Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The temporary closure of the Rasuwagadhi border point due to monsoon-triggered floods has significantly increased pressure on the Tatopani customs checkpoint, causing severe challenges in customs clearance, logistics, and overall border management. The disruption in Nepal-China trade flow has diverted all cargo movement and religious pilgrimage traffic toward the already narrow and capacity-limited Tatopani border.
According to Surya Prasad Kafle, Information Officer at the Tatopani Customs Office, over 300 Indian pilgrims headed to Mansarovar and more than 100 cargo trucks are currently using the checkpoint daily. “The customs yard can only handle about 100 trucks at a time. With additional cargo rerouted from Rasuwagadhi and a surge in Mansarovar-bound pilgrims, the customs infrastructure is under tremendous stress,” he stated.
Impact on Nepal-China Trade and Auto Imports
The ripple effects of the congestion are beginning to affect broader economic sectors—especially the automotive industry. Major auto importers have warned that delays at the border could jeopardize the timely delivery of new vehicle models scheduled to be showcased at upcoming major events like the NADA Auto Show and NAIMA Mobility Expo, events crucial for annual vehicle sales.
Former NADA President Dhruva Thapa expressed concerns, stating, “This quarter accounts for the highest sales of the year, driven by Dashain-Tihar demand. Any delay in customs clearance at Tatopani could ruin the annual business cycle. Unlike Rasuwagadhi, the Tatopani customs yard is much narrower, worsening the logistical bottleneck.”
Thapa urged the government to expedite customs operations by deploying additional manpower and facilitating smoother processes to avoid revenue loss. “This is not just a problem for automobile dealers—it’s a potential revenue crisis for the government,” he added.
Traders Warn of Delivery Uncertainty
Kumud Nakarmi, Marketing Manager at Shangrila Motors—official distributor of Citroën in Nepal—also echoed logistical concerns. “The customs backlog at Tatopani makes it nearly impossible to ensure the arrival of new models on time for the Expo,” he said. “While importing two to four units isn’t a problem, the Expo requires bulk deliveries, and that’s not feasible under the current pressure.”
He noted that some of the China-origin vehicles had already departed from suppliers, but delays in customs processes now threaten timely delivery. “We’re trying to reroute everything through Tatopani due to the Rasuwagadhi closure, but it’s uncertain whether these units will reach Kathmandu in time,” Nakarmi added.
No Documentation Issues—Only Infrastructure Crisis
Auto industry stakeholders clarified that there are no problems in documentation or payment systems. Required papers are dispatched with the vehicles, and banks complete transactions in a single day. The primary hurdle remains physical customs management at the border.
Manpower Shortage at Tatopani Customs
The customs office has already requested additional human resources from the Department of Customs to deal with the overload. According to the office, the department is working on transferring staff and will soon dispatch more officials. In the meantime, current customs officers have extended work hours, starting from 8 a.m. daily.
Armed Police Force personnel have also initiated temporary warehouse operations to help manage the storage of goods. The customs office is prioritizing inspections of commercial goods by temporarily storing fruits and spices.
Call for Government Action
President of Nepal Himalaya Trans-Himalayan Trade Association, Ramhari Karki, stressed the need for immediate government intervention. “We’ve formally urged authorities to act. If five officials can clear 10 vehicles in a day, adding five more could double the capacity,” he said. “Vehicles are being processed until daylight ends, but we’re fighting a tough battle with very limited resources.”
The convergence of diverted cargo, increased religious travel, and capacity constraints at Tatopani has created a multi-dimensional crisis. While coordination between customs, security agencies, and business stakeholders is ongoing, without urgent reinforcement of infrastructure and staffing, the border situation is expected to become even more challenging in the coming weeks.
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