Individual Corruption

According to Global Integrity 2009, customs administration is considered as one of the hotbeds of often petty, and at times heavy, corruption in Nepal. The report specifies that there have been widespread reports and complaints by airline passengers about bribe-taking at Kathmandu's international airport. According to a 2009 news article by BBC News, almost all incidents of petty corruption have targeted Nepalese travellers rather than foreigners. In an effort to curb such petty corruption, the Commission for the Investigation of Abuse of Authority (CIAA) decided to issue trousers without pockets for airport officials, hoping this could curb the irregularities. Nevertheless, Global Integrity 2009 reports that such trousers are nowhere to be seen, and bribery at the airport and complaints from airline passengers reportedly continue.

Business Corruption

According to Global Integrity 2009, customs and excise laws are not always enforced uniformly or without discrimination in Nepal, and the customs service has a reputation of corrupt behaviour and questionable professionalism. 

Moreover, the customs system lacks transparency and is not always efficient, as illustrated in the World Economic Forum Global Enabling Trade Report 2010 where business executives rate the transparency of the border administration, in relation to irregular payments in export and import, and the efficiency of customs administration as relatively low, constituting a competitive disadvantage for the country.

Political Corruption

Customs administration is plagued by corruption in Nepal. Corruption exists in the top echelons of the customs authority. According to Transparency International's Global Corruption Report 2006, in 2005, former Chief of Mechi Customs Office Keshar Jung Khadka received a one year prison sentence and a fine of over USD 35,000 for corruption, along with confiscation of his property valued at USD 144,000. However, the verdict was reportedly not enforced.

In February 2010, the Special Court issued a NPR 9 million fine against Joint-Secretary at the Ministry of Finance on charges of corruption, as reported in a 2010 article by Artha Ko Artha. This decision was made by the court after it was revealed that the official had embezzled NPR 4.6 million while he was working as a customs officer at the Tribhuvan International Airport (TIA) and Birgunj Customs Office.

Frequency

The World Bank & IFC Doing Business 2011:
- A standard export shipment of goods requires 9 documents and takes an average of 41 days at a cost of USD 1,960 per container.

- A standard import shipment of goods requires 10 documents and takes an average of 35 days at a cost of USD 2,095 per container.
 
World Economic Forum: The Global Enabling Trade Report 2010:
- Business executives give the transparency of border administration (pervasiveness of undocumented extra payments or bribes connected with imports and exports) in Nepal a score of 2.6 on a 7-point scale (1 'non-transparent' and 7 'transparent').

- Business executives give the efficiency of customs administration (burden of customs procedures) in Nepal a score of 3.1 on a 7-point scale (1 'extremely inefficient' and 7 'extremely efficient'). 

The World Bank & IFC: Enterprise Surveys 2009:
- 3.3% of the surveyed companies expect to give gifts to get an import licence.