Import Duty Rate in Nepal by HS Code

21 Mar

Understanding Nepal's Import Duty Structure by HS Code

Nepal's import duty system is based on the Harmonized System (HS) of commodity classification, using the HS 2022 (Seventh Edition) as approved by the World Customs Organization . The Customs Tariff 2024/25 (2081/82) and newly released Customs Tariff 2025/26 (2082/83) provide the official duty rates for all imported goods .

The import duty structure consists of multiple layers:

Basic Customs Duty (BCD): 0% to 80% depending on product category
Value Added Tax (VAT): 13% on CIF value plus customs duty
Excise Duty: Applicable to luxury goods, alcohol, tobacco, vehicles
Additional Fees: Agriculture reform fee, infrastructure charges, etc.

HS Code Classification System in Nepal

HS Code Structure:

Level	Digits	Description	Example
Section	-	Broad product category	Section II (Vegetable Products)
Chapter	2 digits	Product group	Chapter 10 (Cereals)
Heading	4 digits	Specific product type	1006 (Rice)
Subheading	6 digits	Detailed classification	1006.10 (Rice in husk)
National Subdivision	8+ digits	Country-specific detail	1006.10.00 (Nepal specific)

Key Features:

Nepal uses HS 2022 (Seventh Edition) since May 2022
6-digit HS codes are harmonized internationally
8-digit codes include Nepal-specific subdivisions
Classification determines applicable duty rates

Import Duty Rates by Major HS Code Categories (FY 2024/25 - 2081/82)

Agricultural Products (Chapters 1-24)

HS Code Range	Product Category	Import Duty Rate	Special Notes
01-05	Live animals, meat, dairy	0% - 30%	Essential items often at lower rates
06-14	Live plants, vegetables, cereals	2.5% - 15%	VAT-able vs. non-VAT-able variations
1006	Rice	8%	Staple food
1001	Wheat and meslin	5% - 10%	Essential grain
15	Animal/vegetable fats and oils	5% - 30%	Varies by processing level
16-24	Prepared foodstuffs, beverages	10% - 80%	Tobacco up to 200%
1905.31	Sweetened biscuits	30%	13% VAT additional
2106.90	Food preparations (Dalmoth, Namkeen)	30%	Per kg rates for some items

Recent Changes (2025):

Frozen vegetables: increased from 10% to 15%
Cashew nuts (in shell): reduced from 15% to 10%
Mixed spices: increased from 20% to 30%

Industrial Raw Materials and Chemicals (Chapters 25-40)

HS Code Range	Product Category	Import Duty Rate	Notes
25-27	Mineral fuels, ores, petroleum	0% - 30%	Petroleum products: 15% base
28-38	Chemicals, pharmaceuticals	0% - 40%	Medicines often at 0-5%
29	Organic chemicals	5% - 20%	Industrial inputs favored
31	Fertilizers	0% - 5%	Agricultural priority
32-35	Tanning, dyeing, coloring materials	5% - 20%
38	Miscellaneous chemical products	5% - 30%

Plastics, Rubber, and Leather (Chapters 39-43)

HS Code Range	Product Category	Import Duty Rate	Notes
39	Plastics and articles thereof	5% - 30%	Raw materials lower than finished goods
40	Rubber and articles thereof	5% - 40%	Rubber thread for textiles: 5% (reduced from 15%)
41-43	Raw hides, leather, furskins	5% - 30%

Textiles and Clothing (Chapters 50-63)

HS Code Range	Product Category	Import Duty Rate	Notes
50-60	Textiles, yarns, fabrics	5% - 30%	Cotton, silk, wool variations
61	Knitted clothing	20% - 30%	Higher protection for domestic industry
62	Non-knitted clothing	20% - 30%
63	Textile articles	10% - 30%

WTO Data (2024):

Textiles simple average MFN applied: 12.9%
Clothing simple average MFN applied: 19.3%

Machinery and Electronics (Chapters 84-85)

HS Code Range	Product Category	Import Duty Rate	Notes
84	Nuclear reactors, boilers, machinery	0% - 30%	Industrial machinery: often 5-10%
8479	Machines for public works	15%	Construction equipment
85	Electrical machinery, electronics	0% - 30%
8517.12	Telephone sets	20%	13% VAT additional
8507	Batteries	Expanded subheadings 2025	Higher scrutiny
8517	Smartphones	Per unit duty	Rs 100,000: Rs 10,000/unit; Rs 100,000: Rs 3,000/unit

