Country profile
Bhutan
BT · BTNAs of: 6/22/2026Landlocked country / hydropower exporter
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.
Overview
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.
Glossary terms
Customs & Import/Export
Customs authority
Department of Revenue and Customs (DRC), Ministry of FinanceImport system
Electronic clearance via RAMIS of the DRC; customs value on CIF basis, customs duty ad valorem. As of 2026.
Export system
Export processing via DRC/RAMIS; exports to India duty-free under the trade and transit agreement. As of 2026.
Import VAT
- GST 5 percent since 1 January 2026 (reduced from originally planned 7 percent)
- replaces the former sales tax and excise system
- also applies to imports.
Import documents
- Commercial invoice
- Packing list
- Waybill
- Certificate of origin
- Import permit (if required)
Export documents
- Commercial invoice
- Packing list
- Proof of origin
- Export permit (if required)
Origin proofs / FTA
India-Bhutan Trade and Transit Agreement: duty-free trade with rules of origin; also SAFTA preferences. As of 2026.
Restricted & prohibited goods
Prohibited including narcotics, weapons and ammunition, antiquities/religious cultural property; plastic bags prohibited; wildlife products (CITES) restricted.
Without warranty — always verify with freight forwarder/customs agent and official authorities.
Customs / Import / Export (Asia) — General process
Quick operational overview for international shipments to Asia. Product requirements, certificates, and clearance processes can vary significantly by destination.
Documents (typical)
- Commercial invoice (description, value, Incoterms)
- Packing list (weights, dimensions, packages)
- HS code / tariff classification
- Proof of origin / preference docs (where relevant)
- Depending on goods: certificates/compliance documents
Process (simplified)
- Prepare export (docs, HS code, origin)
- Import clearance in destination country (declaration, possible checks)
- Release and delivery; duties/taxes according to classification and value
Common pitfalls
- Vague description or missing HS codes → delays and clarifications
- Incoterms unclear: who clears customs/pays charges?
- Incomplete origin data → preferential treatment may not apply
- Inconsistent documents (invoice vs packing list vs shipment data)
Important: Requirements depend on goods, origin, Incoterms, value, and consignee. When in doubt, confirm with your broker/forwarder and official sources.
Official links
Note: regional/general sources. Country-specific authority links will be added iteratively.
Trade
Freight Infrastructure & Transport Network
Cargo airports
- Paro International Airport (PBH)
Inland ports & terminals
- Phuentsholing (mini dry port in planning)
Road corridors & border crossings
- Phuentsholing-Thimphu
- Samdrup Jongkhar-Trashigang
- Gelephu-Trongsa
Top trade lanes
- Bhutan-India (road via Phuentsholing)
- Bhutan-third countries via Kolkata/Haldia (transit)
- Paro-Kolkata/Delhi/Bangkok (air cargo)
Risk & Operational Notes
Risk notes
Landlocked country without seaports; foreign trade heavily dependent on India and its transit ports. Mountainous terrain makes road transport difficult.
Seasonal & weather risks
Monsoon (June-September) with landslides and road closures; winter with snow and fog at high passes and in Paro.
Current logistics notes
Since 1.1.2026 GST of 5 percent in force; dry port project in Phuentsholing is to improve border clearance with India. As of June 2026.
As of: 2026-06-22
Operational notes – no claim to completeness. Verify with your freight forwarder and official sources.
Airports in this country
Latest News
No news for this country yet.
View all news →Sources & Data Confidence
Official sources
- drc.gov.bt
- mof.gov.bt
- mfa.gov.bt
Source references without warranty. For legal/tax decisions consult official authorities.
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.
Which trade partners are important for Bhutan?
Which logistics terms are especially relevant for Bhutan?
For international shipments, these terms are a good quick start:
Next steps
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