KATHMANDU, May 7: The government has formally reopened the door for duty-free shops at Tribhuvan International Airport (TIA), ending nearly two decades of closure. The decision comes with the publication of the Customs Regulations 2026 in the Nepal Gazette, which lays out clear legal and procedural frameworks for licensing and operating such outlets.
The regulation marks a significant policy shift, as duty-free shops had been absent from Nepal’s only international airport since 2008. That year, then Finance Minister Baburam Bhattarai ordered the closure of the decades-old shop operated by National Trading Ltd, citing heavy financial losses. The enterprise was later merged into the Food Management and Trading Company, leaving travelers without access to duty-free facilities ever since.
Under the new rules, licenses to operate duty-free shops will be awarded through open competition rather than direct government allocation. Authorities must issue a 21-day public notice inviting bids, and applicants will be selected based on the highest revenue offer to the state alongside meeting technical qualifications. Eligible bidders must hold an Export Import Code Number (Exim Code), have no criminal convictions, and be free of tax or duty arrears.
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The shops will cater primarily to foreign tourists and Nepali citizens making purchases in foreign currency. Permitted items include packaged food products, chocolates, sweets, chewing gum, biscuits, wafers, cosmetics, toiletries, and fragrances. Alcoholic beverages, however, remain excluded from the list of goods allowed for sale.
Duty-free operators will be required to deposit foreign currency receipts from sales into banks. Imported goods must be sold within one year, with a possible six-month extension if necessary. Licenses will be valid for five years, with renewal applications to be filed six months before expiry.
Previously, duty-free operations were loosely governed under provisions related to bonded warehouses, creating legal ambiguities and limiting competition. Shops were allowed to import goods by depositing a bank guarantee equivalent to customs duties, which was released only after the goods were sold. The new regulation provides a more structured system, aiming to ensure transparency, accountability, and efficiency in operations.
Officials believe the revival of duty-free shops will enhance the travel experience at TIA, align Nepal with international airport standards, and generate additional revenue for the government. The move is also expected to support tourism by offering travelers access to globally popular products at competitive prices.
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