Smuggling cases of pepper, maize and garments at the border areas have been on the rise. According to a report provided by the District Police Office, Parsa, the office confiscated garments worth Rs7.9 million that passed through illegal channels from last mid-April. 

Traders are using illegal channels to import garments to avoid the high tax—13 percent value added tax and 20 percent customs charge—being levied in the import of readymade garment.

The armed police force team of Sirsiya seized garments worth Rs400,000 from Idgah, Birgunj, that was being imported to Nepal through illegal channels from Indian markets. Similarly, police raided garments worth Rs1.3 million from Chapkaiya of Birgunj-1, on September 28, acting upon a tip from their informer.

Likewise, police took in control of the garments, amounting Rs350,000, from Inaruwa, Birgunj municipality-16, which was being imported through illegal channels from India.

More than half of the garments supplied to the country is imported illegally, claims a trader. “One has to pay 20 percent customs charge and 13 percent VAT while importing a set of salwar suit, which makes it cheaper by Rs400 in bordering cities in India,” said the source. “The same salwar suit is sold at double the price in Kathmandu.”

The traders of Birgunj and Rakshawl deliver garments through legal and illegal channels to traders of Chitwan, Pokhara, Kathmandu, and other cities. “Traders and carriers both are benefited while importing garment illegally,” said a trader.

According to the source, more than 500 women are involved in importing garments, in small quantities, via the Birgunj custom point without paying taxes. A majority of them work as carriers for the smugglers, according to a trader.  

The small quantities of garments are accumulated, loaded in trucks, and supplied to Narayangadh and Kathmandu, said a trader, adding that the transport owners mobilise half a dozen youths to keep an eye on the police. The illegal trade has been rising at Janakai Tole, Vishwa, Budhgae, Chapkaiya, and Bhakuwa trade point of Parsa. The illegal trade has been growing from most of the districts of province-2.

Meanwhile, Indian police seized two trucks loaded with pepper and a truck loaded with maize from Sitamadi, of India, a nearby border district. The trucks were loaded from Birgunj, said the police. SSP Dinesh Amatya said that the police took in control of Rs100 million goods within two months.  The smugglers bring vehicles loaded with garments, grocery items and banned medicines from India and return with black pepper and betel nut.