Nepal Supreme Court Halts Low-Value Customs Duty on India-Sourced Goods

Overview

• The Supreme Court issued an interim order that pauses collection of customs on India-bought goods priced over NPR 100.
• A joint bench of Justices Hari Prasad Phuyal and Tek Prasad Dhungana told the Prime Minister’s Office, Council of Ministers and Finance Ministry to stop enforcing the rule until a final verdict.
• The order responds to a writ by advocates Amitesh Pandit, Akash Mahato, Suyogee Singh and Prashant Bikram Shah, who say the policy clashes with exemption provisions in the Customs Act.
• The Finance Ministry under Prime Minister Balendra “Balen” Shah had mandated duty above NPR 100, and enforcement ramped up through customs, Nepal Police, the Armed Police Force and joint monitoring teams.
• Border residents in the Terai-Madhes who often buy daily goods in nearby Indian markets reported long queues and bag searches, and the court’s stay brings back the previous system while the case proceeds.