Section 12
Power Of Government Of Nepal To Accord Customs Duty Exemption And Other Facility To Goods To Be Exported And Imported By Industry Situated In Special Economic Zone
( 1) The Government of Nepal shall accord customs duty exemption and other facility against bank guarantee to the following goods to be exported and imported by any industry situated in the special economic zone:
(a) Such raw materials, subsidiary raw materials as required to manufacture finished products to be exported, packing materials and other materials to be used in manufacturing,
(b) Plants, machineries, machines, equipment, tools and spare parts as required for the industry, and up to three motor vehicles based on the size and nature of industry; Explanation: For the purpose of this Section, “special economic zone” means a zone specified as a special economic zone by the Government of Nepal through notification in the Nepal Gazette.
(2) If any importer sells, as prescribed, any goods which that importer has imported to any industry situated in the special economic zone and that importer has paid the customs duty for importing such goods, the Customs Office shall refund, as prescribed, such customs duty to that importer.
(3) If any industry situated outside the special economic zone sells any finished products manufactured by that industry to any industry situated within the special economic zone, such customs duty and other facility as is accorded in the event of export shall be accorded as if that sale were an export.
(4) If an industry situated within the Special Economic Zone so sells any goods manufactured from the raw materials imported under the customs duty exemption that such goods are consumed in Nepal, such goods shall be allowed to be taken out of the special economic zone only after payment of duty chargeable on the raw materials used in such goods.
(5) The Government of Nepal may, by notification in the Nepal Gazette, issue an order specifying the procedures on the transfer by an industry situated within the special economic zone of the ownership of goods imported under duty exemption to any person within or outside the special economic zone. It shall be the duty of the concerned industry to abide by such order.
(a) Such raw materials, subsidiary raw materials as required to manufacture finished products to be exported, packing materials and other materials to be used in manufacturing,
(b) Plants, machineries, machines, equipment, tools and spare parts as required for the industry, and up to three motor vehicles based on the size and nature of industry; Explanation: For the purpose of this Section, “special economic zone” means a zone specified as a special economic zone by the Government of Nepal through notification in the Nepal Gazette.
(2) If any importer sells, as prescribed, any goods which that importer has imported to any industry situated in the special economic zone and that importer has paid the customs duty for importing such goods, the Customs Office shall refund, as prescribed, such customs duty to that importer.
(3) If any industry situated outside the special economic zone sells any finished products manufactured by that industry to any industry situated within the special economic zone, such customs duty and other facility as is accorded in the event of export shall be accorded as if that sale were an export.
(4) If an industry situated within the Special Economic Zone so sells any goods manufactured from the raw materials imported under the customs duty exemption that such goods are consumed in Nepal, such goods shall be allowed to be taken out of the special economic zone only after payment of duty chargeable on the raw materials used in such goods.
(5) The Government of Nepal may, by notification in the Nepal Gazette, issue an order specifying the procedures on the transfer by an industry situated within the special economic zone of the ownership of goods imported under duty exemption to any person within or outside the special economic zone. It shall be the duty of the concerned industry to abide by such order.