Birgunj dominance as Nepal’s most vibrant customs point in trade flows

KATHMANDU: Nepal’s international trade remains heavily centered around a few strategic customs points with Birgunj custom office firmly retaining its position as the country’s most vibrant and critical gateway for both imports and exports.

Latest customs data for mid-December of fiscal year 2025/26 underline how Nepal’s import-export dynamics continue to be shaped by geography, logistics efficiency, and industrial concentration rather than diversification of trade routes.

According to the figures of the Department of Custom, Birgunj Customs handled imports worth Rs 35,922 crore during the review period, far exceeding all other customs offices. This single checkpoint accounts for a dominant share of Nepal’s total imports, reflecting its role as the primary trade corridor with India, Nepal’s largest trading partner.

The Birgunj–Raxaul route remains the backbone of Nepal’s supply chain for petroleum products, industrial raw materials, machinery, vehicles, steel, and consumer goods.

Bhairahawa Customs emerged as the second-largest import hub, recording imports worth NPR 12,101.52 crore, followed by Biratnagar at NPR 9,138.59 crore. Tribhuvan International Airport (TIA), despite being Nepal’s only international airport handling cargo at scale, stood fourth with imports of NPR 8,340.26 crore, while Nepalgunj rounded out the top five with NPR 3,071.02 crore.

The data highlight a structural reality of Nepal’s economy: imports are still overwhelmingly land-based and India-centric. Birgunj’s dominance is not only due to volume but also efficiency, supported by integrated check posts, rail connectivity, customs infrastructure, and proximity to major industrial corridors in northern India. Other land ports, while important, continue to play secondary roles due to lower capacity and limited hinterland connectivity.

On the export front, the concentration remains pronounced but shows early signs of diversification. Birgunj again led the list, handling exports worth NPR 3,996.85 crore, reaffirming its role as Nepal’s primary outbound trade channel.

Biratnagar followed closely with exports valued at NPR 3,449.02 crore, reflecting the strength of eastern Nepal’s industrial base, particularly in processed food, textiles, jute products, and manufactured goods.

Tribhuvan International Airport ranked third in exports with NPR 1,535.61 crore, underscoring the importance of air cargo for high-value, low-volume goods such as handicrafts, garments, herbal products, and niche agricultural exports. Bhairahawa Customs recorded exports of NPR 1,202.78 crore, while Mechi Customs entered the top five with NPR 1,071.40 crore, indicating growing cross-border trade activity in eastern Nepal.

Trade experts note that while Birgunj remains unchallenged in overall trade value, the relative rise of Biratnagar, Bhairahawa, and Mechi signals a gradual shift toward more regionally balanced export activity. Eastern customs points are increasingly linked to export-oriented industries, while Bhairahawa is benefiting from improved road connectivity and its proximity to western Nepal’s agricultural belt.

However, the gap between imports and exports remains stark across all customs offices, reinforcing Nepal’s chronic trade deficit. Even at Birgunj, exports amount to barely one-ninth of import values. This imbalance reflects Nepal’s limited industrial base, heavy reliance on imported fuel and capital goods, and slow progress in scaling up value-added exports.

The data also highlight the differing roles of land and air customs. While land ports dominate in volume, air cargo plays a critical role in sustaining export diversification. Trade officials argue that improving cold-chain facilities, cargo handling capacity, and customs clearance efficiency at TIA could significantly boost export competitiveness, particularly for time-sensitive goods.

Policy analysts stress that Nepal’s trade dynamics are changing only incrementally. Infrastructure upgrades, such as additional integrated check posts, expansion of dry ports, and better road and rail connectivity, are essential if trade is to be spread beyond Birgunj. At the same time, targeted industrial policies are needed to strengthen export clusters around Biratnagar, Bhairahawa, and emerging eastern border points.

For now, the mid-December 2025/26 data make one conclusion clear: Birgunj remains the nerve center of Nepal’s international trade, while other customs offices are growing in importance but have yet to challenge its dominance.

Whether Nepal can translate this evolving customs landscape into a more balanced and resilient trade structure will depend on sustained reforms in logistics, industrialization, and export promotion.