Customs Department Halts Goods Clearance on Budget Day, Citing Potential Tariff Changes

The Department of Customs has issued a directive to halt the clearance of goods and services at all customs offices across the country on Thursday, May 29 (Jestha 15), the day the national budget for fiscal year 2082/83 (2025/26) is being presented.

This decision comes in anticipation of potential changes in tax and tariff rates that may be introduced through the new Financial Bill. As per the Constitution, Finance Minister Bishnu Prasad Paudel is scheduled to present the annual revenue and expenditure estimates (budget) before a joint session of the Federal Parliament.

According to the directive, only passenger-related customs procedures will continue on Jestha 15. Clearance of all other goods and services is to be temporarily suspended for the day. The new tax rates, if introduced through the budget, will come into effect from the next day, Jestha 16.

The Customs Department has instructed all offices to ensure that the ASYCUDA system (Automated System for Customs Data) is updated with the new tariff rates before proceeding with any clearance activities after the budget is tabled.

However, the department has allowed clearance today (Jestha 14) for goods backed by import declarations (Pragyapan Patra) registered on or before this date. If any declarations are linked to goods affected by changes in the new tax rates, those declarations must be cancelled and re-issued based on the updated tariff structure.

For goods already declared but not yet cleared as of Jestha 14, if their applicable tariffs have changed in the new Financial Bill, customs offices have been directed to collect the revised duties before clearing them under supplementary declarations.

This move is aimed at preventing revenue discrepancies and ensuring the correct implementation of revised fiscal policies immediately after the budget announcement.