Nepal
Nepal - 1.3 Customs Information
Export to PDF
Home
Nepal

The Nepalese Customs Administration collects customs duty, Value Added Tax, excise and other taxes at the border points. It accounts for 44% of the total revenue and 50% of the total tax revenue of Nepal. Customs duties alone contribute 20% of the total tax revenue in Nepal  

Duties and Tax Exemption 

A tax exemption can be agreed with the Ministry of Finance (MoF) for importation of humanitarian goods under strict rules. The organizations must be registered in Nepal and need to request MoF for the tax exemption with a recommendation from the Social Welfare Council (SWC) and relevant line ministries or can request to the MoF directly if the organization has an Agreement (e. g. Umbrella Agreement) or Memorandum of Understanding with MoF. MoF will grant tax exemption as per the Government policies, rules and regulations. For more information on Nepal's custom authorities and contact information, please see the links below:  

4.1 Nepal Government Contact List 

Emergency Response 

Agreements / Conventions Description 

Ratified by Country? 

Date of Ratification 

WCO (World Customs Organization) member 

Yes 

22 July 1986 

Annex J-5 Revised Kyoto Convention 

N/A 

  

OCHA Model Agreement 

Yes 

31 May 2007 

Tampere Convention (on the Provision of Telecommunication Resources for Disaster Mitigation and Relief Operations) 

Yes 

23 April 1999 

 

Regular Regime (Non-Emergency Response) 

The Customs Act 2064 was ratified in 2007 with First and Second Amendments ratified in 2009. The full details of the current Nepal Customs Act can be found at the Customs Act, 2064 (2007) 

Organizational Requirements to obtain Duty Free Status 

United Nations Agencies 

 The UN has a long-standing agreement with the Government of Nepal for duty-free importation.   

Non-Governmental Organizations 

The government has a provision to provide duty-free exemption to NGOs on an event basis.  It doesn’t have a provision to provide exemption by long-term agreements.  NGOs need to apply for duty-free exemption through the Social Welfare Council (SWC) by following specific procedures. 

 

Exemption Certificate Application Procedure 

Duties and Taxes Exemption Application Procedure 

Generalities  

Request for exemption is first sent to the Foreign Aid Division of the Ministry of Finance. Once the Finance Secretary or the Minister (depending upon the threshold) approves the request, the approval is sent to the Customs Department at the intended entry point where an Import Permit will be issued. Generally, importers or exporters within the territory of Nepal have to furnish the following shipping documents regarding their importation or exportation of commodities: 

  • Compulsory Documents:  

  • Shipper’s Import/Export declaration form (BPP) 

  • Invoice 

  • Packing list 

  • Letter of credit 

  • Certificate of origin 

  • Certificate of insurance 

  • Bill of Lading / Airway Bill/ Airlines Cargo Delivery Order (DO)/International Transport Document-CMR  

  • Shipper’s declaration for dangerous goods  

  • Industry Registration Certificates 

  • Permanent Account Number (with VAT Registration and Income Tax Registration if not exempt). 

  • For goods over USD 100,000 in value: A request or concurrence letter from the relevant line ministry (for example for medical supplies from the Ministry of Health and Population for medical supplies). 

Additional required documents for Food Items: 

  • Optional Documents:  

  • Duty- exemption letter (in case of diplomatic or exemption status); 

  • Customs Transit Declaration (CTD) for import only; 

  • Generalized System of Preferences GSP Form A (certificate of origin) for ready-made garments and carpets exportation to India and the European Union. 

  • Concurrence certificate from the Department of Archaeology, Wildlife, Forestry, or any other agency when required for exported goods; 

  • Phytosanitary certificate. 

Process to be followed  

  1. Goods over 100,000 USD value: obtain request or concurrence letter from line ministry; 

  1. Submit request for exemption to the Ministry of Finance's Foreign Aid Division; 

  1. Finance Secretary approves request; 

  1. Finance Secretary issues letter to Customs Department at intended entry point; 

  1. Customs Department entry point issues Import Permit; 

  1. Goods cleared through Customs at entry point. 

  1. For food items, prior approval is required from DFTQC (Department of Food Technology and Quality Control) and/ or PQPMC (Plant Quarantine and Pest Management Center) depending upon types of food to be imported. The link to access both departments is NNSW - Login (Nepal National Single Window). Company or person with PAN number need to be pre registered in the system to get the import permit. 

