Nepal’s foreign trade sector operates under a structured legal framework that requires businesses to obtain an Export-Import License in Nepal before engaging in international trade activities. Whether you are importing goods from India, China, or other countries, or exporting Nepali products to global markets, you must register with the concerned government authority and hold a valid trade license.
This article covers the complete process, required documents, applicable fees, legal provisions, and all relevant details for obtaining an export-import license in Nepal.
What Is an Export-Import License in Nepal?
An Export-Import License in Nepal is an official authorization issued by the Department of Commerce, Supplies and Consumer Protection (DoCSCP) under the Ministry of Industry, Commerce and Supplies that permits a registered business entity to legally import or export goods across Nepal’s international borders.
Without this license, no individual or business entity can commercially import or export goods. It is a legal requirement under Nepal’s trade law and customs regulations.
The license formally records your business as a recognized importer or exporter in Nepal and is a prerequisite for customs clearance at all entry and exit points including Birgunj, Biratnagar, Bhairahawa, Nepalgunj, Tatopani, Rasuwagadhi, and Tribhuvan International Airport (TIA).
Legal Framework Governing Export-Import in Nepal
Nepal’s export-import activities are governed by several laws, policies, and regulations. The key legal instruments are:
| Legal Instrument | Year | Purpose |
|---|---|---|
| Export Import (Control) Act | 2013 B.S. (1957 A.D.) | Primary law controlling export-import activities |
| Export Import (Control) Regulation | 2034 B.S. (1977 A.D.) | Procedural rules for license issuance |
| Nepal Trade Policy | 2015 A.D. | Strategic framework for Nepal’s foreign trade |
| Customs Act | 2064 B.S. (2007 A.D.) | Governs customs duties and border procedures |
| Foreign Exchange (Regulation) Act | 2019 B.S. (1962 A.D.) | Controls foreign currency transactions in trade |
| Industrial Enterprises Act | 2076 B.S. (2020 A.D.) | Governs manufacturing and industrial exports |
The Export Import (Control) Act, 2013 B.S. remains the foundational legislation. Under Section 3 of this Act, the Government of Nepal has the authority to control, restrict, or prohibit the import or export of specific goods. Section 4 makes it mandatory to obtain a license before engaging in any import-export activity.
The Department of Commerce, Supplies and Consumer Protection (DoCSCP) is the primary government body responsible for issuing export-import licenses in Nepal.
Who Needs an Export-Import License in Nepal?
Any individual or entity intending to commercially trade goods across Nepal’s borders must obtain this license. The following categories of entities require an export-import license:
- Sole proprietorship firms registered for trading business
- Partnership firms engaged in import-export activities
- Private limited companies (Pvt. Ltd.) conducting foreign trade
- Public limited companies involved in international commerce
- Cooperatives that import or export agricultural or other products
- Manufacturing industries that export their finished products
However, personal-use imports below a specific threshold value as defined under customs regulations may be exempt from this requirement. Individuals importing personal items for non-commercial use generally do not need an export-import license.
Types of Goods and Licensing Categories
Nepal categorizes tradable goods under different licensing requirements:
1. Freely Tradeable Goods
Most goods fall under this category. Businesses can import or export these items after obtaining a standard export-import license. No separate commodity-specific permit is required.
2. Restricted Goods (Controlled Goods)
Certain goods require additional permissions or permits from specific government ministries or departments beyond the standard trade license. Examples include:
- Pharmaceuticals (requires approval from Department of Drug Administration)
- Arms and ammunition (requires Ministry of Home Affairs approval)
- Wildlife products (regulated under CITES and Department of National Parks)
- Agricultural seeds and plants (requires Department of Agriculture approval)
- Gold and precious metals (governed by Nepal Rastra Bank guidelines)
3. Prohibited Goods
Nepal prohibits the import or export of certain items entirely under Schedule 1 and Schedule 2 of the Export Import (Control) Regulation. Narcotics, certain toxic chemicals, and counterfeit currency are examples of prohibited goods.
Documents Required for Export-Import License in Nepal
The following documents are required to apply for an export-import license in Nepal. The applicant must submit these to the District Administration Office or the Department of Commerce, Supplies and Consumer Protection:
Company/Business Registration Documents:
- Copy of company registration certificate (from Office of the Company Registrar or Department of Industry)
- Copy of firm registration certificate (for sole proprietorship or partnership)
- Renewed firm/company registration certificate (current fiscal year)
Tax-Related Documents:
- Permanent Account Number (PAN) certificate
- Value Added Tax (VAT) registration certificate (mandatory for businesses above the VAT threshold)
- Tax clearance certificate from the Inland Revenue Department (IRD)
Identity and Authorization Documents:
- Citizenship certificate of the proprietor, partners, or directors
- Memorandum of Association (MoA) and Articles of Association (AoA) for companies
- Board resolution (for companies) authorizing the signatory to apply
Office and Business Address Documents:
- Rental agreement or ownership deed of business premises
- Ward office recommendation letter
Additional Requirements:
- Passport-size photographs of proprietor or authorized representative
- Application form (available at DoCSCP or District Administration Office)
- Bank account details of the business
Step-by-Step Process to Obtain Export-Import License in Nepal
The process for obtaining an export-import license in Nepal involves the following sequential steps:
Step 1: Business Registration
Register your business with the relevant authority the Office of Company Registrar (OCR) for companies, or the Department of Industry or local District Administration Office for sole proprietorships and partnerships.
