1 Bhutan Country Profile

1 Bhutan Country Profile


Bhutan Country Map

Generic Information

Bhutan, officially the Kingdom of Bhutan, is a landlocked country in Asia, and it is the smallest state located entirely within the Himalaya mountain range. Located in the Eastern Himalayas, it is bordered by China (to the north) and India (to the south). Bhutan lacks a border with nearby Nepal due to the Indian state of Sikkim and with Bangladesh due to the Indian states of West Bengal and Assam. Bhutan is geopolitically in South Asia and is the region's second least populous nation after the Maldives. Thimphu is its capital and largest city, while Phuntsholing is its business and financial centre.

Humanitarian Information 

Bhutan World Food Programme Information: http://www1.wfp.org/countries/bhutan

Facts and Figures

Bhutan             Wolfram Alpha Information     http://www.wolframalpha.com/input/?i=Bhutan

Bhutan             World Bank Information          http://www.worldbank.org/en/country/bhutan

Bhutan             World Population Review      http://worldpopulationreview.com/countries/bhutan-population/

1.1 Bhutan Humanitarian Background

Disasters, Conflicts and Migration

Natural Hazards

Drought

No

Of the nine Asian LDCs, Afghanistan, Bhutan, Bangladesh, and Nepal are located in South Asia, Cambodia, East Timor, Myanmar, and Laos PDR are in Southeast Asia. These Asian LDCs experience frequent moderate to severe droughts of all types and all possible impacts of droughts.

Earthquakes

Yes

Geo-physically, Bhutan is located in one of the most seismically active zones in the world. The Bureau of Indian Standards indicates that the majority of Bhutan is either in Zone IV or V, V being the Zone at the highest risk of sufferin gan earthquake of MSK 9 or greater. Records suggest that while four great earthquakes of magnitude exceeding 8 on the Richter scale occurred in 1897, 1905, 1934 and 1950, another 10 earthquakes exceeding magnitude 7.5 have occurred in the Himalayan belt over the past 100 years.

Bhutan experienced six earthquakes between 2003 and 2011 which ranged from 5.5 to 6.9 on the rector scale. In September 2009 an earthquake measuring 6.1 on the Richter scale killed 12 people and damaged a large number of houses, public buildings, and cultural and religious monuments. Approximately 7,290 people were left without adequate shelter. In September 2011 another earthquake measuring 6.9 on the Richter scale hit the greater part of Sikkim (India), affecting Haa, Paro, Samtse and Chukha districts in Bhutan resulting in loss of one life due to landslides and 14 injuries and causing structural damage to rural houses, schools, hospitals, local administrative offices, heritage sites, monasteries and renewable natural resources and agriculture extension valued at BTN 1,197.63 million.

Epidemics

Yes

 There have been outbreaks of Dengue Fever in 2016 and 2017 (the first such was in 2004). There have been outbreaks of bird flu and there is currently (August 2017) an outbreak of swine flu in Nepal.

Extreme Temperatures

Yes

Not frequent but can occur in the border towns of Phuentsholing, Gelephu, Samdrup Jonghkar.

Flooding

Yes

A) Flash floods and landslides are recurrent phenomena in Bhutan causing extensive damage during the monsoon season (traditionally from June to September but more recently there are also bouts of high rainfall at other times of the year). They have been observed to follow a cyclic pattern of 2 to 4 years [p8] with the eastern region being particularly vulnerable. The most recent record of flash floods can be traced to the 2016 monsoon floods that occurred in the six eastern and southern Dzongkhas (districts) which also significantly affected Sarpang Town . Many houses were destroyed and/or partially damaged. Agricultural fields were submerged and destroyed. Other towns such as Gelphu and Phuentsholing were affected as well.

B) Glacial Lake Outburst Floods (GLOF) are a potential serious natural hazard in the country though relatively localized to lower-lying areas near the streams. Due to the effects of global warming, glaciers in the Himalayas are shrinking rapidly, thus possibly accelerating glacial retreat in this region. According to a recent study conducted by the Department of Geology and Mines, there are 2,674 glacial lakes in Bhutan, of which 562 are associated with glaciers (see this report for further information on Bhutan lakes). The study identified 24 glacial lakes as potentially dangerous lakes that could pose GLOF threat in the near future. In 1994, a GLOF which was caused by the partial burst of Lugge Tsho glacial lake in eastern Lunana damaged more than 1,700 acres of agricultural and pasture land and dozens of houses, washed away five water mills and 16 yaks and destroyed 6 tons of food grains.

