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Business Process Analysis of

Import of Wool to Nepal

Business Process Analysis of

Import of Wool to Nepal

Trade and Transport Facilitation

Monitoring Mechanism in Nepal

Baseline study series #1

| P a g e

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Trade and Transport Facilitation Monitoring Mechanism in Nepal Baseline study series #1

Business Process Analysis of Import of Wool to Nepal

Copyright ©ESCAP and ADB 2017

All rights reserved

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CONTENTS

List of Tables ................................................................................................................................................ iii List of Figures ............................................................................................................................................... iv Acknowledgements ........................................................................................................................................ v Executive Summary....................................................................................................................................... vi Chapter 1. Introduction ................................................................................................................................. 1 Chapter 2. Overview of Business Process Analysis for Trade Facilitation ...................................................... 2 Chapter 3. Data Collection and Validation .................................................................................................... 4 Chapter 4: Analysis and Findings ................................................................................................................... 6

4.1. “As-is” trade process and procedures.................................................................................................. 6 4.1.1 Use-Case Diagram ........................................................................................................................ 6 4.1.2 Activity Diagrams ......................................................................................................................... 6

Process Area 1: Buy ........................................................................................................................... 6 Core Business Process Area 1.1: Conclude Purchase Order ........................................................... 6

Process Area 2: Ship .......................................................................................................................... 8 Core Business Process Area 2.1: Obtain import permission from Trade and Export Promotion

Centre (TEPC) .............................................................................................................................. 8 Core Business Process Area 2.2: Open Letter of Credit (L/C) ..................................................... 10 Core Business Process Area 2.3: Forward L/C no. to Consulate General of Nepal (CGN) Kolkata

................................................................................................................................................... 13 Core Business Process Area 2.4: Appoint freight forwarder (F/F) ............................................... 14 Core Business Process Area 2.5.1: Submit Import General Manifest (IGM) ................................ 16 Core Business Process Area 2.5.2: Prepare Customs transit declarations (CTDs) ......................... 18 Core Business Process Area 2.5.3: Clear customs office at Kolkata .............................................. 20 Core Business Process Area 2.5.4: Clear port at Kolkata .............................................................. 22 Core Business Process Area 2.6: Clear customs at Raxaul ............................................................ 24 Core Business Process Area 2.7: Clear customs at Birgunj .......................................................... 25 Core Business Process Area 2.8: Deliver consignment to importer’s godown .............................. 28

Process Area 3: Pay ......................................................................................................................... 29 Core Business Process Area 3.1: Make payment .......................................................................... 29

4.2. Key indicators ................................................................................................................................... 31 4.2.1 Time for import of wool ............................................................................................................ 31 4.2.2 Cost for import of wool ............................................................................................................. 32 4.2.3 Number of procedures for import of wool ................................................................................ 32 4.2.4 Number of actors involved for the import of wool .................................................................... 32 4.2.5 Number of documents involved in importing wool .................................................................... 33

4.3 Bottlenecks and diagnosis .................................................................................................................. 33 Chapter 5. Key recommendations ............................................................................................................... 35 Appendix 1. List of participants of workshops and informants for the TTFMM baseline study in Nepal ..... 37

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List of Tables

Table 3. 1 Time frame for implementing the TTFMM baseline study ............................................................ 4

Table 4. 1. “Conclude sales contract and trade terms” process description .................................................... 8

Table 4. 2. “Obtain import permission from Trade and Export Promotion Centre (TEPC)” process

description .................................................................................................................................................. 10

Table 4. 3. “Open Letter of Credit (L/C)” Process Description .................................................................. 12

Table 4. 4. “Forward L/C no. to Consulate General of Nepal (CGN) Kolkata” process description ........... 14

Table 4. 5. “Appoint freight forwarder” process description ........................................................................ 16

Table 4. 6. “Submit Import General Manifest (IGM)” process description .................................................. 18

Table 4. 7. “Prepare Customs transit declarations (CTDs)” Process Description ......................................... 19

Table 4. 8. “Clear customs office at Kolkata” Process Description .............................................................. 21

Table 4. 9 “Clear Port at Kolkata” process description .............................................................................. 23

Table 4. 10. “Clear customs at Raxaul” process description ......................................................................... 25

Table 4. 11. “Clear customs at Birgunj” Process Description ....................................................................... 27

Table 4. 12. “Deliver consignment to importer’s godown” Process Description .......................................... 29

Table 4. 13. “Make payment” process description ....................................................................................... 30

Table 4. 14. Time required for completing each procedure of importing wool ............................................. 32

Table 4. 15. Cost of importing wool to Kathmandu from international market via Kolkata port ................. 32

Table 4. 16 Documentation requirement for importing wool ....................................................................... 34

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List of Figures

Figure 2.1. A Step-by-step approach to implementing trade facilitation measures .......................................... 2 Figure 2.2. Buy-Ship-Pay Model .................................................................................................................... 3 Figure 2. 3. Examples of Use Case and Activity Diagrams ............................................................................ 3 Figure 4. 1. Use Case Diagram for Import of wool from international market to Kathmandu via Kolkata-

Birgunj corridor ............................................................................................................................................ 6 Figure 4. 2. “Conclude sales contract and trade terms” use case diagram ....................................................... 7 Figure 4. 3. “Conclude sales contract and trade terms” activity diagram ......................................................... 7 Figure 4. 4. “Obtain import permission from Trade and Export Promotion Centre (TEPC)” use case diagram

..................................................................................................................................................................... 9 Figure 4. 5. “Obtain import permission from Trade and Export Promotion Centre (TEPC)” activity diagram

..................................................................................................................................................................... 9 Figure 4. 6. “Open Letter of Credit (L/C)” use case diagram ....................................................................... 11 Figure 4. 7. “Open Letter of Credit (L/C)” activity diagram ........................................................................ 11 Figure 4. 8. “Forward L/C no. to Consulate General of Nepal (CGN) Kolkata” use case diagram .............. 13 Figure 4. 9. “Forward L/C no. to Consulate General of Nepal (CGN) Kolkata” activity diagram ................ 13 Figure 4. 10. “Appoint freight forwarder” use case diagram ......................................................................... 15 Figure 4. 11. “Appoint freight forwarder” activity diagram .......................................................................... 15 Figure 4. 12. “Submit Import General Manifest (IGM)” use case diagram ................................................... 17 Figure 4. 13. “Submit Import General Manifest (IGM)” activity diagram ................................................... 17 Figure 4. 14. “Prepare Customs transit declarations (CTDs)” use case diagram .......................................... 18 Figure 4. 15. “Prepare Customs transit declarations (CTDs)” activity diagram ............................................. 19 Figure 4. 16. “Clear customs office at Kolkata” use case diagram ................................................................ 20 Figure 4. 17. “Clear customs office at Kolkata” activity diagram .................................................................. 20 Figure 4. 18. “Clear port at Kolkata” use case diagram ................................................................................ 22 Figure 4. 19. “Clear Port at Kolkata” activity diagram .................................................................................. 22 Figure 4. 20. “Clear customs at Raxaul” use case diagram ............................................................................ 24 Figure 4. 21. “Clear customs at Raxaul” activity diagram ............................................................................. 24 Figure 4. 22. “Clear customs at Birgunj” use case diagram ........................................................................... 26 Figure 4. 23. “Clear customs at Birgunj” activity diagram ............................................................................ 26 Figure 4. 24. “Deliver consignment to importer’s godown” use case diagram .............................................. 28 Figure 4. 25. “Deliver consignment to importer’s godown” activity diagram................................................ 28 Figure 4. 26. “Make payment” use case diagram .......................................................................................... 29 Figure 4. 27. “Make payment” activity diagram ........................................................................................... 30 Figure 4. 28. Time-Procedure Chart: Import of Wool to Kathmandu from international market via Kolkata

port ............................................................................................................................................................. 31

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Acknowledgements

The guidance of the former Secretary Naindra Prasad Upadhaya (Ministry of Commerce, Nepal)1, Joint Secretary Toya Narayan Gyawali, and Joint Secretary Rabi Shanker Sainju was vital for completing the study. Participants and informants of the study, as detailed in Appendix 1, substantially contributed their expertise. Shyam Prasad Dahal and Buddhi Prasad Upadhyaya played a crucial role for organizing the TTFMM national validation workshop on 28-29 July 2016 in Kathmandu, Nepal2.

The technical note was prepared by Posh Raj Pandey, Shaleen Khanal and Tengfei Wang

with support from Ekaterina Silanteva and Megane Vanselow during their internship with ESCAP. Data collection was carried out by Posh Raj Pandey and Shaleen Khanal while the study design and supervision were provided by Tengfei Wang.

The baseline study and the underlying project were managed by Tengfei Wang from ESCAP

and Aileen Pangilinan from ADB under the guidance of Yann Duval and Ronald Antonio Q. Butiong. Tanya E. Marin, Linel Ann Reyes-Tayag, and Alona Mae Agustin from ADB provided support for the logistical arrangement of the workshops. Critical review was provided by Vyonna Bondi.

The TTFMM baseline study is funded under both ADB’s Technical Assistance Special Fund

and the Japan Fund for Poverty Reduction.

1 Naindra Prasad Upadhaya currently works in the Prime Minister’s office, Nepal. 2 http://sasec.asia/index.php?page=event&eid=210&url=nepal-ttfmm-national-validation-workshop

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Executive Summary

As part of the baseline study of Trade and Transport Facilitation Monitoring Mechanism

(TTFMM) in Nepal, this technical note analyses the trade process and procedures of import of wool through Kolkota-Birgunj-Kathmandu-Birgung-Kolkota corridor. It reviews the “as-is” trade procedures, diagnoses key bottlenecks and provides a set of possible policy recommendations.

