition among CNI, FNCCI and NCC to trap the CO market as according to the law, certificate-issuing institution gets 12 paisa per certificate. However, the umbrella organisation of the Nepali private sector has blamed the government for trying to create a division among the entrepreneurs.
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