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Department of Industries (“DOI”) on 3rd November has published the conditions for the establishment of Motorcycle Assembly Industry by importing complete knockdown i.e completely unassembled parts of a vehicle, to be assembled into a complete vehicle in a customer’s plant. Currently, a number of industries have been assembling motorcycles in Nepal by importing completely unassembled parts of the motorcycle. 

Motorcycle Assembling Industries are required to comply with the following conditions to assemble motorcycles in Nepal.

  1. Domestic value addition of at least 10 percent in the first year of operation and at least 30 percent by the end of fifth year. 
  2. Employment of at least 50 direct employees in the first year in t he industry and at least 200 direct employees by fifth year of operation. 
  3. Use of at least 10 percent domestic materials within fifth year of operation.  
  4. Completion of Environmental study and Safety Standard by Committee formed with the representative from Department of Environment, Department of Transport, Department of Industry and/or any additional relevant governmental agencies.  

To download the pdf of Conditions for the establishment of Motorcycle Assembly Industry in Nepal click here.

Disclaimer: This note shall not be treated as a legal opinion and it is advised to consult a lawyer for legal advice. This note is for general understanding only. Please note that the copyright for this note vests on Vidhi Legal Concern