In a major relief to millions of residents living along the Nepal-India border, the Supreme Court has issued an interim order blocking the government’s controversial decision to levy customs duties on goods worth over ₹100.
A joint bench of Justices Hari Prasad Phuyal and Tek Prasad Dhungana directed the Office of the Prime Minister and the Ministry of Finance to stop enforcing the strict threshold until a final verdict is reached.
The Controversy Behind the ₹100 Limit
The rule, strictly enforced under the newly elected government of Prime Minister Balendra “Balen” Shah, targeted small-scale purchases. While the directive technically existed in the gazette for years to curb cross-border smuggling, it was rarely enforced for ordinary shoppers.
Its sudden, rigorous implementation in April led to widespread public outrage. Border security forces began checking small bags using loudspeakers to mandate declarations, causing long queues, chaos, and protests across the Terai-Madhesh region. Local families complained they were being harassed and delayed for carrying basic household items like a few kilograms of rice, cooking oil, or wedding garments.
The Court’s Verdict: Protecting Dignity and Livelihoods
Advocates Amitesh Pandit, Akash Mahato, Suyogee Singh, and Prashant Bikram Shah filed a writ petition arguing that the policy was unconstitutional and violated the Customs Act provisions regarding exemptions.
The Supreme Court ruled in their favor, stating that the rigid enforcement violated Article 16 of the Constitution of Nepal, which guarantees every citizen the right to live with dignity.
The bench noted that while the state has a sovereign right to manage revenue and control commercial smuggling, it cannot do so by disrupting the basic survival of its citizens. The court explicitly ordered that:
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Medicines and health supplies must not be stopped.
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Daily household necessities for personal and family use are exempt from harassment.
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Minimal goods used for social and cultural relations (such as attending weddings across the border) must be allowed without obstruction.
Impact on Border Towns
The ruling has sent immediate shockwaves through border districts. While ordinary citizens and cross-border shoppers celebrated the decision as a massive victory for their daily budgets, domestic border merchants expressed disappointment. Local Nepali traders had recently reported a 75% drop in consumers crossing over to cheaper Indian markets like Sunauli, which had briefly boosted domestic sales.
The Supreme Court has requested both parties to present further arguments before delivering a definitive, final judgment on the legality of the ₹100 cap. For now, border checkpoints have been ordered to restore normal transit and treat travelers with respect.