FAQ

Frequently Asked Question


Q 1. What are the formalities to be completed to import goods in Nepal from third countries?

The formalities to be completed are:

• For the purpose of commercial import private/ partnership firms are to be registered in the DoCSM, companies in the Office of the Company Registrar and industries in the Department of Industry.

• Agency for cargo should be registered as agent in the DoCSM.

• Should have certificate of registration in the Value Added Tax (VAT)

• Should have contract paper with exporter or pro-forma invoice of the description, quality and value of goods.

• Request letter with contract paper or pro-forma invoice to the bank to open L/C.

• Bank then open the L/C accepting some cash or on guarantee according to its rules and regulations to make payment through bank to the buyer in the foreign country.

• After receiving the L/C, the exporter of foreign country ships the goods and shipping documents. After receiving the shipping documents by the bank of importing country, collects full amount of L/C from the importer to makes payments to the exporter.

• The L/C opening bank sends all sealed certified documents including Bi. Bi. Ni form 4 to the customs point where the import would take place.

• The procedure of customs clearing starts after the submission/ registration/ transmission of the declaration form, attaching all above mentioned documents to the customs office.

• The goods can be removed from customs office after paying all chargeable duty, tax as per rules and regulations.

• The clearing of goods can do only by the owner of the goods or an agent authorized by the owner of the goods as per provision of law.

Q 2. What are the products allowed for importation from overseas without import licence and L/C (except those products, which are listed under-bidding and prohibitions)?
  • Necessary emergency medicine sends as gift by an individual or institution to a seriously ill patient residing in Nepal. - Printed materials such a poster, calendar etc. brought for publicity.
  • Products notified as free from customs duty and sales tax by the Government of Nepal, Ministry of Finance. - Products of a value up to US$ 100 received as gift or prize while participating in a meeting, conference at the invitation of the foreign Government or International Institution.
  • Products donated or gifted to Nepalese institution/association with the permission of the concerned Ministry by a friendly country or International/Regional Association, Institution, Social Organization or Individual,
  • Products imported for personal use by a foreigner employed under an agreement in Project and joint Venture Project in Nepal on the recommendation of the concerned Ministry. - Advertisement, label, sticker and sample materials bearing the logo of a Company or Firm up to a value of US$ 100,
  • Office related products up to a value of US$ 100 send by the Head Office of Foreign Company, joint Venture Company or Foreign Airlines to their Nepal based Representative office, Branch office or General Sales Agent (G.SA.) - Goods under Bag and Baggage notification, and gold, silver up-to the fixed quantity.
  • Raw silk up to 100 kg.
Q 3. What are the list of sensitive products under SAFTA?

Information about the list of sensitive products under SAFTA can be accessed by clicking here 

Q 4. Can you advise the duty rate to import goods into Nepal?

A. The duty rates to import goods into Nepal can be found by searching the commodities list for the particular goods you are to import. Please click here to perform this search.     

Q 5. What is an HS Code, and how can I find the HS Code for the goods I want to import to Nepal?
Find an explanation of HS Code here and to search the commodity (HS Code) database by goods name to find the applicable HS Code.
Q 6. Can I bring food or plant materials into Nepal?
Yes, as long as the food items conform with the laws and regulations regarding these materials. Click here to view the laws, regulations, etc. and look for specific requirements or click here to search for any specific measures that may be applicable from time to time.
Q 7. Can I clear my goods at any Customs office or must they be cleared at a specific Customs office?
You must clear the goods at the Customs office of the border post where the goods are imported or exported.    
Q 8. How do I obtain a Certificate of Origin?
The Procedure of Obtaining a Certificate of Origin can be found by clicking here.
Q 9. Where do I apply for the required permit to import goods into Nepal?
You can apply for the permit at the responsible agency for those goods. To check which permit is required and where it may be applied for you can search the commodities database here.
Q 10. How can I source products and producers in Nepal?
The Nepal Trade Information Portal is being expanded to provide access to Nepali traders and their product catalogues. Watch this space for new features and functions focused on promoting and enabling trade with Nepal.
Q 11. How many customs offices are there in Nepal?

There are 30 customs offices within Nepal. Where they are?

In land route there are 9 in Northern borders, 20 in border with India and one in air route i.e. T.I. Airport Customs Office in Kathmandu.

