New Delhi: A major controversy has erupted in Nepal regarding the customs duties levied on goods imported from India. According to a report by the Nepali news site The Republica, following a new directive issued by the Balen administration, traders have halted the large-scale import of goods over the past four days. The direct impact of this is clearly visible at the Nepal-India border, where thousands of containers remain stranded, resulting in long queues of trucks. This situation has raised fears of potential shortages and price hikes in the Nepali market.
Specifically, the Nepal government implemented a new regulation on April 28, stipulating that customs duty would be imposed on all goods imported from India with a value exceeding 100 Nepali Rupees. An MRP (Maximum Retail Price) is to be fixed for every item, and taxes will be levied accordingly. It is now mandatory to affix the MRP on every imported item prior to entry; however, traders are labelling this requirement as impractical.
What is the New Rule in Nepal, and what is its Impact?
The newly formed Balen administration implemented this regulation on April 28, mandating that all imported finished goods must bear an MRP label before undergoing customs clearance. Customs duties will be levied on any item priced at over 100 Nepali Rupees. On April 13, Nepal’s Department of Commerce, Supplies, and Consumer Protection issued a public notice granting importers a 15-day grace period. According to The Republica, in response to this directive, traders have halted the clearance of goods that do not comply with this new regulation. According to the Customs Department, long queues of trucks laden with goods from India have formed at major border crossings.
This Regulation is Impractical, say Traders
Traders argue that this regulation is impractical, as a single shipment often contains thousands of individual items, making it difficult to affix a separate label to each one. They further contend that unpacking and repacking large-scale shipments at the border is not a secure practice. Importers have also warned that the process of repacking and labelling at the border will inevitably drive up costs. Furthermore, delays resulting from this process could lead to the imposition of demurrage and detention charges.
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