Foreign Trade Composition of Nepal Direction F.Y. % in 2005/06 Total 68.1 1.7 30.2 100 F.Y.

% in 2006/07 Total 41,728,800 1,202,783 15,995,514 58,927,097 70.8 2.0 27.2 100 F.Y. % in 2007/08 Total 38,555,700 944,489 18,974,170 58,474,359 65.9 1.6 32.5 100 F.Y. % in 2008/09 Total 43,574,482 2,151,783 22,870,587 68,596,852 63.5 3.1 33.4 100 Value in '000 Rs. F.Y. % in 2009/10 Total 39,902,811 1,380,274 65.5 2.2

Exports India 40,714,700 # China 1,004,357 P.R. Others 18,057,817 Total 59,776,874 Imports India 107,143,100 # China 13,014,427 P.R. Others 40,520,397 Total 160,677,924 Trade Deficit India 66,428,400 # China 12,010,070 P.R. Others 22,462,580 Total 100,901,050

19,666,518 32.3 60,949,603 100.0 57.0 11.6

66.7 115,872,300 8.1 17,718,164 25.2 62,217,948 100 195,808,412 74,143,500 16,515,381 46,222,434 136,881,315

59.2 142,376,500 9.0 23,433,205 31.8 71,220,571 100 237,030,276 103,820,800 22,488,716 52,246,401 178,555,917

60.1 165,119,002 9.9 34,465,791 30.0 91,416,151 100 291,000,944 121,544,520 32,314,008 68,545,564 222,404,092

56.7 214,261,109 11.9 43,445,613

31.4 117,899,148 31.4 100 375,605,870 100.0 174,358,298 42,065,339 98,232,630 314,656,267

Source:-Nepal Rastra Bank and Trade & Export Promotion Centre # Includes trade with Hongkong SAR and Macau

Foreign Trade Balance of Nepal \ Fiscal Year Total Exports % in Tota l Total Imports % in Tota l Total Trade Annua l Chang e % in Total Trade 4.0 21.0 20.8 Value in '000 Rs. Trade Annua Deficit l Chang e % in Trade Deficit 620,151 773,255 1,532,456 1,520,549 24.7 98.2 -0.8

1975/7 6 1976/7 7 1977/7 8 1978/7

1,193,425 1,177,694 1,125,944 1,525,475

39.7 37.6 29.8 33.4

1,813,576 1,950,949 2,658,400 3,046,024

60.3 62.4 70.2 66.6

3,007,001 3,128,643 3,784,344 4,571,499

9 1979/8 0 1980/8 1 1981/8 2 1982/8 3 1983/8 4 1984/8 5 1985/8 6 1986/8 7 1987/8 8 1988/8 9 1989/9 0 1990/9 1 1991/9 2 1992/9 3 1993/9 4 1994/9 5 1995/9 6 1996/9 7 1997/9 8 1998/9 9 1999/0 0 2000/0 1 2001/0

1,325,337 1,665,328 1,473,637 1,144,606 1,684,747 2,749,285 3,099,351 3,004,284 4,094,866 4,149,653 5,129,040 7,343,914 13,838,03 3 17,271,26 8 19,077,49 5 17,681,25 3 19,758,38 8 22,861,95 1 27,402,24 4 35,826,57 2 49,561,02 8 55,245,90 0 47,386,78

26.4 26.6 23.5 15.8 20.6 25.8 24.9 21.8 24.2 22.6 23.3 24.7 31.5 33.4 27.3 21.8 20.7 19.8 23.6 28.0 30.4 31.7 30.4

3,692,253 4,594,140 4,806,419 6,085,976 6,493,671 7,907,638 9,371,461 10,800,853 12,817,162 14,208,355 16,914,717 22,377,173 30,158,859 34,425,379 50,735,639 63,324,840 75,896,306 92,874,671 88,894,771 92,314,090 113,687,14 9 118,786,60 9 108,634,80

73.6 73.4 76.5 84.2 79.4 74.2 75.1 78.2 75.8 77.4 76.7 75.3 68.5 66.6 72.7 78.2 79.3 80.2 76.4 72.0 69.6 68.3 69.6

5,017,590 6,259,468 6,280,056 7,230,582 8,178,418 10,656,923 12,470,812 13,805,137 16,912,028 18,358,008 22,043,757 29,721,087 43,996,892 51,696,647 69,813,134 81,006,093 95,654,694 115,736,62 2 116,297,01 5 128,140,66 2 163,248,17 7 174,032,50 9 156,021,58

9.8 24.8 0.3 15.1 13.1 30.3 17.0 10.7 22.5 8.6 20.1 34.8 48.0 17.5 35.0 16.0 18.1 21.0 0.5 10.2 27.4 6.6 -10.3

2,366,916 2,928,812 3,332,782 4,941,370 4,808,924 5,158,353 6,272,110 7,796,569 8,722,296 10,058,702 11,785,677 15,033,259 16,320,826 17,154,111 31,658,144 45,643,587 56,137,918 70,012,720 61,492,527 56,487,518 64,126,121 63,540,709 61,248,013

55.7 23.7 13.8 48.3 -2.7 7.3 21.6 24.3 11.9 15.3 17.2 27.6 8.6 5.1 84.6 44.2 23.0 24.7 -12.2 -8.1 13.5 -0.9 -3.6

2 2002/0 3 2003/0 4 2004/0 5 2005/0 6 2006/0 7 2007/0 8 2008/0 9 2009/1 0

8 50,011,12 2 53,949,41 4 58,443,82 1 59,776,87 4 59,073,09 7 58,474,35 9 68,596,85 2 60,949,60 3

28.1 28.4 28.3 27.1 23.0 19.8 19.1 14.0

1 128,228,13 4 135,840,33 5 148,294,22 9 160,677,92 4 197,676,51 2 237,030,27 6 291,000,94 4 375,605,87 0

71.9 71.6 71.7 72.9 77.0 80.2 80.9 86.0

9 178,239,25 6 189,789,74 9 206,738,05 0 220,454,79 8 256,749,60 9 295,504,63 5 359,597,79 6 436,555,47 3

14.2 6.5 8.9 6.6 16.5 15.1 21.7 21.4

78,217,012 81,890,921 89,850,408 100,901,05 0 138,603,41 5 178,555,91 7 222,404,09 2 314,656,26 7

27.7 4.7 9.7 12.3 37.4 28.8 24.6 41.5

Source:- Nepal Rastra Bank and Trade & Export Promotion Centre Exports of Some Major Commodities in F.Y. 2009/10 S.N. H.S. Code 1 Commodities Unit F.Y. 2008/09 Quantity Value 562,865 105,372 Value in '000 Rs F.Y. 2009/10 % Change Quantity Value in value 493,611 111,411 5.7

2 3 4 5 6 7

04059000 Fats and oils derived from milk 07134000 Lentils 08029000 Betelnuts 09024000 Black tea fermented 09083010 Cardamom 09101000 Ginger 12119000 Plants and parts of plants ( including seeds and fruits) of a kind used primarily in perfumery, in pharmacy or for

Kg.

Kg. Kg. Kg. Kg. Kg. Kg.

56,767,500 5,932,381 9,087,986 9,820,454 26,723,603 5,168,452

5,660,781 332,093 1,213,307 1,343,571 403,468 758,307

37,569,933 7,978,266 8,359,986 5,783,372 30,415,678 7,140,624

3,744,922 479,108 1,160,828 1,171,597 456,014 440,463

-33.8 44.3 -4.3 -12.8 13.0 -41.9

14019000

9 10

14049000 15159000

11

19021900

12 13 14

19023000 20091100 20094100

15

20097100

16 17

20099000 21069050

18

22029000

19

23023000

insecticidal or similar purposes Vegetable materials of a kind used primarily for plaiting (for example rattans, reeds, rushes, osier, affia, cleaned, bleached or dyed cereal straw, and lime bark). Vegetable Products Fixed vegetable fats and oil Uncooked pasta, not stuffed or otherwise prepared Pasta Frozen orange juice Pineapple juice, of a Brix value not exceeding 20 Apple juice of a Brix value not exceeding 20 Mixture of juices Pachak, rochak and similar goods Water, non alcoholic beverages Wheat bran

Kg.

10,562,605

106,715

5,499,212

88,211

-17.3

Kg. Kg.

2,526,015 4,257,677

905,715 209,438

5,457,816 2,895,664

1,351,957 218,413

49.3 4.3

Kg.

4,009,103

469,324

3,609,983

337,054

-28.2

Kg. Kg. Kg.

3,459,056 10,656,480 4,461,713

359,151 505,519 184,555

2,214,901 6,648,853 2,503,575

238,935 316,243 108,972

-33.5 -37.4 -41.0

Kg.

4,539,860

257,425

2,995,197

164,569

-36.1

Kg. Kg.

24,003,135 1,753,433

1,157,723 307,549

8,129,248 941,789

410,206 135,497

-64.6 -55.9

Ltr

69,290

4,714

16,409,758

848,218

17893.0

Kg.

17,551,905

144,093

10,353,881

101,571

-29.5

20 21

22

23 24 25

26

27

28 29 30 31 32

23040000 Oil cakes 23064100 Oil-cake and other solid residues of low erucic acid rape or colza seeds 23069000 Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from extraction of vegetable fats or oils 23099000 Animal food 25162000 Sandstone 25171000 Pebbles, gravel, broken or crushed stone 25172000 Macadam of slag, dross or similar industrial waste 30039090 Homeopathic medicaments not put up in measured doses or in forms or packings for retail sale 33061000 Dentifrices (toothpaste) 33074100 Incense sticks 34011900 Soaps 38061000 Rosin and resin acid 39211900 Cellular plate, sheet of plastic

Kg. Kg.

3,605,653 11,395,645

56,653 186,021

5,039,300 13,433,924

91,292 237,692

61.1 27.8

Kg.

15,718,947

242,462

7,551,657

132,047

-45.5

Kg. Kg.

835,490 1,926,457

253,795 802,223 368,242 172,743,102 1,431,509

118,434 237,061 619,472

-53.3 -35.6 -56.7

73,117

307,287

320.3

Kg.

20,765

12,929

305,713

80,434

522.1

1,023,656 Kg. Kg. Kg. Kg. 186,501 11,390,804 8,519,907 1,481,879 69,698 464,523 427,094 87,273 563,347 10,305,250 7,684,051 788,595

721,373 98,006 384,808 436,989 83,584

-29.5 40.6 -17.2 2.3 -4.2

33

34 35

36

37

38 39

40

41

42

39219000 Plate, sheet, film, foil and strip of plastic 39233010 Pet Bottle 39235000 Stoppers, lids caps and other closures 41041900 Tanned or crust hides and skins of bovine or equinine animals, without hair on whether or not split, but not further prepared, in the wet state 41062100 Tanned or crust hides and skins of goats of kids, without wool on whether or not split, but not further prepared, in the wet state 44101100 Particle board 44201000 Statuettes and other ornaments, of wood 48201000 Registers, account book, notebook, order book, letter pad, diaries 53101000 Woven unbleached fabric of jute or bast fibres 53109000 Woven fabric of jute or bast

Kg.

540,877

913,542

13,235,272

89,043

-90.3

Kg. Kg.

1,699,007 6,165,835

94,660 369,124

1,291,735 55,821,022

127,836 359,488

35.0 -2.6

Sq.ft.

5,298,930

99,400

7,244,618

259,356

160.9

Sq.ft.

4,547,177

277,986

4,758,573

273,897

-1.5

Kg. Kg.

4,494,019 51,784

142,366 10,336

3,422,518 120,420

98,826 228,723

-30.6 2112.9

Kg.

921,078

165,963

2,365,541

184,818

11.4

Kg.

2,952,309

176,319

1,178,015

99,298

-43.7

Kg.

6,392,875

402,619

7,332,568

555,634

38.0

43

54023200

44

54023300

45

54024600

46

54072000

47

54081000

48

55092100

49

55092200

50

55093100

fibres Textured yarn of nylon or other polyamides, measuring per single yarn more than 50 tex Textured yarn of polyesters, including monofilament of less than 67 decitex Synthetic filament yarn of polyesters, partially oriented Woven fabric obtained from strip or the like Woven fabric obtained from high tenacity yarn of viscose rayon Single yarn, containing 85% or moreby weight of polyester staple fibres Multiple or cabled yarn, containing 85% or moreby weight of polyester staple fibres Single yarn containing

Kg.

725,050

70,901

967,529

110,262

55.5

Kg.

7,255,639

638,666

4,197,980

394,756

-38.2

Kg.

669,577

62,888

1,327,836

127,783

103.2

3,437,495

3,828,526

11.4

393,725

226,216

-42.5

Kg.

12,176,319

1,398,533

14,190,001

1,743,922

24.7

Kg.

21,285,784

936,159

7,353,768

1,038,894

11.0

Kg.

2,073,076

354,496

1,913,977

396,421

11.8

51

55093200

52

55095100

53 54 55

56029000 56072100 56079000

56

57011000

57

57019000

58

58021900

59

59031000

85% or more by weight of acrylic or modacrylic staple fibres Multiple (folded) or cabled yarn containing 85% or more by weight of acrylic or modacrylic staple fibres Yarn of polyester staple fibres, mixed mainly or solely with artificial staple fibres Felt Binder or baler twine Twin, cordage, ropes and cables of polythene or polypropylene Carpet, knotted of wool or fine animal hair Carpet, knotted of textile materials Terry towelling and similar woven terry fabrics, of cotton Polyvinyl chloride impregnated,

Kg.

2,901,002

535,100

2,228,476

459,813

-14.1

Kg.

3,562,430

502,895

2,216,629

375,397

-25.4

Kg. Kg. Kg.

162,167 17,189,962 605,352

68,632 681,363 42,080

5,090,143 15,959,299 3,255,300

357,000 860,912 186,405

420.2 26.4 343.0

Sq.Mtr.

1,286,337

5,350,579

805,531

4,256,171

-20.5

Sq.Mtr.

173,959

229,642

31,535

107,389

-53.2

Mtr

6,283,803

80,885

970,645

101,610

25.6

Kg.

288,096

39,546

774,553

76,350

93.1

60

60019200

61

60019900

62

61034200

63

61044200

64

61101200

65

61169100

66

62033100

67

62033200

68

62034200

69 70 71

62041200 62043100 62043200

coated textile fabric Terry fabrics of man made fibres Terry fabric of textile material M&B cotton trousers, bib and brace overall, breeches and shorts, knitted and crocheted W&G Cotton dresses knitted Jerseys, pullovers, cardigans, waistcoats and similar articles of kashmir (Cashmere) goats Woolen gloves, knitted M&B jacket and blazers of wool or fine animal hair M&B cotton jacket, not knitted M&B cotton trousers, not knitted W&G cotton suits W&G woolen jackets W&G cotton jacket, not

Kg.

1,538,922

177,142

1,386,752

113,541

-35.9

Kg.

771,982

110,364

992,541

121,342

9.9

Pcs.

183,356

84,959

234,783

91,626

7.8

Pcs.

111,451

32,262

342,816

73,320

127.3

Pcs.

263,077

272,930

157,461

125,855

-53.9

Pcs.

113,615

49,807

614,773

98,449

97.7

Pcs.

495,660

123,406

568,640

130,443

5.7

Pcs.

1,011,427

278,363

1,413,334

322,676

15.9

Pcs.

760,496

257,510

692,243

144,200

-44.0

Pcs. Pcs. Pcs.

323,603 47,482 633,794

149,429 11,643 195,599

298,124 1,023,420 1,869,987

132,251 140,706 268,271

-11.5 1108.5 37.2

72

62044200

73

62045200

74

62046200

75

62052000

76

62053000

77

62063000

78

62072100

79

62142000

80 81 82

63051000 63052000 63101000

83

64041900

knitted W&G cotton dresses, not knitted W&G cotton skirts, not knitted W&G cotton trousers, bibs and brace overalls, breeches and short M&B cotton shirt, not knitted M&B shirt of manmade fibres, not knitted W&G cotton blouses, shirt, not knitted M&B cotton nightshirt and pyjama, not knitted Woolen shawls, scarves, mufflers, mantillas, veils and the like Jute bags and sacks Cotton sacks and bags Used or new rags, scrap twine, cordage, sorted Footwear with outer sole of rubber

Pcs.

