Nepal New Customs Tax Rule: Nepal has imposed stricter customs duties on Indian goods. Under this, any purchase from India exceeding ₹100 will now require customs duty.

Nepal's new customs tax rules on the Bihar border

Nepal-Bihar Border Markets: India's neighbouring country, Nepal, shares a 378-kilometer-long open border with Bihar. Business in approximately 50 rural markets along this border has been severely impacted during the ongoing wedding season . Nepal has imposed strict customs duties on Indian goods.

According to an order issued by Nepal's new government, any purchase from India exceeding 100 rupees will now require customs duty. While previously exempt from this practice for small purchases, the new rules now mandate customs duty.

Shock to both traders and buyers

For decades, residents of Nepal's border areas have been visiting Bihar's rural markets, both large and small, daily to purchase basic necessities. From local shops, they purchase everything from cakes and biscuits to ready-made clothing, cosmetics, vegetables, spices, fruits, milk, medicines, cement, and electrical appliances.

Now, since the new rules require customs clearance, both buyers and merchants are worried. Previously, people could cross the border and take goods worth thousands of rupees without paying taxes, but now they will have to pay customs clearance. This can range from 5-30 percent of the purchased goods' value.  

Traders said the new rule has affected buyers in six districts of the Madhesh region, adding that it has put pressure on both the livelihoods of local people in Bihar and the budgets of families in Nepal.

First, it is UP, and now it is Bihar's turn.

Nepal's National Security Force announced a rule via loudspeakers in border areas, stating that no exemptions will be granted to civilians, government employees, or NGO workers. Under this order, customs duty will be payable on Indian goods valued at over 100 rupees.

Customs officials said that stricter checks were previously instituted at the Uttar Pradesh border, where even small household items are scrutinized at Nepal customs checkpoints. Now, this rule is being strictly enforced at the Bihar border as well.