20 May, 2012
Kathmandu
Experts have called on the concerned authority to start implementing reforms in the customs valuation system and the classification system to end the current uncertainty.
The government needs to take corrective actions for proper implementation of the customs valuation system and the method of classifying consignments.
The current provisions are dual in nature and there are high chances of subjective evaluation by customs officials. The current classification system of goods is not scientific at all. The government has set the customs duty of cooling items at 5 percent however the customs duty for refrigerators is 25 percent.

The chances of customs fraud with the involvement of employees at customs points and traders can occur any time due to the weakness in the classification system. Traders are taking advantage while importing goods which are of the same type but with different price structures.

The chances of paying the same tariff at the customs points for different types of goods being imported always remain high due to the lack of a scientific classification method.
Traders import high-value garments and low-cost garments by paying the same tariff taking advantage of the lack of a scientific classification system at the customs points.
An international goods classification system called the Harmonized Commodity Description and Coding System also known as harmonized system is expected to bring improvement upon its implementation.