1. Special provisions relating to import of Vehicles

(1) Following conditions should be followed while importing vehicles for the transportation of goods and persons:
(a) Only Authorized Dealers of Nepal can import New vehicles for the transportation of goods and persons from the manufacturing companies or its Authorized Dealers of that country. In case of not purchased from the manufacturer byt from its authorized dealers, the importer should present the tripartite agreement done in between manufacturer, its foreign and national baed authorized dealers.
(b) Reconditioned, used vehicles or the vehicles which do not comply with the Nepal Vehicles Emission Standard 2069 are not permitted to import.
(c) Vehicles imported as per part (a) for the purpose of sales, the importer compulsorily publish in national Newspapers the Maximum Retail Price (M.R.P.) of such vehicles three times (in every four months) in a year.
(d) Importers not publishing Maximum Retail Price (M.R.P.) of vehicles imported as per part (c), the Department of customs can examined by stopping import and sales transaction of such importers.
(e) Vehicles for the transportation of goods and persons if imported by violating the conditions of this sub-clause part (a) and (b), the vehicles can be seized. But,
(1) There shall be no effect of this sub clause part (a) in the cases of government agency, diplomatic or the person or agency given privileged of duty, government projects running on loan and in co-operation of grant while importing Vehicles for transportation of goods and persons and Handicapped persons importing scooter for its use.
(2) There shall be no effect of this sub-clause part (a) and (b) in the case of import of Fire Engine.
(3) Nepalese citizens returning from diplomatic mission completing job period of more than are year may be allowed to import the personally used vehicles registered in their names in abroad on the permission granted by Ministry of Environment, Science and Technology.
(2) Vehicles of Personal use brought in by tourists under a carnet shall be allowed to stay in Nepal continuously or intermittently for a period of 6 months during the span of 12 months (one year) from the date of the first entry into Nepal without payment of import duty. Vehicles thus imported shall be seized if not taken back within six months. However, the period recommended by the District Police Office as the vehicle concerned has remained in police custody because of an accident or by a registered workshop as the vehicle has been lying with them for repairs shall be discounted from the period specified by customs in the carnet concerned. Vehicles thus imported under a carnet are prohibited from being sold or given a gift or present. The goods attached with carnet vehicle may be allowed to import by noting the list of such goods in the carnet paper.
(3) The temporary import of vehicles such as motorcars, station wagons, land rovers, jeeps, trucks, tractors, lorries, vans and motorcycles including their trailers except those brought under a carnet shall be charged customs duty as follows:
(a) On the temporary import of a tractor, a temporary customs duty at the rate of Rs 300.00 per diem shall be imposed. However, on the temporary import of a tractor fitted with trailer or of trailer alone a sum of Rs. 600.00 per diem shall be charged as temporary customs duty. Nevertheless, if a tractor enters into the country with trailer loaded with commodities and returns empty within 48 hours, no temporary duty shall be charged. Tractors or trailers or tractors fitted with trailer thus imported shall not be permitted to stay in the country for more than thirty days.
(b) Import duty shall be levied on vehicles imported temporarily and having no carnet at the rate of Rs. 400.00 per diem in the case of cars, vans and jeeps and Rs. 400.00 per diem in case of tourist vehicles including buses and minibuses shall be levied. However, motorcycles and scooters shall be charged temporary import duty at the rate of Rs 100.00 per diem and three wheelers at the rate or Rs. 300.00 per diem. Vehicles thus imported with the payment of temporary import duty are prohibited to stay in the country for more than thirty days in one year. But,
(1) No duty shall be charged on vehicles for reaching nearest market and returning on the same day of entry.
(2) As per agreements and understanding between two countries for operation of travelling buses and minibuses for importation temporarily is done according to the agreements and understanding.
