http://www.nepalnews.com

Vol. 2 :: No. 12
November, 2000 (Kartik-Mangsir)

2nd Auto-Show Special

Vehicles Being Launched During Auto Show 2000

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Agni Incorporated

Launching: Mahindra Bolero with slogan 'Steel meets silk' & Mahindra savari, both multi-utility vehicles

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Amatya Enterprises

Launching: All-new Pajero 2001 Model, Euro II complaint, all-new monocoque body with built-in frame, 4-wheel independent suspension.

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Arun Intercontinental Traders

Launching: Maruti Alto Vx (1000 cc) & Maruti Alto Lx (800 cc), both with MPFI engine, 4 valves per cylinder, 16 bit computer chips, Euro II complain with slogan "The Hottest Little car in town"

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AVCO International Pvt. Ltd

Launching: New version of Hyundai Santro & Hyundai Accent

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Golchha Organization

Launching: Nebira & Lanos of Daewoo cars & Extol of daihatsu cars

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Morang Auto Works

Launching: YD 125, a 4-stroke Yamaha bike with AIS technology, produced by Yamaha Motor Escorts Ltd.,India.

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Shrestha International Trading Concern

Launching: Kinetic Challenger, (first Indian bike with digital gear display & side stand down lamp), 4 gears, 97.2 cc displacement

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United Traders Syndicate

Launching: Rav-4, ECHO from japan, Qualis from India, (First vehicle Toyota lanuched in India) Soluma and Hilux Tiger from Thailand

Car Tips For the Beginners

If it is going to be your first car try to find a not too expensive, simple car. Such cars will be good for you at the beginning. It’s better to buy such a car from a dealer with a warranty.

But don’t buy the first car you see. There are lots of others that you haven’t checked yet. Usually it takes to check up to ten cars before you find one that is better. Don’t be scared of cars with manual transmission. They are cheaper and more reliable. And if you are young, you’ll learn how to drive it quickly.

Manual or automatic transmission?

Cars with manual transmission cost cheaper. They are more powerful, and expend less fuel. Manual transmission is also more reliable because it’s simpler. This simplicity makes its maintenance cost cheaper. People experienced in driving a car with manual transmission will tell you they like that because it allows the driver to feel ‘closer’ to the car. It’s just more fun! However, it is more work to drive such a car, and can be especially difficult for the beginner. But don’t be scared, you may learn how to drive such a car within two-five days. It’s not as difficult as it seems.

It is many times easier to drive cars with automatic transmission. Automatic transmission is more convenient in a city, in traffic jams, etc. But it involves a more complicated device and gets broken more often. The repair of an automatic transmission is complex and tends to be quite expensive. Regarding fuel efficiently, a car with automatic transmission spends an average of 1.3 times more fuel than the same kind of car with manual transmission.

What type of engine?

There are two basic engine types: petrol/gas (carburettor and injector) and diesel. They have different characteristics.

Cars with diesel engine expend almost two times less fuel than a similar car with petrol engine. Diesel fuel costs cheaper. But they are little more noisy, little more smoky, and have less power than petrol engine. If you want to buy a diesel car, check the battery, it should be perfect. If it’s not, you may have a problem to start the car especially in cold weather. Check the timing belt also. Torn timing belt results in engine destruction.

There are two basic types of petrol engine - carburetter and injector engines. Carburettor engines are simpler and not particular about fuel quality, but they expend more fuel than injector engines.

Injector engines are more powerful. They start better in any weather and expend less fuel, but they need good quality petrol. They are more complicated. Most modern cars have engines with electric fuel injection system.

Front wheel drive, rear wheel drive or four wheel drive?

Most of present cars are front wheel drive. They are simpler and cheaper. If you are looking for simple transportation facility, most likely it will be front wheel drive (FWD) car. But while buying such a car be aware! They have particular problems, common for all FWD cars: little less durable front suspension, CV-joint problems, engine supporting items problems, etc. Pay more attention to check those aspects. FWD cars have also particular features in the way they drive: Don’t press the accelerator pedal all the way down while you start moving, it may cause unexpected pulling aside. Also don’t accelerate too much while turning, if you do so, the car may unexpectedly move straight.

Rear wheel drive cars are more expensive, more durable and more reliable. Commonly they are heavier and consequently safer. They drive better at corners and at high speed.

Four wheel drive cars have great advantages on slippery surfaces. They are more complicated and some of them are less reliable.

How to check the engine oil?

Place your car on level ground. Stop the engine. Wait for a couple of minutes to let the engine oil pour down in the crankcase oil pan. Open the hood. Take off the engine oil dipstick. It may be placed in various areas of the engine depending on the engine model (check owners manual for where it is placed in your car). Dry it with a clean rag or tissue. Then stick it back all the way down into its place. Then, take it out to see whether it is full or low.

