Nepal SC restrains govt from collecting customs on goods above NRs 100 from India

A joint bench of Justices Hari Prasad Phuyal and Tek Prasad Dhungana directed the Office of the Prime Minister of Nepal and Council of Ministers of Nepal, the Ministry of Finance of Nepal, and concerned authorities not to enforce the disputed provision until further notice.

The order was issued in response to a writ petition filed by advocates Amitesh Pandit, Akash Mahato, Suyogee Singh, and Prashant Bikram Shah, challenging the Finance Ministry's decision.

Petitioners argued that the policy of imposing customs duty on goods exceeding NRS 100 is inconsistent with provisions of the Customs Act, 2081, particularly those relating to exemptions.

Earlier, the Ministry of Finance of the newly elected government under Prime Minister Balendra "Balen" Shah had made customs duty mandatory on goods above NRS 100, a move that led to stricter checks at Nepal-India border points in the Terai-Madhesh region and triggered public criticism.

With the interim order, the government is barred from collecting such duties until the final verdict on the petition is delivered.

Following the imposition of the mandatory provision for collecting customs, the Armed Police Force (APF) had started urging people to mandatorily pay customs duty on goods worth more than NRS 100 brought from India.

Targeting ordinary citizens who previously enjoyed informal customs exemptions for small purchases and household items, the government began strictly enforcing a rule requiring mandatory customs duties on any goods valued over NRS 100.

Secondary customs points had been witnessing widespread crackdowns in the name of controlling customs evasion.

Following orders from the centre, joint monitoring teams comprising the Department of Customs, the Department of Revenue Investigation, District Administration Offices, Nepal Police, and the Armed Police Force had increased their activity, leading to stricter controls on all goods entering the country.

This unilateral and strict policy created significant problems in the border districts of Madhesh, affecting the daily lives of residents.

The situation at border points from east to west was thrown into disarray, making it tense and abnormal. The checks conducted by the Armed Police Force on Nepalis returning from weekly markets forced people to stand in long queues, with their bags and packages opened and inspected thoroughly. (ANI)