# Bhutan (BT) **Capital:** Thimphu **Currency:** Ngultrum (BTN) (BTN) **Population:** 780,000 — Older stored figure; source year not documented. **Area:** 38,394 km² > Bhutan is a landlocked country in the eastern Himalayas with no seaports. Foreign trade runs almost entirely through India: road transport via Phuentsholing and transit for third-country traffic through the Indian ports of Kolkata and Haldia. The sole international airport, Paro (PBH), provides air cargo access. Key exports are hydropower electricity to India, ferro-alloys and cement. Customs clearance is handled electronically via RAMIS of the Department of Revenue and Customs; a GST of 5 percent has applied since 1 January 2026. There is no railway. Bhutan (ISO-Code: BT) is located in the eastern Himalayas between India and China and is a landlocked country without direct access to the sea. Politically, Bhutan is a constitutional monarchy with a stable government and independent domestic policy. The climate varies significantly with altitude: subtropical in the south, temperate in the valleys, and cold-alpine in the north. The economy is strongly characterized by agriculture, hydropower, and forestry products, while the industrial sector remains small. Bhutan is dependent on imports for fuels, machinery, and consumer goods, with India being the most important trading partner. The logistical infrastructure focuses on road connections and some air cargo services, with transit functions for international trade being limited. Foreign trade is marked by energy exports, primarily electricity to India, as well as imports of essential goods. The national currency is the Ngultrum (BTN), which is pegged to the Indian Rupee, facilitating trade and payment transactions. Bhutan pursues a sustainable economic policy and is increasingly strengthening its role as a regional partner in the Himalayas. **Top Import Partners:** IN, CN, JP, SG, TH **Top Export Partners:** IN, BD, NP, HK, JP **Top Import Goods:** Machinery, Vehicles, Fuels, Metals **Top Export Goods:** Electricity, Ferroalloys, Cement, Limestone **Key Airports:** - [Gelephu Airport (GLU)](https://www.freight-academy.com/en/information/airports/gelephu-airport-glu) - [Paro International Airport (PBH)](https://www.freight-academy.com/en/information/airports/paro-international-airport-pbh) - [Bathpalathang Airport (BUT)](https://www.freight-academy.com/en/information/airports/bathpalathang-airport-but) - [Yongphulla Airport (YON)](https://www.freight-academy.com/en/information/airports/yongphulla-airport-yon) - [Buli Heliport](https://www.freight-academy.com/en/information/airports/buli-heliport-airport-4740) - [Dumcho Heliport](https://www.freight-academy.com/en/information/airports/dumcho-heliport-airport-9147) - [Mongar Heliport](https://www.freight-academy.com/en/information/airports/mongar-heliport-airport-21850) - [Rinchending Heliport](https://www.freight-academy.com/en/information/airports/rinchending-heliport-airport-26041) - [Royal Bhutan Police Heliport](https://www.freight-academy.com/en/information/airports/royal-bhutan-police-heliport-airport-33475) - [Trongsa Heliport](https://www.freight-academy.com/en/information/airports/trongsa-heliport-airport-34190) ## Customs & Import **Import VAT:** GST 5 percent since 1 January 2026 (reduced from originally planned 7 percent) **Customs complexity:** medium **Customs system:** Electronic clearance via RAMIS of the DRC; customs value on CIF basis, customs duty ad valorem. As of 2026. **Customs authority:** [Department of Revenue and Customs (DRC), Ministry of Finance](https://www.drc.gov.bt) ## Logistics & Risk **Logistics role:** Landlocked country / hydropower exporter **Economic area:** SAARC / SAFTA **Logistics risk:** medium **Dangerous goods relevance:** low **Pharma/cold chain:** low to medium ## FAQ ### Does Bhutan have a seaport? No. Bhutan is a landlocked country without access to the sea. Sea freight runs via Indian transit ports, mainly Kolkata and Haldia, from where goods reach Bhutan by road. ### Which customs authority is responsible in Bhutan? The Department of Revenue and Customs (DRC) in the Ministry of Finance. Clearance is handled electronically via the RAMIS system. ### Which import tax applies in Bhutan? Since 1 January 2026, a Goods and Services Tax (GST) of 5 percent applies, which is also levied on imports. It replaces the former sales tax and excise system; the rate was reduced from originally planned 7 percent to 5 percent. ### Are there customs advantages in trade with India? Yes. The India-Bhutan Trade and Transit Agreement allows duty-free trade when rules of origin are met; in addition, SAFTA preferences apply. ### How does air freight reach Bhutan? Via Paro Airport (PBH), the only international airport. It has a cargo terminal; Drukair handles cargo. Connections exist to Kolkata, Delhi and Bangkok, among others. ### Which goods are prohibited or restricted in Bhutan? Prohibited include narcotics, weapons and ammunition, as well as antiquities and religious cultural property. Plastic bags are prohibited; wildlife products (CITES) are restricted. ### Which currency is used in Bhutan? The Ngultrum (BTN), pegged 1:1 to the Indian Rupee. The Indian Rupee is also legal tender in Bhutan. ### Is there a railway in Bhutan? No. Bhutan has no rail network. Inland transport is exclusively by road; a rail connection to the Indian network is still in planning. ## Sources & Last Verified - [https://www.drc.gov.bt](https://www.drc.gov.bt) - [https://www.drc.gov.bt/wp-content/uploads/2024/09/Customs-Rules-and-Regulations-of-Bhutan-Revised-Edition-2023.pdf](https://www.drc.gov.bt/wp-content/uploads/2024/09/Customs-Rules-and-Regulations-of-Bhutan-Revised-Edition-2023.pdf) - [http://portal.drc.gov.bt/drc/node/391](http://portal.drc.gov.bt/drc/node/391) - [https://mof.gov.bt/wp-content/uploads/2026/01/GST-Rule-2026.pdf](https://mof.gov.bt/wp-content/uploads/2026/01/GST-Rule-2026.pdf) - [https://wits.worldbank.org/GPTAD/PDF/archive/bhutan-India.pdf](https://wits.worldbank.org/GPTAD/PDF/archive/bhutan-India.pdf) - [https://www.mfa.gov.bt/rbedelhi/bhutan-india-relations/bhutan-india-trade-relations/](https://www.mfa.gov.bt/rbedelhi/bhutan-india-relations/bhutan-india-trade-relations/) - [https://www.paroairport.com/about-us](https://www.paroairport.com/about-us) - [https://en.wikipedia.org/wiki/Bhutanese_ngultrum](https://en.wikipedia.org/wiki/Bhutanese_ngultrum) *Last verified: 2026-06-22* --- *Freight Academy — Country Profile: [https://www.freight-academy.com/en/information/land/bt](https://www.freight-academy.com/en/information/land/bt)* *Markdown mirror: [https://www.freight-academy.com/api/md/country/en/bt](https://www.freight-academy.com/api/md/country/en/bt)*