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Sonauli: The smuggling network of expensive smartphones, particularly iPhones and their spare parts, is suspected to be expanding rapidly along the India-Nepal border. Exploiting the difference in retail prices and import duties between the two countries, smugglers are procuring costly smartphones in India and transporting them into Nepal. Border villages and rural connecting routes are suspected of being used to move the contraband. Over the past week, more than three major seizures of mobile phones and spare parts in Sonauli and Nepal’s Rupandehi district have drawn the attention of security agencies to this illicit trade. In Sonauli town last week, police seized six iPhones and a motorcycle during an operation, though the suspect riding the bike managed to escape by taking advantage of traffic congestion, and the motorcycle also went missing from the spot. Meanwhile, consignments of mobile phones and spare parts have also been seized from Indian-registered motorcycles in Nepal’s Rupandehi district.
Supply Network Suspected From Border Villages to Butwal
Security agencies suspect that a supply network for mobile phones operates from Sonauli and nearby border villages to Belahiya, Bhairahawa, and Butwal in Nepal. On November 8, police in the Lumbini Cultural Municipality area of Rupandehi seized mobile parts worth nearly seven lakh Nepali rupees, including iPhone batteries, back panels, AirPods, tempered glass, and curved glass. Around the same time, police recovered iPhones valued at approximately five lakh rupees from two Indian youths in the Bhairahawa bypass area. Beyond recent seizures, major recoveries over the past two months point to the scale of the trade. On October 17, police in Rupandehi district seized mobile displays and body panels without valid customs documents, valued at around 9.18 lakh Nepali rupees. Earlier, on October 11, authorities in the Sarawal area of West Nawalparasi recovered 930 mobile phones, 1,765 pairs of AirPods, and thousands of tempered glass pieces worth over one crore Nepali rupees. On June 30, 35 iPhones valued at about 19.70 lakh Nepali rupees were seized from an Indian-registered motorcycle in Kotahimai Rural Municipality of Rupandehi.
Price Gap and Customs Duties Drive Illegal Trade
The price difference for iPhones between India and Nepal is considered a primary factor fueling the smuggling. According to a mobile shopkeeper in Sonauli, the official price of the 256 GB model of the iPhone 17 in India is 99,900 rupees, whereas an authorized retailer in Nepal sells it for about 1,73,499 Nepali rupees, which equals roughly 1.08 lakh Indian rupees. This creates a price gap of around eight thousand rupees between the two markets. In Nepal, import duties and other taxes push up the cost of smartphones in the authorized market. Smugglers attempt to earn higher profits by evading the customs duties applicable on iPhones and the five to 18 percent customs duty levied on mobile parts.
Authorized Traders Face Losses as Surveillance Intensifies
Bhairahawa-based mobile trader Aman Gupta noted that while large quantities of smartphones are imported into Nepal from China, premium phones like the iPhone have a separate market. When taxes and other costs are added during authorized imports, prices increase, allowing illegal traders to capitalize on the demand for cheaper phones and causing losses to legitimate businesses. Nautanwa Circle Officer Basant Kumar Singh stated that smuggling will not be allowed under any circumstances and instructions have been issued to step up vigilance in the border area. He added that continuous surveillance is being conducted along the border in coordination with the Sashastra Seema Bal, suspicious activities are being monitored, and efforts are underway to reach the roots of the smuggling network.
