Korala Emerges as Nepal’s New Trade Lifeline with China

The Department of Customs announced Sunday, September 21, that the Customs Office at Korala checkpoint in Mustang, which came into full operation on September 15, cleared 209 electric vehicles and 107 cargo consignments by September 20, generating Rs 344.7 million in revenue.

The route was brought into full operation to facilitate Nepal-China trade after devastating floods on July 8 forced the complete closure of the Rasuwa Customs Office at Timure, while a landslide along the Kodari highway disrupted operations at Tatopani Customs Office.

With both major checkpoints blocked, Nepal and China agreed to activate the Korala border point to ensure the smooth continuation of cross-border trade.

In its statement, the department noted that the Automated System for Customs Data (ASYCUDA) has already been implemented at Korala, enhancing transparency and efficiency in trade documentation.

It further stated that, in line with a directive issued by Nepal Rastra Bank on September 16, the Mustang Customs Office has been included in the Integrated Circular 2081. This allows imports through letters of credit (L/C) routed via Chinese territory, a step officials say will help streamline processes and reduce disruptions caused by natural disasters along traditional trade routes.

The department highlighted that the operationalisation of Korala provides not only an alternative for Nepal’s foreign trade with China but also a significant milestone in opening Mustang as a viable trade corridor.

It added that both governments are working closely to ensure the checkpoint can handle increased cargo volumes in the coming months, particularly as trade demand rises during the festival and winter season.