It should be at "FULL" mark. If you see that it’s a bit lower, you can drive with such a level but it would be better for the engine to add the oil till the level be full. Check the oil condition also: If it’s too black, it’s time to change it. If it’s slightly-brown, it’s O.K. If it’s dark-brown, but still transparent, it’s admissible. If it’s white (as the coffee with milk) it means the engine coolant mixes with the engine oil. Have your engine inspected by the mechanic.

How to add the engine oil?

It would be better to add the same type and brand of the engine oil as you already have in the engine. For example, if you have Mobil SAE 15W-40, SG in your engine, try to find the same. First add little amount of the oil and wait for a couple of minutes to let the oil pour down. Check the oil level again with the dipstick. If it’s still low, add some more. But don’t overfill it. Don’t forget to set the dipstick back and close the oil filler cap when you finish.

How to check automatic transmission fluid?

Place your car at a level surface. Start the engine. Shift transmission level to the "P" (parking) position, and let the engine idle (on some cars this process may differ, check the owner’s manual for details).

Take off the transmission dipstick. (To find where such dipstick is placed in your car, check your owners manual). Dry it with a clean rag or tissue. Then set it back carefully all the way down into it’s place. Take it out and check the reading. It should be at the upper end of the "COLD" mark. If the engine is hot, the level should be at the upper end of the "HOT" mark. If it’s lower, you should add some amount of automatic transmission fluid. Check the oil condition also: If it’s too black and has a burnt smell – your transmission is going to break. Normally it should be clean and transparent. It may be red, red-brown, light-brown.

How to add the transmission fluid?

Check the transmission oil type in the owners manual. Pour a little amount of the oil. Let the oil flow down. Start the engine. Check the level again.

How to check the engine coolant fluid level?

The coolant level should be between "LOW" and "FULL" marks in the coolant expansion tank. If it’s lower, you should add it, because low coolant level may cause engine overheating and therefore engine damage. If there is no coolant in the expansion tank at all, you should add the coolant into the radiator also. But remember, never open the radiator or the expansion tank cap when the engine is hot! When engine temperature is reduced (in 15-20 minutes after the engine has been turned off), simply add a coolant into the expansion tank till its level be at "FULL" mark and into the radiator if necessary.

Bearing Lubrication

Bearing are used not only in motor vehicles but all types of machines. Here are ten of the most common errors in lubricating the bearings and how to correct or prevent them:

1. Using a lubricant with the wrong viscosity

Viscosity is a measurement of the thickness, or ability to flow, of lubricating oil. It is one of the most important factors to consider when selecting a bearing lubricant. In the US, a common unit of measurement for viscosity is Saybolt Universal Seconds (SUS). The recommended minimum viscosity varies according to the bearing type, ranging from 70 SUS for a ball bearing to 100 SUS at the operating temperature for a spherical roller bearing, and 150 SUS for a spherical thrust bearing.

2. Misuses of grease and oil

In bearing applications, the actual lubricating fluid is generally a mineral oil or synthetic oil. This oil can be used alone, or in conjunction with a thickener to form lubricating grease. The thickener (in most cases, lithium, calcium or sodium soap) forms a lattice which carries the oil between its fibres.

Bearing users sometimes use an oil where a grease is called for, or grease where oil is indicated. For example, in food processing applications, oil dripping from housing can contaminate the food product. Grease is generally the preferred lubricant. Grease may also be called for in situations where the bearing housing is inaccessible and an oil sight gauge can’t be routinely checked. On the other hand, oil is generally used when other components in the arrangement are oil-lubricated.

3. Over-lubrication

Too much oil or grease in a bearing or its housing causes an effect called churning, resulting in a sharp temperature rise and often premature lubricant and/or bearing failure. On start-up, grease-lubricated bearings expel excess grease into the housing. To prevent churning, there must be sufficient empty space in the housing to accommodate this grease. Therefore, when using grease, full the bearing completely, but fill only one-third of the bearing housing.

4. Using an ineffective lubrication system

When oil is the preferred lubricant, there are several methods of delivering oil to the bearing, including static oil, circulation oil and the spray-mist system. In static oil or oil bath systems, the bath should be filled to a level just below the middle of bottom rolling element.

With a circulation oil system, oil is pumped from a separate reservoir into the bearing, where it cools and lubricates simultaneously. The heated oils is then returned into the reservoir, where it cools down again. Filters in the system remove contaminants from the oil as it circulates. A circulation oil system can often greatly increase bearing life expectancy.

5. Under-lubrication

Even with the right lubrication system, under-lubrication can occur. The consequences are excessive heat and eventually metal-to-metal contact between bearing components. The reasons for under-lubrication vary. When grease or a static oil system is used, a small amount of lubricant can evaporate over time, leading to under-lubrication. But under-lubrication can also happen with circulating oil systems.

6. Failure to prevent lubricant contamination

Lubricant contamination is a leading cause of bearing failure. Direct particles and other contaminants can damage bearing by leaving dents in rotating elements and raceways. Contamination can occur due to improper handling of the bearing or lubricant during bearing installation. Do not remove a bearing from its packaging until ready for mounting, and clean dirt and debris from the housing. During installation, minimize the amount of the time the bearing lubricant is exposed to the air.

