Nathu La: The much hyped border trade between India and China through the famed Silk Route is caught in a bureaucratic red tape two weeks after the Nathu La Pass reopened.
Indian customs officials denied traders from Sikkim permission to take goods to the Chinese trade mart at Renqinggang, about 10 km from Nathu La.
"There are problems already with Indian customs officials not allowing our traders to do business on technical grounds saying we do not have the Import-Export Code (IEC)," President of the Sikkim Chamber of Commerce, S K Sarda said.
India and China reopened the Silk Route on July 6 for border trade along the 14,400 feet Nathu La Pass, 52 km east of Sikkim's capital Gangtok.
"IEC code is granted to traders who posses PAN cards under the Central Direct Tax laws, but with Sikkim yet to introduce the laws nobody here has PAN cards and hence the technical problems," Sarda said.
Indian traders blamed New Delhi for not sorting out such technical problems before.
"The hype over the border trade has already fizzled out with traders not prepared to spend money on transportation and come back with their goods unable to take to China for selling," a local trader, R Lepcha said.
The last two weeks of trading on either side of the border saw just a few dozen traders doing business.
"The volume of trade is very small now as only a few traders from either side of the border are doing business in items like rice, vegetables and spices," Director of Industries and Commerce, Saman Prasad Subba said.
"There were eight traders from China who came to our side of the border with consumable items on Thursday,” Subba added.
Under an agreement reached between the two countries, 44 items were agreed for trading. India will be able to export 29 items ranging from textiles to tea, barley, rice and herbs. Chinese traders will be able to trade in 15 items including horses, goats, sheep, yak hair, goatskin, wool and raw silk.
"We are unable to allow Chinese traders bring in items like yak skin and raw silk as that requires quality certification. We do not have facilities right now to grade the items before allowing them to trade," Subba said.
Sikkim Chief Minister Pawan Kumar Chamling said he was in touch with officials in the Federal Commerce Ministry to get certain technical formalities waived to facilitate free trade.
"We hope to see the IEC waived very soon and also expect the two countries to increase the number of items for trading," the Chief Minister said.
Trade will take place four days a week from Monday to Thursday beginning each year on June 1 and continue until Sep 30 after which heavy snow makes the cloud-shrouded area impassable.
"The idea is to start border trade and despite the first two weeks witnessing small scale trading we still believe the beginning is very good and encouraging," Subba said.
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