Customs Clearance

The Government of Nepal has started the pave or modernization in Nepal Customs from the early 90's after when economic liberalization policies and practices have been adopted. This guided to choose one of the customs clearance tools to be introduced in order to improve government finance and to strengthen the economy of Nepal through increased efficiency in the foreign trade environment.

The Government of Nepal has selected UNCTAD'S ASYCUDA system for the computerization of their customs revenue collection and statistics gathering process and as the base tool to achieve the objectives. Government has made dry ports with modern facility and implement computerized procedure at major customs points to facilitate customs clearance.

Customs has developed national database (i.e. tax registration, vat registration, industry registration, currency exchange rate, banks, customs office, customs agents etc.)

Customs law, regulations and other Govt. notification made provisions and procedures to clear the export and import cargoes and to facilitate trade. It not only simplifies and promotes international trade, but also regulates unauthorized, illegal, and movement of contraband items. This procedure can be considered as an instrument for anti dumping and unwanted import restriction.

Passenger Clearance Procedure

The Baggage Rules of 1991 applies for (i) Nepalese traveling to and from third countries by air transport or via land routes, (ii) Foreigners traveling to and from Nepal by air transport or via land routes. It consists of list of goods and quantities that a passenger coming into Nepal can bring in or a passenger traveling abroad can take out in accompanied Form. The rules allow professional passengers to carry a set of related normal professional equipment of materials and daily essentials for their personal use in duty exemptions. Nepalese passengers coming from abroad get exemption based on duration of stay out. Both incoming and outgoing passenger's baggage are monitored in the X-ray machines and they are also opened and checked in if any suspicious pictures are seen in the X-ray screen. Passengers are subject to pay customs duties on quantities over and above the level specified by the rules. Passenger cannot carry contra-band items as drugs with them. In order to ensure passengers free from such contra-band, they are subject to body search on random or selective basis.

Export Clearance Procedure

The following items are restricted to export from Nepal: -

Goods of archaeological and religious importance such an antique, statues, coins etc.,                                                      [ TOP ]

Wild lives and materials made up of wild life bodies,

Drugs,

Precious metals,

Arms and ammunition and materials to make arms and ammunition, and

Industrial raw materials such as raw wool, raw skin, and timber.

A few food items such as rice, pulse, oil, seeds etc. are quantity-restricted items for export trade. There are different rate of duty on all export trade.

In the case of export to India, exporter should submit only the export declaration from, invoice, and certificate of concerned department (wherever necessary) along with the cargo. Due to free convertibility of Indian Rupee, L/C or advance payment document is not required.

Import Clearance Procedure

Same as in export, the Gazette Notification of 1992 has restricted the import of following goods into the country:

Drugs

Arms, ammunition and explosives

Liquors consisting of more the 60% alcohol,

Beef.

By Geo-physical situation Nepal is landlocked nation. She is locked her eastern, western and the southern sides by India and remaining northern side by china. The share of India Export and Import has dominated in total Nepalese international trade from the very beginning. This share still cannot be minimized even in the current days under liberalized, open competitive and free market economic policies it will not be inappropriate to describe some extent the trade relation between Nepal and India.

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