APPENDIX TABLES Nepal WT/TPR/S/257/Rev.1 
 Page 83 
 
 
Table AIII.1 
Unbound tariff lines under the 2011/12 tariff schedule  
HS Code Description 2011/12 applied MFN rate 
25231000 Cement clinker 2,200 Nr/MT 
25232100 White Portland cement 30% 
25232900 Portland cement (excl. white) 3,550 Nr /MT 
25233000 Aluminous cement 10% 
25239000 Other hydraulic cements, etc. 30% 
27101111 Aviation sprit 2,100 Nr/KL 
27101112 Other spirits (petrol) 15,200 Nr/KL 
27101113 Spirit type jet fuel, other li ght oils and preparation 2,100 Nr/KL 
27101114 Kerosene type jet fuel 2,100 Nr/KL 
27101115 Other kerosene oils 2,000 Nr/KL 
27101116 Other medium oils and preparations 2,100 Nr/KL 
27101117 High speed diesel oils and vaporising oils 2,000 Nr/KL 
27101118 Other diesel oils 440 Nr/KL 
27101911 Fuel oils (furnish oils) 5% 
27101912 Spindle oils 15% 
27101913 Jute batching oils 15% 
27101914 Transformer oils 15% 
27101915 Base oil (use for making mobile) 15% 
27101916 Mineral turpentine oil 15% 
27101917 Oil used for processing rubber 20% 
27101918 White oil (agarbatti raw materials) 15% 
27101919 Other lubricating oils, othe r heavy oils and preparation 30% 
27109100 Waste oils containing polychlorin ated biphenyls(PCBs),PCTs, PBBs 30% 
27109900 Other waste oils 30% 
63090000 Worn clothing and other worn articles 20% 
87031090 Golf cars and similar other car 80% 
87060011 Chassis of tractors under 8701 5% 
87060012 Chassis of minibuses (15 to 25 seat capacity) 30% 
87060013 Chassis of microbuses (11 to 14 seat capacity) 30% 
87060014 Chassis of jeeps, cars and vans 80% 
87060015 Chassis of three-wheeler vehicles (auto rickshaws) 30% 
87060016 Chassis fitted with engi nes of pickup vehicles 30% 
87060017 Chassis of dumpers desi gned for off-highway use 30% 
87060019 Chassis of other buses and trucks 30% 
93011100 Artillery weapons (e.g. guns howit zers & mortars) self-propelled 80% 
93011900 Other artillery weapons (e xcluding self-propelled) 80% 
93012000 Rocket launchers;  flame-throwers;  gren ade launchers;  torpedo tubes;  and similar 
projectors 80% 
93019000 Other 80% 
93020000 Revolvers and pistols, other than those of 93.03 or 93.04 80% 
93031000 Muzzle-loading firearms 80% 
93032000 Other sporting, hunting or target-shooting shotguns 80% 
93033000 Other sporting, hunting or target -shooting rifles (excl. shotguns) 80% 
93039000 Firearms that operate by firing an explosive charge, nes. 80% 
93040000 Other arms (e.g. spring, air or  gas guns and pistols, truncheons) 80% 
93051000 Parts and accessories of revolvers or pistols (heading 93.01 to 93.04) 80% 
93052100 Shotgun barrels 80% 
93052900 Parts and accessories, nes, of shotguns or rifles of 93.03 80% 
93059100 Parts and accessories of military weapons of heading 93.01 80% 
Table AIII.1 (cont'd) WT/TPR/S/257/Rev.1 Trade Policy Review 
Page 84 
  
HS Code Description 2011/12 applied MFN rate 
93059900 Other parts and accessories of heading 93.01 to 93.04, nes. 80% 
93062100 Cartridges for shotguns 80% 
93062900 Parts of shotgun cartridges;  air gun pellets 80% 
93063000 Other cartridges and parts thereof (excluding shotgun) 80% 
93069000 Bombs, grenades, torpedoes, mines, mi ssiles and similar munitions, etc. nes. 80% 
93070000 Swords, cutlasses, bayonets, lances, and similar arms and parts thereof 80% 
 
Source:  WTO Secretariat, based on WTO Consolid ated Tariff Schedule (CTS) database. 
 Nepal WT/TPR/S/257/Rev.1 
 Page 85 
 
 
Table AIII.2 
Customs duty on goods exported from Nepal 
 
Heading Description of article Export duty 
(General) 
  Dried leguminous vegetables, shelled, whether or not skinned or split  
1. 0713.10.00  Peas (Pisum sativum)  Nr 1/kg  
2. 0713.20.00  Chickpeas (garbanzos)  Nr 1/kg  
3. 0713.40.00  Lentils  Nr 1/kg  
  Wheat and meslin  
4. 1001.10.00  Durum wheat  Nr 1/kg  
5. 1001.90.00 Other Nr 1/kg 
6. 1002.00.00 Rye Nr 1/kg 
  Maize (corn)   
7. 1005.10.00 Seed Nr 1/kg 
8. 1005.90.00 Other Nr 1/kg 
  Rice   
9. 1006.10.00 Rice in the husk (paddy or rough) Nr 1/kg 
10. 1006.20.00 Husked (brown) rice Nr 1/kg 
11. 1006.30.00 Semi-milled or wholly-milled rice,  whether or not polished or glazed Nr 1/kg 
12. 1006.40.00 Broken rice Nr 1/kg 
  Buckwheat, millet and cana ry seed;  other cereals   
13. 1008.10.00 Buckwheat Nr 1/kg 
14. 1008.20.00 Millet Nr 1/kg 
15. 1008.30.00 Canary seed Nr 1/kg 
16. 1008.90.00 Other cereals Nr 1/kg 
17. 1201.00.00 Soya beans, whether or not broken Nr 1/kg 
18. 1204.00.00 Linseed, whether or not broken Nr 1/kg 
  Plants and parts of plants (including seed s and fruits) of a kind used primarily in 
perfumery, in pharmacy or for insecticidal, fungicidal or similar purposes, fresh or dried, whether or not cut, crushed or powdered   
19. 1211.20.00 Ginseng roots Nr 1/kg 
20. 1211.30.00 Coca leaf Nr 1/kg 
21. 1211.40.00 Poppy straw Nr 1/kg 
  Other  
22. 1211.90.10 Yarchagumba Nr 1,000/kg 
23. 1211.90.90 Other  Nr 1/kg 
  Lac;  natural gums, resins, gumresin s and oleoresins (for example, balsams )  
24. 1301.20.00 Gum Arabic Nr 2/kg 
25. 1301.90.00 Other  Nr 2/kg 
  Vegetable saps and extracts;  pectic s ubstances, pectinates and pectates;  agar-
agar and other mucilages and thickeners, whether or not modified, derived from 
vegetable products  Vegetable saps and extracts:   
26. 1302.11.00 Of Opium Nr 1/kg 
27. 1302.12.00 Of liquorice Nr 1/kg 
28. 1302.13.00 Of hops Nr 1/kg 
29. 1302.19.00 Other Nr 1/kg 
30. 1302.20.00 Pectic substances, pectinates and pectates  Mucilages and thickeners, whether or not 
modified, derived from vegetable products  Nr 1/kg 
31. 1302.31.00 Agar-agar Nr 1/kg 
32. 1302.32.00 Mucilages and thickene rs, whether or not modified, deri ved from locust beans, locust 
bean seeds or guar seeds Nr 1/kg 
33. 1302.39.00 Other Nr 1/kg 
Table AIII.2 (cont'd)  WT/TPR/S/257/Rev.1 Trade Policy Review 
Page 86 
  
