The Indian traders have declined to participate in the trade since Thursday after the Chinese authorities at Nathula border gate did not clear their goods on May 4. The Chinese authorities allegedly told the Indian traders that they do not recognise the list of items approved by the Indian Government, the newly-formed Indo-China Border Trade (Sikkim) Association informed.
The traders also said the mart (Donqingang) in-charge of China side has informed that they will impose tax per kilogram on approved items that will be exported to China from India.
The DC said that the custom duties could not be imposed on border trade items as per the bilateral agreement of 2006 between India and China when the historic Nathula border trade was resumed. The border trade has been going smoothly for the past five years. No such issue of custom duty had been raised, and we have received no official communication stating that custom duty will be imposed, the DC said.
The DC assured the traders that the State Commerce and Industries secretary would be writing a letter to the Ministry of External Affairs on the issue of custom duty and non- recognition of the exportable list of Indian items by the Chinese authorities. The Indian Government will take up the issue with the Chinese Government, he said.