7. Using the wrong seals

Improper sealing can also cause contamination. Labyrinth seals are effective in many applications. But in mines, steel mills, brick mills and other harsh environment, ambient dust may work its way past these seals and into the bearings, causing contamination and wear. This problem can be prevented by using a higher-grade seal, such as a rubber lip seal, garter spring seal or a ebonite seal.

8. Failure to relubricate bearings

Even without exposure to contaminants, the lubricant quality can deteriorate over time. It’s often impossible to determine grease quality in a sealed bearing by visual inspection. Relubricating every month with a small amount of fresh grease will replace lost grease and refill the bearing. It is recommended to change the grease completely every year, even sooner in some extreme cases. Usually, the grease in injected by a grease gun, automatically expelling the used grease and any contaminants it may carry.

In oil lubrication systems, visual inspection can be useful. Monitoring sight gauges and oil reservoirs can help determine relubrication intervals. The oil in oil-bath systems is generally changed once a year. More frequent oil changes may be necessary in applications with high temperatures or heavy contamination.

9. Mixing incompatible lubricants

During bearing relubrication, maintenance technicians may sometimes inject a different lubricant into a bearing than the one used originally, inadvertently mixing the two lubricants. If the two lubricants are incompatible, there will be a deterioration in lubricating capacity.

Never mix greases with different thickeners, such as a lithium-based grease with a sodium-based grease, before checking with the suppliers. Never mix a mineral oil with a synthetic oil. Some lubricants are compatible, but assessing the compatibility of two lubricants can be difficult. As a general rule, always relubricate a bearing with the same lubricant used originally. If a different lubricant must be used, carefully remove all traces of the oil lubricant from the bearing and housing before relubricating.

10. Failure to provide lubrication training

Maintenance technicians commonly receive training on bearing selection and installation, but not lubrication. Plant supervisors should make sure that technicians are thoroughly trained in lubrication fundamentals.

There are many opportunities for training. Some bearing manufacturers offer seminars that cover lubrication as part of the course curriculum. Sales representatives of bearing companies and lubricant suppliers can often provide technical training at customer sites.

Motor Vehicle Insurance

Business Age gives summary of the vehicle insurance provisions applicable in Nepal

For insurance purpose vehicles are classified into two categories according to its use: Private and
commercial vehicles. Private vehicle stand for those vehicles used for social, personal and entertainment purpose. Commercial vehicles refer to vehicles like bus, minibus, truck, minitruck, etc. which are used for commercial purpose.

Private vehicles have been further divided into two classes, viz. motor vehicle and motorcycle. Commercial vehicles too have been further divided into two classes viz. goods carrying vehicle and passenger carrying vehicle.

The motor insurance policy is issued for one year. The geographical area of this policy can be extended to cover risks to India, Tibet, Bhutan and Bangladesh.

All kinds of motor vehicles can be insured under three risks categories as given in the box.

Premium Rate

Premium rates are calculated differently for commercial vehicle and private vehicle.

Premium depends on insuring values, Cubic Capacity, Load Carrying Capacity, Seal Capacity etc. of the vehicle. And it depends also on various optional covers like Strike Riot and Civil Commotion (SRCC), Earthquake, Flood-Inundation-landslide-storm, Terrorism, Personal Accident cover to Driver/Cleaner/Conductor and Passengers etc.

Tariff

Premium Rates for Motor Vehicle Insurance are governed by the Tariff prescribed by the Beema Samiti (Insurance Board) which is the controlling body of all insurance companies in Nepal. The tariff undergoes amendments from time to time on the decision of the Board. But the insurance companies cannot offer discounts on vehicle tariffs beyond that allowed by the tariff. So the price of the product is the same at different companies. However, the service quality may differ.

Discount

Vehicle insurance tariff specifies the following discounts for the vehicle insurance premium:

A. Voluntary Excess Discount:

If the proposer agrees to bear some portion of claim, there will be discount in premium as per the tariff.

B. Fleet Discount:

If the number of insured vehicle of the same owner is more than one, there will be discount in premium as per tariff. But for the commercial vehicle, the minimum fleet size should be 5 to get the Fleet discount.

C. No Claim Discount:

A special discount called "No Claim Discount" as per the tariff is allowed on renewal, if the insured vehicle passes claim free year.

Basis of Valuation

The value to be insured is arrived at by the depreciated and present day market value basis. The depreciation rate applicable is specified in the tariff.

Premium computation for Private vehicle (Comprehensive)

 

upto

Rs 75000

upto

Rs 80000

upto

Rs 85000

upto

Rs 90000

upto

Rs 95000

upto

Rs 100000

1000 CC

1840

1940

2040

2140

2240

2340

1600 CC

2010

2110

2210

2310

2410

2510

3000 CC

-

-

-

-

-

2540

Above

3000 CC

-

-

-

-

-

2730

If the value of vehicle is more than the above mentioned amount, Rs. 2 per hundred will be charged for additional amount.

