All industries importing raw materials (including packaging materials) from India and third countries are liable to pay sales tax and customs duty as per the government rules. However, these levies are exempted subject to the Value Addition Certificate from the Department as per the Fiscal Incentives Act of Bhutan 2021. The Value Addition Certificate is also required to avail the Margin of Preference accorded to domestic products while participating in the public procurement process.
Industries are required to meet specific value addition on the imported raw materials prescribed by the Ministry of Industry, Commerce and Employment.
The Value Addition Certificate is issued by the Department to assist industries to avail fiscal incentives on import of raw materials. The value addition percentage must be 40% and above to be eligible to avail this certificate.
Documents required:
-An application addressed to the Chief Industries Officer, Department of Industry, Ministry of Industry, Commerce and Employment.
- Duly filled RM forms and RM Undertaking form
- Proforma Invoice copy
