Smugglers have a ball in Birgunj: Smuggled goods enter Nepal in trucks and tractors

Published On: March 14, 2023 05:20 PM NPT By: Upendra Yadav and Mithilesh Yadav


JANAKPURDHAM/ BARA, March 14: On March 12, the police seized goods that had been smuggled in from Birgunj Metropolitan Municipality-16, Inaruwa. According to the Parsa Police, the goods include different types of clothes worth Rs 0.2 million imported from India by evading the customs duty and the goods were handed over to the Birgunj Customs on March 13 for further action.

On March 1, Birgunj police seized a pick-up jeep with an Indian number plate loaded with goods that were different from those mentioned in the invoice from Birgunj Metropolitan Municipality-25 Sirsiya. The pick-up jeep (BR 05 GB 9323), carrying different types of clothes worth about Rs 2.5 million in excess of the invoice, was impounded and handed over to the Revenue Investigation Office, Pathalaiya.

On the night of February 20, the police seized a truck (Na 7 Kha 7977), which was carrying clothes that had been smuggled into Nepal by evading customs from Birgunj Metropolitan Municipality-16, Inaruwa. Clothes worth around Rs 0.1 million were seized from the false bottom of the truck’s cabinet. 

On February 17, the police seized a truck and a tractor carrying various stationary and retail goods worth more than the invoice amount from Birgunj Metropolitan City, Sirsiya-25. More stationery and retail goods were seized from the tractor (Na 5 Kha 5494) and cargo truck (Na 3 Kha  1024).

The police handed over the truck and tractor along with the goods to the Revenue Investigation Office, Pathlaiya, for further action on February 20, with a valuation of goods at Rs 9.2 million.

On February 11, the police seized a truck with two containers suspected of having smuggled goods from Dry Port of Birgunj Metropolis-25. The cargo trucks (Na 6 Kha 4006 and Na 6 Kha 4608), which were going from Birgunj to Kathmandu, were seized by the police after they found that the container was not sealed.

When the police checked the container, clothes worth Rs 3.6 million were recovered from both the containers. The trucks with clothes found in suspicious circumstances without a seal were handed over to the Revenue Investigation Office, Pathlaiya, for necessary investigation and action.

Smuggling taking place in ‘collusion’

It is not new to smuggle goods in trucks, containers, tractors and jeeps through the Birgunj customs area in collusion with the customs officials. It has been revealed that in collusion with the customs office, goods with a higher value are being imported by producing customs declaration forms for goods which are taxed less.

The police team along with the administration sealed the warehouse of Sweet Mart Food Industries located in Birgunj Metropolitan Municipality-10 on Saturday. Based on the information from source that the gum base used in making chewing gum was imported from India in the customs declaration form of butyl rubber used in making shoe soles in collusion with the customs officials, the police sealed the warehouse and seized the documents.

According to the chief of the District Police Office, Parsa, SP Komal Shah, Niranjan Agrawal, the owner of Sweet Mart Food Industries imported gum base for which 30 percent customs duty and 13 percent value added tax should be paid, calling it butyl rubber for which only Rs 4.75 should be paid in customs duty. SP Shah said, “It’s been found that for the past several years, goods are being imported through the Birgunj Customs point by evading customs revenue.” SP Shah further said that after the importers were asked to produce the customs declaration form of the goods seized from the industry, they have been out of contact.

It has been found that the government has imposed 30 percent customs duty and 13 percent VAT (value added tax) on the raw materials used in making chewing gum, and imported it under the name of isobutylene-isoprene(Butyl) rubber in collusion with the customs office.

According to Dillaraj Panthi, head of Birgunj Customs Office, the office is conducting an internal investigation on Sweet Mart Food Industries regarding the import of goods different from those mentioned in the customs declaration form. He said, “Sometimes the customs officials leave the goods without checking the goods mentioned in the customs declaration form.” He tried to cover up the collusion saying that it had happened by mistake. Under-invoicing and repeatedly importing goods on the basis of the same customs declaration form in collusion with customs officials is rife at this customs office.

This customs office has not been able to meet the revenue target due to the rampant customs and other tax evasion . As of March 13 of the current fiscal year, the revenue collection by the Birgunj Customs Office is not very encouraging. Birgunj Customs is the highest revenue collecting customs in the country. This customs office had aimed at collecting Rs 166.7 billion in revenue by March 12. However, according to the Customs Office, only Rs 100.72 billion has been collected in revenue. It seems that only 60.4 percent of the target revenue has been collected.

The above-mentioned incidents show that smuggling through the Birgunj Customs Office has increased as the Armed Police Force personnel guarding the border turn a blind eye to smuggling control while the customs officials become mute spectators as both work in cahoots with each other.


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