Om Prakash Khanal

BIRGUNJ: Almost half of the country's total imports come through the two customs offices at the Birgunj border. Based on import value, half of the imports are made through Birgunj customs.

Due to the Madhesh movement and the blockade of Birgunj, which was a central trading point about a decade ago, foreign trade shifted to other checkpoints. However, recent data show that business at Birgunj has returned to its former levels.

According to the Department of Customs, 47.08 percent of total imports were made through the ICP and dry port customs of Birgunj in the last fiscal year 2023/24. The ICP Customs alone contributed 34.30 percent.

The Birgunj border was blocked due to the anti-constitution movement and blockade that lasted from August 2015 to January of 2016 after the promulgation of the constitution. During that time, protestors blocked the former Birgunj customs checkpoint, diverting most trade to Bhairahawa customs. In that year, imports from Birgunj Customs dropped to 23.50 percent. After the embargo was lifted in January, import and export activities resumed. The total import volume of both Birgunj and dry port customs was reduced to 35 percent of the total import at that time.

Located in the center of the country, with a short distance from seaports and easy transportation, local entrepreneurs and traders were concerned about the decline in trade through the port, which is situated in the largest industrial corridor.

Data from the Department of Customs indicates that in the following years, imports and exports through the Birgunj border have gradually improved. In the fiscal year 2022/23, imports from ICP and dry port customs accounted for 47.37 percent of the total imports. The import data for Bhairahawa customs increased rapidly during the blockade. In 2015/16, about 25 percent of total imports came through Bhairahawa. Some trade from Birgunj also shifted towards Biratnagar customs during that period.

Dilaram Panthi, Chief Customs Administrator of Birgunj Customs, notes that vehicle imports that had shifted to Bhairahawa Customs have not yet returned to Birgunj. Mainly fuel, vehicles, and industrial raw materials are imported through the Birgunj checkpoint. Regarding export business, around 20 percent of goods are exported from ICP and Biratnagar Customs. Products like readymade clothes, juice, processed oil, yarn, vegetables, jute, and tea are exported from Birgunj and Biratnagar.

Entrepreneur Arvindra Amatya says it is natural for businesses to gravitate towards a comfortable environment. Amatya added, "To leverage Birgunj's uniqueness in business, emphasis should be placed on facilitating trade and promoting a business-friendly environment. Geographical and physical infrastructure can be improved with appropriate policies and trends."