Understanding Nepal’s Customs Tariff Changes in 2025

Nepal’s customs tariff system saw significant updates for the fiscal year 2082/83 (mid-July 2025 onwards), aiming to balance trade protection for local industries, government revenue needs, and integration with global standards. These changes affect import duties on food products, medicines, industrial inputs, and many other categories, shaping the landscape for businesses and consumers alike.

Key Highlights of the 2025 Tariff Update

1. Agricultural Products Protection

• Frozen vegetables duty increased from 10% to 15%, especially impacting potatoes, encouraging local farming.
• Duty on cashew nuts with shells lowered from 15% to 10%, easing costs for food and snack processors relying on imports.
• Import duty on mixed spices (masala) sharply increased from 20% to 30%, supporting local spice blending industries.
• Other spices like ginger, saffron, turmeric, and bay leaves remain steady at existing rates.

2. Healthcare Supplies Adjustments

• Urine bags moved from 5% duty to full exemption, improving access to essential medical supplies.
• Some rubber-based medical garments saw tariff hikes, possibly to promote local production or manage import costs.

3. Industrial Raw Material Changes

• Increased tariff on kaolin-coated paperboard from 15% to 20%, likely protecting paper manufacturing.
• Rubber threads for textiles benefit from lowered duty from 15% down to 5% to aid Nepal’s garment industry.

4. Excise and Consumer Products

• Drinking products and tobacco duties have been revised energy drinks’ duty cut, beer and wine duties adjusted upward significantly, reflecting health and revenue policies

What This Means for Importers and Exporters in Nepal

• Importers should review HTS codes carefully to understand new tariff brackets, as some duties changed drastically.
• Exporters, especially those sourcing raw materials, can expect shifts in input costs important for pricing and supplier negotiations.
• Consumers might see price changes on beverages, spices, and healthcare products.
• Customs brokers and freight forwarders must remain vigilant to properly classify goods under updated tariffs to avoid fines or delays.

Supporting Nepal’s Economic and Industrial Goals

The tariff strategy aims to:

• Protect domestic agriculture by encouraging local produce.
• Support healthcare by improving access to critical equipment and supplies.
• Promote manufacturing competitiveness with strategic tariff adjustments on industrial inputs.
• Balance government revenue from high-tariff categories while cushioning essential imports from prohibitive duties.

Where to Find Official Customs Tariff Updates and Resources

For businesses looking to stay compliant and competitive:

• Visit Nepal’s Department of Customs for official tariff schedules (https://customs.gov.np/category/customs-tariff-rates/)
• Track finance and trade ministry announcements for ongoing changes
• Consult experienced freight forwarders like Sea Sky Cargo to navigate tariff complexities and optimize your supply chai

For businesses looking to stay compliant and competitive:

• Visit Nepal’s Department of Customs for official tariff schedules (https://customs.gov.np/category/customs-tariff-rates/)
• Track finance and trade ministry announcements for ongoing changes
• Consult experienced freight forwarders like Sea Sky Cargo to navigate tariff complexities and optimize your supply chain

Conclusion

Nepal’s latest customs tariff update reflects a thoughtful balance of protecting local industries, increasing government revenue, and supporting vital imports. Staying informed and working with expert logistics partners like Sea Sky Cargo will help your business adapt quickly, maintain compliance, and thrive in a shifting trade landscape.