India's exports to Bangladesh, Nepal facing delays: EEPC

NEW DELHI: India's exports to Bangladesh via Petrapole land port are facing delays in clearances from regulatory authorities resulting in high transaction costs and making shipments uncompetitive.

Similarly, exports to Nepal by road also face delays due to non-cooperation of customs authorities, Engineering Export Promotion Council (EEPC) said in a statement.

Shipments are mainly sent to Bangladesh through Petrapole land port and "these consignments are often facing delay for clearing due to over burden, holidays etc, leading to heavy transportation detention charges being levied on them," EEPC India Chairman Aman Chadha said in a statement.

As per an estimate, now an exporter has to spend additional Rs 6,500 to Rs 8,000 to send the consignment, it said adding "the solution lies in round the clock land port facility and this needs to be upgraded".

He also demanded doing away with the practice of taking permission from Customs Commissioner for shipments to Bangladesh by Barge.

On exports to Nepal, he said Customs authorities insist on different kind of papers which are not necessary during the time of processing of Bill of exports (BoE).

The BoE are allowed to be processed only when materials physically cross the border.

Further, the council said that procedures for exports in general through different ports have become cumbersome.

There are about 24 steps required by an exporter from the time of receiving an export order to remitting of Foreign Agency Commission including claiming of export incentives, it said.

"The process takes 6 months at the minimum to complete this cycle. It is estimated over 100 signatures are required and about 16 to 18 hours required to complete this process," it said.

The total transaction cost for a medium sized export consignment of around USD 20,000 would be between 8.89-11.89 per cent, it said adding the government should think of a "Single Export Document".

"When exports have been declining despite currency depreciation, the country can ill-afford delays in shipments and incurring heavy transaction costs," it added.