Both sides emphasised on collaborating in areas to enhance efficiency and effectiveness of trade and Customs operations across the border to deliver significant economic benefits to both countries

The 21^st Director-General Level Talks on Customs Cooperation was held between India and Nepal in Kathmandu, Nepal on 10^th-11^th April, 2025. Both the sides discussed a host of bilateral issues for enhancing Customs Cooperation between the two countries. The Indian delegation was led by Mr. Abhai Kumar Srivastav, Director-General, Directorate of Revenue Intelligence, Central Board of Indirect Taxes & Customs, Department of Revenue, Ministry of Finance, Government of India and Nepali delegation was led by Mr. Mahesh Bhattarai, Director-General, Department of Customs, Ministry of Finance, Government of Nepal.

The agenda items of the meeting covered measures to check smuggling;  review progress on MoU on Pre-arrival Exchange of Customs Data and Electronic Origin Data Exchange System (EODES); finalization of Customs Mutual Assistance Agreement (CMAA); facilitation of movement of transit cargo under Electronic Cargo Tracking System (ECTS); automation and digitisation of transit processes; upgradation of border infrastructure; knowledge sharing program and support for capacity development, among others.

Issues related to trans-border criminal activities and smuggling of gold; narcotics; Fake Currency Notes (FCN), prohibited/restricted category of goods, such as e-Cigarettes, e-lighters, certain varieties of garlic and other cases of commercial frauds, including sensitive goods were also deliberated.

It was acknowledged that smuggling of goods has been a common challenge and both sideslooked forward towards cooperation in preventing smuggling across the borders with active engagement and exchange of intelligence. Both the nations agreed to take necessary measures to control the un-authorised trade and work in tandem.

Nepal is a priority partner of India under its ‘Neighbourhood First’ Policy. India accounts for two-thirds of Nepal’s exports and is the largest trade partner of Nepal. The bilateral talks on Customs cooperation are an important mechanism to facilitate genuine trade as well as to prevent illicit trade along the border in an interconnected world.

The meeting concluded on an optimistic note. The Nepali side expressed their gratitude to the Government of India, particularly the Central Board of Indirect Taxes and Customs (CBIC) for knowledge sharing and capacity enhancement programmes for Nepal Customs officials at different levels.

Both sides emphasised on collaborating in areas that can enhance the efficiency and effectiveness of trade and Customs operations across the border that deliver significant economic benefits to both the countries. It was mutually agreed to consider new technologies for facilitating trade and preventing smuggling of goods.

Customs cooperation agreed to enhance cross-border trade facilitation and strengthen measures to prevent smuggling through data exchange and technology adoption. Talks concentrated on joint measures to prevent smuggling and facilitate legitimate trade by advancing intelligence exchange, enforcement coordination, and technological solutions. Parties reviewed progress on pre-arrival data exchange, an Electronic Origin Data Exchange System, Electronic Cargo Tracking System for transit cargo, and the proposed Customs Mutual Assistance Agreement, while emphasising automation, border infrastructure upgrades, capacity building and knowledge sharing as enablers of effective cross-border customs cooperation.