730,465

254,420

2,693,663

645,205

153.6

Pcs.

97,153

24,406

537,933

82,016

236.0

Pcs.

688,781

160,148

1,219,182

158,342

-1.1

Pcs.

2,527,588

806,252

1,219,542

283,233

-64.9

Pcs.

493,826

162,572

429,136

108,909

-33.0

Pcs.

433,403

135,344

602,855

97,951

-27.6

Pcs.

376,589

95,038

325,415

72,117

-24.1

Pcs.

1,637,513

1,818,891

1,842,884

1,317,065

-27.6

1,532,198 710,709 Kg. 94,983 14,336 186,709

2,011,386 638,505 123,005

31.3 -10.2 758.0

Pairs

2,139,657

441,701

11,778,490

573,708

29.9

84

65059000

85

65069900

86

70131000

87

71131100

88

72104100

89

72104900

90

72107000

or plastics Hats and headgears, knitted or crocheted Headgear, whether or not lined or trimmed Glassware of a kind used for table of glass ceramic Articles of silver jewellery, whether or not plated or clad with other precious metal Flat rolled products of iron or nonalloy steel, of a width of 600 mm or more, plated or coated with corrugated zinc Flat rolled product of iron or non alloy steel, of a width 600mm or more plated coated with zinc Flat-rolled products of iron or nonalloy steel painted, varnished or

233,690

343,359

46.9

42,633

71,034

66.6

Kg.

366,611

36,203

3,063,137

105,205

190.6

Kg.

505,528

337,735

267,810

177,852

-47.3

Kg.

36,478,318

2,538,385

29,983,761

2,432,339

-4.2

Kg.

37,228,020

3,026,936

41,689,699

3,246,349

7.2

Kg.

683,905

48,102

1,254,840

71,006

47.6

91

72172000

92

73063000

93

73069000

94

73089000

95

74091100

96

74091900

97

74092100

98

74181900

coated with plastics Wire of iron or non-alloy steel, plated or coated with zinc Tubes, pipes and hollow profiles, welded, of circular crosssection, of iron or non alloy steel Tubes, pipes and hollow profiles of iron and steel Plates, rods, angles, tubes of iron or steel Refined copper plates, sheets, strip in coil of a thickness exceeding 0.15mm Refined copper plates, sheets, strip of a thickness exceeding 0.15mm Refined brass plates, sheets, strip in coil of a thickness exceeding 0.15mm Table, kitchen or other household articles and

Kg.

18,170,341

1,320,745

20,142,427

1,479,993

12.1

Kg.

3,047,972

141,361

3,805,452

226,230

60.0

Kg.

64,183,720

1,694,133

41,014,499

1,201,195

-29.1

Kg.

9,150

581

13,096,448

1,025,847 176357.9

Kg.

226,753

98,387

146,369

74,672

-24.1

Kg.

117,952

54,631

161,961

78,358

43.4

Kg.

1,452,481

551,012

1,905,183

827,929

50.3

Kg.

1,472,536

600,195

1,321,031

481,167

-19.8

99

76042100

100

76042900

101

76151900

102 103 104

85441100 94036000 97011000

105

97030000

106

parts thereof Hollow profiles of aluminium alloys Bars rods and profiles of aluminium alloy Table, kitchen or other household articles and parts thereof Copper wire Wooden furniture Paintings, drawings and pastels Original sculptures and statuary in any material Others Total

Kg.

2,084,200

316,001

2,194,633

326,267

3.2

Kg.

1,481,969

241,865

450,947

72,526

-70.0

Kg.

1,264,540

258,449

6,927,039

187,606

-27.4

Kg. Pcs. Pcs.

148,588 70,931 2,385,042

86,660 21,867 496,201

201,314 14,606 3,294,253

105,611 178,390 438,039

21.9 715.8 -11.7

Pcs.

149,198

216,023

281,698

101,901

-52.8

11,733,943 68,596,852

7,465,192 60,949,603

-36.4 -11.1

Imports of Some Major Commodities in F.Y. 2009/10 S.N. H.S. Code 1 Commodities F.Y. 2008/09 461,214 Value in '000 Rs F.Y. % 2009/10 Change in value 549,126 19.1

2 3 4 5 6 7 8

04022900 Milk and cream in powdered and granules of a fat content by weight exceeding 1.5% containing sugar or added sweetening matter 07019000 Potatoes, fresh or chilled 07031000 Onions and shallots 08029000 Betelnuts 08081000 Apples, fresh 10059000 Maize corn 10063000 Semi milled or wholly milled rice, whether or not polished or glazed 12010000 Soya beans, whether or not broken

355,911 499,323 4,399,160 305,384 244,832 1,780,659 38,829

874,663 661,186 3,352,626 699,493 1,309,990 2,279,768 921,622

145.8 32.4 -23.8 129.1 435.1 28.0 2273.5

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

12051000 15071000 15111000 15121100 17011110 19019000 21069040 23040000 24012000 25231000 25232900 26180000 26219000 27011900 27040000 27101112 27101114 27101115 27101117 27101911 27101919 27111900 27132000 29420000 30039090

34 35

30042000 30049090

36 37 38

30066000 31021000 31052000

39

33049900

Low erucic acid rape or colza seeds Crude soyabean oil Crude palm oil Crude sunflower oil Sugar, raw not containing added flavouring or colouring matter Malt extracts Concentrate of non-alcoholic soft drinks Oil cakes Tobacco, partly or wholly stemmed/stripped Cement clinkers Portland cement Granulated slag (slag sand) from the manufacture of iron or steel Slag and ash, including seaweed ash Coal Coke and semicoke of coal Sprits including Petrol Kerosene type jet fuel Kerosene oils High speed diesel oils and vapouring oils Fuel oil ( Furnish Oil) Lubricating Oil Liquefied petroleum gases Petroleum bitumen Organic compound Homeopathic medicaments not put up in measured doses or in forms or packings for retail sale Medicaments containing antibiotic for therapeutic or prophylatic uses Homeopathic medicaments, put up in measured doses or in forms of packings for retail sale Chemical contraceptive preparations based on harmones or spermicides Fertiliser, urea Mineral or chemical fertilisers containing the three fertilising elements nitrogen, phosphorus and potassium Cream and like preparations

3,205,932 7,354,021 2,721,836 482,719 788,615 543,839 1,260,023 1,034,730 1,327,667 3,902,416 4,040,383 162,932 400,773 780,018 967,252 5,205,408 3,336,637 4,206,598 21,897,378 1,405,257 703,290 7,595,902 549,398 721,139 5,920,786

1,537,398 5,963,420 3,756,036 1,472,742 688,089 700,790 673,290 2,233,183 1,982,645 8,039,134 4,311,815 730,472 637,917 1,524,473 675,768 7,239,883 3,487,878 2,552,714 28,242,425 1,413,940 960,350 9,532,158 1,018,944 698,594 6,574,640

-52.0 -18.9 38.0 205.1 -12.7 28.9 -46.6 115.8 49.3 106.0 6.7 348.3 59.2 95.4 -30.1 39.1 4.5 -39.3 29.0 0.6 36.6 25.5 85.5 -3.1 11.0

480,180 1,037,729

1,218,811 1,330,848

153.8 28.2

183,791 170,158 74,843

1,232,426 539,498 650,667

570.6 217.1 769.4

518,808

720,129

38.8

40 41 42 43 44 45 46 47 48

49 50 51 52 53 54 55 56 57

58

59

60 61

38231900 Industrial monocarboxylic fatty acid 39011000 Polyethylene having a specificf gravity of less than 0.94 39012000 Polythelene having a specific gravity of 0.94 or more 39021000 Polypropylene 39202000 Plates,sheets, film, foil and strip of polymers of propylene 48010000 Newsprint, in rolls or sheets 49070000 Unused postage, stamps, banknote, cheque forms 53031000 Jute and other textile bast fibers raw or retted 55032000 Synthetic staple fibre of polyester not carded combed or otherwise processed for spinning 62032200 M&B cotton ensembles, not knitted 62114200 W&G cotton Dhoti and Lungi, not knitted 64029900 Footwear with outer soles and uppers of rubber or plastics 70109000 Carboys, bottles, flasks, jars, pots and phials of glass 71021000 Diamonds, whether or not worked, but not mounted or set unsorted 71081300 Gold, semi-manufactured forms 72031000 Ferrous products obtained by direct reduction of iron ore 72071900 M.S Billet 72082700 Flat rolled product of iron or non alloy steel, in coils, not further worked than hot rolled, pickled, of a thickness of less than 3mm 72083600 Flat-rolled products or iron or nonalloy steel in coils of a thickness exceeding 10 mm 72083800 Flat rolled product or iron non alloy steel of a width of 600 mm or more, hot rolled, not clad, plated or coated of a thickness of 3mm or more but less than 4.75 mm 72083900 Flat rolled product of iron of a thickness less than 3mm 72091800 Flat rolled products of iron or non alloy steel, of a width of 600 mm or more in coils, not further worked

1,591,767 1,113,208 1,965,888 2,630,946 819,480 1,056,846 666,395 1,272,813 1,230,473

1,565,537 1,176,307 1,892,247 969,853 520,481 964,372 714,103 2,011,987 548,926

-1.6 5.7 -3.7 -63.1 -36.5 -8.7 7.2 58.1 -55.4

487,019 480,200 472,915 669,507 147,790 11,722,871 1,514,323 8,505,832 1,656,580

627,600 602,410 506,572 792,214 602,892 41,457,722 1,908,663 13,504,101 1,089,830

28.9 25.4 7.1 18.3 307.9 253.6 26.0 58.8 -34.2

616,093

792,361

28.6

373,097

1,158,062

210.4

1,522,112 4,410,062

3,113,767 1,566,247

104.6 -64.5

62

72139110

63

74081100

64

76051100

65

79011100

66 67 68 69 70 71 72

84071000 84138100 84182900 84295100 84295200 84295900 84713000

73

84716000

74 75 76

84733000 84742000 85021100

77 78 79 80 81

85023900 85044000 85072000 85171200 85176200

than cold-rolled of a thickness of less than 0.5mm Bar and rods, hot rolled, in irregularly wound coils, of iron or non alloy steel, of circular crosssection measuring not more than 8 mm in diameter Refined copper wire of which maximum cross-sectional dimension exceeds 6mm Alminium wire of which the maximum cross-sectional dimension excceds 7 mm Unwrought zinc, not alloyed containing by weight 99.99% or more of zinc Aircraft engines Pump for liquids not fitted with measuring device Refrigerators Front end shovel loader Machinery with 360 degree revolving super structure Mechanical shovels, excavators and shovel loaders Portable digital automatic data processing machines, weighing not more than 10kg. Input or output units, whether or not containing storage units in the same housing Parts and accessories of automatic data processing machines Crushing or grinding machine Generating sets with compression ignition internal combustion piston engines (diesel engines) of an output not exceeding 75KVA Generating sets Static converters Lead acid accumulators Telephone used for cellular or cordless networking Machines for the reception, conversion and transmission or regeneration of voice, images or

4,119,697

3,845,193

-6.7

835,586

1,106,882

32.5

653,737

522,228

-20.1

759,737

706,476

-7.0

553,446 404,842 279,436 2,875,005 450,776 631,157 1,109,721

528,734 687,900 507,390 2,753,024 524,968 1,986,824 2,254,090

-4.5 69.9 81.6 -4.2 16.5 214.8 103.1

511,699

875,720

71.1

1,228,230 835,789 1,094,135

1,210,863 624,443 985,783

-1.4 -25.3 -9.9

307,740 485,000 1,191,073 2,265,289 1,311,750

517,974 607,505 1,467,195 6,011,194 1,070,066

68.3 25.3 23.2 165.4 -18.4

82

85176900

83

85177000

84

85238000

85 86 87 88 89 90 91 92 93

85258000 85284100 85287200 85291000 85299010 85401100 85414000 87019000 87032190

94

87032200

95

87032300

96

87042110

other data, including switching and routing apparatus Apparatus for transmission or reception of voice, images or other data Parts of apparatus for transmission or reception of voice, images or other data Discs, tapes, solid-state non-volatile storage devices, "smart cards" and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs Television cameras, digital cameras and video camera recorders Cathode ray tubes monitors for automatic data processing machine Colour radio broadcast receivers Aerial and aerial reflector, parts Television receiver parts Colour cathode ray television picture tube Photosensetive semi conductor devices Tractors, Motor car, vehicle of a cylinder capacity not exceeding 1000cc, with spark-ignition internal combustion reciprocating piston engine Motor car, vehicle of a cylinder capacity exceeding 1000cc but not exceeding 1500cc, with sparkignition internal combustion reciprocating piston engine Motor car, vehicle of a cylinder capacity exceeding 1500cc but not exceeding 3000cc with spark-ignition internal combustion reciprocating piston engine Double-cab pickup principally desgined for the transport of goods and having mor than 2 seats including driver`s for the transportation of persons, not

1,770,393

3,777,979

113.4

449,834

1,035,624

130.2

542,165

2,062,469

280.4

264,082 275,662 496,812 137,966 357,363 302,196 586,750 3,088,143 535,971

533,880 519,641 583,762 879,849 514,671 506,317 592,149 4,525,138 581,639

102.2 88.5 17.5 537.7 44.0 67.5 0.9 46.5 8.5

1,426,734

3,782,414

165.1

409,276

930,953

127.5

404,324

866,186

114.2

97

87042120

98

87042300

99

87043200

100 101 102

87060019 87089900 87112000

103 104 105 106

88024000 88033000 90189000

exceeding 5 tonnes Single-cab pickup principally desgined for the transport of goods and having mor than 2 seats including driver`s, not exceeding 5 tonnes Motor vehicles with compressionignition internal combustion piston engine. gvw exceeding 20 tonnes Motor vehicles with spark ignition internal combustion piston engine gvw exceeding 5 tonnes Chasis fitted with engine of bus and trucks Parts and accessories of motor vehicle Motorcycle with reciprocating internal combustion piston engine of a cylinder capacity exceeding 50cc but not exceeding 250cc Aeroplane, of an unladen weight exceeding 15000kg Parts of aeroplane and helicopters Electro-medical instruments and appliances Others Total

331,469

571,899

72.5

995,251

1,408,938

41.6

648,781

604,609

-6.8

2,889,168 862,958 4,891,409

3,621,352 1,210,383 8,500,176

25.3 40.3 73.8

1,734,621 1,341,424 1,129,847

994,914 981,643 870,262

-42.6 -26.8 -23.0 7.5 29.1

107,232,513 115,278,764 291,000,944 375,605,870

Percentage share of Some Major Commodities in the Total Exports of Nepal F.Y. 2009/10 S.N Commodities Unit Value in '000 Rs F.Y. 2009/10 Percentage Share Quantity Value (Annual) 10,016,265 16.43 4,680,822 7.68 805,531 4,256,171 6.98 4,156,767 6.82 17,425,260 3,758,161 6.17 37,569,933 3,744,922 6.14 2,011,386 3.30 1,620,720 2.66 1,317,065 2.16 8,497,653 1,195,318 1.96 5,783,372 1,171,597 1.92

1 2 3 4 5 6 7 8 9 10 11

Iron and Steel articles Yarns ( Polyester, Cotton and others) Woolen Carpet Textiles Readymade Garments Lentils Jute bags and sacks Copper and articles thereof Woolen and Pashmina shawls Tea Cardamom

Sq.Mtr. Pcs. Kg.

Kg. Kg.

12 13 14 15 16 17 18 19 20 21 22 23 24 25

Juices Dentifrices (toothpaste) Noodles, pasta and like Cotton sacks and bags Hides & Skins Handicrafts Ginger Medicinal Herbs Nepalese paper and paper Products Hats and headgears Vegetable fats and oil Articles of silver jewellery Essential Oils Others Total

Sq.ft. Kg.

14,848,486 30,415,678

Kg. Kg.

