Strict customs reduces cross-border trade

By Siraj Khan, Nepalgunj, May 19: Trade across the Nepal-India border has sharply declined after the government strictly enforced a rule requiring customs duty on goods worth more than Rs. 100 brought in from India.

The Rupaidiha Udyog Byapar Pratinidhi Mandal, a traders’ body based in the Indian border town of Rupaidiha near the Jamunaha Border Point, said the new customs policy introduced by Nepal has reduced border trade by as much as 75 per cent and demanded changes to the rule.

The organisation has submitted a memorandum to the Indian government through the Bahraich district administration, stating that strict customs collection on goods worth more than Rs. 100 has created a business crisis in Rupaidiha.

In the memorandum submitted to the district administration by municipal president Shailesh Jaiswal, the traders said businesses in Rupaidiha and surrounding border areas had been severely affected since Nepal began strictly implementing customs duties on goods exceeding Rs. 100 in value.

Jaiswal said there had previously been a more flexible arrangement for daily consumer goods, but stricter checks are now being applied even to items such as rice, sugar, cooking oil, medicines and vegetables. 

According to him, this has reduced trade in border markets by up to 75 per cent. The traders’ body said Nepal’s policy has caused financial losses to Indian traders and negatively affected trade relations between the two countries. 

The memorandum also mentioned increased tensions among traders and the public due to stricter checks by the Armed Police Force Nepal at the border.

The organisation urged the Indian government to intervene and initiate talks to ease the restrictions on goods worth more than Rs. 100. It also stressed the need for both sides to preserve the long-standing social and trade relations in the border region.

Following the stricter enforcement at the border, the number of shoppers travelling to Rupaidiha from Nepal’s Banke, Bardiya and Dang districts has significantly decreased. According to the Nepalgunj Chamber of Commerce and Industry, trade across the border has almost come to a standstill, while businesses on the Nepali side have seen noticeable growth.

President of the chamber, Tanka Dhami, said the stricter measures should continue and even be strengthened further.

He said the tighter border controls have helped revive markets not only in Nepalgunj and Kohalpur but also in nearby hill districts.