Current Size: 100%
General Introduction to Border Trade
(source: Department of Commerce)
- North Eastern India shares land border with Bangladesh, Bhutan, China, Myanmar and Nepal and has agreements of overland trade with these countries through Land Custom Stations notified under Section 7 of the Customs Act, 1962. While for trading through LCSs situated on Bangladesh and Bhutan border, there is a Free Trade Agreement (SAFTA), Border Trade Agreement have been entered into with China and Myanmar.
- Border trade is different from trade through air, land or sea ports as trade through ports involves clearance through customs and has large volume. Border trade in contrast is “over-land trade” by way of “exchange of commodities” from a bi-laterally agreed list by people living along both sides of the international border.
For permitting locally produced commodities, to be traded as per prevailing customary practices on both sides of the India-Myanmar border, an agreement on border trade between India and Myanmar was signed on 21st January, 1994 and operationalised on 12th April, 1995. The Agreement envisages that the border trade will take place through Custom Posts at Moreh in Manipur and Zowkhathar in Mizoram, corresponding to Tamu and Rhi in Myanmar. 40 items are permitted for the border trade between India and Myanmar, with 5% duty. Presently, most of the border trade takes place only through the Moreh Post. The details of the border trade between India and Myanmar during the last 5 years are as under: (Rs. In crore)
Border Trade Year Export Import Total 2006-07 6.13 2.69 8.82 2007-08 4.94 1.35 6.29 2008-09 1.61 0.76 2.37 2009-10 24.5 8.32 32.82 2010-11 0.26 3.80 4.16
Border trade with Myanmar is quite limited and is generally averaging less than US $ 1 million per year.
- Border trade at Nathu La Pass, Sikkim with China is duty free.
- Details are in following sections.
(Rs. in lakhs)
(Source: Central Board of Excise & Customs, Department of Revenue)
|Sl. No.||Name of LCS||Value of Export||Value of Import||Net Revenue Collected||Top five commodities Traded||No of cargo vehicles|
|Office of Chief Commissioner, Central Excise & Customs, Shillong Zone|
|1||Sutarkandi||1954||3073||247||Cement, Misc food item and plastic items||Coal & quick lime||2182||9238|
|2||Karimganj Steamer & Ferry Station||822||67||12||Knitted & crocheted synthetic fabric||Ginger, Oranges, dry fish and other citrus fruits||--||--|
|3.||Mankachar||11||253||45||Cement, Vest, Cloak & Religious Book||Coal, Boulder Stone||374||598|
|4||Bosora||16768||Nil||2||Nil||Coal & Lime stone||-||130493|
|5||Bholaganj||22373||Nil||1||Nil||Lime Stone, Boulder stone & Quartz stone||-||116493|
|6||Dawki||9720||0.1||92||Food Items, Fire clay, & bricks||Coal, Lime stone, Raw hides, quartz stone, stone boulders seasonal fruits,& vegetables||17||45644|
|7||Shellabazar||829||Nil||13||Nil||Lime stone & boulder stone||-||-|
|9||Dalu||1890||296||49||Cement. Syn, Fabrics||Coal||509||10217|
|11||Mahendraganj||362||449||63||Cotton waste, synthetic fabric, food product||Coal. Crushed stone, Boulder stone. Dry fish, ginger||390||1523|
|12||Agartala||157||20352||1528||Stone, cement, fish, PVC pipes,& furniture||Other craft paper, vulcanized rubber tread, acmesip & mango classic||37978||48|
|13||Srimantapur||6||2488||391||Stone, Cement, Plastic sheet of polymers||Raw hides, woven fabrics & synthetic filament||--||--|
|14||Khowaighat||Nil||306||42||Stone & cement||Nil||--||--|
|15||Manu||2||459||85||Broken stone, Bricks & Cement||--||--|
|16||Muhurighat||Nil||1838||306||Stone, Bricks & Cement||Nil||-||-|
|17||Old Raghnabazar||5||68||12||Textile items, cotton vest & others||Citrus fruits||-||-|
|18||Moreh||26||380||36||Betel nut||Cumin seed||-||-|
|19||Hatisar||4916||39||Nil||Rectified spirit SKO, HSDO,MSLPG, Rice & Oranges||Plywood / Block Board & Bhutanese Liquor||250||4512|
Border Trade Committee(305.76 KB)
Indo-Myanmar Border Trade Items
(Total 40 items)
(DGFT Public Notice No. 289(PN)/92-97 dated 10th April, 1995)
(DGFT Public Notice No. 106 (RE-2008)/2004-2009 dated 07.11.2008)
|1.||Mustard/rape seeds||23.||Bicycle’s spare parts|
|2.||Pulses and beans||24.||Life saving drugs|
|6.||Onion||28.||Stainless steel utensils|
|8.||Spices (excluding nut-meg, mace, cloves and cassia)||30.||Agarbatti|
|10.||Minor forest produce (excluding teak)||32.||Cosmetics|
|11.||Betel nuts and leaves||33.||Leather footwear|
|12.||Food items for local consumptions||34.||Paints and varnishes|
|13.||Tobacco||35.||Sugar and salt|
|17.||Resin||39.||X-ray paper and Photo paper|
|18.||Coriander seeds||40.||Imitation jewellery|
|20.||Roasted sunflower seeds|
In addition, DGFT has clarified (vide Policy Circular No. 53 (RE –99)/1997-2002 Dated: 29.02.2000) that in addition to the provisions contained in the above mentioned Public Notices, the ‘normal trade’ in all other commodities between two countries through Land Customs Station at Moreh is also permitted subject to payment of custom duties as applicable on international trade with any other country of the world.