Exemption Certificate Document Requirements 

Duties and Taxes Exemption Certificate Document Requirements (by commodity) 

  

Food 

NFI (Shelter, WASH, Education) 

Medicines 

Vehicle & Spare Parts 

Staff & Office Supplies 

Telecomms Equipment 

Invoice 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

AWB/BL/CMR/Other Transport Documents 

Yes, 1 original, 3 copies* 

Yes, 1 original, 3 copies* 

Yes, 1 original, 3 copies* 

Yes, 1 original, 3 copies* 

Yes, 1 original, 3 copies* 

Yes, 1 original, 3 copies* 

Donation/Non-Commercial Certificates 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Packing Lists 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Other Documents 

3 original Phyto- sanitary certificates, 3 copies, 1 original Certificate of Origin, 3 copies* 

N/A 

N/A 

3 original Phyto- sanitary certificates, 3 copies, 1 original Certificate of Origin, 3 copies* 

N/A 

1 original permit from the Department of Telecommunications, 3 copies* 

Additional Notes: *Applies to both UN and NGO’s. 

I/NGO’s have different procedures from the UN. I/NGO’s must be registered with Social Welfare Council, Ministry of Finance with notification from the Ministry of Foreign Affairs. After the registration procedure is done with the above-mentioned entities, application for registration is made to the Department of Customs. All customs clearance and duty exemption requests are submitted first to the Ministry of Foreign Affairs which checks and certifies the documents. If the items requested for duty exemption are on the Government-approved list (issued by the Ministry of Finance) then the request is approved and processed. If the items are not on the Government-approved list, the request must be submitted and approved by the Ministry of Finance. Documents required for this request are: 

  • Bill of Lading; Air waybill, International Transport Document 

  • Insurance policy (only for commercial goods for risk of loss); 

  • Certificate of Origin; 

  • Certificate of Analysis 

  • Invoice; 

  • Packing List; 

  • Mode of Payment (grant, donation, non-commercial certificate). 

 

Customs Clearance 

General Information  

The delays at Border Posts can take up to 4 days during peak times before major holidays in October and November (such as Dashain and Tihar). It is critical to get all the paperwork accurate and correct. 

Customs Information 

Document Requirements  

See the table below. 

Embargoes 

None 

Prohibited Items 

Importation of narcotic drugs, beef and beef products, valuable metals and jewellery are prohibited except under bag and baggage regulations. Prohibited exports include archaeological and religious artefacts, controlled wildlife, narcotics, arms, ammunition, explosives, industrial raw materials, imported raw materials, parts, capital goods, timber and logs. 

General Restrictions 

Products that may be imported only under special licenses include arms, ammunition, explosives, communication equipment, computers, TVs, VCRs, Drones, and walkie-talkies. 

Customs Clearance Document Requirements 

Customs Clearance Document Requirements (by commodity) 

  

Food 

NFI (Shelter, WASH, Education) 

Medicines 

Vehicles & Spare Parts 

Staff & Office Supplies 

Telecoms Equipment 

D&T Exemption Certificate 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Invoice 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

AWB/BL/CMR/Other Transport Documents 

Yes, 1 original, 3 copies* 

Yes, 1 original, 3 copies* 

Yes, 1 original, 3 copies* 

Yes, 1 original, 3 copies* 

Yes, 1 original, 3 copies* 

Yes, 1 original, 3 copies* 

Donation/Non-Commercial Certificates 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Packing Lists 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Yes, 3 originals, 3 copies* 

Phytosanitary Certificate 

Yes, 3 originals, 3 copies* 

N/A 

N/A 

N/A 

N/A 

N/A 

Other Documents 

(not required approval for UN org except Telcom equipment) 

N/A 

Approval from Ministry of Women, Children and Social Welfare must be obtained. 

Approval from Ministry of Women, Children and Social Welfare must be obtained. 

N/A 

Approval from Ministry of Women, Children and Social Welfare must be obtained. 

Approval from the Ministry of Communication must be obtained for the frequencies and bandwidth to be used. 

Additional Notes: *Applies to both UN and I/NGO’s. 

In order to clear goods through Customs, the final duty-free exemption letter will be obtained from the Head of Customs and will be addressed to the Customs Officer at the border crossing point. It will authorize an approved clearing agent to clear the goods as per the specifications contained in the approval letter. 
There is no enough cold chain storage available for vaccines at TIA custom cargo and normally Vaccine Center, Logistics Management Division-LMD, Teku clear the shipment in the same day due to temperature-sensitive items. 

