RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/NPL/4/Rev.2 
6 May 2003 
 (03-2427) 
Working Party on the 
Accession of Nepal Original:   English 
 
 
 
ACCESSION OF THE KINGDOM OF NEPAL 
 
Offer of Specific Commitments in Services  
 
Revision  
  
 The Government of the Kingdom of Nepal has su bmitted the attached revised Offer of Specific 
Commitments in Services and List of Article II MFN Exemptions with a request that it be circulated to 
members of the Working Party. 
 
_______________ 
  
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I. HORIZONTAL COMMITMENTS 
All Sectors included in this 
Schedule 1) and 2) Allocation of foreign currency 
for payment of foreign services suppliers subject to approval of Central Bank. 1) None  
2) None  
 3) None 
   
 
     
 
 (4) Unbound, except for temporary  
entry and stay of natural persons of another Member in the following 
category based on economic need 
test: 
 
Service sales persons
 
 
Persons not based in the territory of 
Nepal and receiving no remuneration from a source located within Nepal, who are engaged in activities related to representing a service supplier for the purpose of negotiating for the sale of 
services of that supplier where: 
 
a. such sales are not directly made 3) None, except: 
 - A foreign investor reinvesting 
earnings is required to obtain the 
permission of the Department of 
Industry; 
- All foreign investments except for 
Financial Services require approval by the Department of Industry; and 
- Incentives and subsidies are 
available only to nationals. 
 4) Unbound except for measures 
concerning the categories of natural person referred to in the market 
access column 
 
Selling and buying real estate is the constitutional right of every Nepalese citizen.  The Civil Code prohibits anyone 
from selling, mortgaging, gifting or 
endowing  or disposing any real property to a foreign individual. 
  
 
 
 Except where an environmental 
impact assessment is required, decisions of the Department are normally provided within 30 days 
of the date of application. 
 Approval of an investment will not normally be withheld except for failure to meet environmental standards. 
 
A foreign investor making an investment in foreign currency shall be entitled to repatriate the following amount outside Nepal:- 
 
a)  The amount received by the 
sale, in whole or part, of the investors share of equity; 
 
b)  The amount received as profit 
or dividend as a result of an equity investment; 
 c)  The amount received as the 
payment of the principal of 
and interest on any foreign loan; and 
  
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to the general public, and 
b.  the sales person is not engaged in 
supplying the service. 
 
Entry for persons named in these two categories is limited to a ninety-day period.  
Person responsible for the setting up 
a commercial presence  
 
Persons who are employees of an enterprise not having commercial presence in Nepal and who stay 
temporarily in Nepal for the purpose of 
setting up a commercial presence of that enterprise in Nepal. Personnel engaged in setting up commercial presence shall present proof of  the commencement of 
business operation within one year of the 
date of entry of that person.  
Intra-corporate transferees
 
 
Managers, executives and specialists as 
defined below who are employees of firms that provide services in Nepal through a branch, subsidiary or affiliate established in Nepal and who have been 
in the prior employment of their firm 
outside Nepal for a period of not less 
than one year immediately preceding the date of their application for admission and who fall with one of the following d)  The amount received under an 
agreement to transfer technology approved by the 
Department of Industries or 
the Department of Cottage and Small Industries. 
   
 WT/ACC/SPEC/NPL/4/Rev.2 
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categories: 
(a) Executives and Managers : 
 
Persons within an organization who 
primarily direct the organization or a department or sub-division of the organization, supervise or control the work of their supervisory, professional or 
managerial employees, have the authority 
to hire and fire or recommend hiring, firing or other personnel actions (such as promotion, or leave authorization) and exercise discretionary authority over day-to-day operations. 
 
