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Bhairahawa emerges as top import route
As imports through Birgunj and Jaleshwor customs points continue to decline, other major border crossings have witnessed a significant rise in the trade activity in the first seven months of this fiscal year.As imports through Birgunj and Jaleshwor customs points continue to decline, other major border crossings have witnessed a significant rise in the trade activity in the first seven months of this fiscal year.
Bhairahawa emerged as the top import route. As of the seventh month, imports through Bhairahawa stood at Rs82.99 billion. It was followed by Biratnagar (61.68 billion) and TIA (Rs56.72 billion). The Sirsiya Dry Port stood fourth, while the Birgunj customs point was pushed to fifth position, according to Nepal Rastra Bank (NRB) statistics.
Imports through Birgunj slumped 74.5 percent as of mid-February, while those through Jaleshwor were down 20.3 percent.
Kailali saw the highest 132 percent growth in imports, followed by Krishnangar, Mechi and Bhairahwa. Imports through Biratnagar, Tribhuvan International Airport (TIA) and Nepalgunj also posted growth. Six of the major customs points saw decline in imports over the review period. These include the Tatopani customs point that has been non-operational since the April 25 earthquake.
“Goods imported based on the letters of credits opened during the blockade are just arriving. This might be a reason for the surge in imports through customs points other than Birgunj,” said Surya Sedai, information officer at the Department of Customs (DoC). “But it is also true that Biratnagar and Bhairahawa customs points are being used more in recent days instead of Birgunj.”
Traders also said they were not sure whether Birgunj would continue to remain open as Madhes-based parties are threatening to intensify protests. “The traders are not willing to take risk,” said Vijaya Kumar Sarawagi, chairperson of the trade committee at the Federation of Nepalese Chambers of Commerce and Industry. “The traders have lost confidence in the government. Even my firm has been importing most of the goods through the Dry Port.”
After remaining closed for more than four months, the Birgunj customs point resumed operations from the first week of February after India’s trade blockade was lifted.
Meanwhile, the government’s customs revenue collection has started rise. In the first 11 days of the month between mid-March and mid-April, the average daily collections have exceeded targets, according to DoC. However, Birgunj and a few other customs points have been struggling. “Although monthly targets are being met lately, recovering the revenue lost during the blockade period is a challenge,” said Sedai.
Customs Points Imports % Change
2014-15 2015-16
Birgunj Customs Office 186.08b 47.37b -74.5
Dry Port Customs Office 47.89b 49.95b 4.3
Bhairawa Customs Office 57.32b 82.99b 44.8
Biratnagar Customs Office 56.78b 61.68b 8.6
Tribhuwan Airport Customs Office 51.99b 56.72b 9.1
Nepalgunj Customs Office 13.15b 14.24b 8.3
Mechi Customs Office 12.06b 18.39b 52.5
Krishnagar Customs Office 3.39b 6.48b 91.1
Kailali Customs Office 3.27b 7.62b 132.6
Jaleshwar Customs Office 429.7m 342.6m -20.3
Tatopani Customs Office 8.87b 0.0 -100.0
Total 441.27b 345.82b -21.6
Source: Nepal Rastra Bank