Q 12. Which are the customs offices in border with India?

They are:

Pashupati Nagar Customs Office Mechi Customs Office
Biratnagar Customs Office  Sunsari Customs Office
Rajbiraj Customs Office Siraha Customs Office
Janakpur Customs Office  Jaleshwor Customs Office
Sarlahi Customs Office Gaur Customs Office
Birgunj Customs Office Mahakali Customs Office
Dry Port Customs Office Bhairahawa Customs Office
Krishnanagar Customs Office Koilabas Customs Office
Nepalgunj Customs Office Rajapur Customs Office
Kailali Customs Office Kanchanpur Customs Office
Q 13. Which are the customs offices in Northern Border?

They are:

Tatopani Customs Office Olanchungola Customs Office
Kimathanka Customs Office Yarinaka Customs Office
Lamabagar Customs Office Rasuwa Customs Office
Larke Customs Office Mustang Customs Office
Mugu Customs Office  
Q 14. Which are the sub-customs offices authorized to trade with India?

They are

 Thadi Viswa
Mahespur Suthauli
Prithivipur Bhadrapur
Sati Gularia
Darchula  
Q 15. What are the goods to be exported/ imported through the sub-customs offices? Are there limit of value or quantity?

The sub-customs offices except Bhadrapur, Thadi, Viswa, Mahespur, Suthouli, Prithivipur, Sati, Gularia and Darchula are authorized to export or import as follows:

• On the import, the goods worth up to NRS Five Thousand.

• On the export, unprocessed agricultural products and natural local Nepalese products. These export and import can be done with bordering countries only.

Q 16. Which is the customs office engaged in air route trade?
That is Tribhuvan International Airport Customs Office.
Q 17. Which customs offices are allowed to deal with exportation to/ importation form third countries?

They are

Mechi Biratnagar
Dry port Birgunj
Bhairahawa Nepalgunj
Kailali Tatopani
TIA  
Q 18. Is there any special provision to import gold and silver?
• Gold can be imported up to 15 kg per day by the commercial bank only. Other are not allowed to import 
• Silver can be imported under normal procedure, the commercial firms can also imports silver.
Q 19. How much is the customs duty for Gold? What is about VAT?
On the importation of gold, the customs duty is Four thousand two hundred rupees for each 10 grams. VAT is not charged.
Q 20. How much is the customs duty for silver? What is about VAT?
On the importation of silver, the customs duty is Five thousand six hundred rupee for each one kilo. VAT is not changed.
Q 21. Is there any special procedure to import diamond?
There are no any specified special procedures to imports diamond. Hence, it can be imported as normal procedure.
Q 22. How much is the customs duty on diamond? VAT is changed or not?
Only one percent of the value is charged as customs duty on diamond importation and VAT is not charged.
Q 23. How much is the customs duty on other valuable stones except diamond importation? VAT is changed or not?
Only one percent of value is charged as customs duty on the importation of other valuable stones as well and VAT is not charged.
Q 24. What is the procedure to import personal vehicle used while working in the Nepalese diplomatic mission abroad?
The Nepalese citizen returning after completing tenure who has worked in the Nepalese diplomatic mission abroad is allowed to import personally used vehicle on the permission of the Ministry of Environment, Science and Technology. The other Nepalese citizen is not allowed to import the personally used vehicle in Nepal.
Q 25. What are the provisions relating to import vehicle in Nepal from abroad?
The following conditions should be fulfilled: 
• It should be brand new 
• It should be in accordance with the Nepal Vehicle Mass Emission Standard, 2069(2012) 
• The authorized seller in Nepal of the vehicle exporting company only can import the vehicle in Nepal.
Q 26. Can the employee of foreign diplomatic mission located in Nepal bring the personally used vehicle in Nepal?
On the recommendation of Ministry of Foreign Affairs in a condition that it should returned back letter on .
Q 27. Can used goods be allowed to import in Nepal from abroad?
The used goods are not allowed to import except mill machinery not exactly 10 years of manufacture date by the industry for its own use and machinery, equipment by ongoing foreign aided project for the operation of project.
Q 28. Which valuation method applies for the used goods?
The transaction value method can not be applied for used goods. The customs officer applies the reasonable method to value the used goods.
Q 29. What is the mode of payment regarding import of goods from Tibet the autonomous region of China?