(b) Specialists
:  
 
Persons within an organization who possess technical knowledge at an 
advanced level of continued expertise 
and who possess propriety knowledge of the organization’s services, research techniques or management techniques. (Specialists may include but are not 
limited to members of licensed 
professions.)   Entry for the above-listed categories of intra-corporate transferees is limited to a 
three years initial period that may be 
extended for up to seven years for a total period not to exceed ten years.   
  WT/ACC/SPEC/NPL/4/Rev.2
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II. SECTOR SPECIFIC COMMITMENTS 
1. BUSINESS SERVICES 
A. Professional Services 
(a) Legal Services  
  i. home country law and 
or third country law 
(advisory and representation) 
 ii. international law 
(advisory and 
representation) (1) None 
(2) None (3) None, except only through 
incorporation in Nepal and with 
maximum foreign equity capital of 49 per cent 
(4) Unbound, except as indicated in the 
horizontal section. 
 
All foreign professionals working in Nepal require membership of relevant Nepalese professional organization.  
Court appearance in Nepalese courts will 
be allowed with the permission of Supreme Court. (1)  None 
(2)  None (3) None 
 
  (4) Unbound, except as indicated in 
horizontal section    
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(b) Accounting, auditing and 
book-keeping services 
 
- Accounting and auditing 
services  
  i. Financial auditing 
services  
  (CPC 86211) 
 ii. Accounting Review 
services  
  (CPC 86212)  iii. Compilation of 
financial statement 
services (1)  None 
(2) None (3) None, except only through 
incorporation in Nepal and with 
maximum foreign equity capital of 49 per cent. 
(4) Unbound, except as indicated in the 
horizontal section 
 
All foreign professionals working in Nepal require membership of relevant Nepalese professional organization. (1) None 
(2) None (3) None 
 
  (4) Unbound, except as indicated in 
horizontal section 
 Nepal undertakes additional 
commitments to adopt WTO Accounting Disciplines within five 
years from the date of accession. 
(d) Architectural Services 
(CPC 8671) (1) None 
(2)  None 
(3) None, except only through 
incorporation in Nepal and with maximum foreign equity capital of 66 per cent 
(4) Unbound, except as indicated in the 
horizontal section 
 
All foreign professionals working in Nepal require membership of relevant Nepalese professional organization. (1) None 
(2) None 
(3) None    (4)  Unbound, except as indicated in 
horizontal section 
   
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(f) Integrated engineering 
Services  
 (CPC 8673) (1) None 
(2)  None (3) None, except only through 
incorporation in Nepal and with 
maximum foreign equity capital of 66 per cent 
(4) Unbound, except as indicated in the 
horizontal section 
 
All foreign professionals working in Nepal require membership of relevant Nepalese professional organization. (1) None 
(2) None (3) None 
 
  (4)  Unbound, except as indicated in 
horizontal section 
  
(g)  Urban planning and 
landscape architectural services 
 (CPC 8674) (1) None 
(2)  None (3) None, except only through 
incorporation in Nepal and with 
maximum foreign equity capital of 
66 per cent 
(4) Unbound, except as indicated in the 
horizontal section 
 
All foreign professionals working in 
Nepal require membership of relevant Nepalese professional organization. (1) None 
(2) None (3) None  
 
 (4)  Unbound, except as indicated in 
horizontal section 
   
 WT/ACC/SPEC/NPL/4/Rev.2 
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(i)  Veterinary services  
 (CPC 932) (1) None 
(2) None (3) None, except only through 
incorporation in Nepal and with 
maximum foreign equity capital of 51 per cent 
(4) Unbound, except as indicated in the 
horizontal section 
 
All foreign professionals working in Nepal require membership of relevant Nepalese professional organization. (1) None 
(2) None (3) None 
 
  (4) Unbound, except as indicated in 
horizontal section. 
  