(3) The Special vehicles attached with machinery for film shooting, educational exhibition and to promote the social consciousness if come and the time required is unsufficient as mentioned is this part, the concerned chief of the office if recommends along with the suggestions, the director general shall charge the duty as per the rule and shall extend the time period maximum up to 3 months.
(c) Vehicles (except tractors) levied a temporary import duty at the rate of Rs 1,500.00 per diem, may temporarily be imported for the transportation of goods for a period not exceeding 7 days in one time.
(d) Vehicles and means of transport thus imported temporarily must be taken back. Vehicles specified in (a), (b) and (c) above may be seized if found to have overstayed than the period declared in the declaration from (Pragyapanpatra), or proved to have stayed in Nepal producing fake particulars (or presenting false statement). Nevertheless, vehicles may be allowed to be taken back after paying duty at the rate of Rs. 1000.00 per diem in the case of motorcycle and Rs. 2000.00 per diem in the case of other vehicles if appropriate reason is found to exist in the course of taking back such vehicles.
(e) No temporary import duty shall be charged up to 96 hours to the loaded container (bullet) of L.P. gas from foreign countries to unload in its destination.
(f) No temporary import duty shall be charges up to 72 hours besides L.P. gas to the container of trailer from foreign countries to unload in its destination and the trailer coming back empty to load the goods in the customs area.
(g) Only one day of temporary duty shall be charged to the loaded trucks and the trailer with full loaded containers coming from foreign countries to Nepal and empty truck or the trailer with empty container if load the goods outside customs area and if return within 48 hours. Such vehicles if return with loaded goods after 48 hours outside customs area, the temporary customs duty of Rs. 2000 per day shall be charged.
(h) The vehicle mentioned for transporting goods from the part (e), (f) and (g) if could not return within the said period due to bandh, strike, natural disaster, accident and the condition arises of imposing temporary duty, the chief of customs office can extend maximum for 3 days and there shall be no duty in duration of extension.
(4) In case of imports of the vehicles and the chassis thereof under Chapter 87, the registration of the same must be done as duty paid (at the time of customs clearance). If the registration has to be done in type other than that declared previously, it could be accomplished only on condition that the customs office after realizing the difference of duty, if any, issues permission for such registration. In case of use or registered without approval such vehicles will be seized.
(5) For the purpose of Heading 87.02 of this chapter while counting the number of seats (of a vehicle) the regular seats and driver seat shall be made in counting. But there shall be no consideration of conductor’s seat and other additional seats and folding seats.
(6) If vehicles and machineries imported under duty exemption by Nepal Government District Development Committee, Metropolitan, Sub Metropolitan, Municipality, Village Development Committee and institutions fully owned by Government are sold in auction after expiry of 5 years, shall not be liable to customs duty and other taxes. However, the above mentioned restriction of 5 years shall not apply in case of vehicles seized under Customs Act, 2064 and Regulation, 2064 and owned by Government as per the decision made by Nepal Government.
(7) The chief of customs office, on the certification of the concerned Police Office, or the Department of Revenue Investigation or its field office, may waive the chargeable customs duty of the period in which any vehicle imported temporarily occurs with and accident and is brought to the custody of police or remains their in the course of investigation.
(8) Any foreign traveller entering vehicle into Nepal but has missed to pay the duty as per this clause and by appearing physically with application to pay the duty in any customs office, the customs officer by examining the matter if finds the application appropriate, likely to be allowed to take the vehicle back to the foreign by imposing the penalty of Rs. 25000 along with the required duty. But
a) It should be done within 1 week of entering such vehicles into Nepal.
b) It should not be etered into customs office in the form of litigation through custody by and individual or agencies.
(9) Customs duty of Rs. 1000 per day shall be charged on the temporary import of vehicle attacted with boring machine to drilled out undergound water for drinking and irrigation purpose. Such vehicles shall not be allowed to stay more than 1 year in Nepal.
