Over 1,200 Vehicles Stranded in Birgunj Customs Office Due to Inspection Backlog

More than 1,200 vehicles find themselves in limbo at the Birgunj customs office, their fate uncertain as they fail to pass inspections. This unfortunate scenario is exacerbated by a concerning trend among automobile businessmen who prioritize clearing vehicles only after those in their showrooms have been sold. Dilaram Panthi, the Chief Customs Administrator, highlights a significant issue – many of these vehicles lack the necessary ZAMPAS certification, adding another layer of complexity to their clearance process. Despite efforts to streamline procedures, the backlog persists, with the current count at 1,200 stalled vehicles, reflecting a systemic challenge that needs urgent attention.

Former president of the Automobiles Association of Nepal, Dhruba Thapa, offers insights into the underlying causes of this predicament. He attributes the surge in stranded vehicles to the economic recession gripping the region, which has dampened both consumer demand and financing options. Thapa notes a significant drop from previous years' figures, with 2,200 vehicles detained in 2079 and 1,800 in 2080, but the lingering impact of the recession is evident in the ongoing stagnation at the customs office. This impasse not only affects the smooth functioning of the automobile industry but also has broader economic ramifications, as revenues from customs duties remain unrealized.

Efforts to alleviate the situation are underway, with the customs office planning a gradual release of the detained vehicles. Panthi anticipates a substantial boost to government revenues, estimating around Rs. 10 billion upon clearance of the backlog. However, the challenges persist, particularly for commercial vehicles, where reduced purchasing power and stringent financing conditions pose significant hurdles. Thapa underscores the shift in financing dynamics, noting that while previously banks covered 70-80% of vehicle costs, buyers now must front 50% of the amount, indicative of the changing landscape in the automotive sector amidst economic uncertainties.