Import Export License in Nepal: Registration, Process & Fees (2026)

Nepal's international trade has grown steadily — the country imported goods worth over NPR 1.7 trillion and exported over NPR 200 billion in fiscal year 2082/83 BS (2025/26). Whether you plan to import electronics from China, export handicrafts to Europe, or trade agricultural products across the Indian border, you need a valid import/export license (निकासी/पैठारी इजाजतपत्र) issued by the Department of Commerce (DoC) under the Ministry of Industry, Commerce and Supplies. Without this license, Nepal Customs will not clear your goods at any border point or dry port.

This guide covers everything — who needs the license, how to register at the DoC, required documents, PAN and VAT prerequisites, special permits for restricted goods, custom duty basics, and the annual renewal process. If you are setting up a trading business in Nepal in 2026, this is your complete roadmap.

Who Needs an Import/Export License in Nepal?

Under the Export Import (Control) Act 2013 BS (1957) and the Foreign Trade Act 2049 (1992), any person or entity engaged in the import or export of goods across Nepal's international borders must hold a valid trade license from the Department of Commerce. This includes:

• Importers: Businesses or individuals bringing goods into Nepal from any foreign country
• Exporters: Businesses or individuals sending Nepali goods to foreign markets
• Import-export traders: Companies engaged in both import and export activities (require both registrations)
• Commission agents: Agents facilitating international trade on behalf of principals
• Foreign-invested companies: Companies with foreign investment engaged in trading activities (subject to FITTA 2075 restrictions)

Important exceptions — the following do not require a DoC license:

• Personal goods brought by travelers within customs duty-free allowance
• Diplomatic shipments and goods for international organizations with bilateral agreements
• Goods in transit through Nepal (covered under transit agreements)
• Samples valued below NPR 10,000 for business purposes

Legal Framework for Import/Export in Nepal

Nepal's foreign trade is governed by several laws and regulations that work together:

The Department of Commerce operates under the Ministry of Industry, Commerce and Supplies (उद्योग, वाणिज्य तथा आपूर्ति मन्त्रालय). The DoC's main office is in Kathmandu, but regional offices in Birgunj, Biratnagar, Bhairahawa, and Nepalgunj also process trade licenses.

Prerequisites Before Applying for Import/Export License

You cannot walk into the DoC and apply directly — several prerequisites must be completed first:

Step 1: Business Registration

You must have a registered business entity in Nepal. The business type determines where you register:

Important: Your business registration certificate must include trading or import/export as one of the stated business objectives. If your current registration only covers manufacturing or services, you must amend it before applying at the DoC.

Step 2: PAN Registration

A Permanent Account Number (PAN) from the Inland Revenue Department (IRD) is mandatory. No trade license will be issued without a valid PAN certificate. PAN registration is free and can be done online at ird.gov.np.

Step 3: VAT Registration (If Applicable)

VAT registration is mandatory if your annual turnover exceeds NPR 50 lakh (NPR 5 million). For importers, this threshold is almost always crossed because the import value itself counts toward turnover. In practice, nearly all import businesses require VAT registration. Exporters benefit from VAT registration because exports are zero-rated — meaning you charge 0% VAT on exports but can still claim input tax credit on purchases.

Step 4: Bank Account

A current (business) account at a commercial bank licensed by the Nepal Rastra Bank (NRB) is required. The bank account name must match your business registration name. For foreign currency transactions related to imports, you will need a Letter of Credit (LC) facility or Telegraphic Transfer (TT) arrangement through a Class A commercial bank.

Documents Required for Import/Export License

The following documents must be submitted to the Department of Commerce:

For All Applicants

• Application form (available at DoC office or website)
• Business registration certificate (certified copy)
• PAN certificate (certified copy)
• VAT registration certificate (if applicable)
• Citizenship certificate of the proprietor/director (certified copy)
• Passport-size photographs (2 copies)
• Bank account statement or bank verification letter
• Rental agreement or land ownership certificate of business premises
• Tax clearance certificate from IRD (for renewals — see tax clearance guide)

Additional for Companies

• Memorandum of Association (MOA) and Articles of Association (AOA)
• Board resolution authorizing the application for trade license
• Company registration certificate from OCR
• Director identification documents

Additional for Foreign-Invested Companies

• DOI approval letter for foreign investment
• FITTA approval certificate
• Passport copy of foreign investors/directors
• Capital investment proof (bank statement showing minimum NPR 20 million investment)

Registration Process at the Department of Commerce

The step-by-step process for obtaining an import/export license in Nepal:

Step 1: Prepare and Submit Application

Collect all required documents listed above. Fill out the DoC application form specifying whether you are registering as an importer, exporter, or both. Submit the application with all supporting documents at the DoC office in Kathmandu or the nearest regional office.

