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Recent Amendment in Nepalese Customs Law
Background
Nepal has enacted its new “Customs Act, 2082 (2025 CE)” effective from 08 December 2025, repealing nearly two-decade-old “Customs Act, 2064 (2007 CE)”. This new legislation is designed to make customs procedures systematic, reliable, and transparent, facilitating and securing international trade, and enhancing efficiency and effectiveness in duty collection.
Key Reforms Under the Customs Act, 2082 (2025 CE)
- Risk-Based Customs Clearance
By introducing a four-channel system, the Customs Act, 2082 (2025 CE), has replaced the Manual Inspection System with an advanced Computer-based Risk Analysis System to expedite trade.
- Green Channel : Immediate clearance; based on declaration
- Yellow Channel : Clearance; by examining all documents
- Blue Channel : Clearance; based on declaration, subject to Post-Clearance Audit
- Red Channel : Clearance; after inspecting all goods and documents
- Dual-Channel System
In order to facilitate the clearance of goods for passengers at the airport, the new Customs Act has introduced the concept of the Dual-Channel System.
- Red Channel : Duty attractive goods or goods requiring a customs declaration
- Green Channel : Other than the above
- Clearance of Shipping Containers
Where a shipping company registered in Nepal, for the operation of container services, has purchased containers abroad, even if it is not physically possible to import such containers, upon payment of the duty chargeable on such containers, it may be deemed to have been imported and may be cleared accordingly.
- Immediate Clearance of Goods
The following items are allowed for immediate clearance under the Customs Act, 2082 (2026 CE):
- Live animals
- Fresh fruits and vegetables
- Seafood
- Meat and meat products
- Items requiring special storage
- Biotechnology products
- Human glands
- Blood and blood plasma
- Medicines
- Perishable materials related to research
- Vaccines
- Power to Inspect Aircraft
Where information is received by a Customs Officer that any aircraft which has arrived at any airport of Nepal from abroad or which is in the course of departure to a foreign country from any airport of Nepal has concealed any goods by way of smuggled import or with the intention of smuggled import or export, and where there exists sufficient ground to believe such information, and where the Customs Officer deems it necessary, the Customs Officer may, after informing the airport operator, enter into such aircraft and conduct search or inspection of all parts of the aircraft, examine all goods present in the aircraft or goods intended to be loaded onto or unloaded from the aircraft, or demand the related documents.
- Under-Invoicing or Over-Invoicing
The new Customs Act has amended the provisions of under-invoicing and over-invoicing, mentioning the following fines and penalties:
- Under-Invoicing : Fine equal to 100% of the customs duty
- Over-Invoicing : May notify the concerned authority for inspection in writing
Note: Where the value of the imported goods declared at customs by the declarant is lower than the value determined by the Customs Officer, the Officer may purchase such goods with the approval of the Director General.
Reference/Citation
Government of Nepal – Nepal Law Commission
Government of Nepal – Ministry of Communication and Information Technology – Department of Printing