 
Heading Description of article Export duty 
(General) 
  Vegetable products not elsewhere specified or included  Other  
34. 1404.90.10 Semi-processed Catechu of acacia (liquid Katha) Nr 25/kg 
35. 1404.90.20 Catechu of  acacia (Katha) Nr 5/kg 
36. 1404.90.30 Rudrakshya Nr 2/kg 
37. 1404.90.90 Other Nr 5/kg 
  Bran, sharps and other residues, whether or not in the form of pellets, derived 
from the sifting, milling or other working of cereals or of leguminous plants   
38. 2302.10.00 Of maize (corn) Nr 0.50/kg 
39. 2302.30.00 Of wheat Nr 0.50/kg 
40. 2302.40.00 Of other cereals Nr 0.50/kg 
41. 2302.50.00 Of leguminous plants Nr 0.50/kg 
  Residues of starch manufacture and similar residues, beet-pulp, bagasse and 
other waste of sugar manufacture, brewin g or distilling dregs and waste, whether 
or not in the form of pellets   
42. 2303.10.00 Residues of starch manuf acture and similar residues Nr 0.50/kg 
43. 2303.20.00 Beet-pulp, bagasse and othe r waste of sugar manufacture Nr 0.50/kg 
44. 2303.30.00 Brewing or distilli ng dregs and waste Nr 0.50/kg 
45. 2304.00.00 Oil-cake and other solid residues whet her or not ground or in the form of pellets, 
resulting from the extr action of soybean oil Nr 0.50/kg 
46. 2305.00.00 Oil-cake and other solid residues, wh ether or not ground or in the form of pellets, 
resulting from the extraction of ground-nut oil Nr 0.50/kg 
  Oil-cake and other solid residues, whether or not ground or in the form of pellets, 
resulting from the extraction of vegetable fats or oils, other than those of heading 23.04 or 23.05   
47. 2306.10.00 Of cotton seeds Nr 1/kg 
48. 2306.20.00 Of linseed Nr 1/kg 
49. 2306.30.00 Of sunflower seeds Nr 0.50/kg 
  Of rape or colza seeds:   
50. 2306.41.00 Of low erucic acid rape or colza seeds  Nr 0.50/kg 
51. 2306.49.00 Other  Nr 1/kg 
52. 2306.50.00 Of coconut or copra  Nr 1/kg 
53. 2306.60.00 Of palm nuts or kernels  Nr 1/kg 
54. 2306.90.00 Other  Nr 1/kg 
  Natural sands of all kinds, whether or not coloured, other than metal- bearing 
sands of Chapter 26   
55. 2505.10.00 Silica sand and quartz sands  Nr 400/metre3  
56. 2505.90.00 Other sand  Nr 400/metre3  
57. 2514.00.00 Slate, whether or not roughly trimmed or me rely cut, by sawing or otherwise, into 
blocks or slabs of a rectangular (including square) shape  Nr 400/metre3  
  Granite, porphyry, basalt , sandstone and other monumental or building stone, 
whether or not roughly trimmed or merely cut, by sawing or otherwise, into 
blocks or slabs of a rectangular (including square) shape   
Granite:   
58. 2516.20.10 Crushed or uncrushed stones and pebbles up to the size 2.5 inches  Nr 200/metre3 
59. 2516.20.20 Crushed or uncrushed stones of a size more than 2.5 inches  Nr 400/metre3  
60. 2516.20.30 Mixture of crushed or uncrushed stones and sand (Chharra) Nr 400/metre3  
Table AIII.2 (cont'd)  Nepal WT/TPR/S/257/Rev.1 
 Page 87 
 
 
 