This study reveals that, typically, 18 different institutions or agencies are involved in the

procedures of import of wool to Nepal. Among the 28 different documents required for import, only two, namely Single Administrative Document (SAD) and Export General Manifest (EGM), can be submitted electronically, while the rest have to be submitted in paper documents. Customs clearance required the most documents: 10 and 9 documents are required for customs clearance at Kolkata and customs clearance at Birgunj, respectively. It takes 31 days to complete the whole import process, while the longest time taken is for the payment through the banks.

Based on data analysis, this study provides the following tentative recommendations to

further enhance trade facilitation: 1) Further development of electronic filing and exchange of documents; 2) Harmonization of data and information and standardization of documents; 3) Further development of customs automation; 4) Introduction of National Single Window; 5) Review of Nepal-India transit treaty and its protocol.

This note constitutes an essential component of the baseline study of TTFMM. As such, it

should not be treated as a one-off study. The indicators and other more detailed information and data included in this note provide “baseline” data for benchmarking when similar studies are carried out in the future.

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Chapter 1. Introduction

The baseline study on trade and transport facilitation monitoring mechanisms (TTFMM)

in Nepal was conducted as part of a broad initiative to establish sustainable TTFMM in the country in the long term. The project covers not only Nepal but also Bangladesh and Bhutan under the South Asia Sub-regional Economic Cooperation (SASEC) Program. In particular, the TTFMM baseline study aims to:

• Provide a set of “as-is” indicators and underlying data on trade and transport facilitation performance in Nepal. Such baseline data will ensure that the progress or setback in trade facilitation performance in the country can be benchmarked.

• Diagnose key bottlenecks and recommendations for removing bottlenecks and simplifying trade procedures. In this respect, the study provides policy recommendations to policy makers and stakeholders.

• Identify areas of cooperation between Nepal and its regional trade partners to facilitate movement of goods across the SASEC region.

• Propose way forward to maintain the sustainability of TTFMM. Sustainability is at the core of the design of TTFMM. In this respect, this study provides specific recommendations on how to maintain sustainability of TTFMM including institutional arrangement, data collection and analysis, and best way to utilize the study output. The scope of the baseline studies of TTFMM was decided through a series of regional

and national training workshops held in Bangkok, Thailand in November 2013, in Dhulikhel, Nepal in April 2014, Wuhan, China in October 2015 and in Bangkok, Thailand in January 2016. A wide range of stakeholders were consulted in this process, as shown in the lists of participants of different meetings in Appendix 1.

The TTFMM baseline study in Nepal covers the following processes, products and trade

routes and corridors: (i) Import of fabrics from Bangladesh to Nepal through Dhaka-Banglabandha-

Fulbari-Panitanki-Kakarbhitta-Kathmandu; (ii) Import of wool through Kolkota-Birgunj-Kathmandu; and (iii) Export of woolen carpet through Kathmandu-Birgung-Kolkota

The current study analyses trade process and procedures of importing wool from

international market to Nepal via Kolkata. Wool constitutes the most important raw material for Nepalese carpets and therefore forms an essential element in the value chain of carpets. Around two third of the wool has been imported from New Zealand and around 30 percent from China. A very small percentage of import has been from United Kingdom and India.

Birgunj customs is the major customs point for the import of wool from New Zealand while imports from China is mainly through the Tatopani customs.

This technical note is a stand-alone document itself. In the meantime, it feeds the

synthesis TTFMM baseline report on Nepal3. As such, it needs to be read along with the other reports to fully understand the background, key findings and conclusions of the TTFMM baseline study.

3 https://www.adb.org/publications/trade-transport-facilitation-monitoring-nepal.

https://www.adb.org/publications/trade-transport-facilitation-monitoring-nepal

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Chapter 2. Overview of Business Process Analysis for Trade

Facilitation

Business Process Analysis (BPA) of Trade Procedures, developed by UNNExT 4 has

proved to be an effective tool for providing a detailed understanding of international trade transactions. More than 50 import and export processes in Asia and other regions of the world have been studied since 2009 using BPA.5 This study on the import of wool carpets through Kolkota-Birgunj-Kathmandu corridor has adopted the methodology developed by the UNNExT Business Process Analysis Guide to Simplify Trade Procedures6.

According to UN/CEFACT (see Figure 2.1) 7, BPA is recommended as the first step

before undertaking other trade facilitation measures related to the simplification, harmonization and automation of trade procedures and documents.

Figure 2.1. A Step-by-step approach to implementing trade facilitation measures

The trade procedures covered by BPA largely fall in the category of Buy-Ship-Pay model recommended by UN/CEFACT (as shown in figure 2.2). In some cases, the scope could be confined to selected processes according to the priority of the country.

4 More information is available at http://unnext.unescap.org/tools/business_process.asp. 5 A summary of the existing studies is available at http://unnext.unescap.org/pub/brief11.pdf. 6 Detailed information is available at < https://unnext.unescap.org/content/business-process-analysis-simplify-

trade-procedures-case-studies> 7 United Nations Economic Commission for Europe (UNECE), 2006, Background Paper for UN/CEFACT

Symposium on Single Window Common Standards and Interoperability.

Business Process Analysis

Process simplification and harmonization

Documents simplification and alignment

National data harmonization

Cross-border data harmonization &

exchange

E-Single Window & paperless

trading

Source: UNECE, 2006, Background Paper for UN/CEFACT Symposium on

Single Window Common Standards and Interoperability

http://unnext.unescap.org/tools/business_process.asp

http://unnext.unescap.org/pub/brief11.pdf

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Figure 2.2. Buy-Ship-Pay Model

Note: UN/CEFACT Recommendation No. 18 illustrates a simplified view of the international supply chain in the Buy-Ship-Pay model (Box 1). The model identifies the key commercial, logistical, regulatory and payment procedures involved in the international supply chain. www.unece.org/fileadmin/DAM/cefact/recommendations/rec18/Rec18_pub_2002_ecetr271.pdf

One of the key features of the UNNExT Business Process Analysis Guide to Simplify

Trade Procedures is the introduction of the Unified Modelling Language (UML) as a standard way to graphically represent the various procedures involved in the trade process (Figure 2. 3). Use of this common standard is essential to providing a systematic description and common language of a procedure that can be understood by all stakeholders involved in international trade transactions, both domestic and foreign.

Figure 2. 3. Examples of Use Case and Activity Diagrams

UML Use-Case Diagram UML Activity Diagram

UML Use-Case and Activity Diagrams are used to visualize the captured knowledge of the business processes. The Use-Case Diagram illustrates high-level business processes and the actors associated with each of them. It serves as a frame of reference for further elaboration of business process modelling work. The Activity Diagram, on the other hand, describes activities, inputs, and outputs associated with each business process listed in the Use-Case Diagram.

Source: http://unnext.unescap.org/pub/tipub2558new.asp

http://www.unece.org/fileadmin/DAM/cefact/recommendations/rec18/Rec18_pub_2002_ecetr271.pdf

http://unnext.unescap.org/pub/tipub2558new.asp

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Chapter 3. Data Collection and Validation

The time frame for implementing the TTFMM baseline study in Nepal is shown in Table 3.1. The key activities are highlighted below.

Table 3. 1 Time frame for implementing the TTFMM baseline study

2015 2016

10 1 2 3 4 5 6 7 8 9 10 11 12

Sub-regional meeting to plan the baseline study in Wuhan, China

Workshop to finalize the plan of the baseline study in Bangkok, Thailand

Data collection on BPA

Data collection on TRS

Data collection on TCD/CPMM

TTFMM database, analysis and draft report

National results validation meeting

Refine TTFMM data and analysis, and finalize study report

BPA = Business Process Analysis, CPMM = Corridor Performance Measurement and Monitoring, TCD = Time/Cost–Distance, TRS = Time Release Study, TTFMM = Trade and Transport Facilitation Monitoring Mechanism. Note: Shaded area in a row indicates the month a particular task was undertaken.

Workshops to Plan the Baseline Study in Wuhan, China and Bangkok, Thailand

A subregional meeting was held in October 2015 in Wuhan, China, to plan the baseline

study and discuss the next steps, and attended by national consultants and government officials from Bangladesh, Bhutan, and Nepal and experts from ADB and ESCAP. Another study planning workshop during which methodologies for BPA, TRS, and TCD/CPMM were discussed in detail, was held in Bangkok, Thailand, on 13–15 January 2016. Present in the workshop were national consultants of the project, government officers, and logistics operators from Bangladesh, Bhutan, and Nepal. Draft questionnaires used for TRS and CPMM were distributed and comprehensively discussed at the workshop, which was instrumental in the actual study. Data collection on Business Process Analysis

An expert conducted data collection on BPA during February–July 2016 and interviewed

the key stakeholders in Kathmandu, Birgunj, and Kakarbhitta. A field trip to Kolkata was arranged to collect data on transit during 16–18 March 2016. Information on import and export processes was collected, essentially through repeated interviews of key informants, e.g., exporters, importers, and intermediaries including public and private sector institutional participants directly involved in the processes being analysed. Whenever required, there were also interviews and consultations with government agencies. Websites of different organizations were also studied to collect published information related to specific procedural requirements, including documents, time and costs, and laws and regulations. The summary and people interviewed during the visit are shown in Appendix 1.

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National results validation meeting and follow-up activities

The Ministry of Commerce, Nepal, in collaboration with ADB and ESCAP, organized a

national validation workshop on 28–29 July 2016 in Kathmandu, Nepal. The project team presented preliminary study results and findings to stakeholders. The project team considered comments from the workshop in their decision to revise the report. Approximately 6 weeks after the meeting, the project team shared the revised reports with the participants and incorporated additional feedback for further revision.

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Chapter 4: Analysis and Findings

4.1. “As-is” trade process and procedures

4.1.1 Use-Case Diagram

Figure 4.1 shows that import of wool to Nepal typically contains 13 procedures and

involves 18 different actors.