High Waves / Surges

No

 

High Winds

Yes

Although Bhutan has not experienced large scale destruction due to windstorms, snow, hailstorms, between April and June 2017, more than 300 households were severely affected and experienced property damage by wind storm in Punakha, Trashigang and Tsirang dzongkhags (districts).

Insect Infestation

Yes

Communities in Bhutan have been affected by outbreaks of pests and endemic crop diseases in the past. Malaria has largely affected the southern belt, with dengue outbreaks recurring since 2004 in municipal areas in this region.

 Mudslides  Yes

Landslide events are closely linked with heavy rainfall and partially flooding, and are a recurrent phenomena in Bhutan. Slopes in the country are highly susceptible to landslides especially in the rainy season; noting that “dry slides” also occur. Most occur in the eastern and southern foothill belt where the terrain is steep and rocks in the underlying soil cover are highly fractured, allowing easy seepage of water and further fracturing due to frost.

 

Volcanic Eruptions No  
Wildfires Yes Given the rugged and steep topography with thick ground fuels and erratic wind conditions, Bhutan is prone to frequent forest fires. In the last decade, there have been extensive forest fire outbreaks in many parts of the country. The risk of fire outbreaks is generally exacerbated in the dry winter months (November to April). A total of over 800 forest fires damaging an area of around 300,000 acres were recorded by the Forestry Service Division, Ministry of Agriculture, over the period 1995 to 2015.
Man-Made Issues
Civil Strife No  

Internally Displaced Persons

No

 

International Conflict

No

 

Landmines / UXO Present

No

 

Refugees Present

Yes

Around 10,000 refugees still reside in UNHCR camps in eastern Nepal. Over 100,000 refugees were settled in third countries mainly in USA, Australia and Canada between 2008 and 2017.

 

For a more detailed database on disasters by country, please refer to the Centre for Research on Epidemiology of Disasters Country Profile.

 

Seasonal Effects on Logistics Capacities

Bhutan has four seasons:

  • Spring (March, April and May),
  • Summer (June, July and August),
  • Autumn (September, October and November) and
  • Winter (December, January and February).

Depending on the altitude, the climate varies from semi-tropical to alpine (For every 1,000 m height increase, the temperature drops about 6-7 degrees Celsius).

In Southern Bhutan, the climate is tropical in the monsoon season and may range from 15 degrees Celsius in winter to 30 degrees Celsius in summer.

The east is also warmer than the west, given it has a generally lower altitude.

The centre enjoys a sub-tropical climate with very cool winters while the northern parts of the country have a harsh climate including snowfall two to three times every winter.

Seasonal Effects on Transport

Transport Type

Time Frame

Comments / Details

Primary Road Transport

From June to August and

From November to January

During rainy seasons (June to August), most of the roads become regularly blocked due to soil erosion and landslides. During winter (November to January) high passes may be blocked by snow. Flash flooding quickly erodes non asphalted surfaces.

Secondary Road Transport

From June to August and

From November to January

During rainy seasons (June to August), many of the roads become blocked on a regular basis due to soil erosion and landslides. During winter (November to January) high passes are blocked by snow. Flash flooding quickly erodes non asphalted surfaces.

Rail Transport

NA

 

Air Transport

 

During winter occasional snow storms can result in flights being delayed or cancelled.

With visual flights only being possible, heavy rainfall, low hanging clouds or fog may also affect flights, especially during the rainy season and winter. Equally during spring there are stronger winds – especially in the afternoon – which can affect flights.

Waterway Transport

NA

 

 

 

Seasonal Effects on Storage and Handling

Activity Type

Time Frame

Comments / Details

Storage

Depends on the type of cash crop.

The Food Corporation of Bhutan Ltd. (FCBL) warehouses become full during the time of cash crop harvesting, including apples, potatoes and oranges, when farmers bring their products to FCBL for auctioning.