Heading Description of article Export duty 
(General) 
  Pebbles, gravel, broken or crushed stone, of a kind commonly used for concrete 
aggregates, for road metalling or for railw ay or other ballast, shingle and flint, 
whether or not heat-treated; macadam of slag, dross or similar industrial waste, 
whether or not incorporating the materials cited in the first part of the heading 
tarred macadam; granules, chippings and powder, of stones of heading 25.15 or 
25.16, whether or not heat-treated   
-  Pebbles, gravel, broken or crushed stone , of a kind commonly used for concrete 
aggregates, for road metalling or for railway or  other ballast, shingle and flint, whether 
or not heat-treated :  
61. 2517.10.10 Crushed or uncrushed aggregate and pebbles up to the size 2.5 inches Nr 200/metre3 
62. 2517.10.20 Crushed or uncrushed stones of a size more than 2.5 inches Nr 400/metre3 
63. 2517.10.30 Mixture of crushed or uncrushed stones and sand (Chharra)  
-  Macadam of slag, dross or similar industr ial waste, whether or not incorporating the 
materials cited in Sub-heading 2517.10 Nr 400/metre3 
64. 2517.20.10 Crushed or uncrushed aggregate and pebbles up to the size 2.5 inches Nr 200/metre3 
65. 2517.20.20 Crushed or uncrushed stones of size more than 2.5 inches 
-  Granules, Chkippings and power, of st ones of Heading 25.15 or 25.16, whether or 
not heat-treated: Nr 400/metre3 
66. 2517.49.10 Dust of stones Nr 200/metre3 
67. 2517.49.90 Other Nr 200/metre3 
  Natural magnesium carbonate (magnetite); fused magnesia; dead-burned 
(sintered) magnesia, whether or not cont aining small quantities of other oxides 
added before sintering; other magnesium oxide, whether or not pure   
68. 2519.10.00 Natural magnesi um carbonate (magnetite) Nr 200/metre3 
69. 2519.90.00 Other Nr 200/metre3 
  Natural steatite, whether or not roughly trimmed or merely cut, by sawing or 
otherwise, into blocks or slabs of a rectangular (including square) shape; talc   
70. 2526.10.00 Not crushed, not powdered Nr 0.50/kg 
  Colouring matter of vegetable or animal origin (including dyeing extracts but 
excluding animal black), whether or not chemically defined; preparations based 
on colouring matter of vegeta ble or animal origin as specified in Note 3 to this 
Chapter   
71. 3203.00.10 Cutch of acacia (Katcha)  Nr 3/kg 
72. 3203.00.90 Other  Nr 3/kg 
  Fuel wood, in logs, in billets, in twigs, in  faggots or in similar forms; wood in chips 
or particles; sawdust and wood waste a nd scrap, whether or not agglomerated in 
logs, briquettes, pellets or similar forms  
73. 4401.10.00 Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms 
-  Wood in chips or particles 
Forest seeds 200% 
74. 4401.21.00 Coniferous  200% 
75. 4401.22.00 Non-coniferous 200% 
76. 4401.30.00a Sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, 
pellets or similar forms 200% 
  Wood in the rough, whether or not stri pped of bark or sapwood, or roughly 
squared   
77. 4403.10.00 Treated with paint, stains , creosote or other preservatives 200% 
78. 4403.20.00 Other coniferous  200% 
79. 4403.41.00 Dark Red Meranti, Light  Red Meranti and Meranti Bakau 200% 
80. 4403.49.00 Other 200% 
  -  Other:  
81. 4403.91.00 Of oak (Quercus spp.) 200% 
Table AIII.2 (cont'd)  WT/TPR/S/257/Rev.1 Trade Policy Review 
Page 88 
  
 
Heading Description of article Export duty 
(General) 
82. 4403.92.00 Of beech (Fagus spp.) 200% 
83. 4403.99.00 Other 200% 
  Hoopwood;  split poles;  piles, pickets and stakes of wood, pointed but not sawn 
lengthwise; wooden sticks, roughly trimmed but not turned, bent or otherwise 
worked, suitable for the manufacture of walking-sticks, umbrellas, tool handles or 
the like;  chipwood and the like   
84. 4404.10.00 Coniferous (wild) 
Coniferous (planted)  200% 
75% 
85. 4404.20.00 Non-coniferous (wild) 
Non-coniferous (planted)  200% 
125% 
86. 4405.00.00 Wood wool; wood flour 200% 
  Railway or tramway sleepers (cross-ties) of wood     
87. 4406.10.00 Not impregnated  200% 
88. 4406.90.00 Other  200% 
  Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, 
sanded or end-jointed, of a thickness exceeding 6 mm  
89. 4407.10.00 Coniferous (wild) 
Coniferous (planted) 200% 
50% 
90. 4407.21.00 Mahogany (Swietenia Spp.)  200% 
91. 4407.22.00 Virola, Imbuia and Balsa 200% 
92. 4407.25.00 Dark Red Meranti, Light  Red Meranti and Meranti Bakau 200% 
93. 4407.26.00 White Lauan,white Meranti, Wh ite Seraya, Yellow Meranti and Alan 200% 
94. 4407.29.00 Other 200% 
  Other  
95. 4407.91.00 Of oak 200% 
96. 4407.92.00 Of beech 200% 
97. 4407.99.00 Other 
Non-coniferous (planted) 200% 
100% 
  Sheets for veneering (including those obta ined by slicing laminated wood), for 
plywood or other similar laminated wood and other wood, sawn lengthwise, sliced 
or peeled, whether or not planed, sanded, spliced or end-jointed, of a thickness 
not exceeding 6 mm – all species  70% 
98. 4408.10.00 Coniferous, of tropical wood specified  in Sub-heading Note 1 to this Chapter 70% 
99. 4408.31.00 Dark Red Meranti, Light  Red Meranti and Meranti Bakau 70% 
100. 4408.39.00 Other 70% 
101. 4408.90.00 Other 70% 
a Only 10% customs duty to be charged on exports of chips, ma de of pine (salla) of subhead ing 4401.30.00 and useable for Dhup 
or Hawan, by the industry, with the pe rmission of the District Forest Office. 
Source:  Ministry of Finance online information.  View ed at:  http://mof.gov.np/publication/adhyadesh/pdf/ 
Arthik_2067.pdf, pp. 208-217;  and inform ation provided by the authorities. 
 Nepal WT/TPR/S/257/Rev.1 
 Page 89 
 
