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Overall exports of handicrafts halted from July 1
Jul '09
As China has refused the entry of Nepali handicrafts from July 1, the export of Nepal's handicrafts through Tatopani customs to China have come to a standstill. But according to the traders, they were initially informed that China was restricting the imports of religious handicraft items only.

Over this period, China had just allowed the entry of a container of textile items, which is contrary to what we have been informed initially, said Mr. Dilip Khanal, Executive Secretary of Federation of Handicraft Association of Nepal (FHAN).

This restriction is directly affecting the trade of handicrafts, which is the most preferred export of Nepal to China. In this regard, the exporters expressed grief that they are not getting exact information about the Chinese restriction, neither through the government officials nor through the Chinese Embassy.

A notice had been posted at Chinese customs office in the month of June to inform traders about the new restriction of China. But in the mean time, the trade officials said that they have not received any official notification from China. Even the officials at Nepal-China chambers of Commerce and Industry (NCCCI) too said the same.

FHAN has decided to send its delegation to Tatopani and to the Tibetan side of the border to assess the situation as it was unable to confirm the reports of restriction from concerned authorities. This restriction from China could increase the trade deficit of Nepal that already stands at more than Rs. 22 billion with China.

As per government figures, handicraft exports to China accounts for Rs. 10 million per annum, while the traders said that the exports of religious handicrafts alone stands over Rs. 50 million. So, the impact of this restriction is much deeper than how it appears, said a trader.

Fibre2fashion News Desk - India

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