Birgunj border entry point in this file photo.

May 16: Birgunj Customs Office has failed to meet the revenue collection target in the month of Baisakh (mid-April to mid-May) due to the impact of COVID-19 on foreign trade. The largest customs point of the country has fallen short of revenue collection target by 14 percent.

The revenue target for the review month was Rs 19.44 billion, but the Birgunj Customs Office was able to collect only Rs 16.84 billion.

Birgunj Customs Office has said that the prohibitory orders imposed to contain the COVID-19 pandemic  has affected the country’s foreign trade.

"In the month of Baisakh (mid April to mid May), import of petroleum products, new vehicles and other luxury items declined. The impact is directly reflected in the revenue," said Harihar Poudel, chief of Birgunj Customs Office. 

The local administration had imposed prohibitory order in Birgunj from April 29 as part of measures to contain the outbreak of the second wave of coronavirus. Vehicles have remained off the road due to the ban. Though the government has said that there will not be any restriction on imports, it's not the case at the customs point. 

The Customs Office said that the import of petroleum products has declined due to the restrictions on public transportation. Likewise, new vehicles have also not received clearance from the customs office. “As the import of these two major items has declined, the revenue collection has also gone down," said Poudel.

Similarly, imports of raw materials, construction materials and equipment have also fallen. Since many development projects have been stalled, the import of construction materials has also dwindled. However, food items, medicines, raw materials and other essential items are being imported without any obstructions. 

Although the ban did not have much effect on imports and exports in the first few days, the foreign trade started to decline after other districts enforced prohibitory orders.  

The prohibitory order is in the third week in Kathmandu Valley along with other cities which are considered to be the major hubs for production, manufacturing and supplies.  With the extension of prohibitory order, its impact is being directly felt in the supply chain.