• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Shipping lines currently bringing Bhutanese imports from third countries but not calling at Kolkata port would often dump the consignments either at Chennai or Mumbai.

Kolkata , Oct. 5

THE Union Government is understood to have agreed to declare air and sea ports of Chennai and Mumbai as the new entry and exit points for Bhutanese importers and exporters to facilitate their trade with third countries, according to informed sources.

At present, Bhutanese exports and imports are routed through Kolkata by and large. Chennai and Mumbai air and sea ports will provide the Bhutanese traders with alternative routes and they can exercise the options of using these routes if they so desire.

Chennai and Mumbai, though located far away from the Himalayan Kingdom, are well connected by rail and road, thus providing a good transport network. The need for alternative routes has arisen because the shipping lines currently bringing Bhutanese imports from third countries but not calling at Kolkata port would often dump the consignments either at Chennai or Mumbai. In the absence of a formal agreement between the two countries declaring these two ports as official entry and exit points, the consignments would be held up there for long, often attracting duties. The new arrangement will spare the Bhutanese traders of these problems, it is said.

Limited traffic: Kolkata port handles limited quantities of third country traffic on Bhutan account. Between April and August this year, the volume of traffic was 2,209 tonnes, all imports, of which 2,106 tonnes were vegetable oil. There have been no exports so far.

In 2004-05, the total volume of traffic handled by the port on Bhutan account was 1,663 tonnes, again all imports, including 1,150 tonnes of vegetable oil and the balance 513 tonnes were general merchandise. The corresponding figures for 2003-04 were 3,010 tonnes including 2,976 tonnes of steel items and 34 tonnes of general merchandise.

New land routes: The updated agreement on trade and transit between India and Bhutan has also identified two new land routes, Phulbari and Dawki, as entry and exit points. Phulbari is close to the existing Burimari route and has better storage and warehousing facilities. The Dawki route is through Meghalaya.

At present, exports from the eastern part of Bhutan to Bangladesh have to first come to Hashimara in Jalpaiguri district in the northern part of West Bengal, after traversing a distance of 400 km, before joining the Burimari route. With the opening up of the Dawki route, the distance, it is estimated, will be reduced by almost half.

Streamlining customs norms: The Union Government is also considering streamlining the customs procedures for Bhutanese exports and imports. Under the new arrangement, the Bhutanese goods being transported through India by road will not be subjected to unnecessary checking if there is a letter of guarantee from the Royal Government of Bhutan. This is intended to dispense with the delayed and cumbersome procedures in clearing goods imported for Bhutan. However, there will be checking if the consignments are contraband in nature.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
AI may hedge on 10% of ATF from January 1

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line