 
Table AIII.3 
Exemptions from VAT 
Item Descriptions 
1.  Basic agricultural 
products (a) Paddy, rice (heading 10.06), wheat (heading10. 01 and 10.02), maize (heading 10.05), barley 
(heading 10.03), millet (sub head ing 10.08.20), buckwheat  (sub heading 10.08.10), pulses (heading 
07.13), flour and rye flour  (heading 11.01, 11.02), grains (headi ng 11.04), paddy flakes (bitten rice) 
(heading 19.04), peas, beans, chickpeas, and kidney peas (heading 07.08 and 07.13) and similar basic 
unprocessed food materials and their extracts 
 (b) Green and fresh vegetables (from heading 07.01 to 07.11)(except (subheading 07.03.20), fresh 
fruits (from headings and subheadings 08.01.19, 08.03, 08.04.30, 08.04.40, 08.04.50, 08.05, 08.06.10, 
08.07 to 08.10), fresh flowers (subheading 06.03.10), t uberous roots, corms, fr uits, and vegetables and 
fresh and unprocessed agro-products (except those to be supplied to hotels, restaurants, bars, guest 
houses, cafeteria and othe r similar organizations) 
 (c) Unprocessed cash crops/cereals (such as s ugarcane (subheading 12.12.99), cotton (heading 52.01), 
cardamom (subheading 09.08.30), ginger and saffron (subheading 09.10.10), flax (heading 53.01 and 
subheading 53.03.10), unprocessed tobacco, tea leaf  sold by farmers (subheading 09.02.10 and 
09.02.20), tea chest (subheading 44.15.10), coffee (subheading 09.01.11 and 09.01.12), soybean 
(heading 12.01), ground-nuts (heading 12.02), turmeric (curcuma) (subheading 09.10.30), oilcake and 
other solid residues (headings 23.04 and 23.05) 
 (d) Herbs (including their extracts) 
2.  Goods of basic needs (a) Piped water, including water supplied by tankers
 (b) Fuel wood (subheading 44.01.10) 
 (c) Coal (heading 44.02) 
 (d) Salt (subheading 25.01.00.90) 
3.  Live animals and animal 
products (a) He-goats (subheading 01.04.20), sheep and m ountain goats (subheading 01.04.10), yak and buffalos 
(heading 01.02), boar and pigs (heading 01.03), rabb it (sub heading 01.06.19) and their unprocessed 
raw edible food items (from headings 02.01 to 02.04, heading 02.06) 
 (b) Cows and she buffalos (01.02), she goats (01. 04.20), and their fresh milk (04.01), (including 
pasteurized), curd (04.06.100), bees (01.06.90), bee hives (44.15.100), bee-keeping machinery, 
including germination plant, metal barrel, bee brush,  base roller, gear pump and wheel plate (heading 
84.36), and bee-harvesting or threshing machinery (heading 84.33) 
 (c) Ducks, hens, cocks, turkeys' and other si milar birds (heading 01.05), their fresh meat and 
unprocessed raw items (heading 02.07) and eggs (heading 04.07) 
 (d) Fresh or dried fish (other than packed) (heading 03.01) 
4.  Agricultural inputs (a) Crops, grasses, flowers or live trees and other plants, bulbs, tubers, tube rous roots and bulbs and 
roots used as seeds (headings 06.01, 06.02, 06.04, and 12.09) 
 (b) Manure, fertilizer, and so il conditioners (Chapter 31) 
 (c) Hand tools, spades, shovels, mattocks, picks, hoes, forks and rakes, axes, bill hooks and similar 
hewing tools, secateurs of any kind, scythes, sickle s, hay knives, other than hand saws, hedge shears, 
timber wedges, ploughshare and other tools of a kind used in agriculture (heading 82.01) 
 (d) Insecticides, rodenticides, fungi cides, herbicides and de-ratting drugs  as mentioned in Chapter 38 of 
Customs Tariff used only for crops (subheadings 38.08.91.90, 38.08.92, 38.08.93, 38.08.99) 
 (e) Tractors (heading 87.01), cultivators (subhead ing 84.32.29), tantalum  (subheading 84.32.21), 
levelers (subheading 84.32.80), harvesting or threshing machines (heading 84.33), threshers 
(subheading 84.33.52), fishing nets (subheading 56.08.11), ready-made cages for aquaculture, fish 
incubators, pumping sets with e ngines from two to eight horse pow er and up to 30-metre hose pipe 
accompanied with the sets, used in irrigation works 
 (f) Raw materials of feed supplements falling under Chapters 23, 28 and 29 of the Customs Tariff, 
animal feeds and feed supplements falling under Chapte r 23 of the Customs Tariff, and lime stone dust, 
bone dust, and fish dust falling in Chapter 25 
 (g) Special utensils for feeding po ultry feed except normal or genera l utensils, and special kinds of 
utensils for feedin g water to poultry 
5.  Medicine, medical and 
similar health services (a) Health services (oth er than health services provided by the institutions registered with the 
value-added tax) 
 (b) Human blood and human blood items and v accines (heading 30.020), plastic blood bags, 
transfusion sets, testing kits, and various tools, e quipment and chemicals required for building reagents 
and blood test reagents that are imported by th e Nepal Red Cross Society and required for blood 
transfusion service 
 (c) Human or animal organs or tissue for medical research (heading 30.01) 
Table AIII.3 (cont'd)  WT/TPR/S/257/Rev.1 Trade Policy Review 
Page 90 
  
Item Descriptions 
 (d) Medicaments for the treatment of livestock  and human beings, and family planning means 
(headings 30.03, 30.04 (except Chwanpras  subheading 40.14.10) 
 (e) Pacemakers used in the treatment of heart dis eases (90.21.50), equipment required for the treatment 
of kidney disease, bath concentrate solid or liqui d used in dialysis (38.24.90), goods made for, and 
suitable only for the use of, infirm and disabled persons, (including scooter s) 987.13.10 and 87.14.20) 
 (f) X-ray film (subheading 37.02.10), oxygen to be  used for treatment (subheading 28.04.40), and 
bandages (heading 30.05) 
 (g) Raw materials for drug industri es: metal salts, oxides and hydroxide s used by drug industries and in 
the production of IOL, falling under Chapter 28 of the Cu stoms tariff, as well as raw materials of drugs 
(active ingredients of drugs) and raw materials used by drug industries in the production of drugs or in 
the production of IOL, and packing materials a nd equipment falling under headings 90.18 and 90.27 
used in the research and development of indus tries and hospitals on the recommendation of the 
Department of Drug Management 
6.  Education (a) Research related activities in schools or universities 
 (b) Vocational or professional training or refresher training provided by institu tions fully owned by the 
Government of Nepal 
 (c) Educational services provi ded by schools and universities 
7.  Books, newspapers and 
printed materials (a) Books, calendars, newspapers, magazines (h eadings 49.01, 49.02, 49.04) and printing and 
publication thereof 
 (b) Newsprint (heading 48.01) 
8.  Artistic and cultural 
goods and services, 
carving services (a) Painting, handicrafts, carvings and othe r similar handicrafts and related services 
 (b) Cultural programmes 
 (c) Admission fees to libraries, museums, art museum s, zoos and botanical ga rdens, and national parks 
9.  Passengers and goods 
transportation services Air transport, passenger transportation (except cabal car) and goods carrier service (except 
transportation related to supply) and car go services for the purposes of exports 
10.  Personal or professional 
service Personal services rendered by artists, sportspersons , authors, writers, designers, translators and 
interpreters institutionally or individually, and services of supplying human resources to foreign 
countries 
11. Other goods or services 
 Agriculture products storage services provided by cold  storage, postal services (only those provided by 
the Government of Nepal), excise duty stamps  and passports (heading 49.07), cash machines 
(subheading 84.70.90), financial services, life insuran ce services and reinsurance services, bank notes, 
coins and cheque books, electricity supply, ra w wool (heading 51.01), battery operated tempo 
(subheading 87.03.21.10) and their chassis (subhead ing 87.06.00.15), bio-gas, solar power and wind 
power operated power generation plants and th eir equipment and tubular batteries, on the 
recommendation of the Alternative Energy Promo tion Centre, aircraft and helicopters (heading 88.02 
(except subheading 88.02.60)) and their engines (subheading 84.09.10), gear boxes (subheading 
88.05.10), fire brigades (subheading 87.05.30), am bulances and corpse carrying vehicles (heading 
87.02 and 87.03), jute batching oil (subheading 27.10. 19.13) and jute products (headings 53.06, 53.07 
and 53.10), mills, machinery and equipment, moulding ke ys (except spare parts) other than those that 
can be used in household, attracting up to 5% cust oms duty as falling under Chapter 84 of the Customs 
tariff, woollen carpet and woolle n carpet weaving, dying, washi ng, and knitting, 100% cotton sari, 
Lungi , Dhoti (for both men and women), Petani, Gamcha and cotton yarn (headings 52.05 and 52.07), 
woollen yarn to be used in hand knitting sweater s (except artificial and acrylic) domestically, 
machinery and equipment required for maintaini ng peace and security, crowd control materials, 
equipment and other goods required for the investigati on of crimes, and communication materials to be 
used by personnel of the Nepal Army, Armed Polic e Force and Nepal Police, on the recommendation 
of the Ministry of Communications, etc. 
12. Land and buildings Purchase, sale, and rental of land and buildings (e xcept the services provide d by such entities carrying 
on business such as hotels and guest houses) 
13. Betting, casinos and 
lotteries Activities relating to facilities provided for the or ganization of bets or gambling, and lottery 
 
