India, Bhutan sign new trade, transit agreement

India and Bhutan on Friday signed a new ten-year agreement on Trade, Commerce and Transit, which provides for four more entry and exit points and simplifies procedures for import and export between the two countries.

Commerce Minister Kamal Nath and Bhutanese Minister for Trade, Industry and Power Lyonpo Yeshey Zimba signed the new agreement, which replaces the Agreement on Trade and Commerce inked in 1995.

The protocol to the new agreement provides for four more entry and exit points for import and export.

The two land routes are Phulbari and Dawki, while the two sea and air routes are Mumbai and Chennai.

These routes are in addition to the existing 12 entry points, an official release said.

As per the new pact, import and export procedures have also been simplified. In place of the existing format for bill of entry for transit goods of the kingdom, the new protocol provides for a letter of guarantee from the Bhutan government against diversion of transit goods pertaining to that country.

The new protocol also provides for movement of goods from one part of Bhutan to another through Indian territory by giving a transit declaration in a prescribed form, the release said.