Uncertain Future of Rasuwagadhi Checkpoint Causes Billions in Losses

During the fiscal year 2082/83, Rasuwagadhi checkpoint accounted for 2.18 percent of total foreign trade imports. On 24 Ashad 2082, the Bhote Koshi flood forced the Rasuwagadhi checkpoint to close for six months, and 15 employees remain missing. The flood caused extensive damage to the Mitari Bridge, dry port, and surrounding infrastructure, casting uncertainty on the checkpoint’s future.

Kathmandu, 16 Bhadra — In the fiscal year 2082/83, goods worth 2.18 percent of Nepal’s total foreign trade imports were brought in through Rasuwagadhi checkpoint. The import volume was relatively low compared to previous periods because the sudden flood on 24 Ashad 2082 at the Bhote Koshi (Lhende) River, flowing along the Nepal-China border, forced a six-month closure of this checkpoint. Trade resumed after China opened the Bell Bridge on 17 Poush 2082.

In the past six months, imports through Rasuwagadhi totaled NPR 4.573 billion, while exports amounted to NPR 89.46 million. Currently, three checkpoints operate for Nepal-China cross-border trade, with Rasuwagadhi regarded as the most convenient and nearest among them.

Last year, the Tatopani checkpoint saw imports worth NPR 4.748 billion but zero exports. As an alternative to both Rasuwagadhi and Tatopani, the Korala checkpoint in Mustang recorded imports worth NPR 1.44 billion and exports of NPR 20.55 million. The main reason for the increase in trade at Korala was the closure of Rasuwagadhi due to flooding in Ashad of the previous year.

In 2081/82, Rasuwagadhi handled imports worth NPR 8.523 billion and exports totaling NPR 204 million, representing 4.72 percent of total imports and 0.74 percent of exports.

According to Customs Department Director and Information Officer Kishor Bartoula, Rasuwagadhi is the most reliable trade point for Nepal-China commerce. Prior to the 2072 earthquake, China had designated Tatopani as the main customs center, but it has since remained closed for a prolonged period. Currently, Tatopani is not fully operational, and the Chinese side has not shown full willingness to reopen it citing various reasons. Consequently, Rasuwagadhi has become the primary hub for Nepal-China trade.

The flood that struck suddenly at 3 a.m. on 24 Ashad 2082 caused over 18 people to disappear. Severe damage occurred to key physical infrastructures including the Mitari Bridge. Ashish Gajurel, Chairperson of the Parliamentary Development Committee and former Executive Director of the Nepal Intermodal Development Committee, stated, “Last year’s flood sent a serious warning to this customs checkpoint and the surrounding settlements. Perhaps we did not take it seriously enough.”

He added, “10 Bhadra 2083 is established as a tragic black day — one that jeopardized not only the lives of thousands but also government investments worth billions and private sector capitalors in the trillions.”

Rasuwagadhi checkpoint is located 132 kilometers from Kathmandu to Galchi. The Ministry of Infrastructure Development estimates that 40 kilometers of road on the Rasuwa side have been completely washed away. The Department of Roads has commenced assessments of various damaged road sections. Approximately 27 bridges between Mitari Bridge and Galchi have been destroyed, putting customs and immigration operations at Rasuwagadhi in a precarious condition.

Director Bartoula remarked, “The government will make a decision regarding the future of this checkpoint. As it is a key international trade point, the government will study all aspects thoroughly before deciding, and our department will act accordingly.”

The department reports that more than 15 staff members of the customs office are still unaccounted for. The current priority is to search for and rescue these missing employees. Multiple teams have been deployed to ascertain their status.

Rasuwagadhi Customs has a 70-year history. Historically, it has been an important route for trade and cultural exchange between Nepal and Tibet. The Rasuwa Customs Office was established in 2013 BS to regulate revenue collection.

China officially recognized Rasuwagadhi as an international checkpoint in 2075 BS, which enhanced its significance on the international stage. Through this checkpoint, Nepal mainly imports electrical goods, ready-made garments, footwear, construction materials, agricultural products, telecommunications equipment, vehicles, and industrial machinery.

Exports from Nepal through Rasuwagadhi traditionally included blankets, handicrafts, woolen fabrics, medicinal herbs, instant noodles, copper utensils, and agricultural products destined for China. Recently, this checkpoint has also served as a convenient route for Indian pilgrims traveling to Kailash Mansarovar. Hundreds of tourists on this pilgrimage have gone missing due to the floods.

Rasuwagadhi checkpoint plays a vital role in Nepal’s economy and employment generation. Through hotels, transportation, container loading-unloading, customs agents, and small businesses, it provides jobs for thousands of citizens.

The flood last year destroyed the dry port at Rasuwagadhi as well. The 2082 flood caused damages worth NPR 8.159 million to the newly constructed customs building, and NPR 912 million in damages to the dry port. The customs office, goods stored in the yard, vehicles, containers, and machinery suffered estimated losses totaling NPR 705.1 million.

According to Development Committee Chair Ashish Gajurel, the Timure dry port project was valued at NPR 3 billion, with NPR 2 billion already spent. Most structures were completed and the project was moving into the finishing phase. However, the flood caused massive damage, halting further investment.

Currently, the state has incurred huge financial losses and lost employees in this infrastructure. The extent of private investment losses remains to be fully accounted for. Consequently, this historic border and customs center has been reduced to the need for rebuilding from scratch.