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Nepal’s Customs Processing Reforms: A Step Towards Facilitating Trade

Kathmandu, Nepal - The Government of Nepal has embarked on a comprehensive reform program to streamline customs processing, aiming to reduce trade barriers and increase the country’s competitiveness in the global market.

The Asian Development Bank (ADB) is providing technical assistance to support Nepal’s implementation of the World Trade Organization (WTO) Trade Facilitation Agreement (TFA), which aims to simplify and harmonize customs procedures. The program focuses on 25 key provisions of the TFA, covering areas such as pre-arrival processing, risk management, and post-clearance audit.

Key Reforms

  • Pre-Arrival Processing: Introduces electronic payment systems and a single window for traders to submit documentation and make payments.
  • Risk Management: Customs authorities will use advanced analytics and data-sharing mechanisms to identify high-risk shipments and prioritize inspections.
  • Post-Clearance Audit: A new audit system will be implemented to monitor compliance with customs procedures and detect potential fraud.
  • Freedom of Transit: Simplifies transit procedures for goods moving through Nepal, reducing delays and costs.

Expected Outcomes

The reforms are expected to improve Nepal’s score on the global indicators measuring its compliance with the WTO TFA. Currently, Nepal ranks lowest in South Asia and among the lowest globally, scoring 0.8 out of 2 in 2015. The program aims to increase this score to 1.3 by July 2021.

The reforms are also expected to:

  • Reduce trade costs
  • Increase trader satisfaction
  • Improve the country’s business environment

Partnership with ADB

The ADB is supporting Nepal’s customs reform program through a $15 million loan and technical assistance. The partnership aims to enhance the country’s trade facilitation capabilities, increase its competitiveness, and promote economic growth.

“We are committed to improving Nepal’s trade facilitation infrastructure and processes,” said [Name], Head of Customs Reform Program at ADB. “Our partnership with the Government of Nepal will help reduce trade barriers and increase economic opportunities for the country.”

Next Steps

The program is expected to be completed by July 2021, with regular monitoring and evaluation to ensure its effectiveness.

In conclusion, Nepal’s customs processing reforms are a crucial step towards increasing the country’s competitiveness in global markets. The program’s success will depend on effective implementation and strong partnership between the Government of Nepal and the ADB.