India agrees to simplify procedures at Kolkata Port

India agreed to redesign and simplify customs declaration form at Kolkata port and introduce internationally accepted online system (automation) that is expected to help Nepali traders clear customs procedure without much delay and ultimately reduce their time and cost for third country trade via Kolkata port.
In a joint secretary level meeting held in Kolkata between Nepali and Indian customs authorities on trade and transit procedure simplification, the Indian side agreed on a number of issues that are expected to boost Nepal’s trade with third country.
India has also agreed to operationlise Birgunj dry port as a full-fledged international port for which Nepal will have to give a proposal to Indian authorities through proper diplomatic channel, according to Nepal’s consular general to Kolkata Chandra Kumar Ghimire, who was a member in the Nepali team.Once the proposal is implemented, Nepal will not have to change shipping liners at Kolkata port, nor will it have to deal certain procedures with Kolkata port.
"Once our Birgunj dry port operates as a full-fledged international port, it will reduce number of days ultimately reducing transportation cost and increase our trade competitiveness,” Ghimire said.
Under the current procedures Nepal’s inbound and outbound shipments have to go through same set of procedures both at Birgunj dry port and at Kolkata port.
Similarly India has also agreed to set up a periodic hearing mechanism at Kolkata port where port authorities, Nepali representatives from Consulate General and stakeholders would discuss problems faced by the Nepali traders.
India has agreed to reduce security related signatures on Nepal inbound and outbound shipments, Ghimire said, adding that according to new understanding, Indian side will take up the issue of delay and demurrage issues with the concerned authorities, Kolkata Port Trust and Kolkata Customs Department.
Both sides agreed to hold a meeting of technical authorities in Kathmandu in second fortnight of February where shipping line and Kolkata port authorities will discuss relevant issues.
Nepali traders have long been complaining about the problems of administrative hassles, congestion, delay and high demurrage charges at Kolkata port through which Nepal does almost all its third country trade.
On the issue of automation both the sides agreed to integrate Nepali and Indian customs authorities including Nepal’s Consulate General in the process. Nepal wants the shipping companies to have transparent and uniform charges for all traders that import export goods from third countries via Kolkata port.Indian customs commissioner at the Central Board of Excise and Customs Sandeep Kumar led 12-member Indian team while joint secretary at the Ministry of Commerce and Supplies Naindra Upadhyay led six-member Nepali team.
Representatives from Nepal Inter-Modal Transport Development Board and Department of Customs also took part in the meeting.
Prior to the meeting Nepali team had visited Vishakhapatnam Port to observe customs clearance and automation process there before discussing issues with Indian authorities in Kolkata.