Kathmandu-BYD’s official distributor in Nepal, Cimex Inc. Pvt. Ltd., has failed to return vehicles imported under a financial guarantee, in breach of existing laws.

Nepali law prohibits the registration and sale of vehicles imported under a financial guarantee. Despite this, Cimex has retained the vehicles beyond the permitted period.

The company cleared several BYD Sealion 7 electric cars from Rasuwa Customs Office on July 1, 2025, using a bank guarantee. It had previously imported other models under similar terms. Vehicles imported on bail are strictly for inspection and must not be sold.

Under the law, such vehicles must be returned through the same customs point within the approved timeframe.

Cimex had sought permission from the Department of Transport Management to import the Sealion 7. While the department was still reviewing the application, the company cleared five units on surety. Records show the vehicles have not been returned to Rasuwa Customs.

Section 10(5) of Schedule 4 of the Customs Act 2081 allows goods to be imported for inspection against a cash deposit or bank guarantee for up to one year, on the condition that they are returned. If returned on time, one percent of the deposited duty is retained and the rest is released. If not, the goods are subject to confiscation and the full duty amount is recovered.

Cimex did not return the vehicles imported in fiscal year 2024-25 within the deadline. As a result, the government is liable to confiscate the vehicles and recover more than Rs 40 million in duties.

A source said Rasuwa Customs has not initiated confiscation or recovered the guarantee, despite the expiry of the approved period. This raises concerns over enforcement.

Customs officials were required to seize the vehicles once the return period lapsed. However, no such action has been taken.

Cimex had planned to sell the Sealion 7 in Nepal. It had applied for an import permit, but cleared the vehicles on deposit while the application was still under review.

The company secured customs clearance by depositing Rs 5 million on July 1,2025. Importing vehicles in Nepal requires prior approval from the Department of Transport Management. Cimex proceeded without it, citing delays in the approval process.

Cimex has also imported SIM cards for use in BYD vehicles without authorization. A vehicle distributor is not allowed to import telecom equipment. The company reportedly paid 2,300 Chinese yuan per SIM card, raising questions over pricing.

Authorities, including the Nepal Telecommunication Authority, the Department of Customs, and the Department of Transport Management, have not taken action.

Concerns remain over potential foreign currency outflows linked to these imports.