Section 8A: Provision of bank guarantee

(1) An industry that exports more than forty percent of the total sales in the last twelve-month period of its operation may make import by providing to the concerned Customs Office a bank guarantee of the amount of tax leviable on importing such raw materials as required for the production of the quantity of goods to be exported and on the goods to be imported for a duty-free shop through the bonded warehouse.

Provided that, except for the import by a duty-free shop through the bonded warehouse, in order for other exporters to obtain such a facility, the goods prepared from the raw materials for export shall have ten per cent value addition.

(2)  The liquors and cigarettes imported through the boned warehouse facility referred to in sub-section (1) shall be sold only to a person or body who is entitled to diplomatic and tariff facility as recommended by the Ministry of Foreign Affairs, Government of Nepal.

(3) The bank guarantee provided pursuant to sub-section (1) shall be released from the concerned Customs Office upon completing the procedures prescribed by the Department