Exim Code stands for Export Import Code. It is 13 digits identification number issued by the Department of Customs which is required for importing or exporting goods. A business entity can apply Exim code for import only, export only, or both import-export transactions. EXIM Code registration allows you to import & export goods.
When is an Exim Code required?
The importer needs Exim Code to clear goods from the customs warehouse and make a bank payment to foreign suppliers. The exporter requires Exim Code to dispatch goods from a customs warehouse and receive bank payment from the foreign importer.
Benefits of having an Exim Code
- Access to Global Market: Only those with a valid Exim Code can import and export goods from or to foreign markets.
- Growth and Expansion of Business: A business entity can purchase foreign products, including raw materials and machines, to increase its production. Also, a manufacturing business can sell its products globally.
- Easy to register: Exim registration takes a few working days ranging from a day to a week (maximum), to register. Also, there is no government fee for registering for Exim.
- Fewer Compliance: Exim, once registered, will be valid till the end of the current fiscal year. There is no extra compliance like return filing. It can be renewed annually on payment of a nominal fee or can be de-registered easily.
Registration Process in Nepal
The Exim registration process can be summarized in the following steps:
(i) Arrangement of documents required
Documents required for Exim registration depend on the type of business entity as given below.
| Entity | Documents Required |
|---|---|
| ✓ Citizenship of Proprietor ✓ Registration Certificate of ‘Gharelu tatha Sana Udhyog’ with the minimum capital of 10 lakhs ✓ PAN or VAT Registration Certificate | |
| Proprietorship Firm | ✓ Tax clearance Certificate of last fiscal year (not required for the newly registered firm) ✓ Original Bank Guarantee of Rs. 3 lakhs valid till the end of the current fiscal year or longer ✓ Bank Account Certificate from Bank (Annexure 2) ✓ Application Letter |
| Partnership Firm | ✓ Citizenship of all partners ✓ Partnership Deed / Agreement ✓ Registration Certificate of ‘Gharelu tatha Sana Udhyog’ with the minimum capital of 10 lakhs ✓ PAN or VAT Registration Certificate ✓ Tax clearance Certificate of last fiscal year (not required for a newly registered firm) ✓ Original Bank Guarantee of Rs. 3 lakhs valid till the end of the current fiscal year or longer ✓ Bank Account Certificate from Bank (Annexure 2) ✓ Meeting Minute mentioning whose photo and signature will be used in Exim ✓ Certificate Application Letter |
| Company registered in OCR | ✓ Citizenship of all directors or shareholders ✓ Registration certificate and documents from OCR ✓ Share Lagat Certificate of Rs. 25 lakhs ✓ Registration Certificate of Department of Industry or Department of Commerce. (Should be renewed if required) ✓ PAN or VAT Registration Certificate ✓ Tax clearance Certificate of last fiscal year (not required for the newly registered firm) ✓ Original Bank Guarantee of Rs. 3 lakhs valid till the end of the current fiscal year or longer ✓ Bank Account Certificate from Bank (Annexure 2) ✓ Board Meeting Minute mentioning whose photo and signature will be used in Exim Certificate ✓ Application Letter |
Additional Document:
✓ If Exim is applied for the import or export of excise applicable products such as alcoholic beverages, tobacco products, etc, a license from the relevant department for production is also required.
✓ Letter of Power of Attorney and citizenship of such authorized person is required if a person other than the owner of the business entity will visit the customs department office.
Few Exceptions for Export oriented business:
In order to promote export business, the following documents are made optional for business entities applying Exim Code for Export-related Transactions:
- Minimum Share Capital of 10 lakhs and Share Lagat
- Bank Guarantee of Rs. 3 lakhs
(ii) Online Application
When we are ready with all the documents, we should submit an online application from the custom department website. The following details should be entered into the form:
- Business Registration details
- Registered Address Detail (Location detail from google map should also be entered)
- Proprietor/ Partner / Director details (3 generation names should also be provided)
- Bank Account Detail
- Bank Guarantee Detail
- Documents mentioned in Point 1 should be uploaded.
We need to submit the printout of this online form while physically submitting the documents for Exim Code Registration.
(iii) Physical Submission of Documents
After submitting the online form, we need to visit the Customs Department office with the physical copy of all the documents listed in Point 1 and the online application form mentioned in point 2. Remember, the original Bank Guarantee and Annexure 2 from Bank should be submitted.
The official will verify the documents and online form submitted. Exim Certificate will be issued if all requirements are fulfilled.
Decoding the 13 letters of the Exim Code:
- The First 9 letters represent the registered PAN number,
- 01/02 respectively represents single ownership (01) or a partnership (02),
- 2 digits are software-generated unique numbers
- NP at the end of an EXIM Code represents Nepal.
Validity and Renewal of Exim Certificate
Exim Certificate once issued will remain valid for one fiscal year. In case it is registered or renewed in the middle of the fiscal year, it will remain valid till the end of the current fiscal year. For example. Exim Code registered in FY 78 – 79, (Shrawan 78 to Ashad 79), will remain valid till 31st Ashad 79.
A. Due date for renewal
Exim Code should be renewed before the start of the new fiscal year. For example, the due date for renewal of the Exim code for FY 79-80 would be the end of Ashad 79.
B. Documents required for renewal
- Original Bank Guarantee of Rs. 3 lakhs with a minimum validity of one fiscal year for which Exim is to be renewed
- Tax clearance certificate of last fiscal year.
- Renewed Certificate of registration in Gharelu tatha Sana Udhyog or Department of Commerce, if applicable.
- Deposit Receipt of Renewal Fee of Rs. 1,000.
- The additional fine will be charged on late renewal i.e after the due date.
C. Process of Renewal
- Prepare documents as mentioned in Point B.
- Submit an online application from the Exim Portal of the customs department website. Select the fiscal year for renewal in the application.
- Upload Tax Clearance Certificate if required.
- Enter Bank Guarantee details and upload a digital copy
- Make a payment of the renewal fee online. You may choose the option to deposit in the bank; in this case, you will have to upload a deposit voucher.
- Submit the online application and take a printout.
- Submit the documents mentioned in Point B along with the online application.
- Once verified Exim Code will be renewed.
Exim Code so renewed will not be changed. It remains the same till the existence of the business entity. It can be de-registered. on application by the business entity.
De-Registration or Cancellation of Exim Code
Business Entity that has no current plan to import or export goods and does not want to renew further can apply to de-register the Exim Code. The online application can be submitted via the Exim portal of the customs department, where relevant documents should be uploaded.
The following documents should be uploaded on the online application and also be submitted to the department in physical form:
- Tax Clearance Certificate of last fiscal year
- Copy of Bank Guarantee and Exim Code
- Deposit voucher for the renewal fee. The renewal fee to date should be cleared.
- Meeting Minute of the decision to cancel the Exim registration (not required for proprietorship firm)
- Application to cancel the registration
- Letter of Authority in case the owner will not be able to visit the department office
On receiving such an application, the department will verify if there is any outstanding custom duty or other payables due from the business entity. If no such due is found, the department will cancel the Exim Code and release the Bank Guarantee.
Cancellation of Exim Code by Custom Department
Custom Department may cancel the Exim Code if it finds non-compliance to any of its requirements such as pending renewals, unpaid taxes, cancellation of Bank Guarantee, etc. However, it can be reinstated by submitting the required documents to the department.
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