Important Disclaimer

This article is a practical business guide, not legal, tax or customs advice. Import-export rules in Nepal change through the annual budget, Finance Act, customs notices, Nepal Rastra Bank circulars, product-specific directives and government decisions. Before making a shipment or payment, always verify the latest rule from the Department of Customs, Nepal National Single Window, Nepal Rastra Bank, Inland Revenue Department, your bank, your customs agent and the concerned product-regulating authority.

Introduction

Starting an import-export business in Nepal can look simple from the outside: find a supplier, pay them, bring goods into Nepal and sell them. Similarly, export may look like finding a foreign buyer and sending Nepali products abroad. But in practice, import-export is one of the most documentation-heavy business activities.

A small mistake in HS code, customs value, invoice, bank payment, product permit, food label, VAT entry, expiry date, foreign currency document or transit paper can delay clearance, increase cost, block goods at customs or create audit problems later.

For Nepal-based businesses, the main institutions usually involved are:

• Department of Customs

• Nepal National Single Window

• Nepal Rastra Bank

• Inland Revenue Department

• Department of Food Technology and Quality Control for food-related goods

• plant and animal quarantine authorities

• Department of Drug Administration for medicine-related goods

• Nepal Telecommunications Authority for telecom/wireless devices

• banks, freight forwarders and customs agents

This guide is written for small businesses, ecommerce sellers, grocery traders, food businesses, manufacturers, distributors, exporters and new entrepreneurs who want to understand the full import-export process in Nepal.

1. What is Import-Export Business?

An import business means bringing goods from another country into Nepal for business purposes. This may include resale, distribution, manufacturing, repacking, ecommerce sale or use as raw material.

Examples of imports:

• food and grocery products from India

• packaging materials from China

• machinery from Europe or China

• cosmetics from Korea

• ingredients from Thailand or India

• electronics, spare parts or tools from abroad

An export business means selling goods or services from Nepal to foreign buyers.

Examples of exports:

• tea, coffee, herbs and spices

• pashmina and garments

• handicrafts and handmade products

• processed food products

• carpets and wool products

• software and IT services

• agricultural products

Import-export business includes much more than buying and selling. It involves:

• legal business registration

• PAN/VAT registration

• EXIM Code

• HS code classification

• product permits

• bank payment documentation

• customs declaration

• tariff and tax calculation

• transit and freight management

• insurance

• quality control

• packaging and labeling

• VAT and accounting

• stock recordkeeping

• audit preparation

The most important point is:

EXIM Code allows a trader to be identified as an importer/exporter, but it does not automatically allow every product to be imported or exported.

Some products need separate approval before import/export.

2. Basic Requirements to Start Import-Export Business in Nepal

Before starting commercial import/export, a business should prepare the following:

For a serious commercial import-export business, do not start with only a supplier quotation. Start with a compliance file for each product.

3. What is EXIM Code in Nepal?

EXIM Code means Export Import Code. It is the registration code issued by the Department of Customs to identify importers and exporters.

In simple words:

EXIM Code is the official trader identification number used for import and export activities in Nepal.

It helps the government track registered importers and exporters. It is generally required for commercial import and export transactions.

However, EXIM Code is not the same as product approval. For example, even with EXIM Code, you may still need DFTQC approval for food items, quarantine approval for plant or animal products, drug authority approval for medicines, or telecom approval for certain wireless devices.

4. How to Apply for EXIM Code in Nepal

EXIM-related services are available through the Nepal National Single Window / EXIM service portal. The portal provides options such as applying for new EXIM, renewal, deregistration and reregistration.

A practical application process generally includes the following:

Step 1: Register the business

Before applying for EXIM, the business should be legally registered. Depending on your structure, this may be:

• private firm

• company

• partnership firm

• industry

• cooperative or other eligible entity

Step 2: Prepare tax documents

You generally need PAN details. VAT registration may also be needed depending on your business size and nature of goods.

Step 3: Access the EXIM application portal

The EXIM application process usually asks for business PAN, personal PAN and email verification before proceeding with the application form.

