This pass links the Vyas (locally called "Byans") and Chaudans valleys of India with the Tibet Autonomous Region of China, and forms the last territorial point in Indian territory. The Kailash Mansarovar Yatra, a Hindu pilgrimage to Mount Kailash and Lake Mansarovar, traverses this pass. Lipulekh pass is connected to Chang Lobochahela, near the old trading town of Purang (Taklakot), in Tibet.
The pass is first Indian border post to be opened for trade with China in 1992. This was followed by the opening of Shipki La, Himachal Pradesh in 1994 and Nathu La, Sikkim in 2006. Presently, Lipulekh is open for cross-border trade every year from June through September.
The items cleared for export from India include gur, misri, tobacco, spices, pulse, fafar flour, coffee, vegetable oil, ghee and various miscellaneous consumable items, whereas the main imports into India include sheep wool, passam, sheep, goats, borax, yak tails, chhirbi (butter) and raw silk.