Training Workshop on Trade and Transport Facilitation Monitoring Mechanism (TTFMM) Nepal, 15-17 April 2014 ADB/ESCAP (2013), SASEC BPA Report 2013: Towards Simplifying Trade Processes and Procedures in SASEC
Training Workshop on Corridor 4 - Kathmandu, Mugling, Narayanghat, Trade and Transport Facilitation Monitoring Mechanism (TTFMM) SAARC Corridors Corridor 1 - Lahore, Amritsar, Julundur, Ludhiana, Corridor 8 - Thimphu, Jaigaon, Phuentsholing, Nepal, 15-17 April 2014 Hetauda, Pathlaiya, Rajbiraj, Kakarbhitta, Panitanki, Corridor 7 - Kathmandu, Mugling, Narayanghat, Corridor 2 - Kathmandu, Mugling, Narayanghat, Corridor 5 - Samdrup Jongkhar, Guwahati, Dispur, Corridor 10- Kathmandu, Mugling, Narayanghat, Corridor 3 - Thimphu, Jaigaon, Phuentsholing, Corridor 6 Chengrabandha, Burimari, Rangpur, Gaibanda, Bogra, Corridor 9 - Malda, Mehdipur, Rajshahi, Natore, Ambala, Delhi, Ghaziabad, Hapur, Moradaban, Agartala, Akhaura, Dharkar, Camilla, Chittagong Shillong, Dawki, Sylhet, Bazar, Narsingdi, Dhaka, Siliguri, Phulbari, Banglabandha, Rangpur, Gaibanda, Butwal, Bhairahawa, Sunauli, Gorakphur, Barabanki, Hetauda, Pathlaiya, Birgunj, Raxaul, Sagauli, Motihari, Chengrabandha, Siliguri, Phulbari, Banglabandha, Butwal, Nepalgunj, Rupaidiha, Nanpara, Bahraich, Baraigram, Sirajganj Baraigram, Jessore, Khulna, Mongla, Tangail, Tongi, Bareilly, Shahjahanpur, Sitapur, Lucknow, Varanasi, Dalkola, Katihan, Malda, Mehdipur, Kolkata, Haldia Magura, Jessore, Benapole, Petrapole, Kolkata Muzaffarfur, Purnea, Barhi, Asansol, Kolkata, Haldia Barabanki, Lucknow Lucknow Bogra, Baraigram, Jessore, Khulna, Mongla, Tangail, Barhi, Asansol, Kolkata, Haldia Dhaka, Camilla, Chittagong Tongi, Dhaka, Camilla, Chittagong (click on the colors) click on the colors SAARC Corridor 1 SAARC Corridor 6 SAARC Corridor 2 SAARC Corridor 7 SAARC Corridor 3 SAARC Corridor 8 SAARC Corridor 4 SAARC Corridor 9 SAARC Corridor 5 SAARC Corridor 10 River All Corridors Corridor Selection for BPA Study This map was produced by the cartography unit of the Asian Development Bank. The boundaries, colors, denominations, and any other information shown on this map do not imply, on the part of the Asian Development Bank, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries, colors, denominations, or information.
Corridor 1 (Nepal corridor) Kakarvitta (Nepal) – Panitanki (India) – Fulbari (India) – Banglabandha (Bangladesh) 1. Nepal’s import of lead acid accumulator 3. Transit distance: 54 km [Kathmandu to Dhaka – 1152 km] 2. Nepal’s export of lentil 4. Nepal’s 1% total trade (US$ term) passes through this corridor Training Workshop on TTFMM, Nepal, 15-17 April 2014
Corridor 2 (Bhutan corridor) Phuentsholing (Bhuatn) – Jaigaon (India) – Hasimara (India) – Changrabandha (India) – Burimari (India) 2 . Bhutan’s export of oranges 1. Bhutan’s import of fruit juices 3. Distance: 115 km Training Workshop on TTFMM, Nepal, 15-17 April 2014
Corridor 3 (Nepal corridor) Kathmandu (Nepal) – Birgunj (Nepal) – Raxaul (India) – Kolkata (India) 1. Nepal’s import of Crude soya bean oil 2. Nepal’s export of carpet 3. Distance: 704 km (Kolkata port), 832 km (Haldia port) 4. Share of Birgunj customs to total trade: 44% Handling of cargo by ICD Birgunj Containerized Break Bulk Cargo Cargo No of Total No of Total MT Train TEUs Train 2008/09 178 14702 7 18242 2009/10 207 17616 81 194313 2010/11 222 19440 128 326826 Growth (%) 12.36 16.11 864.29 845.81 Source: Rajkarnikar (2013) Training Workshop on TTFMM, Nepal, 15-17 April 2014
Study Corridors and Products Corridor Countries Distance, Distance, Products Linked T otal Transit Traded Corridor 1 (Nepal corridor) Nepal – 1152 km # 54 km Lentil Kakarvitta-Panitanki-Fulbari- India - LAA* Banglabandha Bangladesh Corridor 2 (Bhutan corridor) Bhutan – 630 km^ 115 km Orange Phuentsholing-Jaigaon-Hasimara- India - Fruit Changrabandha-Burimari Bangladesh juice 1047 km Corridor 3 (Nepal corridor) Nepal - 1287 km $ Carpet Kathmandu-Birgunj-Raxaul - India CSO** Kolkata *Lead acid accumulator **Crude soya bean oil #Kathmandu to Dhaka. ^Thimpu to Dhaka $Kathmandu to Kolkata Training Workshop on TTFMM, Nepal, 15-17 April 2014
