Customs for fair trade, smooth supply chain

By A Staff Reporter,Kathmandu, Jan. 26: Director General of the Department of Customs Shyam Prasad Bhandari has said that the government is making continuous efforts to improve customs administration in a timely manner.

Speaking at an interaction organised by Nepal Chamber of Commerce on the occasion of 74th International Customs Day on Sunday, he said that customs is not limited to revenue collection alone. 

The 74th International Customs Day was celebrated on January 24, 2026. The theme of the 74th International Customs Day is ‘Customs Protecting Society through Vigilance and Commitment.’

“The role of the customs is not only revenue collection, but also facilitating the supply chain, promoting trade, protecting society, and controlling illegal trade,” Bhandari said.

He added that customs administration is being strengthened in line with bilateral and international trade agreements, World Trade Organisation (WTO) standards, and other regional cooperation frameworks.

According to Bhandari, the primary target of customs reforms is to facilitate trade and reduce the cost of doing business. He emphasised that efficient customs procedures play a vital role in enhancing trade competitiveness.

Highlighting recent reforms, Bhandari said that the customs valuation system based on transaction value has been implemented in all customs offices. 

However, he noted that full and effective implementation of the system requires equal support and cooperation from customs agents and the business community. 

On the occasion, president of the Nepal Chamber of Commerce (NCC), Kamlesh Kumar Agrawal, has said that improvement in customs administration is not only a present necessity but also the foundation of a strong economy for the country in the future.

“Timely improvement in customs administration is a must for facilitating international trade while also making trading more transparent. Effective customs administration will control illegal trade and increase customs revenue as well,” he said.

Appreciating the government’s initiative to implement an online valuation database system, he stressed the need for mutual effort and responsibility among the government, customs officers, and entrepreneurs for its effective implementation.

He said that the effective implementation of the Customs Valuation System based on Transaction Value would encourage transparent business practices by facilitating customs administration.

With improvements in customs administration, investment would be encouraged and employment opportunities would be created, he said.President Agrawal also urged Minister of Finance Rameshore Prasad Khanal, who was present at the programme, to implement a dual VAT system based on necessity and luxury goods.

“Lower VAT should be imposed on necessary goods than on luxury goods,” he said.He asked the government to reduce customs rates to control the smuggling of goods from neighbouring countries.

He clarified that the private sector is ready to support the government in strengthening customs administration and in effectively implementing the Customs Valuation System based on Transaction Value.

On the occasion, the NCC honoured Director General of the Department of Customs Bhandari, in recognition of his efforts to strengthen customs administration.