Alcohol regulations in Nepal

Licences needed

Company Incorporation Certificate, Industry Registration Certificate from DoI, Environmental Clearance (IEE/EIA), Food Safety/Hygiene Approval from DFTQC, and Excise Manufacturing License from the IRD.

Authority

Department of Industry (DoI) and Inland Revenue Department (IRD)

Documents

Certificate of incorporation, Memorandum and Articles of Association (MoA/AoA), PAN/VAT certificate, Detailed Project Report (DPR), land ownership or lease agreement, environmental clearance approval, factory layout, machinery specifications, and appointment letters of qualified technical staff (food technologist/alcohol technologist).

Fees

not confirmed

Time to obtain

not confirmed

Who can import

Legally incorporated commercial entities and registered trading firms in Nepal possessing an active EXIM Code and valid IRD Excise License.

Licences or registrations

EXIM Code (issued by the Department of Customs), Commercial Business Registration, PAN/VAT Registration, and Excise License for Import/Wholesale from the IRD.

Authority

Department of Customs and Inland Revenue Department (IRD)

Documents

Company registration, PAN/VAT certificate, EXIM registration certificate, tax clearance certificate, IRD excise permit, proforma invoice, and bank documents/letter of credit.

Fees

not confirmed

Time to obtain

not confirmed

Required

yes

Process

Imported and manufactured spirits must undergo label approval to comply with consumer protection, excise, and food standards. Importers and distillers must register product details and labels with the Inland Revenue Department (IRD) for excise banderole/sticker issuance and ensure formulations align with Department of Food Technology and Quality Control (DFTQC) standards.

Authority

Inland Revenue Department (IRD) and Department of Food Technology and Quality Control (DFTQC)

Documents and samples

Specimen label artwork, product specification sheets, Certificate of Analysis (CoA) from an accredited laboratory, and sample bottles if requested during customs or regulatory clearance.

Fees

not confirmed

Renewal

Excise licensing is renewed annually in the Nepali month of Shrawan; label approvals remain valid unless product composition, ABV, or label design is altered.

Time to obtain

not confirmed

Commercial import requires an EXIM code and an IRD excise registration. Importers must affix mandatory IRD excise duty strip stamps (covered with shrink caps for distilled spirits) before clearance or distribution. Shipments require commercial invoices, bills of lading/airway bills, packing lists, Certificate of Origin, and Certificate of Analysis. The Government of Nepal occasionally uses temporary import suspensions or foreign exchange restrictions on non-essential/luxury goods during balance-of-payments pressures.

Spirits under HS Heading 2208 incur high ad valorem customs duties (commonly 80% to 100% depending on the specific tariff line), alongside specific per-litre excise duties and 13% Value Added Tax (VAT).

Distilled spirits face specific excise duties assessed per litre based on alcoholic strength/proof level (under-proof rating) fixed via the annual Finance Act. A standard 13% Value Added Tax (VAT) applies to the cumulative sum of customs value, customs duty, and excise duty. Retail outlets are required to be registered under the VAT system.

Distribution is conducted through private licensed wholesalers and retailers (liquor shops, department stores, hotels, bars, and restaurants). Retailers require local municipality/ward business permits under the Local Government Operation Act 2074 and an excise certificate from the local Inland Revenue Office. Municipalities and administrative orders restrict retail operating hours (commonly permitting off-premise sales only within designated afternoon/evening windows) and ban establishments near schools and religious sites.

banned

Mandatory particulars include brand name, product category, alcohol strength (% ABV), net volume (in ml/L), batch number, date of manufacture, name and address of producer/importer, Maximum Retail Price (MRP), and IRD excise stamp. Must display the statutory health warning (e.g., 'मदिरा सेवन स्वास्थ्यका लागि हानिकारक छ' / 'Alcohol consumption is injurious to health') and the restriction on sale to individuals under 18 years of age.

Banned. The Supreme Court of Nepal and the Advertisement Board have enforced a strict comprehensive prohibition on all alcohol advertisements, sponsorships, and promotional material across print, television, radio, online digital media, social networks, and outdoor hoarding boards under the Public Health Service Act 2075 and Advertisement (Regulation) Act 2076.

Food safety and beverage compositional standards are administered by the Department of Food Technology and Quality Control (DFTQC) and the Nepal Bureau of Standards and Metrology (NBSM). Standards define distilled spirits (whisky, rum, gin, vodka, brandy) and specify limits on volatile acidity, esters, methanol, and permissible artificial colourings/flavourings, generally requiring minimum strength grades (commonly 25° U.P. / 42.8% ABV or 40% ABV for standard spirits).

Alcohol sales and consumption are strictly prohibited in the immediate vicinity of schools, colleges, healthcare institutions, public sports facilities, and designated cultural and religious heritage sites (such as the Pashupatinath temple area in Kathmandu). Certain local rural municipalities and district administrations periodically enact local prohibitions.

• Full enforcement of the complete ban on alcohol promotion, digital marketing, and outdoor hoarding advertisements by the Advertisement Board pursuant to Supreme Court orders.
• Expansion of mandatory VAT registration and strict compliance tracking for liquor retailers regardless of annual turnover thresholds.
• Advancement of government and provincial policy roadmaps to standardize, brand, and legally commercialize traditional indigenous alcoholic beverages (raksi and chhyang).

Nepal has sustained demand for premium and super-premium imported spirits, particularly Scotch whiskies, single malts, and brandies, driven by high-end tourism, expatriate communities, and rising urban disposable incomes. However, commercial viability requires navigating heavy cumulative customs duties, strict excise stamp requirements, and a total ban on consumer advertising.

• Inland Revenue Department (IRD)
• Department of Customs
• Department of Food Technology and Quality Control (DFTQC)
• Department of Industry (DoI)
• Advertisement Board of Nepal

1. Pradhan & Associates - Ban on Advertisement of Alcoholic Beverages in Nepal
2. Inland Revenue Department, Ministry of Finance, Government of Nepal
3. Department of Customs, Ministry of Finance, Government of Nepal
4. Department of Food Technology and Quality Control (DFTQC)
5. Liquor Act 2031 (1974) and Excise Duty Act 2058 (2002) Legal Overview - Law Alpine / GFCS