Exports to India have also continued to increase with the bulk of such exports attributed to production by Indian companies that have located in Nepal to export to India. If implemented as written, this treaty will place Nepalese products at par with Indian products in the Indian market. The delivery of goods is always done by the distributor. In normal practice 'Credit Facilities' are also allowed by the manufacturers, but these facilities are limited to distributors and retailers. Credit periods vary by product category but most distributors expect supplier credit of at least one month.
Distributors pass on the credit to the retailers.
It is, however, difficult to assess local agents. Due to the absence of any local credit rating company and the lack of public information, financial details provided by companies cannot be easily verified. One way of obtaining information is through the commercial banks in Nepal and leading business executives. The US Embassy is in a position to advise on this matter and should be consulted regarding potential agents or customers. See Section 5.