The modes of payment are:

• L/C

• Draft or convertible foreign currency payment as specified by Nepal Rastra Bank

• Traditional Barter System

• Nepalese resident within 30 km distance of the border are allowed to import the goods up to the amount of NRs.16000 without payments through banking system

Q 30. Which goods can be imported through barter system?

The goods are:

• Raw Wool

• Live Goat and Sheep

• Salt

• Yak and Yak Tails

• Carpet

• Herbs

Q 31. What are the documents to be submitted in the customs while imports are under barter system?

The documents are:

• Declaration Form for Import

• Declaration Form of already Exported Goods

• Invoice • Document of Insurance

• Packing List

• Transportation Document

• Certificate of Registration of Firm or Company

• Certificate of Registration of Industry in case of Industry

• Certificate of VAT Registration

• Appointment Letter of Agent in case of appointed Agent

Q 32. How much the maximum value of Drat or T.T can be used for the import at one time?
The goods worth up to U.S $30000 can be imported at one time through Draft or T.T.
Q 33. Is any permission required for the import though Draft or T.T?
There is no need of any permission of any institution while importing through Draft or T.T from Tibet but in case of import of third country goods via India through Draft or T.T permission of DoCSM is required.
Q 34. What are the Prohibited/ banned goods for import?
• Health hazardable narcotic intoxicating goods such as hashish, heroin, opium, muffin etc. 
• Beef 
• Hazardous ouzo dyes as specified by the Government of Nepal through publishing the notice in Nepal gazette time to time 
• Plastics scrap and bags and sheets of plastics below the 20 micron thickness 
• High carbon disposing incandescent light bulbs 
• Goods prohibited/ banned by other existing laws 
And stacklector or combined harvester with baler
Q 35. What are the goods to be imported under license or permission letter?
• Narcotic and psychotropic medicine and raw-chemical for those medicine on the recommendation of the Ministry of Home Affairs. 
• Arms and ammunitions, explosive substance, materials required to produce explosive substance, guns and bullet for gun caps except paper and other explosive substance, arms and ammunitions on the recommendation of the Ministry of Home Affairs. 
• Radio equipment such as wireless, walkie-talkie, transmission receiver, link radio equipment etc., and similar kind of radio equipment such as transmission of words, dialogue, scene and statistics on the recommendation of the Ministry of Communication
Q 36. What are the goods under quantitative restriction?
Quantitative restriction for import is on poppy seed only.
Q 37. What should be done to import poppy seed?
License should be obtained from the Ministry of Commerce and Supply.
Q 38. Are there any goods which can be imported only by specified institution or association?
Yes, Salt Trading Corporation Ltd. and Nepal Oil Corporation Ltd. are the specified institution to import ionized salt and petroleum product (petrol, diesel, kerosene, aviation fuel and LP gas) respectively.
Q 39. What are the prohibited/banned goods to export from Nepal?

• Archaeological, historical and religious goods of importance: 
a) foreign and Nepalese coin 
b) Idol of god and goddess, Tad Patra, Bhoj Patra 
c) Pauwa 


• Wild Fauna: 
a) on mammal 26 species are included 
b) on avis 9 species are included 
c) on reptile 3 species are included 

• Aakhetopahar (dead body or identifiable any part of body or any substance of the body or goods made from mixture of substances of endangered species of wild fauna) 
• Intoxicating and Narcotic goods (the intoxicating and narcotic goods including hashish, heroin, opium, as defined by the UN Convention Against Traffic in Narcotic Drugs and Psychotropic Substance, 1988 and Single Convention on Narcotic Drugs, 1961 
• Exclusive and materials for arms and ammunition: 
a) Explosive substance and fuse for it and materials required for fuse 
b) Materials required for production of weapons for military use 
• Industrial machinery, parts thereof and raw materials: 
a) raw skin 
b) raw wool and hair of wild fauna 
c) industrial machinery and parts thereof 
• Forest products: 
a) Dactylorhiza hatagirea and juglans regia 
b) Herbs without permission of concerned institution and without processing ? Nardostachys grandiflora ? rouwlfia serpentina ? Valeriana jatamasi ? Lichen spp ? Abies spectabilis ? Taxus spp ? Cinnamomum glaucescene c) Wood log and swan timber of: ? Shorea robusta ? Dalbergia ? Pterocarpus marsupium ? Juglans regia ? Wild sissoo d) Rock exudat e) Cordyceps sinensis and picrorhiza scrophulariifolia f) Orchids, red sandal; • Petroleum products: a) Petrol b) Diesel c) Kerosene d) L.P Gas e) Aviation Fuel (other than used by airlines for international flight) 

