While India has allowed uninterrupted movement of imports into Nepal even during lockdown, China is reopening its borders as it emerges from the pandemic
After being shut for over two months, the Tatopani Customs Office along Nepal-China border resumed operations in April with the import of first lot of healthcare materials from China. A consignment of 7,500 units of N-95 masks and 500 bottles of sanitizer arrived through the customs point into Nepal. Tatopani and Rasuwagadhi are the main land routes for trade with China. Nepal closed both the border points on January 29, following the outbreak of coronavirus in China. Navaraj Dhakal, Joint Secretary, Ministry of Commerce and Supplies informed that Rasuwagadhi route will also be opened soon after finalizing the modality of procedures of Customs clearance, quarantine and preventive measures.
The sudden closure of border had left more than 300 trucks loaded with Nepal-bound goods stranded in Kerung – a Chinese town near Rasuwagadhi border. The Tatopani border had resumed operation in May after a gap of nearly four years due to the 2015 earthquakes. However, only a few consignments made through the border point, which was one of the largest customs points of the country. Goods worth only Rs 5 billion entered the country between mid-July to mid-March of the current fiscal year compared to Rs 27 billion from Rasuwagadhi border.
China along with Europe and the US are major markets for Nepali handicrafts. Monthly handicraft export is worth around Rs1 million to Rs 1.5 million. On annual basis exports of handicrafts can reach about Rs6 billion a year. But due to the pandemic exports have completely collapsed. Further handicraft production has also been affected due to a shortage of raw materials, which mostly come from China and other virus-hit countries.
Foreign investments have taken a major beating due to the pandemic, as most of them were from China. During the first six months of the current fiscal year, FDI pledges increased by 315.3 per cent to Rs190.36 billion and most of them were from China. But during the past two weeks not a single foreign investment application has come in.
Indo-Nepal trade
Even as lockdown continues in India, considering the hardship traders face during this period India has agreed to allow movement of Nepal-bound goods through its customs without requiring original documents. The Department of Commerce in India has issued a circular to its agencies permitting Nepali traders to import goods by submitting copies of original documents. As per the existing practice, traders must submit original documents, except in particular cases where electronic copies were considered valid under the privilege of electronic cargo tracking system and the transshipment facilities, for import of goods.
Containers loaded with imported goods entered from India into Nepal without any disruption even during lockdown. However, controlled movement inside Nepal has affected movement of the imported goods. As a result, ICD Birgunj is now overstocked with the imported goods as traders and industrialists are not in a position to take delivery due to the lockdown. Mainly industrial raw materials have remained dumped at the dry port, while it has also created congestion for fresh imports.
A total of 200 consignments have entered Nepal via the Birgunj dry port during the past two weeks of lockdown. While 20 trucks were loaded with fresh vegetables and fruits, 70 tankers were carrying petroleum products and 53 bullets ferrying cooking gas. Likewise, 17 trucks were loaded with finished goods and remaining were carrying industrial raw materials, among others.
