Yes

12 FEB 02

Yes

 15 SEP 14 

Yes

  08 AUG 11 

Yes

 12 OCT 00

Yes

SAARC, BIMSTEC

• All UN agencies and Government approved international donors’ offices that are allowed to be operational are exempted from tax and duties. However, they have to apply for exemption for each and every transaction or activity. It is based on their basic agreements signed with the host government that UN agencies and international donors’ offices are exempted from tax and duties.
• The details of the customs code articles/ decrees are found in the website.

http:// www.mof.gov.bt

Sales Tax:

Chapter 2 of SALES TAX, CUSTOMS AND EXCISE ACT OF THE KINGDOM OF BHUTAN, 2000 states that:

1.1  Foreign Diplomatic Missions, International organizations and agencies shall be exempted from paying Sales Tax; provided that exemption thereof, is in accordance with the obligations under international conventions, covenant, existing multilateral or bilateral agreements signed with the Kingdom of Bhutan.

1.2  On the satisfaction and in the public interest, the Ministry of Finance may exempt a person from the payment of Bhutan Sales Tax.

1.3  Any person importing goods on behalf of an exempt organization shall pay Sales Tax at the point of entry.

1.4  Refund of the Sales Tax levied under Sub-section 3.3 above and that of local purchases shall be made to the exempt organization

1.5  Exemption under Sub-section 3.1 to 3.4 above shall be in accordance with the rules prescribed by the Ministry.

Customs duty:

• Foreign Diplomatic Missions, International organizations and agencies shall be exempted from paying Customs duty provided that exemption thereof, is in accordance with the obligations under international conventions, covenant, existing multilateral or bilateral agreements signed with the Kingdom of Bhutan and rules thereto, prescribed by the Ministry.
• On the satisfaction and in the public interest, the Ministry may exempt a person from the payment of Customs duty.

Chapter 13 of SALES TAX, CUSTOMS AND EXCISE ACT OF THE KINGDOM OF BHUTAN, 2000 states that:

The import of the following goods into Bhutan is restricted.

1. Arms and Ammunition.
2. Explosive and explosive device.
3. Animal and plant classified as endangered species and their parts and products;
4. Industrial and toxic wastes and their parts and products:
5. Wireless and remote sensing telecommunication and broadcasting equipment;
6. Chemicals of certain kinds as notified by the National Environment Commission Secretariat;
7. Scraps as notified by the National Environment Commission Secretariat;
8. Used or second hand goods, vehicles, machinery and equipment;
9. Any goods which do not have domestic market in Bhutan; and
10. Any other goods which are restricted by any other laws in force.

The import of the following goods into Bhutan is prohibited.

1. Narcotics and psychotropic drugs and substances;
2. Pornographic materials; and
3. Any other goods which are prohibited by any laws or international conventions or treaties to which Bhutan is a signatory.

Sale of duty exempt Vehicles

1. Sale of transfer of vehicles imported under exemption basis by persons shall be liable to pay Customs duty, taxes, fees and charges.
2. Officials of Diplomatic Missions, International organizations and experts may instead of new vehicles bring in their used and second hand vehicles along with them on their transfer to Bhutan. Such vehicles however shall not be permitted to be sold or transferred to any Bhutanese or privileged persons and shall have to be re-exported on his repatriation.
3. The sale or transfer of vehicles by the Foreign Diplomatic Missions and International organizations whether by public auction or tender, the buyer if not a privileged person shall pay the Customs duty, taxes, fees and charges.
4. No Customs duty shall be levied if a vehicle imported under exemption basis is sold or transferred after 5 year of its registration in Bhutan.
5. Unauthorized import where a vehicle of a third country origin is imported into Bhutan without an authorization, it shall be confiscated without notice pursuant to Section 10 in the General Provisions.

Only United Nations offices and its International employees, volunteers and Consultants are eligible for the Duty Free status. However, on every transaction and activity exemption certificates need to be obtained from the concerned authorities. A detail procedure is explained below under sub heading C) Exemption Certificate Application Procedure.

The government recognised NGO’s and their international employees and expatriates are exempted from duty and taxes. However, on every transaction and activity exemption certificates need to be obtained from the concerned authorities. Detail procedures are explained below under subheading

Exemption Certificate Application Procedure

The documents required to apply for an exemption certificate are as follows:

1. Import license.
2. Application for exemption duly signed by the representative or the officer in charge.
3. No Charge Invoice.

The Procedure is highlighted in the form of a flow chart in a step by step process.

1. Import licenses can be processed from: Department of Trade, Ministry of Economic Affairs. The import license form can be downloaded from this website.(www.trade.gov.bt)
2. IDEC (Import Duty Exemption Certificate) and BST (Bhutan Sales Tax Exemption certificate can be processed from: Department of Revenue and Customs, Ministry of Finance (www.mof.gov.bt). 

The forms should be properly filled and necessary documents as mentioned in the form need to be attached.

WFP Bhutan has the same clearing agent as the WFP Nepal Office.

The following are the steps to complete the customs formalities while procuring commodities internationally or receiving international in-kind donation. 

Procedure to obtain Import License

The CO (Country Office) has to write an Official letter duly signed by Representative/OIC to the Joint Director, Department of trade. The letter should be attached with: (Max 4 working days to obtain the Import license). 

Procedure to Obtain Exemption certificate for Bhutan Sales Tax (BST) and IDEC

Download the forms from the websites: http://www.mof.gov.bt/downloads/28form_cd-1.pdf. (For IDEC) and http://www.mof.gov.bt/downloads/45form_st-2.pdf. 

