Customs Law and Regulations in Nepal -

Legal Framework Governing Nepalese Customs

Nepal’s customs operations are governed by:
✔ Customs Act, 2064 (2007)
✔ Customs Regulation, 2065 (2008)
✔ Finance Act (annual updates)
✔ Treaty agreements (SAFTA, WTO, BIMSTEC)

Key Customs Authorities

Authority	Jurisdiction	Contact
Department of Customs (Head Office)	Policy formulation	01-5110091
Customs Offices (15 border points)	Operational clearance	Local offices
Revenue Investigation Department	Compliance enforcement	01-4260511

Import/Export Procedures

1. Documentation Requirements

For Imports	For Exports
Commercial Invoice	Export declaration form
Packing List	Certificate of Origin
Bill of Lading/AWB	Phytosanitary certs (if applicable)
Import License (restricted items)	Quality certification

2. Clearance Process Flow

Submit documents electronically via ASYCUDA World
Pay duties/taxes at designated banks
Physical inspection (if flagged)
Release order issuance
Goods collection from customs point

Duty Structure & Tax Calculation

Customs Duty Rates

Category	General Rate	Concessional Rate
Raw Materials	5%	1-3%
Capital Goods	10%	5%
Consumer Goods	15-30%	–
Luxury Items	60-200%	–

Additional charges:

VAT: 13% (on CIF + duty)
Excise Duty: Item-specific (5-300%)
Special Fee: 1.5% of CIF

Prohibited & Restricted Items

Strictly Prohibited

✖ Narcotic drugs
✖ Counterfeit currency
✖ Hazardous waste
✖ Religiously offensive materials

Restricted (Require Special Permits)

✔ Gold/silver (NRB approval)
✔ Pharmaceuticals (DDA permit)
✔ Agricultural products (MoALD permit)
✔ Communication equipment (NTA approval)

Customs Valuation Methods

Transaction Value (primary method)
Identical Goods Value
Similar Goods Value
Deductive Value
Computed Value
Fallback Method

Recent Reforms (2025 Updates)

✔ Electronic Cargo Tracking System (eCTS) mandatory for transit goods
✔ Single Window System integration with 12 agencies
✔ Revised HS Code alignment (2022 version)
✔ Green Channel facility for AEO-certified traders

Compliance & Penalties

Common Violations

Offense	Penalty
Under-invoicing	200% of evaded tax + possible seizure
Misclassification	100% of duty difference
Smuggling	Confiscation + imprisonment (up to 5 years)
Document falsification	NPR 500,000 fine + blacklisting

Special Programs

Duty Exemption Schemes

✔ Export-Oriented Units (100% raw material duty waiver)
✔ Special Economic Zones (5-10 year tax holidays)
✔ Diplomatic Privileges (under Vienna Convention)

FAQs About Nepalese Customs

1. How to check customs duty for specific items?

→ Use HS Code search at customs.gov.np

2. What’s the time limit for clearing goods?

→ 7 days (free storage), then demurrage charges apply

3. Can individuals clear imports without agent?

→ Yes, but complex shipments require licensed customs brokers

4. How to appeal customs valuation?

→ File review petition within 35 days to Customs Commissioner

5. Are samples duty-free?

→ Yes, if value <$50 and non-commercial quantity

Pro Tips for Smooth Clearance

✔ Pre-clear documents via ASYCUDA
✔ Verify HS codes before shipping
✔ Maintain audit trails for 5 years
✔ Use AEO status for faster processing

Need Assistance? Contact:

Customs Helpdesk: ☎ 01-5110091
Trade Facilitation Center: https://tradeportal.nepal.gov.np

💡 Navigate Nepalese customs smoothly with proper compliance! 🛃