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🇳🇵 Nepal /Economy & Trade

Nine of 11 sub-customs offices under Birgunj Customs remain closed

From Kathmandu Post · (4m ago) English Critical tone

Summarized and contextualized by DistantNews.

TLDR

  • Nine of 11 sub-customs offices under Birgunj Customs remain closed, impacting Nepal's revenue collection.
  • The closures are attributed to a shortage of staff and a government policy to phase out smaller customs points.
  • This situation hinders Nepali consumers from legally importing goods and results in significant daily revenue loss for the government.

The Birgunj Customs Office is facing a significant operational challenge with nine out of eleven sub-customs offices remaining closed. This situation, primarily due to staff shortages and a strategic shift by the government to consolidate operations, is directly impacting Nepal's ability to collect customs duties on goods entering from India. While the government has implemented stricter rules for customs duty on goods exceeding Rs100, the lack of functional offices at key border points means that both the government and consumers are facing difficulties.

Many of these border towns have evolved into bustling markets where Nepalis frequently shop in India. The closure of sub-customs offices at these points means that even if importers wish to pay taxes, they are unable to do so. This not only leads to a substantial loss of daily revenue for the government but also inconveniences citizens. Residents in areas like Simraungadh have even staged protests, demanding the reopening of their local customs office, which has been shut since the COVID-19 pandemic.

Opening customs offices in every village actually increases smuggling. It also weakens the main customs office. Our policy is to operate only one or two sub-customs points and leave other border crossings under the supervision of the Armed Police Force.

— Krishna Prasad MainaliChief customs administrator of the Birgunj Customs Office, explaining the policy behind phasing out smaller customs points.

Krishna Prasad Mainali, chief customs administrator of the Birgunj Customs Office, explained that the current policy aims to gradually phase out smaller sub-customs points, arguing that numerous small offices can facilitate smuggling and weaken the main customs office. The focus, he stated, is on operating one or two main sub-customs points and enhancing supervision by the Armed Police Force at other crossings. He also highlighted the logistical challenges of maintaining smaller offices, which require not only staff but also essential services like computer systems, banking, and quarantine facilities.

It requires computer systems, banking facilities, and food and animal quarantine services, making it difficult to keep all small offices operational.

— Krishna Prasad MainaliChief customs administrator of the Birgunj Customs Office, detailing the operational requirements for sub-customs offices.
DistantNews Editorial

Originally published by Kathmandu Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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