EXIM Code Registration in Nepal 2080/81

What is EXIM Code?

EXIM Code, which stands for Export Import Code, is a 13-digit, 2-letter Unique Identification Number for Importers and Exporters desiring to transport goods between international countries. According to the EXIM Code Procedure, a person who wishes to engage in export or import business in Nepal is required to possess such a code.

What are the Laws related to EXIM Code?

The Major Laws that have provisioned for EXIM Code in Nepal are as follows:

EXIM Code Procedure, 2079 (2023)

According to the Procedure , the rationale for establishment of the code is to induce transparency, security and simplicity to Import and Export of Goods in the Nepalese International Trade Ecosystem. For the purposes of receiving such Code, the Procedure has outlined that an Application must be submitted to Department of Customs through Electronic Means. Additionally Customs Act, 2064 (2007) has also dealt with Export and Import of Goods.

Is EXIM Code Mandatory in Nepal?

In Nepal, individuals willing to participate in International Trade through Export and Import of Goods is required to have An Export Import Code registrable through the Department of Customs through Electronic Means.

What are the types of EXIM Code?

XIM Codes are issued for Two Major Purposes:

1. Permanent Code
2. Temporary Code

A Unique Identifiable Number that is Permanent for the Business is issued by the Department of Customs, with the exception of exceptional circumstances. It also issues a Temporary Code, however, for the following purposes:

1. Import and export by government entities, public corporations, and diplomatic agencies for non-commercial purposes.
2. Import of basic materials, tools, equipment, and their components for manufacturing by registered micro, cottage, and small businesses.
3. Industry establishment involving the one-time importation of apparatus, instruments, or their components
4. Any additional imports or exports that the Department of Customs specifies

What are the Requirements for EXIM Code Registration?

The Following Requirements must be met before EXIM Code Registration in Nepal:

1. Company Registered under the Department of Commerce, Supplies and Consumer Protection with the objective of Import or Export or Licensed by the Department for Direct Selling of Goods
2. For Industries, Registered and Licensed under the Industrial Enterprises Act for the purposes of Export or Import by the Department of Industry.
3. The Minimum Paid Up Capital should be NPR 10,00,000/-
4. For Export and Import of Goods with Value Added Tax, such Companies must be registered for VAT
5. Annual Filing of Tax Returns with no Remaining Tax to be paid.

What is the Process of EXIM Code Registration in Nepal?

The Process of EXIM Code Registration in Nepal are as follows:

Step 1: Go to Customs Online Portal

Submit the online application along with the required documents to the Department of Customs through the official website designated for such applications through Department of Coustoms Official Website

Step 2: Submit Documents Under EXIM Code Access

Thereafter, Individuals must access the EXIM Code Registration Portal: www.customs.gov.np/page/exim-code-portal. It must be noted that the Website isn’t always Loading. Nonetheless, the received Documents must be submitted.

Step 3: Verification of Documents By Customs Department

The Department of Customs or the respective Customs Office will verify the submitted documents. The Required Documents to be Submitted have been mentioned below. The Documents must be submitted in Electronic Form.

Step 4: EXIM Code Issuance

The EXIM code will be issued by the Department of Customs or the Customs Office seven days subsequent to the application date, contingent upon the effective verification of the documents. The exact duration of this period may fluctuate in accordance with the burden and particular protocols implemented.

Step 5: Receipt of EXIM Code Certificate

Once the EXIM code is issued, the applicant will receive the EXIM Code Certificate from the Department of Customs or the respective Customs Office. It authorizes the conduct of Import-Export Activities if the above mentioned Criteria have been efficiently met.

What are the Required Documents for EXIM Registration?

The Required Documents for EXIM Code Registration in Nepal:

1. Copies of the Certificate and Recommendation

• A duplicate of the certificate attesting to adherence to the minimum paid-up capital stipulation (not mandatory for activities limited to exports).
• Letter of recommendation from the bank in the format specified (not required for export-only activities).

2. Indispensability Certificates

• A duplicate of the PAN certificate.
• A certificate of tax clearance issued by the Inland Revenue Department, attesting to the absence of any outstanding tax obligations.

3. Financial Guarantee

• A Commercial Bank (A-Grade) Must Provide a Minimum One-Year Bank Guarantee of NPR 3,00,000 (Nepal Rupees Three Lakhs) (exempt for export-only ventures).

4. Photographic Requirement

• An individual, proprietor, or company leader photograph in passport size.

How can I register my EXIM Code in Nepal?

Through the Official Online Portal of the Nepal Customs Department, an EXIM Code can be registered. From the (Portal/Links) sub-menu, users are required to access the EXIM Code Registration Portal. They are then required to register and provide the necessary information.

Furthermore, it is mandatory for the documents to be submitted electronically. Bear in mind that in order to obtain an EXIM Code, a company must provide a Paid-Up Capital of NRP 10,00,000 and a Bank Guarantee of NPR 3,00,000.

How and Where to renew EXIM Code?

EXIM Code must be renewed every Fiscal Year in Nepal for the continuation of Export-Import Business. According to the EXIM Code Procedure, the Code may be renewed for a maximum of five years at once if a substantial fee is paid.

The Code can be renewed digitally, and it may take up to one week for it to take effect. A Tax Clearance Certificate and a Bank Guarantee in the amount of NPR 3,000,000 must be submitted for renewal purposes.

What is the cost of EXIM Code Registration?

The Cost of EXIM Code Registration hasn’t been explicitly mentioned although you require a Bank Guarantee of NPR 3,00,000 to obtain the Code.