Notification No. 36/2024 – Customs (N.T.), Dated 23-05-2025
1. Legislative Background
Notification No. 63/1994-Customs (N.T.) designates specific land customs stations (LCSs) and routes through which goods may legally enter or exit India by land or inland waterways. Over the years, the list has been expanded to accommodate new trade corridors with neighbouring countries.
2. Fresh Amendment – Notification No. 36/2025-Customs (N.T.)
| Item | Details |
|---|---|
| Issuing authority | Central Board of Indirect Taxes & Customs (CBIC) |
| Gazette date | 23 May 2025 |
| Core change | In the table to Notification 63/1994 (entry for Nepal, Sl. No. 6, item 9 – Raxaul), a new entry (d) is inserted in Column (4): “Railway line connecting Raxaul in India and Birganj in Nepal.” |
| Explanation | Traffic‐in‐transit via this rail route will be governed by the India–Nepal Treaty of Transit dated 1 June 2023. |
| Reference file | F. No. 550/7/202-LC |
3. Practical Significance
- Seamless Rail Corridor for Bilateral & Transit Trade – Birganj’s Inland Container Depot (ICD) and Raxaul Junction form the busiest Indo-Nepal freight gateway. Declaring the Raxaul–Birganj rail link as an authorised customs route formalises rail-borne cargo movements that were hitherto permitted only under ad-hoc approvals or by road.
- Operationalising the 2023 Treaty of Transit – The Treaty grants Nepal access to Indian ports and transit facilities. The new notification aligns Customs procedures with treaty commitments, ensuring uniform clearance and duty treatment for rail traffic.
- Trade Facilitation & Cost Efficiency – Rail transit cuts haulage costs and border-crossing time relative to road freight, benefitting exporters/importers on both sides and third-country cargo bound for—or routed through—Nepal.
- Decongestion of Road ICP at Raxaul–Birganj – Shifting heavy containers to rail is expected to ease truck congestion at the Integrated Check Post, improving border logistics and reducing emissions.
4. Compliance & Procedural Points for Stakeholders
| Stakeholder | Immediate Actions |
|---|---|
| Importers/Exporters & Forwarders | • Update shipping instructions to use the Raxaul–Birganj rail route where cost-effective. • Ensure rail invoices and Bill of Lading mention the new LCS code once issued by ICEGATE. |
| Railway & Terminal Operators | • Coordinate with Customs to integrate Electronic Data Interchange (EDI) for the new route. • Calibrate weighbridges and scanners to CBIC specifications. |
| Customs Brokers | • Map the new route in internal software; train staff on revised clearance procedures, including transit bond execution for Nepal-bound cargo. |
| Banks & Insurers | • Update documentary-credit clauses to reflect the new rail route as an accepted mode of carriage for Indo-Nepal consignments. |
5. Expected Benefits for India & Nepal
| Dimension | Impact |
|---|---|
| Trade Volume | Higher throughput at Birganj ICD; reduction in average dwell time for containers. |
| Regional Connectivity | Complements BIMSTEC and BBIN multimodal corridors, positioning Raxaul–Birganj as a strategic South Asian logistics hub. |
| Economic Development | Boosts cross-border supply chains (cement, fertiliser, FMCG, steel) and supports Nepal’s re-export ambitions via Indian ports. |
6. Next Steps & Timeline
- ICEGATE & Customs Systems Update – CBIC to assign route/LCS codes within 30 days of publication.
- Stakeholder Workshops – Customs Commissionerates at Patna and Kolkata to conduct capacity-building sessions for rail operators and trade bodies by July 2025.
- Performance Review – First joint India–Nepal review of rail transit operations slated for December 2025 under the Treaty of Transit monitoring mechanism.
7. Key Takeaway
By notifying the Raxaul–Birganj railway line as an authorised land route, CBIC has unlocked a faster, treaty-compliant channel for bilateral and transit goods traffic, reinforcing India’s commitment to seamless regional connectivity and trade facilitation with Nepal.
