EXIM Code Registration and Renewal Process in Nepal (2080)
This Article briefly covers the registration process of the Exim Code for a company/firm/industry for the export and import of goods from and to Nepal.
What is EXIM Code? Why is the EXIM Code required?
EXIM Code stands for Export and Import Code which is issued by the Department of Customs, Ministry of Finance. EXIM Code is the 13-digit government identification number to make the export and import process efficient and legally valid.
This code is required at the time of exporting and importing goods and products from and to foreign countries. EXIM Code aims to regulate international trade, collect trade-related data, ensure customs compliance, and provide benefits and legal oversight for businesses engaged in importing and exporting goods.
What are the governing laws for EXIM Code registration?
The main laws governing the procedure and registration of EXIM Code in Nepal are:
- Customs Act, 2064 (2007);
- Customs Rules, 2065 (2008); and
- Procedure for providing EXIM Code, 2079 (2023) (“EXIM Code Procedure”).
What is a Special EXIM Code?
Special EXIM Code, in general, is a temporary EXIM Code. According to section 7 of the EXIM Code Procedure, the Department of Customs or the relevant offices may provide a special EXIM Code under the following conditions:
- For import and export by the government authority, public corporation, government project, diplomatic agencies for non-commercial purposes;
- For import of raw materials, tools, equipment, and their parts by the micro, cottage, and small industries registered under the Industrial Enterprise Act, 2076 required for the production;
- A one-time importation of equipment, tools, or their parts required by the industry except as mentioned in clause 3.b. for the establishment of such industry; and
- Other exports or imports as specified by the Department of Customs.
Section 7(2) provides that the Department of Customs or the relevant offices may provide the special EXIM Code to the person who exports or imports the goods regularly for donation, gift, or relief.
Who must obtain the EXIM Code?
Company/firm/industry intending to import goods from a foreign country to Nepal and/or export goods to a foreign country from Nepal must obtain the EXIM Code. The exceptions under Section 6 of EXIM Code Procedure where EXIM Code will not be required are as follows:
- To import or export goods as per the notice regarding the goods for personal use that passengers may import or export; or
- To import goods equivalent to NPR 10,000 (Nepalese Rupees Ten Thousand) at a time; or
- To export goods equivalent to NPR 10,00,000 (Nepalese Rupees Ten Lakhs).
What is the Requirement to register the EXIM Code?
The minimum paid-up capital required to get the EXIM Code is NPR 10,00,000 (Nepalese Rupees Ten Lakhs). However, the required minimum paid-up capital may vary based on the nature and location of the trading company.
Moreover, the company/firm/industry only willing to export the goods have no limitations in paid-up capital.
What is the registration process for the EXIM Code?
- Step 1: Submit the Online Application with the required documents to Department of Customs through Official Website
- Step 2: Verification of the Documents by Department of Customs/Customs Office
- Step 3: Issue the EXIM Code by Department of Customs/Customs Office within 7 Days from the Date of Application after Verification
- Step 4: Receicing EXIM Code Certificate from Department of Customs/Customs Office
Required Qualification for Registration
- The company/firm/industry willing to obtain EXIM Code must have:
- (i) registered under the Department of Commerce, Supplies and Consumer Protection for export or import; or
- (ii) obtained license for direct sale and distribution of goods from the Department of Commerce, Supplies and Consumer Protection under the Direct Sale of Goods ( Management and Regulation) Act, 2074; or
- (iii) in case of industry, registered under the Department of Industry, Government of Nepal by the Industrial Enterprises Act, 2076; or
- (iv) registered in the relevant body and received a recommendation from the Department of Industry, Government of Nepal to obtain EXIM Code.
2. Meets the minimum paid-up capital requirement;
3. Obtained PAN (Permanent Account Number) certificate;
4. Registered under VAT (Value Added Tax) in case of import of goods subject to value added tax; and
5. No arrears of tax is required to be paid to the Government of Nepal.
Required Documents for EXIM Registration in Nepal
- Copy of the certificate and recommendation
- Copy of certificate proving that the company/firm/industry meets minimum paid-up capital requirement; (Not required if involved in export only)
- Copy of PAN certificate;
- Tax clearance certificate issued by the office under the Inland Revenue Department where no arrears of tax are due;
- Minimum 1 year of bank Guarantee of NPR 3, 00,000 (Nepalese Rupees Three Lakhs) from the Commercial Bank (A-Grade); (Not required if involved in export only)
- Recommendation letter from the bank in the prescribed format where the applicant has a bank account; (Not required if involved in export only)
- One passport-size photo of a person, proprietor, or head of the company.
Note: All the documents must be scanned and uploaded on the official website of the Department of Customs.
Timeline for Registration
The Department of Customs verifies the documents and if the requirements are fulfilled, the department will provide the EXIM Code within 7 (seven) days.
EXIM Code Renewal in Nepal
Section 8 of the EXIM Code Procedure provides that the EXIM Code must be renewed for each fiscal year through electronic medium. The company/firm/industry may renew the EXIM Code for up to 5 (five) fiscal years upon the payment of a lump sum fee. The bank guarantee of each year of such renewal period is required.
Required Documents
- Tax clearance certificate; and
- The bank guarantee is equivalent to NPR 3,00,000 (Nepalese Rupees Three Lakhs) for the period to be renewed.
Suspension and Revocation of the EXIM Code
Conditions for Suspension
If the person with EXIM Code does not pay the revenue or any other amount to be paid to the Government of Nepal, the Department of Customs or Customs Office may suspend the EXIM Code of such person for up to 6 (6) months.
Release of Suspension
If the person submits an application within 6 (six) months of suspension for release of such suspension along with the information that the revenue or any other amount to be paid has been paid, the suspension will be released.
Conditions for Revocation
- If the EXIM Code suspension is not released within 6 (six) months of suspension; or
- If a person causes or attempts to cause a loss of revenue or duty by submitting a forged, fake, or false document to the Customs Office; or
- If a person commits or attempts to commit export smuggling or import smuggling of any goods or exports or imports or attempts to export or import any goods through any route other than the route as prescribed under prevailing laws; or
- If the name, nature, physical characteristic, characteristic properties, measurement, size, quality, and quantity of the goods are found to be different from those declared by the importer; or
- If an importer, exporter, or customs agent is punished for wrongly declaring the goods time and again.
Disclaimer: This article is for informational purposes only and shall not be construed as legal advice, advertisement, personal communication, solicitation or inducement of any sort from the firm or any of its members. The firm shall not be liable for consequences arising out of any action undertaken by any person relying on the information provided herein. The copyright of the contents of this article is vested with Imperial Law Associates.
The copyright of the contents of this article is vested with Imperial Law Associates.
Frequently Asked Questions
To get an Exim Code in Nepal, submit an online application to www.customs.gov.np with the above provided documents and wait for verification by the Department. After Verification, you shall be awarded an Exim Code.
You can renew your Exim Code electrically through www.customs.gov.np or get a legal professional’s assistance.
EXIM code, short for Export and Import Code, is a 13-digit government identification number required for both exporting and importing goods to and from foreign countries in Nepal.
The EXIM code needs to be renewed annually and can be renewed for up to 5 fiscal years at a time.
- Copy of Minimum Paid-up Capital Requirement
- Copy of PAN Certificate
- Copy of VAT Registration Certificate
- Tax Clearance Certificate
- One Years of Bank Guarantee of Rs 3 Lakhs for Import
- Recommendation Letter from the Bank
- One Passport Size Photo
You require a company with a minimum paid up capital of NPR 10 Lakhs. You also require a bank guarantee to obtain an Exim Code.
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