Govt Empowers DGFT for TRQ Goods Allocation in India-Nepal Treaty
Trade relations between countries play a vital role in fostering economic growth and strengthening bilateral ties. In recent developments, the Directorate General of Foreign Trade (DGFT) has been designated as the authority responsible for the allocation and monitoring of Tariff Rate Quota (TRQ) goods under the revised India-Nepal Treaty. This significant move aims to streamline trade operations between India and Nepal, benefiting both nations.
Additionally, this article will explore the broader responsibilities of DGFT and its contribution to facilitating export-import activities.
Understanding Tariff Rate Quota (TRQ):
TRQ refers to a mechanism that allows a specified quantity of an item to be imported or exported at concessional customs duties. This mechanism helps regulate trade by providing opportunities for businesses to engage in cross-border transactions while protecting domestic industries. Beyond the allocated quantity, TRQ items attract normal duties, ensuring a fair and competitive environment.
DGFT’s Authority and Responsibilities:
As the designated authority for allocation and monitoring, the DGFT plays a pivotal role in facilitating trade operations between India and Nepal. By overseeing the TRQ items under the revised India-Nepal Treaty, DGFT ensures a smooth and regulated flow of goods across borders. This responsibility highlights the importance of DGFT’s involvement in promoting bilateral trade relations.
Allocated TRQ for Copper Products and Zinc Oxide:
Under the concessional customs duty provision of the treaty, Nepal has been authorized to export 10,000 tonnes of copper products and 2,500 tonnes of zinc oxide to India. To ensure transparency and adherence to the TRQ system, Nepal’s designated authority will communicate the allocated quota to each manufacturer/exporter on a quarterly basis. This process guarantees fair access to TRQ items and enables businesses to plan their trade activities accordingly.
Simplified Import Process:
To further facilitate trade between India and Nepal, designated land customs stations have been established at strategic locations. The designated land customs stations encompass Kakarbhitta/Naxalbari, Biratnagar/Jogbani, Birganj/Raxaul, Nepalgunj/Nepalgunj Road, and Mahendranagar/Banbasa. Importers can utilize these stations for permitted imports, ensuring smooth cross-border transactions.
The DGFT has introduced an online application process for TRQ certificates, making it convenient for Indian importers. Importers can file their applications on the DGFT website, streamlining the paperwork and reducing bureaucratic hurdles. The TRQ certificate, once obtained, remains valid for 12 months, providing importers with flexibility and planning certainty.
DGFT’s Role in Trade Facilitation:
Beyond its involvement in TRQ allocation and monitoring, the DGFT plays a broader role in the export and import-related matters. It acts as a central authority responsible for formulating and implementing policies that promote international trade. The DGFT’s expertise and guidance help businesses navigate complex trade regulations and foster an environment conducive to export-import activities. By ensuring compliance with international agreements, the DGFT contributes to India’s overall trade competitiveness.
The designation of the Directorate General of Foreign Trade (DGFT) as the authority responsible for allocating and monitoring Tariff Rate Quota (TRQ) items under the revised India-Nepal Treaty marks a significant step towards simplifying trade between the two nations. This move enhances transparency, streamlines processes, and fosters stronger bilateral relations. The simplified import process, with designated land customs stations and online TRQ certificate applications, ensures smooth trade operations.
As India and Nepal strengthen their trade ties, it becomes essential for businesses to stay updated on export-import regulations and procedures. Export-import education in Nashik and other regions plays a crucial role in equipping businesses with the knowledge and skills necessary to thrive in the evolving global market. Understanding TRQ systems, trade policies, and the role of authorities like DGFT empowers businesses to make informed decisions and seize opportunities for growth in international trade.
