New rule to encourage use of electronic cargo tracking system
In a bid to facilitate the implementation of electronic cargo tracking for third country imports, Nepal Rastra Bank has allowed commercial banks to issue payment instruments in foreign currency for cargo transported by railway to Birgunj dry port and Biratnagar customs point only. Earlier, banks were allowed to issue payment instruments for cargo dispatched to other customs points on the Nepal-India border too. Nepal Rastra Bank published a circular containing the new provision on Monday. The central bank said the policy followed the government’s move to implement the electronic cargo tracking system and transshipment facilities. Currently, electronic cargo tracking and transshipment facilities only apply to shipments transported by Indian Railways to Birgunj and Biratnagar. As per the new provision, banks cannot issue letters of credit, drafts or telegraphic transfers to traders importing goods using the Indian railway network. Banks issue these instruments to allow importer...