Border Customs Tightening Boosts Nepali Market Activity

Dhangadhi. Following strict customs enforcement on goods imported from India at the border, commercial activities on the Nepali side of the Gaufanta border point have seen a recent surge. Previously, local citizens would go to markets across the border for general shopping and even significant purchases. However, with the Nepali government imposing strict customs regulations on goods exceeding Rs 100, shopping has now increased in Nepali markets. Nepali traders have expressed happiness over the increased activity and business growth in Nepali markets. They have reported that commercial activities have started to increase in markets that have been deserted for years. Vijayraj Pant, a stationery trader in Dhangadhi, states that business activities have increased somewhat compared to before. He said, "Previously, Nepali consumers would go across the border even to buy two kilos of sugar. Now, by buying sugar and other goods from Nepali markets instead of going to the markets across the border, there has been a positive impact." According to him, although activity has increased in recent days compared to before, the expected improvement has not yet been fully realized. Dhangadhi consumer Krishnabahadur Chaudhary complained of facing hardship at the border while returning from Banagaun market across the border, where he had gone to buy ready-made clothes for his daughter's wedding preparations. He complained, "I had a dispute with the police officers at the border and was forced to pay customs duty on the goods I brought." He stated that the customs office charged him Rs 7,945 in tax for bringing ready-made clothes worth Rs 12,400 for his daughter's wedding from Banagaun market across the border. However, his experience is that the pressure from the police at the border is more than just persuasion. The work of the customs office has also been somewhat affected by the mandatory MRP (Maximum Retail Price) label on goods imported from abroad. Ananta Timilsena, Chief Customs Officer at Kailali Customs Office, said that due to the government's decision to provide a 50% discount on petroleum products, revenue collection from petroleum alone has been affected by 30% this month compared to March. He said, "Revenue is also being affected due to problems in the clearance of MRP (Maximum Retail Price)." He explained that the strict enforcement of customs duty on goods exceeding one hundred rupees has prevented many Nepali consumers from going to markets across the border for shopping. He said, "After the strict enforcement of customs duty collection, those going across the border are now almost zero; most Nepali consumers are in a 'wait and see' situation. But for now, they are shopping in Nepali markets." He stated that the old system of levying customs duty on goods exceeding one hundred rupees brought by passengers is now being strictly enforced. The customs office levies customs duty of up to 39% on incoming goods. Some Nepali traders have reacted positively to the strict enforcement of customs duty on goods exceeding Rs 1 to control revenue leakage. They believe that the offices and employees stationed at the border should be further strengthened and activated to control leakage. It was common for Nepali consumers in the border areas to go across the border to buy goods. However, now, with the strict customs enforcement, the activity of bringing goods by bicycle has drastically decreased. Tejnarayan Chaudhary of Pahalmanpur, Kailali, fears that the smuggling of goods through illegal routes will increase due to the strictness at the border. He mentioned that consumers are occasionally using such routes. He said, "A packet of washing powder made in India now costs up to Rs 150 in the Nepali market; previously, this powder used to cost Rs 100. It is suspected that this item may have been smuggled through illegal routes." The activity in Banagaun market, a border market in India, has decreased due to strict customs enforcement. Approximately 90% of the consumers shopping in that market, which operates targeting Nepali consumers, were Nepali until recently. Transactions in Nepali currency were also easily done in the market. While the daily collection of customs duty on goods is good, local citizens suggest that the customs duty on goods brought for weddings, religious ceremonies, and some household purposes should be made more practical. "Customs duty should be strictly collected on goods brought for commercial purposes," said Tejnarayan Chaudhary, "but collecting customs duty on goods brought for weddings, religious ceremonies, and household expenses is not practical, so it is justified to reconsider this. This will facilitate not only our trade on both sides but also other relationships and many other things."