Premium computation for Commercial vehicle

(truck, tanker)

Capacity Comprehensive
3 ton Re 1 per hundred on value of vehicle with a basic of Rs. 1000/-
More than 3 ton Rs. 400 on every additional ton with above mentioned rate.

Buses
(Local bus, Hotel bus, Coach etc)

seating capacity comprehensive insurance premium
Upto 18 seats Rs 800/-
19 to 24 seats Rs. 900/-
25 to 30 seats Rs. 1000/-
31 to 36 seats Rs. 1100/-
36 and above Rs. 1200/-

Additional Re. 1 per hundred on value of the vehicle.

Motorcycle

Capacity Comprehensive Third Party Liability only
150 CC Rs. 130   Rs. 80
250 CC Rs. 165 Rs. 100
250 CC & above Rs. 200 Rs. 120

Additional Rs. 0.50 per hundred on value of the vehicle

NB:

1. Limit on third party liability is unlimited.
2. In case of scooters, a compulsory excess of Rs. 100 is applicable

Trailor

 

Comprehensive

Premium

1. If only one trailor is fixed Rs. 1 per hundred on value of the vehicle with a basis of Rs. 50
2. If maximum two trailor is fixed Rs. 1 per hundred on value of the vehicle at a time with a basic of Rs. 75
3. School and Office vehicle Rs. 1 per hundred on value of the vehicle with a basic of Rs. 400

Additional rate for additional coverage

1. Riot & strike ( both private and commercial)
Premium rate : Rs 2.50 per thousand on the value of vehicle

2. Earthquake ( both private and commercial)
Premium rate : Rs 2.50 per thousand on the value of vehicle

3. Storm, flood, landslide, inundation
Premium rate : Rs 2.50 per thousand on the value of vehicle

Premium Computation
Premium for Third Party Liability only

Private vehicle Commercial Vehicle
1600 CC = Rs. 500/ Upto 3 ton = Rs. 1000/
Above 1600 CC Rs. 1000/- More than 3 ton = Rs. 1500/-
  upto 35 seaters bus = Rs. 1000/-
  more than 25 seaters bus = Rs. 1500/-

 

Motorcycle

Trailor

150 CC = Rs. 80 If one trailor is fixed = Rs. 30
250 CC = Rs. 100 If two trailor is fixed at a time = Rs. 50
Above 250 CC = Rs. 120  

No Claim Discount

 

Private Vehicle

Commercial Vehicle

Motorcycle

Year

Comp.

T.P.

Comp.

T.P.

Comp.

T.P

1st year

20%

20%

15%

15%

15%

15%

2nd year

30%

30%

25%

25%

25%

25%

3rd year

45%

45%

30%

30%

30%

30%

4th year

50%

45%

30%

30%

30%

30%

5th year and more

60%

45%

30%

30%

30%

30%

No claim discount will only be allowed provided the policy is renewed within 90 days of the expiry date of the policy.

(Comp. = comprehensive, T.P. = Third Party)

Fleet discount.

No. of vehicles

Private Veh. & Motorcycle

Commercial Veh.

2

10%

-

3

15%

-

4

20%

-

5 to 10

20%

5%

11-25

20%

10%

26-49

20%

20%

50 and above

20%

30%

Voluntary excess discount

If a person agrees to bear following amount of loss (excess) on his own, then he is entitled to get following discount.

 

Private Vehicle

Commercial Vehicle

Motorcycle

Rs. 50

-

-

10%

Rs. 100

10%

-

20%

Rs. 200

15%

-

-

Rs. 500

20%

10%

-

Rs. 1000

30%

15%

-

Rs. 2000

-

20%

-

Compulsory excess

Some amount of loss (excess) has to be borne by the owner of the vehicle himself. As per the norms of Beema Samiti all comprehensive motor policy except Private vehicle policy bear following excess amount.

a. Bus, Truck and similar kind of commercial vehicle = Rs. 2000/-

b. Tanker = Rs. 5000/-

Source: Insurance Companies

VEHICLE REGISTATION (NUMBER)
2056/57 (1999/2000)

TYPE OF VEHICLE

TOURIST

GOVT.

CORPO.

PVT.