2,971,601 16,108

1,071,517 721,373 675,005 638,505 627,434 560,991 456,014 440,463 404,977 343,359 224,870 177,852 35,905 16,642,148 60,949,603

1.76 1.18 1.11 1.05 1.03 0.92 0.75 0.72 0.66 0.56 0.37 0.29 0.06 27.30 100

Exports of Some Major Commodities to India in F.Y. 2009/10 S.N H.S. . Code Commoditie s Unit F.Y. 2008/09 Quantity Value Value in '000 Rs F.Y. 2009/10 % Quantity Value Chang e in value 14,009 35,520 0.2

010290 00 040590 00 071340 00 080290 00 090240 00 090830 10 091010 00 121190 00

3 4 5 6 7 8

Bovine animal ( Buffalo) Fats and oils derived from milk Lentils Betelnuts Black tea fermented Cardamom Ginger Plants and parts of plants ( including

Pcs.

10,494

35,437

Kg.

562,865

105,372

493,611

111,411

5.7

Kg. Kg. Kg. Kg. Kg. Kg.

1,129,61 8 5,931,60 6 8,992,54 5 9,614,90 4 26,723,3 88 4,950,67 9

111,541 331,936 1,165,07 8 1,310,63 7 403,377 178,100

169,000 7,978,266 8,080,001 5,700,913 30,188,10 3 6,641,877

15,841 479,108 1,098,52 7 1,155,90 9 450,429 232,843

-85.8 44.3 -5.7 -11.8 11.7 30.7

140190 00

10 11

140490 00 151590 00 190219 00

12

13 14 15

190230 00 200911 00 200941 00

seeds and fruits) of a kind used primarily in perfumery, in pharmacy or for insecticidal or similar purposes Vegetable materials of a kind used primarily for plaiting (for example rattans, reeds, rushes, osier, affia, cleaned, bleached or dyed cereal straw, and lime bark). Vegetable Products Fixed vegetable fats and oil Uncooked pasta, not stuffed or otherwise prepared Pasta

Kg.

10,556,0 05

104,121

5,493,612

87,999

-15.5

Kg. Kg.

2,526,01 5 4,178,76 8 3,481,06 0

905,715 203,063

5,457,816 2,822,394

1,351,95 7 215,131

49.3 5.9

Kg.

331,108

3,114,289

289,822

-12.5

Kg.

16

200950 00

Frozen Kg. orange juice Pineapple Kg. juice, of a Brix value not exceeding 20 Tomato juice Kg.

3,458,30 7 10,642,0 10 4,461,71 3

359,063 504,397 184,555

2,214,083 6,648,853 2,503,575

238,870 316,243 108,972

-33.5 -37.3 -41.0

1,534,65 5

83,586

1,071,376

38,431

-54.0

17

200971 00

18 19

200990 00 210690 10

20

210690 50

21 22

230230 00 230240 00

Apple juice of a Brix value not exceeding 20 Mixture of juices Dalmott, papad, salted bhujiya and chamena Pachak, rochak and similar goods Wheat bran Bran, sharps, and other residues of cereals Oil cakes Oil-cake and other solid residues of low erucic acid rape or colza seeds Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from extraction of vegetable fats or oils Animal food Sandstone Pebbles,

Kg.

4,529,06 0

256,707

2,995,197

164,569

-35.9

Kg. Kg.

23,877,1 87 604,739

1,146,22 1 84,322

7,895,696 436,617

394,114 45,238

-65.6 -46.4

Kg.

1,688,45 9

300,567

941,789

135,497

-54.9

Kg. Kg.

15,923,9 55 15,575,0 05

119,099 106,035

6,820,655 11,189,62 8

53,235 66,896

-55.3 -36.9

23 24

230400 00 230641 00

Kg. Kg.

3,605,65 3 11,395,6 45

56,653 186,021

5,007,350 13,433,92 4

91,087 237,692

60.8 27.8

25

230690 00

Kg.

15,718,9 47

242,462

7,551,657

132,047

-45.5

26 27 28

230990 00 251620 00 251710

Kg. Kg.

835,490 1,926,45 7

253,795 368,242 1,431,50

802,223 172,743,1 02

118,434 237,061 619,472

-53.3 -35.6 -56.7

00

29

251720 00

30

300390 40

31

320300 00

32 33 34

330610 00 340119 00 380510 00

gravel, broken or crushed stone Macadam of slag, dross or similar industrial waste Battisa, Kg. Drakshab, Trifala, Kabjahar, Chyawanpra sh, Kesari Jeevan etc,not put up in measured doses or in forms of packings for retail sale Colouring Kg. matter of vegetable or animal origin Dentifrices (toothpaste) Soaps Kg. Gum, wood or sulphate turpentine oils Rosin and resin acid Compound plasticisers for rubber or plastics Tubes, pipes and hoses, rigid of plastic Cellular Kg.

73,117

307,287

320.3

49,304

24,544

120,407

54,601

122.5

1,053,36 0

156,825

1,980,809

181,262

15.6

10,613,8 98 1,757,49 8

1,022,00 2 430,970 124,116

720,901 9,752,693 780,008 362,464 48,428

-29.5 -15.9 -61.0

35 36

380610 00 381220 00

Kg. Kg.

8,519,90 7 3,869,10 9

427,094 421,361

7,684,051 246,000

436,989 25,515

2.3 -93.9

37

391729 00

Kg.

1,472,66 9

167,755

476,953

57,925

-65.5

38

392119

Kg.

1,481,87

87,273

788,544

83,579

-4.2

00 39 392190 00

40 41

392330 10 392330 90

plate, sheet of plastic Plate, sheet, film, foil and strip of plastic Pet Bottle Sacks and bags (including cones) Stoppers, lids caps and other closures Raw hides and skins, whether or not dehaired or split Tanned or crust hides and skins of bovine or equinine animals, without hair on whether or not split, but not further prepared, in the wet state Particle board Paper and paperboard of width more than by weight of the total fiber content consits of fibers obtained by

9 Kg. 508,826 911,644 13,235,25 2 89,035 -90.2

Kg. Kg.

1,696,11 3 577,981

94,086 51,345

1,291,735 492,033

127,836 45,368

35.9 -11.6

42

392350 00

Kg.

6,089,66 9

348,717

55,817,92 2

358,762

2.9

43

410390 00

Sq.ft.

1,692,96 6

56,931

1,190,337

32,267

-43.3

44

410419 00

Sq.ft.

4,373,09 9

47,925

5,716,248

190,876

298.3

45 46

441011 00 480269 00

Kg. Kg.

4,494,01 9 993,953

142,366 57,205

3,422,518 842,777

98,826 44,124

-30.6 -22.9

47

531010 00

48

531090 00 540232 00

49

50

540233 00

51

540246 00

52

540720 00

53

540810 00

54

550921 00

a mechanical process Woven unbleached fabric of jute or bast fibres Woven fabric of jute or bast fibres Textured yarn of nylon or other polyamides, measuring per single yarn more than 50 tex Textured yarn of polyesters, including monofilamen t of less than 67 decitex Synthetic filament yarn of polyesters, partially oriented Woven fabric obtained from strip or the like Woven fabric obtained from high tenacity yarn of viscose rayon Single yarn, containing 85% or

Kg.

2,952,30 9

176,319

1,178,015

99,298

-43.7

Kg.

6,392,73 3 725,050

402,542

7,331,975

555,261

37.9

Kg.

70,901

829,898

90,248

27.3

Kg.

7,255,63 9

638,666

4,197,980

394,756

-38.2

Kg.

669,577

62,888

1,327,836

127,783

103.2

3,437,49 5

3,828,52 6

11.4

393,725

226,216

-42.5

Kg.

12,176,3 19

1,398,53 3

14,190,00 1

1,743,92 2

24.7

55

550922 00

56

550931 00

57

550932 00

58

550951 00

59 60

560721 00 560790 00

61

570110

moreby weight of polyester staple fibres Multiple or cabled yarn, containing 85% or moreby weight of polyester staple fibres Single yarn containing 85% or more by weight of acrylic or modacrylic staple fibres Multiple (folded) or cabled yarn containing 85% or more by weight of acrylic or modacrylic staple fibres Yarn of polyester staple fibres, mixed mainly or solely with artificial staple fibres Binder or baler twine Twin, cordage, ropes and cables of polythene or polypropylen e Carpet,

Kg.

21,285,7 84

936,159

7,353,768

1,038,89 4

11.0

Kg.

2,073,07 6

354,496

1,913,977

396,421

11.8

Kg.

2,901,00 2

535,100

2,228,476

459,813

-14.1

Kg.

3,562,43 0

502,895

1,436,670

202,679

-59.7

Kg. Kg.

17,189,9 62 605,300

681,363 26,205

15,959,29 9 3,255,300

860,912 186,405

26.4 611.3

Sq.Mt

9,300

33,748

22,764

58,083

72.1

00

62

580219 00

63

590310 00

64

600192 00 600199 00 600290 00 620322 00 620342 00 620520 00 620530 00

65

66

67

68

69

70

71

621420 00

72 73

630510 00 640419

knotted of wool or fine animal hair Terry towelling and similar woven terry fabrics, of cotton Polyvinyl chloride impregnated, coated textile fabric Terry fabrics of man made fibres Terry fabric of textile material Knitted or crocheted fabrics M&B cotton ensembles, not knitted M&B cotton trousers, not knitted M&B cotton shirt, not knitted M&B shirt of manmade fibres, not knitted Woolen shawls, scarves, mufflers, mantillas, veils and the like Jute bags and sacks Footwear

r.

80,885

101,610

25.6

Kg.

288,096

39,546

774,553

76,350

93.1

Kg.

1,538,92 2 771,982

177,142

1,386,752

113,541

-35.9

Kg.

110,364

992,541

121,342

9.9

Kg.

355,821

57,511

392,833

62,270

8.3

Pcs.

104,791

38,473

79,038

40,950

6.4

Pcs.

290,144

127,348

248,865

76,019

-40.3

Pcs.

477,694

214,268

290,024

90,755

-57.6

Pcs.

162,902

57,236

36,955

33,450

-41.6

Pcs.

271,562

194,568

190,969

83,887

-56.9

Pcs. Pairs

29,635,9 40 2,139,65

1,472,27 6 441,701

29,316,25 3 11,778,49

1,948,96 7 573,708

32.4 29.9

00

74

640520 90

75

680221 00 721041 00

76

77

721049 00

78

721070 00

79

721720 00

80

730630 00

with outer sole of rubber or plastics Footwear with uppers of textile materials Marble, travertine and alabaster Flat rolled products of iron or nonalloy steel, of a width of 600 mm or more, plated or coated with corrugated zinc Flat rolled product of iron or non alloy steel, of a width 600mm or more plated coated with zinc Flat-rolled products of iron or nonalloy steel painted, varnished or coated with plastics Wire of iron or non-alloy steel, plated or coated with zinc Tubes, pipes and hollow

Pairs

246,743

48,033

160,521

29,149

-39.3

Kg.

2,014,50 6 36,294,6 14

71,672

1,073,280

36,750

-48.7

Kg.

2,519,32 7

29,983,76 1

2,432,33 9

-3.5

Kg.

37,228,0 20

3,026,93 6

41,689,69 9

3,246,34 9

7.2

Kg.

683,905

48,102

1,254,840

71,006

47.6

Kg.

18,120,6 01

1,316,40 1

20,119,82 8

1,478,50 4

12.3

Kg.

3,047,97 2

141,361

3,805,452

226,230

60.0

81

730690 00

82

731442 00

83

740911 00

84

740919 00

85

740921 00

86

741819 00

profiles, welded, of circular crosssection, of iron or non alloy steel Tubes, pipes and hollow profiles of iron and steel Cloth, grill, netting and fencing plated or coted with plastics Refined copper plates, sheets, strip in coil of a thickness exceeding 0.15mm Refined copper plates, sheets, strip of a thickness exceeding 0.15mm Refined brass plates, sheets, strip in coil of a thickness exceeding 0.15mm Table, kitchen or other household articles and

Kg.

64,005,2 60

1,684,47 8

40,087,91 6

1,150,47 8

-31.7

Kg.

1,572,29 4

100,202

398,513

34,932

-65.1

Kg.

226,753

98,387

146,369

74,672

-24.1

Kg.

117,952

54,631

161,961

78,358

43.4

Kg.

1,452,48 1

551,012

1,905,183

827,929

50.3

Kg.

1,416,70 7

461,380

1,259,485

448,752

-2.7

87

760421 00

88

761519 00

89 90 91

854411 00 940370 00

parts thereof Hollow profiles of aluminium alloys Table, kitchen or other household articles and parts thereof Copper wire Plastic furniture Others Total

Kg.

2,084,20 0

316,001

2,194,633

326,267

3.2

Kg.

1,254,35 2

256,083

6,694,511

182,283

-28.8

Kg. Kg.

148,588 345,845

86,660 35,242 4,582,23 1 43,574,4 82

199,914 250,809

104,755 22,055 3,751,52 9 39,902,8 11

20.9 -37.4 -18.1 -8.4

Imports of Some Major Commodities from India in F.Y. 2009/10 Value in '000 Rs Commodities F.Y. F.Y. % S.N. H.S. Code 2008/09 2009/10 Change in value 01042000 Goats 195,249 391,972 100.8 1 04022900 Milk and cream in powdered and 418,970 535,587 27.8 2 granules of a fat content by weight exceeding 1.5% containing sugar or added sweetening matter 07019000 Potatoes, fresh or chilled 355,911 860,396 141.7 3 07031000 Onions and shallots 494,724 661,186 33.6 4 07134000 Lentils 1,002,888 213,829 -78.7 5 07139000 Dried leguminous vegetables 441,841 331,843 -24.9 6 09093000 Cumin seeds 287,593 292,127 1.6 7 10059000 Maize corn 244,825 1,308,702 434.5 8 10063000 Semi milled or wholly milled rice, 1,444,218 1,524,358 5.5 9 whether or not polished or glazed 12010000 Soya beans, whether or not broken 38,582 921,622 2288.7 10 12051000 Low erucic acid rape or colza seeds 941,261 462,666 -50.8 11 17011110 Sugar, raw not containing added 703,363 437,353 -37.8 12 flavouring or colouring matter 17049000 Sugar confectionery not containing 202,321 262,292 29.6 13

14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42

18061000 19019000 19053100 20089910 21069010 21069040 23040000 24012000 25010090 25151200 25201000 25231000 25232900 26219000 27011900 27040000 27101112 27101114 27101115 27101117 27101911 27101919 27111900 27132000 28151100 29420000 30022000 30039010 30039090

43 44 45 46 47 48

33049900 33059000 34029010 38089300 38231900 39021000

cocoa Cocoa powder containing sugar or other sweetening matter Malt extracts Sweet biscuits Fruit pulp Dalmott, papad, salted bhujiya and chamena Concentrate of non-alcoholic soft drinks Oil cakes Tobacco, partly or wholly stemmed/stripped Black salt Marble, merely cut Gypsum Cement clinkers Portland cement Slag and ash, including seaweed ash Coal Coke and semicoke of coal Sprits including Petrol Kerosene type jet fuel Kerosene oils High speed diesel oils and vapouring oils Fuel oil ( Furnish Oil) Lubricating Oil Liquefied petroleum gases Petroleum bitumen Solid caustic soda Organic compound Vaccines for human medicine Homoeopathic medicaments (pure ayurvedic and yunani) Homeopathic medicaments not put up in measured doses or in forms or packings for retail sale Cream and like preparations Preparation for use on the hair Linear Alkyl Benzene sulphonic acids Herbicides, anti-sprouting products and plant-growth regulators Industrial monocarboxylic fatty acid Polypropylene

244,456 537,202 293,558 262,507 385,952 262,093 1,034,730 1,323,684 660,245 297,828 189,853 3,902,416 4,002,366 400,377 739,517 967,096 5,205,408 3,336,637 4,206,598 21,897,378 295,529 407,458 7,595,902 245,477 488,403 590,845 532,292 364,280 5,076,322

336,736 696,026 350,004 401,506 254,999 234,674 2,233,183 1,977,851 471,903 395,043 291,144 8,032,775 4,296,918 637,917 1,473,778 674,938 7,239,883 3,487,878 2,552,714 28,242,425 355,914 572,777 9,532,158 730,544 322,548 668,452 213,761 323,052 6,395,850

37.7 29.6 19.2 53.0 -33.9 -10.5 115.8 49.4 -28.5 32.6 53.4 105.8 7.4 59.3 99.3 -30.2 39.1 4.5 -39.3 29.0 20.4 40.6 25.5 197.6 -34.0 13.1 -59.8 -11.3 26.0