Handling

NA

 

Other

Depends on the type of cash crop

During apple, oranges and potato harvesting season, there is high demand for transport. This causes sometimes scarcity of trucks for other normal activities since truckers get paid better rates while transporting these cash crops.

 

Most storage areas visited during the research for the LCA were dry and well ventilated and in particular the Food Corporation of Bhutan Ltd. (FCBL). Apart from scarcity of transport during production season, the greatest “hazard” is the road distribution system. During the monsoon season, there are frequent road closures due to mud slides, rock slides and flash flooding.

Capacity and Contacts for In-Country Emergency Response

GOVERNMENT

While Bhutan has a relatively small population (less than 1 million people), there are many ministries and departments involved in the bureaucratic chain to deal with emergencies including the Gross National Happiness Commission, the Department of Disaster Management, the Ministry of Health, the Department of Roads, the Department of Air Transport to the Ministry of Information and Communications. At the next level, there is the Bhutanese Army and the Bhutanese Police Force. At the next level there is the Indian Army and Dantak (a project of Indian Border Roads Organization) which is essentially the Indian Army as well.

All these organizations are manned by competent players who are very concerned about potential emergencies.

In 2013 the Royal Government of Bhutan (RGOB) enacted the Disaster Management Act, National Disaster Risk Management Framework and Disaster Management Rules and Regulations. An Incident Command System (ICS) has been put in place for the national, district and sub-district levels, however the Department of Disaster Management (DDM) is yet to come up with a National Disaster Management Plan and Contingency Plan.

For more information on government contact details, please see the following link:

4.1 Bhutan Government Contact List

HUMANITARIAN COMMUNITY

Resident UN agencies in Bhutan are:

UNDP, UNICEF, WHO, UNFPA, WFP, FAO, UNWOMEN, UNODC

UNDP

UNDP assistance in Bhutan began with an initial allocation of USD 2.5 million for its first country programme (1973-1976) coinciding with the fifth and sixth Five Year Plans.  Prior to 1996, UNDP assistance primarily focused on civil aviation, telecommunications, private sector, energy, tourism and media. Currently, UNDP's supports also includes sustainable progress in people's lives, their needs, efforts and rights.

http://www.undp.org/content/bhutan/en/home/operations/about_undp/

UNICEF

UNICEF Bhutan works on four key programme areas, with a strong focus on equity and inclusion. These include health, nutrition and sanitation; quality education; child protection and youth participation; and planning, monitoring and communication for advocacy and promotion of behavioural and social change communication. HIV/AIDS prevention and care and gender are cross-cutting elements of the programme.

https://www.unicef.org/infobycountry/bhutan.html

WHO

Bhutan formally joined WHO on 8 March 1982. However, the country had commenced to engage with WHO many years prior to this, the most significant being participation in the International Conference on Primary Health Care, in Alma Ata in September 1978. Bhutan formally adopted the Alma Ata Declaration of 'Health For All,' in 1979, as the guiding principle for the development of modern health services in the country. 

Within the context Bhutan joined WHO to seek its support and technical guidance to develop and promote a modern health care system in the country.

http://www.who.int/countries/btn/en/

UNFPA

The United Nations Population Fund, UNFPA, is the lead UN agency for delivering a world where every pregnancy is wanted, every childbirth is safe, and every young person’s potential is fulfilled.

UNFPA expands the possibilities for women and young people to lead healthy and productive lives.

UNFPA’s partnership with the Royal Government of Bhutan started in the 1970s with the first country programme cycle in 1987.

http://bhutan.unfpa.org/

WFP

WFP supports the Government of Bhutan to become self-reliant in the management, coordination and implementation of a cost-effective, equitable and quality national school feeding programme.

