The Bhutanese Leading the way.
The government affirms that it continues to engage with the relevant authorities in India to resolve the Suvidha fee issue, which it says has increased the cost of transporting Bhutanese exports to Bangladesh and affected the competitiveness of Bhutanese exporters.
Responding to a question during the 30th Meet-the-Press on 7th August whether there had been any breakthrough in discussions on the Suvidha tax imposed on Bhutanese vehicles in West Bengal, the Minister for Foreign Affairs and External Trade, Lyonpo DN Dhungyel, said the issue remains a matter of concern for the Royal Government of Bhutan.
Lyonpo Dhungyel said the Suvidha charges can reach as high as INR 10,000 per truck for certain goods.
He cited the example of a typical six-wheeler truck transporting cement, which is required to pay a Suvidha fee of INR 1,020. Given the limited quantity that such trucks can carry, he said the fee can exceed the actual profit margin earned by exporters.
He added that since the issue emerged, the ministry has been engaging the relevant authorities through the Royal Bhutanese Consulate General (RBCG) in Kolkata, in close coordination with the Bhutan Export Association (BEA) and other stakeholders.
The objective, according to the Foreign Minister, is to secure a more equitable metric-tonne-based fee structure that reflects the quantity of goods transported and takes into account the narrow profit margins of Bhutanese exporters.
Lyonpo said these engagements have resulted in several positive developments.
The allocation of Suvidha slots for Bhutanese trucks has increased from 150 to 250, while the concerned authorities have agreed in principle to establish a dedicated Suvidha portal for Bhutanese exporters with simplified payment arrangements.
He added that Bhutan’s proposal to revise the Suvidha fee structure from a per-truck basis to a metric-tonne basis continues to be under consideration.
As an interim measure, the RBCG also secured a temporary exemption from Suvidha registration and payment for Bhutanese trucks transiting through Fulbari while discussions on a long-term solution were underway.
Lyonpo said the Consulate has also carried out field assessments, engaged the concerned authorities in West Bengal, and facilitated dialogue among stakeholders to address operational challenges and ensure the smooth movement of Bhutanese trucks.
In addition, the ministry has supported the BEA as the single agency to operate the Suvidha portal in Bhutan and facilitated the opening of an Indian bank account to simplify the payment of Suvidha charges.
According to Lyonpo Dhungyel, the RBCG has most recently continued discussions with the concerned authorities in West Bengal to convey the concerns of Bhutanese exporters and seek a practical and mutually acceptable solution.
However, Lyonpo said two key issues must still be resolved before a final agreement can be reached.
The first relates to finalising a consolidated proposal on the metric-tonne-based fee structure and integration of the proposed portal.
He explained that this has been delayed because domestic stakeholders have yet to reach a consensus on sharing customs data through the electronic Customs Management System (eCMS) with the Indian authorities.
Without such data integration, the technical setup of the dedicated portal cannot be completed.
Secondly, Lyonpo encouraged Bhutanese exporters to ensure that the transport of goods fully complies with the regulations of the Government of India to facilitate smooth and uninterrupted transit.
He said Bhutan has been engaging the relevant authorities through established diplomatic channels and will continue to work constructively with all concerned stakeholders to facilitate an early and mutually beneficial solution.