Recent Trends:

Electronics: 20% duties common
Machinery for priority industries: concessional rates

Vehicles and Transport Equipment (Chapters 86-89)

HS Code Range	Product Category	Import Duty Rate	Additional Taxes
87	Vehicles	40% - 80%	Excise: 10%-80%, VAT: 13%
8703	Motor cars	40% - 80%	Based on engine capacity
8702	Buses (diesel)	Up to 80%
8702	Buses (electric)	1%	VAT: 13%, plus 5% tax
8704	Electric vehicles (up to 100 kW)	10%
8704	Electric vehicles (100-200 kW)	15%
8704	Electric vehicles (200-300 kW)	40%

Miscellaneous Manufactured Articles (Chapters 90-97)

HS Code Range	Product Category	Import Duty Rate	Notes
90	Optical, medical, precision instruments	0% - 30%	Medical supplies: some exempted
9018-9022	Medical instruments	0% - 15%	Urine bags: exempted (previously 5%)
91	Clocks and watches	20% - 30%
92	Musical instruments	10% - 30%
94	Furniture	10% - 30%
95	Toys, games, sports equipment	10% - 30%
96	Miscellaneous manufactured articles	10% - 30%

Preferential Duty Rates by Origin

SAARC Countries (Including India):

Product Category	Standard Rate	SAARC Preferential Rate	Notes
Most goods	Various	20-30% reduction	SAARC PTA provisions
From India	Various	30% duty: -5%; 30% duty: -7%	Bilateral treaty
Essential goods	Various	Further concessions	LDC benefits

China (Tibet Autonomous Region):

Condition	Preferential Rate
Goods produced in China and imported from Tibet	4% rebate on applicable duty

Other Countries:

Origin	Treatment	Notes
WTO Members	MFN rates	Standard tariff schedule
LDCs	Preferential access	Under WTO LDC provisions
Countries with bilateral treaties	Treaty-specific rates	Varies by agreement

How to Calculate Total Import Tax

Step-by-Step Calculation:

Step	Component	Formula	Example (NPR 100,000 CIF)
1	CIF Value	Cost + Insurance + Freight	NPR 100,000
2	Basic Customs Duty	CIF × Duty Rate (e.g., 15%)	NPR 15,000
3	Excise Duty (if applicable)	(CIF + BCD) × Excise Rate	Varies by product
4	VAT Base	CIF + BCD + Excise	NPR 115,000+
5	VAT	VAT Base × 13%	NPR 14,950
6	Other Fees	Agriculture fee, etc.	As applicable
7	Total Import Cost	Sum of all above	NPR 129,950+

Example from 2025 Guidance:
Weaving machine import: 5% basic customs duty + 13% VAT on CIF + duty = total tax exceeds headline rate

How to Find Your HS Code and Duty Rate

Official Sources:

Resource	Access	Content
Customs Tariff Book 2024/25	Department of Customs, Tripureshwor	Complete HS code schedule with duty rates
Customs Tariff Book 2025/26	customs.gov.np	Updated rates for FY 2082/83
IRD Taxpayer Portal	taxpayerportal.ird.gov.np	Online duty calculators
ASYCUDA World	customs.gov.np	Electronic classification system
Customs Brokers	Licensed professionals	Classification assistance

HS Code Lookup Process:

Identify Product Description: Detailed technical specifications
Consult HS Nomenclature: Start with 2-digit chapter
Narrow Down: Progress to 4-digit, 6-digit, then 8-digit
Verify with Customs: Obtain advance ruling if uncertain
Check Annual Updates: Rates change with Finance Act

Compliance and Documentation Requirements

Required Documents for Import Clearance:

Document	Purpose
Commercial Invoice	Transaction value proof
Packing List	Quantity and description verification
Bill of Lading/Airway Bill	Shipping evidence
Certificate of Origin	Preferential rate claim
Import License (if restricted)	Regulatory compliance
Customs Declaration Form	Self-assessment
Insurance Certificate	CIF value calculation
PAN Certificate	Taxpayer identification
Company Registration	Business legitimacy