Step 4: Fill business and tax information

The application may include:

• business information

• IRD/tax information

• business registration details

• owner/director details

• contact information

• bank-related information

• required attachments

Step 5: Upload documents

Commonly required documents may include:

• business registration certificate

• PAN certificate

• VAT certificate if applicable

• owner/director citizenship or identification document

• company documents if applying as a company

• authority letter or board decision if someone applies on behalf of the company

• tax clearance or renewal documents if requested

• bank-related documents if requested

Requirements can change, so check the live EXIM portal or customs office before applying.

Step 6: Submit and wait for review

After submission, the application goes to the concerned customs office or authority for review.

Step 7: Receive EXIM Code

Once approved, the business can use the EXIM Code for import-export processes.

5. EXIM Code Cost, Bank Guarantee and Renewal

The EXIM portal lists both registration and renewal services. This means businesses should check their EXIM validity and renewal status regularly.

There have been policy discussions and customs notices related to the bank guarantee requirement for EXIM Code. Because this area has changed and official notices may be updated, businesses should not rely on old information. Before applying, confirm directly from:

• Department of Customs

• Nepal National Single Window / EXIM portal

• concerned customs office

• your bank

• your customs agent

A good practice is to check EXIM status every fiscal year along with company renewal, tax clearance and VAT/PAN compliance.

6. Choosing the Right Product Before Importing or Exporting

Many beginners choose a product only because the foreign supplier price looks low. This is risky. The real question is not “How cheap is the supplier price?” but:

Can this product be legally imported/exported, cleared from customs, sold profitably and documented properly?

Before choosing a product, ask:

• Is the product legally allowed for import/export?

• Is it prohibited or restricted?

• Does it need a permit, license or certificate?

• What is the HS code?

• What is the customs duty?

• Is VAT applicable?

• Is excise duty applicable?

• Are there other fees or taxes?

• Is the product perishable?

• Does it have expiry date?

• Does it need cold storage?

• Does it need testing or lab report?

• Is the label acceptable for Nepal?

• Is the supplier genuine?

• Is there trademark or brand authorization issue?

• Is the product profitable after all costs?

For example, food products may need approval, inspection, testing and certification. Plant and animal products may need quarantine. Medicines may need drug authority approval. Telecom and wireless devices may need NTA-related approval.

7. Understanding HS Code in Nepal

HS Code stands for Harmonized System Code. It is an international product classification system used by customs authorities.

In Nepal, HS code affects:

• customs duty

• VAT

• excise duty

• additional charges

• permit requirement

• import/export restriction

• customs valuation

• trade statistics

• eligibility for duty preference under trade agreements

Nepal’s tariff search tools allow traders to search products by HS code, chapter, keyword or commodity description.

Why HS Code is critical

A wrong HS code can cause:

• wrong duty calculation

• wrong VAT treatment

• customs dispute

• penalty risk

• shipment delay

• audit issue

• wrong pricing decision

• difficulty claiming VAT credit or refund

Do not depend only on the HS code given by the foreign supplier. A supplier’s HS code may be based on their country’s export classification, while Nepal customs may classify the item differently based on Nepal’s tariff schedule and product details.

HS classification can depend on:

• product composition

• ingredients

• material

• use

• processing level

• packaging

• technical specifications

• form of sale

• product literature

• lab test or inspection

Before importing a new item, confirm HS code with a customs agent and, for high-value or sensitive goods, consider seeking professional customs advice.

8. Customs Tariff, Duty, VAT and Other Charges

Customs tariff determines the duty and tax treatment of imported goods. Nepal publishes integrated tariff materials and tariff search tools, and these should be checked before every major shipment.

Possible import cost components include:

• customs duty

• VAT

• excise duty

• agriculture reform fee

• health risk tax

• infrastructure development tax

• road construction fee

• customs service charge

• inspection or lab testing fee

• port charge

• terminal handling charge

• customs agent fee

• freight forwarder fee

• bank charge

• LC/TT/document charge

• cargo insurance

• container detention

• port demurrage

• warehouse rent

• local transport

The tax and duty are affected by:

1. HS code

2. product description

3. country of origin

4. customs value

5. applicable trade agreement

6. product-specific law

7. annual Finance Act and tariff update

8. customs valuation rules

Because tariff and tax rules may change every fiscal year, businesses should not rely on old duty rates.

