versatile in nature and a hot bed for entrepreneurs, Nepal has so much to offer. But how someone would get started when investing in Nepal Business sector or what would be the requirements for importing and exporting goods? What would be the requirements for a particular business? What are the laws and regulations to follow while doing business with Nepal?
In all matters, Government of Nepal reserves full rights to Import and Export of goods and regularly formulate and amend rules regarding importing and exporting of goods domestically and internationally.
Let’s talk about food, in order to import foodstuff, one has to submit application to Director General Department of Food Technology and Quality Control (DFTQC) along with some credentials and attachments to attain certification for importing goods.
Nepali Food Laws are inspired from Indian Prevention of Food Adulteration Act and goes back to sixties. DFTQC (Department of Food Technology and Quality Control) is responsible for administrating food control programme in Nepal and works under Ministry of Agriculture Development (MoAD). When doing business with Nepal especially in Food Sector, there are some standard like Generic Standard and Food Safety standards which are to be followed. Then there are laws regarding food additives, amount of preservatives (First class preservatives and Second class preservatives), using specific coal tar colors and their specific amount for synthetic dyes and natural colors and use in specific food. These all are mentioned and are to be followed accordingly.
Altogether Nepal food regulation (DFTQC) comprises with 9 chapters and 14 schedules.
There are some Labeling requirements for food commodities which have been described in Food Rules, 1970. E.g. Wrapping and Label is necessary for food items to be sold in Nepal. Name and address of entrepreneur is necessary on label. Label should specify real name of food if it’s made from only one substance otherwise should mention quantity of each ingredient along with it’s name. Net weight should clearly be written. If any color or preservative is being used, then it should also be clearly mentioned. Label description must be in the Nepali or English language as to clearly understand. The description may also be specified in another language, in addition to these two languages. Labeling requirements are not essential for following foods:
Food, Fruits or green leaves, Milk in liquid state, Whole egg and various kinds of fishes, meat.
The packaging and labelling requirements for import certification are Weights, shape and size of the retail pack, Type of the packaging material, certifying agency for the packaging material to be of the food grade and quality Whether or not the copy of quality certificate of packaging material attached with the application, the labelling detail of the product, labelling languages used, composition, total net weight, date of expiration, manufacturing date other important information.
Nepal Bureau of Standards and Metrology (NBSM) is a National Standards Body of Nepal. Most of the standards published by NBSM are voluntary standards, however it could be mandatory to those who apply and comply the provisions as laid down in Nepal Standards (Certification Mark) Act, 2037 (1980). Out of 867 standards some products have mandatory standards i.e. Cement (OPC, PPC and PSC), Galvanized Roofing Sheet, Galvanized Iron Wire, Code of Practice for LPG gas cylinder, Iron rod, Dry cell battery.
Other mandatory laws for a business man to know includes:
Excise Act & Excise Rates for 2011 15/02/2011, which describes excise rate for a variety of products including Juices, all kinds of non-alcoholic beverages, Beer, Wine, Cider, Spirits, and Raw Materials for making Spirits, Liquors, and Over-Proof beverages, along with variety of other items not related to food.
Plant Protection Rules 22/03/2010 Covers Provisions relating to entry permit, format of application for entry permit, format of entry permit of plants or plant products, format of entry permit of biological control agents, beneficial organisms, format of entry permit of soil, moss, peat and other plant growing means, format of entry permit of germplasm / living modified organism / genetically modified organism / transgenic substance, format of information to be given in the case of inappropriateness to issue, format of application for the renewal of entry permit, format of application to be submitted for permit of entry at entry point. Format of clearance slip, format of application for phytosanitary certificate, format of phytosanitary certificate, plant re-export phytosanitary certificate, format of information to be given in the case of inappropriateness to issue Phytosanitary certificate, format of application for permit to carry consignment in transit, format of entry permit to carry consignment in transit and format of charge sheet.
Iodized salt (Production, Sale and Distribution) Act 21/01/2010 covers provision for the production, import, supply, sale, distribution of iodized salt in a proper quantity.
Animal Health & Livestock Services Rules 2007 Covers provisions relating to animal quarantine, Letter of Recommendation, Method of disinfection, miscellaneous, Format of Quarantine Certificate, Health Certificate for Dog and Cat for Domestic or Wild Animal, for Semen of Animal. Also Format of the Sanitary Certificate for Meat of Domestic Animal, for Product of Animal Origin purposed for use in Animal Feeding, Pharmaceutical or Industrial Use, Animal Health Certificate for Equines, Avian, Eggs, Day-Old Chicks, Other Newly-hatched Avian Species and Hatching Eggs. Format of the Application for Letter of Recommendation.
