Nepal Government Tightens Border Controls, Boosting Local Businesses

Rupandehi. Local industries and businesses have started to become dynamic after the Nepal government tightened controls at the border crossings in the past few days to curb the import of goods without customs duty from the bordering Indian market. Businessmen on the Nepali side have also expressed happiness over this.

Households bringing goods worth more than Rs 100 from India in the name of domestic use are now required to pay customs duty, leading Nepali traders and businessmen in the Sunauli border area to express happiness and state that business in this area has become more active. They claim that this will increase Nepal's revenue and also provide relief to local businessmen. Local citizens and others, who mostly did not patronize Nepali shops, are now attracted to the Nepali market because customs duty is mandatory for goods brought from across the border.

This has promoted domestic markets and automatically reduced the tendency to go to India for shopping, according to their experience. Businessmen also say that the past tendency of going to India for shopping, from small to large purchases, has been discouraged by this.

Although there are ample Nepali markets on this side of the border, there was not much activity. This was because local citizens went to the market on the other side, i.e., the Indian market, for shopping for goods, both small and large, which led to a decline in the state's customs and revenue.

However, the market on the Nepali side has become dynamic in the past few days. They argue that the policy of imposing customs duty on goods worth more than Rs 100 brought from across the border makes those goods expensive, leading to increased shopping in the Nepali market itself.

Sachin Rokkha, Chairman of the Chamber of Commerce, Rupandehi, said that the mandatory customs duty on goods worth more than Rs 100 is positive for industrialists and businessmen. "This is an issue we have been raising from the beginning," he said, "We must stop those who are constantly smuggling. Customs duty must be paid on goods worth more than Rs 100, and smuggling that occurs at night must also be controlled."

He stated that monitoring and strictness are needed for those who cross back and forth multiple times a day to bring goods in the name of domestic use. Chairman Rokkha demands that the import of goods illegally should be controlled. Some people who move back and forth are engaged in transporting goods from across the border. This not only reduces sales in the Nepali market but also decreases the customs revenue Nepal receives. Furthermore, it has made it difficult for small and large shopkeepers and businesses on the Nepali side to continue their operations for a long time.

Similarly, Vishnu Prasad Sharma, former president of the Siddharth Chamber of Commerce and Industry, Rupandehi, said that it is necessary to change the mentality of Nepali consumers who think goods are cheaper in India. He stated that some goods are cheaper in Nepal than in India. He welcomed the government's action. However, he said that goods coming in illegally must be controlled.

Thakur Kumar Shrestha, Chairman of the Federation of Nepalese Chambers of Commerce and Industry, Lumbini Province, said that tightening customs controls will increase revenue and also make the domestic market dynamic. He believes that when businesses flourish in the country, it contributes to the nation's economy. "It has been observed that people also go to India for shopping under the pretext of buying goods, and also to consume drugs; it certainly makes a difference when people do not go to the Indian market to buy goods," he said.

Chairman Thakur said that Nepali consumers go to the Indian market to shop not only from the border areas but also from hilly districts, so such a step by the government will promote local markets. "This rule existed before, and the government has now implemented it. Everyone must follow this rule, and citizens must cooperate with the government," he said.

Uddhav Dhungana, Customs Officer and Information Officer at the Bhairahawa Customs Office, Belhiya, Rupandehi, said that they are making people aware that goods worth more than Rs 100 require customs duty and are collecting customs accordingly. "This is an old rule, and we are telling those bringing goods from India across the border not to come again, and if they do, they must pay customs duty," he said.

He stated that goods brought in small quantities for their own homes by ordinary travelers are being dealt with practically. However, he also informed that customs duty is being levied on those who do not comply with the law. The current government has adopted a policy of Rs 100 customs duty at the border. Although it was initially inconvenient for locals who have been transporting goods for a long time, they say they are gradually getting used to it. This rule existed before, but due to lax customs enforcement, goods were being imported without customs duty. However, locals say that this is not the case now.