Q 40. What kind of wood of forest product can be exported?
Log and swan timber of Sissoo (except wild), teak, and eucalyptus produced in own land can be exported on the recommendation of the District Forest Office. 
Q 41. Can red sandal and Orchids be exported?
These are listed in the appendix of CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora). Hence, needs the official certificate of CITES for export or import of red sandal and orchids.
Q 42. In what situation the mill machinery imported by an industry can be exported or sold abroad?
In the case of: 
• Such mill machinery are not in use to the industry and 
• In a situation if the industry is closed
Q 43. What is the process of exporting mill machinery?
On the recommendation of the Department of Industry it can be allowed to export without contravening the provisions under any bilateral treaty. This means mill machinery imported from third country are not allowed to export India.
Q 44. Can the raw materials imported by the industry be exported?
If certain conditions are fulfilled raw material can be exported. The conditions are: 
• If the imported raw materials are not use to own production of an industry. 
• If it does not contravene the provisions under any bilateral treaty. 
• If the Department of Industry grants permission to export 
Q 45. If is the imported mill, machinery, raw materials, parts are found different from that of the description mentions in the purchase order or found sub-standard, what would happen?
Such goods imported to Nepal are allowed to take back on the condition to re-import similar goods or remittances of equivalent foreign exchange.
Q 46. Are there any goods on quantitative restrictions to export from Nepal?
There is quantitative restriction on some goods such as paddy, rice, wheat, pigeon peas and sugar (except to be received from European Union).
Q 47. Is there any value limit to export by post parcel?
• Up to U.S $ 5000 if the payments are made under approved banking system. 
• Up to U.S $ 500 if the payments are not made under approved banking system.
Q 48. Is there any solution if the amount exceeds U.S $ 5000 or U.S $ 500?
The license should be obtained from the DoCSM.
Q 49. Can Nepalese distributing agency of reputed products producing International Company re-export the imported goods?
Yes, the Nepalese agency can export the goods without license within the region for which the agency is authorized. 
Q 50. What types of goods are allowed to export under Open General License (OGL)?
• Non prohibited or non banned goods for export 
• The goods which need not any permission from any institution.
Q 51. Is there any provision to inspect and release the goods by the customs in the product site or in warehouse for the purpose of export?
Yes, there is. For this first of all declaration from with application should be submitted in the customs office and in case of valid reason the customs office inspect and release the goods for export. For this type of inspection one thousand rupee as a fee should be paid and the vehicle for the transportation should be managed by the exporter himself.
Q 52. Whether the customs duty is same on imports from any country?
There is some rebate on chargeable customs duty on import from India, Tibet of China and SAARC countries. This kind of rebate is provided according to the provisions mentioned in the Finance Act.
Q 53. How to know the rate of revenue to be paid in customs office while importing different goods?
It can be known from Finance Act/ Finance Ordinance. It contains the rate of customs duty and other tax and duties as well. The Act/Ordinance is published in Nepal gazette which can be obtained from the Department of Customs and the Customs Offices. 
Q 54. Are there goods on which full exemption in the customs duty are granted on import?

