How to Get Export Import License in Nepal

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Introduction

Obtaining an export import license Nepal is essential for businesses engaged in international trade. This comprehensive guide provides detailed information on the legal requirements, application process, and compliance procedures for securing your export-import license in Nepal. The Department of Commerce under the Ministry of Industry, Commerce and Supplies regulates international trade activities, while the Department of Customs issues the crucial EXIM code required for all import-export operations.

Understanding the Legal Framework for Export Import License Nepal

The legal framework governing export import license Nepal is established by several key legislation and regulatory bodies. The primary authority overseeing international trade is the Department of Commerce under the Ministry of Industry, Commerce and Supplies. The main legal instruments include:

• The Export and Import Control Act (1962)
• The Customs Act (1962) and Customs Regulations (1963)
• The Foreign Exchange (Regulation) Act (1962)
• The Trade Policy (2016)
• The Industrial Enterprise Act (2016)

These laws collectively regulate all aspects of international trade, including licensing procedures, customs clearance, foreign exchange transactions, and trade promotion activities. Understanding these regulations is fundamental for any business seeking to obtain an export import license Nepal.

Types of Export Import Licenses in Nepal

Export import license Nepal comes in different forms depending on the nature and scale of business operations. The primary types include:

General Export Import License

This is the standard export import license Nepal issued to most businesses engaged in international trade. It allows companies to import and export a wide range of goods not specifically restricted or prohibited.

Special Export Import License

Certain products require special licenses due to their nature, potential impact on the economy, or international obligations. These include:

• Agricultural products
• Pharmaceuticals and medical supplies
• Chemicals and hazardous materials
• Wildlife products
• Cultural artifacts
• Arms and ammunition

Export-Import (EXIM) Code

The EXIM code is a unique 10-digit identifier issued by the Department of Customs that serves as the primary export import license Nepal for customs clearance and trade documentation. This code is the government identification number issued to traders, without which the government may not be able to track unregistered importers and exporters.

Eligibility Criteria for Export Import License Nepal

To obtain an export import license Nepal, businesses must meet specific eligibility requirements established by Nepali authorities:

Company Registration Requirements

• Registered business entity in Nepal (private limited company, partnership, or sole proprietorship)
• Minimum paid-up capital of NPR 100,000 for private limited companies
• At least one Nepali citizen as director
• Registered office address in Nepal
• Unique company name approved by the Office of Company Registrar

Financial Requirements

• Bank account in a commercial bank in Nepal
• Bank guarantee of NPR 300,000
• Tax clearance certificate
• Permanent Account Number (PAN) and VAT registration

Documentation Requirements

• Memorandum of Association (MOA) and Articles of Association (AOA)
• Citizenship certificates or passports of directors and shareholders
• Office rent agreement or ownership certificate
• Company registration certificate
• Tax registration certificate

Step-by-Step Procedure for Obtaining Export Import License Nepal

The process of obtaining an export import license Nepal involves several sequential steps that must be completed carefully to ensure compliance and avoid delays. The following flowchart illustrates the complete process:

Company Registration
with OCR

Tax Registration
PAN/VAT

Bank Account &
Guarantee Setup

Department of Customs
Registration

EXIM Code Application

Receive Export Import
License Nepal

Step 1: Company Registration with OCR

The first step toward obtaining your export import license Nepal is registering your company with the Office of the Company Registrar (OCR). This process includes:

• Choosing and verifying a unique company name
• Submitting required documents including MOA and AOA
• Paying registration fees
• Obtaining company registration certificate

Step 2: Tax Registration

After company registration, you must register for tax purposes:

• Obtain Permanent Account Number (PAN) from the Inland Revenue Department
• Register for Value Added Tax (VAT), which is mandatory for import-export businesses
• Submit required documentation and receive tax registration certificate

Step 3: Bank Account and Guarantee Setup

For your export import license Nepal, you must:

• Open a company bank account with a commercial "A" category bank
• Obtain a bank guarantee of NPR 300,000
• Submit bank verification documents to relevant authorities

Step 4: Department of Customs Registration

The next step in securing your export import license Nepal is registering with the Department of Customs:

• Submit company registration certificate
• Provide PAN/VAT registration certificate
• Submit tax clearance certificate
• Provide citizenship certificates or passports of directors
• Complete customs registration application

Step 5: EXIM Code Application

The final step in obtaining your export import license Nepal is applying for the EXIM code:

• Visit the Department of Customs website (https://exim.customs.gov.np )
• Navigate to the 'EXIM Code Registration' section
• Complete the online application form with company and personal details
• Upload required documents
• Submit application and receive acknowledgment receipt
• Track application status and receive EXIM code upon approval

Cost and Timeline for Export Import License Nepal

Understanding the financial investment and time required for obtaining an export import license Nepal is essential for business planning.

