Understanding Informal Cross-Border Trade - Legal and Economic Challenges in Siliguri

22-05-2026

An empirical research study on “Informal Cross Border Trade and its Legal Implications: An Empirical Study of Small Traders and the Legal and Practical Challenges Faced by the Tea Exporters in Siliguri” was conducted by the students of semester X 'B' under the guidance of Dr. Rima Ghosh (Assistant professor of law) . The study focuses on understanding the realities of informal cross-border trade in the Siliguri region and its impact on small traders and tea exporters. Siliguri, being an important commercial gateway connecting India with neighbouring countries such as Nepal, Bhutan, and Bangladesh, has emerged as a significant centre for cross-border trade activities.

Alongside formal trade practices, informal trade has also developed due to geographical proximity, economic dependency, and procedural complexities in formal trading systems.

The empirical survey was conducted among small traders and tea exporters operating in and around Siliguri. Primary data were collected through questionnaires and personal interactions to understand the legal, economic, and practical challenges faced by them in their day-to-day trade activities.

Due to the sensitive and legally complex nature of informal trade, many traders were hesitant to disclose detailed information. This itself became an important observation of the study, indicating the hidden and unorganised nature of informal cross-border trade in the region.

Through the survey, it was further observed that a large number of traders face procedural barriers such as excessive documentation, delays in customs clearance, lack of awareness regarding trade regulations, and financial constraints. Many respondents stated that complicated legal formalities and administrative inefficiency often discourage small traders from participating fully in formal trade mechanisms. Tea exporters also highlighted issues relating to fluctuating market conditions, transportation difficulties, taxation concerns, and inadequate infrastructural support.

The survey further revealed that informal trade is often driven by economic necessity rather than deliberate intention to violate the law. Small traders rely on informal networks to reduce costs and avoid procedural delays. However, this exposes them to legal risks, financial insecurity, and absence of institutional protection. It was also learned that many traders possess limited knowledge regarding international trade laws, customs regulations, and export compliance requirements. 

Another important finding of the survey is that despite the economic importance of cross-border trade in Siliguri, there exists a gap between policy frameworks and ground-level realities. Traders expressed the need for simplified legal procedures, better governmental support, awareness programmes, and improved infrastructure to facilitate lawful and efficient trade practices.

Overall, the empirical survey provided valuable insights into the socio-economic conditions of small traders and tea exporters and highlighted the practical difficulties involved in balancing trade activities with legal compliance. The study demonstrates that effective implementation of trade regulations requires not only strict legal mechanisms but also supportive administrative policies that address the genuine concerns of traders at the grassroots level.

Students involved:
1. Hina Shah ( BA.LLB (H) )
2. Samadrita Dutta ( BA.LLB(H) )
3. Istrela Tamang (BA.LLB (H) )
4. Farjana Akhtari ( BA.LLB ( H) )
5. Armina Parveen (BA.LLB(H) )