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बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
New Goods List can Increase Border Trade : China
Jul 25, 2016

China said that India should cancel the dated and restricted list of commodities it allows to be traded through the mountainous Nathu La pass in Sikkim, and new items should be added to increase the volume of trade through the land route. Atal Innovation Mission

  • According to China, India’s policies are not helping matters and fluctuating customs rules that are occasionally loose and constricted are pushing down trade through the route.
  • Trade through the route was started in 2006 and India allows export of 29 items and the import of 15 items with China.
  • In 2014, the volume of trade through the pass, closed between October and May because of climate, was around ₹28 crore.
  • The two countries should improve the facilitation of border trade. It’s not related to the governments only, but also to the customs.
  • Both countries also need to extend coverage of products.
  • The Indian list of products is still the same as it was in the 1950s. This is not suitable to today’s market environment. China hopes that Indian government will cancel the limit so that China can provide products meeting people’s demands and increase trading opportunities.
  • The Nathu La pass at 4,545 metres is the shortest land pass for trade between China and India, and also the highest altitude land pass for trade.
  • Besides security fears, India is of the view that if restriction-free trade is allowed, Chinese commodities will flood India’s northeastern states.
  • Chinese good are available in the region even now but if a free flow of trade is allowed, it will be flooding at a different scale.
  • For border trade between India and China, the CIF (Cost, Insurance and Freight) value per consignment is being increased from Rs 1,00,000 to Rs 2,00,000 in case of Nathula, while for Gunji and Namgaya Shipkila, the existing CIF value limit of Rs 25,000 is being enhanced to Rs 1,00,000.
  • China is a major trading partner of India, but India  has serious concerns over widening trade deficit between the two countries.
  • In 2015, Ddata released by the General Administration of Customs (GAC) revealed that bilateral trade was $71.63 billion.
  • For India, exports to China fell by over 18% last year and were pegged at $13.38 billion. China exported goods worth $58.25 billion in the same period.
  • China’s overall exports in 2015 were 14.14 trillion Yuan ($2.15 trillion), down 1.8% from the end of 2014, the first drop since 2010.

North Eastern India shares land border with Bangladesh, Bhutan, China, Myanmar and Nepal and has agreements of over land 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.


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