B.  Computer and Related Services 
a. Consultation services 
related to the installation 
of computer hardware (CPC 841) 
b. Software implementation 
services  
 (CPC 842) 
c. Data processing services 
(CPC 843) 
d. Data base services  
 (CPC 844) 
e. Maintenance and repair 
service of office machinery and equipment including computers  
 (CPC 845) f. Other computer services 
 - Data preparation 
services  
  (CPC 8491) (1) None 
(2) None 
(3) None, except only through 
incorporation in Nepal and with maximum foreign equity capital of 80 per cent 
(4) Unbound, except as indicated in the 
horizontal section 
 
All foreign professionals working in Nepal require membership of relevant 
Nepalese professional organization. (1) None 
(2) None 
(3) None    
(4)  Unbound, except as provided under 
horizontal section 
   
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 - Other computer 
services  
 (CPC 8499) 
C. Research and Development Services 
a. R&D services on natural 
science 
  - Heat, light, 
electromagnetism, 
astronomy but excluding atomic energy and related matters  
  (CPC 85101) 
 - Engineering and 
technology, including applied science and technology for casting, metal, machinery, 
electricity, 
communications, vessels, aircrafts, civil engineering, construction, 
information etc.  
  (CPC 85103)  (1) None 
(2) None (3) None, except only through 
incorporation in Nepal and with 
maximum foreign equity capital of 
51 per cent 
(4) Unbound, except as indicated in the 
horizontal section.  
 (1) None 
(2) None (3) None  
 
 (4) Unbound, except as indicated in 
horizontal section. 
   
 WT/ACC/SPEC/NPL/4/Rev.2 
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F.  Other Business Services 
(b)  Market research and 
public opinion polling services  
 (CPC 864) (1) None 
(2) None (3) None, except only through 
incorporation in Nepal and with maximum foreign equity capital of 
49 per cent 
(4) Unbound, except as indicated in the 
horizontal section (1) None 
(2) None (3) None   
 
(4) Unbound, except as indicated in 
horizontal section  
(c) Management consulting 
service  
 (CPC 865) (1) None 
(2) None (3) None, except only through 
incorporation in Nepal and with maximum foreign equity capital of 
49 per cent 
(4) Unbound, except as indicated in the 
horizontal section (1) None 
(2) None (3) None   
 
(4) Unbound, except as indicated in 
horizontal section  
(e)  Technical testing and 
analysis services  
 (CPC 8676) (1) None 
(2) None (3) None, except only through 
incorporation in Nepal and with maximum foreign equity capital of 
51per cent 
(4) Unbound, except as indicated in the 
horizontal section (1) None 
(2)  None (3)  None   
 
(4)  Unbound, except as indicated in 
horizontal section  
(h) Services incidental to 
mining  
 (CPC 883+5115) (1) None 
(2) None (3) None, except only through 
incorporation in Nepal and with maximum foreign equity capital of 
51per cent 
(4)  Unbound, except as indicated in the 
horizontal section (1) None 
(2)  None (3)  None   
 
(4)  Unbound, except as indicated in 
horizontal section   
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(m)  Related scientific and 
technical consulting services  
 (CPC 8675) (1) None 
(2) None (3) None, except only through 
incorporation in Nepal and with 
maximum foreign equity capital of 51per cent 
(4)  Unbound, except as indicated in the 
horizontal section (1) None 
(2)  None (3)  None 
 
  (4)  Unbound, except as indicated in 
horizontal section  
(q)  Packaging services  
 (CPC 876) (1) None 
(2) None (3) None, except only through 
incorporation in Nepal and with 
maximum foreign equity capital of 51per cent 
(4)  Unbound, except as indicated in the 
horizontal section (1) None 
(2)  None (3)  None 
 
  (4)  Unbound, except as indicated in 
horizontal section  
(r)  Printing, publishing  
 (CPC 88442) (1) None 
(2) None (3) None, except only through 
incorporation in Nepal and with 
maximum foreign equity capital of 51per cent 
(4)  Unbound, except as indicated in the 
horizontal section (1) None 
(2)  None (3)  None 
 
  (4)  Unbound, except as indicated in 
horizontal section  
(s)  Convention Services  
 (CPC 87909) (1) None 
(2) None (3) None, except only through 
incorporation in Nepal and with 
maximum foreign equity capital of 51per cent 
(4)  Unbound, except as indicated in the 
horizontal section (1) None 
(2)  None (3)  None 
 
  (4)  Unbound, except as indicated in 
horizontal section   
 WT/ACC/SPEC/NPL/4/Rev.2 
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Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
2.  COMMUNICATION SERVICES 
C.  Telecommunication Services 
- Basic Telecommunications 
(a) Local telephone service 
(b) Domestic telephone 
service 
(c) International telephone 
services 
(d) Telex service 
(e)  Domestic and international 
telegraph service (1) None  
(2)  None  (3)  None, except: 
 
The license to operate any telecommunications service is issued by the Nepal Telecommunication Authority (NTA) 
 
A license will be issued to one extra service provider in addition to Nepal Telecommunications Corporation (NTC) no later than 2003 subject to the 
following conditions:  
 
Foreign participati on permitted through a 
joint venture with up to 80% equity participation.  
 
