Nepal and India have decident to make a landmark amendment in their Treaty of Transit to allow Nepal to export goods of third country origin through India.
An amendment to the "export procedure" in the Memorandum to the Protocol to the Treaty of Transit of 1999 will facilitate the transit of goods of third country origin exported from Nepal, said a statement issued today by the Indian Embassy.
A Letter of Exchange formalising the decision has been finalised by the two sides.
"This restriction has now been removed and now goods of non-Nepalese origin would be allowed transit through India for export to third countries," the statement said. "This provision would facilitate Nepal´s genuine third country export which may be required for re-export of goods imported in to Nepal for display in fairs and exhibitions."
The amendment will also facilitate re-export of third country origin capital goods from Nepal to third countries for repair and return and also re-export of rejected goods from Nepal.
The proposal for making these amendments in the Treaty of Transit has been finalised by India and shared through the Indian Embassy in Kathmandu with the Nepal government.