Full exemptions on the customs duty are granted on importation of following goods: 
a) 
• Eggs of silk worm 
• Edible salt 
• Electrical energy 
• Sheath contraceptives 
• Wood swan or chipped 
• Books, newspaper, journals 
• Silk worm cocoons suitable for reeling 
• Wool, not carded or combed 
• Cotton, not carded or combed 
• Cotton waste including yarn waste and garneted stock 
• Cotton carded or combed 


b) Pet chips to be imported by the industry producing P.O.Y 
c) Fertilizer 
d) Sindur (vermilion), Bangles, Tika, Tikuli 
e) Raw jute to be imported by the jute industry, postal stamp, post card, aerogram, passport, excise stamp to be imported by the government and traditional calendar (Patro) and printed books. 
f) P.O.Y and man-made staple fibers to be imported by the yarn industry registered in the Value Added Tax 
g) Chassis, engine, motor and battery charger to be imported by the registered industry producing electric, solar or battery operated three or four wheeler passenger or cargo vehicle 
h) Blood bags, transfusion set, testing kits, re-agent and different apparatus and chemicals to produce blood testing re-agent to be imported by the Nepal Red Cross Society to provide blood transfusion services. 
i) White cane, slate stylus, Braille note taker, Bralo (Braille printer), water and light indicative machineries, Braille type writer, Braille watch, abacus, magnifying glass, Braille compass, Braille book, Braille embosser, Braille stencil machine to be used by blind. 
j) Wheel chair, tri-cycle, crutches, artificial parts of the body, hearing aids and shoes to be used by disabled. 

