Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010The latest phase of implementation started in 2007 with the aim of consolidating the ASYCUDA system, adoptingthe broker and selectivity modules, and installing the Wide Area Network (WAN) in the major customs stationsto allow for the exchange of customs data. The Tribhuvan Airport customs station has installed the brokermodule, which is scheduled to be rolled out to other customs offices. The selectivity module is being testedat the airport. WAN is scheduled to be installed in November 2009. This partial automation is hindering themodernization of process. The 2009-13 modernization plan contains six objectives under Strategy 7, whichaims to maximize the computerization of customs processes. The DoC should commence discussions withUNCTAD about a further phase of ASYCUDA roll-out, in order to adopt new modules and to undertake theassociated redesign of procedures and documentation. Funding for this technical assistance will have to beidentified for this further phase of automation.6.6 ValuationThe ability of customs to effectively value traded goods can reduce inspection and clearance delays as well asenhance revenue collection. The Customs Act 2007 adopts international valuation rules and makes provisionfor a Valuation Review Committee. These are important reforms, but difficulties remain in the determinationof the transaction value based on the invoice provided. Once importers submit the valuation declaration formfor imports, customs verifies the value against the valuation database. As the database is not yet sufficientlydetailed or specific, there is often a dispute in respect of the determination of the value. Nepal needs todevelop its valuation capacity. It needs to maintain a central valuation database and ensure access by localcustoms stations. The database must be developed to be more product-specific. As an interim measure thevaluation database should be interfaced with ASYCUDA.6.7 Post-Clearance AuditPost-clearance audits are an important instrument to deal with revenue evasions. They are particularlyimportant for countries wishing to make the transition to risk management approaches to customs controlas they provide a mechanism to address potential tax violations, as 100 per cent verification is phased out.The DoC PCA office completed around 36 audits in 2009. The 2009-13 plan sets a target of 200 audits a year.At present the majority of audits are carried out by the district offices. There remains a need to develop adedicated, centralized post-clearance audit capability with the DoC. Recruitment and training of auditors isrequired. A PCA methodology specific to Nepal should be established, together with a PCA manual.6.8 Risk ManagementModern approaches to customs procedures imply that, in order to reduce clearance times, officials shouldconduct selective documentary and physical examinations based on a risk assessment. Under the Customs Act2007 Nepal has the necessary provisions for adopting a selective method to clear goods without examinationor through examination of only documents. However, the system is not yet operating and the current normremains full physical inspection of imported goods.A prerequisite for risk management approaches is the roll-out of the ASYCUDA selectivity module to allowfor import selectivity and profiling, together with a risk-based sample of companies for post-clearanceaudit. There is also the need to develop a risk management plan, addressing many aspects of establishingrisk management, including establishing risk management units; developing a risk management manual;NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT165