The government has banned the import of energy drinks including Red Bull and flavoured synthetic drinks in a move to check widening trade deficit.
Though the importers have expressed serious concern over the ban, the Ministry of Industry, Commerce and Supplies published the notice to ban the import of energy drinks and flavoured synthetic drinks in the Nepal Gazette on June 17.
The notice reads that the government has completely barred import of caffeine mixed energy drinks after the cabinet’s approval of National Working Guideline-2019 that has been brought to minimise the trade deficit.
The importers have expressed serious concern over the ban claiming that the ban is against the norm of international trade. “It will hit sales of Red Bull, one of the most popular energy drinks in Nepal,” according to the Indian agent of Red Bull. The agent today has written a letter to the Nepalese Embassy in India to clarify the government’s move to restrict the import of the energy drink.
According to advisor of Indian company of Red Bull energy drinks Deepak Mishra, unless and until the product is proven to harm human health and the environment, such restriction measure is unlawful.
The ministry, however, said the Department of Supply Management and Protection of Consumers Interest has been working on the technicalities over the restriction of specified energy drinks, though the ministry’s new move is only the revised provision of the order issued on November 2, 2009.
“The government can impose such restriction on any product, if it is found to pose a health risk to the public,” according to the ministry.
But trade experts claim that the move could send a negative message about Nepal in the international market. The government can adopt alternative measures to reduce the volume of import rather than imposing a direct restriction, according to the trade experts.
Likewise, Mishra also warned that the importer could seek legal recourse, if the government moves forward with the import ban.
Red Bull sells their products in 160 countries including in Nepal. Nepal imports the drink from India and Thailand.
Though the importers have expressed serious concern over the ban, the Ministry of Industry, Commerce and Supplies published the notice to ban the import of energy drinks and flavoured synthetic drinks in the Nepal Gazette on June 17.
The notice reads that the government has completely barred import of caffeine mixed energy drinks after the cabinet’s approval of National Working Guideline-2019 that has been brought to minimise the trade deficit.
The importers have expressed serious concern over the ban claiming that the ban is against the norm of international trade. “It will hit sales of Red Bull, one of the most popular energy drinks in Nepal,” according to the Indian agent of Red Bull. The agent today has written a letter to the Nepalese Embassy in India to clarify the government’s move to restrict the import of the energy drink.
According to advisor of Indian company of Red Bull energy drinks Deepak Mishra, unless and until the product is proven to harm human health and the environment, such restriction measure is unlawful.
The ministry, however, said the Department of Supply Management and Protection of Consumers Interest has been working on the technicalities over the restriction of specified energy drinks, though the ministry’s new move is only the revised provision of the order issued on November 2, 2009.
“The government can impose such restriction on any product, if it is found to pose a health risk to the public,” according to the ministry.
But trade experts claim that the move could send a negative message about Nepal in the international market. The government can adopt alternative measures to reduce the volume of import rather than imposing a direct restriction, according to the trade experts.
Likewise, Mishra also warned that the importer could seek legal recourse, if the government moves forward with the import ban.
Red Bull sells their products in 160 countries including in Nepal. Nepal imports the drink from India and Thailand.
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