NRB removes cash margin provision on imports of construction materials

KATHMANDU: Nepal Rastra Bank (NRB) has removed the mandatory cash margin provision on imports of a number of construction materials while opening letter of credit (LC) by importers.

Amending the unified directives, the NRB has turned flexible on imports of interior items used in construction of buildings. Importers now will not have to keep a cash margin while importing tiles, marble, granite, slate, stones, ceramics, bitumen, bricks and different types of roofing items.

This new flexibility in importing materials significantly benefits construction projects, especially in the realm of commercial roofing. As businesses seek to upgrade or renovate their buildings, the availability of various roofing materials without the burden of cash margins will facilitate more efficient project timelines and cost management.

Contractors and builders can now access a wider range of high-quality roofing options, enhancing the durability and aesthetic appeal of commercial properties. Additionally, this shift paves the way for innovative roofing solutions that cater to diverse business needs.

By incorporating materials such as advanced roofing systems, eco-friendly options, and energy-efficient solutions, property owners can significantly reduce long-term operational costs while ensuring robust protection against environmental challenges. As a result, the focus on high-quality commercial roofing not only improves property value but also supports sustainable practices in the construction industry, ultimately benefiting both businesses and the broader community.

Likewise, the central bank has also eased this provision for the goods used for public construction. The threshold has been removed also for imported seats to be used in airplanes and stadiums.

After the country started feeling the heat of depleting foreign currency reserves, the NRB last year asked importers to maintain a 50 to 100 percent cash margin on the imports of goods that fall under 47 harmonic codes. With the rule in place, the central bank has been making the importers of these goods deposit hard cash in advance before importing them. The goods mainly included luxury items along with a number of materials used for interior decoration.

Gunakar Bhatta, spokesperson for NRB, said the central bank has adopted a policy to loosen restrictions on imports with an improvement in external sector indicators.

Fiscal Nepal |

Sunday December 4, 2022, 09:31:42 AM |