India-Nepal Trade Treaty Benefits for Indian Exporters
India-Nepal Treaty of Trade — in force since 27 October 2009 Overview. India-Nepal Treaty of Trade is in force since 27 October 2009, renewing automatically every seven years unless either government gives notice. Its main preference runs from Nepal to India: India admits almost all Nepalese manufactured goods free of customs duty without asking the same in return. For Indian goods Nepal undertakes to try to exempt imports and waives its additional customs duty, and agreed primary products move free of basic customs duty both ways. What it gives an exporter. For an Indian exporter the direct benefit is narrow: agreed primary products enter Nepal free of basic customs duty, and Nepal waives its additional customs duty on Indian goods. India gives duty-free access to almost all Nepalese products except a few relating to tobacco, perfumes, cosmetics and alcohol, with quotas on vegetable fats, acrylic yarn, copper products and zinc oxide. There is no tariff schedule or phase-out for Indian goods entering Nepal. What it asks in return. For duty-free entry to India a Nepalese article must be made wholly of Nepalese or Indian materials, or change four-digit tariff heading with third-count…
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