335,914 209,506 246,464 193,902 274,250 1,035,179

482,837 306,055 220,674 223,523 390,298 215,315

43.7 46.1 -10.5 15.3 42.3 -79.2

49 50 51 52

53 54 55 56 57

58

59 60 61 62 63

64 65 66 67 68 69

39202000 Plates,sheets, film, foil and strip of polymers of propylene 39219000 Plate, sheet, film, foil and strip of plastic 40112000 New pneumatic rubber tyre for buses or lorries 48025600 Paper or paperboard, weighing 40g/m2 or more but not more than 150g/m2, not containing fibres, in sheets with one side not exceeding 435mm and other side not exceeding 297 mm in the unfolded state 48042900 Bleached sack kraft paper in rolls or sheets 48239000 Paper and Paperboard 49011000 Printed books, brochures, leaflets and similar printed matter in single sheets 49019900 Printed books 52051100 Cotton yarn (other than sewing thread), containing 85% or more by weight of cotton Measuring 714.29 decitex or more (not exceeding 14 metric number) 52053100 Multiple or cabled yarn, of uncombed fibres measuring per single yarn 714.29 decitex or more 52121100 Woven fabric of cotton, unbleached, weighing not more than 200g/m2 52121300 Woven fabric of cotton, dyed, weighing not more than 200g/m2 52121500 Woven fabric of cotton, printed, weighing not more than 200g/m2 53031000 Jute and other textile bast fibers raw or retted 55032000 Synthetic staple fibre of polyester not carded combed or otherwise processed for spinning 62114200 W&G cotton Dhoti and Lungi, not knitted 62114300 Garments of man-made fibres 69089000 Ceramic tiles and cubes 70052900 Non wired glass 70109000 Carboys, bottles, flasks, jars, pots and phials of glass 72031000 Ferrous products obtained by direct reduction of iron ore

439,785 213,680 284,792 270,604

319,953 246,508 354,950 341,252

-27.2 15.4 24.6 26.1

203,023 225,421 265,241 357,779 324,152

193,732 371,085 304,285 387,749 264,469

-4.6 64.6 14.7 8.4 -18.4

399,467

388,486

-2.7

270,686 216,553 943,618 1,264,882 1,142,561

304,828 223,823 306,727 1,987,244 530,123

12.6 3.4 -67.5 57.1 -53.6

360,151 308,756 341,927 277,789 636,856 1,514,323

473,234 261,116 277,336 271,146 775,301 1,908,663

31.4 -15.4 -18.9 -2.4 21.7 26.0

70 71

72

73

74 75

76

77

78 79

80 81

82

83 84 85

72071900 M.S Billet 72082700 Flat rolled product of iron or non alloy steel, in coils, not further worked than hot rolled, pickled, of a thickness of less than 3mm 72083600 Flat-rolled products or iron or nonalloy steel in coils of a thickness exceeding 10 mm 72083800 Flat rolled product or iron non alloy steel of a width of 600 mm or more, hot rolled, not clad, plated or coated of a thickness of 3mm or more but less than 4.75 mm 72083900 Flat rolled product of iron of a thickness less than 3mm 72091800 Flat rolled products of iron or non alloy steel, of a width of 600 mm or more in coils, not further worked than cold-rolled of a thickness of less than 0.5mm 72092700 Flat rolled products of iron or nonalloy steel,of a thickness of 0.5 mm or more but not exceeding 1 mm, not in coil not further worked than cold rolled of a thickness of 3mm or more 72139110 Bar and rods, hot rolled, in irregularly wound coils, of iron or non alloy steel, of circular crosssection measuring not more than 8 mm in diameter 73110000 Container for compressed or liquefied gas, of iron or steel 74081100 Refined copper wire of which maximum cross-sectional dimension exceeds 6mm 76011000 Aluminium, not alloyed 76051100 Alminium wire of which the maximum cross-sectional dimension excceds 7 mm 79011100 Unwrought zinc, not alloyed containing by weight 99.99% or more of zinc 84138100 Pump for liquids not fitted with measuring device 84182100 Compression type refrigerators 84182900 Refrigerators

7,298,870 1,438,415

13,482,419 1,077,368

84.7 -25.1

520,240

703,131

35.2

373,097

1,019,293

173.2

830,558 4,220,235

1,657,904 1,456,068

99.6 -65.5

342,598

240,546

-29.8

2,056,129

3,128,129

52.1

366,384 236,603

191,087 699,547

-47.8 195.7

207,937 371,784

238,513 473,831

14.7 27.4

561,621

684,892

21.9

257,673 191,835 222,766

381,000 373,531 449,775

47.9 94.7 101.9

86 87

88

89

90

91 92 93 94 95 96 97 98

99

100

101

84295900 Mechanical shovels, excavators and shovel loaders 84749000 Parts of machine for sorting, screening, separating, washing crushing, grinding, mixing or kneading earth, stone, ores or other mineral substances, in solid form 85021100 Generating sets with compression ignition internal combustion piston engines (diesel engines) of an output not exceeding 75KVA 85021200 Generating sets with compression ignition internal combustion piston engines (diesel or semi-diesel) of an output exceeding 75 KVA but not exceeding 375KVA 85021300 Generating set with compression ignition internal combustion engine of an output exceeding 375 kva 85044000 Static converters 85072000 Lead acid accumulators 85171200 Telephone used for cellular or cordless networking 85299010 Television receiver parts 85401100 Colour cathode ray television picture tube 85414000 Photosensetive semi conductor devices 87019000 Tractors, 87021010 Buses (with a capacity more than 25 seats), with compression-ignition internal combustion piston engine (diesel or semi-diesel) 87032190 Motor car, vehicle of a cylinder capacity not exceeding 1000cc, with spark-ignition internal combustion reciprocating piston engine 87032200 Motor car, vehicle of a cylinder capacity exceeding 1000cc but not exceeding 1500cc, with sparkignition internal combustion reciprocating piston engine 87042110 Double-cab pickup principally desgined for the transport of goods and having mor than 2 seats including driver`s for the

587,745 211,734

1,290,782 371,667

119.6 75.5

869,684

770,589

-11.4

294,385

209,167

-28.9

265,249

278,788

5.1

355,742 676,060 25,245 252,637 192,392 190,418 2,996,887 251,311

293,552 921,786 395,713 358,428 360,027 285,117 4,480,774 408,895

-17.5 36.3 1467.5 41.9 87.1 49.7 49.5 62.7

471,162

565,778

20.1

834,522

3,030,686

263.2

190,016

408,161

114.8

102

87042120

103

87042300

104

87043200

105 106 107

87060019 87089900 87112000

108 109

87141900

transportation of persons, not exceeding 5 tonnes Single-cab pickup principally desgined for the transport of goods and having mor than 2 seats including driver`s, not exceeding 5 tonnes Motor vehicles with compressionignition internal combustion piston engine. gvw exceeding 20 tonnes Motor vehicles with spark ignition internal combustion piston engine gvw exceeding 5 tonnes Chasis fitted with engine of bus and trucks Parts and accessories of motor vehicle Motorcycle with reciprocating internal combustion piston engine of a cylinder capacity exceeding 50cc but not exceeding 250cc Motorcycle parts Others Total

323,030

552,862

71.1

995,251

1,408,938

41.6

648,781

587,853

-9.4

2,889,168 685,668 4,803,791

3,588,259 927,472 8,399,770

24.2 35.3 74.9

328,442 453,981 41,207,520 53,723,030 165,119,002 214,261,109

38.2 30.4 29.8

Region s Asia Africa Americ a Europe an Union Europe (Exclu ding E.U.) Oceani a

Percentage Composition of Regions in the Total Exports of Nepal Value in '000 Rs F.Y. 2005/06 F.Y. 2006/07 F.Y. 2007/08 F.Y. 2008/09 F.Y. 2009/10 Value %Co Value %Co Value %Co Value %Co Value %Co mp mp mp mp mp 43,716, 73.13 45,067, 76.48 45,689, 78.14 53,151, 77.48 48,012, 78.77 308 084 118 007 008 108,48 0.18 295,96 0.50 103,93 0.18 616,81 0.90 129,17 0.21 8 0 5 3 1 7,711,4 12.90 6,248,1 10.60 5,479,2 9.37 5,895,1 8.59 4,850,2 7.96 11 16 02 45 17 7,329,0 12.26 6,477,7 10.99 6,355,4 10.87 7,610,5 11.09 6,767,0 11.10 40 81 63 86 64 728,39 4 1.22 597,91 1 1.01 638,67 8 1.09 862,55 6 1.26 781,62 4 1.28

183,23 3

0.31

240,24 5

0.41

207,96 3

0.36

460,74 5

0.67

409,52 0

0.67

Total

59,776, 874

100

58,927, 097

100 58,474, 359

100

68,596, 852

100

60,949, 603

100

Percentage Composition of Regions in the Total Imports of Nepal Value in '000 Rs F.Y. 2006/07 F.Y. 2007/08 F.Y. 2008/09 F.Y. 2009/10 Region F.Y. 2005/06 Value %Co Value %Co Value %Co Value %Co Value %Co s mp mp mp mp mp 144,045 89.6 172,613 88.1 210,960 89.0 253,639 87.1 335,249 89.2 Asia ,678 5 ,922 5 ,285 0 ,823 6 ,735 6 Africa 285,968 0.18 987,758 0.50 779,029 0.33 952,153 0.33 629,622 0.17 Ameri 5,019,8 3.12 9,576,0 4.89 11,189, 4.72 12,033, 4.14 12,048, 3.21 90 30 288 144 120 ca Europ 6,317,1 3.93 8,209,2 4.19 8,995,1 3.79 15,841, 5.44 15,471, 4.12 97 26 47 115 183 ean Union Europ 2,567,1 1.60 1,705,9 0.87 2,532,6 1.07 5,363,7 1.84 6,164,9 1.64 45 81 72 71 78 e (Exclu ding E.U.) Oceani 2,442,0 1.52 2,715,4 1.39 2,573,8 1.09 3,170,9 1.09 6,042,2 1.61 46 95 55 38 33 a 160,677 100 195,808 100 237,030 100 291,000 100 375,605 100. Total ,924 ,412 ,276 ,944 ,870 00 Major Trading Partner of Nepal - Exports S.N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Countries India U.S.A Bangladesh Germany Bhutan U.K France China P.R Canada Italy Japan Switzerland Hongkong SAR Australia Singapore Value in '000 Rs F.Y.2005/06 F.Y.2006/07 F.Y.2007/08 F.Y.2008/09 F.Y.2009/10 40,714,700 41,728,800 38,555,700 43,574,482 39,902,811 6,993,442 5,571,274 4,598,900 4,878,573 3,867,223 234,323 521,498 4,664,363 4,710,402 3,373,718 2,843,770 2,573,710 2,332,051 2,785,047 2,391,036 238,275 310,958 142,688 194,826 1,554,824 1,184,079 998,689 1,066,347 1,429,686 1,228,188 1,297,493 903,951 1,001,164 1,144,695 1,152,930 892,583 377,991 736,405 1,847,934 1,008,696 644,633 593,703 713,733 795,372 768,090 712,327 684,308 583,796 851,549 716,188 572,094 559,457 488,053 572,659 554,158 317,668 316,816 391,235 251,929 370,959 111,755 824,782 208,021 303,463 369,414 154,074 209,046 175,860 432,743 333,140 322,552 179,602 230,409 509,185 305,665

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Turkey Belgium Netherlands U.A.E Spain Denmark Malaysia Austria Sri Lanka Pakistan Brazil Taiwan New Zealand Sweden South Africa Sub Total Other Countries Grand Total

278,088 308,860 228,988 164,704 282,625 81,473 35,574 100,077 2,207 186,228 20,165 70,318 27,831 97,565 16,245 59,134,716 642,158 59,776,874

174,801 191,078 246,419 147,269 382,556 94,105 47,787 162,189 3,123 126,944 25,687 56,953 29,550 63,228 17,787 58,124,060 803,037 58,927,097

107,728 249,661 288,241 176,444 357,667 110,820 78,833 88,009 35,147 80,681 40,630 70,446 31,664 54,706 31,867 57,691,268 783,091 58,474,359

472,458 313,351 249,273 575,787 214,190 215,273 81,302 78,345 161,544 86,003 73,340 55,072 26,575 58,520 71,667 67,015,247 1,581,605 68,596,852

276,970 265,807 258,139 255,032 181,061 175,945 110,324 100,969 100,263 78,971 73,961 71,187 70,870 63,332 62,486 60,042,356 907,247 60,949,603

Source:- Nepal Rastra Bank and Trade & Export Promotion Centre Major Trading Partner of Nepal - Imports S.N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Countries India China , P.R. U.A.E Indonesia Thailand U.K. Japan Korea R. U.S.A Argentina Singapore Australia Hongkong SAR Malaysia Switzerland Ukraine Germany Saudi Arabia France Taiwan Finland New Zealand F.Y.2005/06 F.Y.2006/07 F.Y.2007/08 107,143,100 115,872,300 142,376,500 12,083,497 16,678,616 22,255,845 1,095,681 3,918,139 5,595,496 5,647,780 11,172,109 9,913,528 2,602,072 3,459,455 4,983,493 961,421 1,727,103 1,643,360 1,935,082 3,228,975 6,148,086 1,788,882 2,380,471 2,077,020 1,677,499 4,259,983 3,718,141 1,004,623 2,256,212 3,918,526 3,375,219 5,496,878 5,268,690 1,415,339 1,854,733 1,750,986 930,930 1,029,464 1,177,360 2,474,661 2,794,632 3,833,725 490,840 479,342 592,684 610,583 123,891 644,518 2,761,788 2,432,693 3,430,346 2,329,692 2,592,689 2,677,690 909,860 585,518 833,606 567,911 795,973 1,231,952 69,540 60,677 20,913 1,018,791 841,128 817,854 Value in '000 Rs F.Y.2008/09 F.Y.2009/10 165,119,002 214,261,109 32,852,910 39,218,203 3,447,989 33,398,621 8,307,186 8,093,843 6,637,979 7,504,724 6,499,879 7,298,818 6,111,189 6,267,573 2,955,257 5,885,329 3,808,616 5,384,826 6,478,282 5,036,656 7,047,113 5,007,334 2,283,158 4,950,297 1,612,837 4,227,410 4,888,939 4,207,297 2,013,740 2,743,879 2,029,459 2,499,366 2,244,435 2,321,819 8,683,695 1,832,945 2,417,042 1,662,686 1,752,847 1,519,883 76,637 1,214,488 887,780 1,091,571

23 24 25 26 27 28 29 30

Italy Bangladesh Brazil Qatar Canada Netherlands Denmark Russia Sub Total Other Countries Grand Total

394,799 104,646 1,165,721 482,333 715,124 304,372 306,370 900,526 157,268,682 3,409,242 160,677,924

922,615 286,477 1,267,138 682,624 1,098,106 642,995 764,933 812,297 190,518,166 5,290,246 195,808,412

593,136 491,211 468,305 644,864 2,631,355 696,265 501,731 1,131,565 232,068,754 4,961,522 237,030,276

457,882 418,014 77,117 855,644 927,281 758,479 357,910 1,086,928 283,095,227 7,905,717 291,000,944

949,066 764,830 620,858 563,336 551,039 511,998 438,665 436,032 370,464,500 5,141,370 375,605,870

Source:- Nepal Rastra Bank and Trade & Export Promotion Centre Chart Diagram of Foreign Trade Balance of Nepal

Chart Diagram of Foreign Trade Composition of Nepal of F. Y. 2009/10

Chart Diagram of Regional Breakdown of Total Trade of Nepal F.Y. 2009/10

Chart Diagram of Nepal's Trade with India

Chart Diagram of Nepal's Trade with China P.R.

