India and Nepal Unite to Combat Cross-Border Smuggling: Key Outcomes from Recent Talks

Strengthening Customs Cooperation Between India and Nepal

New Delhi: In a recent announcement, India and Nepal have committed to enhancing their efforts to combat the smuggling of gold, narcotics, counterfeit currency, and other items like e-cigarettes. This decision was made public by the Finance Ministry on Sunday.

The discussions took place during the 21st Director-General level meeting focused on Customs Cooperation, held in Kathmandu on April 10-11. The Indian delegation was led by Abhai Kumar Srivastav, the Director-General of the Directorate of Revenue Intelligence, while Mahesh Bhattarai, Director-General of the Department of Customs in Nepal, headed the Nepali team.

Both nations recognized the shared challenge of smuggling and expressed a desire for closer cooperation to prevent illicit activities across their borders through active intelligence sharing and engagement. They agreed on the necessity of measures to curb unauthorized trade and to collaborate effectively.

As part of India's 'Neighbourhood First' Policy, Nepal is considered a key partner. India represents two-thirds of Nepal's exports, making it the largest trading partner. The bilateral discussions on Customs cooperation serve as a vital framework for promoting legitimate trade while curbing illegal activities along the border.

The meeting also reviewed advancements on the Memorandum of Understanding regarding the Pre-arrival Exchange of Customs Data and the Electronic Origin Data Exchange System (EODES). Other topics included the finalization of the Customs Mutual Assistance Agreement (CMAA), the facilitation of transit cargo movement via the Electronic Cargo Tracking System (ECTS), and the automation and digitization of transit processes.

Both parties highlighted the importance of collaboration in enhancing the efficiency of trade and customs operations, which would yield significant economic advantages for both nations. They also agreed to explore new technologies to facilitate trade and prevent smuggling.

The meeting concluded positively, with the Nepali delegation expressing appreciation to the Indian government, particularly the Central Board of Indirect Taxes and Customs (CBIC), for their support in knowledge sharing and capacity-building initiatives for Nepalese Customs officials.