Section 4C
Exemption From Excise Duty
(1) Goods imported on the recommendation of Ministry of Foreign Affairs by a person or entity enjoying diplomatic facility shall be exempted from excise duty.
(2) Notwithstanding anything contained in Sub-section (1), excise duty shall also be exempted in the following circumstances:
(a) If diplomatic mission or donor agency transfers the motor vehicles, not older than ten years since the year of its first production, that they imported with diplomatic facility or tariff facility to any project as per the approved annual program of such project and converts the number plate into governmental plates; or if the motor vehicle, not older than ten years since the year of its first production, imported in the name of any project under full or partial tariff facility (except those imported on inventory or bank guarantee) is transferred to local body, community school, community hospital or governmental body with the approval of Ministry of Finance, Government of Nepal upon the completion of the project, the excise duty shall not be levied on such transfer;
(b) If any diplomatic agency, project, erson and other body (governmental or non-governmental organization) intends to scrap and cancel the registration of any motor vehicle imported by them under tariff facility, which is older than fifteen years from the year of its production, with the approval of Ministry of Finance such that it cannot be re-used, the excise duty shall not be levied on such motor vehicle.
(c) If the owner of a motor vehicle imported for personal use with the enjoyment of partial customs tariff facility dies and the motor vehicle has to be transferred to the husband or wife of such owner of motor vehicle, the excise duty shall not be levied on such transfer.
(d) Armored personal carrier, motor vehicles, arms ammunitions and all other kinds of goods taken by mentioning in the record for use by the battalions of Nepal Army, Armed Police Force and Nepal Police deployed as peacekeepers on the request of United Nations.
(3) An industry producing goods by using ninety percent or more of local scrap (Jhutra or Patru) goods shall be exempted from excise duty levied on such products.
(2) Notwithstanding anything contained in Sub-section (1), excise duty shall also be exempted in the following circumstances:
(a) If diplomatic mission or donor agency transfers the motor vehicles, not older than ten years since the year of its first production, that they imported with diplomatic facility or tariff facility to any project as per the approved annual program of such project and converts the number plate into governmental plates; or if the motor vehicle, not older than ten years since the year of its first production, imported in the name of any project under full or partial tariff facility (except those imported on inventory or bank guarantee) is transferred to local body, community school, community hospital or governmental body with the approval of Ministry of Finance, Government of Nepal upon the completion of the project, the excise duty shall not be levied on such transfer;
(b) If any diplomatic agency, project, erson and other body (governmental or non-governmental organization) intends to scrap and cancel the registration of any motor vehicle imported by them under tariff facility, which is older than fifteen years from the year of its production, with the approval of Ministry of Finance such that it cannot be re-used, the excise duty shall not be levied on such motor vehicle.
(c) If the owner of a motor vehicle imported for personal use with the enjoyment of partial customs tariff facility dies and the motor vehicle has to be transferred to the husband or wife of such owner of motor vehicle, the excise duty shall not be levied on such transfer.
(d) Armored personal carrier, motor vehicles, arms ammunitions and all other kinds of goods taken by mentioning in the record for use by the battalions of Nepal Army, Armed Police Force and Nepal Police deployed as peacekeepers on the request of United Nations.
(3) An industry producing goods by using ninety percent or more of local scrap (Jhutra or Patru) goods shall be exempted from excise duty levied on such products.