In a bid to improve the effectiveness and efficiency of cross-border trade and customs operations, Indian and Nepali customs authorities have agreed to take concrete steps to combat trans-border criminal activities and curb the smuggling of prohibited items, including gold, narcotics, and fake currency notes (FCN). Recognising the critical role of border management in the fight against smuggling, discussions also focused on upgrading border infrastructure, as well as automating and digitising transit processes to streamline operations. These discussions took place during the 21st Director-General Level Talks on Customs Cooperation, held in Kathmandu on April 10-11. The two sides delved into issues surrounding trans-border criminal activities, the smuggling of gold, narcotics, and FCN, as well as prohibited and restricted goods like e-cigarettes, e-lighters, and certain varieties of garlic. They also addressed commercial frauds involving sensitive goods. “It was acknowledged that smuggling has been a persistent challenge, and both nations are committed to strengthening cooperation to prevent cross-border smuggling through active engagement and intelligence sharing. Both sides agreed to take necessary measures to control unauthorized trade and work together in tandem,” a government statement read. The talks covered several important areas, including the review of the Memorandum of Understanding on Pre-arrival Exchange of Customs Data and the Electronic Origin Data Exchange System (EODES). The finalisation of the Customs Mutual Assistance Agreement (CMAA) and the facilitation of transit cargo movement through the Electronic Cargo Tracking System (ECTS) were also discussed. Additionally, the need for capacity-building programmes for customs officials was highlighted, with Nepali delegates expressing gratitude for India’s ongoing support in this regard. Nepal remains a priority partner for India under its ‘Neighbourhood First’ policy. India is Nepal’s largest trade partner, accounting for two-thirds of Nepal’s exports.