Transit Procedure

Exports

I. Payment arrangements. 52. Under the Foreign Exchange (Control) Act and Rules, exports are permitted only against advance payment or documentary credit (L/C) to ensure that the payment for the goods is received in Nepal. Therefore, Nepalese Customs releases export shipments only after verifying the bank certificate of advance payment or L/C copy certified by a commercial bank. The exporter has to declare in form BBN I at the time of export that the export earnings will be repatriated within six months in case of transactions under L/C. If payment is not received within 6 months or such extended time as authorized by NRB, the commercial bank has to inform NRB for inquiry into the matter. 53. There is no limit on advance payment but the buyer has to remit the foreign exchange through a bank or has to exchange foreign currency with a bank while visiting Nepal. The bank issues a certificate of advance payment in a specified format (Annex 16) to the seller or exporter as nominated by the foreign buyer at the time of exchanging the currency. This certificate has to be produced to the Customs at the time of export. However, foreign nationals can carry out as accompanied or unaccompanied baggage Nepalese products up to a value of US $ 1000 without producing foreign exchange certificate of a bank. 54. When using the other payment method, the L/C specifies the terms and conditions for shipment. After the L/C is received from its correspondent bank, the bank sends a copy to the exporter. It is the responsibility of commercial banks to see that L/C terms and conditions are fully met before accepting shipment documents and releasing payments to an exporter. Nepalese exporters prefer the irrevocable L/C, as it is normally withdrawn only when the exporter does not meet the terms and conditions of shipment leading to the rejection of documents for negotiation by the bank. Therefore, this type of L/C ensures safety of payment to the exporter. Currently banks at the both ends normally mention in most L/C documents that the credit is subject to the UCP 500 (1993). 55. The commercial banks experience on average 4 shipments out of 1000 that exceed the shipment date specified by the L/C, and most of the documents are subject to discrepancies. Therefore, it has become a normal practice to accept such documents on exporter's risk for negotiation with the correspondent bank. Depending upon the credit status of an exporter, the bank may or may not release payment to the exporter against discrepant documents before confirmation of acceptance of such documents from the correspondent bank. If the payment received from the correspondent bank is not more than USD 500 less than the stipulated L/C amount, the bank can accept the payment with information to NRB. But if the discrepancy in payment is more than USD 500, the bank has to obtain prior permission of NRB to accept the payment. Partial shipment and part payments are allowable only as per the terms of L/C. While releasing payment to the exporter before realizing payments from the correspondent bank, the bank deducts some amount as interest. The interest rate may vary from bank to bank. For instance, one of the commercial banks is charging 12 days interest at 14%. Another commercial bank levies 15 days interest at 12% assuming that the payment will be received within 14-15 days. Most exports are on FOB Kathmandu Airport or Calcutta although a separate payment for freight is allowed subject to the submission of documentary evidence including

quotation for freight rates. II. Certificates for exports. 56. As the export of specific products like readymade garments takes place regularly in sizable lots requiring timely delivery, uniform quality and tailoring, overseas buyers tend to either permanently station their own staff in Nepal or send experts from India to inspect quality whenever shipments are ready for export. The L/C specifically provides for the production of quality certificate from a nominated agency/person in garment exports. 57. Certificate of Origin. There are two private sector associations called Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Nepal Chambers of Commerce (NCC) which issue Certificate of Origin (COO) required by Nepalese Customs on all exports. 58. FNCCI- A seven-copy set of COO (Annex 17) is printed and issued at a cost of NPR 5 per set. Then a charge of 12 paisa per NPR 100 (0.12%) of FOB invoice value is levied at the time of putting stamp and signature on COO when it is filled by an exporter. An exporter needs to apply with an invoice and sometimes L/C copy to verify the value of goods by the concerned district chamber of commerce to obtain the COO. 59. FNCCI does not itself issue COO but arranges its printing in the name of the each district chamber by allocating a separate code number on the COO. FNCCI has delegated its authority of issuing COO to the following district Chamber of Commerce offices, which are its members: o Nepal Chamber of Commerce, Kantipath, Kathmandu. o Lalitpur Chamber of Commerce and Industry, Lalitpur. o Birgunj Chamber of Commerce and Industry, Parsa. o Bhaktapur Chamber of Commerce and Industry, Bhaktapur. o Morang Merchants' Association, Morang. o Makwanpur Chamber of Commerce and Industry, Makwanpur. o Pokhara Chamber of Commerce and Industry, Kaski. o Siddharthanagar Chamber of Commerce and Industry, Rupandehi o Morang Chamber of Industries, Morang. o Butwal Chamber of Commerce and Industry, Butwal. o Janakpur Chamber of Commerce and Industry, Janakpur. o Narayangarh Chamber of Commerce and Industry, Chitwan. o Nepalgunj Chamber of Commerce and Industry, Bankey. o Kailali Chamber of Commerce and Industry, Dhangarhi. o Gorkha Chamber of Commerce and Industry, Gorkha. o Nawalparasi Chamber of Commerce and Industry, Nawalparasi. o Krishnanagar Chamber of Commerce and Industry. Kapilbastu.

60. FNCCI also arranges issuance of COO for exports to SAPTA (SAARC Preferential

Trading Arrangement) member countries under the similar arrangements for certification and charges. The format as specified by the SAPTA agreement is very similar to GSP Form A. The colour of COO used for export to SAPTA countries is different from that used for overseas exports. 61. Under the terms of the bilateral Treaty of Trade signed between Nepal and India on December 1996, the export of Nepalese manufactured products is given duty free preferential market access in India. Such product must be manufactured in Nepal and accompanied with a certificate of origin issued by authorized district chambers of FNCCI in the format prescribed by the Treaty. A technical committee headed by the Director General of Department of Industry and consisting of public and private sectors representatives examines in detail the application form and supporting documents submitted by an exporter of manufactured products to confirm the manufacturing process of the product intended for export to India. Examination is usually made of a new product for exporting first time to India. For export of products other than manufactured goods under the preferential market access this prescribed format of COO is not required. 62. NCC-NCC has also been issuing its own COO (Annex 18) for a long time in Kathmandu. An exporter is required to submit following documents to obtain COO from NCC: o Invoice, o Payment Certificate (L/C or advance payment), o Archeological and valuation certificates for handicrafts, o Other certificates like phytosanitary, royalty payment for herbs etc where applicable. 62. NCC takes a charge of NPR 4 per set at the time of issuing and 12-paisa (0.12 %) per NPR 100 of invoice value at the time of certifying the COO. If FOB value is declared, then the charge will be based on FOB value. 63. NCC also issues COO for exports to India for preferential market access as per the format prescribed by the Treaty of Trade with India. It is issued against a charge of NPR 3 per set. Then for certification a fixed rate of NPR 11 per consignment is charged from the exporter. 64. NCC has also been operating a separate branch office at Sinamangal near the Tribhuvan International Airport to issue COO for third country exports for the last two years. 65. Issuance of Generalized System of Preferences Form A (GSP). An exporter has to fill in a separate standard document called as GSP Form A for stamping and certifying by the Nepalese Customs at the time of export provided the product is eligible for the tariff preference under the GSP scheme of the destined preference giving country. GSP Form A is printed in a special format and colour approved by UNCTAD for acceptance by preference giving countries. The original GSP Form A (Annex 19) is stamped and certified by the Customs at the time of export. On the strength of this certified original GSP the overseas buyer obtains tariff reduction facility while releasing goods from the Customs in the importing country. GSP Form in Nepal is distributed by two agencies.

66. A carpet exporter first has to request the Trade and Export Promotion Center (TEPC) for the issuance of GSP. Then a three-member team consisting of representatives from the Ministry of Commerce, Central Carpet Industries Association and TEPC makes field inspection at the applicant's production site to verify whether carpets intended for exports are produced locally. On the recommendation of the team TEPC issues GSP Form A to the exporter who submits an application form with a copy of advance payment certificate or L/C copy. TEPC issues GSP form for the export of Nepalese handknotted woollen carpets at a cost of NPR 2 per square meter. 67. For export of other products, Trade and Export Promotion Centre (TEPC) issues the GSP Form A to exporters who apply in a covering letter enclosing copies of certificates of enterprise registration and income tax registration. The charge for each four copies GSP set Form is NPR 15. 68. Letter of recommendation for export visa for readymade garments. Nepal government has constituted a Readymade Garments Export Promotion Committee under the chairmanship of Commerce Secretary and represented by various public and private sector organizations to frame visa issue procedures including documentation and inspection. In this respect Garment Association-Nepal (GAN) provides various services as explained in paragraphs 70-75 below. 69. The European Union allows, under the GSP rules of origin, tariff preference on readymade garments manufactured in Nepal from woven fabrics or yarn originating in an ASEAN member country (except Myanmar), SAARC or Lome Convention country, and imported into Nepal for manufacturing garments. As per the recent protocal concluded between Nepal government and European Union, a new system is introduced since I March, 2000. According to it, for exporting textiles products of five categories - (a) Knitted Shirts, (b) Knitted Pullovers (T-Shirts), (c) Men's or Boys Woven Breeches, Shorts, (d) Women's or Girl's Blouses, Shirts and Shirt Blouses, (e) Women's or Girl's Dress, exporters need to obtain export license from the Department of Commerce. Separate type of Certificate of Origin is also being issued from Chamber of Commerce, (Annex-ISA). The EU has fixed a quota for different types of garments to be imported from Nepal. This quota is applicable only for the purpose of tariff preference under GSP Scheme in the EU market. For exporting to EU market, exporters need to apply to GAN in a covering letter by enclosing the following documents: o Invoice, o Documents to prove manufacture in Nepal, i.e. customs import declaration to verify the import of fabrics, or documents issued by the Cottage and Handicraft Emporium showing locally manufactured fabrics, o COO issued in the country from where the fabrics were imported, o L/C copy, o Packing list (required normally for large quantity exports. 70. After receiving the application, an inspection team of GAN is sent to the applicant's factory to verify the garment production. Thereafter, GAN issues a letter of recommendation to the concerned Customs staling that the garments in question are produced from the fabrics imported from abroad or manufactured locally, and requesting issue of a GSP certificate. On the strength of this recommendation letter the Customs

makes endorsement by putting' its stamp and signature on GSP Form A at the time of export. 71. For export to the USA and Canada where quota has been fixed for specific categories of garments, GAN is required to issue a recommendation letter (Annex 20) to the Readymade Garments Visa Cell (RGVC) of National Productivity and Economic Development Centre Limited (NPEDC). RGVC is located at the same premises of GAN at New Baneswor, Kathmandu. 72. A Visa is required on all readymade garments exported to the USA whether a quota has been fixed or not except for garments made of 100 percent silk or woollen garments. The visa, which is also called 'Special Customs Invoice', is issued by the RGVC in the format approved by the US Government. 73. Exporters intending to export garments under quota to Canada or the USA need to apply to GAN with the following documents: o Application in specified format, o Invoice, o Documents to prove manufacturing in Nepal, i.e. customs import declaration to verify the import of fabrics, or documents issued by the Cottage and Handicraft Emporium showing locally manufactured fabrics, o Copy of certification by the concerned customs along with swatches, i.e. sample piece of fabrics imported for use in the production of garment intended for exports, o L/C copy, o Customs export declaration for previous exports, o A copy of fabrics consumption form which is prepared for submission to the Customs. 74. On receiving the documents, GAN may send a team to inspect the factory of the applicant, but the factory may not be inspected depending upon the credit status of the applicant, in which case the recommendation letter states that inspection is not required. Then a letter of recommendation is issued in a printed or computerized format in the name of RGVC and handed over to the applicant. However, such inspection is not required for the issue of a Visa for exporting to Canada. GAN levies following charges for issuing recommendation letters to the Customs for certifying GSP Form A on garment exports to EU and to RGVC for issuing Visa on garment exports to the USA and Canada: o 20 paisa per piece- for all type of tailored garments exported on piece basis o 10 paisa per piece- for knitted garments, o 20 paisa per kg - for all garments exported on weight basis. 75. For the USA categories numbers 363 (Cotton Terry Towel) and 369-S (Cotton Shop Towel) as well as for non-quota category number 369-0 (other types of cotton towel like dust towel), there is an another agency called Nepal Cotton Towel Exporter Association (NCTEA) that issues a recommendation letter (Annex 21) to the RGVC by following almost the same procedures and documentation as applied by GAN. An exporter needs to apply to NCTEA with the following documents: o Application in a specified format, o Income tax certificate/PAN,

Industry registration certificate, Documents to prove manufacture in Nepal, i.e. customs import declaration to verify import of yarn, or documents showing locally procured yarn, o Customs declarations showing previous export, required for second time exporter, o L/C, o Invoice. 76. After verification of the documents, NCTEA issues a letter of recommendation to RGVC for the issuance of a visa to the applicant against a fee of 20 paisa per kg. Of the two copies of the recommendation letter, one copy is handed over to the applicant for submission to RGVC and one copy is kept for official record. If an applicant requests a recommendation letter for more than the stipulated quantity, NCTEA inspects the applicant's industry to verify the production capacity and the stock of garments ready for shipment before issuing the letter. In the case of new applicants also NCTEA issues recommendation letter only after inspecting their production sites. The garment and towel manufacturers are required to use temporarily admitted or locally produced fabrics/yarn. 77. Issuance of visa for export of readymade garments. Exporters of garments and towel to the USA and Canada apply for visa to RGVC of NPEDC with the following documents: o Application in a specified format, o Letter of recommendation of GAN or NCTEA, o Invoice copy, o L/C copy, o Copy of the customs export declaration as evidence of previous shipments, o Certificate of inspection, if GAN or NCTEA has inspected the factory. 78. After the documents are verified, RGVC issues four copies of visa form (Annex 22) certified with a visa number stamp and authorized signature. The form is entitled Special Customs Invoice. The four copies of the set are used as follows; o White copy to the exporter for transmission to the buyer, o White copy retained for RGVC records, o Yellow copy to the exporter for surrendering to Customs, o Blue copy to the exporter for records. For the issuance of visa, RGVC makes a charge of 0.2% of the invoice value on all garment exports to the USA and Canada. Overseas buyers require the original visa for releasing the consignments from their Customs; it is not endorsed by Nepal Customs.; The visa remains valid for only five days, and the exporter must ship consignments within that time. 79. Additional documents for the export of readymade garments. For the export of garments to the US market the documents described in paragraphs 81-84 are also prepared by the exporter. 80. Special Customs Invoice (SCI). A visa is itself an SCI, but some American buyers continue to demand a separate SCI in addition to a visa. It does not have to be certified. 81. Multiple country declaration (MCD). MCD (Annex 23) is a requirement of the US

