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IEC dampens trade activities through Nathu La
Gangtok, Aug 13: Bilateral trade between India and China through Nathu La pass have been dampened, even after more than a month of its reopening, as Sikkemese traders did not possess Import-Export Code(IEC).
Nathu La Pass, a part of the ancient silk route, was reopened on July 6 this year, 44 years after it was closed, in the wake of the Sino-Indian conflict in 1962.
Business was stalled for around fortnight as the custom officials did not allow the traders to take their goods to the other side of the border without an Import-Export Code (IEC), issued against a Permanent Account Number card by the income tax department, mandatory for conducting border trade.
No Sikkimese traders possess the IEC as Direct Income Tax law as it was not provided by the state.
The trade resumed only after the Union government exempted the Sikkemese traders from possesing the IEC to a ceiling of Rs 25,000 per traders. But soon new problems surfaced and limited the volume of trade.
Sikkim Chamber of Commerce (SCC) President S K Sarda said on an average four businessmen had gone for trading regularly and a business transction of around Rs three lakh had been made so far.
The businessmen were mainly trading rice, atta, maida and vanaspati.
Recently the Vice-Chairman of Tibetan Autonomous Region(TAR) of China had reportedly told a group of visiting journalists that the volume of trade through Nathu La pass was far below the expectation and blamed the Indian government for it.
A study group commissioned by the Sikkim government prior to the reopening of the route estimated the trade flow through the pass to touch Rs 206 crore by 2007, Rs 2266 crore by 2010 and Rs 2203 crore by 2015 in the higher side and Rs 353 crore in 2010, Rs 450 crore in 2015 and Rs 574 crore in 2020 on the lower side.
Mr Sarda said the low volume of business was due to the small traders, who found the border trade economically unviable. The small traders had to shell out a large amount on transport cost in the absence of a regular communication facilties from Gangtok to Chinese trade mart at Requinggang. He said a businessman had to pay Rs 500 to cover a distance of 17 km from Nathu La to Renqinggang.
SCC's request to the state government to run a bus service on all the four trading days of the week for the benefit of the small traders had not been conceded.
The businessmen also faced problems in loading and unloading their goods at Sherathang trade mart as no porters were available there. Since the rule provided that only Sikkemese people would be involved in the trade activities, and the porters avialble at Gangtok were of Nepalese origin, the businessmen found it difficult to manage, he said.
The SCC President demanded the list of items for trade should be revised and expanded to suit the needs of time in order to make trade vibrant.
He said the items listed for border trade in 1992 for Shikila and Lipueka were accepted for border trade in Nathu La. Except Borax, silk and wool the other items figured in the import list were outdated as there were no takers for such goods now.
As per the ageement Indian can export 29 items. As many as 15 items figured in the list of importable items from China.
Mr Sarda demanded that the restrictions on tradeable items to be removed and all items coming to the county through the sea route should also be allowed to be traded through the land route.
Mr Sarda demanded increase of the ceiling on IEC from Rs 25,000 to Rs one lakh. Opening of an unit of the Central Food Laboratory at Nathu La is necessary for the speedy clerance of edible goods for marketing. He said the Chinese traders were not yet aware of the rules of the trade and bringing items not included in the agreed list for trade despite repeated request by the Indian officials not to bring such items.
Both the official and the SCC President were of the view that the border trade ''is in its initial stage and the volume of trade will grow on the expected line as the infrastrcture develop and problems are sorted out.''
UNI
