EXIM Code Registration in Nepal: Everything You Need to Know

What is an EXIM Code?

 

The EXIM Code, short for Export-Import Code, is a 13-digit identification number issued by Nepal’s Department of Customs. This code is mandatory for any business entity in Nepal that intends to engage in importing or exporting goods. It allows companies to legally clear goods through customs and make or receive payments from foreign transactions.

Why is an EXIM Code Necessary?

An EXIM Code is essential for businesses engaged in international trade, as it permits the clearance of goods through customs and enables financial transactions across borders. Here’s a breakdown of its main uses:

• Importers need an EXIM Code to retrieve goods from customs and settle payments with foreign suppliers.
• Exporters require an EXIM Code to dispatch goods and receive payments from international clients.

Benefits of Holding an EXIM Code

• Access to the Global Market: Only businesses with a registered EXIM Code can legally participate in import-export activities.
• Business Growth: With an EXIM Code, companies can expand their operations by purchasing foreign goods and raw materials or by selling their products internationally.
• Ease of Registration: Registering for an EXIM Code is straightforward, usually taking a few working days, and the process is free of government charges.
• Minimal Compliance: The EXIM Code remains valid for the entire fiscal year, and unlike other business licenses, does not require routine filings.

How to Register for an EXIM Code in Nepal

Here’s a step-by-step guide to obtaining an EXIM Code:

Step 1: Prepare the Required Documents

The required documents vary based on the type of business:

• Proprietorship Firms: Include citizenship details, business registration certificates, a minimum capital requirement of NPR 10 lakhs, tax clearance, a bank guarantee of NPR 3 lakhs, and more.
• Partnership Firms: In addition to the proprietorship requirements, include partnership agreements and meeting minutes authorizing the EXIM application.
• Registered Companies: Similar to the partnership requirements but also require shareholder certificates and board meeting minutes.

Step 2: Online Application

Once the documents are ready, apply online through the customs department portal, providing all relevant business details, addresses, and document uploads. A printout of this online form will also need to be presented during the in-person application.

Step 3: Physical Submission of Documents

After online submission, visit the Customs Department with the printed application and original documents, including the bank guarantee. If all requirements are met, the Customs Department will issue your EXIM Code.

Validity and Renewal of the EXIM Code

An EXIM Code remains valid until the end of the fiscal year. Renewal applications should be submitted before the new fiscal year starts, and late renewals may incur additional charges.

EXIM Code Cancellation

Businesses that no longer require an EXIM Code can apply for de-registration. In cases where a business fails to comply with renewal requirements or has unpaid dues, the Customs Department may cancel the EXIM Code.

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For further guidance, Nepal Advocates offers comprehensive legal support through each stage of EXIM Code registration, ensuring full compliance and smooth processing for your business.