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Nepal's NPR 100 Customs Rule on India Border Goods Sparks Local Backlash

The Nepal government's recent enforcement of a customs duty on goods valued above NPR 100 purchased from bordering Indian towns has drawn strong criticism from local stakeholders and civil society. The Nepal-India Open Border Interaction Group argues the rule imposes undue hardship on low-income border households and undermines centuries-old cross-border ties, calling for its immediate repeal for household items. Customs official Kishor Bartaula states the primary goal is to curb smuggling, where small, frequent purchases by individuals are aggregated for duty-free resale, rather than to generate significant revenue. The group has proposed alternative measures, including duty-free religious travel allowances and better local markets, to ease the burden and strengthen people-to-people connections.

Key Points: Nepal's New Border Customs Duty Draws Criticism from Locals

  • New customs duty on goods over NPR 100 from India
  • Rule enforcement sparks backlash in border areas
  • Aim is to control smuggling, not boost revenue
  • Civil society demands repeal for household goods
2 min read

Nepal govt's move to control purchases from bordering Indian towns draws flak

Nepal enforces customs duty on goods over NPR 100 from Indian border towns, facing backlash for hardship on low-income households and cross-border ties.

"Smugglers use ordinary people to bring goods from Indian markets... without paying duty. - Kishor Bartaula"

Kathmandu, April 18

The Nepal government's decision to levy customs duty on goods valued above NPR 100 brought from bordering Indian towns has drawn criticism from stakeholders in Nepal's border areas, where nearby Indian markets have long served as a source of affordable goods.

The government has strictly enforced the rule requiring customs duties on goods exceeding NPR 100 over the past few days. Although the provision was introduced several years ago, it had not been implemented due to practical difficulties faced by residents of border regions. The newly elected government's decision to enforce the rule has now sparked backlash from local stakeholders.

The Nepal-India Open Border Interaction Group, a civil society organisation, on Saturday urged the government to immediately revise its customs policy, warning that the current provisions are placing undue hardship on people living in border areas.

In a statement issued on Saturday, the group highlighted the centuries-old social, cultural, and economic ties between Nepal and India, calling on authorities to adopt practical and people-friendly measures to ease cross-border movement and strengthen grassroots relations.

A key demand put forward by the group is the immediate repeal of the provision requiring customs duties on goods exceeding NPR 100 brought through border points. It argued that the rule disproportionately affects low-income households in border regions and is impractical to enforce. Instead, the group called for zero customs duty on goods meant for household use.

Additionally, the group called for the establishment of well-managed and affordable markets in border areas to improve access to essential goods. It also proposed introducing special customs-free facilities for religious and cultural visits, allowing devotees traveling to border towns and major religious sites in both countries to carry goods duty-free for up to 48 hours. The group said this would promote religious tourism and deepen people-to-people ties.

Department of Customs Director Kishor Bartaula told IANS that the rule was enforced to control smuggling. "Smugglers use ordinary people to bring goods from Indian markets in small quantities multiple times a day without paying duty, and then collect them in large volumes for sale," he said. "Otherwise, charging duty on goods priced over NPR 100 does not contribute significantly to government revenue."

He added that stricter enforcement of the rule is also expected to benefit traders in Nepal's border towns.

- IANS

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Reader Comments

P
Priya S
While I understand the need to control smuggling, the method is wrong. You can't punish lakhs of ordinary families for the actions of a few smugglers. The proposal for duty-free household goods and special passes for religious visits makes much more sense. Our cultures are too intertwined for such harsh barriers.
S
Suresh O
The customs director himself admits this won't bring much revenue. So what's the real purpose? It feels like a move that will create unnecessary friction. We share an open border that is unique in the world. Such policies should be made with more consultation from people on both sides.
A
Anjali F
As an Indian living in a border state, I see both sides. Our markets in towns like Raxaul and Sunauli thrive because of our Nepali brothers and sisters. If they stop coming, our small businesses will suffer too. It's a symbiotic relationship. Hope the authorities find a balanced solution soon.
D
David E
Observing from outside, the civil society group's proposals seem very practical. Establishing better local markets and facilitating cultural exchange is the way forward, not taxing petty purchases. This kind of people-to-people connection is precious and should be nurtured.
K
Kavya N
Respectfully, I think the Indian government should also look at this carefully. Our trade and border policies with Nepal need to be supportive. Maybe we can work together on better monitoring to stop smuggling without burdening common folk. A little sensitivity goes a long way in neighbourhood relations.

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