COMMERCIAL

CD/UN

TOTAL

MOTOR CYCLE  

321

24

19281

2

127

19755

CAR/JEEP

20

489

53

2776

107

202

3647

TURCK/TANKER  

19

3

87

720

 

829

TRACTOR  

3

1

2523

15

 

2542

BUS

20

11

 

27

432

4

494

TEMPO      

12

777

 

789

OTHER      

9

1

 

10

MINI BUS

9

   

9

102

2

122

AMBULANCE      

11

6

 

17

DOZER/CRANE  

5

2

12

   

19

ESCAVATOR  

1

1

29

   

31

LOADER/GRADER  

4

 

21

   

25

TOTAL

49

853

84

24797

2162

335

28280

Source: Department of Transport Management

VEHICLE REGISTRATION (TOTAL NUMBER, AS OF THE END OF FISCAL YEAR)

YEAR

CAR/JEEP/

VAN

BUS

MINI BUS

TRUCK/ TANKER

TRACTOR

MOTOR CYCLE

TEMPO

DOZER/CRANE

OTHERS

TOTAL

1989/90

22160

2489

1464

7671

6166

32748

2359

102

0

75159

1990/91

24053

2947

1690

8471

6954

37702

3215

109

1877

87018

1991/92

26168

3360

1838

9995

7502

45856

4422

129

2215

101485

1992/93

28434

3966

2023

11486

7764

53464

4484

164

2561

114346

1993/94

31483

5134

2100

13226

9160

62117

4638

175

2922

130955

1994/95

34526

5984

2183

14855

10974

71518

4879

175

3275

148369

1995/96

39787

6470

2265

16006

13157

85373

4996

184

3324

171562

1996/97

42780

7078

2440

16913

14414

98006

5181

267

3593

190672

1997/98

46919

7977

2570

18204

15679

110312

5525

300

3611

211097

1998/99

49426

8849

2589

19182

17927

127402

5913

335

3613

235236

1999/2000

53073

9343

2711

20011

20469

147157

6702

354

3696

263516

VEHICLE REGITRATION (IN NUMBER)
(During 1999-2000)

TYPE OF VEHICLE

TOURIST

GOVT.

CORPO.

PVT.

COMMERCIAL

CD/UN

TOTAL

MOTOR CYCLE  

321

24

19281

2

127

19755

CAR/JEEP

20

489

53

2776

107

202

3647

TURCK/TANKER  

19

3

87

720

 

829

TRACTOR  

3

1

2523

15

 

2542

BUS

20

11

 

27

432

4

494

TEMPO      

12

777

 

789

OTHER      

9

1

 

10

MINI BUS

9

   

9

102

2

122

AMBULANCE      

11

6

 

17

DOZER/CRANE  

5

2

12

   

19

ESCAVATOR  

1

1

29

   

31

LOADER/GRADER  

4

 

21

   

25

TOTAL

49

853

84

24797

2162

335

28280

Source: Department of Transport Management

VEHICLE REGISTRATION (IN NUMBER BY REGION)
As of Mid July, 2000

OFFICE

BUS

MINI BUS

CRANE/ DOZER/ TIPPER/ DAMFAR

TRUCK/ TANKER

CAR/JEEP- VAN

TEMPO

MOTOR

CYCLE

TRACTOR

OTHER

TOTAL

BAGMATI

1632

1610

6

5295

35993

4778

94217

1672

3332

148535

NARAYANI

4832

428

4

9662

7232

1107

15581

6412

60

45318

LUMBINI

957

167

3

1338

1802

249

8437

4140

22

17115

KOSHI

313

184

6

1236

2641

281

10211

1960

156

16988

GANDAKI

527

202

 

701

3021

 

7298

653

22

12424

JANAKPUR

182

18

 

381

463

37

3024

1560

71

5736

BHERI

189

34

 

470

566

132

3205

1124

16

5736

MECHI

238

35

1

416

455

18

1849

439

5

3456

SAGAMATHA

94

16

 

250

406

9

1267

640

3

2685

SETI

95

5

 

319

160

37

1140

1291

2

3049

MAHAKALI

161

6

 

181

162

43

477

285

 

1315

RAPTI

132

6

 

97

172

11

448

296

6

1159

TOTAL

9343

2711

20

20346

53073

6702

147154

20472

3695

263516

Source: Department of Transport Management

VEHICLE REGITRATION (IN NUMBER BY TYPES OF VEHICLE)
2056 SHRAWAN - 2057 ASHADH
(Mid - July 1999 - Mid July, 2000)

OFFICE

BUS

MINI BUS

CRANE/ DOZER TIPPER/ DAMFAR

TRUCK/ TANKER

CAR/JEEP VAN

TEMPO

MOTOR

CYCLE

TRACTOR

OTHER

TOATAL

BAGMATI

106

33

6

69

2977

672

12886

 

54

16803

NARAYANI

374

86

4

713

231

107

3145

831

11

5502

LUMBINI

2

 

3

7

87

9

701

581

2

1392

KOSHI

1

1

6

2

100

 

997

333

2

1442

GANDAKI

6

   

13

124

 

781

29

6

959

JANAKPUR      

2

21

 

248

134

1

406

BHERI

2

2

   

54

 

479

191

2

730

MECHI

2

 

1

16

11

 

149

67

4

250

SAGAMATHA

1

   

3

30

 

69

71

 

174

SETI        

1

 

279

268

 

548

MAHAKALI      

4

5

 

16

22

 

47

RAPTI        

6

1

2

18

 

27

TOTAL

494

122

20

829

3647

789

19752

2545

82

28280

Source: Department of Transport Management

VEHICLE REGITRATION (IN NUMBER, BY OWNERSHIP)
As of mid -July, 2000

TYPE OF VEHICLE

TOURIST

GOVT.

