Nepal has put forward a proposal for a customs agreement with India, aiming to facilitate the exchange of information and address customs-related offenses along the border, according to officials. Given that India is Nepal’s largest trading partner and the two countries share a border spanning over 1850 km across several states, particularly Sikkim, West Bengal, Bihar, Uttar Pradesh, and Uttarakhand, such an agreement could potentially help mitigate offenses, given that much of the trade occurs through land routes.
Ram Prasad Ghimire, the revenue secretary of Nepal’s finance ministry, stated that the proposed customs agreement could play a crucial role in reducing customs-related offenses if accepted and signed. Although India has yet to respond to the proposal, sources suggest that measures to combat offenses across the border would likely be considered beneficial for both nations, given their mutual interests.
In December 2023, India exported goods worth $603 million to Nepal, while Nepal’s imports from India totaled $77.7 million. Notably, Nepal has imposed a 50% penalty for any discrepancies detected between invoices and customs records. Given Nepal’s landlocked status, much of its international trade passes through India, mainly via ports in Haldia and Kolkata, West Bengal, with freight also arriving from Vishakapatnam port since 2016. These goods are then transported by road or rail to Nepal’s border customs checkpoints.
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