"The resumption of trade is a sign of closer ties between the two countries. It will be possible to begin a bus service between Gangtok and Lhasa sometime later," Chamling said.

Authorities on both sides were working to make sure facilities like the bank, telecommunication center and customs facility were ready for the surge in visitors.

At a dry run on Tuesday, everything went according to plan, except for one small hitch, said Subba. There are not enough parking spaces for the 150 vehicles expected at the ceremony.

Initially the trade though the route will be limited.

On the Indian side, trade permits initially will only be issued to residents of Sikkim. "The idea is to make sure that the economic benefits of the border trade reach the local population," said Sikkim Industries and Commerce Secretary Karma Gyatso.

And while trade through Nathu La will be duty-free, Indian exports are limited for now to an approved 29 commodities, mostly food items.

The Chinese traders are restricted to brining in 15 types of goods, including goat and sheep skins, wool and herbs.

Traders are already clamoring to have other goods added to the list.