Viral Indonesian Biscuit 'Malkist' Flooding Nepali Market Illegally, Raising Concerns Over Tax Evasion and Consumer Safety

Kathmandu. Recently, a biscuit has become quite viral in the Nepali market. The 'Malkist' brand biscuit, produced in Indonesia, can now be found everywhere in the market. It has been found entering Nepal without any official authorization.

Along with the discussion about the biscuit's taste, demand has also increased significantly, but traders are selling the biscuit secretly because it is being imported illegally. A large difference in the price of this biscuit is also visible in the market. The biscuit, which has an MRP of 45 Indian Rupees (72 Nepali Rupees) mentioned on it, is being sold in Nepal for up to 150 Rupees. The unauthorized import means that on one hand, the state is losing revenue, and on the other hand, the risk of consumers being cheated and forced to consume substandard goods is increasing. 

However, regulatory bodies appear silent despite being aware. The Department of Commerce, Supply and Consumer Protection has also stated that the biscuit is being imported unauthorizedly. The department stated that it conducted monitoring after receiving a complaint that the biscuit had entered Nepal without authorization. But, an official from the department said they could not find out who is importing it. 

The official from the department said, 'This biscuit was made by Indonesia for India. But it appears to have entered Nepal through smuggling. There is suspicion of customs evasion in this import. Controlling smuggling is the work under Customs or the Ministry of Home Affairs. After receiving information that this biscuit arrived through smuggling, the department conducted micro-monitoring. The biscuit seems to arrive in small quantities at shops and gets sold quickly. But we could not identify the importer.'
 
The Department of Food Technology and Quality Control has clarified that no permission has been issued by the department for the import of this biscuit so far. According to the Director General Matina Joshi Vaidya, although this biscuit is seen everywhere in the market, there is no record of it being officially imported. 

'When I inquired at our import branch, it seems no one has taken permission for the import of this biscuit,' said Director General Vaidya, 'Entering without permission means it is coming through illegal channels or smuggling.'

Questions on the Role of Customs and Security Agencies

The large quantity of this biscuit available in the market also raises questions about the effectiveness of customs and security agencies. Director General Vaidya emphasized that bodies like Customs, Armed Police Force, and the Department of Commerce need to pay attention. According to her, the initial assumption is that this biscuit is entering through organized revenue evasion due to the open border.
 
Although there has been no official complaint of anyone falling ill after consuming the biscuit so far, the department has kept its employees on 'alert'. 'We have increased surveillance after receiving information that this biscuit is being sold in every nook and cranny,' said Vaidya, 'If anyone requests quality testing or if it seems suspicious, we will proceed with its lab test process.'

She also urged consumers to be cautious about consuming food items that do not come through official channels, as it could pose health risks. Furthermore, Director General Vaidya stated that the Inland Revenue Department and other concerned bodies should conduct further investigation into the aspect of revenue evasion and illegal trade.

What does the Head of Customs Say?
 
In the context of the biscuit entering Nepal through smuggling without completing official customs procedures, Director General of the Customs Department Shyam Prasad Bhandari stated that there is no record of the biscuit being formally imported and that the department will begin a detailed investigation into the matter.

In a conversation with RatoPati, Director General Bhandari indicated that the biscuit, said to be produced in Indonesia and entering Nepal via India, is not officially registered in the customs 'ASCUDA' system.

Director General Bhandari stated that it would be more appropriate to call this 'smuggling' rather than 'illegal import'. 'When it comes through formal channels, it is called import, but if someone brings it secretly or under the guise of another item, that is smuggling,' he said. He acknowledged the challenge of such goods entering due to the open border.

Director General Bhandari warned that goods being sold secretly in shops without documents and official bills will be confiscated. He said, 'If any shop is selling goods from a third country, it must show the official source and the bill showing customs duty paid. If the bill cannot be shown, that item is deemed illegal, and we will immediately seize it and bring it under the purview of legal action.'

Director General Bhandari previously committed that monitoring at markets and border points would now be increased in coordination among the three agencies: the Department of Food Technology and Quality Control, and the Department of Commerce.