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Nepal: sanctions and trade risk

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As of 7 November 2026, the screened UN, EU, UK, Swiss and US sanctions lists contain 0 companies, organisations, vessels and aircraft linked to Nepal.Lists last checked .

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No elevated country indicator for Nepal in the route rules Sanctioni uses. That is not a clearance: goods may still be export-controlled, and parties in Nepal may still be on a list.

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Logistics profile

Nepal: logistics and trade

Landlocked country in the Himalayas, dependent on transit through Indian ports, heavily dependent on imports

Nepal (ISO code: NP) lies in South Asia between China to the north and India to the south, east and west. It is a federal parliamentary republic. The climate ranges from subtropical in the Terai lowlands to alpine in the high Himalaya, home to Mount Everest. As a landlocked country, Nepal relies on transit rights through India (ports of Kolkata/Haldia and Visakhapatnam) and on its transit agreement with China for overseas trade. Cargo moves mainly by road and increasingly by rail through border points such as Birgunj, Bhairahawa and Biratnagar. Nepal depends on imports of fuel, machinery, vehicles, electronics and food, while its main exports are carpets, textiles, agricultural products and handicrafts. The national currency is the Nepalese Rupee (NPR), pegged to the Indian Rupee.

Capital
Kathmandu
Population
29,164,578
Area
147,516 km²
Currency
Nepalese Rupee (NPR)
Continent
Asia
Region
South Asia
Economic area
SAARC / SAFTA / BIMSTEC
Religions
Hinduism
Access to the sea
Landlocked

Transport modes Road · Rail

Current situation
Expansion of cross-border rail (Birgunj-Raxaul, Bathnaha-Biratnagar) and new airports at Gautam Buddha (Bhairahawa) and Pokhara strengthen connectivity.
Seasonal conditions
The monsoon (June to September) brings landslides and road closures; winter fog in the Terai and snow at high altitudes delay road and air traffic.

Main cargo airports

  • Tribhuvan International AirportKTM

    Tribhuvan Kathmandu (KTM/VNKT): Nepal's only international air cargo gateway, new 10,200 sqm cargo complex, garment exports, road-air alternative via Delhi (DEL).

  • Gautam Buddha International AirportBWA

    Gautam Buddha (BWA), Bhairahawa: Nepal's second international airport for Lumbini. 8,000 m² cargo hall idle in 2026; airfreight via Kathmandu (KTM).

  • Pokhara AirportPKR

    Pokhara (PKR): Nepal's third international airport (2023), gateway to Annapurna. Scarce scheduled overseas traffic; airfreight via Tribhuvan (KTM).

Road corridors

  • Birgunj-Kathmandu (Tribhuvan/Narayanghat)
  • Bhairahawa-Butwal-Kathmandu
  • Araniko Highway Kathmandu-Kodari/Tatopani (China)
  • East-West Mahendra Highway

Rail corridors

  • Raxaul (IN)-Birgunj/Sirsiya ICD (broad gauge)
  • Bathnaha (IN)-Biratnagar ICP
  • Jaynagar (IN)-Janakpur/Bardibas (passenger traffic)

Inland ports

  • Birgunj/Sirsiya ICD (rail link to Raxaul/Kolkata)
  • Bhairahawa ICD
  • Biratnagar ICP
  • Kakarvitta ICD
  • Kathmandu/Chobhar ICD

Main trade lanes

  • Kolkata/Haldia (IN)-Birgunj
  • Visakhapatnam (IN)-Birgunj
  • Tianjin/Shenzhen (CN)-Kathmandu (transit)

Customs and import

Customs authority Department of Customs (Bhansar Bibhag), Ministry of FinanceOfficial website ↗

Import customs system
Electronic import declaration via ASYCUDA World (since 2016), linked to the Nepal National Single Window; mandatory registration with EXIM code; customs value on CIF basis.
Export customs system
Electronic export declaration via ASYCUDA World and the Nepal National Single Window; registration with EXIM code at the Department of Customs required.
Import VAT
13 percent standard rate on CIF plus customs duty (VAT Act 2052/1995), collected at customs for the Inland Revenue Department; basic foodstuffs, books and other items are exempt.
Proofs of origin and trade agreements
SAFTA Certificate of Origin as well as BIMSTEC and APTA certificates of origin; in trade with India, origin declarations under the Nepal-India Trade Treaty.
Restricted and prohibited goods
Import prohibitions and licensing requirements under the Export and Import (Control) Act; controls include weapons, narcotics and radio equipment, among others. Export restrictions apply to antiquities and certain raw materials.

Typical import documents

  • Commercial invoice
  • Packing list
  • EXIM code registration
  • Pragyapan Patra (customs declaration)
  • Certificate of origin for preferential treatment
  • Bank / letter of credit documents

Typical export documents

  • Commercial invoice
  • Packing list
  • Export customs declaration (ASYCUDA)
  • Certificate of origin (SAFTA/BIMSTEC)
  • Phytosanitary certificate (agricultural)

Logistics conditions

Customs complexity
High
Customs delays
High
Port congestion
Medium
Dangerous goods relevance
Medium
Pharma and cold chain relevance
Medium
E-commerce relevance
Low to medium

Trade

Top import goods

  • Petroleum products
  • Machinery
  • Vehicles
  • Electronics
  • Foodstuffs

Top export goods

  • Carpets
  • Textiles
  • Agricultural products
  • Handicrafts

Typical cargo

  • Petroleum products
  • Machinery and vehicles
  • Consumer goods and electronics
  • Carpets and textiles (export)
  • Agricultural products

Logistics questions

Is Nepal a landlocked country?

Yes. Nepal has no direct access to the sea and handles its overseas trade as transit through Indian ports (Kolkata/Haldia, Visakhapatnam) and alternatively through Chinese ports.

What is the import VAT rate in Nepal?

The standard VAT rate is 13 percent and is collected at customs on the CIF value plus customs duty. Basic foodstuffs, books and other items are exempt.

Which customs system does Nepal use?

The Department of Customs uses ASYCUDA World, linked to the Nepal National Single Window. Importers and exporters need an EXIM code.

Which border crossings are most important?

Birgunj (with the rail dry port at Sirsiya), Bhairahawa and Biratnagar handle most of Nepal's foreign trade.

Is there a rail connection to the ports?

Yes. The Birgunj/Sirsiya dry port is connected by broad gauge via Raxaul (India) to the ports of Kolkata and Visakhapatnam; further rail links are being built.

Which trade agreements apply to Nepal?

Nepal has been a WTO member since 2004 and is part of SAFTA and BIMSTEC; it has a trade treaty and a transit treaty with India, and a transit agreement with China.

What is the currency and the exchange rate?

The Nepalese rupee (NPR) has been pegged to the Indian rupee since 1994, at a rate of 1,60 NPR per 1 INR (Nepal Rastra Bank).

Full logistics profile on Freight Academy ↗

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Powered by Freight Academy, verified 26 Jun 2026. Logistics information, not a sanctions source.

Indicator: the route rules of the Sanctioni check, curated from the published sanctions programmes of the UN, EU, UK, Switzerland and the US. Entries: the live version of each list (data sources), updated every 6 hours.

A preliminary screening aid — not legal advice and not a compliance clearance. The official publication of the competent authority prevails.

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