Kathmandu. The Nepal Overseas Export Import Association has drawn the attention of Industry, Commerce and Supplies Minister Damodar Bhandari to the complications created by the legal provision that requires the maximum retail selling price (MRP) to be mandatorily mentioned on the labels of goods sent to the market for sale.
A delegation led by the association’s first vice-president Anil Kumar Agrawal met Commerce Minister Bhandari at his office on Tuesday and apprised him of the problem and requested him for facilitation.
While the current government’s initiative to remove shortcomings in laws related to trade and business is generating positive energy among investors and businessmen, the provision that requires the mandatory mention of MRP on the labels of goods has added complexity to business, the association says. .
The Department of Commerce, Supplies and Consumer Protection has made it mandatory since last Chaitra 20 to affix a label containing six types of details, including the price, batch number and production date, on the label of goods sent for sale, as mentioned in Sub-section 2 (f) of Section 6 of the Consumer Protection Act, 2075 BS.
The association says that it is very difficult for importers or manufacturers to set the maximum retail selling price as there is no uniformity in freight rates and the freight rates of goods are determined based on factors such as competition, road facilities, seasonal conditions and fuel prices.
2/3 based on cost The Consumer Protection Act 2075 BS and the regulations under it are silent on the issue of whether or not a maximum retail price can be set, and even if a maximum retail price of 2/3 types can be set, this task will be difficult as the producer or importer does not know when and how much the product will be in demand, the association has informed the minister.
Similarly, the law is not clear on which unit to apply the label, it is not possible to affix the label to the unit of some products imported from abroad, and foreign producers and exporters do not agree to apply the label at the time of packaging on products supplied to a small market like Nepal.
In a situation where customs offices use the maximum retail price as the basis for determining the price of imported products, for places where higher transportation costs are incurred The association says that if the goods are inspected based on the MRP of the specified upper limit, the business will be unable to clear the goods from customs.
The association says that since the maximum retail selling price of a product requires an analysis of other factors besides transportation costs, this will be complicated in itself and will increase the cost of doing business. The delegation has urged the Minister not to make MRP mandatory for items other than food, medicine and basic necessities.
In response, Minister Bhandari explained the reason for making the provision of MRP mandatory and said that the Ministry is always ready to facilitate issues that add complexity to business.
Recalling that the current government has amended many laws with the aim of reducing the complexity of business, he suggested the association to discuss the difficulties in mentioning the maximum retail price with the Ministry officials on a point-by-point basis.
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