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Transshipment Fails to Lower cost of Importing Goods to Nepal

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Transshipment Fails to Lower cost of Importing Goods to Nepal
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May 8: Transportation cost of goods from third countries to Nepal has increased after the implementation of the transshipment model at Kolkata Port.

The Government of Nepal implemented the transshipment model to import goods from Kolkata three months ago with the objective of reducing shipping expenses for importing containers from third countries.

But the transportation cost has increased instead of going down. 

Under this new model, Electronic Cargo Tracking System (ECTS) is used for transporting containers to Nepal from Kolkata Port.

The customs office in Raxaul, India has been authorized to look after the entire customs procedure of the containers using the ECTS.

With the introduction of the new system, Nepali importers were expecting reduction of both the time and expenses for transporting goods as the ECTS did not require customs clearance at Kolkata port. However, the importers complain that the cost of import of each container has increased by Rs 40,000 now.

Ashok Kumar Temani of the Federation of Nepalese Chambers of Commerce and Industries informed New Business Age that the increase in the price of importing goods is a result of syndicate. There is also less competition among the companies in transshipment resulting in higher cost.

He further said that the freight charges will not go down unless there is competition among the companies.

Temani says the government needs to implement policies regarding company registration and regulate laws for the transport service providers.  

 

 

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