Step 2: Document Verification

The DoC officer reviews all submitted documents for completeness and accuracy. If any documents are missing or incorrect, you will be asked to resubmit. This verification typically takes 1-3 working days.

Step 3: Payment of Registration Fee

After document verification, you will receive a payment slip. Fees are paid at the designated bank counter:

Step 4: License Issuance

Upon fee payment, the DoC issues your import/export license certificate. The license includes your registered trading name, license number, categories of goods you can trade, and validity period. The entire process from application to issuance typically takes 3-7 working days.

Step 5: Register with Nepal Customs

After obtaining the DoC license, you must register with Nepal Customs Department to obtain a customs registration number. This registration is mandatory for clearing goods at any customs point. You will also need to register on the ASYCUDA (Automated System for Customs Data) system used at all Nepal customs offices.

PAN and VAT Requirements for Traders

Tax compliance is non-negotiable for import/export businesses in Nepal. Here is what you need to know:

PAN Obligations

Every import/export business must file income tax returns annually using their PAN. Business income is taxed as follows:

• Sole proprietorship: Individual income tax rates (1% to 39%) — see sole proprietorship tax guide
• Partnership firm: Individual rates applied to each partner's share
• Private limited company: Corporate tax rate of 25% on net profit
• Export-oriented industries: Reduced rate of 20% under the Industrial Enterprises Act 2076 for businesses exporting more than 40% of production

VAT Obligations for Importers

Import VAT is charged at 13% on the customs value (CIF value + customs duty). This must be paid at the customs point before goods are released. VAT-registered importers can claim this as input tax credit against their output VAT when selling goods domestically. Non-VAT-registered importers cannot claim input credit — making VAT registration almost always beneficial for importers.

VAT for Exporters

Exports from Nepal are zero-rated under the VAT Act 2052, Section 15. This means:

• You charge 0% VAT on exported goods
• You can still claim input tax credit on all purchases and expenses related to the exported goods
• If your input VAT exceeds output VAT (which it always will for exporters), you can claim a VAT refund from the IRD
• VAT refund applications must be filed within 3 years of the export transaction

TDS on Trade Payments

When making payments to suppliers, contractors, or service providers, import/export businesses must deduct Tax Deducted at Source (TDS) as required by the Income Tax Act 2058. TDS rates vary from 1.5% to 15% depending on the nature of payment.

Special Permits for Restricted Goods

Not all goods can be freely imported or exported. Nepal maintains lists of prohibited, restricted, and controlled goods under the Export Import (Control) Act 2013 BS and related regulations:

Prohibited Goods (Cannot Be Imported)

• Narcotic drugs and psychotropic substances
• Arms, ammunition, and explosives (without security clearance)
• Counterfeit currency and pornographic materials
• Goods harmful to public health or the environment (as notified by the government)

Restricted Goods (Require Special Permits)

Export-Restricted Goods

Certain goods cannot be exported from Nepal or require special clearance:

• Archaeological artifacts and items of cultural heritage
• Rare wildlife products (governed by CITES and National Parks Act)
• Certain raw materials where the government wants to encourage domestic value addition
• Forest products like timber and herbs without Department of Forests clearance

Custom Duty Basics for Traders

Understanding customs duty is essential for any importer in Nepal. The Customs Act 2064 (2007) and the annual Finance Act (published with each budget) determine duty rates:

Types of Customs Duties

• Import duty: Ranges from 0% to 120% depending on the product category (Harmonized System code)
• Excise duty: Applicable on specific goods like alcohol, tobacco, vehicles, and luxury items
• Agricultural reform fee: 5% on certain agricultural imports
• Infrastructure development tax: Applied on select imported goods

How Customs Duty Is Calculated

Customs duty is calculated on the CIF value (Cost + Insurance + Freight) of imported goods. The formula:

Total import cost = CIF Value + Customs Duty + Excise Duty (if any) + VAT (13% on CIF + duties) + other applicable fees