2. Provisions relating to vehicles, machineries, equipments or goods imported under customs privilege (diplomatic privilege), full and partial duty exemption on record or on bank guarantee.
(1) Vehicles, machineries, equipments or goods imported under customs privilege (diplomatic privilege) of full or partial duty exemption or imported with the payment of 1 percent customs duty according to the decision made by government or importation made under bank guarantee or under record shall be granted a rebate of 60 percent on chargeable customs duty of Schedule (1) if it is sold, donated or kept for its own use. In the case of imported vehicles under partial duty exemption only the balance duty amount shall be charged after deducting the duty amount paid in advance. Nevertheless, such exemption shall be granted only to those vehicles, machineries, equipments and goods which have passed 5 years from the date of importation. In case this facility is to be granted to person, it will be accorded only once throughout the period of his/her tenure in Nepal.
(2) Any vehicles, equipments or goods which have been temporarily imported for a specific work or for a project against bank guarantee or on record must be re-exported within 3 months after completion of work along with completion of defect liability period or maintenance period except the duty is paid for gifting someone or sale or for own use in Nepal. Thus if not taken back within the specified time or not paid the duty, such vehicles, equipments or goods shall be seized except government extends the time and if imported on Bank Guarantee, the bank guarantee amount shall be put into revenue. But in the case of machinary, equipments and vehicles on completion of the project including defect liability period or duration of maintenance with crossing of 3 months if duty is paid of the period at end of Paush month of 2073, such machinary, equipment and vehicles shall not be seized and the bank guarantee if held shall be relized.
(3) As per sub clause (2) those vehicles equipments or goods not taken back or not paid the duty, the person reporting the detailed of such goods and helping to keep in custody shall be rewarded 10% of amount received after auction.
(4) The following provisions have been made for the importation of vehicles, machineries, equipments and goods in the name of projects or contractors for the implementation of projects in Nepal.
(a) Under the agreement with Nepalese Government or with the decision of Nepalese Government vehicles, machineries, equipments and goods may be allowed to import temporarily in the name of project or contractors either charging partial duty or taking bank guarantee equivalent to chargeable duty.
(b) While importing such vehicles and goods, the time period for which these goods will remain in Nepal must be clearly stated in the declaration form itself. If the goods need to be kept in Nepal longer than such stated time period due to project delay, permission must be taken from the concerned authority. The Customs Department will inform such time extensions to the concerned customs office and or other authorities only after it receives notification regarding project time extension.
(c) Vehicles and goods thus imported as per the above procedure will be registered in such a manner that they will have a distinct identity and the registration will not be renewed after project completion time period.
(d) Permission will not be granted to transfer such vehicles, equipments and goods from one project to another project unless duty is paid except permission given by Government of Nepal.
(e) Goods mentioned above should be re-exported within three months after the completion of project unless Nepal Government has extended the completion time period. The date of completion of the project includes defect liability period and maintenance period as per agreement.
(f) If not taken back as per (e) and if the goods are used by himself or gifted to someone else or sold, the duty should be paid as per this schedule within the specified time. Thus not taken back within the time framework or not paid the duty, there shall be as written in sub-clause (2).
(g) The person reporting on time to help in keeping custody shall be rewarded as sub-clause (3) for the goods not taken back within specified time or lapsing the time, without paying the duty.
(h) The contractor of a project will not be allowed to import vehicles, machineries, equipments and goods for another project unless the goods of former project are re-exported or duty is paid.
(i) While extending customs facility or partical provision on the commodities imported for consumption in the projects of Nepal run by the foreign loan or grant, the government may not extend the full facility but with 1% customs duty on period of imports.

