Due to the lack of strong and transparent standards for the availability and pricing of goods in the country, as many customers as possible reach the Indian market.
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The border Indian market is a meeting point connecting Nepalis and Indians. There is no difference between the citizens of the two countries. Since the currencies of both countries are traded, it is also easy for citizens to shop. Since the prices of goods are cheaper than in the Nepali market, Nepali citizens near the border often reach the Indian market to purchase household items.
It is analyzed that the increased activity in the Indian market in the border area is mainly due to Nepali customers. But after the newly formed government tightened the customs checkpoints and opened borders, Nepali customers reaching the Indian market have become more frustrated.
Tension has started at the border after customs duty was started on goods worth more than 100 rupees. This is not only a matter of customs and revenue leakage control. It is also a matter related to the multifaceted relationship between the citizens of Nepal and India. Therefore, since the tension in the border area can bring political, social and cultural complications, a practical response from the government is expected before that.
Every year on 15th Jestha, the government issues a customs-related notice specifying the items that passengers can bring in and take out by air and land. The last notice was published on 15th Jestha, 2082.
The notice published in the Gazette states, ‘Any person crossing the border by land will not be given any of the facilities mentioned in this notice, but if they bring or take out personal items worth up to one hundred rupees with them, the customs chief may, after considering the justification, release them without charging duty.’ According to the notice, the government has now tightened the implementation of the provision requiring customs duty on items worth more than one hundred rupees.
As per the decision of the Central Revenue Leakage Control Committee meeting held on 19th Chaitra under the coordination of Finance Minister Swarnim Wagle, the Customs Department had directed all subordinate bodies to collect customs duty on items worth more than one hundred rupees. After that, after miking at some border posts for a few days, stricter measures have been taken. As a result, there is a tug-of-war between goods, and there are occasional clashes.
This topic begins with the question of why Nepali citizens go across the border to purchase goods for household purposes. First, there is an open border. Similarly, if the political division of the two countries is not taken as a wall, there is a wide difference in the price of goods within a few kilometers between Nepal and India. Goods can be purchased cheaper than in the Nepali market. There are many options for choosing the brand of goods.
When Nepali customers have to buy goods in large quantities during special occasions like weddings, fasts, funerals or other celebrations, the choice of the Indian market is often. Customers from far away also come for this. Therefore, for Nepali citizens in the border areas, the Indian market is associated with the convenience of buying goods cheaply. Citizens everywhere try to buy goods at cheap prices.
For them, making their livelihood easier is the main objective, the rest are secondary priorities . Due to the lack of strong and transparent standards for the availability and price of goods in the country, as many customers as possible reach the Indian market .
On the other hand, the Indian open border is also being misused . Because, it is estimated that goods are brought in through formal means as well as goods that are brought in through formal means . This should be examined from both sides . First, even when goods are brought through formal means, there is a tendency to show a low price to evade revenue .
Even if it is shown that the goods were purchased at a very cheap price at customs, Nepalese customers have to pay a higher price . This tendency should be improved . Second, there are two ways of bringing goods through informal means – the general public brings them for personal/household purposes and the traders bring them through customs to evade customs .
The limit of 100 rupees is impractical for the general public . On the other hand, the items from sugar to manzan that are occasionally brought by the general public do not contribute significantly to the revenue. Therefore, it is necessary to remove or widen the limit of 100 rupees.
For commercial purposes, the state policy can/should be strictly enforced by monitoring the purchase of items from the Indian market and regular customers. Especially when such rules are followed, there is a risk that only the general public will suffer, but traders/businessmen who regularly evade customs duties will not suffer. The government should be aware of that. It should ensure that any decision of the government does not cause any harm to the citizens.
The economic, social and cultural relations between the Nepal-India border area are very old. It should be used in the interest of the citizens of both countries. Implementing strict rules in sensitive areas only for economic or political gains can be counterproductive. If the government wants to stop the revenue leakage from the import of goods from the Indian border area, it should be able to make the goods imported for commercial purposes formal, genuine and transparent.
The trend of revenue evasion should be stopped. When it can be made transparent, the price paid by the trader and the maximum price allowed to be sold here become clear. Here too, if surveillance and monitoring are increased, the price of goods in the Nepali market will not be high. Therefore, Nepali citizens will not be forced to go to the Indian market.
On the other hand, if the state itself becomes strong, production increases, the price of goods is made reasonable, and the quality of goods is ensured, Nepali customers can purchase goods in Nepal. Citizens can be facilitated in purchasing materials. But it is not fair to impose strict rules on citizens without doing such basic work.
