India and Bhutan Strengthen Customs Cooperation at 6th Joint Group Meeting in Thimphu

India continues to be Bhutan’s most important trading partner, accounting for approximately 80% of Bhutan’s total trade volume, both in terms of imports and exports.

The 6th Joint Group of Customs (JGC) Meeting between India and Bhutan was successfully held from April 24 to 25, 2025, in Thimphu, Bhutan. This pivotal gathering was co-chaired by Mr. Surjit Bhujabal, Special Secretary and Member (Customs) of the Central Board of Indirect Taxes and Customs (CBIC), Government of India, and Mr. Sonam Jamtsho, Director General of the Department of Revenue and Customs, Ministry of Finance, Royal Government of Bhutan.

Key Highlights of the Meeting

Reinforcing Bilateral Trade Ties

India continues to be Bhutan’s most important trading partner, accounting for approximately 80% of Bhutan’s total trade volume, both in terms of imports and exports. Given Bhutan’s status as a landlocked country, seamless trade through land borders is critical. There are currently 10 designated Land Customs Stations (LCS) along the India-Bhutan border, spread across the Indian states of West Bengal (six LCS) and Assam (four LCS).

The Joint Group of Customs meetings, organized annually, aim to streamline customs procedures, promote mutual cooperation, and align cross-border trade facilitation with international best practices. This collaborative spirit has been a cornerstone of India-Bhutan relations, ensuring that trade channels remain efficient and secure.

Focus Areas of Discussion

The 6th JGC meeting addressed a comprehensive set of topics to further bolster trade and transit:

• Automation and Digitisation of Transit Processes: Both sides agreed on the importance of leveraging technology to simplify transit formalities, reduce paperwork, and enhance transparency in cross-border operations.

• Coordinated Border Management (CBM): Discussions centered on the need for integrated border management systems to enhance cooperation between border agencies, ensuring smoother and faster cargo movement.

• Pre-arrival Exchange of Customs Data: The two nations emphasized the significance of data sharing before cargo arrival to facilitate risk management and expedite clearances.

• Customs Mutual Assistance Agreement (CMAA): Strengthening the legal framework for customs cooperation, the CMAA was highlighted as a tool for exchanging information and combating customs offenses.

• Electronic Cargo Tracking System (ECTS): Both sides reviewed the progress and discussed further integration of the ECTS to track and monitor the movement of goods effectively across borders.

Capacity Building and Future Roadmap

The Bhutanese delegation expressed sincere gratitude to CBIC for its continuous support, especially highlighting the successful capacity-building workshop titled ‘Advancing India-Bhutan Trade and Economic Partnership’ held from July 29 to August 1, 2024. This workshop significantly contributed to streamlining Bhutan’s export processes and resolving several trade-related challenges.

Looking ahead, India proposed to extend targeted capacity-building programs in vital areas such as:

• Risk Management System (RMS)

• Authorised Economic Operator (AEO) Program

• Food Safety Standards compliance

• Need-based capacity development initiatives for Bhutanese importers and exporters

Such initiatives aim to strengthen Bhutan’s institutional capabilities, making cross-border trade even more efficient and secure.

Shared Commitment to the Future

Both sides reaffirmed their unwavering commitment to enhancing customs cooperation, facilitating trade, and ensuring the secure management of their shared border. The meeting concluded on a highly optimistic note, with both delegations emphasizing the importance of sustained dialogue, continued technical collaboration, and innovative approaches to addressing emerging challenges in international trade.

The 6th JGC meeting between India and Bhutan thus marks another significant milestone in the enduring partnership between the two neighboring countries, setting a positive tone for future engagements.