Compliance Deadlines:

Activity	Timeline	Penalty for Delay
Customs declaration filing	Before arrival or upon arrival	Storage charges, fines
Duty payment	Within specified period	Interest, penalties
Post-clearance audit	As requested by customs	Enhanced scrutiny

Recent Major Changes (2024-2025)

FY 2082/83 (2025-26) Budget Changes:

Product	Previous Rate	New Rate	Objective
Frozen vegetables	10%	15%	Promote domestic agriculture
Cashew nuts (in shell)	15%	10%	Support food processing
Mixed spices	20%	30%	Boost local spice blending
Kaolin-coated paperboard	15%	20%	Protect paper industry
Rubber thread for textiles	15%	5%	Lower textile input costs
Urine bags (medical)	5%	0%	Improve healthcare access

Strategic Policy: "Three Protections, One Promotion"

Protect agriculture - Encourage domestic production
Protect public health - Improve access to essential medical goods
Protect domestic manufacturing - Manage input cost structures
Promote local industries - Strategic tariff adjustments

Frequently Asked Questions (FAQs)

How do I find the HS code for my product?

Start with the product description and consult the Nepal Customs Tariff book or online HS database. Match your product to the most specific 6-digit or 8-digit code. For complex products, seek advance ruling from customs authorities .

What is the import duty rate for electronics in Nepal?

Electronics typically face 20% customs duty plus 13% VAT on CIF + duty . Smartphones have specific per-unit duties: Rs 10,000 for phones Rs 100,000; Rs 3,000 for phones Rs 100,000 .

Are there any duty exemptions in Nepal?

Yes, exemptions apply to: raw materials for export industries, diplomatic goods, personal items of returning residents (with limits), certain medical and educational materials, and goods for special economic zones .

How often do import duty rates change in Nepal?

Rates are typically reviewed annually through the Finance Act as part of the national budget. Mid-year adjustments may occur in response to economic conditions .

What is the difference between SAARC and non-SAARC duty rates?

SAARC countries receive preferential rates with 20-30% reductions on many items. India receives special treatment: 5% reduction for duties 30%; 7% reduction for duties 30% .

Do I need to pay VAT on imported goods?

Yes, VAT at 13% applies to most imports, calculated on CIF value plus customs duty and excise (if applicable) .

What is the customs duty on vehicles in Nepal?

Vehicle duties range from 40% to 80% depending on engine capacity and fuel type, plus excise duty (10%-80%) and 13% VAT . Electric vehicles have lower rates: 1%-40% depending on power .

Can I get a refund if I overpay customs duty?

Yes, duty drawback is available for exporters using imported inputs. File claim with supporting documentation to Department of Customs .

How do I calculate the total cost of importing to Nepal?

Use the formula: CIF + Basic Customs Duty + Excise (if any) + VAT + Other Fees. Online calculators are available at customs.gov.np .

Where can I get the official customs tariff book?

The Customs Tariff 2024/25 and 2025/26 are available from the Department of Customs, Tripureshwor, Kathmandu or downloadable from customs.gov.np .

Why Choose Corporate Np for Import Duty Advisory

Navigating Nepal's import duty structure by HS code requires expertise in customs classification, valuation, and preferential trade agreements. Corporate Np provides comprehensive import duty services including:

HS code classification and verification
Advance ruling applications with customs
Duty calculation and cost optimization
Preferential rate claim documentation
Customs compliance and audit support
Duty drawback claim assistance
Import licensing and regulatory clearance

Our customs specialists ensure accurate classification, minimized duty liability through legal mechanisms, and full compliance with the Customs Act, 2064 and Finance Act provisions. Contact Corporate Np today for strategic import duty advisory.

Important Disclaimer

This content is prepared for informational and educational purposes only. It does not constitute legal or customs advice. Import duty rates, HS codes, and trade regulations are subject to frequent amendments by the Department of Customs, Ministry of Finance, and international trade agreements. Always verify current rates with the official Customs Tariff book, Department of Customs, or licensed customs brokers before making import decisions. The information presented reflects regulations as of March 2026 and may not capture recent policy changes.