Exporting goods from Nepal has historically been difficult due to the lack of expert courier service providers around the country. Additionally, with infrastructure limitations, it has been challenging to transport products safely and cost-effectively. However, in recent years, the ability to export from Nepal will become increasingly easier thanks to newly built international airports in Pokhara and Bhairahawa.
With new global delivery service providers, such as NepXpress, the process of shipping Nepali-produced goods has been streamlined and made available throughout the country. This means that more and more businesses are looking to find out about the process of exporting from Nepal.
In this article, we look to answer all your questions about how to export from Nepal. In this how-to guide, we look to answer all your questions about how to export from Nepal. By breaking down every step for exporters, you will be able to begin shipping your products internationally in a safe and secure manner.
How to Export from Nepal?
Exporting commodities out of Nepal is subject to several laws and restrictions. The Department of Customs and the Ministry of Industry, Commerce, and Supplies, both of which are under the Ministry of Finance, are in charge of export regulations in Nepal. Apart from a few things that are restricted, most products made in Nepal can be exported after complying with the requirements detailed in this guide.
To ensure a business abides by the rules and regulations of Nepal, you must first register as a trading company or a manufacturing industry. You can register your home-based business as a private enterprise at your local ward office if you don't have any workers. Afterward, you will need to obtain a PAN number, VAT number (Both from the local Inland Revenue Department office), and an EXIM code in order to start exporting. Look at the Government of Nepal's Export Readiness Checker tool for guidance.
Next, you will need a business partner in the nation you wish to export to, negotiate trade terms, including the cost and quantity of the goods to be shipped, the mode of transportation, the choice of a freight forwarder and an insurer, the choice of payment methods, and any other formalities required..
In order to help you with this process, this guide breaks down everything you need to do to export from Nepal in eight easy steps. The next sections will assist you in learning everything there is to know about exporting legally and safely to a foreign country.
Steps to Export from Nepal:
To help you export your products from Nepal, follow these eight steps. The eight steps help businesses while exporting from Nepal to other foreign countries. These instructions serve as a guideline; however, to be successful while shipping internationally, you should look for more information and best practices while exporting.
Step 1: Locate Business Partners
Choose the nations you wish to export your goods to first. You can discover possible locations and partners by attending trade shows and conferences. Additionally, you can utilize your connections living abroad to discover new potential markets.
Step 2: Conclude Sales Contract
Once you've found a trade partner, you will need to close the deal with them. This means you will need to negotiate over the cost of your goods, the number of items to be shipped, the delivery date, a potential payment method, and the overall conditions of your trade. Remember that after the sales contract is signed, you must send the importer the Pro-forma Invoice and request that your trade partner issue a Purchase Order. Also, remember that all financial transactions must be made through banking channels.
You will need to discuss the commercial trade terms with your trading partner when you negotiate the conditions of your partnership with them. These internationally accepted trade terms (INCOTERMS) between you and your trading partner serve as a reference for the nature of agreements for the purchase and worldwide transportation of goods. The INCOTERMS inform you, most simply, about the following three points for your partnership:
- Costs: Who is in charge of the expenses associated with the shipment at certain stages of its journey?
- Ownership: Who controls the items at any given time during the trip?
- Liability: Who is liable for paying for items damaged within a specific period of a shipment's transit?
Step 3: Obtaining the required Certificates
You will need to obtain various certificates while exporting goods from Nepal to a foreign country. There are two main certificates you will need to get, however, occasionally you may need additional certifications.
Certificate of Origin:
Certificates of Origin (CoO) are important while exporting large quantities of goods. This will help you claim duty concessions while exporting. The Trade and Export Promotion Center (TEPC) issues certificates of origin to businesses. Contact information is available at TEPC Pulchowk in Lalitpur.
Additionally, a certificate of origin can be issued by the regional district chambers of commerce for the Federation of Nepalese Chamber of Commerce and Industries, Nepal Chamber of Commerce, and Confederation of Nepalese Industries. For more information on CoO, use the following link from the Government of Nepal: Certificate of Origin.
GSP Certificate:
The Generalized System of Preference (GSP) allows preferential duty treatment of imported goods from beneficiary nations. These benefits may include a decreased import duty rate and a duty-free or quota-free rate. The concept is a facility provided to developing countries by some wealthy countries and was agreed upon at the United Nations Conference on Trade and Development (UNCTAD) ("donor countries").
Additional Certificates to export from Nepal (if necessary):
Different certificates could be needed depending on the kind of goods you are exporting. For instance, you might need a certificate if you're exporting agricultural goods or certification from the Federation of Handicrafts Association if you're exporting handicrafts. Make sure to inquire with your local representatives to learn the steps that must be taken based on specific products.
Step 4: Financing your Exports from Nepal
You must create a bank account at one of Nepal's Commercial Banks with Category "A" status to conduct business as an exporter.
This is important as you will need to advise the bank of your potential incoming payment. You are required to go to the Foreign Exchange Division of the commercial bank and produce the documentation listed in the letter of credit's terms for the transfer of revenue. These documents are likely to be the following:
- Bill of Lading
- Certificate of Origin
- Commercial Invoice
- Pro-forma Invoice and
- Packing List
Step 5: Appoint a Freight Forwarder
If you need to learn how to ship anything, we advise hiring a freight forwarder to handle your shipments. Freight forwarders are experts who focus on shipping goods from your factories to importers.
This is where you can contact NepXpress. We know all about export and import-related procedures and can help you with the overall process. We will arrange various modes of transportation for your products thanks to our extensive logistics network. Contact us today to find out how we can support your business while exporting goods from Nepal.
Step 6: Appoint Transporter
To transport your products from your factory to the Customs office of your choice, you will need to employ a delivery service provider. Depending on the number of products being shipped, your location, and the port the goods are being shipped to will determine the cost of transportation. NepXpress has 120 branches around Nepal and can help facilitate the delivery of your goods in a cost-effective and safe manner - fill out our pickup form to get started today!.
Step 7: Appoint Customs Agent
When your products enter the customs premises, customs agents assist you in clearing customs. To help you with your customs-related operations, we suggest hiring a permanent Customs Agent. There are many offices for customs agents close to the location of the customs office of your choosing.
Step 8: Clear Customs
To clear your products at customs, you must designate a Customs Agent or a Freight Forwarder. Items exported from Nepal are not subject to export fees. During the transshipment process inside Customs, inspection fees of less than NRS 200 and loading and unloading fees will be assessed.
Need help Exporting From Nepal?
Preparing to export your product from Nepal to a foreign country can be a big step in your business development. You need to be aware of many rules and regulations to stay within Nepali law. This guide lays out the eight basic steps required to ship your goods internationally, but that is the only first part.
The next part of being an exporter is ensuring that your products arrive at their destination safely, securely, and fast. This is where NepXpress comes in!
NepXpress has provided domestic and international courier services for the last six years. With our outstanding track record and our passion for ensuring that all goods reach their destination, we know we can help your business succeed. If you want to start an export business from Nepal, then make sure to reach out to us or get a shipping quotation today!