PRESS RELEASE

In August 2006, Government of India had issued a notification granting an exclusive exemption to Nepal from payment of 4% additional duty of customs on specified goods manufactured in Nepal and exported from Nepal to India. Exemption had also been extended by Government of India in June 2006 on primary goods exported from Nepal to India.

Based on additional information provided by Government of Nepal, Government of India has further exempted, with effect from 25th January 2007, one hundred and eleven categories of goods from payment of 4% additional duty of customs. With this new notification, all Nepali products for which Government of Nepal had requested such waiver and provided the requisite information have been covered.

It would be recalled that the exemption had been requested by the Hon'ble Prime Minister of Nepal Shri Girija Prasad Koirala during his visit to India in June 2006.