New items of Border Trade included in Customs exemption list; Traders rejoice

GANGTOK, 19 June: Confirmation has arrived from the Centre that the five items added to the list of goods allowed for Border Trade over Nathula are exempt from Customs Duty. A press release issued by the IPR Department informs that the official intimation for exemption comes as per a Notification [No. 41/2012-CUS] issued by the “concerned Ministry” on 14 June 2012, duly amending notification No. 38/96-CUS dated 27/3/1996.
The demand for expansion of the trade list has been under consideration for six years now, raised by the traders with the resumption of Border Trade back in 2006. Five additional items - readymade garments, shoes, quilt/blankets, carpets and local herbal medicines – were allowed for import from the Tibetan Autonomous Region from this trading season, but the concerned notification made no specific mention on whether these goods were exempted from Customs Duty or not. Officials of the Customs office here decided to levy Customs Duty of the five new items and this was protested by Border Traders here who boycott trading in protest.
With the confusion no cleared, the Nathula Border Trade Welfare Association has welcomed the decision and thanked the Commerce & Industries Department and the State Government for having taken up their demand with the Union Government.
Speaking to NOW! today, the association’s general secretary, Lakpa Sherpa, said that they were informed of the latest development at a meeting with officials of the Commerce & Industries Department here this afternoon.
“We are thankful to the Department and the State Government for having followed up our request and are very happy with the development,” he said, adding that with the confusion cleared, they will begin engaging in Border Trade from Wednesday itself.
All the five items of exports are brought within the purview of exemption of duty under Custom Tariff Act. All the concerned stakeholders especially, the traders are advised to transact business within the approved parameters, the Department has conveyed through its press statement.
The release explains that in pursuance of powers delegated under the Foreign Trade Policy 2004-09, the Director General of Foreign Trade, issued a Public Notice No. 110/2009-204 (RE-2010), dated 7/5/2012, adding five new items of import namely; under the Indo-China Border Trade.
However, exemption of customs duties was not, simultaneously, done with the above public notice, as in the case of existing items of import and as a result of which the traders in the Indian side were unable to freely import these five items. This had led to apprehension among traders that these five items would attract customs duty at high rate thereby affecting the prospect of smooth border trade.
Considering this fact, the Department of Commerce and Industries had taken up the issue of extension of the benefit of duty exemption with the concerned Ministry of Government of India.