Q 55. Is the customs duty charged on goods of short shipment?
For the short shipment, it should be certified by the Customs Commissioner in CTD at Calcutta. At the releasing process the importer should deposit all the duty in the customs office and, the importer should submit proof of receipt of insured amount from the insurance company. Then the Ministry of Finance may decide to grant exemptions on short shipment in this circumstance. 
Q 56. Is the customs duty charged on partial lost goods on route or lost due to an accident?
For the partial lost or stolen goods the customs duty is not rebated but in case of those goods losses in an accident, the importer should submit proof of receipt of insured amount from the insurance company. After receiving the proof, the Ministry of Finance may decide to grant exemption of duty on goods losses on accident.  Duty exemption in case of compilance to customs act .
Q 57. Can the temporary imported goods, under the condition to return back letter on, be kept in Nepal by paying chargeable duty?
• Vehicle brought under carnet or vehicles imported on temporary basis registered in abroad, by paying customs duty, can not be kept in Nepal permanently. This provision applies to diplomatic mission as well. 
• Vehicles, machinery, equipment and apparatus imported by a project or contractor under bilateral agreement and other goods imported for fair, exhibition and hatbazar on the temporary basis can be kept in Nepal by paying chargeable duty within the specified period.
Q 58. How long the temporarily imported vehicle can be kept in Nepal and what is the chargeable duty?
The vehicles can be kept up to maximum period of 30 days in a year and the chargeable duties are as follows. 
• Rs. 1000 per day for car, jeep and van 
• Rs. 1000 per day for bus, minibus and tourist bus 
• Rs. 200 per day for motor cycle and scooter 
• Rs. 500 per day for three wheelers 
• Rs. 300 per day for tractors
Q 59. Is there any provision to bring vehicle in the nearest market of the boarder?
No duty is to be imposed on vehicle which returns back on the same day after visiting the nearest market of the border of Nepal. For this registration document in the customs point is compulsory.
Q 60. What is the chargeable customs duty to passenger bus operating between two cities of countries such as Kathmandu- Delhi?
For the passenger bus and mini bus operated according to the agreement between two countries, the provisions laid down on such agreement are applied. 
Q 61. How long the vehicle for transportation of goods is allowed to import temporarily at a time and what is the chargeable duty?
Vehicles other than transports of goods are allowed to import temporarily for a period up to 7 days and the chargeable duty per day is Rs. 1500.
Q 62. How much is the chargeable duty to the loaded trucks and trailers with fully loaded container transporting the goods from foreign country to Nepal?
Such trucks and trailers are allowed 72 hours to unload the goods to the destination and no temporary import duty is charged. Trailers with empty containers coming to load goods from the customs area for transportation is also not charged temporary import duty for 72 hours. However, if the truck or trailers transport the goods from the place other than the customs area and returns within 48 hours the temporary import duty of one day is imposed.
Q 63. What happens if the vehicles and means of transport are not taken back within specified time?
These might be seized if found to have overstayed than the period declared in the customs declaration form. Nevertheless, the chief of the customs office could allow to be taken back after paying duty for overstayed period at the rate of Rs. 1000 per diem in the case of motorcycle and Rs. 2000 per idem in the case of other vehicles if appropriate reason is found to exist in the course of taking back such vehicles and as such duty are not exceeded the amount of the value of vehicle. 
Q 64. What happen if truck or trailers failed to be returned within 72 hours due to general strike, natural calamity, accident etc.?
In such case the chief of the customs office could extend the time for maximum period of other 3 days and in such case duty is not imposed for the extended period.
Q 65. What are the provisions relating to temporary import of tractor and trailer?
On the temporary import of a tractor, customs duty at the rate of Rs. 300 per diem is imposed. However, on the temporary import of a tractor fitted with trailer or trailer alone a sum of Rs. 600 per diem is charged as a customs duty. Nevertheless, if tractors entered into Nepal with a trailer loaded with commodities and returns empty within 48 hours no duty is charged. 
Q 66. How long the temporary imported tractor/ trailer are permitted to stay in Nepal?
Tractors or trailers or tractors fitted with trailers thus imported are not permitted to stay in Nepal for more than 30 days. It might be seized if found to have overstayed.
Q 67. Whether the owner of any goods needs to present in person to clear the goods from the customs office?
The owner of any goods needs not to present in person in the customs office to clear the goods. He/she can appoint his/her customs agent, who has obtained the license of customs agent from the Department of Customs, to get goods cleared from the customs office.
Q 68. Is the duty imposed on re-imported of exported goods?
Duty is not imposed in re-imported parcels if such parcels are not delivered to the concerned party by the post office, if the concerned party rejected the goods or lost the quality due to an accident or natural calamity; in other cases the duty is imposed. 
Q 69. Is the exempted duty on raw material collected if the finished exported products of Nepal are return back to Nepal?
If the exported products of Nepal are returned back, chargeable duty on raw materials and auxiliary raw materials is collected.
Q 70. Which exchange rate and tariff rate either of the day of registration of declaration form or the day of clearing the goods is applied?
The exchange rate and tariff rate of the day in which the declaration from is entered in the computer or registered in the customs office is applied.
Q 71. What is the formality to be fulfilled regarding duty privilege for transit goods through Nepalese territory?
In case of sending goods from one part of foreign country to another part of foreign country through Nepalese territory, the owner should submit an application in the Department of Customs specifying the reasons for using Nepalese territory, import and export Customs points and description of particulars goods. After the application received, if the Department is satisfied, it can permit the movement of such goods on duty privilege. The Department may ask for letter from the concerned Embassy or Diplomatic office located in Nepal before granting such permission.
Q 72. What is meant by demurrage?
It is a charge to be paid to the customs office on the goods placed in warehouse operated by the customs office in case the goods are kept more than 7 days. 
Q 73. What is the rate of demurrage?
a) The rate on Tribhuvan International Airport Customs office is: 
• Per day per KG charge 60 paisa up to 30 days 
• Per day per KG charge one rupee from more than 30 days up to 60 days 
• Per day per KG charge Rs. 1.40 from more than 60 days
b) The rate on other customs offices is: 
• Per day per KG charge 40 paisa up to 30 days 
• Per day per KG charge 60 paisa from more than 30 days up to 60 days 
• Per day per KG charge 80 paisa for more than 60 days
Q 74. Is remission of the demurrage possible and who can grant the remission?
If the owner has reasonable ground due to which the goods could not cleared within the prescribed time limit, remission of the demurrage is possible. The Chief Customs Officer has power to grant remission up to Rs. 300000 and for over and above this amount approval of the Director General is compulsory. 
Q 75. How the weight is counted for the purpose of demurrage charge?
For the purpose of demurrage charge, to count the weight, all goods in the customs declaration form or one consignment counted for weight. While counting the weight if the remaining goods are less than one KG it is treated as one KG