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Customs and without it the garment consignment is not permitted entry into the USA. The main purpose of this document is reportedly to verify the value addition and manufacturing process in Nepal as a precautionary measure against possible transhipment of garments of another country of origin. 82. Beneficiary statement (BS). This extra document is prepared only at the request of the buyer. BS is simply a statement off actual details on the shipment of cargo and transmission of documents as specified by L/C. 83. Quota charge statement (QCS). QCS is an extra document prepared only at the request of the buyer and contains a declaration as to the inclusion of all manufacturing charges in the FOB price. 84. Valuation certificates for handicraft products. Nepalese Customs assesses customs export valuation of different handicraft products on the basis of recommendations of the Handicraft Association of Nepal (HAN). The documentary requirements are described below in paragraphs 86-89. 85. Valuation certificate for handicrafts. Handicraft exporters take export samples and five invoice copies to HAN. Except for the suspicious and doubtful cases for which all export quantity are brought to HAN for detailed examination, an authorized official of HAN puts stamp and signature on all copies of the invoice and writes a letter of recommendation (Annex 24) addressing the concerned Customs mentioning the certified total value of the particular consignment. HAN makes a fixed charge of NPR 50 up to the export value of NPR 10,000 and NPR 100 for more than NPR 10,000 value. 86. Certification for handicrafts produced from domestic animal none, leather and horn. For the export of handicrafts like buttons, tie-pins and other articles produced from bone, leather and horn of domestic animals, HAN examines samples brought to it by an exporter and certifies the invoice by issuing a no-objection letter (Annex 25) certifying that the goods are made from domestic animals. The fee charged for this purpose is NPR 20 up to the value of NPR 4,000 as minimum charge and then 0.5 percent of invoice for any excess value. 87. Valuation certificate for silver handicrafts. Under the regulations of NRB, a minimum value addition of 3 5 percent to the market value based on the international price of silver is required for exporting silver based handicraft products like jewelry, decorative articles and utensils. NRB sends a copy of international price list transmitted periodically to the Department of Mint. After checking the value addition in the invoice value, GAN puts its stamp and signature on the back of the invoice, which is made in seven copies as per the approved format of NRB. A letter of value recommendation is also issued. HAN makes a fixed charge of NPR 50 up to the export value of NPR 10,000 and NPR 100 for more than NPR 10,000 value. 88. Certification for gold handicrafts. For the export of gold handicrafts a valuation certificate is not required. Under the NRB regulations, only the Customs is required to check the minimum value addition of 10 percent in the invoice value for permitting

exports. As in silver handicrafts, the invoice has to be made for exporting gold handicrafts in the approved format of NRB for checking by the Customs. The main function of HAN is to issue a Passbook to an applicant-exporter by charging NPR 700 to HAN members and NPR 1,000 to others. The Passbook is to be produced to the Customs at the time of export. The Passbook contains detail entries made by NRB at the time of selling gold to the exporter who is required to submit all export documents as an evidence of utilization of gold purchased previously. Export of silver and gold based handicraft products are at present shipped only through Tribhuvan International Airport and Foreign Post Office, both located at Kathmandu. 89. Archeological Certificates. The export products of archeological importance and artistic values, which generally include idols, curios and thanka paintings of more than 100 years old is prohibited. Only ordinary products do not require such examination by the Department of Archeology (DOA). Exporters intending to sell such items need to fill in an application form giving detailed particulars about the size, weight, quantity and making date, and then submit to DOA by affixing a postage stamp of NPR 5. The application form is available in the printed format at DOA office. Then the exporter is also required to affix postage stamp of NPR 3 on the second copy of a certificate, which is also printed in an approved format of DOA. The total cost for completing the examination by DOA is thus NPR 8. On the basis of the application details, experts at DOA examine each and every item depending upon the nature of the product. The DOA staff put a lac seal on each and, if the pieces are small, put a joint seal on the mouth of the plastic/paper bag containing a number of pieces. Then it issues a certificate in two copies giving details of the products examined by them. Out of the two copy certificate (Annex 26) the original is handed to the exporter and the second copy containing the postage stamp of NPR 3 is retained at DOA office for record purposes. 90. Certification for exports of plants and forest products. Approval has to be obtained from the concerned department for the export of plant and forest products, which are not prohibited for export in raw or unprocessed form. 91. First, a release letter has to be obtained from the District Forest Office (DFO). An application containing details on the type of herbs to be collected, collection area, expected collection quantity and purpose (export or domestic-'uses) is to be submitted to the DFO located in all districts except Mustang. The DFO issues a written permission letter (Annex 27) to the applicant. After collecting, storing and weighing, stipulated quantity of the herb on the strength of this letter, the exporter has to approach the DFO, which, after any necessary examination, charges the stipulated royalty payment and issues a release letter (Annex 28). The release letter as a proof of royalty payment allows domestic transportation and uses of the herb. In addition, if the product is intended for export, the exporter also has to apply to the DFO for a recommendation letter to the concerned Customs. All the procedures along with the royalty rate are prescribed in the Forest Rules 2051 BS (1995). 92. For the export of extracts and by-products of plants and herbs, permission from the Department of Plant Resources (DOPR) has to be obtained. DOPR has prescribed a format of application (Annex 29) for submission by an exporter in two copies by affixing

NPR 5 postage stamps. For forest based products like herbs the release letter of DFO also is to be submitted. After receiving an application, DOPR deputes its staff, if necessary for large lots, to the manufacturing/storage sites to draw samples from each box/container. These samples are tested in the lab of DOPR and if found satisfactory all boxes/containers are sealed. Thereafter, DOPR issues a recommendation letter (Annex 30) to the concerned Customs to allow exports of the consignment. DOPR also issues permit letter to export waste and by-products after verifying whether such products can be farther processed or put for better utilization inside the country. DOPR levies a fixed charge of NPR 150 per sample for lab test. 93. Most countries permit imports of plants and plant products only on the basis of a Phytosanitary Certificate (PC). Nepal's Plant Protection Act 1972 and Plant Protection Rules 1975 have made it mandatory to obtain PC for exporting plants and plant products. An exporter has to submit an application (Annex 31) to Plant Quarantine Section (PQS) of Department of Agriculture along with supporting documents like income tax certificate, enterprise registration certificate, copy of customer's order, and, if products are forest based, a release letter of DFO. PQS has made arrangements to send its staff to the production site if it is necessary for examination of plants and plant products. If plants are found in healthy conditions, PC (Annex 32) is issued by PQS. This service is also available from the seven plant quarantine offices located at the Customs Posts of Kakarvita, Biratnagar, Jaleshwar, Birgunj, Bhairahwa, Nepalgunj and Tribhuvan International Airport. No charge is levied for the issue of PC on export. III. Clearance at Nepalese Customs. 95. An exporter or CA has to submit the following documents to the Nepalese Border Customs: o CTD (yellow copy, o Nepal customs export declaration, o Authority letter of CA, o Invoice, o Packing list, o L/C or certificate of advance payment, o Certificate of origin, o Foreign exchange declaration form No.1 of NRB, o Enterprise registration certificate, o Income tax registration certificate/PAN, o VAT certificate for beer, spirits and cigarettes, o Visa certificate for readymade garments, as applicable, o Valuation certificate for handicrafts, o Value addition certificate for silver handicrafts, o Passbook for gold handicrafts o No-objection letter for domestic animal bone, leather and horn based handicrafts, o GSP Form A, if applicable, o Clearance certificate of Department of Archeology for certain handicrafts, o Clearance certificate of Department of Plant Resources for forest and plant based products,

Phytosanitary certificate of PQS, Department of Agriculture for plants, Clearance certificate of Department of Drug Management for medicines, Clearance certificate of Department of Mines and Geology for mineral products. 96. After the consignment is checked and verified with related documents, the Nepalese customs officer endorses the CTD (Annex 33). 97. After the payment of customs charges, CA is given clearance to export and move the cargo to the Indian border. If a container was booked with prior arrangement with a shipping line, the cargo is loaded into the container at the customs premises. Containers are also brought to Kathmandu and other factory sites for the loading of export consignments, but the goods are subject to customs check at the border. IV. Entry into India. 98. The exporter or CA approaches the corresponding Indian Border Customs with the cargo and submits the following documents: o CTD duly endorsed by the Nepal Customs, o Invoice-original, o Packing list-original, o Certified copy of L/C or Certificate of advance payment, o Certificate of origin-original, o Duty insurance or legally binding undertaking in the name of the concerned Commissioner of Customs, o Authority letter of CA. In the 1999 Treaty of Transit it has been stated that no additional documents other than invoice, packing list and certified copy of L/C will be asked for by the Indian Customs except when considered necessary for the clearance of any specific goods. 99. The Indian Border Customs check OTL of containerized cargo and, if found intact, allow onward transportation without physical examination of cargo unless there are valid reasons to do otherwise. If OTL is found broken or defective, the goods are checked to see that they are in accordance with CTD. Then a fresh OTL is put on the container with its serial number endorsed on CTD before allowing onward transportation to the seaport of exit. The Indian Border Customs make a selective examination of non-containerized goods to check that they are as per the CTD. As with imports, specified sensitive goods must be transported in closed railway wagons or pilfer-proof containers, which can be securely locked. Containers or wagons are locked and duly sealed after examination by the Customs. 100. After examining the cargo, documents and seals, the Indian Border Customs endorses all four copies of CTD and hands the original to the CA, and retains the fourth copy for its record. The duplicate and triplicate copies are to be sent by post to the Calcutta Customs, but to avoid delay in postal transmissions, they are handed to the CA in a sealed envelope. However, this facility will not be allowed for any exporter who defaults in the timely production of these documents

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101. Duty Insurance. As with import cargo, duty insurance for export cargo is required only for specified sensitive goods, and a legally binding undertaking is required for other goods. 102. CA sends documents including the original CTD and seal cover generally with the driver of the vehicle carrying the cargo or by courier service or send a personal carrier for delivering to the authorized agent in Calcutta. Normally it takes two to four days for containers to reach Calcutta port. V. Procedures at the port of exit. 103. When documents reach Calcutta, CA files documents at the Customs House. The Customs House compares the original CTD with the duplicate and triplicate copies received separately in a sealed envelope from CA. Documents are cleared permitting exports by Calcutta Customs normally within 24 hours of filing. After documents are cleared by the Calcutta Customs, CPT approval is obtained for taking the cargo inside the port. At the same time booking of container with a shipping line is also confirmed. The export cargo is then taken inside the port where the Customs EO or PO checks seals and locks on the wagons or containers and packages, and compares with the declaration made on CTD. 104. If seals and locks are found intact, EO endorses all copies of CTD. In cases where seals and locks are not intact or there is otherwise suspicion, the goods are checked on percentage basis to ensure that they correspond with the information on CTD before endorsing all copies. Then the cargo is loaded onto a vessel or handed over to the ship's agent inside the port. After necessary endorsements, EO gives back the original, duplicate and triplicate copies of CTD to CA who takes them again to the Calcutta Customs. After the Calcutta Customs makes necessary entries on all copies, the original is handed back to CA for submission to the Border Customs, the triplicate copy is sent to the Border Customs and the duplicate copy retained for records. Transit Procedure

Imports
I. Purchasing Procedures Purchases from India 1. Purchases from India are normally paid for in Indian Rupees since the currency is fully convertible in Nepal. When Indian suppliers sell their products to Nepalese importers, Indian excise duty must be paid and included in the sale price by the supplier. The rate of excise duty varies widely from product to product. However, if payment is made in hard currency, the goods are exempted from payment of excise duty in India, i. e. the supplier does not have to charge it.

2. Government of Nepal also allows imports of specified products from India with payment in foreign currency. The Nepal Rastra Bank (NRB) currently enlists 29 such products (Annex 1) for importation from India by Nepalese industries against payment in foreign currency. Purchases from Third Countries 3. All 13 commercial banks deal in foreign exchange transactions in accordance with the Foreign Exchange (Regulation) Act 1962, Foreign Exchange (Regulation) Rules 1963 and directives issued from time to time by NRB. The policy of liberalization allows open imports without a licence. NRB issues general directives with modifications from time to time to the commercial banks on the opening of Letters of Credit (documentary documentary credits-L/C) and the release of payments for imports accordingly. 4. Advance payments for goods and separate payments for freight are not allowed. Therefore, the normal type of purchase is CIF/C&F Calcutta for sea and CIF/C&F Kathmandu for air. Project cargo and public sector purchases by sea are imported also on CIF Nepal basis. Only by opening an L/C through an authorized bank can payment be made in hard currency. The banks at the both ends normally mention in most L/C documents that the credit is subject to the ICC Uniform Customs and Practice for Documentary Credits-UCP 500 (1993). 5. With the exception of prohibited and quantitatively restricted goods (Annex 2), there is no restriction on the release of foreign currency for importing any type and quantity of goods. But to obtain foreign currency from the commercial bank the importer has to open a documentary credit (L/C) by fulfilling the requirements of the bank. Irrevocable L/C is the commonly used documentary credit for the settlement of payment in imports from third countries. Under the usual terms of L/C, the correspondent bank normally releases payment to an exporter or beneficiary on production of shipment documents. Procedures for opening and paying L/C in a commercial bank. 6. An importer has first to open an account with a commercial bank. 7. It is customary for a bank to sanction total amount of credit limit to the importer on different headings/transactions like loan, overdraft and L/C payments on an annual basis. For other type of customers/importers requiring only casual transactions, the bank fixes a credit limit on ad-hoc basis for L/C purpose. 8. An importer fills in a foreign exchange control form BBN 3 (Annex 3) requesting the bank to open a L/C in the name of a nominated overseas exporter. Then the BBN 3 is submitted along with an undertaking of the importer indemnifying the bank against any liability, and other supporting documents like pro-forma invoice, Registration Certificate of Department of Commerce (Annex 4) or Department of Industry (Annex 5) or Department of Cottage and Small Industry (Annex 6) or Company Registrar Office (Annex 7), Registration Certificate of Department of Income Tax (Annex 8) and Registration Certificate of Department of Value Added Tax (Annex 9). Since November

1999, Kathmandu Tax Payers Service Centre is issuing computer-based Permanent Account Number (PAN) Card to all the tax payers of Kathmandu valley for gradual extension later to other districts. PAN is issued with a new tax certificate (annex 9a, 9b & 9c) for identification of all taxes including VAT & Customs. For importing raw wool, the Carpet and Wool Development Board (CWDB) issues a recommendation letter specifying the quantity and standard of wool to be imported by an applicant/importer in the name of the concerned bank. 9. Depending upon the credit limit sanctioned by the bank for L/C purpose and the relation with the bank, the importer is generally required to deposit an amount ranging from 10 to 100 percent of the L/C value at the bank. 10. As negotiated with the importer, the bank contacts its corresponding bank located at the exporter's place for opening L/C based on sight payment or deferred payment terms. 11. Under the widely used 'Sight L/C', full payment is made to the exporter by the correspondent bank at the time of submission of shipment documents as specified in L/C. Similarly, the Nepalese importer is also required to make full payment to his bank at the time of release of shipment documents. 12. Another type of L/C payment is called 'Usance or Time L/C' under which terms the payment is deferred for a certain period of time as specified in the L/C. Under the term the correspondent bank is required to release payment to the exporter only after 30 days or 60 days or 90 days from the date of receiving shipment documents. This L/C is also named as 30/60/90 days Sight L/C. 13. The customs entry point in Nepal has to be stated in the L/C. The bank can make necessary agreed amendments in L/C clauses except the customs entry point. In order to change the customs entry point in L/C, the importer has to apply substantiating reasons for the change to the Department of Commerce, which then issues a letter to the concerned bank with copies to the applicant and the concerned Customs. The process for changing the customs entry point costs NPR 5 as postage stamp and NPR 10 as application fee to apply to the Department. 14. After the overseas exporter sends documents through the correspondent bank on the completion of shipment of goods, the importer collects the documents from his bank and confirms that the documents are complete and free of any discrepancies. When the importer had not made full payment at the time of opening L/C, the bank instructs its correspondent bank through stipulation in the L/C a clause to consign shipment documents particularly the air waybill or bill of lading (B/L) in the bank's name or to show the bank as consignee in the documents. In such case the importer obtains the bank's endorsement on the documents or a delivery order to the concerned agencies at the time of releasing the documents from the bank. II. Import Licensing, Permits and Pre Shipment Inspection (PSI).

