Government of Nepal Ministry of Industry, Commerce and Supplies Trade and Export Promotion Centre
Guide to Importing
Nepal has an open and transparent import regime. The import-related rules and regulations are governed by the Ministry of Industry, Commerce, and Supplies (MoICS) and its various entities, along with the Department of Customs under the Ministry of Finance.
Rules related to import
List of prohibited items
Paying for imports
Imports from India are normally paid in Indian Rupees. However, the Nepal government allows imports of some products from India with payment in hard foreign currency.
For imports from the third country, the government does not allow advance payments for goods and separate payments for freight. In addition, with the exception of prohibited and quantitatively restricted goods, there is no restriction on the release of foreign currency for importing any type and quantity of goods. But to obtain foreign currency from the commercial bank, the importer has to get a letter of credit (L/C) issued by fulfilling the requirements of the bank.
Irrevocable L/C is the commonly used documentary credit for the settlement of payment in imports from third countries
An importer fills in a foreign exchange control form BBN 3 requesting the bank to open an L/C in the name of a nominated overseas exporter, and submits it along with an undertaking of the importer identifying the bank against any liability, and other supporting documents. Depending upon the credit limit sanctioned by the bank for L/C purpose and the relation with the bank, the importer is generally required to deposit an amount ranging from 10 to 100 percent of the L/C value at the bank. Note that the transaction may not necessarily be channeled through banks. Banks are authorized to draw drafts or telegraphic transfers (TTs) for settlement of payment in credit imports, provided that the Nepalese importers approach banks with documentary evidence. Much of the imports from India are under this scheme due to the extra cost attached to payment through L/C.
For importing raw wool, TEPC issues a recommendation letter (wool specification test report) specifying the quantity and standard of wool to be imported by an applicant/importer in the name of the concerned bank. Under the widely used L/C, full payment is made to the exporter by the correspondent bank at the time of submission of shipment documents as specified in L/C. Similarly, the Nepali importer is also required to make full payment to his bank at the time of the release of shipment documents.
Being a landlocked country, most of Nepal’s international trade takes place via transit in India. Nepali cargo is mostly routed through Indian ports at Haldia and Kolkata in West Bengal but since 2016 Vishakhapatnam Port in Andhra Pradesh is also being used for Nepal bound freight. From the respective ports, goods are transshipped through railways or roadways to Nepal’s border customs. Importers can also use airfreight to deliver their goods to Nepal via Tribhuvan International Airport in Kathmandu.
Importing from India
Upon submission, the customs office takes processes of the application and sends the commodities for clearance upon imposing required tariffs.
Importing from India (In-bond process)
Upon submission, the customs office takes the process further and sends the commodities for clearance upon imposing required tariffs.
Importing from the third country via India
Importing from Bangladesh
Importing from the third country via Bangladesh
Importing by Air