Customs Regulation, 2007

Rule 7. Export or Import of goods for repair

1) In case it becomes necessary to send any goods to a foreign country from Nepal for the purpose of repair or to bring such goods into Nepal from abroad after repair thereof, full particulars regarding the number,  and size and specification of such goods, as far as possible, shall be filled up in the declaration form  and submitted to the Customs officer.

2) In case any declaration form as mentioned in subrule (1) is received, Customs officer may allow passage for such goods, after receiving deposits equivalent to 0.5 percent of the value of goods for aircrafts, helicopters or spare parts thereof and 5 percent of the value for the other goods.

3) Goods exported to foreign country for repair shall have to be brought back within three months and Customs duty is chargeable on the expenses involved  in such repair or on the price of the spare parts which are replaced. The chargeable Customs duty will be deducted from the amount of the Customs deposit furnished  and the balance of the deposit will be refunded. 

4) In case time limit prescribed in subrule (3) for bringing back such goods after repair is inadequate, an application accompanied with documentary evidence of such inadequacy shall be submitted to the Customs officer.  The Customs officer may, if he so deems appropriate, extend the time limit by a period not exceeding three months. In case the additional time limit is inadequate, the Customs officer should write to the Director General of the Department of Customs with the reasons and in case the Director General approves the extension of the time limit, the Customs officer should extend the time accordingly.

5) As per this rule, the goods exported for repair are not brought  back within the time limit prescribed under sub-rule (3) and (4) but brought back after the lapse of time limit, the deposited amount shall be seized and such goods shall be treated as fresh import and Customs duty shall be chargeable accordingly.

 6) In case it becomes necessary to bring any goods from  a foreign country to Nepal for the purpose of repair or to send back such goods from  Nepal to  abroad after repair thereof, full particulars regarding the number, specification and size of such goods shall be filled up in the declaration form and submitted to the Customs officer.

7) In case any declaration form as mentioned in sub-rule (6) is received, Customs officer may allow passage for such goods, after receiving deposits equivalent to the chargeable Customs duty and noting the time limit of six months for the export of such goods.

8) As per sub-rule (7), the goods imported for repair is returned within three months  time limit and the documentary evidence is presented for the payment of repair, the  Customs duty deposited at the import time   shall be refunded. In case  goods are not returned or the specification of the goods did not match with the goods that is presented for export or documentary evidence  for the payment is not presented,  such goods and the deposited  amount at the time of importation shall be seized.

9) In case airline company registered to operate airlines have to  export engines of airplane or helicopter for repair and during the period of repair if the airway company has to import engine on rent from the foreign country , the company may import engine  on bank guarantee equivalent to Customs duty  in the Customs office and such import should be for maximum period of six months. If the engine is exported within the period, the bank guarantee will be released. If the engine is not exported within the period, the Customs duty should be  charged treating engine as fresh import.

10) Notwithstanding the provisions mentioned in the rule, on the recommendation of the Ministry of Foreign Affairs, the diplomatic mission may export to repair goods and import after repair without deposit and on record.