Government Eases MRP Labeling for Imported Goods Amidst Business Concerns

Kathmandu. The strong dissatisfaction among industrialists and traders that had arisen with the government's implementation of the mandatory maximum retail price MRP label on goods imported from abroad and produced domestically has temporarily subsided. 

Now, importers will not have to affix the maximum retail price at the customs point immediately. The Customs Department has facilitated the customs clearance process for imported goods, allowing clearance upon self-declaration of MRP. 

Discussions were held between the Ministry of Finance, Ministry of Industry, Commerce and Supply, and the Department of Commerce to ease the clearance process that was stalled at various customs offices due to the MRP dispute. Following the discussions, the Customs Department's Director General, Shyam Prasad Bhandari, informed that arrangements have been made for goods to be cleared after self-declaration. According to him, the Customs Department has already directed all customs offices across the country to implement MRP self-declaration. 

He mentioned that some differences in MRP could potentially be addressed through the budget. According to Director General Bhandari, industrialists and traders must now compulsorily affix the MRP label before selling and distributing goods in the market. The current system at the customs point requires goods to be cleared only after the importer's name, company details, stamp, and signature are provided along with a commitment letter stating the item's name, brand, model, quantity, purchase price, and declared MRP. 

There had been a long-standing conflict between businesses and the government after the government implemented MRP. Businesses are not in favor of implementing MRP, while the government has been issuing directives to bring goods only after affixing MRP at the customs point. 

Nepal Chamber of Commerce Chairman, Kamlesh Agarwal, states that it is not feasible to bring goods with MRP labels affixed in a country like Nepal. According to him, the implementation of MRP is challenging due to the lack of infrastructure in Nepal.

The legal provision for MRP is not new. After the Consumer Protection Act came into effect in 2075 BS, the government had particularly tightened MRP enforcement. As per sub-section 3 of section 6 of the Consumer Protection Act, 2075 BS, the producer must affix a label in Nepali or English in a way that is understandable to the general public on the goods they produce, or the importer must affix it on the goods to be sold and distributed. 

The Act mandates that the label must include details such as the producer/importer's name, address, mixture of ingredients in the product, quantity, weight, quality, production date, maximum retail price, batch number, and expiry date. The current government's strict enforcement of this provision had created tension among industrialists and traders. However, for now, businesses can clear their goods after MRP self-declaration.