The Government of Bhutan has been implementing school feeding for more than four decades and WFP support is gradually being phased out. The current development project is facilitating this transition process by transferring knowledge, systems and skills to the relevant government partners. The residual number of students supported by WFP is gradually reducing with responsibility being handed over to the Government on an annual basis. By the start of the 2019 school year, the responsibility for all schoolchildren will be covered by the Government.

http://www1.wfp.org/countries/bhutan

FAO

FAO assistance to Bhutan reflects national development strategies and is cantered on five priority areas: developing and implementing effective agricultural policies and legal frameworks and building institutional capacity for food security and nutrition; fostering multi-sectoral participation, coordination and value chain development in food and nutrition security programmes; strengthening information management and communication systems related to renewable natural resources; enhancing equitable, productive and sustainable natural resource management and community based enterprise development; addressing climate change and its impacts on agriculture and food and nutrition security.

http://www.fao.org/countryprofiles/index/en/?iso3=BTN

For more information on humanitarian agency contact details, please see the following link:

4.2 Bhutan Humanitarian Contact List

 

1.2 Bhutan Regulatory Departments & Quality Control


Bhutan Agriculture and Food Regulatory Authority (BAFRA)

The Bhutan Agriculture and Food Regulatory Authority (BAFRA), Ministry of Agriculture and Forests, is the competent authority for biosecurity and food safety systems to promote the quality and safety of food and agricultural related products. The BAFRA was officially established as the Quality Control and Regulatory Services (QCRS) in August 2000.

The BAFRA is headed by a Director General and the agency has two divisions: the Quality Control and Quarantine Division (QCQD) and the Analytical and Certification Division (ACD). Apart from the head office, BAFRA has field offices in 20 Dzongkhags, Dungkhags, major entry points, minor entry points and other branch offices including the National Food Testing Laboratory (NFTL) at Yusipang, Thimphu.

 Mandate of BAFRA:

  • Implement RNR (renewable natural resources) related legal instruments such as the Plant Quarantine Act, Seeds Act, Pesticide Act, Livestock Act, Food Act, National Biosafety Framework, Forest and Nature Conservation Act, Biodiversity Act and their secondary and tertiary legislations.
  • Implement sanitary and phytosanitary (SPS) measures effectively to protect the health and life of humans, plants and animals including the environment from risks of entry, establishment and spread of exotic pests and diseases.
  • Function as a National Food Inspectorate to ensure that food is of good quality and safe for human consumption.
  • Regulate and promote the quality of agriculture inputs (seeds, agro-chemicals, livestock, veterinary biological, etc.).
  • Facilitate development of agro based industries to promote trade and market access through standardization and implementation of quality assurance systems.
  • Function as the Competent Authority (CA) for implementation of the Biosafety Act for safe transfer, handling and use of Living modified Organisms (LMOs), Genetically Modified Organisms (GMOs) and their products.
  • Function as the Focal Points for International Organizations viz.,
  • International Plant Protection Convention (IPPC),
  • Codex Alimentarius Commission (CAC),
  • National Enquiry Point for World Trade Organization-Sanitary and Phytosanitary Agreement (WTO-SPS agreement),
  • International Food Safety Authorities Network (INFOSAN) for International Health Regulations (IHR)
  • Cartagena Protocol on Biosafety (CPB) for Conventional Biodiversity (CBD)

Bhutan Standards Bureau (BSB)

The Bhutan Standards Bureau (BSB) was established as an autonomous organization in the year 2010 after the enactment of the Bhutan Standards Act 2010 on 7 July 2010, to foster and promote standards and standardization activities as a means of advancing the national economy, benefiting the health, safety and welfare of the public, assisting and protecting consumers, protecting natural environment, promoting industrial efficiency and development and facilitation of  domestic as well as international trade. BSB is now set to coordinate and oversee all standardization and conformity assessment activities in the country.

Mandate of the Bureau (as per Bhutan Standards Act 2010):

  • Develop national standards and facilitate their implementation;
  • Establish and operate metrological referral and calibration laboratories;
  • Establish and operate product testing infrastructure;
  • Carry out/operate product and management system certification schemes;
  • Permit, coordinate and facilitate accreditation of laboratories and certification bodies;
  • Promote quality and standardization;
  • Oversee the implementation of Regional and International Trade Agreements related to standards and Technical Barriers to Trade; and
  • Carry out such other mandate related to standardization and quality control including monitoring as may be assigned by the Royal Government


Bhutan Information Communications and Media Authority (BICMA)

The Bhutan Information Communications and Media Authority (BICMA) is an autonomous body that was formally de-linked from the Ministry of Information and Communication (MoIC) as of 1 January 2007 and it is the Communications and Media regulatory body in Bhutan.

