December 19: The Nepal Rastra Bank (NRB) has extended the timeline for the designated banks to roll out the subsidy on exports to the domestic exporter companies that meet the criteria to receive the amount.

Earlier, the NRB had been providing the subsidy amount received from the Ministry of Finance to the exporters through various banks within seven days after receiving the claims made by the exporters. Issuing a notice on Sunday, the central bank said it has now amended the provision to extend the timeline to 15 days.

The NRB has already notified Banks and Financial Institutions regarding the new provisions which have come into force with immediate effect.

Two months ago, the government had decided to give subsidy on exports of 36 different goods by making the first amendment to the Procedures on Providing Subsidy on Goods Export, 2075 BS. As per the new amendment, 18 types of goods should have 50 percent value added and 18 others should have 30 percent.    
According to the NRB notice, those requiring to have 50 percent value added goods include processed tea, processed coffee, handicraft products (copper, iron, brass and goods with glass as raw materials) and woodcrafts. Processed leather, handmade paper and goods produced from them, processed and semi-processed herbs (including Yarsagumba), processed stone, Allo products, processed drinking water, processed and semi-processed turmeric, fresh vegetables, flower, processed honey, cardamom and ginger should also have 50 percent value added.    
The new procedures have come up with the provision to give subsidy for the third country export of dairy products, fruits and broom grass.    
The exporters are entitled to receive subsidy amount equal to five percent of the total export and one percent additional subsidy would also be given if the export is made by adding 80 percent value of those goods.    
Those requiring to have 30 percent value added goods to claim subsidy include clothes and readymade garments produced in Nepal, woolen goods, pashmina, jute and jute products, gold and silver jewelries, semi-processed domestic leather, medicines, polyester/yarn/fiber, slipper, clinker, cement, steel, plywood and others.

Amount equal to four percent would be availed in subsidy from the government for the exports of such goods. (With inputs from RSS)