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. The procedures are not uniformly or non-discriminatorily applied to all companies. According to Global Integrity 2007, 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 2009:
- 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 1,900 per container.