Rs 100 Customs Threshold Raises Wider Policy Questions

The Jana Adhikar Party staged a sit-in at the Birgunj border point on Sunday, April 19, opposing a new rule that requires customs duty on goods worth more than Rs 100 brought in from India.

The protest, led by party chair Sharad Singh Yadav, was held at Shankaracharya Gate. Yadav demanded the immediate withdrawal of the decision, accusing the government of targeting ordinary people in border areas while failing to curb large-scale illegal trade exploiting the open border.

He described the policy as discriminatory, arguing that it disproportionately affects residents of the Tarai-Madhesh region. “Travellers entering through airports are allowed to bring in gold and expensive liquor, while residents of Madhesh are restricted from bringing even basic daily necessities,” Yadav said, claiming the move amounted to an “undeclared blockade” on Madheshi communities.

Yadav also called for the introduction of special identity cards for border residents, allowing them to bring essential daily goods from Indian markets. He warned that protests would be expanded across all 22 districts of the Tarai-Madhesh if the policy is not reversed.

The stricter enforcement follows a directive from the Ministry of Home Affairs to the Armed Police Force (APF), which is responsible for border security. 

Although this provision exists in the customs-related law, it had not previously been enforced in practice.

Superintendent of Police Mohan Bahadur Chhetri, chief of APF Battalion No. 13 in Parsa, said all goods entering through the Birgunj customs passenger branch are now subject to rigorous inspection.

Customs officials said the passenger branch can process duties on goods valued up to Rs 5,000. “Items intercepted by the APF are released only after the required customs duty is paid,” said Krishna Prasad Mainali, chief customs administrator.

The enforcement has already begun to impact cross-border trade patterns. Markets in Raxaul, India — traditionally frequented by Nepali shoppers — have reported a sharp drop in footfall.

Most of the goods are cheaper on the Indian side of the border. 

Local traders in Birgunj, however, have welcomed the move, saying it could help revive domestic business. “This will provide a much-needed boost to the Birgunj market,” said Deepak Sarraf, a shopkeeper at Maisthan Bazaar.

At the same time, stricter checks have led to tensions at the border, with disputes reported between security personnel and locals accustomed to bringing in goods without duty.

APF Deputy Superintendent Bikas Adhikari said authorities are strictly enforcing the Rs 100 threshold for non-food items, while food items are subject to additional conditions. “We are collecting revenue on all non-food items above Rs 100,” he said. “For food items, duty can only be charged after plant quarantine testing. If large quantities are found, travellers are being asked to return them to the Indian side.”

On Friday alone, the customs office collected Rs 90,000 in revenue from such imports.

Despite the increased revenue, the Birgunj Chamber of Commerce and Industries has criticised the measure as impractical. Its president, Hari Prasad Gautam, said the policy undermines consumers’ access to affordable goods.

“This crackdown is not sustainable,” Gautam said. “If the government wants to discourage cross-border shopping, it should adjust domestic tax rates to make goods competitively priced. This level of enforcement is unrealistic for ordinary people.”