Customs Information

• Import of goods from third countries, other than those brought as bonafide baggage including unaccompanied baggage by travelers or goods brought through Posts and Courier, or those arriving directly into Bhutan by air shall require Import Licenses issued by the Ministry of Finance. (The responsibility of issuing import license will be transferred to the Department of Trade, Ministry of Trade and Industry shortly)
• Any person importing any goods other than those mentioned in (a) above into Bhutan without an Import License, or brings goods of a value, kind, quality or quantity grossly different from that specified in the Import License shall be liable to fines and penalties as per the provision laid down under Sections 10 and 16 of the General Provision of the Sales Tax, Customs and Excise Act 2000.

• Customs copy of Import License, where applicable;
• Special permits in original copy in case of restricted goods, where applicable;
• Bill of Lading/Airway Bill/ duly endorsed by the importer;
• Invoice attested by the bank through which payment has been made, where applicable;
• Packing List;
• Certificate of Origin; and
• Marine/Air/Transit insurance policy where applicable.

The Customs authorities may dispose off the goods through public auction or tender. if any imported goods are not cleared from the Customs control by the importer within 90 days including holidays from the date of arrival.

Customs Clearance

• The importer or his authorized agent shall present to the Customs authorities, the Import Declaration Form given in CD Form-III at the time of clearing the goods from the Customs.
• The Import Declaration form shall contain the full particulars of the imported goods and shall bear a declaration by the importer as to the truth of its contents, which must be supported by a duplicate copy of the shipping documents and the invoice, attested by a bank.
• Wherever necessary the Customs Officer shall carry out a physical verification of the goods.
• If satisfied with the verification, the Customs Officer shall make an order permitting clearance of the goods on realization of Customs duty and Sales tax as per the Bhutan Trade Classification, Bhutan Sales Tax Schedule and Customs Tariff and any other applicable charges.
• Where an importer has appointed a clearing agent, all correspondences and the release of goods shall be done through the concerned clearing agent.

Agency Commission and Service Charges
Goods imported through a territory of India are cleared and transported under bond to the designated customs station in Bhutan. Goods may be cleared by the importer or by a clearing agent appointed by the importer. The following fees shall be collected by the Department as per the provision laid down under Section 37 of General Provisions of Sales Tax, Customs and Excise Acts 2000:

• Agency commission @ 1% on CIF value on goods cleared by the Department: and
• Service charge @ 0.25% on CIF value of goods cleared by the Customs clearing agents.

Re-import of Goods
Any imported goods exported out of Bhutan shall be allowed to be re-imported free of customs duty and taxes, provided that:

• At the time of export of such articles, a declaration was made to Customs authorities in form as prescribed under Export Declaration Form given in GP Form-II, and the same is presented to the Customs for clearance on re-importation;
• The Custom Officer is satisfied that the articles are the same and have not undergone any alteration and repair; and
• Any alteration and repair of such article however, shall be liable to Customs duty and taxes on the cost of alteration and material used for repair.

Replacement of Goods
Any goods imported on replacement of previously imported goods due to goods being defective, obsolete, damaged, or any other conditions shall be subject to levy of duty.

• Export Declaration Form as prescribed GP Form-II;
• Commercial invoice;
• Packing list;
• Certificate of origin issued by the Ministry of Trade and Industry;
• Insurance documents, if any;
• Shipping bill; and
• Export license/permit.

Declaration
The exporter of any goods shall present the Export Declaration Form (GP Form-II) and Shipping Bill as prescribed under CD Form IV duly filled up and present the same to the Customs officer. The export declaration form shall contain true and full particulars of the export goods and shall bear a declaration as to the truth of its contents.

The Customs Officer, on being satisfied with the declaration made after examination of the goods, if necessary, shall ensure the following:

• The goods are covered by license/permit, where applicable; any restricted and prohibited goods including religious artifacts such as statues, books and paintings must be accompanied by a permit for export; and
• Export duty and taxes, if any, have been paid and the goods have been sealed, he may pass an order permitting clearance of goods for export.

Valuation
Valuation on export goods shall be on Free on Board (FOB) exit point in Bhutan.

Re-export of Goods on Transfer of Residence
Person shifting their residence on completion of their assignment in Bhutan shall produce the goods to the Customs authorities along with a copy of the shipping bill and a packing list. The Customs Officer, after examination of goods where necessary shall seal the goods and issue permission for re-export on collection of sealing and strappling fees as mentioned in below.

Sealing and Strappling Fees
For sealing and strappling of any goods, a containers or a vehicle, sealing and strappling fee as per the rates prescribed below shall be charged and collected by the Department:

• Plastic material Nu. 50 per package/carton up to a length 3ft, breadth 2ft and height 1ft.
• Plastic material Nu. 75 per package/carton above a length 3ft, breadth 2ft and height 1ft.
• Steel material Nu. 75 per package/carton up to a length 3ft, breadth 2ft and height 1ft.
• Steel material Nu. 100 per package/carton above a length 3ft, breadth 2ft and height 1ft.
• Container/ vehicle sealing charges Nu. 100 per seal.

