MRP Mandate Halts Customs Clearance, Impacts Revenue
Summary
Customs clearance across Nepal is halted due to the government's mandatory Maximum Retail Price (MRP) policy at customs points, disrupting trade and revenue collection. Traders protest the sudden implementation citing practical difficulties, and thousands of containers are stuck at key border points.
Key Points
- The government mandated the display of Maximum Retail Price (MRP) on all imported and domestically produced goods at customs points, halting customs clearance.
- Thousands of cargo vehicles and over 600 containers are stuck at major customs points including Birgunj, impacting daily revenue collection substantially.
- Traders and private sector groups criticize the policy as impractical, unsuited for immediate implementation, and uncoordinated with stakeholders.
- Experts and officials highlight logistical challenges in setting MRP at customs points due to variable transportation costs and unclear final costs of goods.
- Customs Department proposed a middle-ground solution to ease the policy's impact, responding to customs clearance and revenue collection difficulties.