License issued for an initial period of ten years. Renewable for each additional five year periods. The period of license is 25 years including initial period. 
 
Licensee will be able to provide 
international telecommunications services to its own customers through its own network by the end of 2003. 
 
Licensee will be empowered to lease (1) None 
(2) None (3) None, except the majority of the 
members of the Board of Directors 
of a joint venture should be Nepalese nationals. 
  
 
    
 
    
 
     
 
    
 Nepal undertakes additional 
commitments as contained in the Telecommunication Reference 
Paper attached to this Schedule of 
specific Commitments.  
  WT/ACC/SPEC/NPL/4/Rev.2
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lines to other services providers and users 
by the end of 2003. 
 
Terms of inter-connection between NTC 
and licensee to be negotiated. In case settlement is not reached, Nepal Telecommunication Authority will arbitrate and its decision will be binding 
to both the parties. 
 
(4) Unbound, except as indicated in the 
horizontal section. 
 All foreign professionals working in 
Nepal require membership of relevant 
Nepalese professional organization.  
  
 
    
 
 (4) Unbound, except as indicated in 
horizontal section. 
Mobile Telephone Service (1) None 
(2)  None (3)  None, except: 
 
- The license to operate is issued by 
the Nepal Telecommunication 
Authority (NTA) 
- Foreign participation permitted 
through a joint venture with up to 80% equity participation.   
License issued for an initial period of ten 
Years. Renewable for each additional five year periods.  The period of license is 25 years including initial period. 
 
Mobile operators will be permitted to 
operate international services by 2004. (1)  None 
(2) None (3) None   
 
     
 
    
 
 Nepal undertakes additional 
commitments as contained in the Telecommunication Reference Paper attached to this Schedule of specific Commitments 
 
By 2004 two mobile operators will 
be licensed to operate Global Mobile System (GMS). One operator will be selected through bidding process. The other operator 
will be the Nepal 
Telecommunications Corporation that will operate its Mobile System under the same terms of service as the second operator.  
 WT/ACC/SPEC/NPL/4/Rev.2 
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(4) Unbound, except as indicated in 
horizontal section. 
 
All foreign professionals working in 
Nepal require membership of relevant Nepalese professional organization. (4) Unbound, except as indicated in 
horizontal section. 
Value-added telecommunications 
(a)  Internet including e-mail 
(b)  E.mail 
(c)  Voice mail (d)  Video text (e)  Fax mail (f)  VSAT 
(g)  Audio Conference 
(h)  Pay phone (i)  Pre-paid calling card (j)  Local data communication (k)  Radio paging (l) Trunked mobile (1)  None 
(2)  None 
(3)  None, except:  - The license to operate is issued by 
the Nepal Telecommunication Authority (NTA). 
- Foreign participation permitted 
through a joint venture with up to 80% equity participation.  
- License issued for an initial period 
of five years.  Renewable for each 
additional five year periods up to a 
maximum of 20 years. 
 (4) Unbound, except as indicated in the 
horizontal section 
 
All foreign professionals working in Nepal require membership of relevant Nepalese professional organization. (1)  None 
(2)  None 
(3)  None     
 
     
 
