Kathmandu -Every company importing goods from abroad must obtain foreign currency exchange facilities. For this, the purpose of the company and the type of goods being imported must be clearly stated.

A serious question has now arisen: how did Cimex Inc., the authorized dealer for BYD in Nepal, secure foreign exchange facilities to import SIM cards—goods that are restricted and unrelated to its registered business objective?

A series of reports by Biznessnees revealed that Cimex imported active SIM cards from China Mobile Hong Kong. A company licensed to import and sell vehicles was found importing and distributing foreign SIM cards under the tag of an 'official dealer.' 

Both the Department of Customs and the Nepal Telecommunications Authority have remained silent while Cimex openly carried out this activity under their nose. 

Cimex had obtained foreign currency exchange approval from Nepal Rastra Bank only for vehicle imports and related goods. Such approval is granted in line with a company’s stated objectives. 

Only firms with a telecommunications license or GPS service permit can legally import SIM cards. 

Cimex does not hold such licenses, nor is it authorized to engage in this business.

Documents show Cimex imported SIM cards under the Harmonized System (HS) code for mobile SIMs, using the foreign currency facility intended for vehicle imports.

Nepal’s law clearly prohibits using foreign currency allocated for one purpose to import unrelated goods.

The import details raise further questions. 

While SIM cards for telecom use attract no customs duty—only 10 percent excise and 13 percent VAT—the declared price by Cimex was highly unusual. 

Customs records show the declared purchase price of each SIM card was 2,300 Chinese Yuan. At the exchange rate of 19.14, this equals Rs 44,022 per SIM. With freight, insurance, and taxes, the cost of each card entering Nepal was Rs 58,587.

In comparison, Nepal Telecom and Ncell have imported SIM cards under the same HS code at just Rs 62 to Rs 65 per piece, including duties. Despite such an abnormal price gap, Customs cleared Cimex’s imports without scrutiny.

Cimex has also presented documents to some agencies claiming approval to import GSM devices. However, the approval holder was not Cimex but Delcon Compliance Pvt. Ltd. 

The type approval, granted for five years to BYD Auto Industry Company Limited, was for a GSM device, not SIM cards. 

Using this permit, Cimex imported active SIMs, raising concerns that data from BYD vehicles in Nepal may be routed abroad.

Under the Telecommunications Act, 2053 (1996), foreign or international telecom operators must obtain a license from the Nepal Telecommunications Authority and set up a server in Nepal before offering services.

 The same rule applies to physical and e-SIMs. 

Cimex has no such license.

This activity also raises privacy concerns. The Privacy Act, 2018, guarantees data protection of Nepali citizens. Data from BYD cars operating with SIM cards supplied by Cimex would be transmitted directly to China, creating a breach of this law.

Legal experts note Cimex’s actions violate several laws:

Telecommunications Act, 2053 (1996): Importing SIM cards without NTA approval is illegal. Goods can be confiscated, and the importer faces fines or imprisonment.

Customs Act, 2064 (2007): Importing goods outside the company’s registered purpose amounts to false declaration. Penalties include confiscation, fines equal to the value of the goods, and cancellation of import licenses.

Foreign Exchange (Regulation) Act, 2019 (1962): Misusing foreign exchange meant for vehicle imports to bring in SIM cards constitutes a punishable offense, monitored by Nepal Rastra Bank.

This is not the first controversy for Cimex. 

The company was earlier found involved in tax evasion during the import of BYD’s E6 model, a case still under appeal at the Supreme Court. More recently, its Sealion 7 faced delays due to document flaws, while the Atto 1 was brought in only for exhibition with a declared value.