Mandate of BICMA:

  • Enabling a secure, efficient and reliable delivery of ICT and Media services at affordable prices;
  • Managing access to the radiofrequency spectrum and monitoring their usage;
  • Support continuous technological advancement to improve the standards of information, communications, media and entertainment;
  • Improve and monitor the choice available in the content of the media and entertainment for news, current affairs, religious knowledge, art, culture, science, technology, social sector concerns, music, sports, drama and other subjects of public and national interest;
  • Licensing of cable TV, broadcast media, printing presses, publications, entertainment licenses, ICT facility and service licenses.
  • Maintain a dynamic and progressive regulatory system to promote market development, manage competitions while protecting consumers and other users;
  • Facilitate the establishment of an integrated, efficient and high quality ICT infrastructure in the country;
  • Issuance of filming permits, review and certification of films and accreditation of journalists;
  • Develop rules, guidelines and appropriate standards for uniform ad consistent enforcement and efficient utilization of available resources.
  • Set appropriate technical standards and rules to ensure interoperability, efficient use of radio spectrum and telephone numbers.


Department of Revenue and Customs (DRC)

The Department of Revenue and Customs (DRC) is the tax and customs regulatory body under the Ministry of Finance (MOF).  Its vision is to contribute to the nation building process through the development of an effective revenue system. The core mandate includes as follows;

  • Implement and monitor the Sale Tax, Custom and Excise Act of Kingdom of Bhutan (2000) and ,Rules;
  • Review and advise the Ministry of Finance on Custom and Excise policies;
  • Coordinate with other law enforcement agencies in prevention of the smuggling of restricted and prohibited goods;
  • Process Excise Duty Refund claims from Government of India;
  • Liaise with WCO, Regional Custom Administration and other international agencies

Drug Regulatory Authority (DRA)

The DRA is an autonomous agency established in 2004 that controls and regulates medicinal products (both human and veterinary) in Bhutan.

Mandate of DRA:

  • Authorizing for manufacture, import, export, sale, distribution and storage of medicinal products including blood and blood products;
  • Registration of medicinal products which are manufactured within as well as imported into the country;
  • Monitoring the competency and skills of personnel involved in the import, storage, manufacture and sale of medicinal products;
  • Inspection/monitoring of premises for manufacture sale, distribution and storage of medicinal products including blood and blood products;
  • Monitoring trends and cases of adverse effects resulting from medicinal products;
  • Informing the public on the use and harmful effects of medicinal products;
  • Promoting the policies for improved access to cost-effective quality medicinal products;
  • Conducting research on pertinent issues related to medicinal products.

For more information on regulatory departments and quality control laboratories’ contact details, please see the following links:

4.1 Bhutan Government Contact List

4.3 Bhutan Laboratory and Quality Testing Companies Contact List 


 

 

1.3 Bhutan Customs Information

Duties and Tax Exemption

The following information refers largely to a meeting with the Commissioner of the Department of Revenue and Customs held in July 2017.

The commissioner advised that the new act is at its final stage for clearance from His Majesty and is to be implemented shortly. The old Customs Act of 2000 is still in effect and same provisions for international food aid and emergencies will apply in the new act.

 He further informed that the Royal Government of Bhutan (RGOB) generally exempts duties and taxes for all aid coming for emergencies. Furthermore, there would be fast track clearance system put in place in times of emergencies.

 Bhutan has a Customs office in Kolkata to facilitate all inbound cargo from the port of Kolkata.

 Standard shipping documents are required for all imports to Bhutan.

 Bhutan is member of the World Customs Organization (WCO), the Kyoto convention and SAFEETA.

There is a free trade agreement between Bhutan and India.

 

For contact information regarding government custom authorities, please follow the two links below: 

4.1 Bhutan Government Contact List

http://103.7.255.29/ministryoffinance/customs-excise

Emergency Response

 

Agreements / Conventions Description

Ratified by Country?

