Provisions Relating to Customs Duty Facility, Exemption and Other Facilities
9. Diplomatic facility, duty facility and customs duty exemption :
(1) Diplomatic facility or duty facility shall, on recommendation of the Ministry of Foreign Affairs, Government of Nepal, be accorded, as prescribed, to those bodies, officials or persons who are entitled to enjoy such diplomatic facility or duty facility under any bilateral or multilateral treaty or agreement to which Nepal is a party.
(2) The Government of Nepal may, from time to time and by notification in the Nepal Gazette, accord the diplomatic facility or duty facility to such goods to be imported by such persons or bodies as specified in that notification.
(3) The Government of Nepal may, from time to time and by notification in the Nepal Gazette, accord partial or full customs duty exemption to the goods specified in that notification.
(4) The Government of Nepal may accord partial or full customs duty exemption to the goods to be imported in the name of any project to be operated under foreign loan or grant assistance or in the name of the contractor of such project.
(5) The Government of Nepal may accord partial or full customs duty exemption to the fuel to be consumed during international flight, engine of aircraft, spare parts, machine, equipment thereof, food, liquors, beer and light drinks consumed in flight by an international air service company.
(6) The provisions for according the duty facility to any goods to be brought again into Nepal from any part of Nepal via any abroad route shall be as prescribed.
(7) The provisions for according the duty facility to any goods to be sent again to a foreign country from the foreign country via Nepal shall be as prescribed.
10. Power to accord bonded warehouse facility : The Government of Nepal may, if it considers appropriate to accord the bonded warehouse facility to any person desirous of availing of the bonded warehouse facility, so accord the facility, as prescribed, that the bonded warehouse is operated subject to the terms as prescribed.
11. Power to accord facility to make import under bank guarantee facility :
(1) The Government of Nepal may accord to any person the facility to import any goods under the bank guarantee facility in such manner as prescribed.
(2) The Government of Nepal may accord the facility, as prescribed, to import under the bank guarantee facility, in accordance with the prescribed terms, such raw materials or subsidiary raw materials as to be
imported by any industry for the purpose of manufacturing goods and export them or such goods as are imported for the operation of a duty free shop.
(3) In according the facility to make import pursuant to Sub- section (2), the concerned Customs Office shall take bank guarantee of the duty chargeable for such importation as well as such other duty, fee or penalty as may be chargeable or imposed on him/her in the event of violation of the terms referred to in Sub-section (2).
12. Power of Government of Nepal to accord customs duty exemption and other facility to goods to be exported and imported by industry situated in Special Economic Zone:
( 1) The Government of Nepal shall accord customs duty exemption and other facility against bank guarantee to the following goods to be exported and imported by any industry situated in the special economic zone:
(a) Such raw materials, subsidiary raw materials as required to manufacture finished products to be exported, packing materials and other materials to be used in manufacturing,
(b) Plants, machineries, machines, equipment, tools and spare parts as required for the industry, and up to three motor vehicles based on the size and nature of industry; Explanation: For the purpose of this Section, “special economic zone” means a zone specified as a special economic zone by the Government of Nepal through notification in the Nepal Gazette.
(2) If any importer sells, as prescribed, any goods which that importer has imported to any industry situated in the special economic zone and that importer has paid the customs duty for importing such goods, the Customs Office shall refund, as prescribed, such customs duty to that importer.
(3) If any industry situated outside the special economic zone sells any finished products manufactured by that industry to any industry situated within the special economic zone, such customs duty and other facility as is accorded in the event of export shall be accorded as if that sale were an export.
(4) If an industry situated within the Special Economic Zone so sells any goods manufactured from the raw materials imported under the customs duty exemption that such goods are consumed in Nepal, such goods shall be allowed to be taken out of the special economic zone only after payment of duty chargeable on the raw materials used in such goods.
(5) The Government of Nepal may, by notification in the Nepal Gazette, issue an order specifying the procedures on the transfer by an industry situated within the special economic zone of the ownership of goods imported under duty exemption to any person within or outside the special economic zone. It shall be the duty of the concerned industry to abide by such order.