9. Customs Valuation: Why Invoice Price May Not Be Enough

Customs duty is usually calculated on customs value. The declared invoice value is important, but customs may question the declared value if it appears too low, inconsistent or unsupported.

Customs valuation may consider:

• invoice value

• freight

• insurance

• previous import values

• price lists

• manufacturer or distributor price

• available market data

• comparable goods

• expert or agency information

If you receive a genuine discount from a supplier, keep evidence such as:

• supplier quotation

• email negotiation

• sales contract

• payment proof

• product catalogue

• discount explanation

• grade/specification details

• supplier price list

Avoid under-invoicing. It may reduce apparent customs value in the short term, but it creates serious customs, banking, tax and audit risk.

10. Landed Cost: The Real Cost of Importing

Landed cost means the total cost of bringing goods into your warehouse, ready to sell.

Many beginners calculate only:

Supplier price + freight + customs duty

This is incomplete.

A better formula is:

Landed Cost = Product Cost + Freight + Insurance + Customs Duty + VAT Impact + Excise + Other Taxes + Port/Terminal Charges + Agent Fee + Bank Charges + Testing Fee + Local Transport + Storage + Damage/Expiry Buffer

Example landed cost calculation

Suppose you import packaged food worth NPR 1,000,000.

This is only an example. Actual duty, VAT, excise and fees depend on HS code and latest tariff rules.

If the import VAT is eligible as input credit, it may not be a final cost in the same way as customs duty. But it still affects cash flow because it must be paid at import and later adjusted or refunded according to VAT rules.

For business decisions, calculate:

• total landed cost

• VAT impact

• cash-flow requirement

• selling price

• margin before tax

• margin after expected damage/expiry

• minimum profitable selling price

11. Product-Specific Permits and LPCO

Some products require LPCO, meaning License, Permit, Certificate or Other approval. Nepal National Single Window supports LPCO-related processes for different agencies.

Common regulated categories include:

The practical rule is:

Check permit requirements before the supplier ships the goods.

If goods arrive without the required permit, you may face delay, testing, storage cost, rejection, re-export or disposal.

12. Food Import Business in Nepal

Food import is one of the most sensitive categories because it affects public health. If you plan to import packaged food, snacks, spices, dry fruits, grains, frozen food, dairy products, meat products, beverages, ingredients or processed food, check DFTQC/food authority requirements before shipment.

Food import may require:

• application

• importer details

• product details

• brand name

• exporting country

• manufacturer/processor details

• product label

• quality certificate

• lab analysis report or sample

• inspection report

• manufacturing license where applicable

• export certificate where applicable

• duplicate samples if required

Food import permission and inspection risk

Food import permission may have a validity period. Goods arriving at customs may be inspected and sampled. If the goods do not match the details submitted in the application, or if laboratory results fail to meet Nepal’s standards, clearance may be refused.

For food importers, the biggest practical risks are:

• wrong or incomplete label

• missing manufacturing date

• missing expiry date

• no batch number

• ingredient mismatch

• expired or near-expiry stock

• product not matching test report

• certificate from unreliable source

• quality failure at customs testing

• damaged packaging

• no cold-chain arrangement

Food import checklist

Before shipping food items, check:

• Is the product legally allowed?

• Does it need DFTQC approval?

• Is the label acceptable?

• Is the ingredient list clear?

• Is the manufacturing date visible?

• Is expiry/best-before date visible?

• Is the batch number printed?

• Is country of origin shown?

• Is manufacturer name/address shown?

• Is net weight shown?

• Is allergen information needed?

• Is COA/lab report available?

• Is shelf life enough after transit?

• Does it need cold storage?

• Is packaging strong enough?

For ecommerce and grocery businesses, shelf life matters a lot. A product may clear customs but become hard to sell if only a short expiry period remains.

