Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal and India have reached an agreement to exchange advance information on goods exported between the two countries, a move aimed at strengthening customs control and reducing revenue leakage.
Under the agreement, export-related data will be shared electronically before the goods arrive in the importing country. The Memorandum of Understanding (MoU) was signed on Wednesday in New Delhi by Shyam Prasad Bhandari, Director General of Nepal’s Department of Customs, and Vivek Chaturvedi, Chairman of India’s Central Board of Indirect Taxes and Customs.
The MoU was prepared jointly by the two institutions, discussed with stakeholders, and approved by Nepal’s Cabinet, which authorized the Director General of Customs to sign the agreement.
Finance Minister Rameshwor Khanal said the implementation of the agreement would help improve customs facilitation and control revenue leakage. “Once the advance export information-sharing mechanism with India is implemented, it will strengthen customs facilitation and significantly improve revenue leakage control,” he said in a social media post.
India accounts for around 65 percent of Nepal’s international trade. In the first six months of the current fiscal year, Nepal imported goods worth Rs 532.45 billion from India, while exports to India stood at Rs 115.74 billion.
According to the MoU, the two sides will enhance customs control and trade facilitation through risk analysis, reduce time spent in customs procedures, and ensure secure international trade. The agreement also provides for the exchange of export data through electronic means within the limits set by law.
The MoU includes provisions for appointing contact officers, initially implementing the system on a pilot basis for selected goods before expanding it to all products, and resolving any disputes through diplomatic channels. The agreement may also be amended in the future as required.
Advance exchange of export data among major trading partners is an established international practice aimed at facilitating trade through improved risk management.
Director General Bhandari urged India to implement the agreement at the earliest, stating that it would further strengthen cooperation between the customs administrations of the two countries. He said advance data sharing would help identify high-risk consignments for closer monitoring while facilitating faster clearance for compliant traders.
According to a press release issued by Nepal’s Ministry of Finance, Indian customs authorities have expressed commitment to swiftly implementing the agreement.
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