Export/Import License Process in Nepal

Company Services

Are you looking to start an import/export business in Nepal? One of the crucial steps in this process is obtaining the necessary license. This guide will walk you through the steps to secure your export/import license in Nepal, providing you with essential information to get your business up and running.

Who Needs an Export/Import License in Nepal?

Any individual or company planning to engage in international trade activities in Nepal must obtain an export/import license. This requirement applies to:

Businesses involved in exporting Nepalese goods to foreign countries
Companies importing foreign products into Nepal
Traders dealing with both import and export activities
Manufacturers who directly import raw materials or export finished goods
Agents or intermediaries facilitating international trade transactions

It’s important to note that even if you’re planning to conduct occasional or one-time import/export transactions, you’ll still need to acquire the appropriate license to comply with Nepalese regulations.

Where to Apply for an Export/Import License?

To apply for an export/import license in Nepal, you’ll need to visit the Department of Commerce, Supply and Consumer Protection (DoCSCP). This government body is responsible for issuing and regulating trade licenses in the country. Here’s what you need to know:

The DoCSCP has offices in major cities across Nepal, with its headquarters in Kathmandu.
You can submit your application in person at the nearest DoCSCP office.
Some districts may have local offices that can assist with the initial application process.
It’s advisable to check the DoCSCP website or contact them directly for the most up-to-date information on office locations and hours of operation.

Remember to prepare all necessary documents before visiting the office to ensure a smooth application process.

What Documents Are Needed for an Export/Import License?

Gathering the required documents is a crucial step in obtaining your export/import license. The DoCSCP requires the following paperwork:

Completed application form (available at the DoCSCP office or website)
Copy of your company registration certificate
PAN (Permanent Account Number) certificate
Tax clearance certificate from the Inland Revenue Department
Recommendation letter from the concerned ministry or department (if applicable to your product category)
Citizenship certificate of the company owner or authorized representative
Recent passport-sized photographs
Bank statement showing minimum required capital
Lease agreement or ownership documents for your business premises

Ensure all documents are current and properly certified. Having these ready will speed up your application process significantly.

How Long Does Export/Import License Approval Take?

The timeline for obtaining an export/import license in Nepal can vary depending on several factors. Generally, you can expect the process to take:

7 to 14 working days for a standard application with all documents in order
Up to 30 days if additional verifications or inspections are required
Longer processing times during peak seasons or if there are discrepancies in your application

To help expedite the process:

Double-check all your documents for accuracy and completeness before submission
Respond promptly to any requests for additional information
Follow up regularly with the DoCSCP on your application status
Consider using a licensed agent familiar with the process to assist you

Remember, patience is key, as thorough processing ensures compliance with Nepalese trade regulations.

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What Is the Cost of an Export/Import License?

The cost of obtaining an export/import license in Nepal includes both government fees and potential additional expenses. Here’s a breakdown of what you can expect to pay:

Application fee: NPR 1,000 to 5,000 (varies based on business type and scale)
License issuance fee: NPR 2,000 to 10,000 (depends on the category of license)
Renewal fee: Usually 50% to 75% of the initial issuance fee
Document certification costs: Varies, but budget around NPR 500 to 1,000
Bank guarantee or security deposit: Amount varies based on trade volume

Additional costs to consider:

Legal or consultancy fees if you choose to use professional services
Travel expenses if you need to visit multiple offices
Potential fines for late renewal or non-compliance

It’s advisable to keep some extra funds on hand for unforeseen expenses during the application process.

Are There Different Types of Export/Import Licenses?

Yes, Nepal offers various types of export/import licenses to cater to different business needs and trade activities. The main categories include:

General Export/Import License:

Covers a wide range of products
Suitable for businesses dealing with multiple product types

Specific Product License:

Issued for particular product categories
Often required for regulated goods like pharmaceuticals or electronics

Temporary License:

For short-term or one-time trade activities
Useful for businesses testing new markets

Service Trade License:

Focused on export/import of services rather than physical goods
Applicable to IT, consulting, and other service-based industries

Re-Export License:

For goods imported temporarily and then exported
Common in processing or value-addition industries

Deemed Export License:

For domestic sales treated as exports due to foreign currency transactions
Often used in special economic zones

When applying, clearly specify the type of license that best fits your business model and trade activities.

