Dried fish are being imported in high quantities paying reduced duties through Krishnanagar customs, allegedly in collusion between traders and officials.

Traders have been underreporting quantities on invoices to avoid higher taxes.

Since importing dried fish incurs significant customs duties, some traders resort to illegal importation or falsifying bills, leading to massive revenue leakage.

Recent incidents highlight this issue.

On January 17, an Indian mini truck passed customs clearance and was found carrying 200 kilograms of dried fish more than than declared.

Krishnanagar police seized 205 kg of smuggled dried fish from the truck driven by Shiva Shankar Rai, 45, of Uttar Pradesh, India.

The customs bill showed 2,625 kg of dried fish, but police weighed 2,830 kg.

The truck was seized just 500 metres from the Krishnanagar customs office.

Seventeen days later, armed police intercepted a Mahindra pickup van at Ganbadiya Chowk, Maharajgunj municipality, along the Bahadurganj-Taulihawa road.

The vehicle bearing an Indian number plate was found with a low invoice and sent to the Revenue Investigation Office, Butwal.

On February 4, police discovered that the van, which had declared 2,350 kg of dried fish and received customs clearance for 2,446 kilograms, was smuggling an extra 96 kg. The bill was issued under New Tinau Suppliers, Butwal.

Phanindra Khatiwada, chief of the Krishnanagar Customs Office, downplayed the discrepancies, claiming that a 100–200 kg difference is "normal" due to weighing inconsistencies during loading.

He insisted that even with customs clearance, fines can be imposed if violations are found.

Krishnanagar is one of Nepal’s top 10 customs points.

The customs valuation for a kilogram of dried fish is IRs200, with a customs charge of Rs85 per kg.

Dried fish chopped into pieces is valued at IRs250 per kg, while dried prawns cost IRs450 per kg.

Importing prawns requires pre-approval from government agencies in Nepal and India and a lab test.

Due to high customs charges and cumbersome procedures, traders often smuggle dried fish and prawns. These items enter Krishnanagar from Lucknow and Gorakhpur in India and are mainly consumed in Nepal's Tarai and mid-hill regions.

Lekh Nath Bhattarai, information officer at the customs office, admitted that not all fish imports are weighed.

"We estimate the total by sampling 4-5 bags, which sometimes leads to errors," he explained.

In the first seven months of the current fiscal year, Krishnanagar customs recorded the import of 20 tonnes of dried fish worth Rs6.69 million, generating Rs1.74 million in revenue.

Fish imports are subject to a 10 percent customs duty and 13 percent VAT.

Seized dried fish is sent to the Revenue Investigation Office, Butwal, for further inquiry.

The office imposed fines of Rs100,300 for the truck seized on January 17 and Rs96,000 for the vehicle caught on February 4. Investigations are ongoing.

Krishnanagar customs has faced criticism for lax enforcement.

A notable incident occurred on January 10 when a 72-wheeled lorry, bearing plate number NL 1AH 5179, entered Nepal and caused the Binayi River bridge in Binayi Triveni Rural Municipality, Nawalparasi, to collapse under its excessive weight.

This disrupted local transportation for several days.

Following public outcry, the government fined Shivam Cement, which had hired the overloaded Indian truck, Rs8.6 million. The fine was paid to the road division.

Locals, like Hanuman Pandey, blame weak customs enforcement for such incidents, emphasising the need for stricter monitoring at Krishnanagar customs.

According to the Department of Customs, Nepal imported 152 tonnes of dried fish worth Rs49.35 million in the last fiscal year. Most of the dried fish are imported from India.