Write an Official letter duly signed by the Representative/OIC to the Director, Department of Revenue and Customs, Ministry of Finance.

Attached the filled forms duly signed by the Representative/OIC affixing the official seal (IDEC and BST) and a copy of Import License, Bill of Lading and No Charge Invoice. 

-Yes

-One copy of Original Proforma.

-Applies to both UN and NGO

-Yes

-One copy of Original Proforma.

-Applies to both UN and NGO

-Yes

-One copy of Original Proforma.

-Applies to both UN and NGO

-Yes

-One copy of Original Proforma.

-Applies to both UN and NGO

-Yes

-One copy of Original Proforma.

-Applies to both UN and NGO

-Yes

-One copy of Original Proforma.

-Applies to both UN and NGO

No

No

No

No

No

No

Non-Commercial Certificate

Non – Commercial certificate.

Non – Commercial certificate.

Non – Commercial certificate.

Non – Commercial certificate.

Non – Commercial certificate.

Packing list.

No

No

No

No

No

No

No

Clearance From Drug Regulatory Authority, Ministry of Health.

No

No

Clearance from Bhutan Information Communication and Media Authority, Ministry of Information and Communication.

Additional Notes

Two forms, BST & IDEC must be filled and submitted to Department of Revenue and Customs with other documents as mentioned above in the flow chart.

Proforma invoice and Non commercial certificate.

None

1. Narcotics and psychotropic drugs and substances;
2. Pornographic materials; and
3. Any other goods which are prohibited by any laws or international conventions or treaties to which Bhutan is a signatory.

1. Arms and Ammunition.
2. Explosive and explosive device.
3. Animal and plant classified as endangered species and their parts and products;
4. Industrial and toxic wastes and their parts and products:
5. Wireless and remote sensing telecommunication and broadcasting equipment;
6. Chemicals of certain kinds as notified by the National Environment Commission Secretariat;
7. Scraps as notified by the National Environment Commission Secretariat;
8. Used or second hand goods, vehicles, machinery and equipment;
9. Any goods which do not have domestic market in Bhutan; and
10. Any other goods which are restricted by any other laws in force.

Proforma invoice and non-commercial certificate.

None

1. Narcotics and psychotropic drugs and substances;
2. Pornographic materials; and
3. Any other goods which are prohibited by any laws or international conventions or treaties to which Bhutan is a signatory.

1. Arms and Ammunition.
2. Explosive and explosive device.
3. Animal and plant classified as endangered species and their parts and products;
4. Industrial and toxic wastes and their parts and products:
5. Wireless and remote sensing telecommunication and broadcasting equipment;
6. Chemicals of certain kinds as notified by the National Environment Commission Secretariat;
7. Scraps as notified by the National Environment Commission Secretariat;
8. Used or second hand goods, vehicles, machinery and equipment;
9. Any goods which do not have domestic market in Bhutan; and
10. Any other goods which are restricted by any other laws in force.

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

Yes, Original, 1 copy, applies to both UN and NGO

No

No

No

No

No

No

No

Clearance from Drug Regulatory Authority.

No

No

No

For medicinal items, clearance needs to be obtained from the Drug Regulatory Authority. For telecommunication items clearance needs to be obtained from BICMA (Bhutan Information, Communication and Media Authority).

Import Goods

1. All goods imported by land, sea or air shall be deposited in the Customs area and remain under Customs control until they have been cleared on presentation of import documents.
2. No goods shall be removed from the Customs area or otherwise dealt with without the written permission from a Customs Officer not below the rank of Assistant Commissioner.
3. Ownership of imported goods shall vest with the Royal Government, if not cleared from Customs control or moved to the approved Customs warehouse by the importer within 90 days from the date of arrival. Such goods may be disposed off by the Department through public auction or tender.
4. Notwithstanding Sub-section 16.5 [p2] above hazardous or dangerous goods as well as animals and perishable goods may be disposed off within 48 hours.
5. Removal of goods from Customs control shall be allowed on payment of duty and tax, or on execution of a bond in the form of security or collateral equivalent to the tax and duty.
6. Import and disposal of goods by privileged personnel Rules on import and disposal of goods by the officials of Diplomatic Missions and International organizations shall be prescribed by the Ministry.

Export goods

1. All export goods by land, sea or air shall be allowed on presentation of export documents.
2. The procedure for the clearance of export goods shall be as prescribed by the Ministry of consultation with the concerned authorities.

Declaration

1. All imported and export goods whether dutiable or exempted shall be declared to Customs at the entry and the exit points.

Clearing and Forwarding agents

1. Only licensed and registered clearing and forwarding agents shall be permitted to act as agents for the importer and the exporter.
2. License/permits for clearing and forwarding agents may be issued by the Ministry of Trade and Industry on recommendation of the Ministry.
3. Registration of clearing and forwarding agents and the conditions thereof shall be laid down by the Ministry

Goods in transit

1. A transit permit issued by the Regional office or its authorized check posts shall accompany the goods in transit from one part of Bhutan to another through Indian territories.
2. Movement of goods in transit to and from Bhutan through Indian territories shall be governed by the Protocol to the Agreement on Trade and Commerce between the Royal Government of Bhutan and the Government of the Republic of India.
3. The owner of the goods shall be liable to pay Customs duty including fines and penalties under the Provision of this Act, where the loss of goods in transit is proved to be caused by negligence, default or any willful act or omission.