Plans to integrate all the customs offices of Birgunj with the ICP have yet to materialise

Traders are up in arms against the Indian government's decision to ban the export and import of goods from the Land Customs Station (LCS) of Raxaul on the border and direct them through the Integrated Check Point (ICP) starting Sunday, or October 16. This, according to the traders, means rising cost for the trade and industry sector. The Office of the Principal Commissioner of Customs, Patna recently served a notice asking all exporters and importers to file their shipping bills or bills of entry only with ICP Raxaul from October 16, and stop all related activities with LCS Raxaul. The locals are said to have been demanding a ban on the entry of Nepal-bound dusty cargo through Raxaul given the heavy pollution it causes in the bordering region. The traders, however, prefer the route through the old customs as it is shorter and, thus, cost-effective. But there are other reasons why the ICP is not popular among the traders.

The Birgunj ICP on the Nepal side was inaugurated in April 2018, but even after four years, the authorities have failed to divert all cargo coming through the Raxaul-Birgunj route to the ICP in Sirsiya of Parsa for lack of proper infrastructure. Although most of the foreign trade has shifted to the ICP from the Birgunj Customs, the entry of bulk cargo bringing clinker, gypsum, coal, salt and iron as well as some petroleum products is still taking place through the old customs point. The Birgunj-Raxaul corridor accounts for the transit of around two thirds of Nepal's total trade. For the import and export of goods, Birgunj currently has the ICP, Birgunj Dry Port and Inarwa (Birgunj) Customs. Although vehicles with passengers and cargo can come and go through the ICP office, the problem lies with holding the cargo as the holding yard has been used to its full capacity. The ICP lacks a dedicated unloading area and holding yards for dusty cargo. Moreover, it is not connected to the railways.

This, according to the traders, will push up the cost of importing goods and affect supply and competitiveness of Nepali industries. The October 16 deadline definitely spells trouble unless the government can convince the Indian side to allow some more time to come up with the required infrastructure.

Things would not have come to such a pass if the government had bothered to allocate adequate budget for expanding the ICP's infrastructure in time.

There were plans to integrate all the customs offices of Birgunj with the ICP, but this has yet to materialise.

Whatever has happened to the government's decision to integrate the Dry Port with the ICP or converting the Birgunj Customs into a passenger transit point? Nepal currently has two ICPs - at Birgunj and Biratnagar – while two more are coming up at Nepalgunj and Bhairahawa. We need a vision and an action plan on the part of the government to enhance the infrastructure there so as to smoothen the cross-border movement of cargo trucks. The government says it is aware of the notice issued by the Patna authority, and has formed a working committee to study the situation. The stakeholders await an action plan that is workable and one that will speed up the construction of the required infrastructure at the Birgunj ICP sooner than later.

Campaign rules

In a bid to hold the upcoming general elections in a free, fair and impartial manner, the Election Commission's Code of Conduct has barred the elected representatives at the local levels from campaigning for or against any candidate or party within their municipalities.

The elections for the House of Representatives and provincial assembly are scheduled for November 20. If they want to campaign in other places other than their own local level, they can do so without using the government's resources, such as vehicles and security personnel. Legal action will be taken against those elected officials for violating the code of conduct.

On a positive note, the EC has allowed the political parties and their candidates to advertise their political manifestos or commitments through the private media. The EC has already published the final list of the candidates. They are allowed to launch their election campaigns only 17 days before the election date.

The EC's permission to disseminate political parties' agenda through the private mass media will help them reach out to the people while the private media, which were hit hard since COVID-19, will be able to generate revenue from the ads they receive from the political parties.

A version of this article appears in the print on October 14, 2022 of The Himalayan Times.