KATHMANDU: The Armed Police Force (APF), responsible for border security and customs monitoring, has seized 779 electric vehicles (EVs) on Wednesday night on suspicion of being smuggled into Nepal from China through unauthorized channels.
Of the seized vehicles, 775 are of the BYD brand. Acting on intelligence inputs, APF units carried out coordinated night patrols, resulting in the recovery of the vehicles from multiple districts.
According to APF Central Spokesperson Bishnu Prasad Bhatta, 775 BYD vehicles brought via the Korala border point were located in Kaski, Parbat, and Mustang.
“Based on information received, patrol teams tracked 775 vehicles allegedly smuggled through the Nepal–China Korala border and found them in Kaski, Parbat, and Mustang,” he said.
He further stated that four additional vehicles were brought in through the Kerung border point. These include two electric microbuses and two cars, which were seized from Nuwakot and Dhading. The vehicles are currently being held at Adamghat in Gajuri Rural Municipality-6.
Authorities said the brand details of the four vehicles seized at Adamghat have not yet been confirmed. Initial reports indicate that the vehicles were being transported without number plates when they were intercepted.
The investigation committee is currently examining whether information on changes in tax rates was leaked in advance to importers, potentially influencing large-scale vehicle imports ahead of the new fiscal provisions.
Meanwhile, the government has formed a separate investigation committee following concerns over possible leakage of information regarding changes in tax rates ahead of the budget.
A constitutional provision requires the national budget for the upcoming fiscal year to be presented on Jestha 15. Accordingly, Finance Minister Dr. Swarnim Wagle presented the budget for fiscal year 2083/84 BS in a joint session of Parliament and tabled the finance bill on the same day, with customs and excise provisions coming into immediate effect.
Following the controversy, the government formed a high-level investigation committee led by Finance Secretary Dr. Ghanashyam Upadhyay, including officials from the Department of Customs, Nepal Police, and the APF. The committee has been tasked with investigating possible irregularities in customs clearance related to the vehicles.
The probe will also examine imports made through the Korala and Rasuwagadhi border points around mid-Jestha. To ensure transparency, officials including Tulsi Bhattarai, Chief of the Kerung-based Nepal–China customs office in Rasuwa, have been called to the ministry.
According to preliminary findings, most of the seized BYD vehicles are believed to have been imported by Cymax Inc., the official distributor of the brand in Nepal.
Cymax Inc. has denied any wrongdoing, stating that all imports were carried out in compliance with existing laws and customs regulations.
“All import procedures were completed in accordance with prevailing legal and regulatory provisions. We welcome a lawful investigation and are ready to provide all required documents,” the company said, adding that the vehicles were imported to meet customer bookings.
The company has also stated that it will fully cooperate with the investigation.
Questions over potential manipulation in pre-budget EV imports have emerged previously as well. The Office of the Auditor General had earlier flagged concerns regarding EV import valuation and customs compliance.
The investigation committee is currently examining whether information on changes in tax rates was leaked in advance to importers, potentially influencing large-scale vehicle imports ahead of the new fiscal provisions.
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