13. Labeling Requirements: Why Labels Matter

Labeling is especially important for food, cosmetics, health products, chemicals and consumer goods.

A good import label should clearly show:

• product name

• brand name

• manufacturer name and address

• country of origin

• net weight or volume

• ingredients or composition

• manufacturing date

• expiry or best-before date

• batch number

• storage instruction

• importer details if required

• warning or caution if applicable

• allergen declaration if applicable

• MRP or price information where required

Common label problems include:

• foreign-language-only label

• no expiry date

• no manufacturing date

• no batch number

• no ingredient list

• wrong net weight

• mismatch between label and invoice

• product image different from actual goods

• no country of origin

• no manufacturer details

For regulated goods, label problems can delay clearance even when the product itself is genuine.

14. Foreign Payment for Import Business

Commercial import payment should be made through licensed banking channels under Nepal Rastra Bank rules. Payment rules can change, so your bank’s current checklist is very important.

Common international payment methods include:

Older official transit guidance for third-country purchases emphasizes LC-based imports, especially CIF/C&F arrangements. In current practice, banks may allow different payment modes depending on Nepal Rastra Bank circulars, product type, value, margin requirement and documentation. Therefore, before confirming with a supplier, ask your bank:

• Is this payment method allowed?

• Is advance payment allowed for this product and amount?

• Is LC required?

• What margin is required?

• What documents are required?

• Which currency can be used?

• Is the supplier country or product category sensitive?

Common currencies

Depending on supplier, country and bank approval, payment may be in:

• INR for India trade

• USD for third-country trade

• CNY/RMB for some China trade

• EUR, GBP, JPY or other convertible currencies where accepted

Do not use informal methods such as hundi, crypto, personal remittance or payment through unrelated third-party accounts. Informal payment can create problems in customs valuation, tax audit, banking compliance and supplier dispute.

15. Export Payment and Foreign Currency Realization

For export business, payment should come through formal banking channels.

Common export payment methods include:

• advance payment

• Letter of Credit

• documentary collection

• bank transfer under permitted rules

• open account only with trusted buyers

For exports, customs and banks may require proof of advance payment or LC/documentary arrangement depending on the case. Exporters also need to track whether export proceeds are received in Nepal within the required period under foreign exchange rules.

Important export payment records include:

• export invoice

• bank certificate of advance payment or LC

• buyer purchase order/contract

• export declaration

• foreign exchange declaration if required

• payment realization certificate

• short-payment explanation if any

• buyer deduction details

• credit note or refund note if applicable

For new foreign buyers, avoid shipping on open credit unless the buyer is verified and you can absorb the risk. Advance payment or LC is safer.

16. Transit Routes for Nepal Import and Export

Nepal is landlocked, so international trade often depends on transit through India, China or air cargo routes.

Common routes include:

• India land route

• Indian seaport plus land/rail transit to Nepal

• China land route

• air cargo through Nepal’s international airport customs

• dry ports and inland clearance points

For third-country goods coming through Indian ports, documents and procedures may include customs transit documentation, bill of lading, commercial invoice, packing list, insurance, LC/bank documents and agent coordination.

Possible costs during transit include:

• port charges

• terminal handling charges

• shipping line charges

• container detention

• demurrage

• warehouse charges

• rail or road freight

• forwarding agent fee

• customs agent fee

• duty insurance or bank guarantee for sensitive goods where applicable

• scanning/examination charges where applicable

• truck waiting charges

Transit cargo generally should not be treated as normal import into the transit country, but it may still involve logistics and documentation costs. Do not assume “transit” means free movement without charges.

17. Land vs Air Import and Export

Land route

Land route is generally suitable for:

• bulk goods

• grocery and FMCG products

• machinery

• raw materials

• low-margin goods

• heavy shipments

• regular commercial consignments

Advantages:

• cheaper than air

• suitable for larger volume

• common for India and China trade

• practical for regular supply chain

Disadvantages:

• border delay

• road disruption

• weather risk

• port demurrage

• container detention

• transit documentation

• longer lead time

Air route

Air route is generally suitable for:

• samples

• urgent goods

• high-value small goods

• documents

• electronics

• perishable or time-sensitive goods

• emergency stock

Advantages:

• faster delivery

• lower transit time

• useful for urgent orders

• suitable for small high-value items

Disadvantages:

• expensive freight

• airport storage cost

• stricter air cargo requirements

• margin pressure

• not suitable for bulky low-margin goods

Choose land or air based on product value, weight, urgency, shelf life, margin and risk.

