GATT valuation system comes into effect

By A Staff Reporter,Kathmandu, Jan. 4: The government has fully implemented the 'Customs Valuation System based on Transaction Value' at all customs checkpoints across the country from Friday.

With this, the long-standing practice of maintaining a reference book—which had been a source of controversy and lack of transparency in customs clearance—has officially come to an end.

The Customs Valuation System based on Transaction Value, which was started at the Biratnagar Customs checkpoint as a trial three months ago, was gradually expanded and started at customs checkpoints across the country on Friday.

The Customs Valuation Database System has been launched virtually in the remaining 18 customs offices to reduce the cost of international trade and facilitate trade, on the occasion of a two-day "Customs Management Seminar" organised by the Department of Customs that began on Friday in the presence of Minister for Finance Rameshore Prasad Khanal.

Finance Minister Khanal said that, after a long time, the GATT Valuation System has been fully implemented in customs administration, with transaction value replacing the reference value. 

He stated that the practice of maintaining a reference book for valuation purposes has ended from Friday.

“This is a major change in customs administration. The system creates an environment that encourages businesspeople to be honest and eliminates the compulsion to issue fake bills,” he said.

He said that the government is confident that businessmen will be honest in accordance with this change. Stressing on procedural simplification as the price of goods is determined by the market, he said that customs should be developed as the backbone of building an economy based on production and export in the coming days.

Also, ending the compulsion for the private sector to issue fake bills, Finance Minister Khanal said that businessmen should be honest by submitting only real transactions and correct documents in accordance with this change.

Similarly, work has also begun on formulating a new phase of customs reform strategy with the vision of building a manufacturing-based economy.

In the programme, leaders of the Federation of Nepalese Chambers of Commerce and Industry, Nepal Chamber of Commerce and Confederation of Nepalese Industries welcomed the new system and demanded a review of some provisions of the Customs Act, 2082, control smuggling, and bring a policy to encourage domestic industry.

Revenue Secretary at the Ministry of Finance Bhupal Baral, Chief of the Revenue Management Division, Inland Revenue Department, and Chiefs of the Department of Revenue Investigation emphasised on revenue leakage control, integrity, and professionalism.

They stated that in addition to system development and implementation, there should be improvements in character and attitude.

Director General of the Department of Customs, Shyam Prasad Bhandari, expressed his commitment to the department to continue working on trade facilitation, revenue collection, and technology expansion, implementing the guidelines of the Finance Minister and the suggestions of the private sector.

He also expressed confidence that this seminar will play an important role in increasing the use of technology in customs administration, making the valuation system scientific, and further strengthening cooperation between the government and the private sector.