Export Collection

      Export Collection

      To export goods from Nepal there should be a bilateral treaty signed between Nepal and other countries. Some of the banned items include wild animals, musk, skin of animals like snakes & lizards, drugs, national and foreign coins of archeological values, archeological importance articles, idols of gods and goddesses etc.

      Following procedures are also required:

      1. Company Registration
      2. PAN Number
      3. Bank Account
      4. VAT Registration
      5. Export Contract
      6. Pro-forma Invoice
      7. EXIM Code

      Exporter should receive any of the following documents to initiate export process:

      1. Advance payment: An Advance Payment Certificate is a formal document issued by a commercial bank to confirm that an exporter has received payment in advance from a foreign buyer. This certificate is crucial for customs clearance and compliance with foreign exchange regulations. The foreign buyer remits the payment through a foreign bank. The bank in Nepal issues Advance Payment Certificate in a specified format. Exporters must present this certificate to customs during export.
      2. Cash Against Documents (CAD): CAD is the export done through documentary bill collection process except India. CAD is a payment arrangement in which an exporter instructs a bank to hand over shipping and title documents to the importer when the importer fully pays the value of accompanying bill of exchange or draft. Nepal Rastra Bank has permitted Nepalese exporters to export to third countries other than India in convertible foreign currencies on the basis of CAD up to equivalent USD 500,000 without having Letter of Credit arrangement. Security Deposit for Export under CAD should be obtained either in the form of Cash, Government Bonds, Saving Bonds or any other Securities acceptable to Banks up to 1 percent of value of total Export which may be released to concerned exporter by banks themselves after realization of payment of export. Letter of Application for issuance of Permit of CAD favoring concerned customs office must be accompanied with the following documents:

      a. Copy of Updated/Renewed Firm Registration Certificate.

      b. Copy of Tax (PAN) Certificate.

      c. Purchase Order/Sales Contract /Proforma Invoice.

      d. Transit Insurance Policy arranged by Exporter for insured value not less than invoice value.

      1. Export Letter of Credit (L/C): It is a commercial letter of credit issued by a foreign bank in favor of a domestic exporter at the request of a foreign buyer. The purpose of an Export Letter of Credit is to eliminate any credit risk assumed by nonpayment for the goods sold. The importer’s bank irrevocably commits for payment provided that the exporter complies with the terms and conditions mentioned in the letter of credit

      Pre-Shipment Finance or Packing Credit

      Pre-Shipment credit means any loan or advance granted or any other credit provided by a bank to an exporter for financing the purchase, processing, manufacturing or packing of goods prior to shipment, on the basis of Letter of Credit opened in his favor or in favor of some other person, by an overseas buyer or a confirmed and irrevocable order for the export of goods from Nepal.

      Post-Shipment Finance

      Post-shipment Credit means any loan or advance granted or any other credit provided by the bank to an exporter of goods from Nepal, from the date of extending credit after shipment of goods to the date of realization of export proceeds. Seller may require discounting of their invoices upon shipment to assist with cash flow up to receipt of funds from the buyer.

      Other Notices