18. Do You Need a Customs Agent?

For most new importers and exporters, a customs clearing agent is strongly recommended.

A customs agent can help with:

• customs declaration

• HS code filing

• document checking

• duty/VAT calculation

• permit coordination

• customs examination

• valuation discussion

• clearance process

• transit coordination

• release of goods

However, do not depend blindly on an agent. The business owner remains responsible for the shipment, documents and tax records.

Ask your agent:

• Which HS code will be used?

• What is the duty and VAT rate?

• Is excise or extra fee applicable?

• Is LPCO/permit required?

• What documents are missing?

• What is the estimated total clearing cost?

• What are possible delay points?

• Will you provide customs declaration and payment receipt?

• Are there any demurrage or detention risks?

A good agent reduces risk. A bad agent can create wrong classification, inflated charges, delays or weak records.

19. Import Documents Checklist

Documents vary depending on goods, route and payment method. Common import documents include:

All documents should be consistent. Product name, quantity, weight, value, supplier, consignee, route and country of origin should match across invoice, packing list, bank papers, transport document and customs declaration.

20. Export Documents Checklist

Common export documents include:

Export documentation must satisfy both Nepal’s requirements and the importing country’s requirements.

21. Incoterms: Very Important for Import-Export

Incoterms define who is responsible for cost, freight, insurance, risk and delivery point.

Common Incoterms include:

Many disputes happen because buyers think “shipping included” means everything is included. But the supplier may mean freight only up to an Indian port, Chinese border, airport or another point.

Before confirming order, ask:

• What is the Incoterm?

• Where does risk transfer?

• Who pays international freight?

• Who pays insurance?

• Who pays destination port/terminal charges?

• Who handles Nepal customs clearance?

• Who pays customs duty and VAT?

• Who pays local delivery to warehouse?

22. VAT in Import-Export Business

VAT is very important in Nepal import-export business.

In import, VAT may be collected at customs if the goods are VATable. If the business is VAT registered and the purchase is used for taxable business, import VAT may generally be treated as input tax credit according to VAT law and documentation requirements.

In export, exports are generally handled under the zero-rating framework when conditions are met. This can allow eligible exporters to claim refund or adjustment of input VAT, but only with proper documents and verification.

For VAT management, keep:

• customs declaration

• import VAT payment receipt

• commercial invoice

• purchase records

• sales VAT bills

• stock register

• export invoice

• export customs declaration

• bank realization proof

• VAT returns

• reconciliation sheets

Common VAT problems include:

• missing purchase entry

• invalid supplier bill

• customs document not recorded

• stock not matching sales

• export payment not received through bank

• export invoice not matching customs declaration

• mixing VATable and VAT-exempt goods without proper accounting

• weak link between purchases and exported goods

For mixed taxable and exempt goods, consult an auditor before large imports.

23. VAT Refund on Export

Exporters may be eligible for VAT refund when input VAT is linked to zero-rated export sales, subject to VAT law and IRD verification.

A good VAT refund file should include:

• export invoice

• customs export declaration

• packing list

• transport document

• certificate of origin if applicable

• bank payment realization certificate

• purchase VAT bills

• import VAT documents if imported input was used

• stock register

• production records if goods are manufactured

• VAT return copies

• reconciliation sheet linking input to export

The biggest issue in VAT refund is mismatch. Your purchase, stock, production, export, customs and bank records should support the same transaction story.

Do not wait until refund time to organize documents. Prepare the refund file shipment by shipment.

