CAN Federation submits E-Commerce Directives 2082 policy recommendations to FNCCI ICT Development Committee

काठमाडौं ।

CAN federation has recently submitted E-Commerce Directives 2082 Policy Recommendations to FNCCI ICT Development Committee.

The enactment of the Electronic Commerce Act, 2081 and the subsequent E-Commerce Directive, 2082 marks a watershed moment for Nepal. While regulation is the cornerstone of trust, the IT industry led by the CAN Federation believes that policy must move at the speed of innovation, not the speed of bureaucracy.

As Nepal transitions from an unregulated “digital wild west” to a formal legal environment, this framework outlines the industry’s vision for a resilient, entrepreneur- friendly, and secure digital marketplace.

The “Secure Growth” Pillars

For Nepalese e-commerce entrepreneurs to compete globally, our regulatory framework must rest on three non-negotiable pillars: Security, Simplicity, and Sovereignty.

1. Security: From Compliance to Resilience

In my experience as a cybersecurity professional, “encryption” is not just a checkbox; it is a shield.

• The Recommendation: The government should not just mandate data protection but provide a National Minimum Security Standard (NMSS). Startups shouldn’t have to guess how to protect customer data.
• Trust through Transparency: propose a “Trust Seal” for registered Nepalese platforms that meet these standards, giving consumers the confidence to move away from Cash-on- Delivery (COD).

2. Simplicity: The “Single-Window” Registration

A digital business should not require physical footprints at ten different government offices.

• The Framework: We advocate for a Unified API-driven Registration. When a Nepalese entrepreneur registers on the Department of Commerce portal, their PAN, VAT, and OCR details should sync automatically.
• Tiered Ecosystem: We must distinguish between a global marketplace and a home- based artisan. A “one size fits all” system will only kill the startup spirit.

3. Sovereignty: Data and Infrastructure Data is the lifeblood of the modern economy.

• Incentivized Localization: The 2082 guidelines should offer tax rebates for companies hosting data in local Tier-3 data centers. This ensures that the personal information of Nepalese citizens remains within our borders.

Strategic Recommendations for the 2082 Guidelines

Balancing Liability and Innovation

The current draft places a significant burden on intermediary platforms. We recommend a Safe Harbor Provision. If a marketplace has done its due diligence on a vendor and has a working grievance system, it should not be held liable for a vendor’s individual product defect. This allows platforms to scale without fear of legal overreach.

The Digital Payment Transition

To achieve the “Digital Nepal” vision, we propose a Fee Holiday for small-ticket digital transactions. Working with Nepal Rastra Bank (NRB), we can make digital payments cheaper than the logistics cost of handling physical cash.

The 90-Day Transition Roadmap

The current 35-day window for registration is ambitious but practically difficult for SMEs. We recommend a 90-day “Technical Assistance” period, where the government provides workshops rather than fines, helping businesses align with new e-invoicing and data standards.

Empowering the Digital Frontier: Technical Insights

The transition must protect not only the consumer but also the business growth. Key operational adjustments are required:

1. Categorization for Inclusive Growth: Micro-businesses (student startups, home- based women-led businesses) should be encouraged to sell via established platforms. They should be vividly showcased as a “New Business” to inform consumer choice while keeping investment low.
2. Rationalizing Penalties: The proposed 3 to 5 years of imprisonment for platform failures creates a climate of fear. We recommend removing imprisonment and replacing it with categorized financial fines.
3. Price Transparency & Integrity: Guidelines must address the “nuisance” of price differences where products are hiked online and discounted offline. Sellers must also be responsible for real-time updates of price and availability.

Comparison: The 2082 Impact Assessment

The Path Forward: A Collaborative Economy

The Electronic Commerce Directive, 2082 should not be a “policing” document but a “partnership” document. By incorporating these industry recommendations, we can ensure that Nepal is not just a consumer of global tech, but a creator of a secure, sovereign, and thriving digital marketplace.

“Our goal is not just to regulate trade, but to build a digital future where every Nepalese entrepreneur has the security to innovate and the platform to reach the world.” Chiranjibi Adhikari.

One of the primary structural barriers to e- commerce growth in Nepal is the inability of businesses to efficiently process international digital payments. Since modern e-commerce is inherently cross-border, current foreign exchange restrictions limit Nepalese enterprises to a domestic market, preventing global scalability. To address this, the e- commerce directive should explicitly recognize cross-border digital payments as a critical enabler of trade. This can be achieved by establishing a multi-stakeholder inter- agency working group comprising MoICS, NRB, CAN Federation, npCERT, CSRI Nepal, and private sector associations to develop a safe, phased, and compliant framework for international payment solutions that aligns security with economic expansion.

FNCCI ICT Development Committee Chair, Shakti Kumar Begani

“The recommendations submitted on the draft e-Commerce Directives 2082 reflect a strong understanding of Nepal’s digital economy needs. CAN Federation and its Senior Vice President, Mr. Chiranjibi Adhikari, have played a commendable role in consolidating stakeholder voices and presenting practical, forward-looking policy suggestions. Such initiatives are vital for building a secure, inclusive, and innovation-driven e-commerce ecosystem in Nepal.”

FNCCI ICT Development Committee Co- Chair

“We highly appreciate the leadership and policy initiative taken by CAN Federation Senior Vice President and tech entrepreneur Mr. Chiranjibi Adhikari. The stakeholder consultation-based recommendations

submitted to the e-Commerce Directives 2082 are timely and constructive. Contributions from CAN Federation, including IPP Mr. Ranjeet Kumar Poddar, will significantly support the government in formulating progressive and business-friendly ICT and e- commerce policies.”