Q 76. What is the time limit to release the goods stored in the customs office operated warehouse?
The goods which are stored in the customs office operated warehouse are to be released within 60 days of the entry in the warehouse. 
Q 77. What happens if not released within 60 days?
The customs office gives notice allowing 7 days for releasing the stored goods . If it is not released within allowed time, the good are seized.
Q 78. In which situation the demurrage is not charged to the goods stored in the customs operated warehouse?
In the case of goods kept by the customs office due to the cause of valuation, classification, laboratory test or other reasons, the demurrage is not charged to the goods stored in the customs operated warehouse
Q 79. What is Transaction Value?
Transaction value is the value of goods actually paid or payable to the seller by the buyer. 
Q 80. What types of expenses are added in transaction value?
The following expenses are added:- 
• The commission of mediator or broker 
• Container expenses 
• Packing expenses 
• Transport cost up to customs point of import 
• Loading unloading and handling charges up to customs point of import 
• Insurance charges up to customs point of import 
• Other related expenses.
Q 81. What is the basis of valuation of imported goods of any importer?
Generally the customs valuation is under taken as per the regulation of the importing country. But the WTO member country should incorporate the valuation principle laid by WTO, in their national law. 
Q 82. What is the basis of WTO valuation principle?
The following are the basis:- 
• Article VII of General Agreement on Trade and Tariff (GATT) 1994 
• The Agreement for implementation of the Article VII of the General Agreement on Trade and Tariff 1994 and this agreement is well known as Customs Valuation Agreement in brief. 
• Ministerial decision of Uruguay Round(The provision of rejecting the declared value in case of the customs administration has reasons to doubt about the truth and accuracy of the value declared).
Q 83. What are the Methods of customs valuations?
The basis of valuation is the transaction value of the goods. There are 6 methods of customs valuations. They are:- 
• Transaction value Method 
• Transaction value of identical goods Method 
• Transaction value of similar goods Method 
• Deductive value Method 
• Computed value Method 
• Fall back or reasonable basis Method
Q 84. How the methods of valuation are applied?
The methods from 1 to six are given in sequential order. The value of the goods should be determined on the basis of transaction value of the particular goods. If it is not possible then the second method should be used. This order of application should be followed from one to six. 
Q 85. Can the use of these methods be reversed?
The methods from 1 to3 cannot be reversed but method 4 and 5 can be reversed on the request of the importer and on approval of customs authority. 
Q 86. What is sixth method?
This method has been provisioned to settle down the problems arising on particular situation but in ultimate this method is transaction value method.
Q 87. What are the essential conditions to adopt transaction value method?
Followings are essential conditions:- 
• There must be invoice, sales agreement and purchase order of the goods. 
• Such goods must not be restricted for sale or export/ import. 
• There must not be the conditions of sale or distribution by the exporter to importer. 
• The exporter and importer must not be the relatives and in case of relatives their relation must not has influence the value of the goods. 
Q 88. What are expenses that cannot be included in transaction value?
The following expenses cannot be included as a part of transaction value:- 
• All discounts except Retrospective discount 
• Following expenses quoted in invoice- 
• The interest for the installment payment. 
• Fitting and transport expenses after importation 
• Duties and taxes levied in the country of importation
Q 89. How to calculate the value of the invoice of foreign currency?
The foreign currency is converted in local currency by using rate of exchange. Such rate of exchange is the rate published by designated authority of the country. The use of the date of rate of exchange differs from country to country. 
Q 90. How the rate of exchange is determined in Nepalese context?
Nepal Rastra Bank is the legal authority to determine the rate of exchange in Nepal. It publishes the rate of exchange daily. In Nepal the date of registration of customs declaration form or the entry in computer is the proper date to use the rate of exchange for valuation and duty purpose. 
Q 91. What are the expenses added in the value?
The following expenses are added:- 
• The cost of raw material and production processing cost 
• Profit in the level as in the export of same kind of goods and general expenses 
• Transportation cost, insurance, loading and unloading handling expenses (if the country of importation had provisions to add these in customs value) 
Q 92. Can the Nepalese passenger cominig from foreign country deposit or transfer the good brought by them?
No, they cannot.
Q 93. What are green and red channels?
The passengers coming from international flights having dutiable goods should follow red channel for examination and those not posing dutiable goods should follow green channel and need no examination. These lanes are called red and green channels. 
Q 94. How to select green channel or red channel?
The passengers in international flight should determine themselves, whether the goods possess by them are dutiable or not as per the law of the country of entry, after that they should decide to pass through red or green channel. If there is confusion or some goods are dutiable and some are not, it is better to select red channel. This protects from legal action against them. 
Q 95. How is it identified the dutiable or not dutiable goods carried from green channel?
The goods coming from green channel are screened and suspected item are examined others are released without examination. 
Q 96. What is the process of red channel?
The goods coming from red channel are opened, examined and duties are levied according to the rules and released.  
Q 97. How to know the dutiable or not dutiable items?
The air hostess or stewards distribute form and broachers before landing in the country. Such information can be acquired near immigration desk too. The customs help desk is also available to know dutiable and not dutiable goods. 
Q 98. What are not dutiable items?
The following are not dutiable items:- 
A) For the Nepalese passenger coming back from abroad: 
• Clothing, bedding and used personal effects. 
• Medicine for sick person coming after treatment 
• The instruments used by disabled person 
• Gold ornament up to fifty gram or silver ornament up to five hundred gram and ornaments with diamond accompanied up to Rs. one lakh.
• Tablet or Laptop or computer Watch, steel camera, video camera, cellular phone, pen drive each one piece. 
• Perambulator to carry baby and tricycle one piece each 
• One piece profession related used item to professional. 
• Foods item up to seven kg. 
• One bottle alcoholic drinks up to 1 liter.
Q 99. What happens if any one brings more than the quantity specified as duty-free?
In case of alcohol it is seized, other items are allowed in reasonable condition according to the law.
Q 100. How much gold and silver can the Nepalese passenger bring in accompanied?
Nepali Passanger can not bring the gold or silver in any quantity. But gold ornaments up to fifty gram, silver ornaments up to five hundred gram and ornaments mounted with precious stone worth up to Rs. one hundred thousand can be brought without paying any duties and taxes.
Q 101. Can the baggage be brought after owns arrival too?
Yes he/ she can. The permanent resident of Nepal coming from foreign can bring unaccompanied baggage but it should be dispatched either before or after arrival and such bag gages should have been entered in the customs warehouse within three months from the date of arrival.
Q 102. How much value of goods can the Nepalese passenger returning from foreign get duty privilege whether it is accompanied or unaccompanied baggage?

