The smuggler identified as Bibek Shrestha received the bullets fired by police who were chasing the contrabandists Sindhupalchowk district, 100-km east of capital Kathmandu.
The police also recovered 71 pieces of red sandalwood.
Some 50 people were heading for Khasa to make the illegal trade of red sandalwood into China via Tatopani check-point, police said.