How Often Must Export/Import Licenses Be Renewed?

Keeping your export/import license up to date is crucial for maintaining legal compliance and uninterrupted business operations. In Nepal, the renewal process and frequency are as follows:

Standard renewal period: Annually (every 12 months from the date of issuance)
Grace period: 35 days after expiration without penalty
Late renewal: Possible within 6 months of expiration, but subject to fines

Key points to remember:

Start the renewal process at least 30 days before your license expires
Prepare updated versions of all original application documents
Pay the renewal fee, which is typically lower than the initial licensing fee
Submit a brief report of your import/export activities from the previous year
Be prepared for a potential inspection or audit during renewal

Setting up reminders and keeping thorough records throughout the year can make the renewal process much smoother.

What Products Require Special Export/Import Permissions?

While a standard export/import license covers many products, certain items require additional permissions or specialized licenses due to their nature or potential impact. These include:

Pharmaceuticals and medical supplies
Weapons and defense-related equipment
Precious metals and stones
Endangered species or products derived from them
Hazardous chemicals and materials
Certain agricultural products and seeds
Cultural artifacts and antiques

For these categories:

You may need approval from specific ministries or departments
Additional documentation and inspections are often required
Stricter regulations and monitoring may apply throughout the trade process

Always check with the DoCSCP or relevant government bodies for the most current list of restricted items and special permission requirements.

Can Export/Import Licenses Be Obtained Online?

In recent years, Nepal has been working towards digitizing various government services, including the process of obtaining export/import licenses. However, the current status of online applications is as follows:

Partial online services are available through the DoCSCP website
You can download application forms and check the status of your application online
Some initial steps of the application process can be completed electronically

However:

Physical submission of documents is still required in most cases
In-person verification may be necessary at certain stages of the process
Final approval and license issuance typically involve visiting the DoCSCP office

While full online processing is not yet available, keep an eye on official announcements for updates on digital services. The government is continually working to streamline these processes.

What Government Body Issues Export/Import Licenses?

The primary government entity responsible for issuing export/import licenses in Nepal is the Department of Commerce, Supply and Consumer Protection (DoCSCP). This department operates under the Ministry of Industry, Commerce and Supplies. Key points about the DoCSCP include:

It’s the central authority for trade-related licenses and permits
Responsible for implementing trade policies and regulations
Oversees compliance with international trade agreements
Provides guidance and support to businesses engaged in foreign trade

While the DoCSCP is the main issuing body, other government agencies may be involved in the process, such as:

Ministry of Agriculture for agricultural products
Department of Drug Administration for pharmaceutical imports/exports
Nepal Rastra Bank for foreign exchange-related matters

Always start with the DoCSCP for your licensing needs, and they will guide you to any additional departments if necessary.

The Process of Obtaining an Export/Import License in Nepal

Securing your export/import license in Nepal involves several steps. Here’s a comprehensive guide to help you navigate the process:

Business Registration:
Ensure your company is properly registered with the Office of Company Registrar. This is a prerequisite for applying for any business license in Nepal.
Document Preparation:
Gather all required documents, including your company registration certificate, PAN card, tax clearance certificate, and other paperwork mentioned earlier in this guide.
Application Submission:
Visit your nearest DoCSCP office with your completed application form and supporting documents. Pay the required application fee at this time.
Initial Review:
DoCSCP officials will review your application for completeness and accuracy. They may request additional information or clarification if needed.
Background Check:
The department may conduct a background check on your business and verify the information provided in your application.
Site Inspection:
For certain types of businesses or products, a physical inspection of your premises may be required to ensure compliance with regulations.
Final Approval and License Issuance:
Once all requirements are met and verifications are complete, the DoCSCP will approve your application and issue your export/import license.

Throughout this process, maintain open communication with the DoCSCP, respond promptly to any requests, and be prepared for potential delays. While the standard timeline is about two weeks, complex applications or those requiring additional permissions may take longer.

Remember, obtaining your license is just the beginning. Familiarize yourself with ongoing compliance requirements, record-keeping obligations, and renewal procedures to ensure smooth operations of your import/export business in Nepal.