Nepal Supreme Court Halts Enforcement of Controversial Customs Rule on Indian Goods
Nepal Supreme Court Halts Enforcement of Controversial Customs Rule on Indian Goods
New Delhi, May 17 : Nepal’s Supreme Court has temporarily stopped the implementation of a controversial government policy that required customs duty on goods worth more than NPR 100 brought into the country from India, following growing public criticism and legal challenges.
The interim order was issued by a joint bench of the apex court after petitions argued that the measure conflicted with provisions of Nepal’s customs laws and unfairly affected citizens living in border regions. The court directed the government and related authorities to suspend enforcement until a final verdict is delivered.
The disputed rule had recently been enforced more strictly by the government led by Prime Minister Balen Shah, triggering widespread frustration among residents who depend heavily on cross-border trade with India for daily essentials. Under the policy, travellers entering Nepal with goods purchased in India exceeding the NPR 100 limit were required to pay customs duty, even on low-value household items.
The decision quickly sparked protests across several border areas, where families and small traders have long relied on Indian markets for affordable groceries, medicines, clothing, and household supplies. Reports from towns along the India-Nepal border indicated a sharp decline in customer movement and commercial activity after authorities tightened inspections and taxation procedures.
Critics argued that the move placed an additional financial burden on ordinary citizens at a time of rising living costs. Videos circulating on social media showed confrontations at border checkpoints, with travellers complaining that even small purchases such as snacks, fruits, and daily-use products were being stopped or taxed.
Nepalese authorities, however, defended the policy as an attempt to control informal trade, prevent revenue leakage, and encourage domestic consumption. Officials maintained that repeated small-scale imports from India were affecting local businesses and depriving the state of customs revenue.
The issue also drew attention in India. India’s Ministry of External Affairs previously clarified that the measure was part of Nepal’s internal customs enforcement and noted that the regulation was linked to existing provisions aimed at curbing smuggling and unauthorized trade activities.
Economic observers say the controversy highlights the delicate balance between regulation and the unique open-border relationship shared by India and Nepal. The two countries maintain deep economic and social ties, with thousands of people crossing the border daily for trade, employment, education, and family connections.
The court’s intervention is being viewed as temporary relief for border communities and traders who feared prolonged disruption to local commerce. Legal proceedings on the matter are expected to continue in the coming weeks as the government defends the rationale behind the customs policy.
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