Government Steps Back in MRP Dispute: Goods to Clear Customs After Self-Declaration; Traders’ Agitation Suspended

Kathmandu — The government has adopted a softer stance on the enforcement of the mandatory Maximum Retail Price (MRP) labelling requirement. It has stepped back from its earlier position that goods must bear MRP labels affixed at customs points before being cleared.

The Department of Customs has now made arrangements whereby imported goods can be cleared upon self-declaration of MRP by importers. To ease the customs clearance process that had been stalled at various customs offices due to the MRP dispute, discussions were held among the Ministry of Finance, the Ministry of Industry, Commerce and Supplies, and the Department of Commerce. Following these discussions, facilitation measures were introduced, informed Shyam Prasad Bhandari, Director General of the Department of Customs.

“There had been some confusion; we have now provided facilitation,” said Director General Bhandari. “Even if goods arriving from abroad do not have MRP stickers on them immediately, the importer will now have to formally declare the MRP at customs and submit a written undertaking, following which the goods will be cleared.” He noted that some of the differences concerning MRP could be addressed through the upcoming budget. However, he made it clear that MRP labels must be affixed without fail before the goods are sold or distributed in the market.

Under the MRP undertaking letter now enforced at customs points, details such as the name of the goods, brand, model, quantity, purchase price, and declared MRP must be specified. Goods will be cleared only after the process is completed with the importer’s name, company details, stamp, and signature.

Tensions between traders and the government had escalated after the government tightened the MRP requirement under the Consumer Protection Act, 2018 (2075 BS). Kamlesh Agrawal, President of the Nepal Chamber of Commerce, has been stating that the MRP requirement cannot be implemented owing to a lack of infrastructure. “Imported goods are distributed to various parts of the country after arrival, and it is not known at customs itself where particular goods will head. Therefore, MRP cannot be enforced at present,” he said.

Meanwhile, the Department of Customs has already issued directives to customs offices across the country to implement the MRP self-declaration system.