KATHMANDU, June 4: The government has raised the customs exemption threshold for goods purchased by cross-border travelers via land routes, increasing the limit fivefold to Rs 500 from the earlier Rs 100. The move comes after sustained criticism that the narrow ceiling unfairly burdened low-income families living along the Nepal–India border.
The Ministry of Finance (MoF) published the revised provision in the Nepal Gazette, stating that travelers carrying personal items worth up to Rs 500 will now be exempt from customs duty, provided they can justify the purchases. Goods exceeding this limit or imported for commercial purposes will continue to attract duty under existing laws.
Private sector demands govt to fix quality standard of imported...
The earlier Rs 100 restriction, introduced by the Balen Shah-led government, was intended to curb cross-border smuggling and encourage consumption of domestic products. However, the measure drew sharp criticism for disproportionately affecting households that rely on cross-border shopping to offset rising domestic prices. Local residents said the rule had made everyday essentials more expensive, while traders in Nepal welcomed the policy for protecting local businesses.
Cross-border shopping has long been a common practice, particularly for low- and middle-income families seeking cheaper goods in India. Security personnel at border points had been strictly enforcing the Rs 100 limit, often leading to disputes and dissatisfaction among travelers. The new Rs 500 threshold is expected to ease tensions and provide some relief to families struggling with inflation.
The Gazette notice clarified that land route travelers are not entitled to the same duty-free facilities as air travelers. Returnee migrant workers arriving by air continue to enjoy exemptions on two mobile phones and televisions up to 32 inches, while Nepalis studying in India are allowed to bring one tablet or computer for personal use without duty.
This is not the first time the government has attempted to impose strict limits on cross-border purchases. A similar Rs 100 rule was introduced in 2011 but proved difficult to enforce in practice. Observers say the latest revision reflects the government’s attempt to balance revenue collection with public concerns, as it struggles to generate adequate income amid rising expenditure pressures.