WCO (World Customs Organization) member

Yes

12 FEB 02

Annex J-5 Revised Kyoto Convention

Yes

 15 SEP 14 

OCHA Model Agreement

Yes

  08 AUG 11 

Tampere Convention (on the Provision of Telecommunication Resources for Disaster Mitigation and Relief Operations)

Yes

 12 OCT 00

Regional Agreements (on emergency/disaster response, but also customs unions, regional integration)

Yes

SAARC, BIMSTEC


Exemption Regular Regime (Non-Emergency Response) 

 

National Customs Legislation and Regime

 

  • All UN agencies and Government approved international donors’ offices that are allowed to be operational are exempted from tax and duties. However, they have to apply for exemption for each and every transaction or activity. It is based on their basic agreements signed with the host government that UN agencies and international donors’ offices are exempted from tax and duties.
  • The details of the customs code articles/ decrees are found in the website.

http:// www.mof.gov.bt

Sales Tax:

Chapter 2 of SALES TAX, CUSTOMS AND EXCISE ACT OF THE KINGDOM OF BHUTAN, 2000 states that:

1.1  Foreign Diplomatic Missions, International organizations and agencies shall be exempted from paying Sales Tax; provided that exemption thereof, is in accordance with the obligations under international conventions, covenant, existing multilateral or bilateral agreements signed with the Kingdom of Bhutan.

1.2  On the satisfaction and in the public interest, the Ministry of Finance may exempt a person from the payment of Bhutan Sales Tax.

1.3  Any person importing goods on behalf of an exempt organization shall pay Sales Tax at the point of entry.

1.4  Refund of the Sales Tax levied under Sub-section 3.3 above and that of local purchases shall be made to the exempt organization

1.5  Exemption under Sub-section 3.1 to 3.4 above shall be in accordance with the rules prescribed by the Ministry.

Customs duty:

  • Foreign Diplomatic Missions, International organizations and agencies shall be exempted from paying Customs duty provided that exemption thereof, is in accordance with the obligations under international conventions, covenant, existing multilateral or bilateral agreements signed with the Kingdom of Bhutan and rules thereto, prescribed by the Ministry.
  • On the satisfaction and in the public interest, the Ministry may exempt a person from the payment of Customs duty.

Chapter 13 of SALES TAX, CUSTOMS AND EXCISE ACT OF THE KINGDOM OF BHUTAN, 2000 states that:

The import of the following goods into Bhutan is restricted.

  1. Arms and Ammunition.
  2. Explosive and explosive device.
  3. Animal and plant classified as endangered species and their parts and products;
  4. Industrial and toxic wastes and their parts and products:
  5. Wireless and remote sensing telecommunication and broadcasting equipment;
  6. Chemicals of certain kinds as notified by the National Environment Commission Secretariat;
  7. Scraps as notified by the National Environment Commission Secretariat;
  8. Used or second hand goods, vehicles, machinery and equipment;
  9. Any goods which do not have domestic market in Bhutan; and
  10. Any other goods which are restricted by any other laws in force.

The import of the following goods into Bhutan is prohibited.

  1. Narcotics and psychotropic drugs and substances;
  2. Pornographic materials; and
  3. Any other goods which are prohibited by any laws or international conventions or treaties to which Bhutan is a signatory.

Sale of duty exempt Vehicles

  1. Sale of transfer of vehicles imported under exemption basis by persons shall be liable to pay Customs duty, taxes, fees and charges.
  2. Officials of Diplomatic Missions, International organizations and experts may instead of new vehicles bring in their used and second hand vehicles along with them on their transfer to Bhutan. Such vehicles however shall not be permitted to be sold or transferred to any Bhutanese or privileged persons and shall have to be re-exported on his repatriation.
  3. The sale or transfer of vehicles by the Foreign Diplomatic Missions and International organizations whether by public auction or tender, the buyer if not a privileged person shall pay the Customs duty, taxes, fees and charges.
  4. No Customs duty shall be levied if a vehicle imported under exemption basis is sold or transferred after 5 year of its registration in Bhutan.
  5. Unauthorized import where a vehicle of a third country origin is imported into Bhutan without an authorization, it shall be confiscated without notice pursuant to Section 10 in the General Provisions.

 

 

 

Organizational Requirements to obtain Duty Free Status

United Nations Agencies

Only United Nations offices and its International employees, volunteers and Consultants are eligible for the Duty Free status. However, on every transaction and activity exemption certificates need to be obtained from the concerned authorities. A detail procedure is explained below under sub heading C) Exemption Certificate Application Procedure.

