| | Industries Exporting Goods | Duty Free Shops | Buy-Back arrangement | Textile industries |
| Import under BG | Industries importing raw materials, auxiliary raw materials including packing materials not manufactured in Nepal to manufacture goods to be exported or sold within Nepal convertible FCY | Goods to be sold through duty free shops | Import of raw materials without payment on the condition that goods manufactured shall be exported to such supplier. | Industry manufacturing textile, and selling such textile to EOU. Recommendation of Ready made garment association required. |
| Letter of Credit | Required | Required | Not Required | Required |
| Extent Bank Guarantee | 100% of applicable custom duty + 15% of such duty | 100% of applicable custom duty | 100% of applicable custom duty | 100% of applicable custom duty |
| Time Limit of BG | 6-12 months | Generally until the goods are sold | Generally until the goods are sold | Generally until the goods are sold |
| Extension of BG | 6 months validity can be extended upto 12 months. and further period of 5 months may be added. | -- | -- | -- |
| Time Limit for Export/Sale | 11 months + may be extended if reason is valid by the chief of the concerned custom office | 12 months + may be extended if reason is valid by the chief of the concerned custom office | 11 months + may be extended if reason is valid by the chief of the concerned custom office | 11 months + may be extended if reason is valid by the chief of the concerned custom office |
| Conditions Of Value Addition | 10% Value addition Required. (FOB of exports-Import Value)/Import Value > 10% | No such Condition | No Such Condition | 10% Value addition Required. (FOB of exports-Import Value)/Import Value > 10% |
| Time Limit for Submission of Application for release of BG | 11 months. If period of export is extended, 17 months. | 12 /18 | 11/17 | 11 months. If the importer of yarn wishes to release such BG only after the buyer exports goods, 22 months. |
| Documents to be Submitted to Release BG | 1. Documents of Imports. 2. Documents of Export 3. Certificate of Foreign Exchange Earning issued by concerned bank. 4. Certificate of Ratio of consumption of imported Raw material or auxiliary raw material. | 1. Documents Relating to Sales | 1. Documents of Imports. 2. Documents of Export 3. Certificate of Foreign Exchange Earning issued by concerned bank. 4. Certificate of Ratio of consumption of imported Raw material or auxiliary raw material. | if BG is to be Released at the time of sales to domestic EOU - Proof of value addition/proof of sales to domestic EOU/Sales purchase agreement/Ratio of consumption of imported RM/BG issued by the EOU................................... if BG is to be released at the time of Export by the EOU, then following documents in addition to the above documents - proof of export/proof of receipt of Foreign Exchange. ........................................ following documents are required to release BG issued by the EOU - Proof of value addition/ proof of export/ certificate of consumption/ certificate of FCY |
Similar Provision of pass book Facility to industries not availing the facility of Bonded Warehouse :
- For importer of RM, Auxiliary RM or packing materials not produced in Nepal (on the Recommendation of DOI).
- FG should be Exported or sold within Nepal in FCY
- 10% Value addition is Required
- 100% of applicable duty as Cash Deposit
- Exported or sold within 12 months + 6 months (circumstances beyond control)
- Submit proof of sales/Certificate of FCY/Certificate of Consumption to release the Cash Deposit
- If not Exported within the specified time, Applicable custom duty shall be recovered + 10% penalty
Published By
Aadesh Kandel
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