Question : INDO CHINA TRADE THROUGH NATHULA PASS

(a) Whether Nathula Pass has been opened for trade with China;

(b) If so, the details thereof including the items that have been permitted to be traded between India and China through Nathula Pass;

(c) Whether the commercial impact of the Indo-China trade was assessed prior to opening of the Nathula Pass for trade; and

(d) If so, the details thereof alongwith its likely impact particularly on the Sikkim economy?

MINISTER OF COMMERCE AND INDUSTRY (SHRI KAMAL NATH)

(a) to (d): A Statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA STARRED QUESTION NO.368 FOR ANSWER ON 22ND AUGUST, 2006 REGARDING “INDO-CHINA TRADE THROUGH NATHULA PASS ”

(a) & (b): Yes, Sir. Nathula Pass has been opened for border trade with China with effect from 6th July, 2006. The import and export of the following locally produced commodities by the people living along both sides of the India-China border as per the prevailing customary practice are allowed freely :-

Imports

1. Goat skins, 2. Sheep skins, 3. Horses, 4. Sheep, 5. Goats, 6. Wool, 7. Silk,

8. Yak Tails, 9. Yak Hair, 10. China Clay, 11. Borax, 12. Szaibelyita, 13. Butter, 14. Goat cashmere (Pasham) , 15. salt.

The above items are exempted from duty when imported into India from China through border trade vide notification No. 158/9-Custom dt. 29th July, 1994.

Exports

1. Agriculture implements, 2. Blankets, 3. Copper Products, 4. Clothes, 5. Textiles, 6. Cycles, 7. Coffee, 8. Tea, 9. Barley, 10. Rice, 11. Flour, 12. Dry Fruit, 13. Dry and fresh vegetables, 14. Vegetable Oil, 15. Gur and Misri, 16. Tobacco, 17. Snuff, 18. Cigarettes, 19. Canned Food, 20. Agro-Chemical, 21. Local Herbs, 22. Dyes, 23. Spices, 24. Watches, 25. Shoes, 26. Kerosene Oil, 27. Stationery, 28. Utensils, 29. Wheat (Ua & Buck)

(c) & (d) The border trade through Nathula has commenced in pursuance to the Memorandum signed between India and China on Expanding Border Trade. No study for assessing commercial impact was carried out before opening Nathula Pass for trade.