Bhutan: sanctions and trade risk

No elevated indicator

As of 7 November 2026, the screened UN, EU, UK, Swiss and US sanctions lists contain 0 companies, organisations, vessels and aircraft linked to Bhutan.Lists last checked 2026-11-07 21:01 UTC.

Logistics profile: ports, airports, customs, documents, holidays, news ↓

No elevated country indicator for Bhutan in the route rules Sanctioni uses. That is not a clearance: goods may still be export-controlled, and parties in Bhutan may still be on a list.

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On the sanctions lists

No entry on the 7 lists Sanctioni screens names Bhutan.

Latest changes

No new listings or removals naming Bhutan recorded yet.

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Logistics profile

Bhutan: logistics and trade

Landlocked country / hydropower exporter

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.

Capital: Thimphu
Population: 780,000
Area: 38,394 km²
Currency: Ngultrum (BTN)
Continent: Asia
Region: South Asia (SAARC)
Economic area: SAARC / SAFTA
Religions: Buddhism
Access to the sea: Landlocked

Transport modes Road · Air

Current situation: 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.
Seasonal conditions: Monsoon (June-September) with landslides and road closures; winter with snow and fog at high passes and in Paro.

Main cargo airports

Paro International AirportPBH
Paro International (PBH): Bhutan's only international airport. Belly cargo via Drukair warehouse; heavy freight goes overland to Kolkata.

Road corridors

Phuentsholing-Thimphu
Samdrup Jongkhar-Trashigang
Gelephu-Trongsa

Inland ports

Phuentsholing (mini dry port in planning)

Main trade lanes

Bhutan-India (road via Phuentsholing)
Bhutan-third countries via Kolkata/Haldia (transit)
Paro-Kolkata/Delhi/Bangkok (air cargo)

Customs and import

Customs authority Department of Revenue and Customs (DRC), Ministry of FinanceOfficial website ↗

Import customs system: Electronic clearance via RAMIS of the DRC; customs value on CIF basis, customs duty ad valorem. As of 2026.
Export customs 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.
Proofs of origin and trade agreements: India-Bhutan Trade and Transit Agreement: duty-free trade with rules of origin; also SAFTA preferences. As of 2026.
Restricted and prohibited goods: Prohibited including narcotics, weapons and ammunition, antiquities/religious cultural property; plastic bags prohibited; wildlife products (CITES) restricted.

Typical import documents

Commercial invoice
Packing list
Waybill
Certificate of origin
Import permit (if required)

Typical export documents

Commercial invoice
Packing list
Proof of origin
Export permit (if required)

Logistics conditions

Customs complexity: Medium
Customs delays: Medium
Dangerous goods relevance: Low
Pharma and cold chain relevance: Low to medium
E-commerce relevance: Low

Trade

Top import partners

India China Japan Singapore Thailand

Top export partners

India Bangladesh Nepal Hong Kong Japan

Top import goods

Machinery
Vehicles
Fuels
Metals

Top export goods

Electricity
Ferroalloys
Cement
Limestone

Typical cargo

Electricity
Ferroalloys
Cement
Limestone
Fuels
Machinery
Consumer goods

Logistics questions

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.

Full logistics profile on Freight Academy ↗