For example, if you import goods with a CIF value of NPR 1,000,000 and the customs duty rate is 15%:

Customs Clearance Process

All customs clearance in Nepal is processed through the ASYCUDA World system. Your customs broker (clearing agent) files the customs declaration electronically. Key customs points for trade:

• Birgunj (Raxaul border): Nepal's busiest customs point — handles over 60% of Nepal-India trade
• Biratnagar: Eastern Nepal's main trade gateway
• Bhairahawa (Siddharthanagar): Western trade route
• Tribhuvan International Airport (TIA): Air cargo imports
• Tatopani/Rasuwagadhi: Nepal-China (Tibet) border trade points
• Dry Port Birgunj (ICD): Nepal's only inland container depot for third-country imports

Annual Renewal Process

The import/export license issued by the DoC is valid for one fiscal year (Shrawan to Ashad / mid-July to mid-July). You must renew before the license expires. The renewal process:

• Obtain a tax clearance certificate from the IRD (proving you have filed all tax returns and paid all dues)
• Submit the renewal application with updated documents at the DoC
• Pay the annual renewal fee (NPR 2,000–4,500 depending on license type)
• If you fail to renew within the fiscal year, a late fee of up to 25% of the renewal fee may apply
• Licenses not renewed for more than 3 consecutive years are automatically cancelled

Tip: Set a calendar reminder for Ashad (June-July) each year. Many traders lose their license simply because they forget to renew.

Trade Agreements and Preferential Access

Nepal benefits from several trade agreements that can reduce or eliminate customs duties:

• SAFTA (South Asian Free Trade Area): Reduced tariffs on trade with India, Pakistan, Bangladesh, Sri Lanka, Bhutan, and Maldives
• Nepal-India Trade Treaty: Primary manufactured goods of Nepali origin enjoy zero duty access to the Indian market with a Certificate of Origin from the Nepal Chamber of Commerce
• EU GSP/EBA: Nepal qualifies for the EU's Everything But Arms (EBA) scheme — duty-free, quota-free access to EU markets for all products except arms
• LDC preferential access: As a Least Developed Country, Nepal enjoys preferential tariff rates in many developed country markets

To benefit from these agreements, you must obtain a Certificate of Origin from the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) or the Nepal Chamber of Commerce. This certificate proves that goods were manufactured or substantially transformed in Nepal.

Common Mistakes to Avoid

• Trading without a license: Penalties include seizure of goods, fines up to 5 times the value, and potential imprisonment under the Customs Act 2064
• Wrong HS code classification: Incorrectly classifying goods to pay lower duty is considered customs fraud
• Not updating business objectives: If your original business registration does not mention import/export, the DoC will reject your application
• Ignoring Letter of Credit requirements: For imports from countries other than India, NRB regulations often require an LC through a commercial bank
• Not registering on ASYCUDA: Without ASYCUDA registration, you cannot file customs declarations or clear goods
• Missing renewal deadlines: Operating with an expired license is equivalent to trading without a license
• Failing to maintain import/export records: The audit requirements under the Income Tax Act require maintaining records for 5 years

Foreign Investors and Import/Export

Foreign nationals and foreign-invested companies can engage in import/export business in Nepal, but with additional requirements under the FITTA 2075:

• Minimum investment of NPR 20 million (approx. USD 150,000) is required
• DOI approval is mandatory before applying for a DoC trade license
• Certain trading activities are restricted for foreign investors — pure trading (buying and selling without value addition) may require special approval
• Foreign investors can repatriate profits in convertible currency through their bank
• A valid business visa and work permit are required for foreign nationals managing the business in Nepal

Conclusion

Getting an import/export license in Nepal is a straightforward but multi-step process. Start by registering your business, obtaining PAN and VAT certificates, then apply at the Department of Commerce with the required documents. The entire process can be completed in 2-4 weeks if you have all prerequisites in order. Remember to renew annually, comply with special permit requirements for restricted goods, and maintain proper records for tax and customs audits.

For businesses operating in specialized sectors — pharmaceuticals, food, agricultural products, or telecommunications equipment — the additional permits from sector-specific regulators add complexity but are legally mandatory. Working with an experienced legal team saves time, reduces errors, and ensures full compliance with Nepal's trade regulations.

If you need assistance with import/export licensing, company registration, VAT registration, or any business legal service in Nepal, our advocates are ready to help.