• The government of Nepal (GoN) provides a cash subsidy of 8% on the export of selected products.
• Selected products to be exported have been categorized in two schedules: Schedules-1 (subsidy of 5%) and Schedule- 2 (subsidy of 4%)
• Business exporting the scheduled products are able to get the cash subsidy, incase value added from the trade is minimum of 50% and 30% for Schedule-1 and Schedule-2 respectively.
• Value Addition can be calculated through:
  Value Addition = [(Export FOB price – VFO) / Export FOB Price] *100
  where,
  Export FOB (Freight On Board) Price = Cost of Goods being exported
  VFO (Value of Foreign Originated Materials) = Total cost of materials sourced to foreign country and used by them for production
• Additional 1% cash subsidy will be provided to business in case exported selected products of Section 1 and Section 2 are value at 80% and 70% respectively.
• In case, business exports 20% more than the previous fiscal year, cash subsidy of 1% of the value is provided.