KATHMANDU, June 6: Nepal has started a diplomatic process to request India not to operationalize the Integrated Check Post (ICP) at Raxual on the Indian side as this could ‘complicate’ trade between the two countries.
“We wrote a letter on Sunday requesting India to wait for completion of the ICP on the Nepal side,” according to Nepali officials. The Customs Department, Commerce Ministry and the Supplies Ministry have discussed the implications of operationalization of the ICP on the Indian side and its impact on Nepal’s trade. “Even the Office of the Prime Minister has been looking into the issue,” the officials added.
The Raxual-Birgunj customs is the key customs point for Nepal, accounting for over 60 percent of Nepal’s international trade.
ICP is aimed at providing all the services required for export-import trade, including customs, immigration, quarantine and banking, through an integrated one window on either side of the border.
However, the operationalization of the ICP on the Indian side, which is some 13 km from the current customs office, is going to hurt Nepal’s trade, according to traders. They also have expressed serious concern over India starting operations at its new ICP at Raxual.
Claiming that trading through the new ICP may hit trade through the Raxaul-Birgunj customs point until such time as the ICP on the Nepal side is completed, they said they want India to wait for the completion. The Indian authorities already inaugurated the ICP on their side on Friday.
Some 30 percent work on the ICP on the Nepal side at Sirsiya is yet to be completed. India has taken responsibility for building the ICPs on both sides. The Land Port Authority of India is responsible for operating the Indian ICP.
Birgunj customs, which was blocked for almost five months during the Tarai-Madhes protests, has not only created supply shortages in the country but also encouraged the black economy.