Figure 4. 1. Use Case Diagram for Import of wool from international market to Kathmandu via Kolkata-Birgunj corridor

CGN = Consulate General of Nepal, CISF = Central Industrial Security Force, NRB = Nepal Rastra Bank, TEPC = Trade and Export Promotion Centre.

4.1.2 Activity Diagrams

Process Area 1: Buy

Core Business Process Area 1.1: Conclude Purchase Order

Wool is often imported from New Zealand in containerized consignments (at least 10

tons at a time), which requires large investment in a Nepal context. Therefore, small traders or businesses cannot afford to import wool.

The exporter and importer communicate and negotiate via internet and telephones. The

costs of internet service and telephone are the only costs that can be attributed to the process. The importers normally order a 10-ton consignment of wool. The negotiation therefore takes into consideration the price of the wool (as per the market prices of the time), the quality of the wool to be imported, the date (normally a month), mode of delivery (always via sea) and method of payment (normally via L/C). After the exporter and the importer agree upon the prices,

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quality, the date/mode of delivery and the mode of payment, the importer prepares a purchase order. The exporter then sends a pro-forma invoice to the importer who then approaches the bank to open a letter of credit.

Figure 4. 2. “Conclude sales contract and trade terms” use case diagram

Figure 4. 3. “Conclude sales contract and trade terms” activity diagram

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Table 4. 1. “Conclude sales contract and trade terms” process description

The name of a process area which this particular business process belongs to

1. Buy

The name of a business process

1.1 Conclude sales contract and trade terms

Related rules and regulations

▪ Incoterms ▪ United Nations Convention on Contracts for the International Sale of

Goods 1980

The name of process participants

▪ Exporter ▪ Importer

Input and criteria to enter/begin the business process

▪ Importer is interested in purchasing wool from the exporter.

Procedures and associated documentary requirements to complete the process

1.1 Importer contacts exporter via telephone and makes a trade offer pertaining to:

• Quantity required • Quality of the wool • Price of wool • Time of delivery • Mode of delivery • Mode of payment 1.2 Exporter receives the trade offer. 1.3 Exporter reviews the trade terms. If the trade terms are not acceptable,

exporter sends the terms for revision electronically. 1.4 Exporter accepts the trade terms. 1.5 Importer issues a purchase order and sends it to the importer

electronically. 1.6 Exporter prepares a pro-forma invoice and sends it to the importer

electronically.

Output and criteria to exit the business process

▪ Exporter and importer agree on sales contract and trade terms, and pro-forma invoice is issued.

Average time required to complete the process and/or durations for each involved transaction

1-2 days (could be much longer depending on negotiation of the contract)

Average costs associated with the process

No cost

Process Area 2: Ship

Core Business Process Area 2.1: Obtain import permission from Trade and Export Promotion Centre

(TEPC)

To ensure that only the quality wool is imported, the importers are required to acquire letter of recommendation from the Trade and Export Promotion Centre (TEPC) for every consignment of wool to be imported. The importer or his representative submit the copies of pro-forma invoice, the Permanent Account Number (PAN)/Value Added Tax (VAT) certificate, and the company registration certificate to TEPC. The TEPC provides the importer with the letter of recommendation. The importer approaches the TEPC office for acquiring the document and the process generally takes less than an hour. There is no cost involved in the process.

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Figure 4. 4. “Obtain import permission from Trade and Export Promotion Centre (TEPC)” use case diagram

Figure 4. 5. “Obtain import permission from Trade and Export Promotion Centre (TEPC)” activity diagram

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Table 4. 2. “Obtain import permission from Trade and Export Promotion Centre (TEPC)” process description The name of a process area which this particular business process belongs to

2. Ship


2.1 Obtain import permission from Trade and Export Promotion Centre (TEPC)


▪ As published in Nepal Gazette


▪ Importer ▪ Trade and Export Promotion Centre (TEPC)


▪ Exporter and importer have concluded sales contract and trade terms.


2.1.1 Importer applies to the TEPC for permission to import wool with the following documents: • Pro-forma invoice • PAN/VAT certificate • Firm/Company registration certificate

2.1.2 TEPC verifies the documents and asks the importer to resubmit the documents if the documents are not in order.

2.1.3 If documents are acceptable, the TEPC provides the permission letter for importing wool specifying the quantity and quality of wool to be imported by the importer

2.1.4 The importer receives the letter in print from TEPC. Output and criteria to exit the business process

▪ The Trade and Export Promotion Centre issues the permission letter for importing wool


1 hour


No Charge

Core Business Process Area 2.2: Open Letter of Credit (L/C)

The L/C was the most popular choice of payment for importing wool. The importer has to approach a commercial bank classified as Class A under NRB regulations to open an L/C. To do so, the importer needs to either have an account with sufficient credit to cover the amount mentioned in the L/C or provide a mortgage. The importer submits a) pro-forma invoice; b) permission letter from TEPC; and c) filled BiBiNi3 to the bank. The bank then verifies the documents and, if satisfied, issues the L/C and forwards the document to the exporter’s bank. The exporter’s bank informs the exporter, and exporter collects the document from the bank. After collecting L/C, the exporter submits documents mentioned in the L/C including: a) commercial invoice; b) bill of lading; c) packing list; d) certificate of origin; and e) wool quality certificate to the exporter’s bank. The exporter’s bank forwards the documents to the importer’s bank from where importer collects the documents.

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Figure 4. 6. “Open Letter of Credit (L/C)” use case diagram

Figure 4. 7. “Open Letter of Credit (L/C)” activity diagram

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Table 4. 3. “Open Letter of Credit (L/C)” Process Description


2. Ship


2.2. Open Letter of Credit


• Foreign Exchange (Regulation) Act 1962 • Foreign Exchange (Regulation) Rules 1963 • Customs Act, 2007 • Circular 580 of Nepal Rastra Bank


• Exporter • Importer • Exporter’s Bank • Importer’s Bank


• The importer is required to have a bank account and sufficient credit balance in the bank where L/C is being opened.

• The Bank should be a commercial bank or a financial institution authorized by the Nepal Rastra Bank to issue an L/C

• The exporter has issued a pro-forma invoice • The importer has acquired permission letter from Trade and Export

Promotion Centre (TEPC)

Activities and associated documentary requirements to complete the process

2.2.1. Importer approaches the commercial bank for issuing a Letter of Credit (L/C).

2.2.2. Importer submits following documents in print: - Pro-forma invoice - Permission letter from TEPC - BiBiNi 3

2.2.3. The importer’s bank verifies the contents of the invoice and requests for resubmission if documents are not found to be in order.

2.2.4. If the contents of invoice are found satisfactory, importer’s bank issues the Letter of Credit and informs the exporter’s bank.

2.2.5. The exporter’s bank calls exporter to collect the L/C. 2.2.6. The exporter collects the L/C from her bank. 2.2.7. The exporter deposits the following documents to her bank:

- Commercial invoice - Bill of lading - Packing list - Certificate of origin - Wool quality certificate

2.2.8. The exporter’s bank forwards the documents to the importer’s bank. 2.2.9. The importer’s bank calls the importer to collect the documents. 2.2.10. The importer collects the documents from his bank.


• Importer opens an L/C in the bank. • Exporter receives the L/C. • Importer receives documents from exporter


• 5-7 days


• 0.25 percent of the invoice.

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Core Business Process Area 2.3: Forward L/C no. to Consulate General of Nepal (CGN) Kolkata

After issuing the L/C, the importer’s bank forwards the L/C number to the central bank of Nepal (Nepal Rastra Bank). Nepal Rastra Bank then forwards the L/C number to the office of the Consulate General of Nepal in Kolkata.

Figure 4. 8. “Forward L/C no. to Consulate General of Nepal (CGN) Kolkata” use case diagram

Figure 4. 9. “Forward L/C no. to Consulate General of Nepal (CGN) Kolkata” activity diagram

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Table 4. 4. “Forward L/C no. to Consulate General of Nepal (CGN) Kolkata” process description The name of a process area which this particular business process belongs to

2. Ship


2.3. Forward L/C no. to Consulate General of Nepal


▪ Foreign Exchange (Regulation) Act 1962 ▪ Foreign Exchange (Regulation) Rules 1963 ▪ Circular 580 of Nepal Rastra Bank ▪ Treaty of Transit between Government of Nepal and the Government of

India 1999


▪ Importer’s Bank ▪ Nepal Rastra Bank (Central Bank of Nepal) ▪ Consulate General of Nepal


▪ The importer has opened an L/C in commercial bank. ▪ The importer has received documents for import from exporter.


2.3.1 The importer’s bank forwards the L/C number to Nepal Rastra Bank electronically.

2.3.2 Nepal Rastra Bank forwards the L/C number to the Consulate General of Nepal (CGN) at Kolkata electronically.

2.3.3 The CGN receives the L/C number.


▪ The CGN at Kolkata receives the L/C number from Nepal Rastra Bank.


1 day


No cost.

Core Business Process Area 2.4: Appoint freight forwarder (F/F)

Before the consignments reach the Kolkata Port Authority, the importer appoints a freight forwarder with the responsibilities of customs clearance, transit clearance, transportation and warehousing with agreed fees and the date and mode of delivery. Normally, there are two approaches for appointing the freight forwarders: 1) the importer appoints two separate freight forwarders in India and Nepal to handle cargoes in their respective countries; or 2) a single freight forwarder in Nepal is appointed who manages freight movement simultaneously in both countries. Since the logistics for both cases are the same, the processes and the activity diagrams are identical for both cases. After the terms of agreement between the importer and the F/F are established, the importer provides the following documents to the F/F: a) pro-forma invoice; b) commercial invoice; c) PAN/VAT certificate; d) company registration certificate; e) packing list; f) L/C; g) certificate of origin sent by the exporter; h) bill of lading; i) CHA authorization letter; j) request letter to the CGN; k) wool quality certificate. After receiving the documents, the F/F proceeds to complete the import procedures.