 

Non-Governmental Organizations

The government recognised NGO’s and their international employees and expatriates are exempted from duty and taxes. However, on every transaction and activity exemption certificates need to be obtained from the concerned authorities. Detail procedures are explained below under subheading

Exemption Certificate Application Procedure

 

Exemption Certificate Application Procedure: 

 

Duties and Taxes Exemption Application Procedure

Generalities

The documents required to apply for an exemption certificate are as follows:

  1. Import license.
  2. Application for exemption duly signed by the representative or the officer in charge.
  3. No Charge Invoice.

 

The Procedure is highlighted in the form of a flow chart in a step by step process.

  1. Import licenses can be processed from: Department of Trade, Ministry of Economic Affairs. The import license form can be downloaded from this website.(www.trade.gov.bt)
  2. IDEC (Import Duty Exemption Certificate) and BST (Bhutan Sales Tax Exemption certificate can be processed from: Department of Revenue and Customs, Ministry of Finance (www.mof.gov.bt). 

 

The forms should be properly filled and necessary documents as mentioned in the form need to be attached.

WFP Bhutan has the same clearing agent as the WFP Nepal Office.

Process to be followed

The following are the steps to complete the customs formalities while procuring commodities internationally or receiving international in-kind donation. 

Procedure to obtain Import License

The CO (Country Office) has to write an Official letter duly signed by Representative/OIC to the Joint Director, Department of trade. The letter should be attached with: (Max 4 working days to obtain the Import license). 

 

Procedure to Obtain Exemption certificate for Bhutan Sales Tax (BST) and IDEC

Download the forms from the websites: http://www.mof.gov.bt/downloads/28form_cd-1.pdf. (For IDEC) and http://www.mof.gov.bt/downloads/45form_st-2.pdf

Write an Official letter duly signed by the Representative/OIC to the Director, Department of Revenue and Customs, Ministry of Finance.

Attached the filled forms duly signed by the Representative/OIC affixing the official seal (IDEC and BST) and a copy of Import License, Bill of Lading and No Charge Invoice

 

 

 

Exemption Certificate Document Requirements

 

Duties and Taxes Exemption Certificate Document Requirements (by commodity)

 

Food

NFI (shelter. wash, education)

Medicines

Vehicles and Spare Parts

Staff (office) Supplies

Telecommunication Equipment

Invoice

-Yes

-One copy of Original Proforma.

-Applies to both UN and NGO

-Yes

-One copy of Original Proforma.

-Applies to both UN and NGO

-Yes

-One copy of Original Proforma.

-Applies to both UN and NGO

-Yes

-One copy of Original Proforma.

-Applies to both UN and NGO

-Yes

-One copy of Original Proforma.

-Applies to both UN and NGO

-Yes

-One copy of Original Proforma.

-Applies to both UN and NGO

AWB/BL/Other Transport Document

No

No

No

No

No

No

Donation/Non-Commercial Certificate

Non-Commercial Certificate

Non – Commercial certificate.

Non – Commercial certificate.

Non – Commercial certificate.

Non – Commercial certificate.

Non – Commercial certificate.

Packing List

Packing list.

No

No

No

No

No

Other Documents

No

No

Clearance From Drug Regulatory Authority, Ministry of Health.

No

No

Clearance from Bhutan Information Communication and Media Authority, Ministry of Information and Communication.

Additional Notes

 

Two forms, BST & IDEC must be filled and submitted to Department of Revenue and Customs with other documents as mentioned above in the flow chart.

 

 

Customs Clearance

 

Customs Information

Document Requirements

Proforma invoice and Non commercial certificate.

Embargoes

None

Prohibited Items

  1. Narcotics and psychotropic drugs and substances;
  2. Pornographic materials; and
  3. Any other goods which are prohibited by any laws or international conventions or treaties to which Bhutan is a signatory.

General Restrictions

  1. Arms and Ammunition.
  2. Explosive and explosive device.
  3. Animal and plant classified as endangered species and their parts and products;
  4. Industrial and toxic wastes and their parts and products:
  5. Wireless and remote sensing telecommunication and broadcasting equipment;
  6. Chemicals of certain kinds as notified by the National Environment Commission Secretariat;
  7. Scraps as notified by the National Environment Commission Secretariat;
  8. Used or second hand goods, vehicles, machinery and equipment;
  9. Any goods which do not have domestic market in Bhutan; and
  10. Any other goods which are restricted by any other laws in force.

