Nepal customs goes digital, ends fake invoice loopholes

KATHMANDU: The government has scrapped the traditional reference price system at customs and introduced an online valuation database, aiming to streamline import assessments and reduce fraudulent invoicing.

Customs Department Director General Shyam Prasad Bhandari stated that the system has been implemented since Bhadra 8 at major customs points, including Biratnagar, Birgunj, Bhairahwa, Nepalgunj, Chobhar, and Tribhuvan International Airport, and has now rolled out to 18 remaining customs offices.

Under the new system, the transaction value—the total cost incurred up to the customs point—will serve as the basis for import assessments.

Customs inspections will now focus on the actual declared value rather than pre-set reference prices, which had previously allowed the submission of fake invoices.

Bhandari emphasized that the online system pressures businesses to be honest, eliminating the need for fraudulent bills.

Private sector complaints that reference prices increased business costs and hindered billing have now been addressed after 27 years.

With this reform, importers are expected to submit accurate documentation, aligning with real transaction values, while customs gains a more transparent and efficient valuation process.