India and Nepal Strengthen Customs Cooperation

The 21st Director-General Level Talks on Customs Cooperation took place in Kathmandu, Nepal, on April 10-11, 2025. Delegations from India and Nepal engaged in discussions aimed at enhancing bilateral customs cooperation. The Indian team was led by Mr. Abhai Kumar Srivastav, while the Nepali delegation was headed by Mr. Mahesh Bhattarai. The talks addressed various pressing issues, including smuggling prevention and the automation of customs processes.

Key Agenda Items Discussed

The meeting covered a wide range of agenda items crucial for improving customs operations between the two nations. Among the primary topics were measures to combat smuggling, which has been a persistent challenge for both countries. The delegations reviewed the progress on the Memorandum of Understanding (MoU) regarding the Pre-arrival Exchange of Customs Data and the Electronic Origin Data Exchange System (EODES). They also discussed the finalization of the Customs Mutual Assistance Agreement (CMAA) and the facilitation of transit cargo movement through the Electronic Cargo Tracking System (ECTS).

Additionally, the talks emphasized the need for the automation and digitization of transit processes, which would streamline operations and enhance efficiency. Upgrading border infrastructure was also a significant point of discussion, as both sides recognized its importance in facilitating trade. The meeting concluded with an agreement to implement knowledge-sharing programs aimed at capacity development for customs officials in both countries.

Addressing Trans-Border Criminal Activities

Another critical aspect of the discussions was the issue of trans-border criminal activities, particularly the smuggling of gold, narcotics, and counterfeit currency. The delegations acknowledged the need for enhanced cooperation to tackle these illicit activities effectively. Both sides expressed their commitment to sharing intelligence and taking necessary measures to control unauthorized trade across their borders.

Recognizing that smuggling poses a common challenge, the representatives agreed to work closely to prevent such activities. The talks underscored the importance of collaboration in addressing these issues, which not only affect trade but also the security of both nations.

Strengthening Bilateral Relations

Nepal is a priority partner for India under its โ€˜Neighbourhood Firstโ€™ policy, with India accounting for two-thirds of Nepalโ€™s exports. The bilateral talks on customs cooperation serve as a vital mechanism to facilitate legitimate trade while preventing illicit activities along the border. Both nations are keen on enhancing their economic ties through effective customs operations.

The meeting concluded on a positive note, with the Nepali delegation expressing gratitude to the Indian government, particularly the Central Board of Indirect Taxes and Customs (CBIC), for its support in capacity-building initiatives. Both sides emphasized the importance of collaborating on new technologies to improve trade efficiency and prevent smuggling, recognizing that such efforts would yield significant economic benefits for both countries.

 


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