BIRGUNJ: Birgunj Customs Office has decided not to follow the directive of the customs department on making clearance for the imported automobiles from the third countries as per the recommendation of the Nepal Automobiles Dealers' Association (NADA).

The customs department had directed the Birgunj Customs Office to allow Tucson GL (Hyundai) imported from Korea and Land Rover SUVs imported from the UK to enter Nepal as per the prices fixed by NADA. Hundreds of automobiles have been stranded at the border after the Birgunj Customs outpost declined to give the entry clearance to imported vehicles following a row.

On November 25, NADA had recommended the customs department to value CIF price up to US $13,000 for GL model Tucson car.

The importers, who had been claiming the old CIF price (US $ 13,000), are submitting the bill of US $ 4,000, which differs with CIF price margin," said customs officer Kebal Prasad Bhandary. "How can the importers, who have been sticking to the old price, would submit new price again?" he asked.

"CIF Kolkata had stated that the Pragyapanpatra of vehicles can not be taken as CIF Birgunj. This is against customs act," Bhandary clarified. Custom agents, who were hopeful of importing the foreign vehicles after the recommendation of the customs department, also sought the clarification from the Birgunj customs chief on Sunday.

"I have told the agents that the vehicles can not be left just on the basis of NADA's recommendation," Bhandary said, talking to The Himalayan Times.

Chances are slim for implementing the customs department's direction this early since Bhandary is leaving for Kathmandu to take part in the Nepal-India Customs Department General Directorate- level talk, slated to begin on Tuesday.

Following the development, employees at the Birgunj Customs Office said that the customs department and NADA are likely to exert pressure through higher-level authority at the Ministry of Finance seeking clearance for the import of the vehicles.

The customs department maintains that the secretariat-level meeting had made the decision on December 4, including the valuation of the vehicles and direction for import to Nepal on the basis of NADA's recommendation. If the vehicles were to levy duty as per the direction of the customs department, it's certain that the government would loss the revenue of Rs 734,000 in each Tucson GL and Rs 146,7000 in each Land Rover car.

The government had purchased two cars of Tucson GL after the importers offered low price for the vehicles. Meanwhile, it is learnt that the Korean Embassy had imported the same vehicle at US $ 18, 251.

"We have fixed new valuation for the vehicles finding that there was a vast difference in the prices of internal market and the price submitted by sellers of the vehicles," custom officer Bhandary said. When the custom office denied accepting the price of importers, fake documents have been prepared for the same.

Since five months, eight Tucson brand vehicles have been stranded at the Birgunj customs office premise.

The customs office has initiated an investigation into the possible tax evasion after finding a large difference in the prices of the vehicles brought for business purposes and diplomatic purposes. The row over imported vehicles surfaced after the Finance Ministry allowed NADA to fix the value of vehicles.