Question 1999

Which of the following statements about the 6th India–Bhutan Joint Group of Customs (JGC) Meeting (April 2025) is/are correct? 1) Bhutan's top trade partner is India, with trade primarily via maritime ports in West Bengal and Assam. 2) The meeting discussed automation, cross-border data exchange, and electronic cargo tracking. 3) India proposed capacity-building in Risk Management Systems and AEO certification for Bhutan.

Answer

2 and 3 only

Why?

The correct answer is 2 and 3 only . Key Points Statement 1: Bhutan's top trade partner is India, with trade primarily via maritime ports in West Bengal and Assam. This statement is incorrect . While India is Bhutan's primary trade partner, the trade between the two countries is largely conducted through land borders rather than maritime ports. Bhutan is a landlocked country with no access to maritime ports, and trade with India is facilitated through designated land border points such as Jaigaon (West Bengal) and others near Assam. Statement 2: The meeting discussed automation, cross-border data exchange, and electronic cargo tracking. This statement is correct . The 6th India–Bhutan Joint Group of Customs (JGC) Meeting focused on enhancing trade facilitation measures. Key discussions included the adoption of automation systems, improving cross-border data exchange for smoother customs operations, and implementing electronic cargo tracking systems to ensure transparency and efficiency in trade. Statement 3: India proposed capacity-building in Risk Management Systems and AEO certification for Bhutan. This statement is correct . During the meeting, India emphasized the importance of capacity-building initiatives for Bhutan's customs officials, particularly in areas such as Risk Management Systems (RMS) and Authorized Economic Operator (AEO) certification. These measures are aimed at strengthening Bhutan's customs framework and aligning it with international standards. Additional Information India–Bhutan Joint Group of Customs (JGC): The JGC serves as a bilateral platform to discuss and resolve issues related to customs and trade facilitation between India and Bhutan. It aims to enhance cooperation in areas such as customs clearance, tax policies, and trade regulations to promote seamless cross-border trade. The meetings are held periodically to ensure that both countries remain aligned in their trade policies and practices. Risk Management Systems (RMS): RMS is a mechanism implemented in customs operations to identify and prioritize high-risk consignments for inspection while facilitating the clearance of low-risk consignments. It reduces transaction costs, ensures compliance, and improves the overall efficiency of customs processes. India's proposal to assist Bhutan in implementing RMS reflects its commitment to strengthening Bhutan's trade infrastructure. Authorized Economic Operator (AEO) Certification: AEO certification is an international standard that recognizes businesses as reliable and compliant trade partners. It provides benefits such as faster customs clearance, reduced inspections, and priority treatment during customs procedures. India's suggestion to assist Bhutan in adopting AEO certification aligns with the broader goal of facilitating trade and promoting economic collaboration. Trade between India and Bhutan: India accounts for a significant portion of Bhutan's imports and exports, making it Bhutan's largest trading partner. The trade primarily includes goods such as electricity, minerals, agricultural produce, and manufactured items. The two nations also collaborate extensively in areas such as hydropower, infrastructure development, and capacity-building initiatives. Electronic Cargo Tracking Systems: These systems use technology such as GPS and RFID to monitor the movement of cargo in real-time. Electronic tracking enhances transparency, reduces transit times, and ensures the safety and security of goods during transportation. The adoption of such systems reflects the increasing emphasis on digitalization in trade and customs operations.