National
Stricter customs enforcement reduces cross-border movement
Drop in cross-border shopping lifts Nepali traders but draws complaints from residents over higher prices and tighter checks.Shankar Acharya, Parbat Portel, Madhav Dhungana, Rupa Gahatraj & Nabin Paudel
The government’s strict enforcement of customs duties on goods worth more than Rs100 brought from Indian markets has led to a sharp decline in cross-border shopping, leaving border towns unusually quiet while drawing mixed reactions from traders and local residents.
Security personnel, particularly the Armed Police Force (APF), have been using loudspeakers in border areas to inform the public that customs clearance is mandatory for goods exceeding the threshold. Customs officials and security agencies have stepped up checks at major crossings in recent weeks, significantly reducing the flow of people travelling to Indian markets for daily purchases.
The impact is visible across several border points. Sunauli, a major market on the Indian side bordering Rupandehi, has seen a steep drop in Nepali customers. The market, usually crowded with shoppers from different districts, has remained largely deserted over the past week.
Harihar Paudel, chief of the Bhairahawa Customs Office, said stricter monitoring was introduced to discourage people from repeatedly bringing in goods under the pretext of household use without paying duties.
“Compared to the past, the number of Nepali consumers visiting Indian markets has fallen significantly,” Paudel said. “The practice of bringing goods multiple times a day to avoid customs has largely stopped.”
He said the enforcement has helped control revenue leakage. While individuals bringing small quantities for personal use are not targeted, authorities are closely monitoring those importing goods for commercial purposes without proper clearance.
Indian traders in border towns say the effect has been immediate. An employee at a general store in Sunauli said the number of Nepali customers has dropped by around 75 percent. Similar trends are being reported in Panitanki, Jogbani and other markets frequented by Nepali shoppers.
Raghuveer Gupta, a trader in Panitanki, said business has declined sharply. “If the rules continue to be strictly enforced, our markets will suffer further. Nepali customers have already stopped coming,” he said.
Tapan Ghosh, another trader in the same area, also reported a fall in sales due to reduced cross-border movement.
On the Nepali side, however, some business groups see the development as positive. Prachin Kumar Thaiba, president of the Federation of Customs Agent Nepal, said the crackdown has discouraged informal trade and improved compliance.
“This level of enforcement is beneficial,” Thaiba said. “There is an increase in formal trade, and customs warehouses are beginning to see more activity.”
He, however, warned that while checks at major crossings have tightened, smuggling could shift to less monitored routes along the open border. He said businesses within Nepal that handle goods brought in without invoices must also be monitored.
Local consumers have expressed concern over rising prices of daily essentials in border towns such as Bhairahawa. Residents say goods that were previously bought at lower prices across the border are now more expensive in local markets.
Netra Prasad Acharya, president of the Siddhartha Chamber of Commerce and Industry, said the policy could strengthen domestic trade if properly implemented.
“If traders increase prices without justification, market monitoring must be strengthened,” Acharya said. “The public should not face unnecessary hardship, but commercial imports without customs clearance cannot be allowed.”
At the Pharenda Haat Bazaar, held twice a week on the Indian side near Siddharthanagar Municipality, the number of Nepali buyers has fallen sharply.
Superintendent of Police Nawaraj Bohara, chief of the APF’s 27th Battalion in Rupandehi, said enforcement has continued without major disputes.
“In some cases, practical considerations are applied,” Bohara said. “But the number of people travelling long distances for shopping has clearly declined.”
The trend is similar in eastern Nepal. Border crossings such as Panitanki, Naxalbari, Siliguri and Jogbani have seen fewer Nepali shoppers in recent weeks.
In Birgunj, one of the country’s busiest trade points, the situation is more mixed. While shopping in nearby Raxaul has declined, it has not stopped entirely. Some consumers continue to cross the border, often claiming they were unaware of the strict enforcement.
Disputes between security personnel and consumers have become more frequent, with some residents demanding the same flexibility that existed earlier.
Madhav Rajpal, senior vice president of the Birgunj Chamber of Commerce and Industry, said the policy could support domestic markets but only if larger smuggling networks are controlled.
“Enforcement at the border alone is not enough,” Rajpal said. “Organised smuggling across the open border must also be addressed.”
He said while ordinary consumers and small carriers face restrictions, organised smuggling of goods such as clothing continues, often at night.
Rajpal suggested that the government identify commonly smuggled items and create a system for legal imports by aligning customs duties and Value Added Tax with India’s Goods and Services Tax.
Local residents, meanwhile, have criticised the strict enforcement, saying it has added to their financial burden at a time of rising prices.
A housewife from Mechinagar said the crackdown has made it difficult to manage household expenses. “We used to buy goods at slightly lower prices across the border. Now even that option is gone,” she said. “Even basic items are being checked strictly.”
Residents in border areas say they have long depended on Indian markets for daily necessities due to proximity and lower prices.
Munimlal Gupta of Palhinandan Rural Municipality said security personnel are now stopping people carrying even small quantities of goods such as soap, sugar and tea.
“We are being asked to pay customs even for household items,” Gupta said. “For us, crossing the border to buy essentials is a necessity.”
Authorities maintain that the measures are necessary to curb misuse of the open border. Officials say some individuals were found bringing goods multiple times a day for resale while claiming they were for personal use.
Dil Kumar Tamang, chief district officer of Banke, said strict checks have been introduced at the Jamunaha crossing to control such practices.
“The rule is not new, but its implementation has been strengthened,” Tamang said. “Goods can still be brought in, but customs duties must be paid if they exceed the limit.”
He said security agencies have increased patrols and are seizing goods brought in without proper clearance.
Local representatives have urged the government to ease the process for genuine household goods and items needed for social and religious functions.
Member of Parliament Bikram Khanal said enforcement should not affect ordinary social practices.
“People-to-people relations between Nepal and India are close,” Khanal said. “Simple exchanges during visits should not be discouraged, but those engaged in repeated smuggling must be dealt with under the law.”
Security officials say they are implementing the policy as directed by the central government. SP Govinda Khati of the APF’s 26th Battalion in Nawalparasi said personnel are acting in line with existing laws and instructions.
Officials at the Birgunj Customs Office said the policy may not immediately increase revenue but will have a long-term impact by strengthening formal trade and promoting domestic markets.
They said awareness among consumers about legal imports and support for local products has started to improve.
Despite the stricter enforcement, concerns remain that unless organised smuggling across the 1,700-kilometre open border is effectively controlled, the policy’s broader objectives may not be fully achieved.




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