Slaughter & Meat Inspection Regulation 2001 Covers: Establishment of Slaughter house in Non-governmental sector; Establishment & Operation of a Slaughterhouse; Obtaining of license by Meat seller; Slaughtering animal in various places other than established; Terms & Conditions to comply by meat sellers; Procedure for Animals’ Ante-mortem and Post-mortem Examination.
Consumer Protection Act 28/01/1998 Covers prices of consumer goods or services, ensuring that no one lowers or removes the attributes or usefulness of consumer goods or services, preventing circumstances in which some mafias or groups vary prices due to mal practices, as well as by inappropriate way of creating propagations for selling products by claiming use and usefulness of consumer goods or services.
Mother's Milk Substitutes (Control of Sale & Distribution) Rules 14/08/1994 Covers the Regulation, among other things, provides for applications for the certification of infant food products; applications for the approval of labels.
Prohibitions in laws of Nepal for Food business have following key points: No person shall produce, sell, distribute, export or import the adulterated foodstuffs or sub-standard foodstuffs or possess such foodstuff for any of such purposes. No person shall sell or distribute any foodstuff in the name of any other foodstuffs or any foodstuff below the standard in the name of the foodstuff of higher standard by lying or misleading. The designated authority may, if he/she suspects that any foodstuff is adulterated or substandard can seal out the foodstuff. The Government of Nepal may confiscate such foodstuff by the order of the designated authority upon considering the gravity of crime, its nature and harm it may cause upon final settlement holding that such foodstuff. A person who produces, sells, distributes, exports or imports the sub-standard foodstuffs may be penalized with a fine from One Thousand Rupees to Two Thousand Rupees for the first time and for second time fine ranges from two to five thousand rupees with penalty of six months to one year of imprisonment. Moreover, one who will sell, export, import or distribute food i.e. adulterated can be penalized with a fine from Five Thousand Rupees to Ten Thousand Rupees or with an imprisonment for a term from one year to two years or with both. If any person upon consuming any adulterated foodstuff is likely to die or dies or sustains an irreparable damage to the body or is likely to sustain such damage, the person who produces, sells or distributes such adulterated foodstuff may be penalized with a fine from Ten Thousand Rupees to Twenty Five Thousand Rupees and with a penalty of three years imprisonment in jail and he/she will have to allocate twenty five to one hundred thousand to victim of such adulterated foodstuff or his/her heir. Adjudicating authority, The Chief District Officer shall have powers to originally try and settle the cases under this Act. A person not satisfied with the decision of the Chief District Officer may file an appeal in the Court of Appeal within 35 days from the date of such decision.
The Government of Nepal may issue orders from time to time setting out within what limitation the quality, standard or amount of any ingredient shall have to be used in any foodstuff. Such an order shall be published in the Nepal Gazette.
A person having intentions to sell, produce, distribute, process or store certain foodstuffs shall have to obtain license to do so.
Provisions relating to entry permit, sanitary certification and re-export Certificate: A person or body wishing to import plants, plant products, biological control agents, beneficial organisms or means of growing plants such as soil moss bought for this purpose shall have to obtain the permit of entry. To import plants, plant products, biological control agents, beneficial organisms or means of growing plants such as soil, moss and pit one shall make an application in such form, to such authority and accompanied by such documents and fees as may be prescribed. Entry permit term shall be valid for a period of three years. To get the entry permit renewed one shall make an application to the prescribed authority for the renewal of entry permit in advance of seven days prior to the expiration of the entry permit. Before entering any plants, biological organism, plant products or any beneficial organism one has to obtain a permit for further proceedings.
The procedures for obtaining the entry permit shall be as prescribed. A person or body wishing to export plants, plant products, biological control agents or beneficial organisms may obtain the phytosanitary certificate. A person or body wishing to re-export to another country any plants, plant products, biological control agents or beneficial organisms imported into Nepal may obtain the re-export phytosanitary certificate.
A person or body wishing to obtain the phytosanitary certificate shall make an application in such form, to such authority and accompanied by such fees as may be prescribed. If any person or body intends to carry to another country via the route of Nepal any consignments of plants and plant products or other articles in-transit, such person or body shall make an application to the Office in such form and accompanied by such fees as may be prescribed. Carriage of consignments needs to have some regulations being adopted in order to have your application approved.
So to sum up we can say that in order to do business within Nepal one has to go through all these regulations and fill the prescribed application forms and go through all the formalities. As they all say, it’s not always easy but in the end it’s all worth it.
Referances:
- Nepal Bureau of Standards and Metrology, Government of Nepal
- Department of Food Technology and Quality Control (http://www.dftqc.gov.np/)
- Ministry of Livestock Services Department (http://www.dls.gov.np)
- Department of Agriculture (http://www.doanepal.gov.np/ne/)
- Ministry of Health (http://www.mohp.gov.np/)
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