Import / Export (Protocol)
The registered Firm or Company is entitled to import of the goods in Nepal, Tribhuvan international Airport (TIA), Kathmandu is the only a gateway for traffic by air in Nepal except for prohibited and quantitatively restricted item. No license is required for imports. For the import from India, the payment is made normally in Indian currency but for procurement of some industrial raw material and machinery, payment in hard currency can also be made as per notification of NEPAL RASTRA BANK for the product specified. The firm or company to follow up the procedure of import is required to prepare and present the following documents for import into Nepal by Air for custom clearance.
- Nepal custom import declaration form.
- Letter of authority for clearing Agents to act on behalf of the importer.
- Air way bill.
- Performa Invoice.
- Packing list.
- Certificate of origin (this is required only for tariff concession for goods originating in Tibet Autonomous Region of People’s Republic of China, SAPTA member countries and MFN Rate of countries having bilateral agreements with Nepal).
- Certificate of Insurance Policy.
- Foreign Exchange Declaration Form of NEPAL RASTRA BANK.
- Certified copy of L/C.
- Company Registration Certificate.
- VAT/PAN registration certificate.
- Permission from Plant Quarantine Section of Department of Agriculture for import of plants and plants product including fruits leaves & seeds.
- Import license if applicable.
All the above documents except Air way Bill and additional following documents are required to import for third country by sea.
- Bill of lading.
- Custom transit declaration.
- Transit declaration invoice for goods if transit in India/Bangladesh for import from third country.
The registered firm or company to follow up procedure of export to third country by air freight is required to prepare and present the following documents for exports from Nepal:
- Custom Declaration Form
- Packing List.
- Certificate of Origin.
- GSP Certificate if applicable.
- Copy of letter of credit or advance payment statement received from the bank.
- Foreign Exchange declaration Form of Nepal Rastra Bank.
- Copy of Firm/Company Registration Certificate
- Copy of Income Tax Registration Certificate or VAT Registration.
- Airway Bill.
- Letter of authority to clear the consignment.
- Phytosanitary- Certificates for Agricultural products / plants.
- Certificate from Department of Archaeology for the export of statues, Thankas, Wood Carving of archaeological value etc.
- CITES Certificate from the Department of National Parks and Wild Life Conservation for the export of bones and horn products.
- Value certification from the Handicrafts Association of Nepal for handicrafts goods, Gold and Silver products.
- Value added Tax Certificate for beer, spirits and cigarettes.
- Passbook for gold handicrafts from Handicrafts Association of Nepal if applicable.
- Clearance certificate of Department of Drug Management for medicines.
- Clearance certificate of Department of Mines and Geology for mineral products.
- Certificate of origin from local Chamber of Commerce.
All the above documents except Air Way Bill and additional following documents are required for export to third country by sea/land
- Transport manifesto, one copy per truck (for sea cargo)
- Custom transit declarations (for sea cargo)
- Transit declaration invoice for goods in transit via Indi
The Following are the conditions for accepting goods for Shipping: It is imperative that you provide us with the detailed information on your intended shipment so as to render you our best possible services.
- When clearing personal items, the customers must attend the customs office with our staff during the clearing process.
- A copy of the customer`s passport and /or citizenship papers must be kept with the shipping documents.
- The customers and/or their suppliers must fill up a declaration form when goods are being delivered.
- When Capital Import and Export House Private limited and other wings act as shipper, Capital Cargo International Private Limited must do the packing of the all the goods in our warehouse.
- When goods are delivered, and a Declaration form has been filled out, a thorough check must be carried out to verify whether they are correctly matched and are complete.
- An information form must be completed for each customer`s shipment.
- Please notify us beforehand if you have any fragile or anything which needs special packing.
- Capital Cargo International Private Limited will only pick up goods from the supplier`s shop, factory or warehouse. Deliveries from outside addresses will not be accepted.
- We will only accept goods that are accompanied by a supplier`s bill with supplier`s name, company name, address, customer`s name and duly stamped by the supplier.