15. Except for prohibited and quantitatively restricted items, no licence is required for imports. 16. In order to maintain export quality of hand knotted woollen carpets Nepal government has specified that the imported wool is required to have a minimum length of 4" with a thickness of not more than 38 microns for which a test certificate from an authorized agency is to be produced at the time of customs clearance. Only suspicious cases as and when reported and observed by the concerned Customs become subject to detention, inspection and test by a team from the concerned agencies including the Department of Quality Standards and Measurement. Restrictions on old vehicles, including three wheelers and two stroke motorcycles, in terms of the permissible level of smoke emission are also in application. In most cases, a test certificate issued by the manufacturer/producer/certifying authority at the place of origin is required for customs clearance purposes. 17. Under the Plant Protection Act 1972 and the Plant Protection Rules 1975, an import permit is required for plant and plant products including fruits, leaves, and seeds. However, no permit is required for the import of processed food, packed and tinned food, dried fruits and vegetables, cocoa, tea and tobacco. 18. For importation of plant and plant products, an importer has to apply to the Plant Quarantine office for import permit. The application form (Annex 10) is to be filled in with details of the plant and purpose of importation. Documents like income tax registration and enterprise registration, and recommendation letter of a concerned institute, if imported for research purposes, are also submitted along with the application. After examining the application, an import permit (Annex II) is issued to the importer. A fee of NPR 10 per application is charged for issuing an import permit. If imported plant and plant products require treatment, the quarantine office levies a charge of NPR 2 per cubic feet fumigation chamber space and NPR I per kg for seed treatment. 19. The Department of Agriculture has a separate Plant Quarantine Section (PQS) at its Harihar Bhawan premises in Pulchowk in addition to seven quarantine checkpoints at the customs posts of Kakarvita, Biratnagar, Jaleshwar, Birgunj, Bhairahwa, Nepalgunj and Tribhuvan International Airport. All these eight offices conduct quarantine examination and issue import permits and phytosanitary certificates. Normally the phytosanitary certificate is issued. abroad at the place of origin and produced at the Customs for the clearance of imported plants. Only doubtful cases are examined at the quarantine customs checkpoints. 20. There is no generalized system of preshipment inspection (PSI). A few commodities like wool, pharmaceuticals and industrial chemicals may need pre-shipment quality inspection certificates to maintain certain standards in Nepal. III. Procedures at the seaport of entry. 21. Most imports by sea arrive at Calcutta Port or Haldia Port. Both the ports fall under the administrative control of the Calcutta Port Trust (CPT). The port of Haldia is about

120km southwest of Calcutta. For cargo clearance from Haldia port, the customs processing of documents is completed at the Customs House, Calcutta. The bilateral Treaty of Transit and its Protocol and Memorandum prescribe in detail the cargo clearance procedures, customs processing of documents, mode of transport, transit route, border entry points and duty insurance requirements. The Treaty of Transit as renewed on 5 January 1999 for a period of seven years has incorporated 'an important provision for its automatic renewal thereafter for periods of seven years. 22. The system of insuring import goods against the payment of import duty accruing from the loss and pilferage of transit cargo while in transit in India, is called duty insurance. Duty insurance 23. Under the Treaty of Transit, three types of duty insurance policy coverage depending on the means and ownership of transport are required as follows: Mode of Transport 1 Rail 2. Road-trucks belonging to NTWCL/NTC Insured Value Customs Duty. Customs duty plus an Undertaking by NTWCL to pay the difference of MV- (GIF + Customs Duty). 3. Goods moving by road other than 2) MV- CIF above 24. (NTWCL-Nepal Transit and Warehousing Company Limited, NTC-Nepal Transport Corporation, MV- Market value of goods in India, normally calculated as 250% of the CIF value, CIF- Cost, insurance and freight.) 25. The cost of duty insurance is 0.30 percent of insured value as premium plus 5 percent of the premium amount as service tax plus INR I as stamp duty. 26. The requirement of duty insurance is waived on goods imported by public sector agencies in Nepal provided an undertaking is given by NTWCL. NTWCL's charge for issuing the letter of undertaking to the Indian Customs is 0.07 "/o for cement and fertilizer, and 0.15 % for other products on GIF imports. There is also a provision for making Indian Railways, where liable as carriers under the Indian Railways Act, liable to pay the GIF price to the importer in the event of loss. 27. The duty insurance policy is assigned to the Commissioner of Customs, Calcutta and the insured amount becomes payable if the goods do not reach Nepal. 28. Under the 1999 Treaty of Transit duty insurance is required only on those goods which are specified as sensitive by the Government of India with prior intimation to Nepal government and that the importer will have the option of giving a bank guarantee in lieu of such insurance subject to the satisfaction of the Commissioner of Customs. For goods other than the specified sensitive ones, the importer is required to furnish, to the

Commissioner of Customs, Calcutta, a legally binding undertaking that the amount equal to the difference between the market value of the goods in India and their GIF value shall be paid, on demand, to the Commissioner in the event of the goods not reaching Nepal. 29. At present only the Calcutta office of the Indian National Insurance Company Ltd. (NICL) is issuing the duty insurance policy (Annex 12) to the satisfaction of the Commissioner of Customs, Calcutta. 30. Processing of documents at Calcutta Customs can proceed only after the filing of an import general manifest (IGM) by the shipping line or ship's agent because the ship's rotation no. and manifest line no. have to be shown on the customs transit declaration (CTD) (Annex 13). Normally the IGM is filed before the arrival of a vessel. 31. The importer has to send all original shipment documents with a letter of authority to a clearing agent (CA) who is licensed by the Indian Customs for cargo clearance in Calcutta. Calcutta Customs require that the signature on the letter of authority must be certified by the importer's bank that issued the L/C. The importer is required to endorse B/L in the name of the nominated CA. 32. After receiving documents from the importer, the CA obtains 'Delivery Order' (DO) against B/L from the concerned Shipping Line. If any payment is to be made to the Shipping Line, the CA pays the dues for obtaining the delivery order. CA also has to obtain a document of duty insurance policy from NICL for private sector imports or a letter of undertaking from the NTWCL for public sector imports. Then CA prepares six copies of CTD and files to the Nepal Section of the Customs House, Calcutta with the following documents: o CTD (Red colour for Private imports and Green colour for Government imports). o Duty insurance policy for specified sensitive goods or legally bindingundertaking for other imports, or letter of undertaking from NTWCL forGovernment imports. o Delivery order or B/L-original. o Letter of authority of CA-original. o Invoice-original. o Packing list-original. o Copy of L/C (certified by the L/C operating bank or by the Royal NepaleseConsulate in Calcutta). o Certificate of origin (COO). o Import licence, if required-original. o Duty insurance or NTWCL's undertaking letter for container. o Additional documents for specific cargo such as health certificate for rawwool (required by Calcutta Port Trust), phytosanitary certificate for plantsveterinary certificate for animals etc. 33. For moving containerized cargo some additional procedures need to be complied with. CA has to submit a cash deposit or bank guarantee or a bond equivalent to the value of the container (the container valuation differs also with Shipping Lines) to the Shipping Line to obtain permission to take container to Nepal and bring it back. Some of the Shipping Lines also ask for insurance of the container against any damage or loss. Permission of the Customs is also obtained by submitting the permission of the Shipping

Line and a duty insurance of an insured value of INR 100,000 for a TEU. For the Government cargo a letter of undertaking for the Value of only INR 30,000 per TEU and INR 60,000 per FEU from NTWCL in lieu of duty insurance is submitted to the Calcutta Customs 34. The 1999 Treaty of Transit has clearly specified that only four documents, namely B/L, invoice, packing list and a copy of the L/C authenticated by the Royal Nepalese Consulate in Calcutta or the issuing bank will be required for submission along with CTD to the Calcutta Customs and that no other additional document may be asked for, except where considered necessary for clearance of specific goods. 35. When documents are filed at Calcutta Customs, the CTD is stamped as a receipt of the document. An Assistant Commissioner of Customs (AC) heads the Nepal Section of Calcutta Customs, which also deals in the Bhutanese cargo. The customs clearance of documents normally takes two to four days. The appraiser and AC put their signatures on originals including the certificate of origin for recognition by the Port Customs before returning these to CA. The Calcutta Customs retains three copies of invoice, 5th and 6th copies of the CTD, and one copy each of other documents. 36. Depending upon the request made in CTD by CA, the CTD is stamped on its back with a rubber stamp instructions in the name of a Shed Appraiser/Preventive Officer (PO) to check one-time-lock (OTL) for taking containers to Nepal, or for allowing loading of the cargo into an open truck/container. AC and appraiser at the Calcutta Customs jointly sign the rubber stamp instruction on CTD. Then CA approaches the Customs shed appraiser and Examining Officer (EO) at the concerned shed with documents cleared by the Calcutta Customs. At the same time CA obtains a bill for port dues from the port shed, and makes payment at the Calcutta Port Trust (CPT) payment counter, which is also located close to the Calcutta Customs in the city area. CA again goes back with the payment receipts to the concerned shed and the staff/stevedore of the Shipping Line, and obtains their clearance. 37. At the dock shed both the appraiser and EO normally examine only the seal number and condition of OTLs of containers. If the goods are to be destuffed, about 5 % of the total packages are checked to ensure that the contents are in accordance with the declaration in CTD. The Treaty of Transit contains a specific provision to facilitate the movement of containerized cargo sealed with OTL whereby the Indian customs officer posted at the seaport will merely check OTL and if found intact, allow onward transportation of container without examination of the contents unless there are valid reasons to do otherwise. In case OTL is damaged or tampered with, the Customs will allow CA or Shipping Line to put a fresh OTL by endorsing OTL number in CTD. After checking, the appraiser and EO issue 'Pass Out' order on the back of CTD. Normally PO works during office hours, and EO works before and after office hours; both perform the same job. After booking of port workers and mobile crane of the private operator or Port, and lock & key from the Customs for non-containerized cargo, the container is allowed loading onto a flat truck or loading of break bulk from shed or containers to trucks, as the case may be, in the presence EO or PO. After the loading is completed, PO makes necessary endorsements on the back of CTD by mentioning the seal number of OTL and, incase of

the break bulk, the lock and key numbers. The Port Customs does not write anything on other documents except some markings, for instance, a circle on the OTL number in B/L or DO and on the invoice value. The fourth copy also called as queen copy of CTD and DO, and one photocopy each of invoice and packing list are retained by the port shed for record purposes. 38. After completion of the loading at the dock shed, PO issues a temporary permit called Transit Pass (TP) to CA or driver of the vehicle for allowing clearance at border pending the issuance of the sealed cover containing the second and third copies of CTD especially for those cases where full consignment could not be cleared in one day. Recently due to objections raised by the Raxaul Border Customs, TP is almost abandoned except for bulk cargo, which requires a number of days to clear from the port. Generally after the final endorsement on CTD by the Port Customs, a photocopy is made and signed by the Port Customs for carriage along with the cargo by the driver. This is used as a replacement of TP and accepted by the Border Customs for clearance. 39. When the Port is open but the Customs closed on some holidays, CA has to book the Customs to work overtime at port by paying a fee of INR 600 per 8 hours-shift. No other Indian customs fees are payable in respect of transit goods. As the cargo is subject to heavy port demurrage charge after a lapse of 7 days free time, which is allowed only to Nepal and Bhutan transit cargo in comparison to 3 days to local cargo, cargo clearance at holidays is not an uncommon practice. 40. After the delivery of cargo and endorsements on documents by the Port Customs, which normally takes one full working day, CA goes to the Calcutta Customs in the following working day for obtaining a sealed cover (an envelope closed with customs seal). Another section of the Calcutta Customs, after recording details of cargo delivery and CTD number, hands over the original CTD to CA and makes' a sealed cover containing a key of customs lock put on the transport, the duplicate and triplicate copies of CTD, and the Railway Receipt for cargo dispatched by rail. In most cases, CA supplies locks used as a customs seal for conventional transportation of cargo. The sealed cover is sent to the concerned Border Customs by post. But as an option to avoid delay in postal transmission, the sealed cover is handed over to CA. This facility is not allowed to the importer or the authorized representative who defaults in the production of these documents within a reasonable period to the Indian Border Customs Office. 41. CA dispatches the sealed cover with other documents by courier to his authorized agent or to the importer's nominated agent stationed at the Indian border customs post or sometimes to the importer in Nepal. IV. Procedures at the Indian border. 41. When the goods arrive at the Indian Border Customs, the importer or his authorized CA presents the original CTD and the sealed cover to the Customs at the Indian border. In case the original CTD or the sealed cover is not available or where part shipments done by breaking CTD in different lots, TP or the photocopy of CTD endorsed by the dock customs is produced to the Customs. The Indian customs officer compares the original

CTD with the duplicate and triplicate copies received in the sealed cover. The officer examines OTL of containerized cargo, and the lock and seal of other conventional transport. In cases where seals and/or locks on the wagons or containers and on packages are intact, the customs officer identifies the consignment against CTD, and if satisfied, endorses all copies of CTD without examining the goods. The officer permits onward transportation or unloading or breaking bulk as the case may be under the customs supervision. If the seals and locks on wagons or on containers or on the packages are not intact, or there is otherwise suspicion, the officer examines the goods to ensure that they correspond with the information contained on CTD before endorsing it. 42. After checking at the border, the goods are allowed to move onward by road. As per the provisions of the Transit Treaty, the Indian customs officer will provide necessary escorts or supervision to ensure that the goods cross the border and reach Nepal, and certify on the copies of CTD that the goods have crossed into Nepal. Then the original CTD is given to the importer, the duplicate CTD is sent to the Indian customs house of entryCalcutta Customs and the triplicate CTD to the corresponding Nepalese Border Customs, which is then retained at the Indian Border Customs after it is received back duly endorsed by the corresponding Nepalese customs officer. 43. If a consignment in transit particularly bulk cargo is received at the border in more than one lot, the Indian border customs officer releases the goods in lots after necessary examination, and makes endorsement on the relevant documents only after release of the entire consignment as covered by CTD and sends the triplicate copy of CTD to the Nepalese Border Customs. 44. If duplicate and triplicate copies of CTD are not received at the time of arrival of the goods at the Indian border, the Border Customs will contact, by telephonic or other quick means of communication with the Calcutta Customs to seek confirmation to prevent delay, and on the basis of confirmation so received allow dispatch of goods. V. Entry into Nepal. 45. The Customs valuation provides a basis for declaration of value by an importer in the Nepalese Customs Declaration Form (Annex 14) for the calculation of applicable duty and tax. After following the set customs valuation system for a long period in the past, the Customs has been assessing customs duty on the basis of the transaction price declared by the owner of the goods for the last two years as per the amendments to the Customs Act of 1962 in July 1997. 46. The customs duty on imported goods is assessed on the basis of their transaction price. The owner of the goods is required to submit to the Customs bills and invoices showing their price, as well as such other necessary documents relating to imports as demanded by the Customs for the purpose of verifying their transaction price. If such quoted price does not conform to the procedure of fixing the actual transaction price, the Chief Customs Authority, or a Customs Officer designated by him, shall fix the price of the goods on the basis of the recorded price, price-list or the prices of the goods of the same nature, and assess customs duty accordingly. While fixing the price of goods for the purpose of

assessing customs duty, the Chief Customs Authority, or a Customs Officer designated by him, may do so on the basis of the recorded price or the price-list submitted by the manufacturer of distributor, or the available data or information, or the suggestions of an expert or the concerned agency or institution. No demurrage is charged on the imported goods until they are valued for the purpose of assessing customs duty. In case the price declared by the owner is found under- invoiced up to 20% of the actual value, the customs duty will be assessed on the full value by adding the differential value to the price of the goods. Similarly, if the under-invoice is in the scale of between 20% and 50% of the actual value, it will be subject to full customs valuation by adjusting the differences and also an additional payment of 50% duty as penalty. If the declared value is found under-invoiced by more than 50%, the Chief Customs Authority may decide to purchase, by the Customs itself or others, the imported goods at the price declared by the owner. o Industrial machinery and parts, o Imports by hotel industries under duty preference as allowed by the Act, o Surgical and medical equipment, o Readymade life saving drugs, and o Heavy equipment and parts imported by construction companies. 47. After the cargo reaches Nepal border, the importer or CA goes to the Nepalese Customs with the following documents: o Nepal Customs import declaration (white colour), o Letter of authority of the clearing agent to act on behalf of the importer, o Bill of lading, o Invoice, o Packing list, o Certificate of origin (this is not strictly required except where imported goods are subject to a special tariff concession on account of their place of origin such as Tibet Autonomous Region of People's Republic of China, SAPTA- member countries and MFN rates for countries having bilateral agreements with Nepal), o Certificate of insurance, o Original CTD, o BBN 4 form issued by bank, o Certified copy of L/C, o Enterprise registration certificate, o VAT registration certificate/PAN, o Income tax registration certificate/PAN.

Note: xiv. The documents numbered 11,12 and 13 bear the renewal date for every fiscal year as certified by the concerned Departments. Therefore, the production of these documents to the Customs for cargo clearance implies that they have been renewed to date with payment of all the dues to the concerned authority. The documents numbered 10 to 13 are not normally required for clearance of duty free goods or imports by the Government. For duty free project/aided goods only

xv.

main documents including duty free certificate and related project documents are required by the Customs. xvi. The above documents do not include the copy of BBN 3 received earlier by the Customs from a L/C opening bank.