• He shall be a Bhutanese national and shall produce a tax clearance certificate of no dues to the Royal Government.
• He shall disclose to the satisfaction of the customs authorities that he is financially viable and in support thereof he shall produce a certificate issued by a bank or such other proof acceptable to the Customs authorities.
• He shall deposit a sum of Nu. 1,00,000 in the form of bank guarantee.
• He shall be required to have thorough knowledge of relevant Customs laws, Rules & procedures as laid down in Customs Act and Rules thereto.
• He shall be required to have a furnished office with telecommunication network and computer facilities.
• The application shall be made in GP Form-III.

Scrutiny of an Application
On receipt of the application, the Customs authorities may make enquiries for verification of the particulars set out in the application and also such other enquiries as the Customs authorities may deem necessary. If the Customs authorities are satisfied that the applicant fulfills the requirement of the registration, the issue of trade license/permit by the Ministry of Trade and Industry shall be recommended.

Registration

• Upon issuance of a trade license/permit based on the recommendation of the Department of Revenue & Customs, the said applicant may be so registered as an authorized Customs clearing agent. The registration shall be done in GP Form-IV.
• The registration shall be valid for a period of three years. On expiry of the validity period, the Department of Revenue & Customs, may, renew the registration for a period of three years provided:
  • The performance of the authorized Clearing Agent is found to be satisfactory.
  • The authorized Clearing Agent has not violated any of the obligations specified below.

Obligations of Customs Clearing Agent
An authorized Customs Clearing Agent shall

• Obtain an authorization from each of the consignees for whom it has been appointed to act as agent for clearance of goods through the Customs;
• Advise his client to comply with the provisions of the Act and in case of non-compliance, shall bring the matter to the notice of the Customs authorities;
• Not withhold information relating to assessment and clearance of imported goods communicated by any officer of Customs from a client who is entitled to such information;
• Not withhold any information relating to assessment and clearance of imported goods from the assessing officer;
• Not procure or misuse any restricted information from the Department or any other office of the Royal Government;
• Not attempt to influence the conduct of any official of Customs in any matter pending before such official or his subordinates by the use of threat, false execution, duress or offer of any special inducement or promise of advantage or by the bestowing of any gift or favour or other things of value;
• Maintain proper records and accounts in such forms and manner as may be directed by the Customs authorities and submit them for inspection whenever required and not tamper with any official documents;
• Ensure that all documents prepared or presented by him are strictly in accordance with the legal requirements and contain no false or misleading information;
• Ensure that he discharges his duties as clearing agent with integrity and efficiency both to Customs and his client;
• Enter into an agreement with the Department and comply strictly with the conditions laid down in it;
• If the goods are pilfered, lost, damaged or abandoned while in transit to Bhutan, the customs duty applicable shall be realized from the concerned clearing agent. In addition, any other liabilities payable to the Royal Government of Bhutan and the Government of India shall also be realized from them;
• Any change in the terms of Trade and Commerce Agreement between the Royal Government of Bhutan and the Government of India may automatically entail a change likewise in the terms of these conditions; and
• The clearing agent shall pay applicable customs duties, taxes, 0.25% service charge on the CIF value of goods and other charges if any and furnish the following documents for release of goods from the Customs control:
  • Importer's copy of Import license;
  • Bill of lading/airway bill;
  • Invoice attested by the bank through which payment has been made;
  • Packing list;
  • Certificate of origin;
  • Insurance policy documents;
  • Import duty exemption certificate and Bhutan Sales Tax Exemption Certificate wherever applicable; and
  • Import declaration form duly filled up in all respects.
  • Where a Bhutanese clearing agent has appointed or authorised an Indian clearing agent to clear goods in India, he shall be fully responsible for all acts of Indian clearing agents and also ensure that the Indian agent completes the following formalities:
    • Authorisation for clearance of goods in India shall be issued by the Bhutanese clearing agent to the Indian clearing agent for each consignment;
    • The authorized Indian clearing agent shall approach the Liaison & Transit Office, (LTO) or Regional Office along with the original shipping documents, original import license and a letter of authority issued by the Bhutanese clearing agent;
    • If the documents are found to be in order, the LTO or RRCO shall authorise the concerned clearing agent for clearance of goods;
    • The clearing agent shall keep the LTO or RRCO fully informed with regard to the progress in the clearance activities;
    • The clearing agent shall obtain the road documents from the LTO before the dispatch of the goods to Bhutan;
    • In case demurrages are incurred on goods, the same shall be directly settled by the clearing agent with the importer and the Department shall have no arbitration role in the dispute;
    • Wherever necessary, the clearing agent shall employ surveyors at ports to conduct surveys on the goods before they are dispatched to Bhutan;
    • The clearing agent shall produce transit insurance documents to the LTO prior to the dispatch of the goods to Bhutan;
    • All goods, which are not of a full truck load, shall be deposited either in the Bhutan Customs warehouse or in the warehouse approved by the Customs authorities of India. The clearing agents, under no circumstances, shall be permitted to store any goods in other storage place. The storage charges shall be realized from the concerned clearing agent as per the prescribed rates;
    • The clearing agent shall