WORLD TRADE  
ORGANIZATION   
G/LIC/N/3/NPL/1 
3 October 2012 
 (12-5354) 
Committee on Import Licensing Original:   English 
  
 
REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES
1 
 
Notification under Article 7.3 of the 
Agreement on Import Licensing Procedures 
 
NEPAL 
  
 The following notification, dated 1 October 2012, has been received from the Permanent 
Mission of Nepal. 
 
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Outline of system 
 
1. Import licensing system in Nepal is regulate d by Export Import Control Act, 1957 and Export 
Import Regulation 1978. The licensing system is  governed by the Department of Commerce and 
Supply Management a nd Supply Management. 
 
Purposes and coverage of licensing 
 
2. Government has stipulated some specific items i.e. arms ammunition, tobacco, specified 
communication equipment ozone layer depleting substance (ODS) and poppy seed, furnace oil and petroleum products including LPG for licensing. In order to import arms ammunition and specified 
telecommunication equipment the Department of Commerce and Supply Management issue license 
automatically under the recommendation of Ministry of  Home Affairs and Ministry of Information & 
Communication respectively and no recommendation is required to issue import license for tobacco. 
Import license is also compulsory for those goods  which are imported wit hout banking channel or 
goods imported on donation or free of cost.  3. Yes, the system applies to goods originating and coming from all countries.  
4. Automatic import licensing for these products has been adopted because of the sensitiveness 
of the products for health and security.  5. Licensing system is incorporated in Expor t Import Control Act, 1957. As stipulated in 
Articles 3 and 4 of the Act, Government has authority to suspend or impose licensing requirement to 
any product on import. A notice, related to such actions, is published in Nepal Gazette. 
 
                                                      
1 See G/LIC/3, Annex, for the Questionnaire. G/LIC/N/3/NPL/1 
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  Procedures 
 
6.  For products under restriction:  I. Yes. 
 
II. Recently, there is no quota in any product on im port. Generally quota is fixed on annual basis. 
 
III. Import licence is issued for trading purpose to the firm and company by registered or 
established in accordance with the existing rul es and regulations.  Recently there is no quota 
in any product on import therefore there is not an y provisions in regulation which require that 
licensees must utilize a specified  percentage of licenses issued and must surrender unused 
amounts which are then reallocated to other elig ible importers and allocation of unused quota 
for the next year. The list of importers to whom licenses have been allocated is not published in the Government Gazette. But, such  list is published in notice board of the Department of 
Commerce and Supply Management for concerned parties. 
 IV. Recently, there is no quota in any product on import.  V. Applications for licenses are pro cessed within same day or tomorrow. 
 
 
VI. A licence period is, generally, of six months, and can be extended for another six months.  
Within that time-frame the licen sed goods must be imported. 
 VII. Yes, the Department of Commerce and Suppl y Management considers Licence applications. 
In case of narcotic and intoxicating medicine a nd chemistry thereof; and arms & ammunitions 
and explosive materials, recommendation of th e Ministry of Home Affairs is required. 
Likewise, the recommendation is required from Ministry of Information and Communication 
to import wireless, walkie-talkie, transmitter receiver, limk radio equipment and other similar word recorder, voice recorder, video recorder, data recorder, and radio device except the 
following radio devices: 
 
 (a)  GSM Mobile phone set.   (b)  WLL Telephone set.  (c)  Satellite telephone set to be connected  to a network of Satellite service provider 
having obtained a license of GMPCS from Nepal Telecommunication Authority.  
 
VIII. Because of non -existent of quota there is no such practice. Licenses are issued irrespective 
past performance. 
 IX. Yes, there are not any bilateral quotas or export restraint arrangements.  
X. Yes, export permits from exporting countries are not required. 
 XI. Yes, no licenses are issued on such conditions.  7.(a) There is no such provision in practice that  license must be made one week in advance of 
importation. However, application must be  submitted before payment through banking 
channel or before import. Generally, importe rs must obtain license before importation. 
 (b) There is not such special provision. Licensing procedure is very short and simple. It hardly 
takes more than two working days to obtain it.  G/LIC/N/3/NPL/1 
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  (c) Yes, there are no limitations as to the period of  the year during which application for license 
and/or importation may be made. 
 (d) One administrative body (The Department of Commerce and Supply Management) considers 
license applications. In case of arms a mmunition and telecommunication equipment 
recommendations from Ministry of Home and Ministry of Communication respectively is 
required. In order to import tob acco no recommendation is required. 
 8. Yes, the applicant has a right to appeal. S/ he may request to the Ministry of Commerce and 
Supplies within 35 days. 
 
Eligibility of importers to apply for a licence 
 
9.   Yes, all persons can apply for the license to the items for personal use only. For trading 
purpose, only the firm and company registered or  established in accordance with existing rules & 
regulations and government owned enterprise are eligible to apply for license. 
 
Documentational and other requireme nts for application for a licence 
 
10.  Application format is prescribed accordi ng to Export Import Rules. Following documents are 
required to be included with i.e. application form in prescribed format, registered certificate of the 
firm or company, PAN (Permanent Account Numb er), citizenship certificate, proforma invoice, 
recommendation letter in case of arms ammunition and telecommunication equipment.  11.  Upon actual importation, an importer is required to submit the approved import license. 
 
12. Import license fee depends on value and volume of importing goods from NRs. 5,000 to 
10,000.   
 13. There is no deposit or advance payment require ment associated with th e issuance of license. 
 
Conditions of licensing  
 
14. Generally a license is valid for six months but in some outstanding situation license can be 
issued giving the validity of one year. If the impor tation of the goods could not be done in specified 
period additional six months is extended. License  is nullified even after the goods could not be 
imported during the extended period. 
 
15. Yes, there is no penalty for the non-utilization of a license or a portion of it.  16. Yes, licenses are not transferable between importers.  17. Any person can be made refrained from obtaining license for 3 years on following grounds: 
 
- Unauthorized correction in import licence; - Involved in bribe; - If applicants found guilty in export and import of licensed items without licence; - If presented falsified documents; 
- Involvement in smuggling and foreign deals; 
- Rerouting of the licensed goods without prior approval; - Over invoicing and under invoicing; - Non renewal of the firm.  G/LIC/N/3/NPL/1 
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  Other procedural requirements 
 
18. Yes, there are no other administrative pro cedures, apart from import licensing required prior 
to the importation.  
19. Yes, foreign exchange is automatically pr ovided by the banking authorities for goods to be 
imported.  
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