Exporters Blue in The Face at Proposed Air Cargo Charges

Tribhuwan International Airport (TIA) Cargo Office is planning to increase cargo charges effective from July 16, the start of the new fiscal year.

However, industrialists opined that the proposed increased cargo charges will affect the export sector.

According to them, government should not be only revenue-oriented but should try to facilitate trade and business as much as possible.

“We need a positive ap- proach. Increasing the air cargo cost of exportable products will have a negative effect,” said Federation of Handicrafts Association of Nepal (FHAN) president Pushkar Man Shakya. The government should focus on adding competitiveness to exportable products rather than increasing air cargo charges, Shakya said.

“There is a lack of effective monitoring, the new TIA charge will definitely increase the export cost while imports will be comparatively less,” he said.

Tourism and Aviation Consultant Maheshwor Bhakta Shrestha said Asian Development Bank (ADB) has provided a loan of around Rs 50-60 million for the development of the Air Cargo Terminal which can reduce loss and damages and also provide a guarantee of security to the goods.

“Till date, there is no perfect service, everything is being haphazardly maintained. If only the Air Cargo Terminal is brought into operation it will ensure the safety of the goods,” said Shrestha. He added that with the weighing system there will be particular charges for goods and there will be the facility for goods insurance. One can claim for loss of goods too. Shrestha said that the TIA Cargo Office wants the Air Cargo Terminal to be maintained by the private sector on a commercial basis. It wants to provide it on a rent-basis.

Currently, there is no weighing system at the Air Cargo office resulting in inaccuracy in cargo data.

According to the propsed increased percentage of general cargo there will be an increase of 614.33 per cent in 50 kg, 3471.61 per cent in 500 kg, 4445.68 per cent in 1000 kg and 5257.41 in 1500 kg, states the comparative cost analysis of general cargo export compared to current and the proposed cost. The current rate for warehouse and demerage charge in total for 50 kg is Rs 70, for 500 kg it is Rs 140 while for 1000 kg its Rs 220 and for 1500 kg the total cost is Rs 280. The proposed rate, to be effective from Shrawan 1st, is Rs 500.03 for 50 kg, Rs 5,000.25 for 500 kg, Rs 10,000.50 for 1000 kg and Rs 15,000.75 for 1500 kg.