Main Issues to be Assessed Trade transaction process 1. Number of documents and copies 2. Cost 3. Time 4. Transit 5. Parties involved 6. Other issues 7. Training Workshop on TTFMM, Nepal, 15-17 April 2014
Training Workshop on Trade and Transport Facilitation Monitoring Mechanism (TTFMM) Nepal, 15-17 April 2014 1. Trade Transaction Process (Example of Corridor 1)
2. SHIP 2.1 Obtain COO District Chamber of Commerce 2.2 Obtain Cargo Bangladeshi Insurance Importer Insurance 1. BUY company 2.3 Appointment of Agent Clearing Agent 2.4 Arrange Transport Nepalese Transporter Exporter Importer 2.5 Move Cargo to Bank Kakarvitta Border Quarantine Office 3. PAY 2.6 Obtain Quarantine Certificate Kakarvitta Customs (Nepal) 2.7 Customs Exporter Clearance at Panitanki Bank Kakarvitta Customs (India) 2.8 Customs Clearance at Transit (India) Phulbari Corridor 1: Nepal’s Export Customs (India) Process of Lentil to Bangladesh 2.9 Move Cargo to NTWLC Banglabandha Training Workshop on TTFMM, Nepal, 15-17 April 2014
2. SHIP 1. BUY GOB 2.1 Opening of L/C 1.1 Conclude Sales Contract and Trade Terms Exporter 2.2 Verification of L/C Representative by Exporter 2.3 Prepare Import Bank Nepalese Documents Exporter Bangladeshi Importer DCCI 2.4 Appointment of Transport Agency 3. PAY Testing Authority 3.1 Establish 3.2 Claim 2.5 Appointment of Payment Payment Clearing Agent Guarantee for Goods Transporter 2.6 Customs Declaration Clearing Agent 2.7 Customs Inspection Importer Exporter Burimari and Border Clearance Bank Bank Customs (Bangladesh) Corridor 1: Bangladesh’s import 2.8 Transport Goods to process of Lentil from Nepal Destination Border Security (Bangladesh) Training Workshop on TTFMM, Nepal, 15-17 April 2014
2. SHIP 2.1 Obtain Approval Letter AEPC Bangladeshi Exporter 1. BUY Bank 2.2. Prepare and Collect Document Clearing Agent Nepalese 2.3 Appoint Clearing Importer Agent NTWLC Importer Bank Transporter 2.4 Contact Customs, 3. PAY Arrange Transshipment, and Transportation Banglabandha Customs (Bangladesh) Exporter Bank Phulbari Customs 2.5 Customs Clearance (India) at Transit and Kakarvitta Customs Panitanki Corridor 1: Nepal’s Import Customs (India) process of LAA from 2.6 Transfer of Goods Bangladesh Kakarvitta to Destination Customs (Nepal) Training Workshop on TTFMM, Nepal, 15-17 April 2014
2. SHIP 1. BUY 2.1 Prepare MCCI Export Documents 1.1 Conclude Sales Contract and Trade Terms 2.2 Appointment of Bank Transport Agency Nepalese Importer 2.3 Transport NBR Bangladeshi to Port Exporter 3. PAY Transporter 2.4 Appointment of Clearing Agent 3.2 Claim 3.1 Establish Payment Payment for Goods Guarantee 2.5 Customs Clearing Agent Declaration Banglabandha Customs 2.6 Customs Inspection (Bangladesh) and Clearance Importer Exporter Bank Bank Corridor 1: Bangladesh’s Export process of Border Security 2.7 Border Crossing (Bangladesh) LAA to Nepal Training Workshop on TTFMM, Nepal, 15-17 April 2014
Training Workshop on Trade and Transport Facilitation Monitoring Mechanism (TTFMM) Nepal, 15-17 April 2014 2. Number of Documents
Documents and Copies Required Corridor Exporter Importer Products Documents & Copies (No.) Exporter Importer T otal Corridor 1: Kakarvitta- Nepal Bangladesh Lentil 18 18 36 Panitanki-Fulbari- (44) (71) (115) Banglabandha Bangladesh Nepal LAA 15 15 30 (50) (33) (83) Corridor 2: Phuentsholing- Bhutan Bangladesh Orange 14 18 32 Jaigaon-Hasimara- (26) (69) (95) Changrabandha-Burimari Bangladesh Bhutan Fruit Juice 9 16 25 (30) (44) (74) Corridor 3: Kathmandu- Nepal Third Carpet 19 19 Birgunj-Raxaul-Kolkata country* (44) (44) Third country** Nepal CSO 22 22 (49) (49) *Excluding export processes **Excluding import processes Numbers in parentheses are copies needed for export and import. Training Workshop on TTFMM, Nepal, 15-17 April 2014
Training Workshop on Trade and Transport Facilitation Monitoring Mechanism (TTFMM) Nepal, 15-17 April 2014 3. Costs
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