  (4) Unbound, except as indicated in 
horizontal section. Nepal undertakes additional 
commitments as contained in the 
Telecommunication Reference Paper attached to this Schedule of specific Commitments  
After 2004 VSAT operators will be 
permitted by the Regulatory Authority based on the preference of the service provider to provide data or voice services but not both.   
  WT/ACC/SPEC/NPL/4/Rev.2
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3. CONSTRUCTION AND RELA TED ENGINEERING SERVICES 
(b) General construction work 
for civil engineering  
 (CPC 513)    (1)  None 
(2) None (3) None, except only through 
incorporation in Nepal and with maximum foreign equity capital of 
49 per cent 
(4) Unbound, except as indicated in 
horizontal section (1) None 
(2) None (3) None   
 
(4) Unbound, except as indicated in 
horizontal section  
(e). Other  
 (CPC 8929) (1) None 
(2) None (3) None, except only through 
incorporation in Nepal and with maximum foreign equity capital of 
49 per cent 
(4) Unbound, except as indicated in 
horizontal section. (1) None 
(2)  None (3)  None   
 
(4) Unbound, except as indicated in 
horizontal section.  
4. DISTRIBUTION SERVICES 
(a). Commission agent's 
services  
 (CSC 621) (1)  None 
(2) None 
(3) None, except only through 
incorporation in Nepal and with maximum foreign equity capital of 49 per cent 
(4) Unbound, except as indicated in 
horizontal section (1) None 
(2) None 
(3) None    
(4) Unbound, except as indicated in 
horizontal section   
 WT/ACC/SPEC/NPL/4/Rev.2 
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(d). Franchising  
 (CSC 8929) (1)  None 
(2) None (3) None, except only through 
incorporation in Nepal and with 
maximum foreign equity capital of 49 per cent 
(4) Unbound, except as indicated in 
horizontal section (1) None 
(2) None (3) None 
 
  (4) Unbound, except as indicated in 
horizontal section  
5.  EDUCATIONAL SERVICES 
(c). Higher Education services  
 (CPC 923) (d). Adult Education Services  (CPC 924) (e). Other Education  
 (CPC 929) (1)  None 
(2) None (3) None, except only through 
incorporation in Nepal and with maximum foreign equity capital of 
49 per cent 
(4) Unbound, except as indicated in 
horizontal section 
 All foreign professionals working in 
Nepal require membership of relevant 
Nepalese professional organization. (1) None 
(2) None (3) None   
 
(4) Unbound, except as indicated in 
horizontal section  
    
 
   
6.  ENVIRONMENTAL SERVICES  
(a). Sewage Services  
 (CPC 9401) (b) Refuse disposal services  
(CPC 9402) 
(c) Sanitation and similar 
Services  
 (CPC 9403) (1)  None 
(2) None (3) None, except only through 
incorporation in Nepal and with 
maximum foreign equity capital of 49 per cent 
(4) Unbound, except as indicated in 
horizontal section (1) None 
(2) None (3) None 
 
  (4) Unbound, except as indicated in 
horizontal section   
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7.  FINANCIAL SERVICES  
General Conditions  
 The commitments in financial services are made in accordance with the General Agreement on Trade in Services and the Annex on F inancial Services.  All the 
commitments are subject to entry requirements, domestic laws, ru les and regulations a nd the terms and conditi ons of the Nepal  Rastra Bank (the Central Bank of 
Nepal), Insurance Board and any other competen t authority in Nepal, as the case may be, which are consistent with Article VI of  the GATS and paragraph 2 of the 
Annex on Financial Services. 
 The commitments in Financial Services are given to the nationals and financial institu tions of the Members whose laws and polic ies do not bar the provision of 
similar commitments to the Nepalese nationals and financial institutions. 
Financial Services in the form of operati ons identified below in the Schedule can be  carried out in Nepal through a locally inc orporated company.  Only a licensed 
commercial bank, a licensed specialized bank or a registered finance company may accept deposits.  Only a licensed commercial b ank may accept deposits which 
are repayable upon demand.  Approva l, registration and licensing relating to foreig n banks and other financ ial institutions wil l be subject to an economic needs test 
as applicable to domestic commercial banks  and other financial institutions.  Only financial institutions with rating of at lea st 'B' by Credit Rating Agency e.g. 
Moody's, Standard & Poor can have commerci al presence in Nepal.  The total forei gn shareholding in any institution providing fi nancial services is limited to 
51 per cent of the issued share capital.  It has, nevertheless, been bound for the existing foreign financial service providers  as to their scope of operation and equity 
structure.  The shares held by foreign nationals and foreign fi nancial institutions in their loca lly incorporated companies are  not transferable without the prior 
written approval of the Nepal Rastra Bank (t he Central Bank) or any other competent au thority as the case may be.  Representati ve offices may not engage in 
commercial business.  The majority of the members of the Boar d of Directors of the company should be Nepalese nationals.   
A. Insurance and Insurance Related Services  
I. Direct Insurance  
(a) Life (1) None 
(2) None 
(3) None, except  - As indicated in general conditions. - New establishments are subject to 
licences approved by Insurance 
Board and/or His Majesty’s Government of Nepal. 
(4) Unbound, except as indicated in the 
horizontal section (1) None 
(2) None 
(3) None, except as indicated in general 
conditions and horizontal section 
  