The Nepalese passenger returning back after living more than six month in foreign can get complete duty privilege up to the following value :-

Returning after living in foreign land for more than six month to one year can enjoy privilege up to the value of Rs. Fifteen thousand and returning after living in foreign more than one year up to the value of Rs. twenty five thousand. 

Q 103. What is the provision for the children?
Among the Nepalese passengers below 16 years can enjoy only 50% percent privilege than that of the adult.
Q 104. Can Nepalese passenger returning from foreign bring brand new clothes?
Only the used clothes can be brought without duty. If new clothes are to be brought then the duty should be paid at flat rate (Sam dar) according to the prevailing Financial Act up to the quantity allowed by rules. 
Q 105. How much clothes besides the used the Nepalese returning from foreign country can bring?
 Nepalese coming from foreign country can bring readymade clothes, shoes, cosmetics each15/15 pieces besides used clothes on duty payment at flat rate (Sam dar).
Q 106. Can the professional equipment used while working in foreign country, or new one of same kind, bring at the time of returning back?
Yes he/ she can bring general type of used equipment such as the B.P measuring machine and stethoscope for doctor, football volleyball, badminton set for sportsman, guitar harmonium, drums for musician on duty free at the limit of one piece each. If such instruments are new for the development of skill he/ she can bring 2/2 pieces each after making payment of duty at flat rate (Sam dar) in accordance to prevailing Financial Act.
Q 107. How much food stuff can the Nepalese returning from foreign country bring for their own use?
They can bring food stuffs up to 7 kg without duty payment and 10 kg with duty payment at flat rate (Sam dar). 
Q 108. Can the Nepalese person living in foreign country send goods to their relatives in Nepal?
They can send the goods of the value up to US$250 (excluding the restricted and the goods under quantity restriction). Customs office examines the proofs and releases after charging duty at flat rate (Sam dar).
Q 109. What is TIN number in REX Pre-application form?
The TIN Number required in EU REX registration into EU's REX System is Trader's Identification Number, it is 13 digit and 2 alphabets (NP) of the EXIM Code in Nepal. In REX pre-application it is required to put NP in front of 13 digits EXIM Code.
Q 110. Is my REX number valid?

To check REX number is it is valid or not, follow the link below and put your TIN number

http://ec.europa.eu/taxation_customs/dds2/eos/rex_validation.jsp?Lang=en