Export licenses will not be required for the export of
products other than banned or quantitatively restricted items. In the case of
quantitatively restricted products, arrangement for issuance of export license
will be made in consultations with the private sector. Quantitative restrictions
in the export of such products will gradually be removed through appropriate
taxation measures.
For export promotion, improvements will be made in the existing transit
transport network and its infrastructure. Administrative procedure will also be
made transparent, smooth and efficient.
For the promotion of exports, container service will be introduced and the
existing bonded warehousing system will further expanded and improved.
The duty drawback scheme for the refund of import duty paid on the importation
of raw materials and intermediate goods required for the production of
exportable products will effectively implemented. In this context, duty on
import of raw materials will be fully exempted taking into consideration the
needs, or the bonded warehousing system will be introduced for the storage of
such materials.
Exports will be free from all changes except the service charge. However, the
provisions of para 4.1 above will be applicable in respect of the export of
essential products.
For the promotion of exports, Export Promotion Zone (EPZ) will be established.
No duty will be levied on the raw materials and auxiliary imports used by
industries established in such EPZ. Industrial exporting more than 90 percent of
their production will be granted similar facilities as given to the industries
established in EPZ.
As a preparatory step towards full convertibility of the Nepalese currency in
trade and services, exporters will have to sell in the stipulated percentage the
amount of foreign exchange earned through exports of goods and services to
commercial banks at a rate fixed by the market mechanism and the remaining
balance to Nepal Rastra Bank at an exchange rate fixed by the government. No
license will be required and no quantitative restriction will be imposed on the
imports of the raw materials (except stipulated) required for the
export-oriented and import-substituting industries. But for the import of such
materials, foreign exchange will be made available by the commercial banks at
the rate fixed by market mechanism.
Exporters will be allowed to open a foreign exchange account in the banks for
the purpose of spending certain percentage of one's foreign exchange earnings in
trade promotion activities. Exports Valuation System will gradually be abolished
after the full convertibility of the Nepalese currency.
Quality will be tested from time to in order to improve the standard of
exportable products and necessary information will be made available for this
purpose.
Simple and convenient procedures relating to pre-and post-shipment credits will
be adopted on a priority basis.
Income tax on income from exports will be fully exempted, and income earned from
exports to India on the basis of letter of credit or agreed banking document
will also be free from income tax.
Emphasis will be given on the development of packaging technology to maintain
the quality standard of export products.
Nepalese missions abroad will be geared up towards export promotion activities,
and trade missions will be opened and institutionalized on the basis of
feasibility.
No quantitative restrictions will be imposed on the exportable products carried
by tourists while returning from Nepal.
Export procedures and documentation, thus be formulated, will be short and
simple.
An annual indicative export plan and program on the basis of feasibility will be
formulated with the co-operation of private sector to promote exports.
Necessary information and training relating to technology, marketing and export
procedures required for export promotion will be provided on an
institutionalized basis and arrangements will also be made for the participation
in national and international trade fairs for market promotion.
Regular monitoring will be made to avoid distortion in exports and imports;
strong actions will be taken in case of misuse of facilities.
Export promotion, research and development, and training schemes will be
developed on institutional basis, for developing new exportable products, and
for raising the quality and production of the traditional exportable products.