- In case a supplier does not have his original bill, whoever delivers the goods must fill in the declaration form & countersign accordingly.
- The customers or the suppliers must duly complete the Information Form & complete other documentation for preparing the shipment. Then we will sign a unique S.REF NO (Capital Import and Export House Private limited No.) and S.B.NO (Shipment Booking No.). This process is expected to take 15-20 minutes. To help us to understand your needs and to provide you with our best service, please provide us detailed information on your intended shipment.
- A copy of the customer`s passport of citizenship must be filed with the shipping documents.
- If a customer wants to use us Capital Import and Export House Private limited as the shipper, then traveler’s cheque or foreign currency has to be deposited into our account which should be equivalent to purchase price of intended goods. Once we have been provided an advance payment certificate from the bank, you will be provided Nepalese rupees to commence your buying. This procedure is obligatory for export. Either you can pay your suppliers direct or we can pay them on your behalf.
- For the condition to send the shipment on Cash against Document (CAD) terms, the customer has to fill the request form provided by Capital Cargo International Private Limited. The validity of the CAD would be 90 days. Therefore, money should arrive outside addresses will not be accepted.
- When Capital Import and Export House Private limited is shipper, Capital Cargo International Private Limited will do all the packing of your goods in our warehouse.
- We will only accept goods that are accompanied by a supplier`s bill with supplier`s name, company name, address, customer`s name and duly stamped by the supplier. If a customer has no bill for the goods which he/she has purchased from different suppliers, then he/she has to fill the Invoice provided by Capital Cargo International Private Limited.
- In case credit given by the supplier, both the customer and the supplier should fill up the agreement form provided by Capital Cargo international Private Limited.
- You are required to inform us of fragile items as they may require special attention/packaging.
- Handling charges for your goods depend on the types of goods and your packaging requirements.
- The customers must duly complete the Information Form & complete other documentation for preparing the shipment. The shipment will be assigned under S.REF NO (Capital Cargo International Private Limited No.) and S.B.NO (Shipment Booking No.). This process is expected to take 15-20 minutes. To help us to understand your needs and to provide you with our best service, please provide us detailed information on your intended shipment.
- A copy of the shipper`s passport is required.
- List of items delivered for shipping.
- The customers have to notify us beforehand if they have any fragile or valuable items.
- The shipper must be present with original passport at the customs office with our personnel for the Nepalese customs clearance.
- Either, the goods have to be delivered to our warehouse for inspection/packaging and document preparation, or a notice to pick up the goods must be given at least 24hrs before the intended shipment preparation.
- Air freight has to be prepaid in foreign currency.
- Minimum agent charge is US$25 and an additional US$ 1 per kg is charged for more than 25 kg. This cost covers documentation, shipment preparation, export duty, customs clearance, transportation and packaging.
- Normally, we leave around 12:30pm for the customs office and it takes about 2 hours (approx.) to complete the custom`s formalities.
- Air Way Bill will be ready around 6:30pm once a clearance has been made. You may collect the airway bill the same evening or the next day.
- The customers must duly complete the Information Form & complete other documentation for preparing the shipment. The shipment will be assigned under S.REF NO (Capital Cargo International Private Limited No.) and S.B.NO (Shipment Booking No.). This process is expected to take 15-20 minutes. To help us understand your needs and to provide you with our best service, please provide us with detailed information on your intended shipment.
- A copy of the passport is required.
- You need to sign on the Letter of Authorization Form for customs clearance provided by Capital Cargo International Private Limited.
- Letter from the employer stating the duration of your work in Nepal.
- We need to be informed few days in advance depending on the volume of shipment for packaging.
- Articles of Archaeological and Religious Importance.
– National and foreign coins of archaeological value.
-Statues of gods and goddesses, palm leaf inscription (Tad Patra), leaf inscription (Bhojpatra).
-Scroll (Thanka Paintings) of historical importance.
