Investigation confirms BYD EVs cleared via customs 'on paper only' before budget

Kathmandu- Cimex Inc , the official BYD Electric Vehicles Dealer in Nepal, found guilty of clearing hundreds of EVs through customs on paper before physically reaching the customs checkpoint.

On June 2, Biznessnews had exposed that hundreds of electric vehicles were cleared by customs prior to the tax rate adjustment announced in the budget.

Following the revelation, the Department of Customs and the Ministry of Finance summoned six individuals, including Rasuwa Customs Chief Tulsi Prasad Bhattarai, to Kathmandu for questioning.

The Ministry of Finance also deployed Deputy Secretary Surendra Pandey and officer Govinda Adhikari to Rasuwa, along with a newly appointed customs officer, to investigate allegations that BYD vehicles had been inspected and cleared solely on the basis of documents without physical verification. The investigation team has since submitted its report to the Ministry of Finance.

On Friday, the Department of Customs officially confirmed that BYD electric vehicles were inspected only on paper before the budget and subsequently cleared by the Rasuwa Customs Office.

After reviewing the investigation report, the Ministry of Finance recommended action against 13 employees of the Rasuwa Customs Office, as well as against Cimex Inc. Pvt. , and other companies and customs agents involved in the paper-based inspection and clearance process.

In a public notice issued today, the Department of Customs stated:

'The monitoring team’s report found that employees of the Rasuwa Customs Office failed to exercise sufficient caution and did not properly fulfill their official responsibilities during the customs clearance process for electric vehicles. During an on-site review of declaration forms, office records, and related documents, the team discovered that some vehicles had been inspected solely on the basis of paperwork without physically arriving at customs. As legal procedures were found to be incomplete, the Ministry of Finance and the Department of Customs have immediately suspended 13 employees of the Rasuwa Customs Office, including the then office chief, and initiated disciplinary proceedings against them.

In addition, we request details of the actions taken against the importer of the electric vehicles, Cimex Inc. Pvt. Ltd., and the customs inspection representatives involved in this process, including Agent No. 248, Agent No. 833, and Agent No. 478, in accordance with prevailing customs laws.'

The Rasuwa Customs Office cleared BYD EVs on the Wednesday and Thursday before the May 29 federal budget announcement.

On May 27 and 28, Cimex Inc., the authorized Nepali dealer for BYD, has submitted customs declarations and paid taxes for 187 vehicles at the Rasuwa Customs Office while they were still en-route. Despite this pre-clearance request, only 20 to 30 BYD electric cars actually crossed the border, leaving the remaining vehicles still en-route from China.

Following reports of paper-only vehicle clearances at Rasuwa Customs, the Department of Customs immediately deployed a special investigation team to Rasuwagadhi on Sunday afternoon. The team arrived on Sunday and began their formal investigation on Monday morning.

The team is reviewing Rasuwa Customs' declarations, vehicle counts, CCTV footage, and gate passes. They will then return to the Department of Customs to present their findings in an official report.

While the Customs Act generally requires physical presence for vehicle inspections, Section 22 creates an exception for pre-arrival clearance. However, this fast-track facility is restricted to urgent items like perishables, livestock, and medicines. It explicitly excludes non-perishable goods, meaning vehicles cannot be cleared on paper before arrival.

By securing hundreds of declaration forms and paying upfront fees, Cimex Inc. Pvt. Ltd. processed vehicle inspections purely on paper to dodge upcoming budget tax increases. This aligns with past controversial practices by the BYD importer at Rasuwa Customs.

Previously, the office raised eyebrows by clearing a 2,300 Chinese yuan SIM card import for Cimex without a single formal inquiry.

While Cimex imports several BYD models including the Atto 1, Atto 2, Atto 3, Sealion 7, and Dolphin, a recent surge in Atto 1 and Atto 2 shipments made it difficult to pinpoint which models received paper-only clearance at Rasuwa.

774 imported after receiving tax hike information taken under police control

In 15 days ahead of the budget , Cimex imported 472 BYD vehicles through the Rasuwagadhi border points. The imports consisted of 70 BYD Sealion-7 units. Had those vehicles been cleared after the budget, the government would have collected more than Rs 322.7 million in additional revenue.

Customs data contradict Cimex statement on BYD vehicle clearances