15

Figure 4. 10. “Appoint freight forwarder” use case diagram

Figure 4. 11. “Appoint freight forwarder” activity diagram

16

Table 4. 5. “Appoint freight forwarder” process description The name of a process area which this particular business process belongs to

2. Ship


2.4 Appoint freight forwarder (F/F)


▪ Contract Act 2000 ▪ MulukiAin (Civil Code) 1961 ▪ Incoterms ▪ Multimodal Transportation of Goods Act 2006 ▪ Multimodal Transportation of Goods Rules 2009


▪ Importer ▪ Freight Forwarder


▪ Consignment is ready to arrive at Kolkata port ▪ Importer has opened a Letter of Credit(L/C).


2.4.1 Importer approaches the Freight Forwarder (F/F) for importation of wool.

2.4.2 Importer offers the F/F the terms of contract which include: responsibilities on documentation, insurance (optional), transportation, customs clearance, transit procedures, among others. The two parties also agree on F/F’s fees, date and mode of delivery.

2.4.3 F/F reviews the terms of contract and if terms are not acceptable proposes counter offer.

2.4.4 After receiving acceptable term of contract, F/F concludes contract terms with the importer.

2.4.5 The importer hands over the following documents to the F/F • Pro-forma invoice • Commercial invoice • PAN/VAT certificate • Firm/Company registration certificate • Packing list • L/C • Certificate of origin • Bill of lading • CHA authorization letter • Request letter to the Consulate General of Nepal (CGN) • Wool quality certificate

2.4.6 The F/F proceeds to import the consignment.


▪ F/F is appointed. ▪ F/F collects documents necessary to import from the importer.


Minimum 1 hour and maximum 1 day.


NRS 20,000 (USD 200) per container as freight forwarder’s fee. If multiple containers are used, then NPR 10,000 (USD 100) per container would be the minimum fee.

Core Business Process Area 2.5.1: Submit Import General Manifest (IGM)

The Customs Manual 2013 of India states that the Import General Manifest (IGM) has to be filed at least 48 hours prior to the entry of the vessel into the port for vessels with voyage of more than 4 days. Accordingly, the Steamer Agent in the port prepares the Import General Manifest and submits the document along with a) Desk Cargo Declaration; b) Port Clearance Copy; c) Income Tax Certificate; and d) Nil Export Cargo Certificate to the Customs Office at Kolkata.

17

Figure 4. 12. “Submit Import General Manifest (IGM)” use case diagram

Figure 4. 13. “Submit Import General Manifest (IGM)” activity diagram

18

Table 4. 6. “Submit Import General Manifest (IGM)” process description


2. Ship


2.5.1 Submit Import General Manifest (IGM)


• Customs Act 1962, Government of India • Customs Manual 2013, Government of India • Kolkata Port Act 1890 • Kolkata Port Rules 1994 • Goods Imported (Conditions of Transshipment) Regulation 1995 • Central Board of Excise and Customs Circulars and Instructions


• Customs Office (Kolkata) • Steamer agent/Shipping line


• Consignment is about to reach the port of Kolkata within 48 hours.

Activities and associated documentary requirements to complete the process

2.5.1.1 The steamer agent prepares Import General Manifest (IGM) and submits the IGM electronically to the Customs 48 hours in advance of consignment reaching the port. The Steamer Agent also submits following physical documents in print along with the filled IGM: - Desk cargo declaration, - Port clearance copy, - Income tax certificate, - Nil export cargo certificate. 2.5.1.2 The customs office (Kolkata) receives the documents and the filed IGM from the steamer agent


• Customs Office has recorded information on the IGM.


• 1 hour


• No cost

Core Business Process Area 2.5.2: Prepare Customs transit declarations (CTDs)

Customs Transit Declarations are mandatory as per the Protocol under the Treaty of

Transit between Government of Nepal and Government of India. The F/F sends the documents to the Customs House Agent (CHA) by courier. The CHA upon receiving the documents forwarded by the F/F then proceeds to confirm the date prescribed in the bill of lading against the date filled in the IGM by the steamer agent. After checking the documents, the CHA fills up six copies of Customs Transit Declarations (CTDs) for submission to the customs office in Kolkata.

Figure 4. 14. “Prepare Customs transit declarations (CTDs)” use case diagram

19

Figure 4. 15. “Prepare Customs transit declarations (CTDs)” activity diagram

Table 4. 7. “Prepare Customs transit declarations (CTDs)” Process Description The name of a process area which this particular business process belongs to

2. Ship


2.5.2 Submit Import General Manifest (IGM)


▪ Customs Act 1962, Government of India ▪ Customs Manual 2013, Government of India ▪ Kolkata Port Act 1890 ▪ Kolkata Port Rules 1994 ▪ Goods Imported (Conditions of Transshipment) Regulation 1995 ▪ Central Board of Excise and Customs Circulars and Instructions


▪ Customs Office (Kolkata) ▪ Steamer agent/Shipping line


▪ Consignment is about to reach the port of Kolkata within 48 hours.


2.5.2.1 The steamer agent prepares Import General Manifest (IGM) and submits the IGM electronically to the Customs Office 48 hours in advance of consignment reaching the port. The Steamer Agent also submits following physical documents in print along with the filled IGM:

• Desk cargo declaration, • Port clearance copy, • Income tax certificate, • Nil export cargo certificate.

2.5.2.2 The Customs Office (Kolkata) receives the documents and the filed IGM from the steamer agent


▪ Customs Office has recorded information on the IGM.


1 hour


No cost

20

Core Business Process Area 2.5.3: Clear customs office at Kolkata

As per the Treaty of Transit between Government of Nepal and Government of India,

non-governmental imports are required to be certified by the Consulate General of Nepal (CGN). Therefore, the CHA in Kolkata submits the following documents to the CGN: a) original letter of credit; b) import license (if required); c) a copy of CTD, d) original bill of lading; e) letter of request to the CGN by the importer; and f) appointment letter of the CHA. After examining the documents, the CGN certifies the L/C and endorses the CTD, and emails the documents to the Customs Office at Kolkata. The CHA also submits the copies of these documents along with the five copies of filled CTDs, pro-forma, commercial invoices, and packing list to the Customs Office at Kolkata. At the Kolkata Customs Office, the officers verify the contents of the IGM against the items listed in the CTDs. After receiving the endorsed copy of CTD and L/C from the CGN, the customs office allots registration numbers to the CTDs. The customs office then records the numbers assigned to the CTDs and sends four copies of endorsed CTDs and the copies of rest of the documents to the Port Trust.

Figure 4. 16. “Clear customs office at Kolkata” use case diagram

Figure 4. 17. “Clear customs office at Kolkata” activity diagram

21

Table 4. 8. “Clear customs office at Kolkata” Process Description The name of a process area which this particular business process belongs to

2. Ship


2.5.3 Clear Indian Customs at Kolkata Customs Office


▪ Treaty of Transit between Nepal and India 1999 ▪ Memorandum on Treaty of Transit between Nepal and India ▪ Protocol of Treaty of Transit between Nepal and India ▪ Customs Act 1962, Government of India ▪ India Customs Manual 2013, Government of India ▪ Kolkata Port Act 1890, Government of India ▪ Kolkata Port Rules 1994, Government of India ▪ Goods Imported (Conditions of Transshipment) Regulation 1995,

Government of India ▪ Central Board of Excise and Customs Circulars and Instructions,

Government of India The name of process participants

▪ Customs Office (Kolkata) ▪ Consulate General Office (CGN), Government of Nepal in Kolkata ▪ Customs House Agent (CHA)


▪ CHA has filled the Customs Transit Declarations ▪ CHA has acquired documents necessary for customs clearance from F/F


2.5.3.1 The CHA submits the following documents in print to the Consulate General of Nepal (CGN):

• Letter of Credit (L/C), • Bill of lading, • Copy of CTD, • CHA’s authorization letter signed by importer • Request letter to the CGN

2.5.3.2 The CGN receives the documents along with the letter of request by the importer 2.5.3.3 The CGN verifies the contents of the documents. 2.5.3.4 For items where L/C and/or import license is not necessary, the CGN certifies the CTD 2.5.3.5 For items where L/C and/or import license is required, the CGN certifies the L/C as well as the CTD 2.5.3.6 The CGN e-mails the documents to the Kolkata Customs 2.5.3.7 The CHA submits the following documents in print to the Customs Office (Kolkata):

• Pro-forma invoice, • Commercial invoice, • Packing list, • Certificate of origin, • L/C, • Bill of lading, • five copies of CTDs • CHA authorization letter

2.5.3.8 The customs office enters the details of the CTD into the database and verifies the contents of the information. The Import Noting Department tallies the contents of the IGM with the contents of the CTDs verifying the container number, serial number and noting number of the two documents. If the documents don’t tally, the Department asks the CHA to amend the documents. The customs office verifies the letter from the CGN or the certification of the L/C as the case requires. 2.5.3.9 If the contents of the documents are satisfactory, customs office allots registration number to the CTDs and registers in the customs office. 2.5.3.10 The customs office sends a copy of all documents and a CTD to the Port Trust Authority, Kolkata.


▪ Consignment clears customs at Kolkata.

Average time required to complete the process

1 working day


No cost

22

Core Business Process Area 2.5.4: Clear port at Kolkata

Rules for clearance from the Port of Kolkata are governed by Kolkata Port Rules and Kolkata Port Act along with the Treaty of Transit between the Government of India and Government of Nepal. For consignment to be cleared from the Port Trust, the CHA is required to clear all payments owed to the Trust during the process of import of the consignment. As such, the CHA pays Terminal Handling charges, Delivery Order charge, Container Demurrage (if any), Container Washing charge and other charges as incurred to the Steamer Agent and Dock charges to the Port Trust. The Port Trust records the cargo entry and issues an Import Delivery Order and a Gate Pass to the transporter. The transporter enters the port for loading the consignment on to the vehicle. The Customs Office checks the consignment if necessary and inscribes the seal number and vehicle number on the back of the CTD which is verified by the Port Authority against the CTD produced by CHA. If satisfied, the Port Authority (Shed Writer) issues an electronic pass to the transporter who would be allowed to leave the Port premise.

