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Challenges and opportunities of ECTS

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Challenges and opportunities of ECTS
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February 11: The implementation of the Electronic Cargo Tracking System (ECTS) to transport Nepal-bound cargo from India has challenges as well as opportunities, according to stakeholders.

Speaking at the NewBiz Roundtable organised at the office of New Business Age on February 11, stakeholders expressed their optimism and concerns about the newly-introduced cargo transport monitoring system.

Nepal Freight Forward Association’s president Prakash Singh Karki has said not only businessmen but all Nepalis should take benefit from the Electronic Cargo Tracking System (ECTS) implemented on the Nepal-bound goods from Indian ports. He said that the system which is in operation up to Birgunj should be extended to other parts of the country.

Joint Secretary at the Ministry of Industry, Commerce and Supplies, Ravi Shankar Sainju, said that the new system which started from Visakhapatnam port of India is now being used in Kolkata port as well.

He said that the ECTS would save the time and cost of Nepali importers resulting in long-term benefits. Once this system comes into operation, the importers will get rid of the problem of losing their goods in between. Joint Secretary Sainju said that the government of India and Nepal are committed in implementing this system. He further said that Nepali importers can benefit more if there is competition between different sea ports of India. According to Sainju, although there are challenges in implementing this system the concerned authorities are working together to sort out the issues.

Director General of the Department of Customs, Toyam Raya, said that there are some challenges as the country is going to initiate a new system. But in the long run, it will prove beneficial. He further said that the customs points are being modernized to meet the standard of ECTS.

General Secretary of Nepal Freight Forward Association Sundar Prasad Dahal said that any shipping company wishing to operate in Nepal must first get registration. At present, we are only focusing on import but we should also think of implementing this system while exporting goods.

Naresh Kumar Agrawal, treasurer of the association, said that Nepal Rastra Bank should facilitate the importers in case there arises problems in payment by the Nepali importers.

Likewise, former president of the association Rajan Sharma said that although ECTS is a positive initiative there should be detailed study regarding its pros and cons.

The reduction in cost and time of the importers is not much meaningful if the consumers price don’t go down.

 

 

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