Basic information
Outline of the system
Import licensing system in Nepal is regulated by Export Import Control Act, 1957 and Export Import Regulation 1978. The licensing system is governed by the Department of Commerce and Supply Management and Supply Management.
Product coverage
Government has stipulated some specific items i.e. arms ammunition, tobacco, specified communication equipment, ozone layer depleting substance (ODS) and poppy seed, furnace oil and petroleum products including LPG for licensing. In order to import arms ammunition and specified telecommunication equipment the Department of Commerce and Supply Management issue license automatically under the recommendation of Ministry of Home Affairs and Ministry of Information & Communication respectively. No recommendation is required to issue import license for tobacco. Import license is also compulsory for those goods which are imported without banking channel or goods imported on donation or free of cost.
Nature of licensing
Automatic
If Automatic, administrative purpose
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Products under restriction as to the quantity or value of imports
Automatic import licensing for these products has been adopted because of the sensitiveness of the products for health and security.
Questions for products under restriction as to the quantity or value of imports
See answers 6.1-6.11
The system applies to products originating from which country?
The system applies to goods originating and coming from all countries.
Expected duration of licensing procedure
Legal requirements
Is the licensing statutorily required?
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
Licensing system is incorporated in Export Import Control Act, 1957. As stipulated in Articles 3 and 4 of the Act, Government has authority to suspend or impose licensing requirement to any product on import. A notice, related to such actions, is published in Nepal Gazette.
Is it possible for the government to abolish the system without legislative approval?
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
What persons or firms are eligible to apply for a licence?
Yes, all persons can apply for the license to the items for personal use only. For trading
purpose, only the firm and company registered or established in accordance with existing rules &
regulations and government owned enterprise are eligible to apply for license.
Is there a registration fee?
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Address
Telephone
Fax
E-mail address
Website
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
Documentation requirements
What information is required in applications?
What documents is the importer required to supply with the application?
Application format is prescribed according to Export Import Rules. Following documents are required to be included with i.e. application form in prescribed format, registered certificate of the firm or company, PAN (Permanent Account Number), citizenship certificate, invoice, recommendation letter in case of arms ammunition and telecommunication equipment.
Window of submission of an application
How far in advance of importation must application for a licence be made?
There is no such provision in practice that license must be made one week in advance of importation.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
Yes, there are no limitations as to the period of the year during which application for licence and/or importation may be made.
Issuing the license
Can a licence be granted immediately on request?
There is not such special provision. Licensing procedure is very short and simple. It hardly takes more than two working days to obtain it.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Application must be submitted before payment through banking channel or before import. Generally, importers must obtain license before importation.
Which administrative body is responsible for approving application of licences?
One administrative body (The Department of Commerce and Supply Management) considers license applications. In order to import tobacco no recommendation is required.
Must the applications be passed on to other organs for visa, note or approval?
In case of arms ammunition and telecommunication equipment recommendations from Ministry of Home and Ministry of Communication respectively is required.
Are there any other conditions attached to the issue of a licence?
Any person can be made refrained from obtaining license for 3 years on following grounds:
- Unauthorized correction in import licence;
- Involved in bribe;
- If applicants found guilty in export and import of licensed items without licence;
- If presented falsified documents;
- Involvement in smuggling and foreign deals;
- Rerouting of the licensed goods without prior approval;
- Over invoicing and under invoicing;
- Non renewal of the firm.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
Yes.
What is the amount of the fee or charge?
Import license fee depends on value and volume of importing goods from NRs. 5,000 to 10,000.
Is there any deposit or advance payment required associated with the issue of licences?
There is no deposit or advance payment requirement associated with the issuance of license.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
Are the reasons for any refusal given to applicants?
Have applicants a right of appeal in the event of refusal to issue a licence?
Yes the applicant has a right to appeal.
If so, to what bodies and under what procedures?
S/he may request to the Ministry of Commerce and Supplies within 35 days.
Importation
Are there any limitations as to the period of year during which importation may be made?
Yes, there are no limitations as to the period of the year during which application for licence and/or importation may be made.
What documents are required upon actual importation?
Upon actual importation, an importer is required to submit the approved import license.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
There are no other administrative procedures, apart from import licensing required prior to the importation.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
Generally a license is valid for six months but in some outstanding situation license can be issued giving the validity of one year. If the importation of the goods could not be done in specified period additional six months is extended. License is nullified even after the goods could not be imported during the extended period.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
Yes, there is no penalty for the non-utilization of a license or a portion of it.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Yes, licenses are not transferable between importers.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Yes, foreign exchange is automatically provided by the banking authorities for goods to be imported.
Is a licence required as a condition to obtaining foreign exchange?
Is foreign exchange always available to cover licences issued?
What formalities must be fulfilled for obtaining the foreign exchange?
The following questions are only for products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally)
Where is information on allocation and formalities for licences published? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Yes.
Is the size of the quota determined: on yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for a fresh licence on a six-monthly or quarterly basis?
Recently, there is no quota in any product on import. Generally quota is fixed on annual basis.
Are licences allocated for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate)
Import licence is issued for trading purpose to the firm and company by registered or established in accordance with the existing rules and regulations. Recently there is no quota in any product on import therefore there is not any provisions in regulation which require that licensees must utilize a specified percentage of licenses issued and must surrender unused amounts which are then reallocated to other eligible importers and allocation of unused quota for the next year. The list of importers to whom licenses have been allocated is not published in the Government Gazette. But, such list is published in notice board of the Department of Commerce and Supply Management for concerned parties.
From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Recently, there is no quota in any product on import.
What are the minimum and maximum lengths of time for processing applications?
Applications for licenses are processed within same day or the immediate next day.
How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
A licence period is, generally, of six months, and can be extended for another six months. Within that time-frame the licensed goods must be imported.
Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Yes, the Department of Commerce and Supply Management considers Licence applications.
In case of narcotic and intoxicating medicine and chemistry thereof; and arms &
ammunitions and explosive materials, recommendation of the Ministry of Home Affairs is
required. Likewise, the recommendation is required from Ministry of Information and
Communication to import wireless, walkie-talkie, transmitter receiver, limk radio equipment
and other similar word recorder, voice recorder, video recorder, data recorder, and radio
device except the following radio devices:
(a) GSM Mobile phone set.
(b) WLL Telephone set.
(c) Satellite telephone set to be connected to a network of Satellite service provider
having obtained a license of GMPCS from Nepal Telecommunication Authority.
If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Because of non-existent of quota there is no such practice. Licenses are issued irrespective of past performance.
In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Yes, there are not any bilateral quotas or export restraint arrangements.
In cases where imports are allocated on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Yes, export permits from exporting countries are not required.
Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Yes, no licenses are issued on such conditions.