India has agreed for a review of special additional and anti-dumping duties imposed on some sensitive items including vanaspati ghee and acrylic yarn from Nepal prior to the revision of the Indo-Nepal Trade Treaty.MEA sources said India had agreed to ‘consider positively’ Nepal’s request for a review of the duties on four items in the light of sufficient safeguards being imposed under the trade treaty. The revised trade treaty includes the provision of value addition as also quantitative restrictions to control imports. Hence the nepalese industry feels that continuing with these duties amounts to a double burden on them,” they said adding the issue will come up for consideration soon. This was disclosed at the meeting organised by CII-Ficci in the honour of King Gyanendra of Nepal.India had imposed SAD and anti-dumping duties on acrylic yarn and zinc oxide along with SAD on copper wire and vanaspati ghee prior to revision of the treaty in March this year. India is also understood to have conveyed its willingness to provide for more quarantine posts along the border to allow greater exchange of goods and services between the two countries. There are currently two posts and three more are proposed. Officials said India had appointed Rites as a consultant to suggest methods to improve the infrastructure. “This could also mean relocating some of the existing posts to more favourable areas,” they added. In addition to this, India will also consider the request to review luxury tax imposed on certain goods as also state government taxes imposed by certain border states on goods coming in from across the border.India has also expressed its willingness to buy power from the himalayan kingdom provided the tariffs were acceptable. Officials said that in view of the severe fiscal situation of Nepal, India was keen to encourage more investment in areas such as tourism and hydel power which could prove to be mutually beneficial to both countries. On the sidelines of the meet, the president of the Federation of Nepalese Chambers of Commerce and Industry Ravi Bhakta Shrestha said that trade related issues were expected to be sorted out at the inter governmental committee meeting being organised in Kathmandu next month.
