Department of Industry’s notice on obtaining recommendation for payment to foreign service providers by industry established in Nepal for availing services from such parties.

Department of Industry(“DOI”) has published a notice dated 16th Ashwin, 2077 (2nd October 2020) about approaching DOI for recommendation for payment in foreign currency to foreign service providers under the agreements executed by industries established in Nepal for availing services from such parties. The Notice, referring to the decision of meeting dated 8th Ashwin, 2077 (24 September 2020) between the officials of Nepal Rastra Bank and DOI, had requested all applicants to file all such agreement within 15 days from the date of this notice.

The Notice also requires those industries while availing services from the foreign service providers to mandatorily obtain approval of the DOI as per the Foreign Investment and Technology Transfer Act, 2075 (2019) (“FITTA”) for the technology transfer agreement and has further clarified that DOI will neither grant approval nor recommendation for payment towards such services failing to obtain approvals from DOI as required by FITTA.

Subscribe to our Newsletter

Pioneer Law is full service law firm in Nepal.