Customs clearance procedure for relief materials (Emergency Response) 

The Nepal “Customs clearance procedure for relief materials, 2017” is applicable for customs clearance of humanitarian relief materials to be used in a disaster situation. materials, 2017” is applicable for customs clearance of humanitarian relief materials to be used in a disaster situation. 

Fast-Track Duties and Taxes Exemption Application Procedure 

Generalities  

The following relief materials can be imported for search, rescue and relief: 

  1. Food 

  1. Medicine and materials required for treatment 

  1. Clothing 

  1. Blanket 

  1. Tent, Mattress and temporary residential construction materials 

  1. Prefabricated house including essential merchandise 

  1. Floor covering, mattress and articles of bedding 

  1. Mosquito nets 

  1. Water purifying medicines and equipment 

 

Relief materials can be imported through the following major customs offices in general: 

  1. Tribhuvan International Customs Office, Gauchar, Kathmandu 

  1. Gautam Buddha International Airport, Siddharthanagar, Rupandehi 

  1. Mechi Customs Office, Kakarvitta, Jhapa 

  1. Biratnagar Customs Office, Rani, Morang 

  1. Birgunj Customs Office, Birgunj, Parsa 

  1. Dry port Customs Officer, Sirsiya, Parsa 

  1. Bhairahawa Customs Office, Belahiya, Rupandehi 

  1. Krishnanagar Customs Office, Krishnanagar, Kapilbastu 

  1. Nepalgunj Customs Office, Nepalgunj, Banke 

  1. Kanchanpur Customs Office, Mahendranagar, Kanchanpur 

  1. Tatopani Customs Office, Liping, Sindhupalchowk 

  1. Rasuwa Customs Office, Rasuwa 

Note: Besides these major entry points there are other small entry points.  

Agencies eligible to import relief materials for search, rescue and relief are: 

  1. The United Nations and UN Agencies, 

  1. Governmental (GOV), Intergovernmental (IGO), and Non- Governmental (NGO) organizations certified by the UN and following the framework of UN relief operation. 

  1. Transport carriers contracted by these agencies for transportation of relief consignment(s) and/or possessions of disaster relief personnel as bona fide participants within the framework of a UN relief operation. 

  1. International humanitarian organizations, institutions, and agencies under agreement with the Government of Nepal. 

  1. Government agencies of a foreign country. 

  1. Organizations importing relief materials intended to deposit in a warehouse specified by the Government of Nepal. 

  1. Any other agency as specified by the Government of Nepal. 

Provision for temporary import of relief materials for the use in search, rescue and relief operations can be granted on the condition of re-export of such goods and maintaining a record of details of the goods. 

After a disaster or emergency, the Ministry of Home Affairs or Ministry of Finance can issue a directive to waive customs duties and taxes for importation of priority relief items* for a specified time period. Notwithstanding the list above, the government can amend the list to add or delete items, which will be specified in the directive by applicable customs sub-title category and by relief item type. 

The national logistics cluster will share the customs duty waiver directive with humanitarian agencies.  

For Fast-Track customs clearance of relief materials, the Government departments involved, and the Customs department will expedite clearance of the relief materials to complete customs clearance within 24 hours or less, round the clock, provided that the customs declaration is complete and complies to the requirements. Clearance will also be done with priority when documents are submitted prior to the arrival of the relief materials. 

The Fast-Track process has the same steps and document requirements as the regular regime (non-emergency response). 

In case a national emergency has been declared, a “One-stop shop” may be started, that brings together staff from all the selected government agencies necessary to expedite clearance of humanitarian relief cargo. This was done at Tribhuvan International Airport during the 2015 earthquake relief operations, and during the COVID-19 response.   

Process to be followed  

  1. Goods over 100,000 USD value: obtain request or concurrence letter from line ministry. 

  1. Submit request for exemption to the Ministry of Finance's Foreign Aid Division. 

  1. Finance Secretary approves request. 

  1. Finance Secretary issues letter to Customs Department at intended entry point. 

  1. Customs Department entry point issues Import Permit. 

  1. Goods cleared through Customs at entry point. 

Documents to be submitted for the Customs declaration: 

  1. Invoice or donation letter with details (including the value of the goods) or Simplified Declaration Form as per Annex-1 of the “Customs clearance procedure for relief materials, 2017” 

  1. Packing list. 

  1. Bill of lading or airway bill or International Transport Document.  

  1. Authorization letter addressed to Customs to release the goods on behalf of the importer. 

  1. Customs Transit Declaration (CTD) form in case of third-country import. 

  1. UN Certificate duly signed has to be submitted for import from the UN and UN related agencies. 

When immediate release of the goods is required imported by the UN or its specialized agencies or to be imported on the recommendation of Ministry of Foreign Affairs or imported on behalf of Government, the same shall be permitted even if temporary or incomplete declaration is made, provided the required documents are submitted and the necessary Customs procedures are complied with, within 30 days of the release of the goods. 

