Nepal Country Profile

Customs Administration

Business Corruption

The customs service has a reputation of corrupt behaviour and questionable professionalism. Nepali companies report that the customs system is time-consuming and lacks transparency. According to Global Integrity 2008, customs and excise laws are not always enforced uniformly or without discrimination, and there have been reports of favouritism, misapplication of customs laws and procedures, nepotism and corruption with regard to the collection of customs and excise revenues.

Political Corruption

Customs administration is plagued by corruption in Nepal. Corruption exists in the top echelons of the customs authority. In March 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.

Frequency

The World Bank & IFC Doing Business 2010:
- A standard export shipment of goods requires 9 documents and takes an average of 41 days at a cost of USD 1,764 per container.

- A standard import shipment of goods requires 10 documents and takes an average of 35 days at a cost of USD 1,825 per container.

World Economic Forum: The Global Competitiveness Report 2009-2010:
- Business executives give the efficiency of customs procedures (formalities regulating the entry and exit of merchandise) in Nepal a score of 3.1 on a 7-point scale (1 being 'extremely inefficient' and 7 'extremely efficient').

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