Nepal - Import TariffsNepal - Import Tariffs
Import tariffs are generally assessed on an ad valorem basis. Nepal uses the Harmonized Tariff System (HTS) for classification purposes. Import duty rates vary from zero to 80 percent. Live animals, fish, and most primary products are exempt from import duties if imported from India, while a duty of 10 percent is applied on imports of these items from countries other than India. Machinery or goods related to basic needs are charged at a 5 percent rate. Products considered hazardous to one's health, such as cigarettes, are taxed at Nepali Rupees 3,500 (approximately USD 35) per thousand pieces. Liquors are taxed at Nepali Rupees 1000 (approximately USD $10) per liter basis. Custom duties are generally assessed on the cost, insurance, and freight (CIF) value. Imported goods are also liable for a value-added Tax (VAT) of 13 percent levied on CIF plus customs duty value. Changes in the import tariffs, other duties, and taxes are generally announced through the annual budget, and later ratified by the Parliament before it is enforced. The annual budget for FY 2019/20 was released on May 29, 2019. In contrast to last year’s significant hike, this year’s Budget does not significantly raise excise duties on “luxury” items such as vehicles, alcohol and cigarettes. Interested parties are advised to consult the Department of Customs website for the updated tariff schedule: http://www.customs.gov.np/en/tariff.html.
Special Duty Reductions of five or ten percent have been given to imports from the Tibet Autonomous Region of the People's Republic of China, member countries of the South Asian Association for Regional Cooperation (SAARC), and designated most-favored nations.
Nepal is building its first Export Processing Zone (EPZ) in Simara, near the Nepal-India border town of Birgunj. This EPZ is expected to provide a special facility for the manufacture and export of garments in particular. Any industry exporting 90 percent or more of its products is entitled to privileges equivalent to those normally provided by an EPZ – e.g., no tax, duty, or fee is levied on the machinery, tools, and raw materials used by the industry in manufacturing the exported products. Export-oriented industries may also enjoy the benefits of bonded warehouse facilities. Raw materials can be imported via entry in a passbook without paying custom duty or VAT. The same value is deducted from the passbook upon export of the finished product. The enterprise must also submit a bank guarantee sufficient to cover applicable duties.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Special Duty Reductions of five or ten percent have been given to imports from the Tibet Autonomous Region of the People's Republic of China, member countries of the South Asian Association for Regional Cooperation (SAARC), and designated most-favored nations.
Nepal is building its first Export Processing Zone (EPZ) in Simara, near the Nepal-India border town of Birgunj. This EPZ is expected to provide a special facility for the manufacture and export of garments in particular. Any industry exporting 90 percent or more of its products is entitled to privileges equivalent to those normally provided by an EPZ – e.g., no tax, duty, or fee is levied on the machinery, tools, and raw materials used by the industry in manufacturing the exported products. Export-oriented industries may also enjoy the benefits of bonded warehouse facilities. Raw materials can be imported via entry in a passbook without paying custom duty or VAT. The same value is deducted from the passbook upon export of the finished product. The enterprise must also submit a bank guarantee sufficient to cover applicable duties.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.