Kathmandu, Jan. 22: Nepal and India have signed a memorandum of understanding (MoU) to exchange pre-arrival information on exported goods, a move aimed at facilitating trade and strengthening customs control between the two countries.
The MoU – Cooperation in the Exchange of Pre-Arrival Information of Export of Goods for Trade Facilitation and Customs Control – was signed at a formal ceremony in New Delhi on Wednesday. Nepal’s Director General of the Department of Customs, Shyam Prasad Bhandari, and India’s Chairperson of the Central Board of Indirect Taxes and Customs (CBIC), Vivek Chaturvedi, signed the agreement on behalf of their respective sides.
The exchange of advance export data between major trading partners is an established international practice intended to support risk management, reduce clearance time and ensure secure cross-border trade, the Ministry of Finance (MoF) of Nepal said in a statement.
As India is Nepal’s principal trading partner, the agreement seeks to institutionalise the advance sharing of export-related data between the two customs administrations, it said.
The MoU was prepared jointly by Nepal’s Department of Customs and India’s CBIC. Prior to finalisation, consultations were held with relevant stakeholders. The agreement was subsequently approved by the Cabinet of the Government of Nepal, which authorised the Director General of the Department of Customs to sign the document.
According to the provisions of the MoU, both sides will use advance information for risk analysis to enhance customs control and trade facilitation. The agreement aims to reduce the time required for customs procedures while promoting safe and secure international trade.
“Data will be exchanged electronically within the limits prescribed by national laws, and the information shared will be used strictly in accordance with the terms of the MoU,” read the statement.
The agreement also provides for the designation of contact officers to support implementation. Initially, the arrangement will be applied on a pilot basis to mutually agreed categories of goods, with a provision to extend it to all goods at a later stage.
According to the MoF, any disputes arising during implementation will be resolved through mutual consultation via diplomatic channels, and the MoU may be amended by mutual consent.
Speaking at the signing ceremony, Bhandari emphasised the need for early implementation of the agreement. He said the MoU would help strengthen cooperation between the two customs administrations and enable more effective monitoring of high-risk consignments, while facilitating faster clearance for compliant traders.
Likewise, Chaturvedi welcomed the signing of the MoU and expressed India’s commitment to its prompt implementation.
