India and Bhutan Strengthen Customs Cooperation: Highlights from the 6th Joint Group of Customs Meeting 2025

Introduction

In a significant step towards fostering regional trade and securing cross-border commerce, India and Bhutan reaffirmed their enduring customs partnership at the 6th Joint Group of Customs (JGC) Meeting, held from 24–25 April 2025 in Thimphu, Bhutan.

This pivotal meeting not only reinforced their commitment to customs cooperation and trade facilitation but also introduced groundbreaking initiatives aimed at digitising customs processes, upgrading border infrastructure, and enhancing security measures for seamless bilateral trade.

As Bhutan’s primary trading partner, India plays a vital role in Bhutan’s economic ecosystem, making the modernization and harmonization of customs procedures crucial for both nations. Through enhanced collaboration, digitization, and mutual assistance, India and Bhutan are setting new benchmarks for border management and trade facilitation in South Asia.

Table of Contents

• Introduction
• Why the 6th JGC Meeting Matters
• Key Highlights from the 6th JGC Meeting
  • High-Level Participation
  • Agenda Topics and Key Agreements
    • Transit Process Digitisation
    • Implementation of the Electronic Cargo Tracking System (ECTS)
    • Strengthening Coordinated Border Management (CBM)
    • Pre-Arrival Customs Data Exchange
    • Enhancing the Customs Mutual Assistance Agreement (CMAA)
• India-Bhutan Trade Relations Overview
• Major Outcomes and Future Plans
• Significance for Border Security and Trade Facilitation
• FAQs
• Conclusion: Towards a Seamless Trade Future

Why the 6th JGC Meeting Matters

The 6th Joint Group of Customs Meeting served as a critical platform for India and Bhutan to deepen their collaboration on border management, trade facilitation, and security enhancement.

Convened in the capital city of Thimphu, the two-day conference showcased a shared vision of embracing digital transformation and coordinated border practices to strengthen bilateral trade.

Given that nearly 80% of Bhutan’s trade is conducted with India, establishing more efficient, transparent, and secure customs procedures remains a top priority for both countries.

By focusing on digitisation, real-time cargo monitoring, and proactive data exchange, India and Bhutan are working to eliminate bottlenecks and enhance the security and efficiency of cross-border transactions.

Key Highlights from the 6th JGC Meeting

High-Level Participation

The meeting witnessed high-ranking delegates from both sides, underscoring the strategic importance of the discussions:

• India was represented by Mr. Surjit Bhujabal, senior official from the Central Board of Indirect Taxes and Customs (CBIC).
• Bhutan was represented by Mr. Sonam Jamtsho, senior official from the Department of Revenue and Customs.

The co-chairing by such eminent figures reaffirms the seriousness with which both governments are approaching customs reform and trade facilitation.

Agenda Topics and Key Agreements

Transit Process Digitisation

One of the key focus areas discussed was the digitisation of the transit process.

Both India and Bhutan emphasized the urgent need to automate transit documentation and cargo movement procedures.

Digitisation will:

• Reduce procedural delays at border points.
• Enable faster movement of goods.
• Lower transaction costs for traders.
• Improve transparency in cross-border operations.

This shift toward digital systems aligns with global trends in smart border management and reflects both countries’ commitment to modernizing trade operations.

Implementation of the Electronic Cargo Tracking System (ECTS)

The introduction of the Electronic Cargo Tracking System (ECTS) was another significant milestone discussed at the meeting.

Key benefits include:

• Real-time tracking of transit cargo across borders.
• Enhanced transparency and accountability in cargo movement.
• Reduced cargo tampering and better security measures during transit.

Both sides agreed that deploying ECTS across major border checkpoints would revolutionize customs operations and drastically reduce the risks associated with cross-border trading.

Strengthening Coordinated Border Management (CBM)

Recognizing the importance of seamless inter-agency coordination, the two countries committed to strengthening Coordinated Border Management (CBM).

