Nepal, Bhutan, Bangladesh and Maldives agree to exchange pre-arrival goods information to speed customs clearance, strengthen risk assessment and improve trade facilitation, supply-chain security and regional economic cooperation.
To promote trade facilitation and enhance customs cooperation in South Asia, Nepal, Bhutan, Bangladesh and Maldives have agreed to share advance information on goods in transit across their borders. It is expected to facilitate the assessment of goods before arrival and enhance the management of cross-border trade by customs.
A Memorandum of Intent for Cooperation on the exchange of pre-arrival information for trade facilitation and customs control was signed by the four countries. The following agreement was signed at the 14th Subgroup Meeting of the South Asia Subregional Economic Cooperation (SASEC) programme in the Maldives on 19 August.
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On behalf of Nepal, the Director General of the Department of Customs, Yamlal Bhusal, signed the agreement. In the framework, the customs administrations of the four countries met to create a mechanism to exchange relevant information on shipments prior to their customs clearance.
The system aims to enable customs officials to inspect the information on consignments before they reach their destination, to detect potential risks. This can help agencies to concentrate their inspection and enforcement efforts on high-risk shipments and allow lower-risk shipments to be cleared from customs faster.
The initiative will also achieve better customs clearance and minimise delays in cross-border shipments. Participating countries will be able to improve access to advanced cargo information, thereby strengthening coordination between customs administrations and increasing supply chain visibility and security.
The agreement forms part of a broader initiative for the facilitation of trade and connectivity in the region under SASEC. The programme aims to unite South Asian economies for more cooperation on regional economic integration, trade and transport.
The new deal is being implemented to further facilitate customs coordination between Nepal and neighbouring and regional economies. A similar mechanism has been agreed to between Nepal and India in the past to share pre-arrival information on goods for better risk assessment and to promote genuine trade.
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The new four-country mechanism is a chance to further develop interoperability between customs systems and advance cross-border trade processes more predictably. It could also help to lower logistics costs and optimise regional logistics.
The exchange of timely customs information is gaining significance as trade volumes and connectivity between South Asian countries continue to increase. The Nepal-Bhutan-Bangladesh-Maldives agreement thus marks the first steps towards even more coordinated, scientifically managed customs processes and towards easier regional trade.