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Govt to Issue Certificate of Origin

  2 min 32 sec to read

April 12: The government is preparing to issue Certificate of Origin (CO) to manage the current export mechanism. The certificates were issued by private sector association chamber of commerce until now. According to the Trade and Promotion Centre (TEPC), the government has reached a conclusion that COs issued by the private sector is not transparent. “Certificates issued by private sector association have raised some question,” says Ishwor Prasad Ghimire, Executive Director of TEPC. “The government is preparing to issue CO to promote exports while also keeping authentication of Nepali product.”

According to TEPC, COs are being issued in 22 districts across the nation. “Right now, TEPC is preparing procedural task to issue CO,” Ghimire says. He informs that within the next two weeks, procedural task will be finalized and will be implemented immediately. Ghimire has been coordinating a taskforce comprising of representatives from Ministry of Industry, Ministry of Commerce and Customs Department that was formed to prepare the procedural task.

According to TEPC, the government had prepared directives relating to the issuance of CO in 2068 BS to export betel nuts. It opened the door for the government to issue CO for various other products. A nominal part of total amount of export is required to deposit in the Export Promotion Fund, according to the directive. Nevertheless, the TEPC claims that the private sector has not done anything regarding the provision.

Meanwhile, the private sector has denied such accusation of TEPC. Anup Bahadur Malla, Chairman of Export Promotion Committee of FNCCI termed the issuance of CO by the government as unnecessary. “Government should not interfere the private sector in issuing the CO. TEPC could not promote export itself,” he says. “Poor infrastructure and lack of mechanism in all districts will obstruct the government to issue CO.” Meanwhile, Ghimire says that CO can be issued using the current government mechanism. However, Malla opines that it is easy for the private sector to issue such certificates as it has mechanism in all 75 districts.

Malla claims that private sector has been issuing CO systematically. “Government involvement will result in the loss of income for private sector. Legally, issuing CO is private sector’s task,” says Malla. “We are not informed on the issuance of CO by the government.”

Ghimire says that the government will consult the private sector regarding the issue. “We will take feedback from private sector too. Certain mechanism can be formed under the TEPC in coordination with the private sector to promote exports,” he adds.

COs are issued to authenticate exporting products and producer countries. Currently, Federation of Nepalese Chamber of Commerce and Industries, Nepal Chamber of Commerce and Confederation of Nepalese Industries are involved in issuing CO to export products.

 

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