KATHMANDU, May 1: The government has once again stepped back from strictly enforcing the mandatory maximum retail price (MRP) rule on imported goods, after traders resisted the directive and halted customs clearance. In response, authorities revised the guidelines, permitting importers to declare the MRP themselves at customs.
Under this revised system, importers can clear goods by submitting a written commitment to label products with the declared MRP before they reach the market. The Department of Customs explained that strict enforcement has been particularly challenging for perishable items such as industrial raw materials, machinery, tools, fruits, and vegetables. To address these difficulties, the department formally notified the Ministry of Industry, Commerce and Supplies about the need for flexibility.
DoC urges traders to clearly display MRP on festival goods
Earlier this month, on April 14, the government had reintroduced the MRP requirement, marking the second attempt in a year to enforce the rule. The Department of Commerce, Supplies and Consumer Protection (DoCSCP) gave importers 15 days to comply. However, private sector representatives expressed strong dissatisfaction, refusing customs clearance for two consecutive days. Hari Prasad Gautam, president of the Birgunj Chamber of Commerce and Industry, criticized the government’s sudden move, saying the lack of consultation with traders created unnecessary disruption. He noted that importers were unable to pass goods through customs on Tuesday due to the abrupt enforcement.
The MRP rule itself is not new. Over the years, the government has repeatedly issued directives requiring manufacturers and importers to label goods with MRP, along with details such as the manufacturer’s name, batch number, and expiry date. Yet enforcement has consistently faltered due to weak monitoring. A 2012 notice in the Nepal Gazette made price tags mandatory for 32–33 essential items, including food products, milk, cement, and iron rods. Similarly, the Consumer Protection Act 2018 emphasizes MRP labeling as a way to ensure transparency in market transactions. Despite these legal provisions, implementation has remained inconsistent.
As a result, consumers continue to face inflated prices and questionable product quality, while traders benefit from the lack of oversight. Recently, the prices of essential goods have surged, with traders citing rising petroleum costs as justification. The DoCSCP maintains that effective enforcement of MRP rules is crucial to curb malpractice, stabilize prices, and bring greater transparency to the market.
