Days after Nepal tightened rules imposing customs duty on cross-border travellers from India, the Ministry of External Affairs (MEA) took note of the development and said the customs duty is the outcome of a “pre-existing provision” and that it will not affect families carrying “household goods”.
The statement from MEA Spokesperson Randhir Jaiswal came after protests began in border towns of Nepal about the customs duty that travellers have found to be impractical. In mid-April, the new government of Nepal, led by Prime Minister Balendra Shah, implemented an existing rule that makes it mandatory for travellers carrying goods worth more than one hundred Nepali rupee (NPR) to pay customs duty on the goods.
“We understand that Government of Nepal has taken this step primarily with the intent to curb informal trade and smuggling. We have also seen a statement by a senior official from Nepal that civilians carrying household goods for personal use will not be obstructed,” said Mr. Jaiswal, who further elaborated that the customs duty was being imposed on the basis of a “pre-existing provision”.
Mr. Jaiswal said, “We remain engaged on the developments.” Imposition of customs duty is a protectionist move aimed at helping small traders who operate in Nepalese border towns like Birganj, where Nepali traders often complain that people do not buy goods from them as visitors generally enter Nepal after buying goods from the Indian side.
Ever since the new Nepali government implemented the rule, there have been complaints from people crossing from India, with viral videos showing many angry exchanges between common people and border guards and customs officials. The customs duty has drawn criticism from the Nepali Congress (NC) that has described it as a “blow to social justice and national unity”. The NC said the customs duty was an attack on farmers and labourers.
Protests have been brewing ever since border guards and customs officials started demanding customs duty citing the order, and the situation has drawn criticism even from within the ranks of the Rashtriya Swatantra Party of Prime Minister Shah.