- Conserved Wildlife and related articles Wild animals.
– Bile and any part of wild animals.
-Musk and Cows, Oxen, Snake and lizard skin.
– Marijuana, opium, hashish (As defined in the Single Convention on Narcotics, 1961)
- Metals and Jewellery
-Valuable metals and jewellery (except permitted under bag and baggage regulations and products manufactured by Nepalese industry except of diamonds.
- Articles of industrial importance.
-Explosive materials and related fuse or materials needed for fuse.
-Materials used in the production of arms and ammunition.
- Industrial raw materials.
-Raw hides and skin (including dry salted)
- Other products.
-Mamira (golden thread root used as medicine)
-Log and Timber (woods)
- Products Under Quantities- Restrictions:
-Rice, Wheat, Gram, Black Peas, Rap-seed, Maize, Arahar, Lentil, Mustard, Yellow Mustard Seed, Poppy Seed, Raw Silk exceeding 100kg without L/C. Products as notified by His Majesty`s Government in the Nepal Gazette, from time to time.
Notes: -The Ministry of Commerce will decide from time to time, the goods to be included under the category of quantities- restrictions and volume of their exports.
-The Ministry of Commerce will interpret as to which of the products listed above, will be permitted to export.
The following is a list of items that require special written permission from the government departments before export:
- Department of Archaeology:
Any bronze, brass, copper or silver statue, any Thanka paintings, illustrated manuscripts, wooden masks or woodcarvings and other carved goods.
- Department of Veterinary Science:
The meat, skin or flesh (dried or otherwise) of wild or domestic animals.
- Department of National Parks & Wildlife:
Skulls, horns, tails, hooves or other body parts of domestic animals.
- Quarantine Department:
- Mine Department:
Stones / rocks
- Department of Forest:
Incense powder, rudrakshi beads.
- Plant Resource Department:
There is no benefit or advantage, a local supplier can possibly derive by quoting the name of foreign buyer in the invoices of the products meant for delivery to export promotion house.
Export promotion house, (defined in Industrial Enterprise Act of Nepal as a company or firm established as prescribed with the objective of gathering the products of the industries established in Nepal and exporting them to foreign countries) secures export orders, buys, procures, and gathers the exportable products from the local manufacturers and arranges for the exports.
It is to be understood that in following the aforementioned process, local manufactures and sellers are not, ipso facto, exporting the products. They are simply selling the products to export promotion house. It is the export promotion house who eventually exports the product and gets the recognition as exporter.
It is not therefore uncommon to notice in the Nepal market, the bills and invoices of local manufactures and sellers in the name of foreign buyers, while selling the products to Export Trading House in Nepal.
Export promotion house collects products from ABC Garment & Exporters, a local manufacturer, to export to foreign buyer “Mr. A” in Canada. ABC raises invoices in the name of Mr. A, Canada as if it is exporting to Mr. A and delivers the invoices and products to export promotion house.
Bills and invoices are the only documents giving legal title / ownership of the goods to the person, entity in whose name bills and invoices are. The moment legal title/ ownership of the goods is transferred, the risk and rewards associated with the goods also passes on to the buyer.
Similarly in above example, risk and rewards has not passed on to the export promotion house, because of the discrepant invoices. As a result, any loss, theft, damages of the product during the possession of export trading house may have to be personally borne by the local manufacturer and the export trading house has a reason to deny the claim. It is also difficult to justify the payment process, as the invoice is in the name of overseas importer “Mr. A, a Canadian” whereas the payment comes from export promotion house in Nepal.
Export promotion house will also be deprived of the VAT refund. Since the invoices are not in the name of Export promotion house, Income Tax Department will have a reason to reject the VAT refund process.
Likewise, Income Tax Department will also not allow the purchases of Export promotion house as a deductible expenditure, since the purchase bills and invoices are not in the name of export promotion house.
Insurance claim of export trading house for any loss, theft or damage of the product may also be denied since the ownership of the product does not lies with the export trading house.