Kathmandu. Customs agents across the country have called off their protest for the past three days, saying the new customs act brought by the government is impractical and targeted at businessmen. They have been protesting for the past three days saying that the Customs Act-2082 implemented by the government since December 7 was impractical and against businessmen.

The government has called off their agitation saying some of the provisions included in the Customs Act 2082 have created an environment that would have negative impact on the professional rights, ease of working and international trade facilitation.

“We would like to inform all concerned that the pen down program has been withdrawn as the demands of the Federation of Customs Agents Nepal have been positively addressed after discussions were held between the Department of Customs and the Federation regarding the protest program including pen down in customs offices across the country from December 9, 2002. The notice said.

The customs agents have been agitating against the provision of Section 71 (a) of the Customs Act 2082 requiring the declarant to recover the declaration and pass the inspection of such goods if the declarant separately attaches the documents to be attached while declaring the details of the goods in the computer system through electronic means as per the sub-section (3) of Section 20.

“This system is very impractical. In some cases, mistakes happen while working, and it is the duty of the state to give them a chance to correct such mistakes. Kashiraj Upadhyay, senior vice-president of the Federation of Customs Agents, said. “The state should also help by setting up a separate help desk to rectify this. ’

At the call of the Federation of Customs Agents, the customs agents had closed the office for 3 days and halted all the work of customs clearance. Upadhyay said that the FNCCI has obstructed the customs service across the country in protest against some provisions of the Customs Act, 2082 which came into effect from December 7, 2082. According to the FNCCI, the provisions of the new act have instead of easing the international trade and customs process, have created a situation where the professional rights, industry and legitimate trade of customs agents have been discouraged.

“The FNCCI has been demanding to include fines, license renewal and suspension, bank guarantee, user-ID management in computer system, incut-out note system, and limiting the customs clearance of goods to licensed customs agents, among others,” reads the statement. Upadhyay says, “But the law that has been implemented has increased unnecessary penalties and fines and increased the right to testify.” ’

Clause 33 of the Customs Act 2082 states that there should be no under-invoicing or over-invoicing. Sub-section 2 of the said section states, “If the declarer is found to have under-invoked while declaring the price of the goods pursuant to sub-section (1), the customs officer shall have to pass the test by imposing a fine of 100 percent of the amount of the duty to be levied on the price so declared.” Earlier, the penalty was 50 per cent. Entrepreneurs including agents have demanded that the government should remove the provision in the Act. “If the government does not remove this provision, it will encourage hundi transactions. Hari Prasad Gautam, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in Birgunj, said.

Gautam believes that the Act brought by the government is troubling to both businessmen and agents. Gautam said that the Birgunj Chamber of Commerce and Industry is fully in support of this movement. “We had demanded that the fines be reduced in the new Act. Gautam says, “But the government brought a law to impose additional fines on businessmen and agents.” It’s not relevant at all. It should be amended. ’

Similarly, Section 71 (A) of the Customs Act 2082 states that if the name, nature, physical characteristics, character, measurement, size and quality of the imported goods are correct but the quantity is declared, the declarant shall be liable to a fine of 100 percent of the value of the goods and the duty charged. Gautam says that this arrangement is not practical at all. They have demanded that the penalty should be limited to 10 per cent.

Similarly, Section 71 (b) of the same Act states that if the name, nature, physical characteristics, character, measure, size, quality and quantity of the imported goods are correct, the declarant shall be liable to a fine of 25 percent of the customs duty levied on such goods and the duty levied.

Section 71 (c) of the Act states, “If a goods imported are declared to be a different commodity or a product made of one type of substance is declared to be a commodity made of another kind or to distinguish all or any of the nature, physical characteristics, character, measurement, size, weight or quality of the goods or to declare any goods at all, such declarer shall be liable to confiscate the goods by fining them equal to the value of the goods or to pay a fine of two hundred percent of the value of the goods and the duty levied. To inspect such things,” it said. Businessmen and agents say that this fine is very high. They are demanding that there should be a provision to fine at least equal amounts of goods.