In this article, we’ll guide you through the process of handling customs clearance in Nepal.
Customs Clearance Process Overview
A customs office is established near the border between two countries to collect duties on goods imported to or exported from a country. In Nepal, we have a customs office in Biratnagar, Bhediyari, near the southern border with India. This customs office, called the Integrated Check Post (ICP), was built with the assistance of the Indian government. There are two ICPs: one on the Indian side and the other on the Nepalese side, both used for customs clearance. In this article i will guide you to understand the Customs Clearance Process in Nepal -2024.
I am Hiran Dhakal, a registered customs agent appointed by the Government of Nepal, with my office in the ICP in Biratnagar. In this blog, I’ll explain the simple customs clearance process for goods imported from India, which is the most common case along the Nepal-India border.
Preparing the Bill of Transport
In this step, goods are loaded onto a truck, and the transport company prepares a document called the “Bill of Transport” (Bill_T). This document includes the consignment number (helpful for tracking on the transport company’s website), nature of goods, weight, number of packages, packing method, and transportation fare. The driver carries one copy of the Bill_T, while another copy is forwarded to the customs agent in Nepal.
The Nepalese customs agent employs an Indian agent to monitor the truck at Indian customs. When the truck arrives at the Indian border, the Indian agent arranges for its export to Nepal.
Customs Clearance from India to Nepal
The Indian agent, usually employed by the Nepalese agent, handles the customs clearance in India. The required documents for Indian customs clearance include:
- Tax invoice/commercial invoice
- Packing list
- SCOMET letter
- Authorized Dealer Code (AD Code)
Once these documents are ready, the Indian agent prepares a “Bill of Export” in Indian customs, officially marking the entry of the documents into the Indian customs system. This Bill of Export is essential for customs clearance in Nepal as well.
Entry into Nepal Customs Yard
After crossing the border, the truck enters the Nepal customs yard. At the gate, the truck’s entry is logged into ASYCUDA, the official Nepalese customs system for processing customs data. In the yard, trucks are weighed to verify the packing list’s weight. (This weighing step is not required for tractors.)
Entering Goods Data into ASYCUDA
A copy of the documents is sent to a commercial bank in Nepal, responsible for financial arrangements in the trade. After the truck arrives in the customs yard, we release these documents from the bank. Occasionally, the driver provides the documents, but in either case, these documents are necessary to begin the customs clearance process.
The essential documents for Nepal customs clearance are:
- Commercial invoice
- Packing list
- Bi.Bi.Ni.
- Bill of Export
- Letter of Credit or Telegraphic Transfer document
Before entering the goods data into the ASYCUDA system, we must check the physical condition of the goods and match them with the description in the invoice and packing list. If the goods do not match, we cannot proceed as entering incorrect details is illegal. If everything matches, we enter the goods’ details into ASYCUDA using our customs agent user identity.
Customs Clearance Process After Entry in ASYCUDA
After registering the data, a number is generated, and ASYCUDA randomly assigns a customs inspector and officer for goods clearance. We print a physical copy of the form and present it to the customs inspector, who will either physically examine the goods or review the documents. If the inspector is satisfied, they will approve the declaration, and the same process follows with the customs officer. Once approved, the lane (red or yellow) is rerouted to the green lane, which requires no additional examination. [Note: Green lane clearance is rare in customs processes.]
Payment of Customs Duty during Customs Clearance
Now, it’s time to pay the customs duty calculated during ASYCUDA entry. Duty payment can only proceed if the lane is green. Payment can be made via cash, cheque, or online portal. After payment, a receipt is generated, which must be attached to the previously printed form. The customs inspector and customs officer then sign the documents, and a clearance slip is issued, marking the end of the customs clearance process.
Final Process of Customs Clearance
With the clearance slip, we pay the parking fee, make copies of the clearance slip, and hand them to the driver. The driver presents these documents at the gate, where, after verification, the truck exits the customs yard and heads to its destination.
Hope this post will help you to understand the Customs Clearance Process in Nepal-2024
The author of this content, Hiran Dhakal, is a government-approved customs clearance agent in Nepal, currently activelyworking at the Biratnagar Customs Office.
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