How Are India and Bhutan Strengthening Customs Cooperation and Trade?
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Synopsis
India and Bhutan are taking significant steps to enhance their customs cooperation and trade relations. This commitment, reaffirmed in a recent meeting, aims to facilitate smoother border transactions and improve overall trade dynamics. With India being Bhutan's largest trading partner, these discussions are vital for both nations' economic growth.
Key Takeaways
- Strengthened customs cooperation between India and Bhutan.
- Focus on trade facilitation and secure border management.
- India is Bhutan’s top trade partner, accounting for 80% of trade.
- Discussions included automation of transit processes and capacity building.
- Annual meetings aim to align with global best practices.
New Delhi, April 28 (NationPress) India and Bhutan have reiterated their commitment to bolster customs cooperation, improve trade facilitation, and ensure secure and efficient border management, as announced on Monday.
This affirmation was made during the sixth Joint Group of Customs (JGC) meeting held in Thimphu.
As Bhutan's primary trading partner, India accounts for approximately 80 percent of Bhutan's total trade, serving as both a major source of imports and a key export destination.
The discussions at the meeting revolved around numerous bilateral matters aimed at enhancing trade and transit between the two nations.
Topics included the automation and digitization of transit processes, Coordinated Border Management (CBM), pre-arrival exchange of Customs data, the Customs Mutual Assistance Agreement (CMAA), and the movement of transit cargo under the Electronic Cargo Tracking System (ECTS), as stated by the Ministry of Finance.
The Bhutanese delegation expressed their gratitude to the Central Board of Indirect Taxes and Customs (CBIC) for their ongoing support.
India suggested expanding capacity-building initiatives in areas such as Risk Management System (RMS), Authorised Economic Operator (AEO), and Food Safety Standards, in addition to targeted capacity development for Bhutanese importers and exporters, as per the Finance Ministry.
The meeting was co-chaired by Surjit Bhujabal, Special Secretary and Member (Customs) of CBIC, and Sonam Jamtsho, Director General of the Department of Revenue and Customs in Bhutan's Ministry of Finance.
Given that Bhutan is a land-locked nation, trade through land Customs Stations is particularly crucial.
The annual meetings of the India-Bhutan Joint Group of Customs aim to address issues related to redefining and re-engineering Customs procedures, enhancing Customs cooperation, and facilitating cross-border trade in alignment with global best practices.
There are 10 Land Customs Stations located along the India-Bhutan border, specifically in the states of West Bengal (6) and Assam (4), according to government sources.
Point of View
It is clear that the collaboration between India and Bhutan is not only beneficial for trade but also vital for regional stability. This partnership exemplifies how neighboring countries can work together to enhance mutual economic interests, and such initiatives should be supported for long-term prosperity.
NationPress
03/05/2025
Frequently Asked Questions
What is the significance of India-Bhutan customs cooperation?
India-Bhutan customs cooperation is significant as it facilitates trade, enhances border management, and strengthens economic ties between the two nations, contributing to regional stability.
How much of Bhutan's trade is with India?
India accounts for approximately 80 percent of Bhutan's overall trade, making it Bhutan's largest trading partner.
What were the key topics discussed in the recent meeting?
The meeting addressed various topics, including automation of transit processes, Customs Mutual Assistance Agreement, and capacity building for Bhutanese importers and exporters.
How many Land Customs Stations are there along the India-Bhutan border?
There are 10 Land Customs Stations along the India-Bhutan border, located in West Bengal and Assam.
What is the goal of the Joint Group of Customs meetings?
The goal of the Joint Group of Customs meetings is to enhance cooperation, redefine customs procedures, and promote cross-border trade between India and Bhutan.
