(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