By Krishana Prasain in The Kathmandu Post, May 02, 2023
The writer is a business reporter for The Kathmandu Post covering markets.
Chinese authorities have issued a new rule under which Nepali trucks are not allowed to cross the border at Tatopani and their cargo has to be transferred to Chinese trucks for onward transport to points in Tibet, officials said.
Nepal’s exports through the Tatopani border point resumed on Monday after eight years, and three goods-laden containers arrived at the border as per Nepali officials. Travellers are still not allowed to cross the border into China.
The Tatopani-Khasa trade route across the northern border was closed after the earthquake of April 2015 destroyed the infrastructure.
“The three containers unloaded bamboo stools, rattan chairs and mattresses at Miteri Bridge which were loaded on Chinese trucks,” said Dayananda KC, chief of the Tatopani Customs Office.
“We are not aware of the new rule at the border. Seven to eight containers, mostly loaded with apples and garlic, have been arriving at Tatopani from China,” KC said.
Before the border was closed in 2015, Nepali trucks were allowed to enter China across Miteri Bridge.
“As far as I know, resumption of passenger and vehicle movement will be discussed at the next government-level meeting,” KC said. “We are not aware of other developments.”
The Tatopani border point, some 115 km from Kathmandu, has historically been the main land route for trade with China. In the past, columns of porters and mule caravans carried merchandise over the Himalayan passes to various points in Tibet.
Arniko Highway linking Kathmandu and Kodari, which opened in the late 1960s, retraces the old trade route.
The Tatopani Customs Office used to collect more than Rs15 million in revenue daily before the border closed following the earthquake.
Hordes of Nepalis, mostly from Kathmandu Valley, used to throng Khasa for shopping which was once a major shopping destination. Hotels and restaurants flourished along the highway.
But the earthquake put an end to all that, and traders started abandoning the Tatopani market. Locals say the market town now wears a deserted look. The border re-opened briefly on May 29, 2019.
“Since China has not allowed Nepali containers to enter Khasa, this has increased the cost for traders,” KC said.
According to officials, around 13 goods-carrying containers used to cross the border to Khasa from Nepal, while 100-150 Chinese containers used to arrive daily in Nepal in the town’s heyday.
The imported goods consisted of apples, equipment for different projects, readymade garments and footwear.
Officials say that there is insufficient infrastructure at Khasa and China has been prioritising the Kerung border point.
“The Khasa market which used to be crowded once upon a time is now empty. There is no warehouse in Khasa either,” KC said.
After the hassles at the northern border check posts during Covid-19, traders started rerouting their shipments through southern border points to Kolkata port in India.
“We have to wait for a few days to see whether the number of containers increases or decreases,” KC said.
The Tatopani border was briefly reopened on April 8, 2020 to allow medicines and health equipment from China to pass.
On March 29, following a meeting of the Nepal-China border trade mechanism in Lhasa, the Rasuwagadhi-Kerung border point was opened on April 1 after 38 months.
“As the Chinese commercial counsellor and the ambassador are positive about increasing the trade volume, we are hopeful that there will be no more trade obstruction at the Tatopani point from China,” said Tribhuvan Dhar Tuladhar, president of the Nepal-China Chamber of Commerce and Industry.
Tuladhar, who spoke to the Post from Lhasa where he attended a trade fair, said such events would help boost exports to China.
Around 80 Nepali handicraft entrepreneurs and traders participated in the fair held from April 28 to May 4.
Tuladhar said that passenger and vehicle movement also needed to open as soon as possible.
There are two key trade routes—Rasuwagadhi-Kerung and Tatopani-Zhangmu (also known as Khasa)—between Nepal and China.
The Rasuwagadhi-Kerung customs point, located 190 km from Kathmandu, was used as an alternative route after the closure of the Tatopani-Khasa point in 2015, and it started to get more attention since then.
Traders say it costs Rs40,000 to transport goods from Tatopani to Kathmandu and Rs80,000 from Rasuwagadhi. The government needs to prioritise trade through Tatopani, they say.
According to the Department of Customs, Nepal exported goods worth Rs636.83 million in the first nine months of the current fiscal year ended mid-April compared to Rs622.86 million in the same period of the last fiscal year.
Imports from China to Nepal shrank by 23 percent to Rs162.44 billion in the first nine months of the current fiscal year. Nepal’s trade deficit with China amounted to Rs161.81 billion during the review period.
Imports rose by 13.19 percent year-on-year to Rs264.78 billion in the last fiscal year. Nepal’s exports to China declined by 20.4 percent year-on-year to Rs808.75 million in the last fiscal year.
Nepal’s trade deficit stood at Rs263.97 billion in the last fiscal year.
China provides customs-free access to 8,000 Nepali goods. “The Nepal government should request China to create a favourable policy on quarantine and customs clearance,” traders said.
“Nepal needs to build a lab to issue sanitary and phytosanitary certification, and also sign an agreement with China on mutual recognition of major exportable goods,” a trade expert said.
In early 2020, China closed the border point because of heavy snowfall and the Lhosar festival.
After the coronavirus outbreak was declared a pandemic by the World Health Organisation on March 11, 2020, countries were compelled to close their borders and impose lockdowns to prevent the disease from spreading.
Before the earthquake, Nepal exported 82 different types of goods including handicraft goods, medicinal herbs and noodles.
The border point in Hilsa in the north-western corner of Nepal has reopened to the delight of the residents of Humla who are allowed to travel to Taklakot in Tibet. On Monday, 18 Nepalis crossed the border and reached Taklakot.
Srinath Paudel, chief district officer of Humla, said that security personnel and customs officers of both China and Nepal jointly attended the opening of the gate at the Hilsa checkpoint and 18 people crossed the border.
https://kathmandupost.com/money/2023/05/01/nepali-trucks-being-stopped-at-tatopani-border-point
