Kathmandu, September 24
The government is set to replace the customs system based on reference values for imports with a new system that levies customs duties according to actual invoices.
According to the Department of Customs, an online valuation database system will be piloted in Biratnagar from Wednesday, before being gradually expanded to all customs offices nationwide. Finance Minister and Minister for Federal Affairs and General Administration Rameshwar Khanal will officially launch the system in Biratnagar.
The online valuation database will record, store, and analyse import data to help customs offices verify declared values and reduce the risk of under-valuation. It will calculate 90-day average prices of goods and provide updated real-market values, aligning Nepal’s system with international standards.
“Importers declare the prices they have paid for goods, and this system will help verify whether the declaration is accurate,” said Customs Director General Shyam Prasad Bhandari. “Once this system is in place, the outdated reference pricing mechanism will be phased out.”
The reference pricing system, introduced in 2007 and made mandatory in 2018 under the Customs Valuation Guidelines, was intended to curb under-reporting. However, businesses complained that it often set arbitrary prices higher or lower than real transaction values, creating discrepancies and adding administrative burdens.
Traders argued that the system discouraged fair trade and even contributed to capital flight. They had long demanded its removal. With the shift to actual valuation, businesses expect smoother operations and greater confidence. The new budget had also included a commitment to abolish reference pricing.
The government also plans to introduce a “Trusted Trader” scheme to reward compliant importers. Those on the list selected based on timely tax payment and clean compliance records will receive preferential treatment such as simplified customs clearance, reduced document requirements, and international recognition as trusted businesses.
