Section 25: Exemptions, facilities or concessions relating to customs duty

An industry registered under this Act is entitled to the following customs duty exemptions:

(a) for exports by those industries without the facility of a bonded Warehouse or passbook, the Ministry of Finance shall determine the rate of duty drawback and publish a notice in the Nepal Gazette. The Ministry must refund the amount of duty drawback according to the rate so determined through the One Stop Service Centre,

(b) if an industry which has not obtained a license of the bonded warehouse is to export its products through a letter of credit or prevailing banking system or sells them within Nepal in foreign currency, it may import such raw materials or subsidiary raw materials and packaging materials that are not produced in Nepal as required for the production of such goods by depositing customs duty leviable on such import, subject to the prescribed terms and procedures,

(c) notwithstanding anything contained in clause (b), such industry is entitled to the facility under clause (b) if the Department certifies that such packaging materials are not produced in Nepal and recommends for that facility,

(d) customs duty on raw materials, subsidiary raw materials, and packaging materials as required for production by industry is generally less by one level than customs duty on imports of finished goods produced from such raw materials,

(e) minimum customs duty rate shall be applied on the import of machinery, generator or industrial equipment with a capacity of tenor more than Kilowatt imported by industry for its commercial purpose,

(f) minimum customs duty rate shall be applied for machinery and scientific equipment imported by a laboratory testing quality for the purpose of testing quality and machinery and equipment imported by the industry for research and development,

(g) an industry producing intermediate goods used in industrial goods to be exported is entitled to a refund of the customs duty paid by that industry on the produced goods based on the quantity of export.

Provided that such an amount is not refunded if the application is not made for such a refund within one year after the export.