Question : IMPORT FROM NEPAL



(a) whether various business associations, Members of Parliament have drawn the attention of the Government regarding import of vanaspati, photo rolls, winding wire other items from Nepal to India;

(b) if so, whether such items have maximum customs duty in India i.e, 42.5 percent, if imported from other countries;

(c) if so, whether due to the treaty between Nepal and India such items do not attract any customs duty if it is imported through Nepal to India;

(d) if so, whether it become difficult for Indian entrepreneurs to compete with those who import these items through Nepal; and

(e) if so, the precautions the Government propose to take in this regard?

Answer given by the minister


MINISTER OF COMMERCE AND INDUSTRY (SHRI MURASOLI MARAN)

a) Yes, Sir

b) The current rates of customs duty applicable to vanaspati, photo rolls and winding wires are as under: -

Sl.No.	Description	Basic + Surcharge	CVD	SAD	Total
1. Vanaspati 38.5% Nil 4% 44.04%

2. Winding Wires 38.5% 16% 4% 67.09%

3. Photo rolls (other than instant print film) 27.5% 16% 4% 53.82%

4. Instant print film 5.5% 16% 45 27.27%
The rates indicated in the table above are MFN rates.

c) Under Indo-Nepal Treaty of Trade, Government of India provides access to the Indian market free of customs duties for articles manufactured in Nepal.

d) In some cases the duty free imports from Nepal are cheaper than similar goods produced in India.

e) The Indo-Nepal Treaty of Trade further provides that corrective measures may be taken by the two Governments in the event of the facility of duty free entry leading to a `surge` in the imports generally or in the import of any particular item from Nepal.