The government has officially paved the way for the return of duty-free shops at Tribhuvan International Airport (TIA), ending almost 20 years without such services. The move follows the publication of the Customs Regulations 2026 in the Nepal Gazette, which establishes a clear legal and operational framework for licensing and managing duty-free outlets.
The regulation represents a major policy shift, as duty-free shops have been absent from Nepal’s only international airport since 2008. At the time, then Finance Minister Baburam Bhattarai ordered the closure of the long-running duty-free outlet operated by National Trading Ltd, citing significant financial losses. The company was later merged into the Food Management and Trading Company, leaving travelers without duty-free shopping facilities for nearly two decades.
Under the new provisions, licenses for operating duty-free shops will be granted through an open and competitive bidding process rather than direct government allocation. Authorities are required to publish a 21-day public notice inviting applications, and bidders will be selected based on the highest revenue proposal submitted to the government along with fulfillment of technical qualifications.
To qualify, applicants must possess an Export Import Code Number (Exim Code), have no criminal record, and be free from outstanding tax or customs liabilities.
The duty-free shops will mainly serve foreign tourists and Nepali travelers purchasing goods in foreign currency. Approved products include packaged food items, chocolates, sweets, chewing gum, biscuits, wafers, cosmetics, toiletries, and fragrances. Alcoholic beverages, however, will not be permitted for sale under the current regulations.
Operators will be required to deposit all foreign currency earnings from sales into banks. Imported goods must be sold within one year, although a six-month extension may be granted when necessary. Licenses will remain valid for five years, and renewal applications must be submitted at least six months before expiration.
Previously, duty-free operations were managed under broader bonded warehouse provisions, resulting in legal uncertainties and limited competition. Businesses were allowed to import goods by depositing a bank guarantee equivalent to customs duties, which was released only after the goods had been sold. The new regulations introduce a more structured and transparent system aimed at improving accountability and operational efficiency.
Officials believe the revival of duty-free shops will improve the overall travel experience at TIA, bring Nepal closer to international airport standards, and create an additional source of government revenue. The initiative is also expected to support the tourism sector by giving travelers access to internationally recognized products at competitive prices.
