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Step-by-Step Process for Export to Nepal

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Financial Analyst

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Introduction

Exporting goods from India to Nepal is simpler compared to other international destinations due to the India–Nepal trade treaty, land-border connectivity, and simplified customs processes. However, exporters must still comply with documentation, GST refund rules, customs filings, and transport regulations.

This Saving Mantra guide provides a step-by-step structured workflow that businesses can follow to ensure smooth, compliant, and timely exports to Nepal.

Step-by-Step Process to Export Goods to Nepal

Step 1 — Confirm Product Eligibility & HS Classification

Before exporting, verify:

  • The product is permitted for export under Indian & Nepali rules
  • The correct HS code has been identified
  • Any restrictions or special certificates required (pharma, food, electronics, textiles, chemicals)

Why HS Code matters:
HS code determines duties in Nepal, documentation requirements, and border inspection parameters.

Step 2 — Register as an Exporter (If Not Already Done)

You must hold:

  • PAN
  • IEC (Importer Exporter Code)
  • Bank AD Code

For Nepal exports, IEC is mandatory even when exporting via land ports.

Step 3 — Prepare Commercial Documents

Ensure the following are properly drafted:

1. Commercial Invoice

Must include:

  • Buyer details (Nepal-based importer)
  • GSTIN (if applicable for refund)
  • HS code
  • Item details, quantity & unit price
  • Currency (INR or USD/NPR depending on contract)
  • Incoterms

2. Packing List

Includes:

  • Number of packages
  • Weight
  • Dimensions
  • Marks & numbers

3. Purchase Order / Sales Contract

Defines:

  • Delivery terms
  • Payment mode
  • Responsibilities under Incoterms

Step 4 — Select Incoterms & Payment Method

Popular Incoterms for Nepal:

  • FOB Indian Border
  • DAP Kathmandu
  • DDU / DDP (if exporter handles duties)

Preferred Payment Modes:

  • Advance TT
  • LC (Letter of Credit)
  • Bank Transfer via Authorized Dealer (AD) bank
  • Counter-payment for small-value exports

Step 5 — Logistics Planning (Road / Rail)

India → Nepal exports are primarily routed via:

  • Raxaul–Birgunj Border
  • Sunauli–Bhairahawa
  • Jogbani–Biratnagar
  • Panitanki–Kakarvitta

Transport Modes

  • Road transport (most common)
  • Rail container cargo via ICD to Nepal Inland Clearance Depots

Transport documents required:

  • Lorry Receipt (LR)
  • E-Way Bill (if applicable)
  • Vehicle details for inspection

Step 6 — Generate E-Way Bill (If Required)

Within India, E-Way Bill is required when:

  • Goods value exceeds the prescribed limit
  • Movement occurs between states en route to Nepal border

Note: Export under LUT may apply for GST zero-rated supply.

Step 7 — File Shipping Bill / Export Declaration

At the Indian border:

  • File Export Declaration (Shipping Bill) through ICEGATE
  • Submit invoice, packing list & transport documents
  • Get Let Export Order (LEO)

This is compulsory even for land-border exports.

Step 8 — Nepal Customs Clearance

The importer in Nepal must:

  • Submit import declaration
  • Pay applicable customs duty, VAT & charges
  • Provide COO (if required), invoice & packing list

Goods are inspected and cleared at Nepal’s customs yard.

Step 9 — Claim Export Benefits & Maintain Records

Indian exporters may claim:

  • GST Refund / LUT supply benefits
  • RoDTEP (if applicable)

Maintain:

  • Invoice & packing list
  • Shipping bill
  • Transport proof
  • Bank realization certificate

Document Checklist (Copy-Paste Ready)

  • Commercial Invoice
  • Packing List
  • Purchase Order / Contract
  • E-Way Bill (when applicable)
  • Transport documents (LR / Rail Receipt)
  • Shipping Bill (Filed on ICEGATE)
  • Certificate of Origin (if demanded by the importer)
  • Insurance certificate (optional but recommended)

Key Compliance Tips (Saving Mantra Notes)

  • Always verify Nepal’s import duty & VAT based on HS code
  • Use accurate valuation to avoid penalties at Nepal border
  • Maintain LUT / Bond compliance for GST refund
  • Ensure vehicle documents are accurate for border inspection
  • Work with verified Nepali importers to avoid delays

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Disclaimer

This article is for general informational purposes only. Export rules, customs requirements, GST refund processes, transport norms, and Nepal import regulations may change without notice. Businesses should verify the latest procedures with Indian Customs, Nepal Customs, logistics providers, and professional advisors before shipment. Saving Mantra is not liable for decisions made based on this guide.

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