Trade Barriers of Nepal with India and Tibet- Inlets and Outlets of Nepal

Trade Barriers of Nepal with India and Tibet- Inlets and Outlets of Nepal

Trade barriers of Nepal: – A trade barrier is a government policy applied on the free international exchange of goods and services that are imposed by the government. Nepal is surrounded by two big countries i.e. India and China.Nepal, being a land-locked country, trade has always been a challenge. Apart from this, there are many trade barriers in Nepal that have made it even more challenging. Nepal has traveled a long way in the field of international trade.

Nepal, being a land locked country, itself is one of the barriers to the international trade. Since there is no any water transportation plus no rail transportation, the international trade for the Nepali traders has been much more challenging. Road transportation and air transportation are the only way for trading goods internationally, and road transport takes days to complete the process; while India and China are top nations for our international trade. However, we trade more with India than China. The import rate has always been more than the export rate which creates a huge deficit for Nepal in the international trade. We are already used to this deficit, the rate of imported goods has always been higher than the exported goods and the difference is very much high. We have always suffered a high deficit on the international trade so the government, as well as the responsible authorities, should take necessary measures and work on it.

Now let’s see what actually are the trade barriers of Nepal and how have they affected in the international trade. Generally, The top trade barriers in Nepal are:


We are all familiar with how high and unhealthy tax is added to the imported goods to Nepal from the foreign land, it is not any new topic for us. Tariff is the tax charged on the imported goods. It has been one of the top barriers of Nepal. A heavy rate of tax is imposed on the very good that arrives in Nepal. Along with the imports, high rate of tariff is charged during the export as well.More than 200% of tax is charged in the auto mobiles that are imported in Nepal. Now that’s one heavy tax charged on the imports.While importing the electronic devices, gadgets or the automobiles and other goods, there is always high tariff imposed on them which makes the goods much more expensive in Nepal. So it has been one of the challenges for international trade in Nepal.

Excessive documents

The international trade has always been harsh for the Nepali traders. A trader has to submit more than 10 documents for an international trade and they need the approval of all the documents which is a very long process.The documents like ‘custom declaration form’, ‘commercial invoice’, ‘airway bill’, ‘letter of authority to clear the consignment’ and much more.Comparatively, Nepal has to submit a number of documents for international trade than many other landlocked countries.Hence, it has been one of the challenges for traders.

Import duties.

Duty is basically an indirect charge exercised by the government on the goods. Whether importing the goods or exporting to the foreign land, customs duty is always charged.Similarly, additional customs charges are applied on the goods that are imported from the foreign land. This makes the goods more expensive. So these import duties can also be considered as one of the barriers that have hindered traders to freely trade in the international market.

Foreign investment  (direct) limitation.

There are certain limitations for the direct investment by foreigners in Nepal. They need the approval of the responsible authorities. There is also a restriction for foreigners to buy land in Nepal. Even the organizations need a permission to hire the foreign employee. Hence, the foreigners can not invest directly in the certain business and projects which can be considered as one of the trade barriers of Nepal, or more like a challenge to the traders.

These are some of the major trade barriers of Nepal which has been a major challenge, besides that, there are also some of the nontariff barriers that hurt the Nepali traders.

Nontariff barriers.

These barriers are not as major to the international trade as the tariff but it almost has the same effect.

What exactly is a nontariff barrier?

To understand, we can simply define the nontariff barriers as those barriers/ restrictions to a trade other than the tariff.

Also, there are certain import restrictions which can be considered as the non-tariff barriers. Along with there is a lack of trade facilitation that definitely is one of the challenges that hurt the traders during the international trade. Besides, there are many other nontarrif barriers like import quotas, subsidies, customs delays along with technical and administrative barriers which have been one of the challenges in international as well as regional trade.

These no tariff barriers are also applied on vehicles and refrigerators as all the vehicles that are imported in Nepal must qualify under European I standard and the imported refrigerators must be chloroform carbon free.  Also, the used goods are not allowed to import inside Nepal. These are some of the known- tariff trade barriers of Nepal but these barriers do not hurt as the other tariff barriers.

These are some of the major trade barriers of Nepal that have been a challenge for the Nepali traders to make an international trade. Besides these, there are many other barriers, policies, and restrictions that have hindered in the flow of exporting and importing goods and services internationally. These barriers could discourage the international trade in Nepal.

However, the international trade has been growing rapidly here in Nepal. The economic activities are rising quickly every year. We can expect it to rise much more if we can learn to tackle these barriers. The Government should also remodel the policies and should take necessary actions in this field which could motivate the traders for international trade.If so, we could expect the better economic condition of Nepal in coming years.

Here are major Trade barriers between Nepal and Indian. The name of trade barriers of Nepal includes inlets and outlets of Nepal. Let’s see these trader barriers of Nepal with India and Tibet.

As we all know that Nepal is officially the Federal Democratic Republic of Nepal. Nepal is a landlocked country in South Asia and the world’s youngest republic. Nepal is a country of beautiful with the area of 147,181 square kilometers (56,827 sq mi). 

Nepal is south Asian country situated between two largest countries of the world, China, and India. China is bordered with the northern part of Nepal and India is bordered on East, West, and South of Nepal. The total population of Nepal is of approximately 26.5 million. Kathmandu is the capital of Nepal and the country’s largest metropolitan city.

Opened 15 Trade barriers of Nepal with India or border name of India and Nepal

नेपाल र भारत बीचका १५ वटा व्यापारिक नाकाहरु

S.N. Name of trade barriers of Nepal Name of trade barriers
1 Banbasa वनवासा
2 Gauriphanta गौरीफन्टा
3 Tikoniya तिकोनिया
4 Nepalganjroad नेपालगंजरोड
5 Jarkha जरखा
6 Badni बडनी
7 Sunauli सुनौली
8 Raksaul रक्सौल
9 Birtamod बिर्तामोड
10 Marar माडर
11 Bhimnagar भीमनगर
12 Jogbani जोगवनी
13 Galgaliya गल्गलिया
14 Naxalbari नक्सालवारी
15 Sukhiya pokhari सुखिया पोखरी
Opened 6 Trade barriers of Nepal with Tibet or border name of China and Nepal

 तिब्बतका लागि खुल्ला गरिएका नाकाहरु

S.N. Trade barriers of Nepal Place नाका स्थान
1 Tinker Darchula टिंकर दार्चुला
2 Rasuwagadi Timure, Rasuwa रसुवागढी टिमुरे, रसुवा
3 Kimathanka Sankhuwasabha किमाथाङ्का संखुवासभा
4 Yari Humla यारी हुम्ला
5 Kodari Tattopani, Sindhupalchauk कोदारी तातोपानी, सिन्धुपाल्चोक
6 Olanchungola Taplejung ओलाङचुगोला ताप्लेजुङ

Trade Barriers of Nepal with India and Tibet- Inlets and Outlets of Nepal

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Jitendra Sahayogee

I am Jitendra Sahayogee, a writer of 12 Nepali literature books, film director of Maithili film & Nepali short movies, photographer, founder of the media house, designer of some websites and writer & editor of some blogs, has expert knowledge & experiences of Nepalese society, culture, tourist places, travels, business, literature, movies, festivals, celebrations.

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