Np 6 Ban on Foreign Goods Import from Nepal into India

The customs have imposed their own ban on import of third country goods from Nepal under the powers of Section 11(1) of Customs Act, 1962. The notification covering “goods which have been exported to Nepal from countries other than India” was issued on 22 January, 1996. Only machinery and equipment for projects funded by international agencies or Indian Government have been exempted from the ban.

Ntfn 09 In exercise of the powers conferred by sub-section (1) of Section
22.01.96 11 of the Customs Act, 1962 (52 of 1962) and in supersession of
the Notification No. 76/F. No. 80/83/65-LCI, dated the 19th June, 1965, published in the Gazette of India vide No. GSR 848 dated the 19^th June, 1965, the Central Government, being satisfied that for the prevention of smuggling it is necessary so to do, hereby prohibits the import from Nepal to India of goods which have been exported to Nepal from countries other than India.

Provided that machinery and equipment used in Nepal for the execution of a project may be allowed to be imported into India from Nepal after completion of the project subject to the following conditions namely:-

(i) the importer produces a certificate from the Indian Embassy, Kathmandu, that the machinery and equipment have in fact been used for a period of one year for the execution of the project in Nepal;

(ii) the project has been financed by an Agency of the United Nations or the International Bank for Reconstruction and Development Association or the Asian Development Bank or any other multilateral agency or the Government of India; and

(iii) the importer had obtained the permission from the Reserve Bank of India for import of the machinery and equipment into Nepal for taking up work in the project in Nepal, if so required.