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Nepal SC Halts Customs Duty on Goods Over Rs 100 from India

Nepal's Supreme Court issued an interim order restraining the government from collecting customs on goods above NRs 100 brought from India. The order was in response to a writ petition challenging the Finance Ministry's decision as inconsistent with the Customs Act. The policy had led to stricter border checks and public criticism in the Terai-Madhesh region. The government is now barred from collecting such duties until the final verdict.

Key Points: Nepal SC Halts Customs Duty on Goods Over Rs 100 from India

  • Nepal SC issues interim order against customs duty on goods over NRs 100 from India
  • Policy triggered stricter checks at Nepal-India border points
  • Petitioners argued inconsistency with Customs Act
  • Government barred from collecting duties until final verdict
2 min read

Nepal SC restrains govt from collecting customs on goods above NRs 100 from India

Nepal's Supreme Court issues interim order restraining government from collecting customs on goods above NRs 100 from India, responding to writ petition.

"The order was issued in response to a writ petition filed by advocates Amitesh Pandit, Akash Mahato, Suyogee Singh, and Prashant Bikram Shah - Court order"

Kathmandu, May 16

Nepal's Supreme Court on Saturday issued an interim order restraining the country's government from collecting customs on goods above NRS 100 brought across the border from India.

A joint bench of Justices Hari Prasad Phuyal and Tek Prasad Dhungana directed the Office of the Prime Minister of Nepal and Council of Ministers of Nepal, the Ministry of Finance of Nepal, and concerned authorities not to enforce the disputed provision until further notice.

The order was issued in response to a writ petition filed by advocates Amitesh Pandit, Akash Mahato, Suyogee Singh, and Prashant Bikram Shah, challenging the Finance Ministry's decision.

Petitioners argued that the policy of imposing customs duty on goods exceeding NRS 100 is inconsistent with provisions of the Customs Act, 2081, particularly those relating to exemptions.

Earlier, the Ministry of Finance of the newly elected government under Prime Minister Balendra "Balen" Shah had made customs duty mandatory on goods above NRS 100, a move that led to stricter checks at Nepal-India border points in the Terai-Madhesh region and triggered public criticism.

With the interim order, the government is barred from collecting such duties until the final verdict on the petition is delivered.

Following the imposition of the mandatory provision for collecting customs, the Armed Police Force (APF) had started urging people to mandatorily pay customs duty on goods worth more than NRS 100 brought from India.

Targeting ordinary citizens who previously enjoyed informal customs exemptions for small purchases and household items, the government began strictly enforcing a rule requiring mandatory customs duties on any goods valued over NRS 100.

Secondary customs points had been witnessing widespread crackdowns in the name of controlling customs evasion.

Following orders from the centre, joint monitoring teams comprising the Department of Customs, the Department of Revenue Investigation, District Administration Offices, Nepal Police, and the Armed Police Force had increased their activity, leading to stricter controls on all goods entering the country.

This unilateral and strict policy created significant problems in the border districts of Madhesh, affecting the daily lives of residents.

The situation at border points from east to west was thrown into disarray, making it tense and abnormal. The checks conducted by the Armed Police Force on Nepalis returning from weekly markets forced people to stand in long queues, with their bags and packages opened and inspected thoroughly.

- ANI

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Reader Comments

V
Varun X
As a Nepali living near the border in Bihar (India side), I see this every day. Our families go to each other's markets for everything from vegetables to stationery. This policy was creating artificial tension. The court did well to stop it. But why is Nepal targeting its own citizens for small purchases? Feels like politics.
S
Suresh O
I understand Nepal wants to protect its local businesses, but imposing duty on goods above just NRs 100 (around ₹60 Indian) is impractical! That's like taxing someone for buying a packet of biscuits. The enforcement with armed police at border checks must have been humiliating for ordinary people. Good judgment from SC.
A
Amitesh P
I'm one of the petitioners. This was fundamentally about protecting the rights of ordinary citizens from arbitrary executive action. The Customs Act itself provides exemptions for small personal goods, but the Finance Ministry ignored it. We hope this interim order leads to a permanent solution that respects cross-border livelihoods.
R
Ramesh W
From a broader perspective, this highlights how India-Nepal border relations are so deeply intertwined. The Terai-Madhesh region depends on cross-border trade for daily survival. Policymakers in Kathmandu should have consulted local communities before imposing such harsh rules. The court's intervention was necessary and timely.
R
Ravikumar N
I appreciate the judicial oversight, but I question: Why does Nepal need to tax such small items? This feels like revenue harvesting at the cost of border residents. The crackdown with multiple agencies - Customs, Police, APF - sounds excessive. The government should instead focus on improving local infrastructure and livelihood opportunities.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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