Custom Clearance Processing Time Analysis and Factors Affecting Clearance Time for Goods in Birgunj Custom of Nepal

Abstract

Trade plays a fundamental role in shaping the country’s economy and for this imported goods must be delivered to the market in the quickest possible time without unnecessary delay. This study covers the freight vehicles, which clears the custom clearance process for Kathmandu and transports the same goods to Kathmandu from Birgunj. In this study average processing time in Birgunj customs areas (Birgunj customs, Birgunj Inland Clearance Depot (ICD) and Birgunj Integrated Check-Post (ICD)) as well as factors affecting processing time in Birgunj customs area has also been explored. Custom Clearance time at the particular points was collected using the trained enumerators. Key Informant Interview (KII) was carried out to explore the factors affecting the processing time and the questionnaire survey was done to identify the factors affecting clearance time. The average processing time for vehicles in Birgunj customs, ICD and ICP for different types of, vehicles, goods and lanes assigned for goods were analyzed. Various factors that are affecting the processing were identified. In Birgunj customs, ICD and ICP in average approximately 30.1 hours, 2.8 hours and 19.2 hours respectively, extra time is being spent by freight vehicle inside the custom yard, other than actual processing time, which shows that there is mainly delay in-between the process other than in actual processing unit and the major factors for this are: owner not clearing the goods on time, due to lack of enough number of agents and unseen syndicate within the freight transportation system.