Excise Registration

Excise Registration is a mandatory licensing process under the Excise Duty Act, 2058, for businesses manufacturing, importing, or selling specific “excisable” goods like alcohol, tobacco, and luxury items.

Category Business Registration

Introduction: Excise Registration

In Nepal’s fiscal system, Excise Registration is a specialized tier of tax compliance that goes beyond standard PAN and VAT. It is designed to regulate the production and distribution of goods that have significant health, social, or luxury impacts.

Obtaining an Excise License through Present Consultants Private Limited authorizes your business to legally manufacture, bottle, or import high-value products such as alcoholic beverages, tobacco, and certain industrial raw materials. This registration is the only way to legally purchase excise stamps and move excisable goods from a “Physical Control” or “Self-Removal” warehouse. Without this license, commercial dealing in excisable products is considered a criminal offense, making this step the absolute cornerstone for industry-specific startups and importers in Kathmandu.

Legal Requirements: Compliance Under the Excise Act, 2058

Excise compliance is strictly governed by the Excise Duty Act, 2058, and the Excise Duty Rules, 2059. Under Section 9 of the Act, no person is permitted to manufacture, import, sell, or store goods subject to excise duty without obtaining a formal license from the Inland Revenue Department (IRD).

Failure to maintain compliance can lead to the immediate forfeiture of goods and heavy penalties under Section 16 of the Act.

Mandatory Licensing: Any enterprise involved in the production of alcohol, beer, cigarettes, or the import of vehicles and luxury items must hold a valid excise license before starting operations.
Security Deposit: Under Rule 4, applicants may be required to furnish a cash deposit or bank guarantee, the amount of which varies based on the nature and scale of the excisable products.
Physical vs. Self-Removal System: The Act distinguishes between the Physical Control System (where an excise officer supervises removal) and the Self-Removal System, depending on the sensitivity of the product.
Annual Renewal: Pursuant to Rule 5, the license is valid for one fiscal year and must be renewed by paying the prescribed fee before the end of Ashad.
Daily Record Maintenance: Under Section 10A, licensees must maintain daily production and sales registers (ED-01) and keep these records for at least six years for audit purposes.
Penalty for Non-Compliance: Operating without a license or evading excise duty can result in a fine of up to 100% of the duty amount or imprisonment, as specified under Section 17.

Process: Excise Registration

1. Digital Form Fill Up

We begin by determining your product’s excise liability under the current Finance Act. We then initiate the electronic application via the IRD portal, meticulously entering your business location, nature of products, and manufacturing capacity.

2. Physical form preparation and Submission to IRD

Our team prepares the comprehensive dossier, including the application form, layout plans of the factory, machinery lists, and citizenship copies of directors. We then submit these documents to the respective Inland Revenue Office (IRO) governing your business location.

3. Verification and approval by IRD

The Excise Officer conducts a physical inspection of the premises to verify production capacity and storage security. This step includes Biometric Verification and an assessment of whether the facility meets the standards required by the Act.

4. Certificate issuance by IRD

Upon approval and payment of the registration fee (and security deposit, if applicable), the IRD issues the official Excise License Certificate. This document allows you to legally apply for excise stamps and commence the production or import of excisable goods

Ready for your Excise Registration

Secure Your Industry Standing with a Valid Excise License. Excise laws are among the most strictly enforced regulations in Nepal, requiring zero-error documentation. Contact Present Consultants Private Limited today to manage your Excise Registration, ensuring your manufacturing or import business is fully authorized and legally protected.