Step 2: Obtain PAN and VAT Registration
Apply for a PAN certificate from the Inland Revenue Department. If your turnover exceeds NPR 50 lakhs per year (for goods), register for VAT as well.
Step 3: Renew Business Registration
Ensure the business registration is renewed for the current fiscal year. An expired registration will not be accepted.
Step 4: Prepare and Compile All Required Documents
Gather all documents listed above. All documents should be self-attested or notarized as required.
Step 5: Submit Application to DoCSCP or District Administration Office
Submit the completed application form along with all required documents to the Department of Commerce, Supplies and Consumer Protection or the designated District Administration Office.
Step 6: Pay the License Fee
Pay the applicable fee at the designated counter. A receipt will be issued as proof of payment.
Step 7: Verification and Inspection
The concerned authority will verify the submitted documents. Physical inspection of the business premises may be conducted.
Step 8: Issuance of Export-Import License
Upon successful verification, the export-import license is issued to the applicant. The license specifies the nature of goods, validity period, and the type of trade (import, export, or both).
Export-Import License Fees in Nepal
The fee structure for export-import licenses in Nepal varies based on the type of business, nature of goods, and annual turnover. The following table provides a general overview:
| License Type | Annual Fee (Approximate) |
|---|---|
| Export License (Small Business) | NPR 500 – NPR 2,000 |
| Import License (Small Business) | NPR 500 – NPR 2,000 |
| Combined Export-Import License | NPR 1,000 – NPR 5,000 |
| Large-scale Trading Company | NPR 5,000 – NPR 25,000 |
| Renewal Fee | Same as initial issuance fee |
Fees are revised periodically by the Ministry of Industry, Commerce and Supplies. Always confirm the current fee schedule at the DoCSCP official website or directly at the office before making payments.
Validity and Renewal of Export-Import License
An export-import license in Nepal is typically valid for one fiscal year (from Shrawan to Ashadh, i.e., mid-July to mid-July). The license must be renewed before the end of each fiscal year to remain valid.
Renewal Process:
- Submit a renewal application before the license expiry date
- Attach updated tax clearance, renewed business registration, and proof of fee payment
- Submit to the issuing authority (DoCSCP or District Administration Office)
- The renewed license is issued upon successful document verification
Failure to renew the license within the stipulated period may result in penalties, suspension of trading activities, or cancellation of the license under Section 7 of the Export Import (Control) Act.
Online System and Nepal Trade Information Portal
Nepal has progressively digitized its trade facilitation infrastructure. The Nepal Trade Information Portal (NTIP) at https://www.nepaltradeportal.gov.np/ provides comprehensive information on:
- Import and export procedures
- Required licenses and permits by commodity
- Applicable tariff rates and customs duties
- List of prohibited and restricted goods
- Contact details of all relevant government agencies
The ASYCUDA World System managed by the Department of Customs (www.customs.gov.np) is used for electronic customs declarations and trade data management.
Penalties for Operating Without an Export-Import License
Operating without a valid export-import license in Nepal is a punishable offense. Under Section 8 of the Export Import (Control) Act, 2013 B.S., the following penalties may apply:
- Seizure and confiscation of goods being illegally imported or exported
- Monetary fines as determined by the court or customs authority
- Imprisonment in serious cases of trade law violation
- Cancellation of business registration in repeat violation cases
- Blacklisting of the business entity from future trade activities
Businesses found guilty of evading customs duties alongside operating without a license face additional penalties under the Customs Act, 2064 B.S.
FAQs
1. Who issues the Export-Import License in Nepal?
The Department of Commerce, Supplies and Consumer Protection (DoCSCP) under the Ministry of Industry, Commerce and Supplies issues export-import licenses in Nepal. District Administration Offices also issue licenses in certain cases.
2. Can a sole proprietor obtain an export-import license in Nepal?
Yes. A sole proprietor with a registered firm, valid PAN, and tax clearance certificate can apply for an export-import license. All standard document requirements must be fulfilled.
3. How long does it take to get an export-import license in Nepal?
The process generally takes 7 to 15 working days after submission of complete documents. Delays may occur if additional verification or inspection is required by the concerned authority.
4. Is VAT registration mandatory for obtaining an export-import license?
VAT registration is mandatory if the business turnover exceeds the threshold set by the Inland Revenue Department. Businesses below the threshold may operate with PAN only but must still comply with applicable tax laws.
5. What happens if I export or import without a valid license in Nepal?
Operating without a valid license is a punishable offense under the Export Import (Control) Act, 2013 B.S. Penalties include fines, goods confiscation, and possible imprisonment depending on the severity of the violation.
6. Do I need a separate license for each type of goods I import or export?
The standard export-import license covers general goods. However, restricted goods like pharmaceuticals, arms, wildlife products, and agricultural seeds require additional permits from the respective regulatory authorities beyond the standard license.