Figure 4. 18. “Clear port at Kolkata” use case diagram

Figure 4. 19. “Clear Port at Kolkata” activity diagram

23

Table 4. 9 “Clear Port at Kolkata” process description


2. Ship


2.5.4 Clear Kolkata Port


▪ Treaty of Transit between the Governments of Nepal and India 1999 ▪ Protocol of Treaty of Transit between the Governments of Nepal and India

1999 ▪ Memorandum of Treaty of Transit between the Governments of Nepal and

India 1999 ▪ Customs Act 1962, Government of India ▪ Customs Manual 2013, Government of India ▪ Kolkata Port Act 1890, Government of India ▪ Kolkata Port Rules 1994, Government of India ▪ Goods Imported (Conditions of Transshipment) Regulation 1995,

Government of India ▪ Central Board of Excise and Customs Circulars and Instructions,

Government of India


▪ Customs Office (Kolkata) ▪ Customs House Agent (CHA) ▪ Kolkata Port Trust ▪ Transporter/Freight Forwarder ▪ Central Industrial Security Force (CISF) ▪ Steamer Agent


▪ Customs Office has endorsed the Customs Transit Declarations (CTDs) and released the goods.


2.5.4.1 The CHA pays the shipping charges to the steamer agent for clearing Terminal Handling Charges, Delivery Order Charge, Container Demurrage, Container Washing Charge, Survey charge etc. as per the bills provided by the steamer agent. 2.5.4.2 The steamer agent issues a Delivery Order. 2.5.4.3 The CHA settles dock charges to the Kolkata Port Trust which include landing charge, ground rent, crane charge, bond for container etc. after producing jetty chalan with local delivery order. 2.5.4.4 The Port Trust debits the dock charges. 2.5.4.5 The Port Trust enters the road cargo in records as per the jetty challan. 2.5.4.6 The Port Trust issues the Import Delivery Order (IDO) and entry gate pass to the transporter. 2.5.4.7 The transporter produces the IDO to the CISF. 2.5.4.8 The CISF verifies the IDO and permits the entry of vehicle on the port premise. 2.5.4.9 The truck enters the port premise and loads the consignment. 2.5.4.10 The customs office examines the shipment, if deemed necessary. 2.5.4.11 After verifying the shipment, customs office at Kolkata records the status of seal and the vehicle number on the back of the copies of CTDs. 2.5.4.12 The shed writer at the Port Authority checks the copies of CTDs produced by the CHA against the CTDs forwarded by the customs office. 2.5.4.13 The shed writer hands over the electronic gate pass to the transporter. 2.5.4.14 The F/F hands over the electronic gate pass to exit the dock at the gate. 2.5.4.15 Transporter then exits the dock with the consignment.


▪ Consignment leaves Kolkata port


1 working day


Terminal Handling Charges: IRS 8000-15000 (USD 128-240), Delivery Order Charges cost IRS 3200 (USD 51.2), and port charges cost around IRS 500 (USD 8).

24

Core Business Process Area 2.6: Clear customs at Raxaul

When goods and vehicles arrive at the Raxaul Customs, the transporter then submits a

copy of CTD to the Raxaul Customs where the consignment is inspected if necessary. If the Customs Authority finds the seal intact, then the CTD is endorsed and the truck is allowed to leave for Nepal. If the seal is found to be broken, the Customs Authority then inspects the elements as reported in the CTD and then permits the vehicle to leave for Nepal.

Figure 4. 20. “Clear customs at Raxaul” use case diagram

Figure 4. 21. “Clear customs at Raxaul” activity diagram

25

Table 4. 10. “Clear customs at Raxaul” process description The name of a process area which this particular business process belongs to

2. Ship


2.6 Clear customs at Raxaul


▪ Treaty of Transit between the Governments of Nepal and India 1999 ▪ Protocol of Treaty of Transit between the Governments of Nepal and

India 1999 ▪ Memorandum of Treaty of Transit between the Governments of Nepal

and India 1999 ▪ Customs Act 1962, Government of India ▪ Customs Manual 2013, Government of India


▪ Customs House Agent (CHA) ▪ Customs Office (Raxaul) ▪ Transporter


▪ Consignment has reached the Raxaul Customs Office


2.6.1 Consignment arrives at Raxaul Customs and the CHA submits CTD in the customs office. 2.6.2 The customs officer checks if the seal is broken or not. 2.6.3 If found broken, the officer inspects the contents of the consignment 2.6.4 If the officer finds the consignment in order, the officer endorses the CTD and lets the truck leave for Nepal. 2.6.5 The truck leaves for Nepal


▪ Consignment leaves Raxaul Customs.


4-5 hours Minimum hours: 2 hours Maximum hours: 28 hours


IRS 1400 (USD 22.4) per container

Core Business Process Area 2.7: Clear customs at Birgunj

Once the truck arrives at Nepal Customs, it has to get a gate entry pass at the Customs compound gate. The Customs Agent (CA) appointed by the F/F at Birgunj Customs fills up the Single Administrative Document (SAD) at the computer room allocated for the Customs Agent inside the Customs premise. After filling the SAD with necessary information, the CA submits SAD along with pro-forma invoice, commercial invoice, packing list, copy of L/C, COO, BiBiNi4, appointment letter of CA, quality certificate, PAN/VAT certificate (one time), and company registration certificate (one time). The customs officer verifies the documents and enters the information on the Selectivity Module of the ASYCUDA which classifies the consignment into Green, or Red Channel. If the item falls under the Green Channel, the consignment is sent for the valuation and for determination of tariffs under the Valuation Department of the Customs Office. If the consignment falls under the Red Channel, the goods are inspected and sent to the Valuation Department. After determining the tariff, the Customs Agent proceeds to pay the tariff in the bank located inside the Customs premise and submits the receipt to the Customs Officer. The Customs Officer issues a Gate Pass and the consignment is permitted to leave the Customs premise. The Customs Office also endorses the BiBiNi4 and the SAD to the importer’s bank.

26

Figure 4. 22. “Clear customs at Birgunj” use case diagram

Figure 4. 23. “Clear customs at Birgunj” activity diagram

27

Table 4. 11. “Clear customs at Birgunj” Process Description The name of a process area which this particular business process belongs to

2. Ship


2.7 Clear customs at Birgunj


▪ Customs Act 2007 ▪ Customs Rules 2007


▪ Freight Forwarder ▪ Customs Agent ▪ Customs Office ▪ Commercial Bank inside customs premise


▪ Consignment has arrived at Birgunj.


2.7.1 Freight Forwarder appoints a Customs Agent (one time) 2.7.2 Freight Forwarder hands over following documents to the customs agent in print:

• Company registration certificate (one time) • PAN/VAT certificate (one time) • Commercial invoice • Pro-forma invoice • Packing list • Letter of Credit (L/C) • Certificate of Origin (COO) • BiBiNi4 form • Bill of lading • Wool quality certificate

2.7.3 The customs agent submits Single Administrative Document (SAD) to the customs server using broker terminal in the customs office and submits the following physical documents to the customs officer:

• Company registration certificate (one time) • PAN/VAT certificate (one time) • Commercial invoice • Pro-forma invoice • Packing list • L/C • Certificate of country of origin • Bi.Bi.Ni.4 form • Wool quality certificate • Bill of lading • Appointment letter of the customs agent

2.7.4 The customs officer checks the validity of the submitted documents and examines if contents of SAD match with the invoices. If not satisfied with the documents, the customs officer asks the customs agent to resubmit the correct documents.

2.7.5 The selectivity module under ASYCUDA determines whether the shipment should be sent through the Red or the Green Channel. 2.7.6 If the cargo passes through the Red Channel, it is inspected and verified. If cargo does not validate the declaration, the cargo is revalued. 2.7.7 Tariff is determined on the consignment. 2.7.8 The customs agent pays the import duty in the bank. 2.7.9 The bank issues a payment receipt to the importer/Customs Agent in print. 2.7.10 The customs agent submits receipt to the customs officer. 2.7.11 The customs officer issues a gate pass and permits the clearance of goods from the customs to the customs agent and forwards the BiBiNi 4 form and endorses SAD to the importer’s bank for release of deposit.


▪ Consignment clears the customs at Birgunj.


4-5 hours


NRS 565 (USD 5.65) as Customs Service Fee. Wool attracts zero customs duty.

28

Core Business Process Area 2.8: Deliver consignment to importer’s godown

The F/F asks customs agent in Birgunj customs to arrange a local transporter for the shipment of consignment from Birgunj to Kathmandu. Based on the prevailing rates, the transporter agrees the transport fees and agrees to transport shipment to importer’s godown. The transporter takes the truck to the customs premise and loads the consignment to the truck. After loading is done, the transporter departs for Kathmandu and delivers the consignment to the importer’s godown. The transporter charges NRS 25000-NRS 30000 for the whole transport and logistics process.

Figure 4. 24. “Deliver consignment to importer’s godown” use case diagram

Figure 4. 25. “Deliver consignment to importer’s godown” activity diagram

29

Table 4. 12. “Deliver consignment to importer’s godown” Process Description


2. Ship


2.8 Deliver consignment to importer’s godown


▪ Contract Act 2000 ▪ Customs Act 2007 ▪ Customs Rules 2007 ▪ Transport Management Act 1993 ▪ Vehicles and Transport Management Rules 1997


▪ Freight Forwarder ▪ Customs Agent ▪ Transporter


▪ Consignment has cleared customs procedure at Birgunj Customs office


2.8.1 Freight Forwarder requests the customs agent to arrange for transportation of consignment up to Kathmandu. 2.8.2 The customs agent contacts a local transporter for delivery of consignment. 2.8.3 The local transporter delivers an empty truck to the customs premise. 2.8.4 The truck loads the consignment and pays for the loading charges. 2.8.5 The truck departs for Kathmandu and delivers the consignment in importer’s godown.