The requirement of certificate of insurance by the Customs is only for customs valuation, which is calculated on GIF Nepal/border basis. In the absence of such insurance document the cargo clearance is not stopped but the Customs adds 2 % of C&F invoice value as insurance cost for customs valuation. But if a document showing insurance only up to Calcutta is produced, no extra valuation is added to the invoice value in order to cover insurance from Calcutta to border for the purpose of customs valuation. Therefore, any insurance document submitted by the importer is acceptable to the Customs for valuation purposes. Regarding the transportation charge from Calcutta to Nepal border to convert the GIF Calcutta value to GIF border value, the Customs adds NPR 1.03 per kg on the basis of weight of the cargo. The Customs verifies BBN 4 document issued by a commercial bank with BBN 3 received previously from the same bank at the time of opening L/C. After the goods are cleared, the Customs certifies BBN 4 and hands over to the importer for delivering to the issuing bank. If the commercial bank is not located in the same place or city area. the certified copy of BBN 4 is send by post to the bank. After the documents have been checked. Customs assess the applicable duty and VAT for payment by the importer before releasing the cargo. When the goods are cleared after the payment of customs dues, the Nepalese customs officer endorses the original and triplicate copy of CTD, and the original is returned to the importer and sends back the triplicate copy in lots of about 7 days with a covering letter for delivery to the corresponding Indian Border Customs. The importer is required to submit the original CTD to the corresponding Indian Border Customs within 15 days of the date on which the goods were released at the Indian port of entry or such extended time as the concerned Assistant Commissioner of Customs House may allow. A penalty of INR 1.00 for every INR 1,000 of the Indian market price of the goods per week is payable by the importer for delay in presenting the original CTD. Transit Procedure

Import and Export by Air

1. Tribhuvan International Airport (TIA), Kathmandu, is the only international gateway for passenger and goods traffic by air in Nepal. 2. TIA Customs has three godowns of which No. I is used for the storage of uncleared and seized cargo and for the clearance of personal effects. Godown No. 2 is used for the storage of import cargo, and godown No. 3 for export cargo.

3. A new air cargo complex with an area of about 7,700 m^ on ground level and a two storey office of 2,500 m is planned for completion by April 2001 under the Tribhuvan International Airport Improvement Project. The new cargo complex has a cargo area of 3,500 to 4,000 m2 each for export and import. Import procedures 4. NTWCL receives import cargo from the airline in accordance with the cargo manifest and air waybill copies. For release of cargo, an importer or CA has to submit an application in the prescribed form to NTWCL with a delivery order issued by the airline. NTWCL makes the following storage charges: o Paisa per kg/day for the first 7 days, o Paisa per kg/day for 8 to 30 days, o Paisa per kg/day for 31 to 60 days, and o Paisa per kg/day for above 60 days. In addition to the storage charge, NTWCL also levies handling charges as follows: NPR 30 per package on Government cargo, NPR 31 per package on personal effects, and NPR 50 per package or 55 paisa per kg, whichever higher, on commercial cargo. 5. After receiving information from the exporter or airline about the arrival of the cargo, the importer or CA approaches the TIA Customs with the following documents: o Nepal customs import declaration, o Letter of authority for CA to act on behalf of the importer, o Air waybill, o Invoice, o Packing list, o Certificate of origin (this is required only for tariff concession for goods originating in Tibet Autonomous Region of People's Republic of China, SAPTAmember countries and MFN rates for countries having bilateral agreements with Nepal), o Certificate of insurance, o BBN 4 form issued by the bank, o Certified copy of L/C, Enterprise registration certificate, o VAT registration certificate, o Income tax registration certificate. Note: xii. xiii. The documents numbered 10,11 and 12 bear the renewal date for every fiscal year as certified by the concerned Departments The documents numbered 9 to 12 are not normally required for clearance of duty free goods or other imports by the Government provided the main documents including duty free certificate and related project documents are produced to Customs.
o o o

Customs use the transaction value as the basis for customs valuation. The chief customs officer is authorized to approve variation from reference values up to 10%. In addition the chief customs officer is fully authorized to approve valuation of the following five products: o Industrial machinery and parts, o Imports by hotel industries under duty preference as allowed by the Act, o Surgical and medical equipment, o Readymade life saving drugs, and o Heavy equipment and parts imported by construction companies. The requirement by Customs for a certificate of insurance is for customs valuation purposes. In the absence of an insurance certificate, Customs add 2% of the C&F (CFR) invoice value to obtain the CIF Kathmandu value on which duty is assessed. After the documents have been checked. Customs assess their charges for payment by the importer before releasing the cargo. Customs certify form BBN4 and hand it to the importer for delivery to the issuing bank. The importer or CA pays the customs dues and approaches NTWCL with the customs declaration and payment receipt to obtain release of the cargo. The importer arranges loading and transportation of cargo from airport godown to his warehouse. Top Export Procedures: An exporter or CA has to bring cargo with complete documents for customs examination and clearance. The following documents are required for submission to TIA Customs:
o o o o o o o o o o o o o o o o o o

Nepalese customs export declaration, Authority letter of CA, Invoice, Packing list, Certified copy of L/C or certificate of advance payment, Certificate of origin, BBN 1 of NRB, Enterprise registration certificate, Income tax registration certificate/PAN, VAT certificate for beer, spirits and cigarettes/PAN, Visa certificate for readymade garments, if applicable, Valuation certificate for handicrafts, Value addition certificate for silver handicrafts, Passbook for gold handicrafts, No objection letter for domestic animal bone, leather and horn based handicrafts, GSP form A, if applicable, Clearance certificate of Department of Archeology for certain handicrafts, Clearance certificate of Department of Plant Resources for forest and plant based products,

o o o

Phytosanitary certificate of PQS, Department of Agriculture for plants, Clearance certificate of Department of Drug Management for medicines, Clearance certificate of Department of Mines and Geology for mineral products.

After the export cargo has been examined against documents, the checked packages are sealed and cleared for storage by Customs. NTWCL accepts cargo for storage only after customs clearance. The godown run by NTWCL has a separate cabin that can be locked and an iron safe for the storage of valuable exports like gold and silver handicrafts. There are private loaders at the godown to load and unload cargo at the expense of the exporter, but only airline workers load and unload at the apron area. After the exporter produces the air waybill for the cargo confirming space booking with the concerned airline, NTWCL allows loading of the cargo into a container truck, which is jointly managed by NTWCL and TIA Customs. After checking and sealing of the container truck by the Customs, the cargo is transported to the apron area. After the seals of the container truck have been opened by the Customs, the cargo is unloaded at the apron area. NTWCL allows 7 days free time on rental charges but goods are still liable to the handling fee. The handling fee is based on weight of the cargo as follows: o NPR 050 upto 50 kg on general cargo, o NPR 100 51 to 500 kg o NPR 150 501 to 1000 kg, and o NPR 200 1001 kg and above. For gold and silver handicrafts, a different rate has been fixed as NPR 100 up to 5 kg, NPR 150 for 5-1000 kg and NPR 200 for above 1000 kg. Similarly NTWCL levies cargo rent charges after 7 days free time as per the following tariffs:
o o o

18 Paisa per kg/day 30 Paisa per kg/day 54 Paisa per kg/day

8-30 days, 31-60 days, and 61 days and above.

A separate form as prescribed by NTWCL is to be submitted by an exporter or CA. to obtain permission for the storage of cargo.

List of Annexures No. 1. 2. Heading Products permitted for imports with payment in convertible foreign exchange from India. List of banned, restricted and freely tradable exports and import Products. IMPORT DOCUMENTS

3. 4. 5. 5a. 5b. 6. 6a. 7. 7a. 8. 9. 9a,b,c 10. 11. 12. 13. 14. 15.

Application Form to the bank to open a letter of credit (BBN 3). Firm registration certificate of Department of Commerce. Registration certificate of Department of Industry (Pvt. Firm). Registration certificate of Department of Industry (Partnership). Registration certificate of Department of Industry (Company). Registration certificate of Department of Cottage and Small Industry(Firm). Registration certificate of Department of Cottage and Small Industry (Company). Registration certificate of Company Registrar Office (Public Ltd.). Registration certificate of Company Registrar Office (Private Ltd.) Registration certificate of Department of Department of Income Tax. Registration certificate of Department of Value Added Tax. Registration certificate of Permanent Account Number. Application form of Plant Quarantine Section of Department of Agriculture to obtain permit to import plants and plants products. Import permit of Plant Quarantine Section of Department of Agriculture. Duty insurance policy of National Insurance Company Limited. Customs transit declaration form. Nepalese customs declaration form. Foreign exchange control form (BBN 4). EXPORT DOCUMENTS

16. 17. 18. 18a 19. 20. 21. 22. 23. 24. 25. 26. 27.

Bank's certificate for receipt of advance payment. Certificate of origin of Federation of Nepalese Chambers of Commerce & Industry. Certificate of origin of Nepal Chamber of Commerce. Certificate of origin for Textile Products Generalized system of preference (GSP) form A. Letter of recommendation issued by Garment Association-Nepal for visa for export of readymade garments. Recommendation letter of Nepal Cotton Towel Exporter Association for visa for export of cotton towel. VISA form of Readymade Garments Visa Cell. Multiple Country Declaration, for garments export to the USA. Valuation certificate of Handicraft Association of Nepal for handicraft exports. Letter of no objection of Handicraft Association of Nepal for exports of handicraft products made of domestic animal. Certificate of Department of Archeology for handicraft exports. Permission letter of District Forest Office for the collection of herbs.

28. 29. 30. 31. 32. 33. 34. 34a. 35. 35a.

Release letter of District Forest Office for the transportation of herbs. Application form of Department of Plant Resources for permission to export extracts and by-products of plants and herbs. Export permission letter of Department of Plant Resources to Customs. Application form of Plant Quarantine Section of Department of Agriculture. Phytosanitary certificate of Plant Quarantine Section for the export of plant and plant products. Customs Transit Declaration Form (CTD). Foreign exchange control form No.I of Nepal Rastra Bank (BBN 1)-first copy. Foreign exchange control form No.I of Nepal Rastra Bank (BBN l)-second copy. Foreign exchange control form No.I of Nepal Rastra Bank (BBN l)-third copy. Foreign exchange control form No.I of Nepal Rastra Bank (BBN l)-fourth copy

Note: Documents listed as Annex numbers 4 to 9 are the same for both imports and exports. Transit Procedure

Annex-1 & Annex-2

Annex-1 Imports from India which may be paid for in convertible foreign currency 1. All industrial chemicals (except chemical used for making medicine for mankind) HS 28. 2. Carbon black HS 28.03. 3. Palm stearin DFA and palm kernel DFA HS 3823.19. 4. Natural rubber HS 40.01. 5. Synthetic rubber HS 40.02. 6. Silk yarn HS 50.04 and 50.05. 7. Woollen yam (except hosiery yarn) HS 51.06, 51.07 and 51.08 8. Cotton HS 52.01. 9. Polyester partially oriented yarn (POY) HS 5402.42. 10. Manmade artificial fibre HS Chapter 55, 55.01 to 55.07(excluding 55.05). 11. Polyester fibre HS 5503.20. 12. Viscose rayon (fibre) HS 5504.10.00. 13. Tyre cord fabric HS 59.02. 14. Sponge iron HS 7203.90. 15. Mild steel scrap HS 7204.49. 16. Iron (ingot) HS 72.06. 17. Mild steel billets HS 72.07. 18. Hot rolled sheet in coil HS 7208.27, 7208.36, 7208.37, 7208.38, 7208.39,7208.51 & 7208.52.

19. Cold rolled sheet in Coil HS 7209.15, 7209.16, 7209.17 & 7209.18. 20. Tin plate HS 7210.12. 21. Mild steel wire rod in coil HS 7213.91.10. 22. Bead wire (copper coated) HS 7217.20, HS 7217.30 and 7217.90. 23. Steel bloom HS 7218.99. 24. Steel plate HS 72.19. 25. Aluminum ingot billet HS 76.01. 26. Aluminum rod in coil HS 76.04 and 76.05 27. All machinery, equipment (except spare parts) HS Chapter 84. 28. Electric motor, generating set HS 85.01 and 85.02. 29. Fabrics for use as raw materials by the readymade garments industries up to 50 percent of their export earnings.* Note: * The import of fabrics from India under hard currency payment system was allowed only from 2051.1.1 (Mid-April 1994). Then, such imports were permitted up to 30% of export earnings. Annex-2 List of prohibited, restricted and freely tradable exports and imports I. I. EXPORTS.

A. Products prohibited for export: A.1 Articles of Archeological and Religious Importance; A.1.1 National and Foreign coins Of Archeological value, A.1.2 Idols of god and goddesses, palm leave inscription (Tad Patra), plant leave inscription (Bhoj Patra), A.1.3 Scroll (Thanka Paintings) of historical importance. A.2 Conserve Wildlife and Related Articles; A.2.1 Wild animals, A.2.2 Bile and any part of wild animals, A.2.3 Musk, A.2,4 Snake skin, lizard skin, A.2.5 Cow and ox. A.3 Drugs: Marijuana, opium, hashish (as defined in the Single Convention on Narcotics 1961). A.4 Valuable Metals;

Valuable metals including Gold, Silver (except ornaments) and Jewelleries (except those allowed under Bag and Baggage Rules). A.5 Articles of Industrial Importance; A.5.1 Explosive materials and related fuse or materials needed for fuse, A.5.2 Materials used in the production of arms and ammunition. A.6 Industrial Raw Materials; A.6.1 Raw hides and skin (including dry salted), A.6.2 Raw wool, A.6.3 All imported raw materials, parts and capital goods, A.6.4 Raw Silk (export import permitted only up to 100 kg without L/C). However, import of similar materials is permitted as replacement if the purpose of the import is not met. And, if the materials are not consumed in Nepal and are required to be send back, against repatriation of foreign exchange paid for imports, customs duties and other taxes incurred for import and export may be refunded. A.7 Other Products; A.7.1 Mamira, A.7.2 Log and timber. A.8 Exports to India; All goods imported from countries other than India ((except those allowed under Bag and Baggage Rules) B. Products under Quantitative Restrictions: Products as notified by His Majesty's Government in the Nepal Gazette from time to time; 1. Rice. C. Products allowed for Free Exports: All products other than banned ones and which are under quantitative restrictions. Notes: 1. The Ministry of Commerce will decide from time to time the goods to be included under the category of quantitative restrictions and volume of their exports. Notes: 2. The Ministry of Commerce will interpret as to which of the products listed above will be permitted to export.

II.

II IMPORTS. A. Products prohibited for Import: A.1 Products injurious to health; A.1.1 Narcotic drugs like opium and morphine, A.1.2 Liquor containing more than 60 percent alcohol (except for use as industrial raw materials). A.2 Arms and ammunition, and explosives (except under import licence of His Majesty's Government; A.2.1 Materials used in the production of arms and ammunition, A.2.2 Gun and cartridges, A.2.3 Capes without paper, A.2.4 Arms and ammunition, other explosives. A.3 Communication equipment; Wireless, walkie-talkie and similar other audio communication equipment (except under import licence of His Majesty's Government). A.4 Valuable Metals; Valuable metals (including Gold, Silver) and Jewelleries (except those allowed under Bag and Baggage Rules). B. Licence required for imports from overseas: B.1 Products under quantitative restriction by His Majesty's Government for imports; B.1.1 Products included under the Bidding from time to time (except one item each of goods allowed for individual purpose without licence), B.1.2 Products to be imported in excess of the fixed quantity notified as allowable imports for individual purpose; B.1.2.1 Poppy seeds. C. Products allowed for importation from overseas without import licence and L/C (except those products, which are listed under Bidding and Prohibition): C.1 Products imported under agreement by the Office Corporation of His Majesty's Government, Social Institution or Authority or Project on the recommendation of the concerned Ministry,

C.2 Necessary emergency medicine send as gift by an individual or Institution to a seriously ill patient residing in Nepal, C.3 Printed materials such as poster, calendar etc. brought for publicity, C.4 Products notified as free from customs duty and sales tax -by His Majesty's Government, Ministry of Finance, C.5 Products of a value up to US $ 100 received as gift or prize while participating in a meeting, conference in an invitation of the foreign Government or International Institution, C.6 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, C.7 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, C.8 Advertisement, label, sticker and sample materials bearing the logo of a Company or Firm up to a value of US $ 100, C.9 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. S. A.), C.10 Goods notified under Bag and Baggage Rules, and gold, silver upto the fixed quantity. D.With the exception of the cases as explained above, the Ministry of Commerce will, on the recommendation of the concerned Ministry, decide on merit basis, for products donated to any institution not for business purpose but as gifts. E. Unless otherwise mentioned in this Notification, import is not allowed without approval of His Majesty's Government without opening a letter of credit or an import licence. Note: This is an unofficial translation of the Nepal Gazette Part 3, Section 42 and Number 33 dated 2049.8.15 (Nov/Dec 1992) and incorporates changes to date.

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