 
  (4) Unbound, except as indicated in 
horizontal section.   
 
  
 WT/ACC/SPEC/NPL/4/Rev.2 
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(b) Non-life (1) None 
(2) None (3) None, except: 
 
- As indicated in general conditions.  - New establishment is subject to 
licence approved by Insurance Board and/or His Majesty’s Government of 
Nepal, if necessary economic needs 
test. 
(4) Unbound, except as indicated in the 
horizontal section. (1) None 
(2) None (3) None, except as indicated in general 
conditions and horizontal section. 
    
 
 (4) Unbound, except as indicated in 
horizontal section.  
  
  
 
II. Re-insurance and 
Retrocession (1) Reinsurance can be taken with 
foreign re-insurers to the extent of the residual uncovered risk after obligatory or statutory placement 
with domestic insurance company. 
(2) Reinsurance can be taken with 
foreign reinsurance to the extent mentioned above. 
(3) Unbound (4) Unbound, except as indicated in the 
horizontal section. (1)  None 
(2) None (3)     Unbound  
 
    (4) Unbound, except as indicated in the 
horizontal section  
B. Banking and Other Financial Services 
(a) Acceptance of deposits 
and other repayable funds from the public (1) Unbound 
(2) Unbound (3) None, except as indicated in general 
conditions. (1) None 
(2) None (3) None, except as specified in the 
general conditions and horizontal 
section  
(b) Lending of all types, 
including, inter-alia, 
consumer credit, mortgage credit, factoring and (4) Unbound, except as specified in the 
horizontal section. (4) Unbound, except as indicated in 
horizontal section.   
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financing of commercial 
transactions 
(c) Financial leasing 
(d) All payment and money 
transmission services 
(e) Guarantees and 
commitments 
(f) Trading for own account or 
for account of customers, 
whether on an exchange, an over-the-counter market or otherwise, the following: 
 - money-market 
instruments (cheques, 
bills, certificates of 
deposits, etc.) 
 - foreign exchange  - exchange rate and 
interest rate instruments, 
other than swap. 
 - transferable securities 
 - other negotiable 
instruments and financial assets, including bullion. 
(g) Participation in issues of 
all kinds of securities, 
including under-writing 
and placement as agent (whether publicly or privately) and provision of service – related to such 
issues. 
(h) Money broking      
 WT/ACC/SPEC/NPL/4/Rev.2 
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(i) Asset management, such as 
cash or portfolio management, all forms of 
collective investment 
management, pension fund management, custodial depository and trust services. 
(k) Provision and transfer of 
financial information, and financial data processing and related software by providers of other financial services. 
(l) Advisory services on all 
the activities listed above. 
8.  HEALTH RELATED AND SOCIAL SERVICES 
(A)  Hospital Services (CPC 
9311) (1) None 
(2) None 
(3) None, except only through 
incorporation in Nepal and with maximum foreign equity capital of 51 per cent.   
(4) Unbound, except as indicated in the 
horizontal section 
 Medical Experts can work with the permission of Nepal Medical Council maximum of one year.   (1) None 
(2) None 
(3) None 
   4)  Unbound, except as indicated in 
horizontal section   
  WT/ACC/SPEC/NPL/4/Rev.2
 Page 21Modes of supply    (1) Cross-Border    (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural persons 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
9.  TOURISM AND TRAVEL RELATED SERVICES 
(a). Tourism and restaurants  
 Hotel, lodging services 
(CPC 6411)  (star hotels only ) 
(b)  Travel agency and tour 
operator  
 (CPC 7471)  (1) None 
(2)  None, except convertible currency 
limit on foreign tourist travel of US $700 per annum. 
(3)  None, except only through 
incorporation in Nepal and with 
maximum foreign equity capital of 49 per cent. 
(4)  Unbound, except as indicated in the 
horizontal section (1) None 
(2)  None (3) None   
 
