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
- Exporter is a registered business firm - Renewed PAN and VAT registration certificates. - Exporter has a list of potential buyers
1 Exporter contacts Importer 2 Exporter offers terms of trade including price, quality, modes of packing, delivery and payment to the importer. 3 Importer reviews the trade terms and determines if the terms of trade are acceptable. If terms of trade are not acceptable, importer returns it to exporter for revision. 4 If the trade terms are acceptable importer expresses intent to purchase. 5 Exporter issues Pro forma Invoice 6 Importer receives Pro forma Invoice and Issues purchase order. 7 Exporter receives purchase order.
-Exporter and importer have already agreed into mode of payment.
1 Exporter informs the importer about designated bank account and asks for advanced payment. 2 Importer applies to importer's bank for fund transfer with following documents - Payment application - Pro forma invoice - Importer's import license number 3 Bank officer verifies submitted documents 4 If documents meet the requirements bank asks importer to deposit the fund 5 Importer deposits the fund 6 Importer's bank transfers the fund to exporter's bank 7 Exporter's bank transfers the amount to exporter's bank account. 8 Exporter collects the advance payment
- Importer and an exporter have already agreed on trade terms.
1 Exporter or representative contacts transport company/operator. 2 Exporter negotiates freight and books truck. 3 Transport Company or operator confirms the booking. 4 Transport operator moves vehicle to exporter's warehouse. 5 The cargo is loaded on truck 6 Exporter handovers cargo with documents 7 Transport operator receives cargo with documents 8 Transport operator move Cargo to district border. 9 On the way transport company or operator pays the export tax at Re.1 per kg to DDC. 10 DDC collects export tax. 11 Transport operator moves cargo to point of export Customs
-Importer and an exporter have agreed that the cargo insurance is done at the exporter's expense
1 Exporter applies for cargo insurance with following documents - Application - PAN/VAT certificate - Firm registration certificate - Commercial /export invoice - Packing list - Transport document 2 Insurance company verifies the submitted documents. 3 If documents are correct insurance company decides to issue insurance coverage. 4 Insurance company requests exporter to pay premium 5 Exporter pays the premium 6 Insurance company collects the premium 7 Insurance company issues the insurance policy. 8 Exporter collects the insurance policy
- Terms of trade between exporter and importer is already concluded
1 Exporter applies for COO in District Chamber Office. With following documents: - Application - purchase order - PAN/VAT certificate - Firm registration certificate - Commercial/ export invoice 2 DCO verifies submitted documents. If requirements met, DCO officials decide to issue the certificate 3 DCO collects fees from exporter or representative at the rate of 0.12 percent of export value. 4 DCO issues the COO 5 Exporter or representative collects COO
-Legally custom clearance is required to be done through licensed agent only
1 Exporter determines the agent and issues appointment letter to him. 2 Exporter handovers documents with power of attorney to the agent generally through truck operator 3 Agent receives documents and letter from truck operator
- cardamom needs to meet specified standard
1 Custom Office issues a letter to FQO to examine the cargo for quarantine purpose. 2 Clearing agent receives letter to FQO from Custom Office. 3 Exporter's clearing agent submits sample and fee along with following documents. - Custom letter - Commercial /export invoice - Packing list - Custom declaration form 4 FQO receives document and examines the sample. 5 FQO issues quarantine certificate. 6 Clearing agent collects quarantine certificate
- Cargo and documents are ready at for custom clearance
1 The agent deposits service fee at bank. 2 CHA get receipt from bank 3 CHA submits custom declaration form with following documents. - Commercial/export invoice - Packing list - COO - Firm registration certificate - PAN /VAT certificate - Insurance policy - Food Quarantine certificate - Appointment letter - Foreign exchange form - Bank receipt 4 Duty officer receives submitted documents 5 Duty officer classifies the cargo electronically. 6 If cargo fall in red channel transport operator transfers the cargo to the point of inspection 7. Duty officer inspect the cargo. 8. Custom records the quantity and value of the exported cargo 9 Custom issues clearance order 10 Duty officer signs declaration form 11 Clearing agent receives signed declaration form. 12 Truck exists from custom yard and moves to importer border
-Export cargo already reached to destination
1 Importer applies for fund transfer in their own bank along with following documents - Payment application - Commercial invoice - Importer's import license number - Custom clearance certificate of importer border custom 2 Bank official verifies submitted document 3 If documents are correct bank requests importer to deposit the fund 4 Importer deposits the fund 5 Fund transfer by importer bank to exporter bank 6 Exporter bank receives and transfers the fund to exporter's account 7 Exporter receives balance payment