Nepal has introduced a transaction value–based customs valuation system across all customs points, marking a significant overhaul of its customs administration. The reform officially abolishes the long-criticized reference value book system, which had been associated with lack of transparency, corruption, and inflated trade costs. After successful pilot implementation in Biratnagar and Birgunj, the system has now been rolled out nationwide in line with WTO-GATT standards. It relies on online valuation software, digital databases, and artificial intelligence tools. Under the new framework, importers’ self-declared values will be accepted as the primary basis for valuation, supported by risk-based inspections and post-clearance audits. Authorities expect the change to reduce revenue leakage, curb corrupt practices, lower trade costs, and facilitate faster foreign trade.
