According to reports, police have arrested the container driver identified as Sher Guwabo Ghale.
The 30-year-old driver has been arrested from his residence at Naukunda Village Council located in Timure of Rasuwa district in northern Nepal.
The gold was seized from the cabin of the container with a false button.
The market value of the seized gold is estimated to be 3.5 crore Nepali rupees.
The Kerung Port, the only functioning trade port between Nepal and China usually sees illegal smuggling of the precious metal.
According to the World Gold Council, 140 to 160 tons of gold was smuggled into Nepal in 2016 whereas the figure was around 120 tons during 2015.
The organization also claimed that most of the smuggled gold later gets exported to India from Nepal.