Simultaneous Conduct of Border Trade and MFN Trade (Normal Trade) at Indo-Myanmar Border, Moreh and Zawkhathar
- On the Indo-Myanmar border, border trade at concessional rate and with certain conditions is permissible for 40 bi-laterally agreed items. In addition, normal/MFN trade is also permitted.
- DGFT has clarified (vide Policy Circular No. 53 (RE–99)/1997-2002 Dated: 29.02.2000(5.5 KB)) that in addition to the provisions contained in the DGFT Public Notices Notification No. 9/95-Customs dated 6.3.1995(12.21 KB) (for 22 items for border trade on Indo-Myanmar border) & Notification No. 62/2010-Customs dated 12.5.2010(54.35 KB) (for additional 18 items), ‘normal trade’ in all other commodities between two countries through Land Customs Station at Moreh is also permitted subject to payment of custom duties as applicable on international trade with any other country of the world.
OM No.570/04/2003-LC dated 18.10.2010 of Shri M Satish Kumar Reddy, Director (ICD), Central Board of Excise & Customs, Department of Revenue on “Conversion of border trade into normal trade at Indo-Myanmar Border Trade Points.”
- Thus, while border trade is carried out at a concessional duty of 5% on 40 identified items, normal/MFN trade is also permitted in Moreh and Zawkhathar.
Limited Facilities for Entry to Myanmar by Local People Residing in Areas
Adjacent to The International Border
To facilitate limited movement of hill tribes residing along the Indo-Myanmar border, the Governments of India and Myanmar have permitted entry of such persons residing within 16 km of the international border with only permits but without visa with certain terms and conditions. Local nationals of both sides can stay in the other country for three days within 16 km on either side.
Trade Between India and China Through Nathu La Pass (SIKKIM)
- The traditional trade between India and China through Nathu La Pass in Sikkim commenced from 6.7.2006. Import and export of locally produced commodities by people living along both sides of Indo-China border as per prevailing customary practices are allowed.
Commodities allowed under border trade between India and China (at Nathu La Pass) notified vide Public Notice No. 5-ETC(PN)/92-97 dated 20.7.1992:
Items exempted from duty when imported into India from China through border trade:
1. Goat Skin 2. Sheep Skin 3. Goats 4. Horses 5. Sheep 6. Wool 7. Raw Silk 8. Yak Tail 9. Yak hair 10. China clay 11. Borax 12. Szaibelyite 13. Butter 14. Goat Cashmere 15. Common Salt
Items freely exportable to China in border trade:
1. Agricultural implements 16. Tobacco 2. Blankets 17. Snuff 3. Copper products 18. Cigarette 4. Clothes 19. Canned food 5. Textiles 20. Agro-chemical 6. Cycles 21. Local herbs 7. Coffee 22. Dyes 8. Tea 23. Spices 9. Barley 24. Watches 10. Rice 25. Shoes 11. Flour 26. Kerosene Oil 12. Dry fruit 27. Stationery 13. Dry and fresh vegetables 28. Utensils 14. Vegetables 29. Wheat 15. Gur and Misri
- Items exempted from duty when imported into India from China through border trade:
- Click here for Department of Commerce Public Notice No.20(RE-2006)/2004-2009 dated 13.6.2006.(49.13 KB)
There is no duty on these 40 items unlike on the Indo-Myanmar border where 5% duty is levied. Other conditions of trade are as follows:
- Border trade markets shall be open from 1st June to 30th September every year.
- Border trade markets will be open from Monday to Thursday every week-four days in a week and from morning 7:30 am to afternoon 3:30 pm Indian time and 10 am to 6 pm Chinese time would be the timings for the border trade.
- A permit fee of Rs.50 each will be levied for every vehicle entering Sikkim side from China. Similarly, a fee of 5 yuans (Rs. 5 equal to one Yuan) will be levied for every vehicle crossing over to the Chinese side upto the trade mart point at Renqinggang.