24. Export Return and Refund to Foreign Buyer

Sometimes exported goods may be returned due to:

• quality problem

• wrong specification

• damaged goods

• failed lab test

• buyer rejection

• wrong shipment

• mismatch with contract

• accident or natural disaster during transport

If exported goods come back to Nepal, handle it through customs and bank documentation. Do not manage it informally.

For export return, keep:

• original export declaration

• export invoice

• packing list

• transport document

• buyer rejection letter

• reason for return

• proof that returned goods are the same exported goods

• re-import customs document

• bank payment record

• credit note or refund note

• product inspection report if available

If payment was already received and you need to refund the foreign buyer, apply through your bank with proper documents. Informal refund can create foreign exchange, tax and audit problems.

25. Import Return to Foreign Supplier

Imported goods may need to be returned due to:

• wrong goods

• damaged goods

• inferior quality

• expired or near-expiry goods

• short shipment

• failed inspection

• mismatch with contract

• supplier error

For import return, keep:

• original import declaration

• customs duty/VAT receipt

• supplier complaint communication

• return agreement

• debit note or credit note

• re-export document

• transport document

• insurance claim if applicable

• replacement shipment documents if goods are replaced

If customs duty or VAT was already paid, refund or adjustment depends on the law, timing, evidence and decision of the concerned authority. Handle this with a customs agent and tax consultant.

26. Supplier Verification for Importers

Before paying a foreign supplier, verify them carefully.

Check:

• company registration

• export license if relevant

• website and business history

• factory or warehouse evidence

• product sample

• product certificate

• certificate of analysis if applicable

• bank account name matching supplier company

• platform reviews if using B2B marketplace

• previous export experience

• ability to provide correct invoice and packing list

• willingness to provide inspection before shipment

Avoid:

• payment to personal bank account

• supplier refusing video call

• supplier refusing sample

• unrealistically cheap price

• no company documentation

• supplier changing product specification after payment

• invoice from one company but payment to another company

For first shipment, order a trial quantity rather than a large shipment.

27. Buyer Verification for Exporters

Before exporting to a foreign buyer, verify the buyer.

Check:

• company registration

• website and business identity

• import license if needed in their country

• bank details

• previous trade history

• buyer’s ability to clear goods in destination country

• requested payment term

• whether their purchase order looks genuine

• whether the destination country allows the product

For new buyers, prefer:

• advance payment

• LC

• partial advance with secure balance arrangement

Be careful with fake buyers who send large purchase orders but avoid advance payment or request unusual charges.

28. Quality Control and Pre-Shipment Inspection

Quality control should be done before shipment, not after goods arrive.

For imports, check:

• product sample

• specification sheet

• packaging

• label

• carton marking

• net/gross weight

• quantity

• batch number

• manufacturing/expiry date

• certificate and test report

• photos/videos of actual shipment

• loading inspection for larger orders

For exports, check:

• buyer specification

• packaging strength

• labeling requirement

• destination country rules

• moisture, contamination or pest risk

• required certificates

• product consistency

• weight and carton count

For food, also consider:

• microbial test

• pesticide residue

• moisture content

• allergen declaration

• storage condition

• shelf-life certificate

• COA

29. Insurance in Import and Export

Cargo insurance protects against damage, theft, accident and other transit risks. Many small businesses skip insurance to save cost, but this can be risky.

Insurance is especially important for:

• expensive goods

• electronics

• machinery

• fragile goods

• food products

• frozen or chilled goods

• sea cargo

• long-route transit

• bulk shipments

For insurance claims, usually keep:

• insurance policy

• invoice

• packing list

• transport document

• damage report

• photos/videos

• survey report

• customs document

• claim letter

If you do not have insurance, you may have to absorb the full loss yourself.

30. Common Problems in Import Business in Nepal

1. Wrong HS code

Wrong classification can create duty, VAT, permit and customs dispute.

2. Underestimated landed cost

Businesses often forget bank charges, demurrage, testing, storage, transport, insurance and damage loss.

3. Missing permit

Food, plant, animal, medicine, telecom and controlled goods may stop at customs without approval.

4. Supplier sends wrong goods

This is common when supplier verification is weak.

