Nepal’s Customs Duty Makes Buying Indian Goods Expensive: How Has It Impacted Border Bazaars?

Last Updated:April 21, 2026, 16:00 IST

Aimed at boosting Nepal's revenue and local production, the low Rs 100 limit has made routine grocery runs expensive for the average citizen. News18 explains

Nepal’s new customs enforcement of up to 80%, strictly applied since mid-April, is set to make cross-border shopping significantly more expensive by removing the informal duty-free status previously enjoyed by small-scale shoppers.

While the rule technically existed, the current administration has shifted from periodic checks to a zero-tolerance policy at major border points like Birgunj, Biratnagar, and Bhairahawa. What is the rule? News18 explains

What is the rule?

Mandatory customs duty (Bhansar) is now levied on any good worth more than Rs 100 (NPR 160) bought from Indian markets. Depending on the item, taxes now range from 5% to 80%.

The rule applies to basic daily essentials including groceries, clothes, medicines, and household products. Local authorities have used loudspeakers to announce that no exemptions will be granted to civilians, NGOs, or government employees.

Why has shopping become more expensive?

Previously, shoppers could bring in Rs 200-500 worth of household goods without scrutiny. Now, even a kilo of tea or a few packets of biscuits can trigger a tax.

Shoppers are forced to stand in long queues to pay duties, even for minor purchases. Goods are being seized within 24 hours of non-payment. Reports indicate millions in clothing and essentials have already been confiscated.

Because it is harder to source cheap goods from India, local Nepali retailers have begun raising prices on existing stock.

How will it impact the border communities?

The rule has sparked protests in border regions like Bihar and Uttarakhand, where deep social and economic ties, called ‘beti roti’ relations, traditionally rely on an open, untaxed border.

Border markets in India, from Dharchula to Darjeeling, such as Jogbani and Banbasa, report a sharp drop in footfall as Nepali buyers avoid the new taxes and long customs delays. It has also now triggered protests along the 1,750km open border.

For many low-income families, buying cheaper Indian goods was a critical way to cope with high domestic inflation, this “survival strategy" is now under pressure. While the move aims to boost Nepal’s domestic revenue and promote local production, but the low ₹100 limit has made routine grocery runs prohibitively expensive and logistically difficult for the average citizen.

KEY FAQs

What is the new rule?

Nepal has made customs duty mandatory on goods worth over ₹100 (NPR 100) brought from India, with strict checks at border points.

Why does it make shopping expensive?

Earlier, small personal purchases were mostly duty-free; now taxes (ranging roughly from 5% up to 80%) are being charged even on low-value items.

Who is affected the most?

Daily shoppers in border areas, who relied on cheaper Indian goods—now face higher costs, reduced shopping trips, and tighter enforcement at crossings.

With agency inputs

News explainers Nepal’s Customs Duty Makes Buying Indian Goods Expensive: How Has It Impacted Border Bazaars?

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