Highlights:

• Immediate ban on importing vehicles that don’t meet Nepal’s new emission standards.

• Euro-5 required for two- and three-wheelers; Euro-6 required for four-wheelers.

• NRB blocks bank LCs for non-compliant vehicles.

• Policy already in force—affecting shipments, dealers, and buyers

Nepal’s New Vehicle Emission Standards at a Glance

Nepal has shifted gears. Since June 23, 2025 (Ashar 9, 2082 BS), the government has enforced the Nepal Vehicle Emission Standard 2082:

• Euro-5 for all two- and three-wheelers.

• Euro-6 for all four-wheelers, including passenger cars, buses, and cargo trucks.

These rules replace the Euro-3 limit set in 2012 (2069 BS). And the Nepal Rastra Bank (NRB) is enforcing them through the banking system: no Letters of Credit for non-compliant imports.

What the NRB Directive Actually Says

NRB’s circular (August 7, 2025) tells banks and financial institutions:

• Do not open LCs for vehicles failing Euro-5/Euro-6 requirements.

• Ban applies to brand-new, reconditioned, and used vehicles.

• Includes most transport machinery unless specifically exempted.

If your shipment doesn’t meet the standard, it’s not coming in—full stop.

Immediate Impact on Dealers and Importers

For dealers – Orders placed before June 23 but shipped after may still be blocked. Stock in transit could be stranded at customs.

For importers – Sourcing must shift to manufacturers certified to Euro-5/Euro-6. Any slip in paperwork or compliance proof could kill the deal.

For buyers – Expect fewer options in the short term, but cleaner, more efficient vehicles ahead.

Who Is Exempt?

Some heavy machinery, tractors, and defence imports may bypass these rules, but only if approved by the relevant ministries. Everyone else must comply.

Timeline of Nepal’s Vehicle Emission Standards

Year / Date	Standard Enforced
Pre-2012 (2056 BS)	Approx. Euro-1 equivalent
2012 (2069 BS)	Euro-3
June 23, 2025	Euro-5 (2/3-wheelers), Euro-6 (4-wheelers)
August 7, 2025	NRB bans LCs for non-compliant imports

How to Stay Compliant

1. Check the manufacturing certificate – Make sure Euro-5/Euro-6 compliance is clearly stated.

2. Match VIN with compliance docs – Customs will check.

3. Work with banks early – NRB-licensed banks won’t process risky LCs.

4. Avoid reconditioned units – Most won’t pass under new rules.

This move pushes Nepal in line with India’s BS VI and China’s China 6b emission norms. It means cleaner air, better fuel efficiency, and alignment with global trade standards.

For the automotive market, it’s a shake-up—short-term supply issues, long-term quality gains.