 

 

As per the OCHA Model agreement, which was signed on 31 May 2007, the government shall do the following regarding the importation of disaster relief supplies during a national emergency:  

  • Waive of import duties and taxes for priority relief items* imported by the UN agencies or organisations (I/NGO’s) involved in UN disaster relief operations for distribution free of charge to victims of the disaster in Nepal. 

  • Facilitates the issuance of transit visa for inland cargo transport and port facilities clearance of relief consignments coming to Nepal via India with the Government of India. 

  • Facilitates importation or temporary admission of equipment and disaster relief personnel for disaster relief operations. 

  • Makes arrangements to release promptly the maximum number of relief consignments after arrival, upon presentation of provisional entry documents, subject to fulfillment of customs and other requirements within a specified time limit. 

As per the Tampere Convention, which was signed on 23 April 1999, the Government of Nepal will facilitate the provision of prompt telecommunication assistance to mitigate the impact of a disaster. Regulatory barriers that impede the use of telecommunication resources for disasters are waived. These barriers include the licensing requirements to use allocated frequencies, restrictions on the import of telecommunication equipment, as well as limitations on the movement of humanitarian teams. 

* List of Humanitarian Priority Items: As of 2019, the Government of Nepal, Ministry of Home Affairs is working to update the list of humanitarian priority items for relief operations in Nepal. During large-scale emergencies, if a national emergency is declared and international assistance has been requested by the Nepal government, the government can issue a directive to waive customs duties and taxes for importation of the priority relief items listed for a specified time period.  

Transit Regime 

The majority of Nepal’s imported goods are shipped through the ports of India, namely Kolkata, and the information contained in this section applies to this transit regime.  

  • All cargo documents for clearing should be filed with the shipping line, port authority, and customs authorities for clearing and possession of cargo.  

  • Cargo is unloaded from the ship by the port authorities. If the cargo is in containers and these are not to be forwarded to the Indo-Nepal border, then de-stuffing is done at the port at the cost of the importer.  

  • The shipping line gives possession of the cargo to the importer's clearing and forwarding agent after examining the original Bill of Lading and all shipping documents.  

  • The importer's clearing agent gets the cargo appraised by Indian customs authorities who open the container(s) and conduct inspection in accordance with the cargo documents (invoice, packing list, etc.) After a satisfactory inspection, customs authorities endorse the import license and other cargo documents and seal the container(s) so that it can be forwarded to the Indo-Nepal border.  

  • The importer's clearing agent should obtain a transit insurance policy for the Indian import duty leviable in favour of the Collector of Customs.  

  • After completion of these formalities, the Customs authorities issue a Customs Transit Declaration (CTD) form that allows movement of Nepal-bound cargo from the Kolkata Port to the land customs post at the Indo-Nepal border. 

  • After the CTD, on request of the clearing agent the shipping line will issue a Delivery Order. 

  • An “Undertaking Letter,” one per shipment, is issued by the Nepal Consulate in Kolkata upon request of the importer (or importer’s clearing agent), to indemnify the Nepal Transit & Warehousing Co. Ltd., (NTWC) and Consulate General of Nepal in Kolkata from any loss and shall not be held liable if the consignment is diverted to any other place except Nepal.  

  • The cargo goes to the Continental Freight Temporary Storage facility. The rate is $250/day / container. As of 2019, the government of Nepal has built its own Container freight station (CFS) at Kolkata port. This CFS with a capacity to store 500 containers is cheaper as the storage facilities operated by the Kolkata Port. 

  • When all documents are ready (undertaking letter, delivery order, CTD, Bill of lading and all shipping documents, the Port Authority issues a gate pass and the container or cargo is ready for transit to Nepal. 

  • Transit can be by rail (departs 6 days a week, but during COVID-19 pandemic twice a week) or by road, which is the choice of the importer and importer’s clearing and forwarding agent.  

The Nepal Department of Customs (DOC) has graduated  its core Customs automation system from ASYCUDA++ to the web-based ASYCUDA World, with assistance from the Asian Development Bank. ASYCUDA world is being used at 24 main customs entry points of Nepal, covering 99.5 percent of the international trade.  

Custom Legislation 

Jump to top