To enhance the contributions of trade sector to national economy by
promoting internal and international trade with the increased
participation of private sector through the creation of an open and
liberal atmosphere.
To diversify trade by identifying, developing and producing new
exportable products through the promotion of backward linkages for
making export trade competitive and sustainable.
To expand trade on a sustained basis through gradual reduction in
trade imbalances.
To co-ordinate trade with other sectors by expanding
employment-oriented trade.
Export
Strategy
Licenses will not be required for the export of products other than
banned or quantitatively restricted items. In the case of
quantitatively restricted products, arrangement for issuance of
export license will be made in consultations with the private
sector. Quantitative restrictions in the export of such products
will gradually be removed through appropriate taxation measures.
For export promotion, improvements will be made in the existing
transit transport network and its infrastructure. Administrative
procedures will also be made transparent, smooth and efficient.
For the promotion of exports, container service will be introduced
and the existing bonded warehousing system will further expanded and
improved.
The duty drawback scheme for the refund of import duty paid on the
importation of raw materials and intermediate goods required for the
production of exportable products will effectively implemented. In
this context, duty on import of raw materials will be fully exempted
taking into consideration the needs, or the bonded warehousing
system will be introduced for the storage of such materials.
Exports will be free from all charges except the service charge.
However, the provisions of para 4.1 above will be applicable in
respect of the export of essential products.
For the promotion of exports, Export Promotion Zone (EPZ) will be
established. No duty will be levied on the raw materials and
auxiliary imports used by industries established in such EPZ.
Industries exporting more than 90 percent of their production will
be granted similar facilities as given to the industries established
in EPZ.
As
a preparatory step towards full convertibility of the Nepalese
currency in trade and services, exporters will have to sell in the
stipulated percentage the amount of foreign exchange earned through
exports of goods and services to commercial banks at a rate fixed by
the market mechanism and the remaining balance to Nepal Rastra Bank at
an exchange rate fixed by the Government. No license will be required
and no quantitative restriction will be imposed on the imports of the
raw materials (except stipulated) required for the export-oriented and
import-substituting industries. But for the import of such materials,
foreign exchange will be made available by the commercial banks at the
rate fixed by market mechanism. Exporters will be allowed to open a
foreign exchange account in the banks for the purpose of spending
certain percentage of one's foreign exchange earnings in trade
promotion activities.
Export
Valuation System will gradually be abolished after the full
convertibility of the Nepalese currency.
Quality
will be tested from time to time in order to improve the standard of
exportable products and necessary information will be made available
for this purpose.
Simple
and convenient procedures relating to pre-and post-shipment credits
will be adopted on a priority basis.
Income
tax on income from exports will be fully exempted, and income earned
from exports to India on the basis of letter of credit or agreed
banking document will also be free from income tax.
Emphasis
will be given on the development of packaging technology to maintain
the quality standard of export products.
Nepalese
missions abroad will be geared up towards export promotion activities,
and trade missions will be opened and institutionalized on the basis
of feasibility.
No
quantitative restrictions will be imposed on the exportable products
carried by tourists while returning from Nepal.
Export
procedures and documentation, thus be formulated, will be short and
simple.
An
annual indicative export plan and programme on the basis of
feasibility will be formulated with the co-operation of private sector
to promote exports.
Necessary
information and training relating to technology, marketing and export
procedures required for export promotion will be provided on an
institutionalized basis and arrangements will also be made for the
participation in national and international trade fairs for market
promotion.
Regular
monitoring will be made to avoid distortion in exports and imports.
Strong actions will be taken in case of misuse of facilities.
Export
promotion, research and development, and training schemes will be
developed on institutional basis, for developing new exportable
products, and for raising the quality and production of the
traditional exportable products.
Deemed
Export
If
any producer earns foreign exchange by selling one's own products to
projects run under bilateral or multi-lateral aid or if such finished
or semi-finished products are sold to EPZ, such sale will be granted
facilities at par with exports. Custom duty, sales tax and excise duty
levied on such sales will be refunded and the income generated from
such sales will be exempted from income tax. In addition, foreign
exchange earned from such sales can be sold at the rate fixed by the
market mechanism after submitting the stipulated percentage amount to
Nepal Rastra Bank at the rate fixed by the Government.
List
of quantitatively restricted & banned items for exports
-
Products
Banned for Exports
-
Articles
of Archaeological and Religious Importance\
National
and foreign coins of archaeological value
Idols
of gods and goddesses, palm leaf inscription (Tad Patra), plant leaf
inscription (Bhojpatra)
Scroll
(Thanka paintings) of historical importance
-
Conserved
Wildlife and Related articles
Wild
animals
Bile
and any part of wild animals
Musk
Snake
skin, lizard skin
Drugs
Marijuana,
opium, hashish (as defined in the Single Convention on Narcotics,
1961)
-
Explosive
materials and the related fuse or materials needed for fuse
Materials
used in the production of arms and ammunition
Industrial
Raw Materials
Raw
hides and skin (including dry salted)
Raw
wool
All
imported raw materials, parts and capital goods
6.
Other Products
Mamira
Log
and timber
-
Products
under Quantitative Restrictions
Products
as notified by His Majesty's Government in the Nepal Gazette from
time to time
-
Products
Allowed for Free Exports
All
products other than banned ones and which are under quantitative
restrictions.
Notes:
-
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.
-
The
Ministry of Commerce will interprets as to which of the products
listed above will be permitted to export.