Nepal Eases MRP Rules for Imports Amid Trade Concerns

Kathmandu. The government has become flexible on the Maximum Retail Price (MRP) issue following problems in trade and customs clearance due to the rule mandating the disclosure of MRP for all imported goods. The Department of Customs issued a new directive on Thursday urging facilitation of the rule. Under the new arrangement, importers can now self-declare the MRP of goods reaching the customs point.

The Department of Customs, under the Ministry of Finance, has written to the Ministry of Industry, Commerce and Supplies, stating that the MRP rule will be relaxed for industrial raw materials and perishable goods for the time being. On April 12, the Department of Commerce, Supply and Consumer Protection had issued a notice making it mandatory for importers to disclose the MRP for all goods imported from abroad and distributed for sale in Nepal.

However, the Department of Customs has indicated that the uniform application of this rule to all types of goods has created serious problems in customs clearance and trade facilitation for industrial goods (such as raw materials, machinery, tools) and perishable goods (such as fruits, vegetables). The Department of Customs stated that further clarity on the MRP issue can be brought through the upcoming fiscal act, in the context of the preparation of the policy and program and budget for the upcoming fiscal year 2083/84.

For now, to resolve the existing problems and facilitate trade, the department has urged for facilitation. The Department of Customs will allow customs clearance by obtaining a self-declaration from the importer stating that they will declare the MRP at the customs point for the goods currently being declared, and will label the goods before sending them to the market after import, and then sell and distribute them.

The letter sent by the department has requested the Ministry of Industry to take necessary steps for trade facilitation.