Buddha Chemjong and Khamir Gilson Kandangwa scored a goal each to help Jhapa secure a berth in the final.
Jhapa will meet the winner of the second semifinal, to be played between Nepal Police Club and host Morang on Thursday, for the summit clash on Saturday.
Buddha gave Jhapa a lead in the 15th minute against the departmental side. The goal came after deflection on APF's Aditya Chaudhary's foot as the departmental team's goalie failed to clear Buddha's strike from the box. While, Khamir, who had replaced Bishal Rai A in the 77th minute, doubled the tally for Jhapa in the 89th minute scoring off Karna Limbu's pass.
Jhapa had defeated Tribhuvan Army Club to claim the title of the tournament last season.
Karna was adjudged the man-of-the-match.
Jhapa was in control of the ball for the most of both halves but intensified its attack only after the interval, while APF wasted goal scoring chances on a number of occasions.
Top Bista's shot from the edge of the danger zone in the 37th minute was punched by Jhapa goalie Binay Shrestha, while Santosh Shrestha's header off Ganesh Lawati's pass in the 56th minute hit the goal post and went out.
Similarly, Jhapa's Buddha failed to score in a one-on-one situation in the 44th minute.
In another semifinal, Police will face host Morang on Thursday.
Jhapa reaches final for the fourth time