India and Bhutan Forge Ahead on Customs and Trade Facilitation at the 5th Joint Group of Customs Meeting in Leh
The fifth edition of the Joint Group of Customs (JGC) meeting between India and Bhutan convened on May 6th and 7th, 2024, in Leh, Ladakh, marking a significant stride in bilateral customs cooperation. Co-chaired by Surjit Bhujabal, Special Secretary and Member (Customs) of the Central Board of Indirect Taxes and Customs, Government of India, and Sonam Jamtsho, Director General of the Department of Revenue and Customs, Ministry of Finance, Royal Government of Bhutan, the meeting focused on enhancing cooperation and streamlining trade procedures between the two nations.
The assembly addressed a comprehensive array of issues pivotal for bolstering the bilateral relationship. Key topics included the inauguration of new Land Customs Stations, notification of additional trade routes, infrastructure development, and the automation and digitisation of transit processes. Other significant discussions revolved around the prevention of smuggling, enhanced cross-border management, the pre-arrival exchange of customs data, and bilateral agreements fostering customs cooperation and facilitating the movement of transit cargo under an electronic cargo system.
Bhutan extended its gratitude towards the Government of India and specifically to the Central Board of Indirect Taxes and Customs for their unwavering support in capacity building. This includes training and skill development offered through various workshops, seminars, and training programmes such as the IRS programme for Bhutanese customs administration. Furthermore, Bhutan acknowledged India’s role in stimulating cross-border trade and economic activities through multiple bilateral agreements.
These annual meetings are instrumental in refining customs procedures, promoting cooperation, and facilitating cross-border trade, aligning with global best practices. They play an essential role in boosting connectivity and developing trade infrastructure, thus ensuring smooth customs clearance at land borders. Currently, there are 10 Land Customs Stations along the India-Bhutan border in West Bengal and Assam.
India remains Bhutan’s principal trade ally, serving both as a major import source and export destination. Since 2014, trade between the two countries has surged, growing from $484 million in 2014-15 to $1,615 million in 2022-23, constituting about 80% of Bhutan's total trade. Enhancing this connectivity aligns with India’s ‘Neighbourhood First’ and ‘Act East’ Policy, which are critical given Bhutan’s land-locked geography.
Concluding on a positive note, both nations committed to exploring new areas of complementarities to maximize mutual benefits, addressing the aspirations of the youth, and adapting to rapid technological and social innovations. They also agreed to evaluate new developments that could further facilitate customs and trade cooperation, aimed at mutual prosperity.