दफा ३ख
Excise Duty Not To Be Levied
(1) No excise duty shall be levied on the excisable goods and services pursuant to Section 3, under the following circumstances:
(a) If any goods or services are exported outside Nepal or any goods other than liquors or cigarettes are sold to a licensed duty-free shop (bonded warehouse and duty-free shops),
(b) If a licensed bonded warehouse sells cigarettes or alcohol to a person or entity having diplomatic and tariff privilege as per the recommendation of Ministry of Foreign Affairs, Government of Nepal. Provided that,
(1) Bonded Warehouse shall not be restricted from selling or distributing goods, other than cigarette or alcohol, without levying excise duty on it.
(2) While importing excisable goods to be sold from a bonded warehouse, cash deposit or bank guarantee equivalent to excise duty applicable on such goods shall be furnished.
(2) The procedure to release or refund cash deposits or bank guarantee pursuant to Clause (b) of Sub-section (1) shall be as prescribed by the Department.
(3) If any goods exported upon production or preparation in Nepal is to be re-imported due to rejection by the concerned party or some other reason, and such goods are to be exported within three months of such import upon return, excise duty applicable during such return of goods shall be kept as security and such security shall be refunded by the concerned Customs Office upon re-export of the goods.
(4) Industry producing and exporting excisable goods to foreign countries, shall be allowed to deduct excise duty paid on purchase or import of raw materials used for producing the excisable goods, to the extent of quantity of export, against the excise duty to be paid during removal of goods pursuant to Sub-section (3) of Section 3A.
(5) Claims may be submitted before the Excise Duty Officer for refund of excise duty that could not be adjusted upon deducting pursuant to Sub-section (4).
(6) If the Excise Duty Officer, upon investigation and examination finds the claims for refund of excise duty amount pursuant to Sub-section (5) to be reasonable, shall refund the amount within sixty days of making such claim.
(7) In order to claim for refund of excise duty pursuant to Sub-section (5), there should be a value addition of at least fifteen percent (15%) during the export of tobacco and alcoholic products and beetle (pan masala) products.
(8) While claiming for refund pursuant to Sub-section (5), if the claims are not made within one year of the expiry of the period to submit details and if the value addition pursuant to Sub-section (7) has not occurred, the excise duty shall not be refunded.