In Lumbini, proceeds from seized goods rose to 575.5 million rupees — Kathmandu Post
In Nepal’s Lumbini Province, proceeds from goods seized in customs duty evasion cases rose from 368.2 million rupees in the 2024–25 fiscal year to 575.5 million rupees in 2025–26. This is 56.3% higher, Kathmandu Post reports.
According to law enforcement agencies, sugar, fertilisers, clothing, mobile phones, medicines, poultry and narcotics continue to be brought into Nepal through southern crossings with India without paying the required customs duties. Large consignments in trucks and containers have become easier to intercept, but small batches transported throughout the day remain difficult to control.
Small batches and warehouses
According to law enforcement officials, those involved in the illegal movement of goods transport them in small quantities, store them in warehouses and later distribute them to markets. In Parsa district, around 500 people, including women and children, are involved in transporting small batches, according to Armed Police Superintendent Mohan Singh Chhetri. The goods then reach markets around Birgunj and the neighbouring Bara district.
In Rautahat, carriers receive 2 to 3 rupees for every kilogram of sugar transported, according to a local trader. The price difference creates an incentive for such trade: sugar in India costs about 64 Indian rupees per kilogram, while clothing and mobile phones there are cheaper, according to traders’ estimates.
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Seizures of goods
Police in various districts seized consignments of electronics, clothing, medicines, fertilisers and jewellery. In Sarawal in West Nawalparasi district, law enforcement officers intercepted a consignment of mobile electronics and accessories imported without payment of customs duties, worth more than 10 million rupees. It included 930 mobile phones, AirPods headphones and protective screen glass.
In Madhesh Province, the value of seized clothing and fashion goods amounted to 865.71 million rupees in the 2023–24 fiscal year. In 2025–26, this figure fell to 102.1 million rupees, while the value of seized vehicles and spare parts reached 750.8 million rupees.
Representatives of legal businesses stress that untaxed goods are sold more cheaply, creating unequal conditions for traders who pay duties and taxes. Thakur Kumar Shrestha, president of the provincial chapter of the Federation of Nepalese Chambers of Commerce and Industry, believes that lowering customs rates could help curb illegal trade.
