Nepal, India Sign MoU for Prior Exchange of Trade Information

Nepal and India on Wednesday signed a Memorandum of Understanding (MoU) for the prior exchange of information on exports and imports, aiming to enhance trade facilitation and customs control.

Shyam Prasad Bhandari, Director General of Nepal’s Department of Customs, and Vivek Chaturvedi, Chairman of India’s Central Board of Indirect Taxes and Customs (CBIC) signed the MoU at a formal event in New Delhi.

The agreement aligns with international practices that allow major trading partners to exchange export-related data in advance to improve efficiency and strengthen risk management in cross-border trade.

According to officials, the draft MoU was jointly prepared by Nepal’s Department of Customs and India’s CBIC to facilitate advance sharing of export data. Following consultations with relevant stakeholders, the government of Nepal approved the agreement and authorised the Director General of the Department of Customs to sign it.

The MoU aims to strengthen customs control and facilitate trade through improved risk analysis, helping reduce the time required for customs clearance while ensuring secure international trade. It also provides for the digital exchange of export data in accordance with national laws and specifies that the shared information will be used strictly within the framework of the agreement.

The agreement designates contact officers from both sides for implementation and adopts a phased approach, initially covering selected goods on a pilot basis.

Tanka Prasad Pandey, spokesperson for the Ministry of Finance, said the MoU includes provisions to resolve any disputes arising during implementation through diplomatic channels through mutual consent. It also allows amendments through mutual agreement between the two governments.

Speaking at the signing ceremony, Director General Bhandari emphasised the need for timely implementation, stating that the initiative would further strengthen bilateral trade relations. CBIC Chairman Chaturvedi said India was pleased to sign the MoU and reaffirmed the Indian government’s commitment to its prompt and effective implementation. -- RSS