In Nepal, following act and regulations are associated in the process of trading business. - Export and Import control Act 2013(1957) -Foreign Exchange (Regulation) Act 2019 (1962) - Competition Promotin and Market Protection Act - Food Act 2023 (1966) - Feed Act 2033 (1976) - Drug Act 2035 (1978) - Pesticides Act 1991 - Value Added Tax Act 2052 (1996) -Environment Protection Act 2053 (1997) - Animal Health Service act 2055 (1999) -Veterinary Council Act 2000 - Plant Protection Act 2064 (2007) -Customs Act 2064 (2007) - Finance Act 2068 (2011) Similarly, following rules/ regulations and directives are also related with trading process in Nepal. - Food Rules 2027 (1970) - Drugs Registration Rules 2038 (1981) - Feed Regulation 2041 (1984) - Pesticides Rules 1994 - Animal Health and Livestock Service Rules 2056 (1999) - Customs Rules 2065 (2007) - Plant Protection Rules 2066 (2010) - Animal Quqrantine Directives 2064 - Commerce Mannual 2065 - Customs Mannual 2068 - Directives of Import and Sale of Gold 2068
- Registered business firms Importer have a list of potential brokers and exporters
1. Importer contact broker and asks for the following - Price - Quality - Quantity - Mode of payment - Mode of delivery 2.Broker offers trade terms 3.Importer receives offer of trade terms 4.Importer reviews the trade terms, if trade terms are not agreed upon importer requests for revision. 5.If trade terms are acceptable importer expresses intent to purchase. 6. Broker establishes the relation between importer and exporter. 7.Exporter issues the Pro forma invoice. 8.Importer receives Pro forma invoice and reviews, if it is not acceptable, he contacts exporter and requests to review. 9. If Pro forma invoice is acceptable importer issues purchase order. 10. Exporter acknowledges the purchase order
-Importer and exporter have already concluded terms of trade
1.Importer prepares following documents - Copies of firm registration - Copies co PAN certificate - Copies of proforma invoice - copy of purchase order 2. Bank issues evidence of payment 3. Importer collects payment evidence from concerned bank 4. Transport operator delivers export invoice to CHA 5. CHA collects export invoice from transport operator in exporter’s custom point
-Exporter and Importer have already agreed into sales/ purchase terms of trade
1. importer applies for fund transfer to importer bank with following documents -Filled in payment application -proforma Invoice -foreign exchange declaration form -PAN/VAT certificate -Firm registration certificate 2.Bank verifies submitted document 3. If submitted documents are found correct bank asks importer to deposit the fund 4. Importer deposits the fund 5. Importer bank transfers the fund to exporter bank 6. Exporter bank transfers the amount to exporter's account 7.Exporter collects the advance payment
-Cargo arrived to destination
1. Importer applies for fund transfer with following document - Commercial/export invoice -Custom declaration document -PAN /VAT certificate -Firm registration certificate - Foreign exchange declaration form 2. Bank Verifies submitted document 3. If documents are approved bank requests importer to deposit the fund 4. Importer deposits fund 5. Fund transfer by importer bank to exporter bank 6. Exporter bank receives fund and transfers 7. Exporter receives balance payment
1.Clearing agent applies for entry permit with following documents - Firm registration - PAN/VAT certificate -Proforma invoice 2. PQO receives and verifies document 3.PQO issues entry permit 4.CA obtains entry permit
Legally custom clearance of import cargo is to be done by CHA
1. Importer issues appointment letter with power of attorney 2. Importer sends letter and required following documents to CHA through courier - Firm registration certificate - PAN certificate - Copy of purchase order - Proforma invoice - Payment evidence 3. CHA receives courier document from importer 4. Courier handover document to CHA 5. CHA receives appointment letter and documents
Cargo arrived at customs for clearance
1. CHA applies for letter to FQO 2. Custom issue letter to FQO 3. CHA receives letter to FQO 4. CHA submits of following documents with sample and fee to quarantine office - Custom letter - Commercial/export invoice - Packing list - Custom declaration form - Application in prescribed format 5. FQO receives document and sample 6. Food quarantine office examines the sample 7. Food quarantine office issues quarantine certificate 8. Clearing agent receives quarantine certificate
Cargo arrived at custom point
1. Clearing agent submits custom declaration form with following documents - PAN certificate - Firm registration certificate - Commercial/export invoice - Packing list - CHA Appointment letter along with power of attorney - Foreign exchange declaration form - Food quarantine certificate - Release order issued by Plant Quarantine Office - Evidence of payment 2. Receive document by duty officer 3. Custom classifies the cargo electronically and assess cargo 4. If cargo falls in red channel Truck operator transfers the truck to point of inspection 5. Inspect cargo by deputed official 6. If misconduct is found either reassessed or hold the cargo and action initiated as per custom act 2064.If cargo found intact, order to pay duty 7. Clearing agent pay the duty 8. Custom bank collect duty and issue receipt 9. CHA collect receipt of the duty paid 10. Custom receive receipt issued by bank 11. issues clearance order and release cargo 12. Sign declaration form by duty officer 13. Clearing agent receives signed declaration form 14. Transport operator moves cargo truck to importer's destination
Cargo is already cleared from the exporter’s custom and documents are ready
1. Clearing agent contacts transport operator and negotiate the freight 2. CHA handover cargo with documents to transport operator 3. Load cargo on truck 4. Move cargo to importer warehouse through importer custom point
Cargo arrived at Customs for clearance
1. CHA submits sample and required document 2. PQO receives document and sample 3. PQO examine the sample 4. PQO issues release order 5. CHA receives release order letter