Source:  Ministry of Finance online information.  Viewed at :  www.mof.gov.np;  and Law Co mmission online information.  
Viewed at:  www.la wcommission.gov.np. Nepal WT/TPR/S/257/Rev.1 
 Page 91 
 
 
Table AIII.4 
Goods and services subj ect to zero VAT rate 
No. Descriptions 
1. Goods exported from Nepal:  If it is proved that goods are supplied as follows:  
 (a) Goods exported outside Nepal, or 
(b) Goods shipped for use as stores on an internati onal flight whose destination is outside Nepal, or 
(c) Goods put on board an international flight whose destinati on is outside Nepal for retail sale or supply or consumption  
2. Services to be supplied to persons outside Nepal 
 (a) A supply of services by a person residing in Nepal to a person outside Nepal, who has no business transaction, business 
     representative or lega lly recognized agent in Nepal 
(b) A supply of goods or services by a pers on who is residing and is registered in Ne pal to a person who is residing outside Ne pal 
3. Goods or services imported by a pers on or mission enjoying diplomatic facility a nd a person serving in a diplomatic mission 
enjoying tariff facility, on the recommendation of the Mi nistry of Foreign Affair s, Government of Nepal  
4. If any previous treaty or agreement provides for sales tax exemption on imports, and local purchase is from registered taxpa yers, on 
the recommendation of the concerned project, zero rate VAT will be applied to such s upplies, so long as such treaty or agreemen t is 
in effect  
5. Raw materials to be sold to and goods manufactured by any i ndustries established pursuant to the laws in force and operated in the 
special economic zone  
6. If, on the recommendation of the Alterna tive Energy Promotion Centre, batteries used  in equipment generating energy from sol ar 
power are produced and supplied by any domestic industry, zero rate  VAT will be applied to that industry on that transaction on  the 
recommendation of the Alternative Energy Pr omotion Centre and in accordance with the procedures specified by the Electricity 
Development Department  
7. If any machinery, equipment, tools and their spare parts, penstock pipes or iron sheets required for hydro-power projects ar e 
produced and supplied by any domestic industr y, zero rate VAT will be applied to that industry on that transaction, on the 
recommendation of the Alternative Energy Promotion Centre, where a project that is operated with the approval of the Centre, an d 
on the recommendation of the Electricity Development Department , for other projects, and in accordance with the procedures 
specified by the Department  
8. If paintings, handicrafts, carvings and other similar handicrafts produced by a co ttage and small-scale industry within Nepa l are 
exported through an approved export trading house of Nepal, the va lue-added tax paid on the raw ma terials used in the manufactu re 
of such goods shall be refunded afte r the procedures specified by the In land Revenue Department are fulfilled  
9. The value-added tax paid on the import or local purchase of scooters used by pers ons with disabilities shall, if such scoote rs are 
registered in their name in the Office of  Transport Management, be refunded on the recommendation of the Women, Children and 
Social Welfare or the Chief District Officer of the district concerned, and in accordance with  procedures specified by the 
Department of Inland Revenue  
 
Source:  Ministry of Finance online information.  Viewed at :  www.mof.gov.np;  and Law Co mmission online information.  
Viewed at:  www.la wcommission.gov.np. 
 