(5) Only 1% customs duty

(a) Industries or owner of tempo operating by diesel and petrol on import of machinary and tools for manufacturing Safa Tempo registered in the office of Transport Management.
(b) On import of catalic convertor and magnetizer to use in vehicle with the object of reducing vehicle pollution of Sub Heading 8421.39.00.

(6) Partial Exemption on customs duty

(a) Diary industries instead of importing tankers for transportation of milk if imports chesis of Sub Heading 8706.00.80, the chargeable customs duty shall be taken as deposit. If tanker is made within six months and registered in the office of Transport management and the proof of registration is presented in the concerned customs office, according to the Sub Heading 8704.22.91 the duty shall be charged and the balance deposited amount shall be refunded. Thus such imported tankers if sold to other dairy industry for transportation of milk shall be granted customs exemption. Besides transporting of milk if sold or used by the importer itself for other purposes the chargeable customs duty shall be paid as per rules and can be sold or used for other purposes. If not done as above said, and found to be used for other purposes such tankers shall be seized.
(b) Customs duty of 50% is exempted of tariff duty of passenger and goods vehicles manufactured to run only from electricity and battery of chapter 87.04 of all Sub Headings.
(c) To fit the refrigerating system in transporting commodities of Heading 87.06, the required chessis the box to be attached on the chessis and the related machinery and tools if imported, the full duty as per tariff shall be put as deposit and letter after assembling fully registration to be used for transporting commodities under refrigeration and the evidence of registration in Transport Management Office if presented to customs office, the deposited amount shall be refunded by dedutcing 10% customs duty.
(d) The hybrid vehicles (operated by battery and fuel both) of Headings 87.02,87.03 and 87.04 under all Sub headings if imported, there shall be 25% concession on the customs duty of the tariff.
(e) Fishery firms doing business in minimum 1 hectare area if import the vehicles attached with oxygen device of Heading 87.04 of all Sub Heading to transport the living fish and fish seed shall be charged only 10% customs duty.
(f) Only 5% customs duty shall be charged on the import of readymade buses of Sub Heading 8702.10.10 and chesis of Sub Heading 8706.00.10 by cooperative establishments and companies registered with the object of operating as public transport with minimum of 5 buses with 40 or more of sitting capacity. Such imported vehicles from the date of import shall not be sold, transfer or handover of ownership upto 10 years. If it is found of sold, transfer or handover of ownership before 10 years, full prevailing customs duty shall be charged.
(g) Industries registered with the object of manufacturing grease and lubricating oil if import base oil of Sub Heading 2710.19.00, customs duty of only 15% is charged.
(7) Following exemption on customs duty on following commodities on the recommendation of concerning authority of Nepal Government.

(a) Full exemption on customs duty

The vehicles imported by diplomatic missions, projects and other agencies (government and non-government organizations) with exemption of customs duty and such old vehicles have crossed 15 years from its first manufacturing and want to cancel the registration converting it into scrap for not further using it with the approval of Ministry of Finance – Such Vehicles.

(b) Only 1% customs duty

Approved private or community hospitals on the conditions under the rule of clause 12 part (a) through authorized dealers of Nepal shall be privileged to import the number of quantity of ambulance and dead body carrying vehicle.
(i) Private or community hospital with less than 100 beds one ambulance and one dead body carrying vehicle and more than 100 beds hospital two ambulance and one dead body carrying vehicle on the recommendation of Ministry of Health or Association of Private Health Institutions, Nepal. While recommending Ministry of Health or Association of Private Health Institutions Nepal should mention in their recommendation that such institution has not used such privilege before. Thus the ambulance imported on privilege becomes 10 years old or due to accident or due to other reasons not in the condition for use in such case the probe of scrap of ambulance and cancellation of registration should be presented to the customs office to get the privilege of duty on import of similar type of another ambulance.
(ii) The importer should comply the following conditions for duty privilege of sub-clause (b) or sub-part (a) of this sub-clause:
- Ambulance and Dead Body Carrying vehicle should be written in big word in the front and back of vehicle and should have a distant identity while importing ambulance or dead body carrying vehicle at the time of import.
- The ambulance should be fitted with cyrine, emergency light, stretcher and other required equipments.
- There should not be any seat behind the driver in the ambulance and dead body carrying vehicle.
- Such ambulance should be used only for patient service and dead body carrying vehicle only for dead body carrying and not to be used in other purpose.
- Such ambulance and dead body carrying vehicle should run under the traffic pollution standard of the government of Nepal.
- Thus imported ambulance and dead body carrying vehicle should be clearly mentioned in Vehicle Registration Certificate as ambulance or dead body carrying vehicle while doing vehicle registration.
- In ambulance it should be written in big word and should have a distant identity as “Duty Free Privileged by Government of Nepal”.
- The ambulance imported on duty free while carrying patients and in other service should charge the fare in accordance with the prescribed rate by Ministry of Health.
(iii) The condition mentioned in part (2) if found to be violated, such ambulance and dead body carrying vehicle shall be seized and penalty equivalent to the value shall be charged.
(c) Besides government, community and private hospitals, organization, institution, and company and industry registered as per law on the import of the one ambulance and one dead body carrying vehicle on the recommendation of Ministry of Health under the conditions of this sub-clause of part (a) of sub-part (2) while recommending under this sub-part, Ministry of Health and Population should mention of not used such privilege before by that organization.
(d) Government hospital on the recommendation of Ministry of Health while importing ambulance and dead body carrying vehicle.
(e) Whatever iswritten in clause 25 (a) of Industrial Enterprises Act 2049, those industries which are in huge losses due to not in operation by the internal and external factors of the country, Government for the promotion and reforms of those industries can declare sick industries by maintaining the certain standards through publishing in Nepal Rajpatra with the recommendation of nominated agency published in the same, of the import of Industrial machinery and spare parts thereof of chapter 84 if imported by the sick Industry for its rehabilitation.
(f) Foreing mission and donor agencies imported vehicles under diplomatic privilege or duty privilege handing over such vehicle to the project under approved project annual programme to convert into government number plate or vehicle imported in the name of any project with full or partial exemption (except import on record or on bank guarantee) and after completion of project with the approval of Ministry of Finance can be coverted into government number plate and handing over to the government agency or transferring such vehicles to the non-profit community hospital with capacity of 15 or more beds. But this facility shall not be given to those vehicles which cross 10 years of manufacturing date.

