Indo-China trade has failed to gain momentum

SHIMLA: Indo-China trade through Shikpkila pass of Kinnaur district has failed to gain momentum over the years despite the fact that border trade through this point was resumed following the signing of protocol for extension of border trade to Shipkila pass in September 1993.

While last year around 19 traders had crossed over to China, this year only one trader has applied following the direction of union government to obtain import export code. According to sources, this is for the first time when traders have been directed to apply for the code that would help them to import or export goods without paying custom duty and without having any ceiling on the products.

Right now individual product worth Rs 25000 only could be imported or exported. "So far only one trader from Tashigang village has applied we hope in the coming days others too would apply for the code," added the officials. According to sources, last year around 18-19 traders had crossed over to China with their goods while from China side not even a single trader entered this side. "Indian traders are allowed to go upto Shipki village of China only from there it is Chinese villagers who travelled inside China to 200-250 km to bring the goods listed by Indian traders," sources said.

In past trade through Shipki La has remained very low with import turnover remaining around Rs 10 lakh while export turnover remaining between Rs 7 to 8 lakh. With the introduction of code system officials expect business across the border to rise as goods of large value would be exchanged. This year union government has added five more items in the import list while seven new items have been added in the export list. Kinnaur district industries corporation, general manager, Sarchander Negi said that once code is obtained, traders could import or export goods without any upper limit and without paying any custom duty.

"This would make the trade more lucrative and boost the trade prospect in future as more items have been added in the import and export list," he added. Trade between India and China is conducted through Namgya Shipki-la village in Pooh sub-division of Kinnaur along the Namgya-Shipkila-Shipki Jijubu land route. Traders mostly from border villages of Kinnaur district carry their stocks on mules to China.

While Indian traders carry items like agricultural implements, blankets, copper products, clothes, textiles, cycles, coffee, tea, barley, rice, flour, dry fruit, dry and fresh vegetables, vegetable oil, gur and tobacco, they return with items like jackets, shoes, crockery, flasks, goats and Chumurthi horses. Box: Trade across the border is allowed with prior permission from June 1 to November 30.

As initial three months are consumed in completing the formalities actual trade takes places in the months of September, October and November. Traders had to get border trade pass which is issued only after Special Investigation Bureau scrutinizes the applications.