FENEGOSIDA submits 14-point memo to NRB, demands revision of gold import manual

KATHMANDU: Federation of Nepal Gold and Silver Dealers' Association (FENEGOSIDA) has requested the Nepal Rastra Bank (NRB) to revise the 'Gold Import and Sales/Distribution Manual, 2011' to make it more practical. A delegation led by FENEGOSIDA President Arjun Rasaily visited the NRB office on Friday to present this request.

President Rasaily submitted a 14-point memorandum to Revati Prasad Nepal, Executive Director of NRB's Foreign Exchange Management Department. Rasaily stated that the current manual is impractical and fails to address the issues gold and silver traders face. Rasaily called for an effective code of conduct to resolve these problems.

NRB Executive Director Nepal assured the delegation that he took their demands seriously and would take immediate steps to address them through necessary consultations with relevant agencies.

Rasaily highlighted the difficulties businesspersons face in ensuring a steady supply of gold to meet market demand. He requested an environment where gold distribution is based on the number of members and Permanent Account Numbers (PAN). He also proposed providing 100, 200, and 500 grams of gold from designated customs entry points, allowing gold to be withdrawn from any bank by using a bank account, and creating uniformity in customs rates. Additionally, he urged increasing the daily import limit to 30kg for businesspersons and 20kg for industry and large taxpayers. He suggested that gold should be collected from the bank within 30 days of importation, with banks allowed to sell uncollected gold from the 31st day in coordination with FENEGOSIDA.

Rasaily emphasised the need for a system that aligns gold imports with market demand for at least six months. He also proposed that the bankers' association be allowed to import gold based on market demand, in consultation with the relevant federation. The sales and distribution system for gold and silver should be effective in major cities like Chitwan, Itahari, and Birgunj, in addition to Bagmati Province.

FENEGOSIDA noted that while India has reduced the customs rate on gold to 6%, Nepal's rate remains at 20%. They stressed the need for coordination with the Finance Ministry, Department of Customs, and other agencies to make the customs rate practical.

General Secretary Kiran Bhai Bajracharya, Treasurer Sudeep Shrestha, and other FENEGOSIDA representatives were also present at the meeting.