Nepal - Customs and duties

Nepal Customs And Duties 1355
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Customs and duties are a principle source of domestic revenue. Import tariffs are generally assessed on an ad valorem basis, with duties ranging from 0% to 140%. Most primary products, including live animals and fish, enter duty-free. Machinery and goods related to basic needs are charged 5%. Duties on agricultural imports were fixed in 2003 at 10%. Cigarettes and alcoholic beverages are charged at 100%, although alcoholic beverages with more that 60% alcohol are prohibited altogether. Other prohibited imports include narcotic drugs and beef and beef products. Products that may be imported only under special licenses include arms, ammunition, and explosives; and communication equipment, including computers, TVs, VCRs, and walkie-talkies. Valuable metals and jewelry are prohibited except under bag and baggage regulations. According to the World Bank, Nepal's weighted average tariff rate in 2000, the most recent data available, was 17.7%. This average probably increased in 2001 and 2002 because of "security surcharges" levied on most imports. No special fee was assessed on goods with tariff rates less than 2.5%. For goods with charged duties up to 5%, the surcharge was 1%, and for all those with duties above 5%, the surcharge was 3%.

The export service charge is 0.5% and there are export duties on vegetable ghee and plastic goods of 2 to 10%. Prohibited exports include archeological and religious artifacts; controlled wildlife; narcotics; arms, ammunition and explosives; industrial raw materials; imported raw materials, parts and capital goods; and timber and logs. Since 1960, under the duty refund procedure (DRP), India has refunded to Nepal the excise duties levied on its exports to Nepal. Goods imported from India are granted a rebate of the application of ad valorem of 10% in tariff rates up to 40% and of 7% on rates above 40%.

Nepal, under bilateral trade agreements with India, has in past been afforded duty-free or preferential entry. However, the most recent India-Nepal Treaty of Trade, signed March 2002, while it continues to allow Nepali manufactures to enter the India market on a non-reciprocal, preferential or duty-free basis, with rules of origin less restrictive than the international norm (Nepal's manufacturers can have up to 70% foreign content instead of a international norm of less than 50%), India placed quotas on four sensitive imports: vegetable fats, acrylic yarn, copper products, and ferro oxide, all at volumes lower than recent Nepali exports to India.

In 1995, Nepal joined the seven-member South Asia Association for Regional Cooperation (SAARC), and has ratified SAARC's South Asia Preferential Trading Arrangement (SAPTA). Under SAPTA, members have agreed to about 5000 tariff reductions among two or more of the members. However, plans to establish a free trade area by 2002 have been delayed.

Nepal has applied for accession to the World Trade Organization and submitted the required memorandum on its foreign trade regime in June 1998. The first meeting of the Working Party was in May 2000 and market access negotiations began in September 2000. A second meeting of the Working Party was held in September 2002, but expectations for accession to the WTO by the end of 2002 have not been realized.

Smuggling is substantial across the Indian border, especially on lumber goods, labor, construction equipment, currency and weapons. Gold smuggling is thought to be particularly large. Official records show substantial imports of gold, but few gold exports, even though it is well known that most of the gold imports are intended for the Indian market. Recent efforts to combat smuggling appear to have at least changed the dominant mode from men driving trucks and buses to individuals, many women and children, driving bicycles.

The Customs Act of 1997 sought to simplify custom procedures, but there have been persistent complaints about the gap between policy and practice, particularly in terms of delays and arbitrary assessments. Under the program of economic reforms for FY 2002/03, the government has announced an intention to introduce a post-clearance audit as a means of reducing complaints about customs evaluation.

User Contributions:

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Aug 18, 2010 @ 5:05 am
Is there any monopoly or arbitrarory right for custom officer or Director General of custom department to reasses as post clearence audit?
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Sep 5, 2010 @ 5:05 am
The general overview of the nepalese custom and duties described here is very informative. It has covered the general practice of import from and export to the india only. More than this Nepal has got the WTO Membership in 23 April 2004 but the article explains about the progress of working party in around 2000. So it is requested to update the information prevailing for last 10 years in Nepalese business, commerce and import and export scenario. Also covers the amendment taken place in the laws and regulation of Nepal as per the WTO member.
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Jul 9, 2011 @ 1:01 am
ramesh poudel
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Aug 4, 2011 @ 7:07 am
how much percentage is for importing electrical vehicles?
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Aug 12, 2011 @ 11:23 pm
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Sep 18, 2011 @ 2:02 am
i want to know the taxes of cement, if any of the nepali importer import cement from other countries
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Oct 2, 2011 @ 10:22 pm
Is the news about reduction of costum duty on bikes how much percentage will duty be reduced?i wanna buy a bike. Should i buy it now or wait 4 some time?
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Oct 25, 2011 @ 7:19 pm
I import cashmere from Nepal industry. All over the world I am asked to wire money 50% at time of order and 50% at time after I receive the goods and they are in good acceptable condition.

