Kathmandu. The state has lost revenue worth Rs 7.49 billion due to the exemption of customs and excise duty on the import of unassembled vehicles. According to the report of the Audit General, various customs offices have given customs duty and excise duty exemption on motorcycles, scooters, auto-rickshaws and other vehicles in the name of assembling industries.

According to the Customs Duty Act, 2081 BS, the industries that manufacture vehicles by assembling will get 25 percent discount on customs duty and 50 percent on excise duty while importing unassembled vehicles.  The report states that the vehicle manufacturing company has not submitted any evidence of approval for assembly in Nepal.

The Department of Industry has set conditions for assembling industries to add 30 per cent value from the first year to 50 per cent from the fifth year, to provide direct employment to 50 people in the first year and to use at least 10 per cent of domestic raw materials within five years.

According to the General Rule 29 A of the Harmonized System under the Customs Duty Act, 2081 BS, even incomplete or loose goods should be classified as finished goods. On that basis, Title 87. 03 and 87. According to the report, the vehicles brought under CKD under Section 11 should be classified as ready-made vehicles and they should be charged.

According to the report, the highest revenue collection of Rs 4.79 billion has been collected at Bhairahawa Customs Office. Similarly, the Birgunj Customs Office collected Rs 2.58 billion while the Dry Port Customs Office in Parsa collected Rs 106.87 million.

The Office of the Auditor General has directed the bodies concerned to investigate the revenue exemption amounting to Rs 7.49 billion through five customs offices and find out the reality.