Thorough Knowledge About Import Goods of Nepal

Few people are well-acquainted with the goods that Nepal imports from other countries, which often leads to many misunderstandings and doubts about trading with this country. This blog will outline some information about the types of goods imported into Nepal like iron and steel, 1400 distillation products and 500 mineral fuels and their role in the market.

Nepal is a landlocked country located between India and China, and it has 8 of the world’s ten tallest mountains, including Mount Everest – the highest point on Earth. Despite its natural beauty and resources, Nepal is one of the poorest countries in the world, with over 30% of its population living below the poverty line. The country’s lack of infrastructure and mountainous terrain make it difficult to trade goods with other countries. 

As a result, Nepal is heavily dependent on imports.

What are the types of goods that are imported into Nepal?

Some of the goods imported by Nepal are:

• Fuel- Nepal imports mineral fuels by land, air, and water. The import of mineral fuel through border points like Kakarvitta, Birgunj, and Belahia border points has increased recently. The main reason for this is the accessibility of customs facilities provided by the government to the importers. The import of mineral fuel has increased significantly after the Kathmandu-Tarai fast-track highway construction which has reduced the transportation cost of goods by 50%. The fuel import addresses the petroleum and diesel requirements of the country.

• Raw materials: Iron and steel are two of the most critical raw materials used in manufacturing, including automobiles, appliances, and construction materials. While Nepal has few natural resources, it has to import most of the materials used in manufacturing. One of the primary sources of Nepal’s iron and steel imports is India and China..

• Distillation products: The most common use of distillation products is in the alcoholic beverage industry. These products are used for the production of distilled spirits such as vodka, whisky, brandy, etc. There is a great demand for these products from the local distilleries in Nepal, and the leading suppliers of these products are India and China.

Apart from the above, there are some other products that are imported into Nepal like :

-Industrial products

-Petroleum products

-Machinery, including automobiles, computers and construction 

equipment.

-Food items like rice, wheat flour, cooking oil, sugar, and milk

How have imported goods changed in recent years?

There have been a lot of changes in the imported goods in Nepal in recent years. More goods are now imported, and they are becoming more and more accessible to the average Nepali. This is changing the way Nepali people live and shop, and it is also having a significant positive impact on the economy.

Many goods are now available in Nepal, including electronics, clothes, and food which has made life easier for Nepali people, as they can now purchase the items they need without travelling overseas.

However, there are some negative aspects to this trend as well. The influx of imported goods has hurt the Nepali manufacturing sector, which is struggling to compete with the cheaper imports. This pressure on the local production is causing some problems for Nepali businesses and could lead to job losses in the long run.

How does customs duty work in Nepal?

There are several customs duties in Nepal, and some of the most common are the import duty, excise duty, VAT, and custom fees.

Import Duty: The government charges an import duty on goods brought into the country. The rate of import duty varies depending on the type of goods imported. Generally, the higher the value of the goods, the higher the import duty rate.

Excise Duty: This is a tax that is paid on goods such as iron and steel, 1400 distillation products and 500 mineral fuels that are produced in Nepal. The rate of excise duty varies depending on the type of goods. 

Customs Duty: Goods imported into Nepal are assessed, and a customs duty is applied at the time of import. The customs duty depends on the value of the good, and the applicable rate depends on the type of goods. The importer of the goods pays the customs duty.

How to get clearance for your imported goods in Nepal?

The process of importing goods into Nepal can be complicated and time-consuming. Several regulations and procedures must be followed to ensure that the goods are cleared and allowed into the country.

The first step in the process is to obtain a customs clearance certificate from the Department of Customs. This certificate is required to import any goods into Nepal, and the certificate must be received before the shipment arrives in Nepal and must be presented to customs upon arrival.

Conclusion

Nepal needs imported goods due to its geographical location as well as to keep up with the changes in different markets, which affect most of the developing economies. There is a continuous effort to simplify procedures so that people of the country get access to goods that different countries offer.