BBIN Motor Vehicle Agreement

March 9, 2022

The Bangladesh, Bhutan, India, Nepal (BBIN) Motor Vehicle Agreement (MVA) was signed by all four BBIN countries in 2015 but has not yet been implemented.

About BBIN MVA

The BBIN Motor Vehicles Agreement (MVA) was signed at the BBIN transport ministers meeting in Thimpu, Bhutan in June 2015. BBIN MVA will allow the four countries to ply their vehicles in each other’s country for transportation of cargo and passengers.
To enter another country’s territory, vehicles need to obtain an online electronic permit.
Under the agreement, there is no need for trans-shipment of goods from one country’s truck to another’s at the border. Cargo vehicles will have an electronic seal so that they can be tracked. Regulators will be alerted every time the door of the container opens.
As the cargo vehicles are fitted with an electronic seal with a GPS tracking device, there is no need to undergo customs clearance at the border.

Ratification of BBIN MVA

Once the agreement is ratified by all four countries, it enters into force. Bangladesh, India, and Nepal ratified the agreement.
Bhutan has not yet ratified, due to objections from opposition parties. In November 2016 the upper house of the Bhutanese parliament rejected the agreement.
Bhutan wants to limit the number of vehicles entering its country. Bhutan has concerns regarding damage to the environment and impact on Bhutanese truckers.
Bhutan and India already have a bilateral agreement that allows seamless movement of vehicles between the two countries. So, Bhutan’s decision to not ratify the BBIN agreement will only affect its trade with Nepal and Bangladesh.

Recent MoU

On 8^th March 2022, India, Bangladesh, and Nepal finalized an MoU to implement the BBIN MVA at a meeting held in New Delhi, India. The specific steps and timelines to finalize passenger and cargo protocols were discussed by the delegates at the meeting.
Technical and knowledge support to the meeting was provided by the Asian Development Bank (ADB).

It is important to implement the agreement at the earliest to boost regional trade and connectivity in the South Asian region.

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