CORPO.

PVT.

COMMERCIAL

CD/UN

TOTAL

MOTOR CYCLE

-

5193

2270

138914

112

668

147157

CAR/JEEP-VAN

225

7005

1743

35504

7817

779

53073

TURCK/TANKER

25

1456

719

3084

14708

19

20011

TRACTOR

-

361

221

16507

3379

1

20469

BUS

183

147

85

453

8452

23

9343

TEMPO

-

160

37

929

5576

 

6702

OTHER

6

2

3

43

9

3560

3623

MINI BUS

48

76

43

548

1991

5

2711

AMBULANCE

-

-

-

11

-

-

11

DOZER/CRANE

67

12

170

103

2

-

354

ESCAVATOR

-

1

1

29

-

-

31

LOADER/GRAER

-

4

-

21

6

-

31

TOTAL

554

14417

5292

196146

42052

5055

263516

Source: Department of Transport Management

Nepal's Duty Regime on Vehicles & Parts

Customs Duty

(includes changes announced in the Fiscal year 2057-58 budget)

HARMONIC CODE ITEM DESCRIPTION CUSTOM DUTY
87.01 Tractor 10%
87.02 Motor vehicle with seating capacity
above 10 (including Driver)
87.02.10.10 Minibus and Bus (above 15 seater) 25%
87.02.10.90  Other (up to 14 seater) 130%
87.03 Passenger cars and other Motor
vehicles including Station Wagon and Racing Cars.
87.03.21.10  Three Wheeler Auto Rickshaw 80%
87.03.22.00 to 90.00 Motor Cars of Different Engine Capacity 130%
87.04 Goods Carrying Vehicles-GVW above 5 MT
87.04.21.10 Double Cab Pick-ups 80%
87.04.21.90 Other - GVW above 5 MT 25%
87.04.22.10 Double Cab Pick-ups 80%
87.04.22.90 Others 25%
87.06 Engine with Chassis same as thatof complete vehicle for which chassis is imported
87.11.10.00-90.00 Motor Cycle including Mopeds 40%
27.10.00.75 Grease 40%
27.10.00.79 Lubricating Oil 40%
40.10.21.00/22.00 V-Belt (Fan Belt 5%
40.11.10.00/40.00 Tyres and Tubes 25%
65.06.10.00 Helmets 15%
84.14.30.00 A/C Compressor 10%
84.21.23.00 Oil and Fuel Filter 10%
84.21.31.00 Intake Air Filter 10%
84.82 Ball and Roller Bearing 15%
85.11.10.00 Spark Plugs 10%
85.07.10.00 Storage Batteries 15%
87.08 Spare Parts & Accessories 15%
87.14 Motor Cycle Spare Parts  20%
87.14.11 to 90 15%
87.14.91 to 96 5%

NB: Other than above, majority of motor parts falling under different code no’s draws customs duty of 15%

NOTES:

1. All new vehicles being imported into Nepal should meet NVMES 2056

2. Old and reconditioned vehicles meeting NVMES 2056 can only be imported with approval from Ministry of Population and Environment. For such vehicles following additional duty is charged:

For up to 2 years old vehicles 25% of custom duty and CVD.

For more than 2 years but less than 3 years old vehicles 35% of customs duty and CVD.

For more than 3 years but less than 5 years old vehicles 50% of customs duty and CVD.

3. Vehicles imported as chassis with engine under code 87.02 are to be registered for the same type for which the duty has been paid.

4. For counting the seats for vehicles under 87.02, conductor seat, additional seat or folding seat shall not be counted.

5. Customs duty on electric or battery only operated vehicles shall be only 10%.

6. Customs duty on the chassis and spares of electric, gas or battery only operated 3-wheelers shall be 1%. Only 5% custom duty shall be charged if the chassis and parts for other such type of vehicles are imported by industries producing these vehicles.

7. Owners of Petrol or Diesel driven 3-wheelers can, on the recommendation of office of Transport Management, import spares and equipment required for conversion of the same in SAFA (Battery Operated) Tempo paying only 1% Customs Duty.

8 50% rebate on customs duty on gas only operated 3-wheelers.

9. No customs duty on import of Catalytic convertors.

10. Only 2.5% customs duty on one unit of Tractor imported by farmers.

11. If recommended by concerned authorities, no customs duty is charged on imports of Trolley buses and related equipment.

12. No customs duty to be paid on imports of 2 to 8 HP pumping sets.

13. On recommendation of Tourism Ministry, the Travel Agents, Trekking Agencies, Rafting Agencies and Star Hotel & Resorts can import up to 2 nos. of Micro/Minibus or Jeep paying 50% of effective customs duty.

