Indian ambassador to Nepal Shiv Shankar Mukherjee has hinted that the Indian government may revoke the 4% additional customs duty imposed on Nepali goods.
Speaking at a discussion held in Birgunj with local businessmen on Friday, ambassador Mukherjee said the government of India would take decision to this effect very soon.
It is expected that the decision would be taken during the proposed India visit of Prime Minister Girija Prasad Koirala.
Mukherjee, who arrived in Birgunj for the second time, also stressed that India stationed its special security forces along the Nepal-India border to regulate borders.
The decision of the Indian government to impose special additional duty (SAD) has drawn flak from Nepali business community. India imposed the duty on Nepali exports about four years ago.
Nepal has from time to time requested India to withdraw the SAD as it contravenes with the bilateral trade treaty. Nepal-India Trade Treaty provides preferential duty-free market access for Nepali goods in India, barring three sensitive products and four items with quantitative restrictions.
The Indian envoy also informed that India was working to modernise the customs points in Birgunj, Nepalgunj, Biratnagar and Bhairahawa by setting up ‘united check posts’ to make bilateral trade more systematic and easier.
Noting that India has given special priority to the development of Terai region, he said a new 450-km Terai road project would soon begin.
During the discussion, the local businessmen asked Mukherjee to check Indian criminal groups, who have been creating problems for industrial activities in their area.