(7) Partial exemption on customs duty

(a) Permanently recognized travel agencies, trekking agencies, fafting acencies and star hotesl and resorts shall be granted a 50% rebate in the chargeable customs duty on the import of any two units of luxury coach of Sub Headings 8702.10.10 and 8702.90.10, microbus of Sub Headings 8702.10.30 and 8702.90.30 and minibus of Sub Headings 8702.10.20 and 8702.90.20 on the recommendation of the ministry of Turism. But, transferring of ownership or registering as personal vehicle of the means of transport this imported shall be restricted for a period of 8 years. Moreover, the names of such agency or hotel must be written (painted) out side the vehicles. Full costums duty as per the tariff shall be charged on such vehicles if the ownership is transferred before the expiry of 8 years, and no customs duty shall be granted if the ownership is transferred after the expiry of 8 years. Once this facility is enjoyed, only after expiry of 8 years this facility is given again.
(b) On the recommendation of Ministry of Health to the government hospitals and on the recommendation of Ministry of Health or association of Private Health Institutions, Nepal to the community or private hospital, the following customs duty exemption is given on the import of microbus of Sub Headings 8702.10.20 and 8702.90.30 and minibuses of Sub Headings 8702.10.20 and 8702.90.20.
(i) Minimum 15 beds to 50 beds hospital either microbus or minibus one and hospitals with more than 50 beds either microbus or minibus two, the customs duty of 50% shall be exempted.
(ii) Similar type of privilege is given on the import of another vehicle of the imported vehicle as per part (1) (microbus or minibus) become old and not in use and the certificate of conversion into scrap is presented to the office of customs.
(c) The animal husbandry of having more than 100 milked cows and buffalos for its purpose if imports any transport vehicle of Heading 87.04 on the recommendation of Ministry of Agriculture Development, there shall be 50% concession on customs duty. Such vehicles from the date of import shall not be sold or transfer the ownership till 7 years.
(d) The tea industry for purpose of transporting tea if imports pickup of Sub Heading 8704.21.20 or mini truck of Sub Heading 8704.32.00 on the recommendation of Ministry of Agriculture Development shall have the following number of vehicles with 50% concession on the customs duty for one time with the condition of not selling out or transferring the ownership of such vehicles till 7 years:
i) The tea industry cultivating tea in the area from 10 bigha to 30 bigha - 1 vehicle
ii) The tea industry cultivating tea in the area from 30 bigha and more - 2 vehicles

(8) Miscellaneous

(a) Goods can be imported for any special purpose (except for trading) by foreigner, individual or institution on the condition of returning such goods by minimum period of 3 months on record on the recommendation of concerned Ministry or Embassy, If not recommended, the customs office on the basis of importtance shall take the required duty and fees as deposit and approve the entry of goods on the condition of returning such goods within the stipulated time period of maximum one year. The deposit amount shall not be refunded if the goods are not returned within time.
i) Temporary import of the Heavy equipments, such as excavator, dozer, lader, roller laveller and Crane are allowed with the payment of Rs. 1000/- per day as the duty for maximum 1 year with the condition of returning leter.

Subject to change without prior notice, please check with concern department