14. Only 1% customs duty shall be charged on import of Ambulance by Governmental Organizations or NGO’s.

15. Transportation charges for imports by air shall be calculated in the same manner as for imports by surface routes.

16. For imports from India and Tibet Autonomous Region of China, duty shall be charged after allowing 20% discount on the normal customs duty if the normal duty is of up to 40%, and 10% discount on rates above that.

17. For imports of goods produced in and shipped from most favoured nations under L/C, duty shall be charged after allowing 5% discount on normal customs duty rate.

18. Customs duty for imports from India under D.R.P. is calculated on the basic price (excluding Indian Excise Duty) plus the transportation charges and insurance premium. Indian excise duty shall be deducted from the calculated customs duty and the balance amount only shall be levied from the importer. In case the transportation charges are mentioned on the invoice separately and the insurance premium invoice or receipt is produced, these will be accepted as transportation charges and insurance premium for calculating value of goods for customs purpose.

19. Customs duty on Gas Analyzer, Smoke meters, Diesel fuel pump test bench and Diesel nozzle test equipment shall be only 5%.

EXCISE DUTY

Excise Duty at the rate 15% on single cab pick-ups up to GVW 5 MT shall be levied on domestic manufacturer. Countervailing duty equivalent to excise duty shall be charged on imports (even if these are currently not manufactured in Nepal).

For details information please check the customs tariff book and other notifications issued by HMG of Nepal from time to time.

VALUE ADDED TAX

Salient features of VAT rules

1. V.A.T. rate shall be 10%

2. Minimum threshold for compulsory registration with V.A.T. is Rs 20,00,000 of annual turnover

3. HMG and its departments can only purchase goods above Rs. 35,000 from only V.A.T. registered firms / companies.

4. No V.A.T. items include:

a) Agricultural Tractor up to 8 HP, Pumped sets, Various agricultural tools and equipment.

b) Battery operated 3-wheelers, their chassis and batteries.

5. A tax credit of 40% of V.A.T. paid by the buyer is allowed on 4 wheelers.

Nepal Vehicle Mass Emission Standard, 2056

A. Vehicles Fuelled with Gasoline (Positive Ignition Engines)

1. For Passenger Cars with Up To Six Seats and Gross Vehicle Weight (GVW) less than 2.5 tons

1.1 Type I Test – verifying exhaust emissions after a cold start.

1.2 Type II Test – Carbon monoxide emission at idling speed.

This test applies to vehicles fuelled with leaded gasoline only.

The carbon monoxide content by volume of the exhaust gases emitted with engines idling must not exceed 3.5% at the settings used for the Type I test

1.3 Type III Test – verifying emissions of crankcase gases.

The crankcase ventilation system must not permit the emission of any of the crankcase gases into the atmosphere.

1.4 Type IV Test – determination of evaporative emission

This test applies to all vehicles fuelled with leaded and unleaded gasoline.

Evaporative emissions shall be less than 2 g/test.

1.5 Type V Test – durability of pollution control devices.

This test applies to vehicles fuelled with unleaded gasoline only.

The test represents an endurance test of 80,000 kilometre driven on the road or on a chassis dynamometer.

Notwithstanding the above requirements, a manufacturer may choose to use the deterioration factors from the following table.*

2. For Light-Duty Commercial Vehicles with Gross Vehicle Weight (GVW) less than or equal to 3.5 tons #

2.1 Type I Test – verifying exhaust emissions after a cold start.

2.2 Type II Test – Carbon monoxide emission at idling speed.

This test applies to vehicles fuelled with leaded gasoline only.

The carbon monoxide content by volume of the exhaust gases emitted with engines idling must not exceed 3.5% at the settings used for the Type I Test

2.3 Type III Test - verifying emissions of crankcase gases.

The crankcase ventilation must not permit the emission of any of the crankcase gases into the atmosphere.

2.4 Type IV Test – determination of evaporative emission.

This test applies to all vehicles fuelled with leaded and unleaded gasoline.

Evaporative emissions shall be less than 2 g/test.

2.5 Type V Test – durability of pollution control devices.

This test applies to vehicles fuelled with both leaded and unleaded gasoline.

The test represents an endurance test of 80,000 kilometer driven on the road or on a chassis dynamometer.

Notwithstanding the above requirements, a manufacturer may choose to use the deterioration factors from the following table.*

3 For Two Wheelers and Three Wheelers

3.1 Type I Test – verifying exhaust emissions after a cold start.

3.2 Type II Test – carbon monoxide emission at idling speed.

This test applies to vehicles fuelled with leaded gasoline only.

The carbon monoxide content by volume of the exhaust gases emitted with engines idling must not exceed 3.5% at the setting used for the Type I test.

3.3 Type III Test – verifying emissions of crankcase gases.

The crankcase ventilation system must not permit the emission of any of the crankcase gases into the atmosphere.

