Topic 4 · Export Facilitation

Export Guide for Nepal SMEs

From first shipment to recurring international buyers — Nepal's step-by-step export roadmap.

SPS Requirements → Export Labels →
Export Registration Documents Key Markets Logistics Payment

Export Registration Process

First-time exporters must register with TEPC before their first shipment.

Step-by-Step

1
Register with TEPC
Trade and Export Promotion Centre, Pulchowk, Lalitpur or tepc.gov.np. Cost: NPR 3,000–10,000/year. Required for all exporters.
2
Get Import-Export Code (IEC)
Nepal Customs requires IEC for every exporter. Issued alongside TEPC registration. Takes 3–5 days.
3
Product-specific permits
Phytosanitary cert (PQPMO) for plant products. DFTQC lab cert for food. DSCSC cert for quality goods. See SPS Requirements page.
4
Open a Foreign Currency Account
Open USD/EUR account at any NRB-licensed bank. Required to receive export payments legally. Takes 1 day.
5
Get your first PRC (Export Permit)
Per-shipment Customs Declaration (PRC) filed at Nepal Customs with invoice, packing list, and origin certificate.

Key Agencies

AgencyRoleLocation
TEPCExport registration, market promotionPulchowk, Lalitpur
Nepal Customs (CAAN)Export clearance, HS code classificationTIA + border posts
PQPMOPhytosanitary certificatesProvince offices
DFTQCFood safety certificates, lab testingKathmandu + province
FNCCICertificate of OriginFederation offices
NRBForeign exchange repatriationBanks handle

Export Documents Required

DocumentIssued ByCostWhen Required
Commercial InvoiceExporterFree (you prepare)Every shipment
Packing ListExporterFreeEvery shipment
Bill of Lading / Air WaybillShipping agent / airlineIncluded in freightEvery shipment
Certificate of Origin (CO)FNCCI or Chamber of CommerceNPR 500–2,000Most markets require it
Phytosanitary CertificatePQPMONPR 1,000–5,000Plant / agri products
Health / DFTQC CertificateDFTQCNPR 2,000–15,000Food and beverages
Nepal Quality MarkDSCSCNPR 5,000–20,000Manufactured goods (some markets)
Letter of Credit (LC)Buyer's bankBank feesLarge orders, new buyers
Export Declaration (PRC)Nepal CustomsNPR 200–500Every shipment

Key Export Markets for Nepal

MarketNepal's Top ExportsKey Entry RequirementGSP/Preference
🇮🇳 IndiaCardamom, ginger, handicrafts, readymade garmentsPhytosanitary cert + customs clearance Kakadbhitta/BirgunjSAFTA (0–5% duty)
🇺🇸 USAPashmina, carpets, handicrafts, teasCBP import filing + CITES (for wildlife-based products)GSP (duty-free eligible)
🇩🇪 Germany / EUHandmade goods, teas, organic food, lokta paperCE mark (manufactured goods), RASFF compliance (food), EU Organic certEBA (0% for LDC status)
🇨🇳 ChinaHerbs, essential oils, raw materialsGACC registration (food), AQSIQ lab testZero-duty under bilateral treaty
🇯🇵 JapanIncense, handicrafts, pashmina, herbalJapan Food Sanitation Law, labeling in JapaneseGSP (reduced duty)
🌏 Middle East (UAE, Qatar)Himalayan salt, teas, spices, handicraftsHalal certification (food), Dubai Chamber CoOMFN rates apply
Nepal's LDC advantage: As a Least Developed Country, Nepal enjoys duty-free access to EU (EBA scheme), USA (GSP), Japan (GSP), and other markets. This is a massive competitive advantage over India, China, and Vietnam for certain products. TEPC can provide duty rates by HS code for your target market.

Export Logistics Options

Shipping Routes from Nepal

RouteForTransit TimeCost
Air (TIA → destination)Handicrafts, high-value, perishables1–5 daysUSD 3–8/kg
Sea via Kolkata ICDBulk food, textiles, commodities30–60 daysUSD 0.30–0.80/kg
Land → India → SeaAll types, medium volume35–55 daysUSD 0.40–0.90/kg
Land → China (Rasuwagadhi)Herbs, raw materials to China5–10 daysUSD 0.60–1.20/kg
Courier (DHL, FedEx, UPS)Samples, small orders (<50kg)2–7 daysUSD 8–20/kg

Incoterms — Which to Use

EXW (Ex Works) — Buyer picks up from your factory. Most risk on buyer. Use with trusted, experienced buyers only.
FOB (Free on Board) — You deliver to port/airport. Buyer handles shipping + insurance. Most common for Nepal exporters.
CIF (Cost Insurance Freight) — You arrange and pay for shipping + insurance to buyer's port. Sell at higher price to include cost.
DDP (Delivered Duty Paid) — You handle everything to buyer's door. Highest price, most complexity. Use for e-commerce B2C.

Export Payment Methods

Payment Options (Safest to Riskiest)

✅ Letter of Credit (LC) — Bank guarantees payment. Safest for new buyers. Buyer's bank pays once documents verified. Add 0.5–1% bank charge to your price.
✅ Advance Payment (T/T 100%) — Buyer sends full payment before shipment. Safest for exporter. For small orders and trusted buyers.
⚠️ Partial Advance (30–50% upfront) — Common for medium-sized orders. Get advance, ship, get balance on delivery.
❌ Open Account (pay after) — Buyer pays 30–90 days after receiving goods. High risk. Only for long-established buyer relationships.

Receiving Export Payments

Foreign currency accounts — Open USD/EUR/GBP accounts at any commercial bank. SWIFT transfers arrive in 1–3 days.
NRB repatriation requirement — Export proceeds must be repatriated within 180 days of shipment. Keep SWIFT advice slips as proof.
TEPC Export incentive — Cash incentive of 2–5% on FOB value for certain export commodities. File at TEPC within 12 months of shipment.
⚠️
Never accept payment via personal mobile wallets (eSewa, Khalti) for export transactions — violates NRB foreign exchange regulations.