5. Label problem

Missing expiry date, batch number, ingredients or country of origin can delay clearance.

6. Customs valuation dispute

Under-invoicing or unsupported low value can create customs problems.

7. Bank payment delay

Banks may require additional documents, margin or clarification.

8. Demurrage and detention

Delay at port, border or customs can become very expensive.

9. Expiry and shelf-life loss

For food and FMCG, delay reduces saleable life.

10. Weak accounting

If customs, bank, purchase, VAT and stock records do not match, audit becomes risky.

31. Common Problems in Export Business in Nepal

1. Buyer does not pay on time

Use advance payment or LC for new buyers.

2. Buyer rejects goods

Quality, packaging, certificate and labeling should be agreed before shipment.

3. Missing certificate

Destination country may require certificate of origin, phytosanitary certificate, food certificate, fumigation certificate or lab report.

4. Poor packaging

Export goods may travel long distances and can be damaged if packaging is weak.

5. Wrong Incoterms

Unclear freight, insurance or destination charges can create disputes.

6. VAT refund delay

Refund may be delayed if documents do not reconcile.

7. Export proceeds not realized properly

Foreign payment should be tracked through bank documentation.

32. Recordkeeping System for Import-Export Business

Every shipment should have a separate digital folder.

Example:

Imports/
  2082-83/
    SupplierName-Shipment-01/
      01-Proforma-Invoice.pdf
      02-Bank-Payment-or-LC.pdf
      03-Commercial-Invoice.pdf
      04-Packing-List.pdf
      05-BL-or-AWB.pdf
      06-Certificate-of-Origin.pdf
      07-Insurance.pdf
      08-Permit-or-LPCO.pdf
      09-Customs-Declaration.pdf
      10-Duty-VAT-Receipt.pdf
      11-Landed-Cost-Sheet.xlsx
      12-Stock-Entry.xlsx

For exports:

Exports/
  2082-83/
    BuyerName-Shipment-01/
      01-Purchase-Order.pdf
      02-Export-Invoice.pdf
      03-Packing-List.pdf
      04-Certificate-of-Origin.pdf
      05-Product-Certificate.pdf
      06-Bank-Advance-or-LC.pdf
      07-Customs-Export-Declaration.pdf
      08-BL-or-AWB.pdf
      09-Payment-Realization.pdf
      10-VAT-Refund-File.xlsx

For food or perishable goods, also maintain:

• batch number

• manufacturing date

• expiry date

• quantity imported

• quantity sold

• damaged quantity

• returned quantity

• remaining stock

• customer complaints

• supplier claims

Good records help during customs audit, tax audit, VAT refund, supplier dispute and insurance claim.

33. Recent Changes and Updates Businesses Should Watch

Import-export rules in Nepal can change frequently. Businesses should monitor:

1. Customs Act and Customs Regulation

Nepal has recent customs law and regulation updates. Businesses should check the latest Customs Act, Customs Regulation and customs notices before major shipment decisions.

2. Guidance on detailed goods declaration

Customs has issued guidance related to declaring detailed goods information. This means traders should describe goods clearly and accurately instead of using vague names.

3. EXIM bank guarantee and renewal notices

There have been customs notices related to EXIM Code and bank guarantee. Since rules have changed over time, verify directly from the Department of Customs or EXIM portal before applying.

4. Integrated tariff updates

Tariff, VAT, excise and other charges may change with the annual budget and Finance Act. Check current tariff before importing.

5. NRB foreign exchange circulars

Foreign payment, LC margin, advance payment and export realization rules may change through Nepal Rastra Bank circulars. Always ask your bank for the latest checklist.

6. Product-specific rules

Food, plant, animal, medicine, telecom, chemical and other regulated goods may have separate updates from concerned authorities.

34. Step-by-Step Guide to Start Import Business in Nepal

Step 1: Register your business

Choose the proper structure: company, firm, partnership or industry.

Step 2: Get PAN/VAT registration

PAN is basic tax identity. VAT registration depends on your business nature and legal threshold.

Step 3: Get EXIM Code

Apply through the official EXIM/NNSW system.