Benefits of CBM include:

• Faster clearance of goods at checkpoints.
• Shared intelligence to combat illegal trade activities.
• Optimized use of resources among border agencies.
• Improved traveler and trader experiences.

India and Bhutan also discussed joint training programs to equip border officers with the latest techniques in risk management and advanced inspections.

Pre-Arrival Customs Data Exchange

To further enhance the efficiency of border clearance processes, the exchange of pre-arrival customs data was endorsed.

The strategy involves:

• Sharing detailed cargo and shipment information before goods reach the border.
• Facilitating better risk assessments and inspection planning.
• Expediting the release of goods upon arrival.

Pre-arrival data sharing reduces congestion, speeds up trade flows, and boosts the competitiveness of cross-border commerce.

Enhancing the Customs Mutual Assistance Agreement (CMAA)

Both nations agreed to expand the scope of the Customs Mutual Assistance Agreement (CMAA).

Focus areas include:

• Strengthening cooperation to investigate customs offenses.
• Sharing best practices and intelligence on illegal trade patterns.
• Supporting capacity-building efforts for customs officers.

A stronger CMAA will ensure that India and Bhutan can jointly combat customs fraud, smuggling, and other illicit activities.

India-Bhutan Trade Relations Overview

India and Bhutan share a robust economic partnership, with India being Bhutan’s largest trading partner.

Key facts:

• Around 80% of Bhutan’s trade occurs with India.
• There are 10 Land Customs Stations between India and Bhutan (six in West Bengal, four in Assam).
• India is critical for Bhutan’s access to international markets due to its landlocked geography.

Trade relations are based not only on commerce but also on deep-rooted diplomatic, cultural, and developmental ties.

External Source: Explore India-Bhutan Relations – MEA, India

Major Outcomes and Future Plans

The 6th JGC Meeting concluded on a highly optimistic note, with several key outcomes:

• Reaffirmation of a shared vision for digitised and secure customs operations.
• Agreement to operationalize ECTS across key routes.
• Commitment to enhancing CMAA for mutual protection against illicit trade.
• Plans to hold regular future meetings and technical working groups.

Future action points include collaborative pilot projects on paperless trade and potential integration of AI technologies in customs processes.

Significance for Border Security and Trade Facilitation

Enhanced customs cooperation and digitization efforts will lead to:

• More efficient and reliable trade routes.
• Boosted economic growth for Bhutan and better market access.
• Stronger border security against threats like smuggling and trafficking.
• Streamlined customs operations aligned with global best practices.

By adopting a coordinated and technology-driven approach, India and Bhutan are setting new standards for cross-border trade management in South Asia.

FAQs

1. Why is the 6th Joint Group of Customs Meeting significant?
   It strengthens bilateral cooperation on customs procedures, boosts trade facilitation, and enhances border security between India and Bhutan.
2. What is the Electronic Cargo Tracking System (ECTS)?
   ECTS allows real-time monitoring of cargo movement across borders, improving transparency, accountability, and cargo security.
3. How will digitisation benefit India-Bhutan trade?
   Digitisation will reduce delays, lower costs, and improve efficiency, making cross-border trade smoother and more competitive.
4. What does the Customs Mutual Assistance Agreement (CMAA) involve?
   CMAA fosters operational and legal cooperation to combat customs fraud, investigate illicit trade, and promote compliance.
5. How many land customs stations connect India and Bhutan?
   There are 10 land customs stations—six in West Bengal and four in Assam—serving as critical trade links between the two countries.

Conclusion: Towards a Seamless Trade Future

The 6th Joint Group of Customs Meeting between India and Bhutan is a landmark event that advances their shared goal of secure, digitized, and efficient cross-border trade.

Through the initiatives discussed—from ECTS to enhanced CMAA—both countries are paving the way for smoother trade flows, stronger border management, and deeper economic integration.

As India and Bhutan continue working hand-in-hand, their commitment to innovation, transparency, and cooperation promises not only a stronger bilateral partnership but also a significant contribution to regional prosperity and global trade standards.

Key Takeaways Table

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