Customs Duties are levied in accordance with the Customs Act. In normal cases, the importer states the cost, insurance & freight (“CIF”) value of the goods in customs declaration at the relevant customs office in the Nepal border and customs duty is accordingly levied on the goods being imported. The importer is responsible for providing a declaration that the description of the goods is true. If there is any doubt, the customs officer reserves the right to require the declarer to submit supporting document to help him assess the real value of the goods. The valuation is then determined by a valuation committee, which generally enhances the value declared by the parties by 5 to 10 per cent or as the case may be. In case there is under invoicing, the customs official can revalue the goods based on current market value and collect customs duty on such amount or purchase the goods at the under invoiced value as it so considers. Customs service fee of NPR 500 per declaration form will be charged at the time of import of goods into Nepal.
Customs duty rates for different types of goods are determined by their Harmonized Codes, which are disclosed in customs book subject to the Customs Office’s modifications.