 

 

General Information 

 

Customs Information

Document Requirements

Proforma invoice and non-commercial certificate.

Embargoes

None

Prohibited Items

  1. Narcotics and psychotropic drugs and substances;
  2. Pornographic materials; and
  3. Any other goods which are prohibited by any laws or international conventions or treaties to which Bhutan is a signatory.

General Restrictions

  1. Arms and Ammunition.
  2. Explosive and explosive device.
  3. Animal and plant classified as endangered species and their parts and products;
  4. Industrial and toxic wastes and their parts and products:
  5. Wireless and remote sensing telecommunication and broadcasting equipment;
  6. Chemicals of certain kinds as notified by the National Environment Commission Secretariat;
  7. Scraps as notified by the National Environment Commission Secretariat;
  8. Used or second hand goods, vehicles, machinery and equipment;
  9. Any goods which do not have domestic market in Bhutan; and
  10. Any other goods which are restricted by any other laws in force.


Customs Clearance Document Requirements

 

Customs Clearance Document Requirements (by commodity)

 

Food

NFI (shelter. wash, education)

Medicines

Vehicles and Spare Parts

Staff (office) Supplies

Telecommunication Equipment

D&T Exemption Certificate

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Invoice

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

AWB/BL/Other Transport Document

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Donation/Non-Commercial Certificate

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Packing List

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Phytosanitary Certificate

Yes, Original, 1 copy, applies to both UN and NGO

No

No

No

No

No

 

Other Documents

No

No

Clearance from Drug Regulatory Authority.

No

No

No

 

Additional Notes

 

For medicinal items, clearance needs to be obtained from the Drug Regulatory Authority. For telecommunication items clearance needs to be obtained from BICMA (Bhutan Information, Communication and Media Authority).

 

 

 Transit Regime

 

Transit Regime

Import Goods

  1. All goods imported by land, sea or air shall be deposited in the Customs area and remain under Customs control until they have been cleared on presentation of import documents.
  2. No goods shall be removed from the Customs area or otherwise dealt with without the written permission from a Customs Officer not below the rank of Assistant Commissioner.
  3. Ownership of imported goods shall vest with the Royal Government, if not cleared from Customs control or moved to the approved Customs warehouse by the importer within 90 days from the date of arrival. Such goods may be disposed off by the Department through public auction or tender.
  4. Notwithstanding Sub-section 16.5 [p2] above hazardous or dangerous goods as well as animals and perishable goods may be disposed off within 48 hours.
  5. Removal of goods from Customs control shall be allowed on payment of duty and tax, or on execution of a bond in the form of security or collateral equivalent to the tax and duty.
  6. Import and disposal of goods by privileged personnel Rules on import and disposal of goods by the officials of Diplomatic Missions and International organizations shall be prescribed by the Ministry.

Export goods

  1. All export goods by land, sea or air shall be allowed on presentation of export documents.
  2. The procedure for the clearance of export goods shall be as prescribed by the Ministry of consultation with the concerned authorities.

Declaration

  1. All imported and export goods whether dutiable or exempted shall be declared to Customs at the entry and the exit points.

Clearing and Forwarding agents

  1. Only licensed and registered clearing and forwarding agents shall be permitted to act as agents for the importer and the exporter.
  2. License/permits for clearing and forwarding agents may be issued by the Ministry of Trade and Industry on recommendation of the Ministry.
  3. Registration of clearing and forwarding agents and the conditions thereof shall be laid down by the Ministry

Goods in transit

  1. A transit permit issued by the Regional office or its authorized check posts shall accompany the goods in transit from one part of Bhutan to another through Indian territories.
  2. Movement of goods in transit to and from Bhutan through Indian territories shall be governed by the Protocol to the Agreement on Trade and Commerce between the Royal Government of Bhutan and the Government of the Republic of India.
  3. The owner of the goods shall be liable to pay Customs duty including fines and penalties under the Provision of this Act, where the loss of goods in transit is proved to be caused by negligence, default or any willful act or omission.