Even though China has allowed drivers and Nepalis in the bordering areas to go up to Kerung through the Rasuwagadhi-Kerung border point, cross-border movement of humans will not be allowed through the Tatopani border point. “The Chinese side has said that the issue of cross-border movement of humans will be decided later,” the customs official said.
Given the restrictive conditions set by China for the resumption of the two-way traffic of goods, Nepali officials say it will not boost Nepal's export any time soon. Nepali importers have been importing mainly agricultural products such as apples, and garlic among others through this border point. According to the Department of Customs (DoC), Nepal imported goods worth Rs 8.62 billion through the Tatopani border point in the first nine months of the current fiscal year while no exports took place over the period. Meanwhile, goods worth Rs 19.51 billion were imported via the Rasuwagadhi border while exports worth Rs 215 million were exported along the border point. A significant number of handicraft products, particularly bamboo chairs, had been exported through the Rasuwagadhi border point, according to customs officials. During the first meeting of the Nepal-China Coordination Mechanism on Border Trade and Cooperation held in Lhasa in March, two sides reached an agreement to reopen the borders for two-way trade. These border points have not been fully operational since the start of the Covid-19 pandemic in early 2020. Initially, Nepal chose to close the border after the coronavirus outbreak in China, but the border points could not be fully operational due to the strict zero-Covid policy adopted by the northern neighbor. China on Dec 28 last year opened the Rasuwagadhi border point even for exports of Nepali goods though it was already reopened for one-way import of goods from China only. Tatopani-Khasa border point has remained closed for a long time, though it was occasionally reopened since the pandemic hit the world. Even after reopening the Rasuwagadhi border points for two-way traffic of goods, China has been imposing a quota system for the export and import of goods which has prevented the full realization of export and import through this border point. Currently, most of the trade with China takes place through the sea route via India. DoC statistics show Nepal’s imports from China stood at Rs 162.44 billion against the export of Rs 636.83 million as of the nine months of the current fiscal year. Since the Covid-19 pandemic began, Nepali exporters have been forced to use expensive air routes to export certain goods to China. The customs official said that Nepal’s export growth would also depend on whether Chinese authorities would continue to impose non-tariff barriers. “For example, the Chinese side has not yet allowed Nepal to export food items through Rasuwagadhi border points even though other types of goods have been allowed to export,” said an official at Rasuwagadhi Customs Office.