  WT/TPR/S/257/Rev.1 Trade Policy Review 
Page 92 
  
Table AIII.5 
Excise duties, 2011 
No. Heading/subheading 
No. Description of product/good or  service Rate of excise duty 
1 1703.10.00 and 
1703.90.00 Khudo (molasses) Nr 40/quintal 
2. 1703.11.90  Sakkhhar (Gud), black, Sakhhar, Raskat from Khandsari (only on 
import) Nr 72/quintal  
3. Under 3923  Plastic packing materials  5%  
 3920, 3921  Plastic seats  5%  
 3926.90.90  Other plastic materials  5%  
 6305.33.00  Plastic packing materials  5%  
4.  Fruit juices  
 2009.19.00, 2009.11.00 
and 2009.12.00 (a) Orange juice Nr 2/litre 
 2009.29.00 and 
2009.21.00 (b) Grape fruit juice Nr 2/litre 
 2009.39.00 and 
2009.31.00 (c) Any other citrus fruit Nr 2/litre 
 2009.49.00 and 
2009.41.00 (d) Pineapple juice Nr 2/litre 
 2009.69.00, 2009.50.00 
and 2009.61.00 (e) Tomato juice, grape juice including grape must Nr 2/litre 
 2009.79.00 and 
2009.71.00 (f) Apple juice Nr 2/litre 
 2009.80.00 (g) Juice of any other si ngle fruit or vegetable Nr 2/litre 
 2009.90.00 (h) Mixture of juices Nr 2/litre 
5. 2106.90.20 Pan Masala and similar other goods with or  without nicotine containing 
lime Nr 250/kg 
6. 1404.90.00 Kattha  Nr 115/kg 
 1404.90.00  Kattha juice Nr 10/kg 
7. 2202.90.00 All kinds of non-al coholic beverages Nr 2.50/litre 
8. 2203.00.00 Beer Nr 72/litre 
 2203.00.00  Chyang  Nr 20/litre 
9. 2204.29.00 Wine made in the country (containi ng not more than 12% alcohol, made 
from Chutro , apple or Aishalu ) or domestic cider Nr 55/litre 
 2204.10.00, 2205.90.00, 
2204.21.00, 2204.29.00, 
2204.30.00 and 
2205.10.00 Other beverages than wine and beer  containing up to 12% alcohol (on 
import) Nr 167/litre 
 2204.10.00, 2205.90.00, 
2204.21.00, 
2204.29.00, 2204.30.00 
and 2205.10.00 Wine containing not more th an 12% alcohol Nr 167/litre 
10. 2204.10.00, 2205.90.00, 
2204.21.00, 
2204.29.00, 2204.30.00, 2205.10.00 and 2206.00.90 Wine containing 12-17%  alcohol Nr 167/litre 
 2204.10.00, 2205.90.00, 
2204.21.00, 
2204.29.00, 2204.30.00, 2205.10.00 and 2206.00.90  Wine containing more than 17% al cohol, herb-mixed liquors, cocktail 
(alcoholic/non-alcoholic/non-alcoholic  mixtures) and other fermented 
liquors Nr 189/litre 
11. 2206.00.90 and 
2204.10.90 Sampan, sherry, mead, pe rry, cider Nr 189/litre 
12. 2207.20.00 Denatured spirit (cont aining 80-99% alcohol) Nr 10/litre 
13. 3814.00.00 Thinner, solvent Nr 10/litre 
14. 2207.10.00 Anhydrous etha nol (containing more than 99% alcohol) Nr 6/litre 
Table AIII.5 (cont'd)  Nepal WT/TPR/S/257/Rev.1 
 Page 93 
 
 
No. Heading/subheading 
No. Description of product/good or  service Rate of excise duty 
15.  All kinds of alcoholic fluids used as raw materials of liquors containing 57.38% to 80% alcohol 
by volume 
 2208.20.10 (a) Wine and raw ma terials of brandy Nr 108/litre 
 2208.30.10 (b) Raw materials of whisky Nr 108/litre 
 2208.40.10 (c) Raw materials of rum and tafia Nr 108/litre 
 2208.50.10 (d) Raw materials of gin and geneva Nr 108/litre 
 2208.60.10 (e) Raw materials of vodka Nr 108/litre 
 2208.70.10 (f) Raw materials of liqueurs and cordials Nr 108/litre 
 2208.90.10 (g) Raw materials of othe r liquors (including spirit) Nr 108/litre 
16. 2207.10.10 Rectified spirits used as raw materials of liquors containing more than 
80% alcohol by volume Nr 33/litre 
 2207.10.10 Extra neutral alcohol Nr 44/litre 
17.  Liquors  
 2208.20.90 (a) Wine and brandy  
 2208.20.90  (1) With 25 U.P. strength (containing 42.08% alcohol content) Nr 385/litre or 
Nr 513/LP litre 
 2208.20.90 (2) With 30 U.P. strength (containing 39.94% alcohol content) Nr 360.50/litre or 
Nr 513/LP litre 
  (b) Whisky  
 2208.30.90 (1) With 25 U.P. strength (containing 42.8% alcohol content)  Nr 385/litre or 
Nr 513/LP litre 
 2208.30.90 (2) With 30 U.P. strength (containing 39.94% alcohol content) Nr 360.50/litre or 
Nr 513/LP litre 
  (c) Rum and tafia   
 2208.40.90 (1) With 25 U.P. strength (containing 42.08% alcohol content) Nr 385/litre or 
Nr 513/LP litre 
 2208.40.90 (2) With 30 U.P. strength (containing 39.94% alcohol content) Nr 360.50/litre or 
Nr 513/LP litre 
  (d) Gin and geneva  
 2208.50.90 (1) With 25 U.P. strength (containing 42.08% alcohol content) Nr 385/litre or 
Nr 513/LP litre 
 2208.50.90 (2) With 30 U.P. strength (containing 39.94% alcohol content) Nr 360.50/litre or 
Nr 513/LP litre 
  (e) Vodka  
 2208.60.90 (1) With 25 U.P. strength (containing 42.8% alcohol content) Nr 385/litre or 
Nr 513/LP litre 
 2208.60.90 (2) With 30 U.P. strength (containing 39.94% alcohol content) Nr 360.50/litre or 
Nr 513/LP litre 
  (f) Liquors and cordials  
 2208.70.90 (1) With 25 U.P. strength (containing 42.8% alcohol content) Nr 385/litre or 
Nr 513/LP litre 
 2208.70.90 (2) With 30 U.P. strength (containing 39.94% alcohol content) Nr 360.50/litre or 
Nr 513/LP litre 
  (g) Other liquors  
 2208.90.90 (1) With 15 U.P. strength (containing 48.5% alcohol content) Nr 517/litre or 
Nr 608/LP litre 
 2208.90.90 (2) With 25 U.P. strength (containing 42.8% alcohol content) Nr 385/litre or 
Nr 513/LP litre 
 2208.90.90 (3) With 30 U.P. strength (containing 39.94% alcohol content) Nr 360.50/litre or 
Nr 513/LP litre 
 2208.90.90 (4) With 40 U.P. strength (containing 34.23% alcohol content) Nr 182/litre or 
Nr 302/LP litre 
 2208.90.90 (5) With 50 U.P. strength (containing 28.53% alcohol content) Nr 64/litre or  
Nr 127/LP litre 
Table AIII.5 (cont'd)  WT/TPR/S/257/Rev.1 Trade Policy Review 
Page 94 
  