Not applicable for two wheelers*

3.4 Type IV Test – determination of evaporative emission.

This test applies to vehicles fuelled with leaded and unleaded gasoline.

Evaporative emission shall be less than f2 g/test.

Not applicable for two wheelers*

3.5 Type V Test – durability of pollution control devices.

This test applies to vehicles fuelled with unleaded gasoline only.

The test represents an endurance test of 80,000 kilometer driven on the road or on a chassis dynamometer.

Notwithstanding the above requirements, a manufacturer may choose to use the deterioration factors from the following table.*

Note: In case of two wheelers, this test in only applicable if fitted with anti-pollution devices.

B. Vehicles Fuelled with Diesel (Compression ignition engines)

1. For Passenger Cars With Up to Six Seats and Gross Vehicle Weight (GVW) less than 2.5 tons.

1.1 Type 1 Test – verifying exhaust emissions after a cold start.

1.2 Type II Test – carbon monoxide emission at idling speed. Not applicable.

1.3 Type III Test – verifying emissions of crankcase gases. Not applicable*

1.4 Type IV Test – determination of evaporative emission. Not applicable

1.5 Type V Test – durability of pollution control devices.

The test represents an endurance test of 80,000 kilometer driven on the road or on a chassis dynamometer

Notwithstanding the above requirements, a manufacturer may choose to use the deterioration factors from the following table.#

2 For Light-Duty Commercial Vehicles and Vehicles with Gross Vehicles Weight (GVW) less than or equal to 3.5 tons. *

2.1Type 1 Test –verifying exhaust emission after a cold start.

2.2 Type II Test– carbon monoxide emission at idling gases. Not applicable

2.3 Type III Test –verifying emissions of crankcase gases.

Not applicable *

2.4 Type IV Test – determination of evaporative emission. Not applicable.

2.5 Type V test –durability of pollution control devices.

The test represents an endurance test of 80,000 kilometer driven on the road or on a chassis dynamometer.

Notwithstanding the above requirements, a manufacturer may choose to use the deterioration factors from the following table.#

3. For Heavy-Duty Vehicles and Vehicle with Gross Vehicle Weight (GVW) more than 3.5 tons.

3.1 Type I Test –verifying exhaust emission after a cold start.

3.2 Type II Test –carbon monoxide emission at idling speed.

Not applicable.

3.3 Type III Test–verifying emissions of crankcase gases.

Not applicable #

3.4 Type IV Test –determination of evaporative emission.

Not applicable.

3.5 Type V Test –durability of pollution control devices.

Not applicable #

* As amended by the decision of HMG/N of 2056.12.02

# As added by the decision of the HMG/N of 2056.12.02

Explanatory Notes

1.0 Type Approval

Most countries require some form of certification or type approval by vehicle manufacturer to demonstrate that each new vehicle sold is capable of meeting applicable emission standards. Usually, type approval requires emission testing of prototype vehicles representative of planned production vehicles. Under ECE and Japanese regulations, such compliance is required only for new vehicles. U.S. regulations require that vehicles comply with emission standards throughout their useful lives when maintained according to the manufacturing specifications.

The advantage of a certification or type approval program is that it can influence vehicle design prior to mass production. It is more cost effective because the manufacturers identify and correct the problems before production actually begins.

2.0 Approval of a vehicle

Vehicle manufacturers apply for approval of a vehicle type with regard to exhaust emissions, evaporative emissions and durability of pollution control devices to the authority responsible for conducting the tests. The application for approval also includes details like description of engines type comprising all the particulars, drawings of the combustion chamber and of the postion, description of evaporative control system, particulars concerning the vehicles, descriptions of pollution control devices etc. If the vehicle type submitted for approval meets the requirements of various types of tests mentioned, only then the approval of that vehicle is granted.

3.0 Conformity of Production

The conformity of production is a assembly line testing system. The objectives of assembly line testing are to enable regulatory authorities to identify certified production vehicles that do not comply with applicable emission standards, to take remedial actions (such as revoking certification and recalling vehicles ) to correct the problem, and to discourage the manufacture of non-complying vehicles .This test provides an additional check on mass-produced vehicles to assure that the designs found adequate in certification are satisfactorily translated into production, and that quality control on the assembly line is sufficient to provide reasonable assurance that vehicles in use meet standards. The basic difference between TA and COP is that TA is based on Prototype vehicle or design of the vehicle while COP measures emissions from real production vehicles.

As per the requirements set forth by the European Union, a sufficient number of random checks are made of serially-manufactured vehicles bearing the type approval mark of vehicles bearing all the types of tests mentioned above. The tolerance limits are provided for conformity of production in Type I tests.

Source: Ministry of Population & Environment

 

Grams per Kilometer

Carbon monoxide (CO) Hydrocarbons plus Oxides of Nitrogen (HC+NOx)
Type Approval

Conformity of Production

2.72

3.16

0.97

1.13