▪ Consignment is delivered to importer’s godown.


12 hours.


NRS 30000 (USD 300) for transportation fees.

Process Area 3: Pay Core Business Process Area 3.1: Make payment

As per the terms of contract between the parties, the exporter submits documents which

include (but are not limited to): a) commercial invoice; b) packing list; c) certificate of origin; and d) bill of lading. If the documents are satisfactory and as per the requirements of terms and conditions set by the L/C, the importer’s bank transfers money to the exporter’s bank and asks the importer to make payment. If the documents are not as per the terms and conditions set by the L/C, the importer can decline the payment unless the exporter provides documents satisfactory to the importer and the importer’s bank.

Figure 4. 26. “Make payment” use case diagram

30

Figure 4. 27. “Make payment” activity diagram

Table 4. 13. “Make payment” process description The name of a process area which this particular business process belongs to

3. Pay


3.1. Make payment


▪ Foreign Exchange (Regulation) Act 1962 ▪ Foreign Exchange (Regulation) Rules, 1962 ▪ Circular 580 of Nepal Rastra Bank ▪ Customs Act, 2007


▪ Exporter ▪ Importer ▪ Exporter’s Bank ▪ Importer’s Bank


▪ Importer as opened an L/C in the name of the exporter.


3.1.1 The exporter submits the documents required under the terms of L/C which include:

• Bill of lading • Country of origin certificate • Commercial invoice • Pro-forma invoice • Packing list • Wool quality certificate • Other documents (as the case demands based on L/C requirements) 3.1.2 Exporter requests for payment to the exporter’s bank. 3.1.3 The exporter’s bank verifies the documents submitted by the exporter as

per the terms of the L/C. 3.1.4 If documents are not found to comply with L/C terms, the exporter’s bank

requests the exporter to resubmit the documents as per the terms of the L/C.

3.1.5 After the exporter’s bank finds the documents satisfactory, it forwards the documents to the importer’s bank

3.1.6 The importer’s bank verifies the documents as per the conditions of the L/C.

31

3.1.7.1 If conditions of L/C are not met, the bank informs the importer. 3.1.7.2 The importer declines payment to the importer’s bank. 3.1.7.3 The importer’s bank declines payment to the exporter’s bank and informs

the exporter’s bank. 3.1.7.4 The exporter’s bank informs the exporter of the decline of payment by the

importer’s bank. 3.1.8.1 If conditions of L/C are met the importer’s bank makes payment to the

exporter’s bank. 3.1.8.2 The exporter’s bank forwards the payment to the exporter and informs the

exporter to collect the payment. 3.1.8.3 The exporter collects the payment. 3.1.8.4 The importer’s bank requests payment from the importer. 3.1.8.5 The importer deposits the money in the bank.


▪ Exporter receives payment via letter of credit.


15 days


0.25 percent of invoice.

4.2. Key indicators

The key indicators used for analysis include time for import, costs for import, number of procedures for import, number of actors and number of documents for import.

4.2.1 Time for import of wool

To complete the process for import of wool along the Kolkata-Birgunj-Kathmandu

corridor, it takes altogether 31 days (as shown in Figure 4.28 and Table 4.14). Out of 31 days, it takes 2 days to complete the purchase contract, 14 days to move cargo from Kolkata port to Kathmandu and 15 days for payment.

Figure 4. 28. Time-Procedure Chart: Import of Wool to Kathmandu from international market via Kolkata port

Note: the time-procedure chart here only does not record time to fill in the forms or some preparation work. Therefore, the actual whole trade process can be much longer.

0

5

10

15

20

25

30

35

1.1 2.1 2.2 2.3 2.4 2.5.1 2.5.2 2.5.3 2.5.4 2.6 2.7 2.8 3.1

Du

rati

on

(d

ays)

Serial number of procedure

32

Table 4. 14. Time required for completing each procedure of importing wool

Process Time (days) Buy 1.1 Conclude sales contract and trade terms 2 Ship 2.1 Obtain import permission from TEPC 0.5 2.2 Open letter of credit 6 2.3 Forward L/C no. to CGN Kolkata 0.5 2.4 Appoint F/F 1 2.5.1 Submit IGM 0.5 2.5.2 Prepare CTDs 0.5 2.5.3 Clear customs at Kolkata 1 2.5.4 Clear port at Kolkata 1 2.6 Clear customs at Raxaul 1 2.7 Clear customs at Birgunj 0.5 2.8 Deliver consignment to importer’s godown 1.5 Pay 3.1 Make payment 15

4.2.2 Cost for import of wool

As shown in Table 4.15, total costs for completing all trade and transport procedures

from Kolkata to Kathmandu amounted to US$ 1,540. Among the total costs, transport costs (including employment of freight forwarders) are the highest (US$ 930). Opening letter of credit is the second most costly procedure (US$ 350). Clearance of goods from Kolkata port costs US$ 209.

Table 4. 15. Cost of importing wool to Kathmandu from international market via Kolkata port

Process Cost per container in US$ Buy 1.1 Conclude sales contract and trade terms 0 Ship 2.1 Obtain import permission from TEPC 0 2.2 Open letter of credit 350 2.3 Forward L/C no. to CGN Kolkata 0 2.4 Appoint F/F 200 2.5.1 Submit IGM 0 2.5.2 Prepare CTDs 53 2.5.3 Clear customs at Kolkata 0 2.5.4 Clear port at Kolkata 209 2.6 Clear customs at Raxaul 22 2.7 Clear customs at Birgunj 6 2.8 Deliver consignment to importer’s godown 250 + 480 Pay 3.1 Make payment 0 Total cost (US$) 1,540

4.2.3 Number of procedures for import of wool

The total number of procedures for importing wool is 13. (Figure 4.28 and Table 4.15).

4.2.4 Number of actors involved for the import of wool As shown in use-case diagram in Figure 4.1, there are in total 18 actors involved in

importing wool.

33

4.2.5 Number of documents involved in importing wool As shown in Table 4.16, altogether 28 different documents were necessary for the import

process. Of the 28, only 2 documents (IGM and SAD) were submitted electronically, while the rest had to be submitted in print. Customs clearance Kolkata required 10 documents and customs clearance at Birgunj required 9 which were the most document consuming two processes.

4.3 Bottlenecks and diagnosis

The study identifies the following key issues on import of wool to Nepal. First, the number of documents and actors involved is high. Second, some import costs may be reduced. For instance, the costs associated with transit procedures at Kolkata port and at Raxaul Customs point may be reduced or eliminated with change in provisions in the Treaty of Transit between India and Nepal. This can also reduce the number of steps required in the process of importing wool. Other bottlenecks include the manual submission of documents, requirement of submission of irrelevant documents as well as same document in various government agencies and high cost of transportation.

34

Table 4. 16 Documentation requirement for importing wool Process No. of

documents required

Documents Required Electronic Submission

Buy 1.1 Conclude sales contract and trade terms 2 Purchase Order ✓

Pro-forma invoice ✓ Ship 2.1 Obtain import permission from TEPC 3 Pro-forma invoice

PAN/VAT certificate Firm/company registration certificate

2.2 Open Letter of credit 3 Pro-forma invoice BiBiNi 3 Permission letter from TEPC

2.3 Forward L/C no. to CGN Kolkata 1 L/C number ✓ 2.4 Appoint freight forwarder 0 2.5.1 Submit IGM 6 Desk cargo declaration

Port clearance copy Income tax certificate Port trust certificate Nil cargo export certificate IGM ✓

2.5.2 Prepare CTDs 8 Pro-forma invoice Commercial invoice Packing list COO Bill of lading CHA authorization letter Request letter to CGN L/C

2.5.3 Clear customs at Kolkata 10 CTD Pro-forma invoice Commercial invoice Packing list COO Bill of lading CHA authorization letter Request letter to CGN L/C IGM

2.5.4 Clear port at Kolkata 8 CTD Jetty chalan Local delivery order Delivery order Bond certificate Import delivery order Entry gate pass Exit gate pass

2.6 Clear customs at Raxaul 1 CTD 2.7 Clear customs at Birgunj 9 Pro-forma invoice

Commercial invoice Packing list PAN/VAT certificate Firm/registration certificate BiBiNi4 COO L/C Wool quality certificate SAD ✓

2.8 Deliver consignment to importer’s godown 0 Pay 3.1 Make payment 5 Commercial invoice

COO Packing list Wool quality certificate Bill of lading

Total no. of unique documents 28 Total no. of submissions 56

35

Chapter 5. Key recommendations

The following recommendations are provided to further streamline and simplify trade

procedures. However, some recommendations may be tentative and require more detailed feasibility studies.

1) Although some progress is being made to use electronic means of documents processing,

a large majority of documents have to be processed manually. Such practice applies within a Government organization, between Government organization, between traders and Government organizations and between importer and business service providers. Hence, a systematic move towards electronic filing and exchange of documents should be pursued.

2) To reduce the burden for traders of submitting and repeating the same information to different organizations for processing approvals, an exercise should be undertaken to harmonize the data and information required by each organization and for each purpose with a view to standardizing the information and sharing the information through better coordination. In this respect, Article 10 of the World Trade Organization’s Trade Facilitation Agreement (TFA) titled “formalities connected with importation and exportation and transit” should be followed.

3) Ongoing work on development of National Single Window (NSW) needs to be

expedited. Once a NSW is put in place, all the actors could share a large number of documents submitted to the NSW and eliminate the requirement of submission of specific documents multiple times.

