Celebrating International Customs Day with Nepal's Path to Modernization

International Customs Day is celebrated each year on the 26th of January and regards the customs administrations’ critical functions such as societal and economic security, trade facilitation, and economic prosperity. Every year, the World Customs Organization (WCO) puts out its International Customs Day theme to underscore the most recent challenges and opportunities regarding customs. The WCO theme for 2025 is “Customs Delivering on its Commitment to Efficiency, Security, and Prosperity”. This theme indicates the commitment to the development and modernization of customs processes around the globe.

Nepal Customs has made notable progress in using digital tools and automation, with ASYCUDA World as the main system for declarations in major customs offices. Many modules support data-based operations, including risk-based targeting, creating risk profiles, forecasting trade and revenue, valuation, and providing trade statistics to the public. The launch of a National Single Window system has made trade easier by allowing regulatory bodies to issue licenses, permits, certificates, and other documents online. A notable development in the utilization of AI in the Nepal Customs is the application of AI driven Harmonic code search.

Achieving effective risk management and data analytics has been one of the cornerstones of improving efficiency, transparency, and compliance in customs. The building blocks of big data and artificial intelligence and machine learning enables decision-making, risk assessment, and resource allocation within the Customs to be more effective. Data driven techniques help mitigate the unidentified and managed trends, patterns, and trade compliance risks. They also facilitate the targeting and profiling of different threats on the basis of risks. These improvements augment the effectiveness of transparency and accountability in customs.

Even after these changes took place, Nepal Customs have some challenges during the process of a fully data rich environment. The issues such as legal framework on incorporation of AI in customization of frameworks, data strategy, data quality, infrastructure and capacity building need to be resolved for the effective use of emerging technologies. The customs personnel need orientation and capacity building to achieve maximum benefit out of data analytics. It is imperative to foster an innovation culture within the organization because when the innovation change resistance is removed progress is continuously made.

Enhancing security measures is another priority for Nepal Customs in the fight against illicit trade and smuggling. With respect to these activities the non intrusive inspection, enhanced border control and especially working together with international partners will earn paramount importance. Furthermore, active stance towards crisis set up, especially environmental and cyber crisis, will build more strength and maintain the ongoing stability.

As global trade continues to transform, Nepal Customs is at a crucial point both for prospects and for problems. Achieving modernization is not only about utilizing new techniques, but also about enabling an entire system that can integrate innovation and economic growth while ensuring safety. Nepal’s customs operations can be transformed into a powerful engine for national economic development by purposefully putting resources into the digital infrastructure, enhancing the ability of people, and cultivating a culture of constant change. The way forward is an integrated, comprehensive, and bold approach which puts emphasis on the inclusion of technology, and at the same time preserving the systems that rely on human skill for positive impact.