Kathmandu, June 4 : Hundreds of electric vehicles (EVs) imported under the BYD brand have come under investigation after Nepal’s Armed Police Force (APF) seized a large consignment amid suspicions of customs irregularities and possible revenue evasion.
According to sources, approximately 750 BYD electric vehicles being transported from the Korala border point in Mustang toward Kaski were taken under APF control after discrepancies were found between import documents, customs records, and the actual status of the vehicles.
The seized vehicles have reportedly been handed over to relevant authorities for further investigation.
The controversy emerged following allegations that importers sought to take advantage of impending tax changes on electric vehicles announced through the national budget.
Sources claim that information regarding a planned increase in EV taxes had reached certain business groups before the budget was officially unveiled.
Acting on this information, efforts were allegedly made to complete customs clearance procedures on paper before the new tax rates came into effect.
Investigators suspect that some vehicles were granted customs clearance and taxed under the previous rates even though the vehicles had not yet physically arrived at Nepal’s customs points.
Such actions, if confirmed, could indicate serious procedural violations and potential revenue losses for the state.
Reports indicate that prior to the budget announcement, import authorization documents were issued for a significant number of BYD vehicles.
Nepal’s authorized BYD distributor, Cimex Inc. Pvt. Ltd., is said to have obtained import permits and paid customs duties for 187 vehicles through the Rasuwa Customs Office.
However, only a limited number of those vehicles had reportedly completed physical customs clearance before the budget took effect.
The most serious allegation is that customs clearance may have been processed for vehicles that were still outside Nepal.
Sources suggest that some of the vehicles remained in China while documentation showing customs clearance had already been completed in Nepal.
Authorities are now examining the timeline of import permits, tax payments, vehicle entry records, and customs clearance documents to determine whether legal procedures were followed.
The investigation is also expected to assess whether there was any collusion involving customs officials or other revenue administration personnel.
Officials believe that a substantial portion of the vehicles currently under investigation may have been among those that received paper-based clearance before physically entering the country.
The Customs Department is reportedly reviewing all related records to verify whether customs procedures were conducted in accordance with existing laws and regulations.
If investigators confirm that customs clearance was granted before the vehicles entered Nepal, the case could raise serious concerns regarding the leakage of confidential budget information, possible collusion within the customs administration, and weaknesses in the country’s revenue collection system.
Authorities have stated that a detailed investigation into the seized vehicles is ongoing, and further findings are expected in the coming days.
Publish Date: June 4, 2026
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