Nepal-India customs meeting kicks off in Kathmandu to boost trade and tackle illicit activities

KATHMANDU: Senior customs officials from Nepal and India gathered in Kathmandu today to deliberate on measures aimed at streamlining bilateral trade, enhancing transparency, and curbing illegal activities such as smuggling and revenue leakage. The meeting, hosted by Nepal’s Customs Department, underscores the growing economic ties between the two neighbors and their shared commitment to addressing trade-related challenges.

Narayan Prasad Regmi, Director of the Customs Department, opened the meeting by outlining its key objectives. “This forum will focus on enabling the advance exchange of preliminary trade-related information between customs offices of Nepal and India,” he said. “We aim to strengthen cooperation to make cross-border trade more efficient and secure.”

A major highlight of the discussions is the proposed implementation of an electronic cargo tracking system for containers transiting through India to Nepal from third countries, or vice versa. This technology-driven initiative is expected to enhance visibility and reduce delays in the movement of goods, a critical factor given Nepal’s landlocked status and reliance on Indian ports for international trade.

Regmi emphasized that the meeting will also address the need to bolster quality control mechanisms at border checkpoints. “We will discuss reinforcing quality and quarantine inspection systems to ensure that imported and exported goods meet required standards,” he noted. This move comes amid growing concerns over substandard imports and the need to protect domestic markets while facilitating trade.

Nepal is set to push for India’s recognition of electronically issued certificates of origin under its National Single Window System, a digital platform designed to streamline trade processes. “This recognition would significantly reduce paperwork and expedite exports to India,” Regmi explained, highlighting Nepal’s efforts to modernize its trade infrastructure.

The agenda also includes accelerating the completion of Integrated Check Posts (ICPs) in Bhairahawa and Chandani-Dodhara, key border facilities intended to improve efficiency in customs clearance. Delays in their construction have long been a bottleneck for traders, and both sides are keen to resolve outstanding issues to meet project deadlines.

Another focal point is easing India’s quality certification requirements for Nepali exports. Nepali producers have frequently cited these standards as a barrier to accessing the vast Indian market, particularly for agricultural and manufactured goods. Simplifying this process could unlock new opportunities for Nepal’s export sector, which saw a remarkable 57.2% surge in merchandise exports in the first eight months of FY 2024/25, according to a recent Nepal Rastra Bank report.

The meeting comes at a pivotal time as both nations seek to balance trade growth with security. Illegal trade and revenue leakage have been persistent challenges along the porous Nepal-India border, prompting calls for tighter controls without stifling legitimate commerce. The advance sharing of trade data and the adoption of electronic tracking are seen as steps toward achieving this delicate balance.

Analysts view the talks as a continuation of efforts to deepen economic integration between Kathmandu and New Delhi. “Nepal relies heavily on India for both imports and transit trade, so any progress in simplifying customs procedures could have a transformative impact,” said a trade expert based in Kathmandu. “At the same time, addressing India’s concerns about smuggling will be key to sustaining goodwill.”

The outcome of the meeting is expected to set the tone for future collaboration, with potential implications for Nepal’s trade deficit—currently at Rs. 987.39 billion—and its broader economic stability. As discussions unfold, stakeholders on both sides are hopeful that concrete agreements will emerge to bolster this vital partnership.