4) The treaty of transit may need to be amended to provide for transhipment/ transloading.

It allows for items to be cleared at Birgunj Customs and insured during the transit route so that items once cleared at Kolkata port do not have to clear the Indian Customs office at Kolkata. This would save cost accruing to CHA at Kolkata (around IRS 3000-5000 per container), and time taken to clear Customs at Kolkata (around a day). Documentation needs arising out of Customs clearance in Kolkata will be removed as well. The need for filing bond at the Kolkata port will also be removed reducing documentation needs further. Furthermore, extending shipper’s duty to bring forth the item till Birgunj (CIF Birgunj for instance) would expedite the clearance process at Kolkata and reduce costs of delay incurred at Kolkata port.

5) During the transition period for the amendment of transit treaty, the CTD should be

considered as the single document containing shipping information (along with bill of lading) for the Customs clearance purpose at Kolkata. Need for submission of invoices, packing list and other such documents should not be a part of transit process at Kolkata Customs and Port.

6) The EXIM Code (under development by the Department of Customs) should be

effectively implemented which under its current format will permit the transfer of L/C by Nepal Rastra Bank online on the same day of issuance. The program also permits electronic transfer of CTD and endorsement of CTD under one station at the Kolkata Customs. This initiative would reduce time taken for informing issuance of L/C to the Central Bank CGN, Kolkata s and also eliminate the need for submission of up to 6 documents.

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7) ASYCUDA World should be implemented fully in Birgunj Customs. This would reduce

the cost of hiring CA and eliminate the need for physical document submission at the Birgunj Customs.

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Appendix 1. List of participants of workshops and informants for the TTFMM baseline study in Nepal

A1. Inception Workshop on Trade and Transport Facilitation Performance Monitoring 26-27 November 2013 Bangkok, Thailand

GOVERNMENT OF BANGLADESH Mr. Sultan MD Iqbal Member (Customs Intelligence & Audit) National Board of Revenue, Dhaka Mr. Nasir Arif Mahmud Joint Secretary Ministry of Shipping Mr. AKM Akhter Hossain President Chittagong Customs Clearing & Forwarding Agents Association, Agrabad, C/A Mr. M. Nurul Amin Deputy Director (CM) Bangladesh Standard Testing Institute (BSTI) Mr. AHM Ahsan Trade Consultant (Deputy Secretary) Ministry of Commerce Mr. Afsarul Arifeen Additional Secretary The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI)

GOVERNMENT OF BHUTAN Mr. Choiten Wangchuk Director General, Department of Public Accounts Ministry of Finance Mr. Sonam Wangchuk Director, Department of Trade Ministry of Economic Affairs Mr. Choyzang Tashi Director, Department of Revenue and Customs Ministry of Finance Mr. Karma Dorji Executive Director, Bhutan Agriculture and Food Regulatory Authority (BAFRA) Ministry of Agriculture and Forests

Mr. Palden Dorjee General Manager Forwarders and Clearing Agent Mr. Sonam Dorji Business Promotion Officer Bhutan Chamber of Commerce and Industry

GOVERNMENT OF INDIA Mr. Devendra Kumar Singh Additional Director General of Foreign Trade Directorate General of Foreign Trade Ministry of Commerce and Industry Mr. Sunil Kumar Das Commissioner of Customs Office of the Commissioner of Customs Mr. N. Venkatesh Additional Director General Systems Directorate

Mr. Prabir De Senior Fellow Research and Information System for Developing Countries (RIS), and ASEAN-India Centre

GOVERNMENT OF NEPAL Mr. Navaraj Dhakal Under Secretary Ministry of Commerce and Supplies Mr. Damber Bahadur Karki Under Secretary Ministry of Physical Planning and Transport Mr. Rajan Sharma President Nepal Freight Forwarders Association (NEFFA) Mr. Sarad Bickram Rana Executive Director Nepal Intermodal Transport Development Board

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WORLD CUSTOMS ORGANIZATION ASIA PACIFIC REGIONAL OFFICE FOR CAPACITY BUILDING (ROCB A/P) Mr. Yoshihiro Kosaka Head WCO (ROCB A/P) Mr. Sekhar Bonu Director SARC, South Asia Regional Department [email protected] Mr. Lawanya Kumar Dhakal, Director Department of Customs Mr. Parashu Ram Adhikari Senior Plant Protection Officer Ministry of Agriculture and Development

RESOURCE PERSONS Mr. Takashi Matsumoto External Relations Coordinator Office of the Secretary General World Customs Organization Ms. Pavaran Tanmesin Director Krabi Customs House Mr. Sanghyup Lee Director Clearance Facilitation Section Seoul Main Customs Republic of Korea

ASIAN DEVELOPMENT BANK (ADB) Mr. Ronald Antonio Butiong Principal Regional Cooperation Specialist SARC, South Asia Regional Department Mr. Cuong Minh Nguyen Senior Economist (Regional Cooperation)

SARC, South Asia Regional Department Ms. Rosalind McKenzie Regional Cooperation Specialist SARC, South Asia Regional Department Ms. Aileen Pangilinan Associate Programs Officer SARC, South Asia Regional Department Mr. Jesusito Tranquilino Regional Cooperation and Integration Expert SARC, South Asia Regional Department

Ms. Linel Ann Reyes-Tayag Operations Assistant SARC, South Asia Regional Department Mohammad Ehteshmaul Hoque National Trade Facilitation Expert-Bangladesh SARC, South Asia Regional Department Achyut Bhandari National Trade Facilitation Expert-Bhutan SARC, South Asia Regional Department Shyam Dahal National Trade Facilitation Expert-Nepal SARC, South Asia Regional Department

UNESCAP Mr. Yann Duval Chief, Trade Facilitation Unit Trade and Investment Division Mr. Tengfei Wang Economic Affairs Officer Trade Facilitation Unit Trade and Investment Division Mr. Fedor Kormilitsyn Economic Affairs Officer Transport Division

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A2. National Workshop on Trade and Transport Facilitation Monitoring Mechanism Dhulikhel, Nepal, 15-17 April 2014

Jib Raj Koirala Joint Secretary Ministry of Commerce and Supplies Navaraj Dhakal Under Secretary Ministry of Commerce and Supplies Mahesh Timilsina Under Secretary Ministry of Commerce and Supplies Moti Bahadur Shrees Nepal Trade and Transport Facilitation Committee Secretariat Ministry of Commerce and Supplies Bharat Pd. Adhikari Section Officer Ministry of Finance Bol Raj Acharya Section Officer Ministry of Finance Jageshwar Sharma Section Officer Ministry of Finance Harihar Paudel Section Officer Ministry of Finance Yuba Raj Adhikari Section Officer Ministry of Finance Hikmat Bdr Bhandari Statistics Officer Ministry of Finance Laxmi Poudel Director Department of Customs Nirmal K Mainali Section Officer Department of Customs Gyanendra Raj Dhakal Section Officer Department of Customs Govinda Raj Pant Section Officer Department of Customs

Gopal Prasad Bhattarai Section Officer Department of Customs Arjun Regmi Statistical Officer Department of Customs Ram Dutta Bhatta Computer Officer Department of Customs Mohan Khujung Computer Officer Department of Customs Ramhari Aryal Chief Customs Officer Birgunj Customs Mukti Pandey Chief Customs Officer Mechi Customs Ananta Pd. Timilsina Customs Officer Birgunj Customs Lava Kumar Adhikari Customs Officer Biratnagar Customs Promod Das Customs Officer Biratnagar Customs Sushil Kumar Thapa Customs Officer Bhairahawa Customs Gopi Upreti Customs Officer Mechi Customs Kaliram Paudel Customs Officer Dryport Customs Laxman Khadka Branch Manager Nepal Transit and Warehousing Company Yadava Raj Shiwakoti Branch Manager Nepal Transit and Warehousing Company Nirmal Adhikari Section Officer

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Nepal Intermodal Transport Development Committee Hari Krishna Mishra Electrical Engineer Nepal Intermodal Transport Development Committee Sunil Paudel Technical Advisor Nepal Intermodal Transport Development Committee Rajan Sharma President Nepal Freight Forwarders Association Naresh Agrawal Senior Executive Member Nepal Freight Forwarders Association Pradeep Kumar Kedia Senior Vice President Birgunj Chamber of Commerce S.G. Mustafa CEO Himalaya Terminal Pvt Ltd Keshab Raj Pandey Former President Mechi Chamber of Commerce Rajendra Kumar Shrestha Nepal Truck and Transport Association Jaya Siwakoti Customs Agent TIA Customs, Kathmandu Mohan Niraula Customs Agent Mechi Balkrishna Balset Mohan Niraula Customs Agent Birgunj

Sudeep Bajcharya Program Officer SAWTEE RESOURCE PERSONS Dr Somnuk Keretho Director Institute for Information Technology Innovation Faculty of Engineering Kasetsart University, Thailand Cheng Jing Technical Attache and Program Manager (Pacific Islands) WCO Asia Pacific Regional Office for Capacity Building World Customs Organisation UN ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC Tengfei Wang Economic Affairs Officer Trade Facilitation Trade and Investment Division Heini Suominen Economic Affairs Officer Transport Facilitation and Logistics Section Transport Division ASIAN DEVELOPMENT BANK Cuong Minh Nguyen Senior Economist (Regional Cooperation) SARC, South Asia Department Shyam Dalal Consultant Nepal South Asia Department Jacqueline Lam Consultant (Trade Economist) South Asia Department

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A3. Trade and Transport Facilitation Monitoring Mechanism (TTFMM) meeting