No. Heading/subheading 
No. Description of product/good or  service Rate of excise duty 
 2208.90.90 (6) With 70 U.P. strength (containing 17.12% alcohol content) Nr 17/litre or  
Nr 56/LP litre 
18. 2401 Import of raw tobacco not packed (other  than that used as raw materials 
by industries) Nr 55/kg 
 2403.91.00 Packed raw chewable tobacco containing lime Nr 145/kg 
 2403.91.00 All kinds of jarda and khaini made from tobacco  Nr 220/kg 
 2403.99.00 Tooth cleaning material containing tobacco dust Nr 210/kg 
 2403.10.90 Prepared bidi Nr 55/1,000 pieces 
 2403.10.10 Pipe tobacco Nr 625/kg 
19. 2402.10.00 and 
2402.90.00 All kinds of cigars Nr 6/stick 
20. 7213 and 6214 
(including sub-heading 
7214.99.10) Iron rods Nr 1,000/tonne 
21. 2516.90.00, 2516.22.00, 
2515.12.00, 2515.20.00, 
2516.12.00, and from 6802.21.00.to 6802.99.00 Marble 5%  
 6908 Glaze tiles 5%  
22. 1902 Noodles, macaroni, pasta Nr 7.50/kg 
 2106.90.10 Junk foods ( Kurkure , Kurmure , cheeseballs, pastry, etc.) Nr 7.50/kg 
23. Chapter 16 Preparations of meat, fish (canned) 5%  
 2309.10.00 Dog and cat food 5%  
24.  Cigarettes (all kinds of cigarettes made from tobacco)  
  (1) Up to 70 mm length  
 2402.20.00 (a) With filter Nr 234/1,000 pieces 
 2402.20.00 (b) Without filter Nr 494/1,000 pieces 
 2402.20.00 (2) More than 70 mm up to 75 mm  length (with filter) Nr 633/1,000 pieces 
 2402.20.00 (3) More than 75 mm up to 85 mm  length (with filter) Nr 811/1,000 pieces 
 2402.20.00 (4) More than 85 mm length (with filter) Nr 1,055/1,000 pieces 
25.  Cement  
 2523.21.00 (a) Portland cement white (whether or not coloured) Nr 180/tonne 
 2523.29.00 (b) Portland cement (brown) Nr 180/tonne 
 2523.30.00 (c) Aluminous cement Nr 180/tonne 
 2523.90.00 (d) Other hydraulic cement Nr 180/tonne 
26. 3208, 3209, 3210 All kinds of paints 5%  
27. 6904.10.00 All kinds of ceramic bricks (other  than domestic production) Nr 600/1,000 pieces 
28.  Motor vehicles  
 8702, 8703, 8706 (a) Jeeps, cars and vans, and their chassis 60%  
 8702, 8706 (b) Microbuses (with capacity of 11-14 seats) and chassis thereof 55%  
 8704, 8706 (c) Double cab pick-ups, and chassis thereof 60%  
 8703, 8706 (d) Three wheelers (auto rickshaws), and chassis thereof  55%  
 8704, 8706 (e) Single cab pick-ups, and chassis thereof 50%  
 8704, 8706 (f) Delivery vans, and chassis thereof 30%  
 870290.20 (g) Minibuses (with capacity of 15 to 25 seats) 35% 
 8706 (h) Chassis of minibuses (with capacity of 15 to 25 seats) falling under 
custom heading 8702 35% 
 8702, 8794, 8706 (i) Buses and trucks, and their chassis  40% 
 8711 (j) Motor cycles  40% 
Table AIII.5 (cont'd)  Nepal WT/TPR/S/257/Rev.1 
 Page 95 
 
 
No. Heading/subheading 
No. Description of product/good or  service Rate of excise duty 
29. 84.43 Plates, cylinders, and printing machinery used fo r printing other than those of heading 84.42, 
other printing machines, copying machines, fax machines, whether installed or not, and their 
parts and accessories.  Other printers, copying ma chines, fax machines, whether installed or not  
 844331.00 For printers, copying machines and fax machines with two or more 
multiple functions and that can be li nked to or installed with automated 
data processing machine or network 10% 
 8443.39.00 Others 10% 
30 84.72 Other office machines (for example, hectograph or stencil duplicating machine, addressing 
machines, automatic banknote dispensers, coin-s orting machines, coin-counting or wrapping 
machines, pencil sharpening machines , perforating or stapling machines)  
 84.72.90.00 Others 15% 
31. 84.79 Machines and mechanical appliances having i ndividual functions, not specified or included 
elsewhere in this Chapter  
 8479.89.90 Others 10% 
32. 85.17 Telephone sets, including telephones used for cellular networks or other cordless networks, 
equipment to broadcast or transmit or store sound,  images or other data, appliances used in line 
or cordless network for communication (such as lo cal or wide area network), communication or 
transmission or store equipment und er headings 84.43, 84.25, 85.27 or 85.28 
 8517.61.10 Base stations 5%  
 8517.62.00 Machines/equipment to store, change, reproduce and transmit sounds, 
images or other data, including switching and routing equipment 5%  
 8517.69.00 Others 5%  
 8517.70.00 Parts 5%  
33. 85.18 Microphones and stands thereof, loudspeakers, whether or not mounted in their enclosures, 
headphones and earphones, whether or not combined  with a microphone, and sets consisting of 
a microphone and one or more loudspeakers, audio- frequency electric amplifiers, electric sound 
amplifier sets  
 8518.18.00 Microphones and their stands loudspeakers, whether or not mounted in 
their enclosures 5%  
 8518.29.00 Others 5%  
34. 85.23 Records, tapes, and other recorded media for sound or other similarly recorded phenomena, 
including matrices and masters for the produc tion of records, but excluding products of 
Chapter 37  
 8523.29.90 Others 5%  
 8523.40.00 Optical means 5%  
 8523.51.00 Solid-state non-vola tile storage equipment 5%  
 8523.52.00 Smart cards 5%  
 8523.59.00 Others 5%  
 8523.80.00 Others 5%  
35. 85.25 Transmission apparatus for radio-telephony, radi o-telegraphy, radio broad casting or television, 
whether or not incorporating reception a pparatus or sound recording or reproducing 
apparatus, television cameras, still-image vi deo cameras and other video camera recorders, 
digital cameras  
 8525.60.00 Transmission apparatus inco rporating reception apparatus 5%  
 8525.80.00 Television cameras, digital cameras, and video camera recorders 5%  
36. 85.28 Reception apparatus for television, whether or not incorporating radio-broadcast receivers or 
sound or video-recording or reproducing appa ratus, video monitors and video projectors  
 85.28.61.00 Apparatus of such kind as to be so lely or principally used in the 
automated data processing system of heading 84.71 10% 
37. 8528 Colour televisions 5%  
 8540 Picture tubes of colour televisions 5%  
38. 85.29 Parts suitable for use solely or  principally with the apparatus of headings of 85.25 to 85.28  
 85.29.90.10 Of television receivers 10% 
Table AIII.5 (cont'd)  WT/TPR/S/257/Rev.1 Trade Policy Review 
Page 96 
  
