Sikkim traders boycott border trade when new items come with 29% customs duty

TRADERS SEEK CLARIFICATION FROM COMMERCE DEPTT, DEPTT WILL APPROACH CENTRE ON THE ISSUE
AMEET OBEROI
GANGTOK, 22 May: The joy of five items being added by the Central Government to the list of goods allowed for import from Tibet was shortlived for Sikkim traders, when, on the first day of trading yesterday, another surprise was pulled on them with the imposition of a 29% customs duty on the new goods. Border trade is traditionally kept out of the purview of customs duty and no trader, it is learnt, was informed of 29% duty until they arrived at the Sherathang trade mart yesterday. It might be recalled that although trade was to resume on 01 May, heavy snowfall and the poor condition of the road beyond Sherathang had delayed actual trading. With the weather having cleared up, trade was announced to begin yesterday. Confronted with the imposition of customs duty, Sikkim traders have boycott the trade and resolved not to resume until this regime was lifted.
The 05 new items introduced this year are readymade garments, shoes, quilts & blankets, carpets and local herbal medicines.
As per the schedule, trade did resume on 21 May [Monday] wherein a total of 20 trucks from the Chinese side arrived at the Sherathang Trade Mart but there was no trading because of the boycott by traders from Sikkim.
Speaking to media persons, Commissioner cum Secretary, Commerce and Industries Department, BK Kharel, confirmed that traders from Sikkim have stayed away because of the imposition of customs duty and have also sought a clarification on why this was being imposed.
He went on to add that no public notice on exemption in customs duty has been announced by the Government of India and the duty is only imposed on the new items added recently and was not extended to items on the original list.
The Secretary mentioned that the ‘Trade Welfare Association’ through their General Secretary has also sought clarification on the issues from the department on whether custom duty is applicable on imports from Tibet and whether goods imported through this border trade can be sold to states outside Sikkim.
The department will be approaching the Government of India for necessary clarifications on the issue raised by the Association after availing prior approval from the state government, informed the Secretary. He informed that the department will also write to the Ministry of Commerce regarding this issue.
Mean while, Sikkim traders have reiterated that until and unless custom duties are not lifted, they will not take part in trading.
“We the traders have taken it on ourselves not to do any trading until the Custom Duty on the 05 new items is lifted,” informed one of the traders, while speaking to NOW! today. “The goods that we bring from Nathula are not of the finest quality and we have to sell it cheap and now, if we have to pay custom duty then who will buy these goods at a higher price as the same can be purchased from Siliguri markets at cheaper rates,” he added.
He further stated that the imposition of custom duty on these new items was only being demanded in Nathula Border Trade and not in the other two border trading outposts.
On the other hand, the Trade Welfare Association has been tirelessly putting in efforts in convincing the Minister concerned to take up this matter at the earliest and then they will also be calling upon the Member of Parliament, Lok Sabha to look into the exemption of custom duty from the Nathula Border Trade.