Shangri-La Hotel, Wuhan, China, 21 October 2015

BANGLADESH Mr. Md. Abdul Hakim, First Secretary (Customs Modernization), National Board of Revenue Dhaka, Bangladesh BHUTAN Mr. Sonam Phuntsho Wangdi, Joint Secretary, Ministry of Economic Affairs, Thimphu, Bhutan Mr. Dhendup, Deputy Collector, Regional Revenue and Customs Office, Department of Revenue and Customs, Phuentsholling, Bhutan Mr. Kesang Yeshey, Assistant Collector, Regional Revenue and Customs Office, Department of Revenue and Customs, Phuentsholling, Bhutan INDIA Mr. Zubair Riaz Kamili, Additional Commissioner, Customs Commissionerate, New Delhi Mr. Prabir De, Professor, India habitat Centre, Zone 4B, Lodhi Road, New Delhi, India NEPAL Mr. Toya Narayan Gyawali, Joint Secretary, Ministry of Commerce and Supplies, Kathmandu Mr. Bishnu Prasad Paudel, Director, Customs Department, Kathmandu, Nepal Mr. Ananta Prasad Timsina, Customs Reform and Modernization Section, Department of Customs, Kathmandu, Nepal Mr. Sharma Rajan, President, Nepal Freight Forwarders Association and Member of Nepal Trade & Transport Facilitation Committee, Kathmandu, Nepal

INTERNATIONAL TRADE CENTRE (ITC) Mr. Mohammad Saeed Senior Advisor on Trade Facilitation ASIAN DEVELOPMENT BANK (ADB) Ms. Rosalind McKenzie Regional Cooperation Specialist Regional Cooperation and Operations Coordination Division (SARC) South Asia Department

Mr. Achyut Bhandari National Trade Facilitation Expert Independent of ADB for Bhutan Thimphu, Bhutan

Mr. Mohammad Farhad ADB Consultant/Customs Expert Asian Development Bank (ADB) Dhaka, Bangladesh

Mr. Sarad Bickram Rana National National Customs Procures Expert Asian Development Bank (ADB) Kathmandu, Nepal

Dr. Posh Pandey Chairman South Asia Watch on Trade Economics and Environment (SAWTEE) Kathmandu, Nepal ____________ ESCAP Mr. Tengfei Wang Economic Affairs Officer

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A4. Workshop for the Implementation of TTFMM Baseline Studies Bangkok, Thailand, 13-15 January 2016

BANGLADESH Mr. Md. Firoz Shah Alam Member (Customs: Audit, Modernisation & Intl. Trade) National Board of Revenue Mr. Md. Abdur Rob Deputy Secretary Ministry of Commerce Mr. Hasan Mohammad Tarek Rikabder Joint Commissioner Customs Excise & Vat commissionarate, Mr. Md. Enamul Hoque Assistant Commissioner Customs Excise & Vat commissionarate Mr. Md. Sayeduzzaman Sayed Sayed Enterprise (Clearing & Forwarding Agent, Import and Export, and Transport) President, Burimari C&F Agents Association Mr. Md. Rezaul Karim C&F Agent, Freight Forwarder & Importer-Exporter President, Banglabandha C&F Agents Association Director, Panchagrah Chamber of Commerce & Industry BHUTAN Mr. Karma Drukpa Regional Director Regional Trade and Industry Office Mr. Pema Wangchen Joint Commissioner Liaison and Transit Office Royal Bhutan Customs Office Mr. Tandin Wangchhen Joint Collector Customs and Excise Division Department of Revenue and Customs Ms. Deki Gyamtsho Deputy Collector Regional Revenue and customs Office Department of Revenue and Customs

Ms. Tshering Choden Executive Director Bhutan Clearing and Forwarding Agent INDIA Mr. Kundan Kumar Superintendent Department of Revenue (CBEC) Ministry of Finance NEPAL Mr. Jib Raj Koirala Joint Secretary International Trade Relations Ministry of Commerce & Supplies Mr. Mimangsa Adhikari Director Customs Reforms & Modernization Section Department of Customs Mr. Nirmal Kumar Mainali Customs Officer Birgunj Customs Kumar Bhattarai Customs Officer Mechi Customs Office Mr.Rajan Sharma President Nepal Freight Fowarders Association UNESCAP Mr. Yann Duval Chief, Trade Facilitation Unit Trade and Investment Division Mr. Tengfei Wang Economic Affairs Officer ASIAN DEVELOPMENT BANK (ADB) Ms. Aileen Pangilinan Programs Officer South Asia Department Mr. Acyut Bhandari ADB Consultant

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Mr. Phuntsho Wangdi ADB Consultant Dr. Posh Pandey ADB Consultant Mr. Sarad Bickam Rana ADB Consultant

Mr. Prabir De ADB Consultant Mr. Mohammad Farhad ADB Consultant Ms. Leticia de Leon ADB Consultant Ms. Alona Mae Agustin ADB Consultant

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A5. Field survey to Kolkata,

15-17 March 2016

Meeting with Kolkata Customs (Morning, 16 March

2016)

Dr N K Soren Commissioner Mr P.K. Bohra Joint Commissioner Mr Pramod Maurya Deputy Commissioner Mr Gyanendra Tripathi Assistant Commissioner Mr B. C. Dash Superintendent Mr. B. Kundu Superintendent Mr. Pradeep Lama Indian Customs Mr A Majhi Indian Customs Mr Debasish Dhar Indian Customs Meeting with Kolkata Port Trust (Afternoon, 16 March 2016)

Mr Goutam Gupta Traffic manager Mr Santanu Naskar Dy Traffic manager (commercial) Mr S C Chatterjee

Meeting with Customs House Agents, logistics and transport operators (Morning, 17 March 2016)

Mr Laxman Khadka Branch Manager Nepal Transit and Warehouse Co., Ltd Ms. Sita Basnet, A. C G Nepal Consulate

Mr. Ugyen Wangyd Commissioner Bhutan Customs Mr. Pema Wangchen Joint Commissioner Bhutan Customs Mr. Rajesh Sarda CHA, SKB Shipping Mr. KK Mantri Manager Trading Agency (CHA) Mr. Pradeep Ararwal CHA, Oceanic Express Mr. Puneet Agarwal Transport Oceanic Express Mr. Reyaz Mullick Mullick Shipping CCHA Mr. M. K. Dubey, CHA Meeting with Container Corporation of India Limited (CONCOR) (Afternoon, 17 March 2016) Mr. Sumant Kumar Behera Dy. General Manager (C&O) Eastern Region Meeting with Nepal Consulate in Kolkata (Afternoon, 17 March 2016) Ms. Sita Basnet Consul, Consulate General of Nepal Mr. Dhruba Prasad Bhattarai, First secretary, Consulate General of Nepal Mr. Nagraj Jain, Chairman, Hanuman Group Mr. Shyam Sharma, Proprietor, Bhawani Roadways

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A6. National Validation workshop on Baseline Study of Trade and Transport Facilitation

Monitoring Mechanism (TTFMM)

Kathmandu, Nepal, 28 – 29 July 2016

Mr. Naindra Prasad Upadhaya Secretary Ministry of Commerce (MoC) Mr. Toya Narayan Gyawali Joint-Secretary, MOC Mr. Rabi Shanker Sainju Joint-Secretary, MOC Mr. Devi Prasad Sharma Under Secretary, MOC Mr. Rameswar Pokharel Under secretary, MOC Mr. Yogendra Pandey Under Secretary, MOC Mr. Mahendra Sapkota Under Secretary, MOC Mr. Buddhi Prashad Upadhya Under Secretary, MOC Mr. Dhruba Ghimire Under Secretary, MOC Mrs. Mina Aryal Under Secretary, MOC Mrs. Anita Niraula Under Secretary, MOC Mr. Shiva Prashad Tripathi, Under Secretary, MOC Mr. Ramji Danai Under Secretary, MOC Mr. Bhuban Prashad Acharya Under Secretary, MoC Mr. Tarka Raj Bhatta Under Secretary, MoC Mr. Uday Bohara D. Director, FNCCI

Mr. Lok Raj Joshi, S. Officer FNCCI Mr. Homnath Gaire Director, CNI Mr. Rajeev Majgaiya D. Director, CNI Mr. Niraj Rai Member, NCC Mr. Kailash Bajimai CEO, NCC Mr. Chudamani Sharma Kattel Biratnagar Customs Office, Biratnagar Mr. Tika Ram Poudel Inland Customs Depot Office, Birgunj Mr. Mani Ram Poudel Birgunj Customs Office, Birgunj Mr. Govinda Prasad Poudel Bhairahawa Customs Office, Bhairahawa Mr. Kiran Sharma Section Officer, Department of Custom Mr. Raju Poudel Custom Officer, Department of Custom Mr. Nava Raj Adhikary Custom Officer, Department of Custom Mr. Sujan Kumar Nyupane Member, NEFA Mrs. Sita Adhikary Member, NEFA Mr. Mohan Niraula Section Officer, Ministry of Commerce (MoC) Mr. Moti Bahadur Shris, Section Officer, Ministry of Commerce (MoC) Mr. Tanka Raj Gautam Section Officer, Ministry of Commerce (MoC)

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Mr. Ramhari Pokhrel Section Officer, Department of Commerce Mr. Shusil Raj Khanal Section Officer, DoC Mr. Nirajan Koirala Account Officer, DoC Mrs. Shanta Budhathoki Section Officer, NITDB Gitadevi Shrestha Deputy Director, TEPC Mr. Sarojlal Shrestha Deputy manager, NTWCL Mr. Yadav Raj Siwakoti Nepal Transit Warehouse Company Limited, Kakadvitta

Mr. Churamani Aryal Section Officer, Ministry of Finance Mrs. Sharadha Chalise Section Officer, MoC Laxman Bahadur Basnet Executive Director NITDB Dr. Posh Raj Pandey Resource Person Shaleen Khanal Resource Person Mr. Tengfei Wang Economic Affairs Officer , UNESCAP Mr. Shyam Dahal Consultant, ADB