{"id":4037,"date":"2025-05-26T16:49:31","date_gmt":"2025-05-26T11:19:31","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=4037"},"modified":"2025-05-26T16:49:31","modified_gmt":"2025-05-26T11:19:31","slug":"cbic-notifies-raxaul-birganj-rail-route-for-indo-nepal-trade","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/cbic-notifies-raxaul-birganj-rail-route-for-indo-nepal-trade","title":{"rendered":"CBIC Notifies Raxaul\u2013Birganj Rail Route for Indo-Nepal Trade"},"content":{"rendered":"

Notification No. 36\/2024 \u2013 Customs (N.T.)<\/a>, Dated 23-05-2025<\/p>\n

1. Legislative Background<\/h2>\n

Notification No. 63\/1994-Customs (N.T.) designates specific land customs stations (LCSs) and routes<\/strong> 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.<\/p>\n

2. Fresh Amendment \u2013 Notification No. 36\/2025-Customs (N.T.)<\/h2>\n
\n
\n\n\n\n\n\n\n\n\n\n
Item<\/th>\nDetails<\/th>\n<\/tr>\n<\/thead>\n
Issuing authority<\/strong><\/td>\nCentral Board of Indirect Taxes & Customs (CBIC)<\/td>\n<\/tr>\n
Gazette date<\/strong><\/td>\n23 May 2025<\/strong><\/td>\n<\/tr>\n
Core change<\/strong><\/td>\nIn the table to Notification 63\/1994 (entry for Nepal, Sl. No. 6, item 9 \u2013 Raxaul<\/em>), a new entry (d)<\/strong> is inserted in Column (4):
\n\u201cRailway line connecting Raxaul in India and Birganj in Nepal<\/em>.\u201d<\/td>\n<\/tr>\n
Explanation<\/strong><\/td>\nTraffic\u2010in\u2010transit via this rail route will be governed by the India\u2013Nepal Treaty of Transit dated 1 June 2023<\/strong>.<\/td>\n<\/tr>\n
Reference file<\/strong><\/td>\nF. No. 550\/7\/202-LC<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\n
<\/div>\n<\/div>\n<\/div>\n<\/div>\n

3. Practical Significance<\/h2>\n
    \n
  1. Seamless Rail Corridor for Bilateral & Transit Trade \u2013 <\/strong>Birganj\u2019s Inland Container Depot (ICD) and Raxaul Junction form the busiest Indo-Nepal freight gateway. Declaring the Raxaul\u2013Birganj rail link<\/strong> as an authorised customs route formalises rail-borne cargo movements that were hitherto permitted only under ad-hoc approvals or by road.<\/li>\n
  2. Operationalising the 2023 Treaty of Transit \u2013 <\/strong>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<\/strong> for rail traffic.<\/li>\n
  3. Trade Facilitation & Cost Efficiency \u2013 <\/strong>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\u2014or routed through\u2014Nepal.<\/li>\n
  4. Decongestion of Road ICP at Raxaul\u2013Birganj \u2013 <\/strong>Shifting heavy containers to rail is expected to ease truck congestion at the Integrated Check Post, improving border logistics and reducing emissions.<\/li>\n<\/ol>\n

    4. Compliance & Procedural Points for Stakeholders<\/h2>\n
    \n
    \n\n\n\n\n\n\n\n\n
    Stakeholder<\/th>\nImmediate Actions<\/th>\n<\/tr>\n<\/thead>\n
    Importers\/Exporters & Forwarders<\/strong><\/td>\n\u2022 Update shipping instructions to use the Raxaul\u2013Birganj rail route where cost-effective.
    \n\u2022 Ensure rail invoices and Bill of Lading mention the new LCS code once issued by ICEGATE.<\/td>\n<\/tr>\n
    Railway & Terminal Operators<\/strong><\/td>\n\u2022 Coordinate with Customs to integrate Electronic Data Interchange (EDI) for the new route.
    \n\u2022 Calibrate weighbridges and scanners to CBIC specifications.<\/td>\n<\/tr>\n
    Customs Brokers<\/strong><\/td>\n\u2022 Map the new route in internal software; train staff on revised clearance procedures, including transit bond execution for Nepal-bound cargo.<\/td>\n<\/tr>\n
    Banks & Insurers<\/strong><\/td>\n\u2022 Update documentary-credit clauses to reflect the new rail route as an accepted mode of carriage for Indo-Nepal consignments.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
    \n
    <\/div>\n<\/div>\n<\/div>\n<\/div>\n

    5. Expected Benefits for India & Nepal<\/h2>\n
    \n
    \n\n\n\n\n\n\n\n
    Dimension<\/th>\nImpact<\/th>\n<\/tr>\n<\/thead>\n
    Trade Volume<\/strong><\/td>\nHigher throughput at Birganj ICD; reduction in average dwell time for containers.<\/td>\n<\/tr>\n
    Regional Connectivity<\/strong><\/td>\nComplements BIMSTEC and BBIN multimodal corridors, positioning Raxaul\u2013Birganj as a strategic South Asian logistics hub.<\/td>\n<\/tr>\n
    Economic Development<\/strong><\/td>\nBoosts cross-border supply chains (cement, fertiliser, FMCG, steel) and supports Nepal\u2019s re-export ambitions via Indian ports.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
    \n
    <\/div>\n<\/div>\n<\/div>\n<\/div>\n

    6. Next Steps & Timeline<\/h2>\n
      \n
    1. ICEGATE & Customs Systems Update<\/strong> \u2013<\/strong> CBIC to assign route\/LCS codes within 30 days<\/strong> of publication.<\/li>\n
    2. Stakeholder Workshops<\/strong> \u2013<\/strong> Customs Commissionerates at Patna and Kolkata to conduct capacity-building sessions for rail operators and trade bodies by July 2025<\/strong>.<\/li>\n
    3. Performance Review<\/strong> \u2013<\/strong> First joint India\u2013Nepal review of rail transit operations slated for December 2025<\/strong> under the Treaty of Transit monitoring mechanism.<\/li>\n<\/ol>\n

      7. Key Takeaway<\/h2>\n

      By notifying the Raxaul\u2013Birganj railway line<\/strong> as an authorised land route, CBIC has unlocked a faster, treaty-compliant channel for bilateral and transit goods traffic, reinforcing India\u2019s commitment to seamless regional connectivity and trade facilitation with Nepal.<\/p>\n","protected":false},"excerpt":{"rendered":"

      Notification No. 36\/2024 \u2013 Customs (N.T.), Dated 23-05-2025 1. Legislative Background Notification…<\/p>\n","protected":false},"author":8,"featured_media":4043,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,178,47],"tags":[],"class_list":["post-4037","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customs","category-customs-news","category-customs-statutory-scope"],"yoast_head":"\nCBIC Notifies Raxaul\u2013Birganj Rail Route for Indo-Nepal Trade<\/title>\n<meta name=\"description\" content=\"Raxaul\u2013Birganj rail route customs notification: CBIC\u2019s 36\/2025 makes the rail link an official LCS under Notif. 63\/1994, streamlining treaty-compliant, cost-efficient Indo-Nepal cargo transit.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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