Step 4: Select product carefully

Check demand, profitability, shelf life, restrictions and permits.

Step 5: Identify HS code

Use tariff search tools and confirm with a customs professional.

Step 6: Check duty, VAT and other charges

Do not calculate profit without tariff and landed cost.

Step 7: Check product permit

Confirm DFTQC, quarantine, drug, telecom or other approval if needed.

Step 8: Verify supplier

Check supplier legitimacy, sample, quality and bank account.

Step 9: Confirm payment method with bank

Ask your bank what payment mode is allowed and what documents are required.

Step 10: Confirm Incoterms

Clarify EXW, FOB, CFR/CNF, CIF, DAP or other terms.

Step 11: Arrange freight and insurance

Choose land, sea-transit or air route based on product and cost.

Step 12: Check documents before shipment

Invoice, packing list, label, permit, certificate and transport details should be correct before dispatch.

Step 13: Customs clearance

Your agent files declaration, coordinates inspection and arranges duty/VAT payment.

Step 14: Receive goods and enter stock

Check quantity, condition, batch and expiry.

Step 15: Maintain accounting records

Record purchase, import VAT, customs duty, landed cost, stock and sales correctly.

35. Step-by-Step Guide to Start Export Business in Nepal

Step 1: Select export product

Check quality, demand, packaging and destination-country requirement.

Step 2: Verify buyer

Confirm buyer identity, payment ability and import capacity.

Step 3: Confirm payment terms

Prefer advance payment or LC for first transactions.

Step 4: Check destination country rules

Nepal export clearance is not enough. Buyer country may need import license, label, lab test or certificate.

Step 5: Prepare product and packaging

Use export-standard packaging.

Step 6: Arrange certificates

Certificate of origin, phytosanitary, food quality certificate, fumigation or other certificate may be required.

Step 7: Prepare export documents

Invoice, packing list, bank certificate/LC, customs declaration and transport document.

Step 8: Customs clearance

Submit export declaration and supporting documents.

Step 9: Ship goods

Use land, air or sea-transit route depending on buyer and product.

Step 10: Track payment realization

Make sure foreign currency is received through banking channel.

Step 11: Prepare VAT refund file if eligible

Keep documents organized from the beginning.

36. Practical Checklist Before Importing

37. Practical Checklist Before Exporting

38. Best Advice for New Import-Export Businesses in Nepal

If you are starting import-export business in Nepal, do not begin with a very large shipment. Start small, learn the process, create records and build reliable relationships.

The most important rules are:

1. Confirm HS code before ordering

HS code controls duty, VAT, permits and restrictions.

2. Check permit before shipment

Do not ship regulated goods without approval.

3. Pay through legal banking channel

Avoid informal payment methods.

4. Calculate real landed cost

Profit is decided by landed cost, not supplier price.

5. Keep audit-quality records

Customs, bank, VAT, stock and sales records should match.

6. Verify supplier and buyer

Most trade losses happen because trust was given too early.

7. Protect shelf life and quality

For food, grocery and FMCG, delay and expiry can destroy profit.

8. Stay updated

Rules can change after budget, customs notices and NRB circulars.

Conclusion

Import-export business in Nepal can be profitable, but it requires careful preparation and disciplined documentation. The biggest mistake beginners make is thinking that import-export is only about buying goods from abroad and clearing customs. In reality, it is a complete system involving business registration, EXIM Code, HS code, tariff, permits, foreign payment, customs declaration, VAT, transit, quality control, insurance and recordkeeping.

For importers, the most important steps are product selection, HS code confirmation, permit checking, supplier verification, legal bank payment, landed cost calculation and customs documentation.

For exporters, the most important steps are buyer verification, payment security, product quality, destination-country compliance, export documents, foreign currency realization and VAT refund records.

A business that keeps proper documents, uses correct HS codes, follows bank and customs rules, checks product permits before shipment and calculates landed cost accurately will have a much better chance of succeeding in Nepal’s import-export sector.

The safest approach is simple:

Verify first, ship later. Document everything. Keep customs, bank, VAT and stock records consistent.