No. Heading/subheading 
No. Description of product/good or  service Rate of excise duty 
39. 85.31 Electric sound or visual signalling apparatus (fo r example, bells, sirens, indicator panels, 
burglar or fire alarms) other th an those of Heading 85.12 or 85.30  
 8531.20.00 Indicator panels incorporating liqui d crystal devices (LCD) or light 
emitting diodes (LED) 10% 
 8531.90.00 Spare parts 10% 
40. 85.32 Electrical capacitors, fixed variable or adjustable (preset)  
 85.32.10.00 Fixed capacitors designed for use in  50/60 HZ circuits and having a 
reactive power handling capacity of not less than 0.5 k.var (power 
capacitors) 10% 
 8532.21.00 Tantalum 10% 
 8532.22.00 Aluminium electrolytic 10% 
 8532.23.00 Ceramic dielectric, single layer 10% 
 8532.24.00 Ceramic dielectric, multiple layer 10% 
 8532.25.00 Dielectric of paper or plastics 10% 
 8532.29.00 Others 10% 
 8532.30.00 Variable or adjustable (preset) capacitors 10% 
 8532.90.00 Parts 10% 
41. 85.33 Electrical resistors (including rheostats and potentiometers), other than heating resistors  
 8533.10.00 Fixed carbon resistor s, composition or films 10% 
 8533.21.00 For a power handling capacity not exceeding 20W 10% 
 8533.29.00 Others 10% 
 8533.31.00 For a power handling capacity not exceeding 20W 10% 
 8533.39.00 Others 10% 
 8533.40.00 Other variable resistors, in cluding rheostats and potentiometers 10% 
 8533.90.00 Parts 10% 
 8534.00.00 Printed circuits 10% 
42. 85.36 Electrical apparatus for switching or protecting elec trical circuits or for making connections to 
or in electrical circuits (for example, stitches , relays, fuses, surge suppression, plugs, sockets, 
lamp-holders, junction boxes, fo r a voltage not exceeding 1,000 volts  
 8536.50.00 Other switches 10% 
  Lamp-holders, plugs and sockets  
 8536.69.00 Others 10% 
 8536.90.00 Other equipment 10% 
43. 85.44 Insulated (including enamelled or anodized) wire,  cable (including co-axial cable) and other 
insulated electric conductors, whether or not fitt ed with connectors, optical fibre cables, made 
up of individually sheathed fibres, whether or not assembled with electric conductors or fitted 
with connectors, other electric conductors, for a voltage not exceeding 80 v 
 8544.42.00 Connected with conductors 15% 
 8544.49.00 Others 15% 
 8544.70.00 Optical fibre cable 10% 
44. 90.10 Apparatus and equipment for photographic (inc luding cinematographi c) laboratories, not 
specified or included elsewhere in this Chapter;  negatoscopes, projection screens 
 9010.90.00 Parts and accessories 10% 
45. 90.11 Compound optical microscopes, including thos e for microphotography micro-cinematography 
or micro-projection  
 9011.10.00 Stereoscopic microscopes 5%  
 9011.20.00 Other microscopes for microphotogra phy micro-cinematography or 
micro-projection 5%  
 9011.90.00 Parts and accessories 5%  
46. 90.12 Microscopes other than optical mi croscopes, diffraction apparatus  
 9012.10.00 Microscopes other than optical microscopes, diffraction apparatus 5%  
 9012.90.00 Parts and accessories 5%  
Table AIII.5 (cont'd)  Nepal WT/TPR/S/257/Rev.1 
 Page 97 
 
 
No. Heading/subheading 
No. Description of product/good or  service Rate of excise duty 
47. 90.17 Drawing, marking or mathematical calculating instruments (for example, drafting machines, 
pantographic, protractors, drawing sets, slide rule s, disc calculators), instruments for measuring 
length, for use in the land (for example, measur ing rods and tapes, micrometers, callipers) not 
specified or included elsewhere in this Chapter  
 9017.20.00 Other drawing, marking-out or mathematical calculating instruments 5%  
 9017.90.00 Parts and accessories 5%  
48. 90.26 Instruments and apparatus for measuring or ch ecking the flow, level, pressure or other 
variables of liquids or gases (for example, flow meters, level gauges, manometers, heat meters), 
excluding instruments and apparatus of heading 90.14, 90.15, 90.28 or 90.32  
 9026.10.00 For measuring or checking the flow or level of liquids 5%  
 9026.20.00 For measuring or checking pressure 5%  
 9026.80 Other instruments or apparatus 5%  
 9026.90.00 Parts and accessories 5%  
49. 90.27 Instruments and apparatus for physical or ch emical analysis (for e xample, polarimeters, 
refractometers, spectrometers, gas or smoke analys is apparatus), instruments and apparatus for 
measuring or checking viscosity, porosity, expa nsion, surface tension or the like, instruments 
and apparatus for measuring or checking quantitie s or heat, sound or light (including exposure 
meters), microtomes  
 9027.20.00 Chromatographs and electrophoresis instruments 5%  
 9027.50.00 Other instruments and apparatus usin g optical radiators (UV, visible, IR) 5%  
 9027.80.00 Other instruments or apparatus 5%  
50. 90.30 Oscilloscopes, spectrum analysers and other instruments and apparatus for measuring or 
checking electrical quantities, excluding meters  of heading 90.28, instruments and apparatus for 
measuring or detecting alpha, beta, gamma, X- ray, cosmic or other lionising radiators  
 9030.40.00 Other instruments and appara tus, specially designed for 
telecommunications (for example, cr oss-talk meters, gain measuring 
instruments, distortion factor meters, psophometers) 5%  
 9030.90.00 Parts and accessories 5% 
 
Source:  Financial Act, 2067 (2011);  Ministry  of Finance online information.  Viewed at:  www.mof.gov.np;  and Law 
Commission online information.  Vi ewed at:  www.lawcommission.gov.np.  
 
 
__________