I was told by one manufacturer that 100% of the product must be paid before it leaves Nepal. Is this a legal requirement or is this what this industry is saying?

Thank you
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Dec 7, 2011 @ 8:20 pm
i want to know that what is the rules to export the medicine in nepal from india and what is the custom rules in india and nepal
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Dec 18, 2011 @ 5:05 am
I want to export the readymade garments to India.What will be the duty charged on Nepal Custom?
Gikmi Sherpa
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Jan 20, 2012 @ 12:00 am
what is the import tax percentage to import essential oils from India to Nepal?
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Feb 18, 2012 @ 7:07 am
i want to export chewing tobacco from my manufacturing unit to nepal. what custom duty will be levied in nepal
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Feb 27, 2012 @ 7:07 am
I am working aboard and giving lots of remittance to Nepal government. Is there any facility on the taxes likes duties tax exemption/reduction while I am importing one car with me that is I am driving in Japan for 4 or 5 years!
What is the import taxes for used vehicle to Nepal?
Thanks for suggestion!
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Mar 2, 2012 @ 9:21 pm
Is it true that custom duty on vehicles is being reduced. Plz inform me about it soon cus i want to buy a car . If its reducing when will it reduce and by how much?
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Apr 9, 2012 @ 8:20 pm
I'm looking to export dried herbs and spices, but I can't seem to find any information on restrictions or limits on these items. If anyone has any information it would be greatly appreciated. Thanks
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Jun 1, 2012 @ 10:10 am
I want to export the ayurved medicine India to nepal.What will be the duty charged on india Custom?
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Jun 26, 2012 @ 5:05 am
We want to export agriculture equipment. so please inform me custome duty in %.
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Jul 1, 2012 @ 2:02 am
I send white sage which is dry leaves to Nepal and a company in Nepla is createing products from it which will be send to me in Australia and i pay the company for it. First time I am been hit with a 100% import tax. Could you please tell me why the tax for dry leaves is so high? If Nepal import tax is so much i have to look in future to move products to a different country.
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Jul 23, 2012 @ 5:05 am
What are the formalities related with importing ladies garments in india from nepal for commercial process??
Dipesh Acharya
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Aug 13, 2012 @ 9:21 pm
What is the tax rate on restaurant equipments from India or China?
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Aug 23, 2012 @ 7:07 am
I need some data about import tax policy/custom duty rate on vehicles in Nepal. How many vehicles enter each year in Nepal and what was the tax rate each year. It is very important to know me please who have some reference about it provide some information ta me on my email.
Rajesh Bahadur
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Oct 26, 2012 @ 12:00 am
If i need to Transport A bike or A car to Nepal From India. Them what will be the cost of Transpotation charges.
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Nov 16, 2012 @ 9:09 am
i want to imports varieties of electronic goods from different countries for my newly open business. so what's the percentage on imports goods and what are the procedure to imports.
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Nov 29, 2012 @ 2:02 am
At what rate costom duty is leviable in bike and vehicles in nepal?
Niraj kc
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Dec 17, 2012 @ 2:02 am
I m gonna bring my used stuff back to nepal but eager to know about customs chargees, would u pls mind to explain me How much I need to pay for 23' computer monitor,
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Feb 6, 2013 @ 1:01 am
What is the percent of Custom Duty of textile materials while importing from India and China?
naroj bhattarai
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Mar 13, 2013 @ 4:04 am
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May 25, 2013 @ 9:09 am
what are the ID rates for importing artificial metal jewellery to Nepal from Indian and third country..?
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Nov 7, 2014 @ 4:16 pm
I want to import agriculture equipment from Beijing china. so please inform me customs duty in %. just one pics each rice harvester, thresher and rice trans-planter.

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