Cost Breakdown for Export Import License Nepal

Processing Timeline

The standard processing time for export import license Nepal applications is about 3 working days from the date a valid application is received. However, the complete process including company registration and other prerequisites may take several weeks to complete.

Using the NNSW Trade Portal for Export Import License Nepal

The Nepal National Single Window (NNSW) Trade Portal (https://nnsw.gov.np ) simplifies the process of obtaining various licenses and permits required for import-export activities. Through this portal, businesses can:

• Apply for new EXIM codes
• Request LPCO (License, Permit, Certificate and Other Approvals)
• Manage quota allocations
• Submit required documentation
• Track application status
• Request modifications and extensions

Common Challenges and Solutions for Export Import License Nepal

Businesses often face several challenges when applying for export import license Nepal:

Documentation Issues

Incomplete or incorrect documentation is the most common cause of delays. Ensure all documents are properly prepared and certified before submission.

Bank Guarantee Requirements

The NPR 300,000 bank guarantee can be challenging for small businesses. Some banks may offer collateral-free guarantees for established businesses with good credit history.

Regulatory Compliance

Keeping up with changing regulations can be difficult. Regular consultation with legal experts or trade consultants can help maintain compliance.

Recent Updates to Export Import Regulations in Nepal

The regulatory framework for export import license Nepal continues to evolve. Recent developments include:

• Enhanced digitalization of application processes through the NNSW portal
• Stricter documentation requirements for certain product categories
• Updated fee structures for various licenses and permits
• Simplified procedures for established exporters with good compliance records

Conclusion

Obtaining an export import license Nepal is a structured process that requires careful preparation and compliance with regulatory requirements. By following the step-by-step procedure outlined in this guide and ensuring all documentation is complete and accurate, businesses can successfully navigate the licensing process and begin their international trade operations.

The EXIM code serves as the primary identification for import-export activities and is essential for customs clearance and trade documentation. With proper planning and preparation, businesses can obtain their export import license Nepal and tap into the growing opportunities in international trade.

For personalized assistance with your export import license Nepal application, consider consulting with legal experts specializing in Nepal's trade regulations. They can provide valuable guidance tailored to your specific business needs and help navigate any challenges that may arise during the licensing process.

Frequently Asked Questions

What is an EXIM code in Nepal?

EXIM code refers to export import code. It is a unique 10-digit identification number issued by the Department of Customs required for anyone importing or exporting goods from Nepal. In its absence, the government may not be able to track unregistered importers/exporters.

How long does it take to get an export import license in Nepal?

The standard processing time for export import license Nepal applications is about 3 working days from the date a valid application is received. However, the complete process including company registration and other prerequisites may take several weeks.

What is the cost of obtaining an export import license in Nepal?

The total estimated cost for obtaining an export import license Nepal ranges from NPR 328,500 to 369,000, including a refundable bank guarantee of NPR 300,000.

Can foreign companies obtain an export import license in Nepal?

Yes, foreign companies can obtain an export import license Nepal but must have a registered business entity in Nepal with at least one Nepali citizen as director.

Is it mandatory to register with the NNSW portal for export import activities?

While not mandatory for all procedures, registration with the Nepal National Single Window (NNSW) Trade Portal is highly recommended as it simplifies the process of obtaining various licenses and permits required for import-export activities.

What are the main documents required for export import license Nepal?

The main documents required include company registration certificate, PAN/VAT registration, tax clearance certificate, bank guarantee, citizenship certificates of directors, and properly filled application forms.

How often do I need to renew my export import license Nepal?

The EXIM code, which serves as the primary export import license Nepal, needs to be renewed periodically. The renewal process can be completed through the Department of Customs portal.