MRP Uncertainty Impacts Imports, Risk of Goods Shortage During Festivals
June 7, Kathmandu – Starting from the upcoming fiscal year, the government plans to mandate the Maximum Retail Price (MRP) labeling on all imported goods at the customs point. Although the policy was intended to be implemented last year, various complications delayed its enforcement. Now, the government insists that MRP must be compulsory on all imported items.
However, implementing MRP labeling at customs remains a significant challenge for businesses. The primary period for importing goods targeted for upcoming festivals has already begun, but ongoing confusion over MRP and customs policies has caused many importers to postpone new orders, raising concerns in the growing economy.
As businesses prepare to purchase textiles, footwear, and other festival-related products, disputes over the MRP requirement mean most traders remain in limbo this July.
While business representatives express willingness to apply MRP labels when selling in retail markets, they argue that having imported products already labeled with MRP from abroad is practically impossible.
Parshuram Dahal, President of the RB Complex Traders Association, stated that the government’s MRP rule at customs has created confusion and difficulties for traders.
The government had initially provided traders until the end of Ashad (mid-July) to comply with MRP regulations, with only a few days remaining now.
On April 13, 2026 BS (April 26, 2062 Nepali calendar), the Department of Commerce, Supplies, and Consumer Protection issued a notice mandating MRP labeling at customs for imported ready-made goods, aiming to protect consumers from fraud.
However, attempts to implement this rule resulted in thousands of containers being held up at customs gates. Consequently, the government backtracked and allowed imports to enter under a self-declaration system until the end of Ashad.
Currently, businesses are importing goods based on self-declarations, then labeling MRPs in their own warehouses before distributing the products to retail markets.
President Dahal explained, ‘MRP is meant to protect consumers, but we buy goods from abroad, and foreign manufacturers do not affix separate MRPs specifically for Nepal. Such an unnatural rule negatively affects not only traders but also the country’s supply chain.’
He noted that while the producers can affix MRPs on food grains, agency-imported products, and branded goods, it is not feasible to label MRPs on textiles and footwear brought into the retail market.
Business leaders have repeatedly presented these concerns to the Finance Minister and the Director General of the Customs Department. Around 20-25 days ago, the Nepal Chamber of Commerce also discussed these issues with Finance Minister Swarnim Wagle, who promised a meeting between the Industry Ministry, Finance Ministry, and traders, but no progress has been made so far.
If the government fails to resolve the issues promptly, traders warn of reluctance to import sufficient goods to meet the festivals’ demands. Despite hopes for relief from the new government in the post-pandemic business environment, traders report that increased taxation and strict enforcement are causing fear.
Dahal added that despite more than NPR 1.3 trillion liquidity in banks, traders have been unable to obtain loans for operational purposes.
He criticized the government employees, stating that they appear to be defrauding traders, and urged the government to reconsider the rule and apply it flexibly according to the type of goods (categorizing accordingly). He warned of potential goods shortages during festivals if the government fails to act.
Merchants in Mahaboudha have also highlighted the severe problems arising from the MRP rule. Traders importing thousands of varieties of small Chinese items in a single container are stressed by the requirement to affix MRP labels at customs.
A wholesale trader of fancy and cosmetic goods in Mahaboudha for the past 20 years remarked that policymakers lack understanding of ground realities.
He said, ‘A single container from China contains thousands of items, from hair clips costing NPR 5 to items priced at NPR 1,000. It’s impossible for Chinese factories to affix different MRPs for Nepal, and it’s unfeasible for us to label millions of such items at customs.’
Traders warn that if the government does not amend this rule, the festival markets like Dashain and Tihar will face empty shelves, and even available goods could be twice as expensive. Small traders are likely to reduce formal imports due to the hassles of affixing MRP at customs, which may encourage informal trade and customs evasion.
Businesses Say MRP Labeling at Customs is Technically Impossible
Jayant Kumar Agrawal, General Secretary of the Nepal Overseas Exporters Association, stated that the rule mandating compulsory MRP labels at customs is both technically and practically unfeasible.
Agrawal said the government lacks the necessary infrastructure at customs to comply with this rule.
“Applying MRPs at customs requires large-scale infrastructure to unload and reload goods, which currently does not exist. Some goods require refrigerated containers to prevent spoilage. A single container includes thousands of small items, so affixing MRPs at customs is technically impossible,” Agrawal explained.
Therefore, the association has officially requested the government to continue the self-declaration system.
Though goods must be ordered and imported in time for festivals, international shipping lane disruptions and tensions in the Middle East have traders concerned.
According to Agrawal, container shortages persist, and freight costs have surged by 200 to 300 percent compared to last year.
Due to reduced consumer purchasing power, traders are also delaying large-scale import orders but expect merchandise to arrive based on market demand. The association plans to hold meetings to further discuss MRP-related business challenges.
Traders predict a significant rise in market prices during the festivals. Due to rising dollar rates and shipping costs, inflation is expected to accelerate this year.
“Last year, the dollar was relatively stable, and inflation was only around 7-8 percent,” said RB Complex President Dahal. “This year, with increases in both the dollar and freight charges, prices could rise by nearly 20 percent.”
He also noted that monsoon-related road disruptions will increase import costs. “Floods and landslides frequently block roads. Currently, as monsoon approaches its end, road conditions are worsening,” he added.