EXIM Code provides an institution the right to make a cross-border selling/purchasing of goods or services with real-time data flow to the Government in context of export/import of goods from Nepal.
A 13 letter code for Export and Import of goods is known as an EXIM code provided by the Department of Customs, Ministry of Finance (Government of Nepal). In an era of globalization, selling and purchasing of any goods or services to an international market is doable but it comes with a set of protocols that needs to be adhered before commencing the act, i.e. attaining an EXIM code.
EXIM Code provides an institution the right to make a cross-border selling/purchasing of goods or services with real-time data flow to the Government in context of export/import of goods from Nepal. The usage of EXIM Code prohibits any illicit ways of importing or exporting of goods that possibly effect the Government’s revenue generation. The EXIM Code needs to be regularly updated on an annual basis with Bank Guarantee. A company registered in Nepal with a minimum Paid up Capital up to 10 Lakh can apply for an EXIM Code, however for export purpose solely; no minimum Paid up Capital is required.
Documents Required for the Application:
- Online Registration Form
- Citizenship copy of an individual or of all shareholders in a partnership firm
- PAN/VAT Certificate
- Registration Certificate of the company
- Passport size photo of the proprietor
- If the Company is registered under Department of Industry, Department of Commerce or Department of Small and Cottage Industry, minimum 10 lakh paid up capital should be proven by providing Share Certificate.
- If the Company is registered at Department of Small and Cottage Industry after 2074, a request letter from Department of Industry is mandatory.
- Tax Clearance Certificate of the previous fiscal year
- Exact MAP tracing of office location
- Sifarispatra from Bank
- Bank Guarantee Document amounting to NPR. 300,000 (Three Hundred Thousand)
How to Register?
- Company seeking for EXIM Code needs to be registered at Department of Commerce
- A registered company at Company Registration Office also needs to be registered at Department of Commerce for EXIM Code by paying TAX as per company’s capital
- Application form available at www.customs.gov.np needs to be filled
- Bank Guarantee from a Commercial “A” category bank amounting to NPR. 300,000 along with application form, submit the above enlisted documents and EXCISE Duty license
- After the registration is successful, the Department of Custom will issue the EXIM Code
The sole motive of introducing an EXIM Code in any country is to monitor the bogus firms that are responsible for revenue leakage of the Government.
The 13 letter within the EXIM Code represents the registered PAN number (9 letters) of the firm, 01/02 respectively represents a single ownership (01) or a partnership firm (02), and a special 2 digit unique number is software generated. NP at the end of an EXIM Code represents Nepal.
To illustrate how an EXIM Code is created, an example is created for your perusal.
Trilegal Nepal Pvt. Ltd. has an EXIM Code i.e. 1234567890121NP
- 123456789 represent the PAN number of Trilegal Nepal Pvt. Ltd.
- 01 represent its single ownership
- 21 is a software generated unique number
- NP represent Nepal
The EXIM Code remains the same for a company throughout its existence, however due to unpaid taxes, cancellation request, Bank Guarantee cancellation; EXIM Code can be cancelled by the Department of Customs but upon request it can be reinstated with clearance of taxes or any other required documents are submitted. EXIM Code requires an annual renewal and an extension of Bank Guarantee certificate is mandatory.