CUSTOM DUTY ACT
Concept of Custom Duty
Custom duty is levied on import and export of goods. The rates of custom duty chargeable on import or export of the goods shall be as prescribed by Finance Ordinance/ Finance Act. This is a kind of indirect tax and generally the customs duty paid on import of goods is called import duty and for export it is called export duty.
The Primary duty to pay import duty is of the importer whose name in mentioned in the bill of landing or other importation documents. The export duty is payable by the exporter unless it mentioned elsewhere in negotiation documents between the buyer and seller.
Imposition of Customs Duty
Customs duty shall be chargeable on all goods to be exported or imported except those goods that enjoy customs duty exemption pursuant to the prevailing law.
Duty to be levied in case of Re-import of Exported Goods
If any person re-imported any goods exported from Nepal after having been manufactured or finished in Nepal, such goods shall be subject to such duty as is chargeable on the importation of the goods of similar kind or to the same value, which have been manufactured or finished in a foreign country.
However, no customs duty shall be charged on the goods which have been returned back due to the following reasons and with following conditions:
- Having been exported through parcel by post but could not be delivered to the concerned person and thus returned back, or
- Having been returned back because the concerned person has refused to take delivery after clearance made by the Customs Office or after having arrived abroad ,or
- Having been returned back because of being unable to meet standard quality to an accident or natural calamity
Exception on levying Customs duty
If any importer makes an application for not releasing any goods imported by that importer and for so leaving such goods with the Customs Office that they belong to the Government of Nepal, no duty shall be charged on such goods.
The Government of Nepal may itself use the goods so left pursuant to sub-section (1) or auction them in accordance with other provision under Act. In case, such goods are in such a condition that they can neither be brought into use nor be auctioned, the Customs Officer may remove such goods from the Customs Office or destroy them as prescribed ; and the expenses incurred in such removal or destroy shall be recovered from the concerned importer himself or herself.
Date of Charging Custom Duty
The duty of any goods to be exported or imported shall be determined according to the tariff (rate of duty) prevailing on the date on which the goods are cleared from the Customs Office.