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India agrees to expedite works related to trade transit points

January 22, 2014
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Bilateral-meeting-on-trade-and-transitIndia has agreed to expedite works to increase the number of trade transit points along the Bhutan-India border.  This was one of the major outcomes of the bilateral meeting on trade and transit between the two countries, which was held yesterday in Thimphu.

The Indian delegation assured to validate and expedite works on several entry and exit points for trade between Bhutan and India.

An alternate route to the Industrial estate in Pasakha, Phuentsholing from the highway at Bolan Chopati, near Manglabari to Alay village in Pasakha is one of them. The Indian delegation told the meeting that the budget has been allocated but said the West Bengal government is yet to complete land acquisition works.

The Indian officials said they are also looking at the Bhutanese government’s request on having a second gate established in Phuentsholing that will directly lead to the dry port near the STCBL office.

On the road from Bokajuli in Daranga, Assam to Matanga industrial estate in Samdrup Jongkhar, the Indian officials said they are currently resolving land acquisition issues.

[media id=662 width=320 height=260]

The day-long Bhutan-India Bilateral Meeting on Trade and Transit also saw discussions on the seasonal check points. Of the seven seasonal checkpoints requested by the Bhutanese government, three have already been notified. The discussions revolved around the four remaining proposed seasonal check points. The Indian officials said they will look at it as there is a need to put infrastructures in place depending on the seasonal trade.

The Indian delegates also agreed to amend the trade agreement, whereby Bhutanese importing vehicles will have an option of getting their cars themselves. Currently, the vehicles imported from India are transported in containers.

India has also agreed to relax the quantitative restriction on the import of edible oil. They agreed to increase the import quantity to 13,000 metric tons from 2,400 metric tons. India places quantitative restriction on essential commodities whenever there is a shortage in India.

The Indian side also pointed out several issues that they want the Bhutanese government to review. Import restriction on vehicles, furniture and alcohol was one of them, which the Indian officials said has hit the manufacturers in India.

The meeting also proposed for an international best practice to facilitate the excise duty refund, which is a success in Nepal. However, nothing has been agreed on this as of now. 

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