Major Breakthrough in MRP Standoff: Importers Exempt from Labeling at Customs Points for Now!

The ongoing dispute between the government and the business community regarding the mandatory labeling of Maximum Retail Price (MRP) on imported and locally produced goods has temporarily cooled down. Importers are no longer required to affix MRP labels at customs points; instead, the Department of Customs has simplified the process, allowing goods to pass based on a self-declaration of the MRP.

This resolution follows discussions between the Ministry of Finance, the Ministry of Industry, Commerce, and Supplies, and the Department of Commerce to address the backlog of goods at various customs offices. Director General of the Department of Customs, Shyam Prasad Bhandari, stated that instructions have been sent to customs offices nationwide to implement this self-declaration system. He explained that while physical stickers are not required at the border, importers must provide a written commitment and declare details such as product name, brand, model, quantity, purchase price, and the intended MRP.

However, the requirement to label products remains mandatory before they reach the retail market. Business leaders, including Nepal Chamber of Commerce President Kamlesh Agrawal, have argued that Nepal’s lack of infrastructure makes labeling at customs impractical. While the legal requirement for labeling stems from the Consumer Protection Act of 2018 (2075 BS), the government's recent strict enforcement had created significant friction with the private sector. For now, the self-declaration compromise allows trade to resume without immediate labeling at the point of entry.