  (4)  Unbound, except as indicated in 
horizontal section  
11.  TRANSPORT SERVICES 
C.  Air Transport Services 
(d) Maintenance and repair of 
aircraft  
 (CPC 8868) (1)  None 
(2)  None 
(3)  None, except only through 
incorporation in Nepal and with maximum foreign equity capital of 49 per cent 
(4)  Unbound, except as indicated in the 
horizontal section (1)  None 
(2)  None 
(3)  None    
(4)  Unbound, except as indicated in the 
horizontal section  
Computer reservation system 
(as defined in the Annex in Air 
Transport ) (1)  None 
(2)  None 
(3)  None, except only through 
incorporation in Nepal and with maximum foreign equity capital of 49 per cent 
(4)  Unbound, except as indicated in the 
horizontal section (1)  None 
(2)  None 
(3)  None    
(4)  Unbound, except as indicated in the 
horizontal section   
 WT/ACC/SPEC/NPL/4/Rev.2 
Page 22 Modes of supply    (1) Cross-Border    (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural persons 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
Services Auxiliary to all modes 
of supply (only storage and warehouse services) (1)  None 
(2)  None (3)  None, except only through 
incorporation in Nepal and with 
maximum foreign equity capital of 49 per cent 
(4)  Unbound, except as indicated in the 
horizontal section (1)  None 
(2)  None (3)  None 
 
  (4)  Unbound, except as indicated in the 
horizontal section  
(g) Pipeline transport  
 (CPC 7131, 7139) (1)  None 
(2)  None (3)  None, except only through 
incorporation in Nepal and with 
maximum foreign equity capital of 49 per cent 
(4)  Unbound, except as indicated in the 
horizontal section (1)  None 
(2)  None (3)  None 
 
  (4)  Unbound, except as indicated in the 
horizontal section   
  WT/ACC/SPEC/NPL/4/Rev.2
 Page 23Lists of Article II MFN Exemptions  
 
Sector or Sub-Sector Description of measure indicating 
its inconsistency with Article II Countries to which the 
measure applies Intended Duration Conditions creating the need for the 
exemption 
All Sectors Allocation of non-convertible 
currency effected by commercial banks without involvement of 
Central Bank. India Indefinite To facilitate border traffic  and 
regional integration by providing for full current account convertibility of  
Nepalese rupees into Indian rupees 
Tourism Higher allocation of convertible 
currency for travel purposes. All OECD countries. Indefinite To reflect higher board and lodging 
costs in countries mentioned 
Insurance Approval of application for 
establishment dependent on 
reciprocal treatment. All countries Indefinite Promote  equitable treatment for 
Nepalese insurers seeking to 
establish abroad. 
 WT/ACC/SPEC/NPL/4/Rev.2 
Page 24  
 
 TELECOMMUNICATION REFERENCE PAPER
 
- Scope  
 The following are definitions and principl es on the regulatory framework for the basic 
telecommunications services. 
- Definitions  
 Users  mean service consumers and service suppliers. 
 Essential facilities  mean facilities of a public telecommunications transport network or service 
that: 
- are exclusively or predominantly provided by  a single or limited number of suppliers; and 
- cannot feasible be economically or technically substituted in order to provide a service. 
 A major supplier  is a supplier which has the ability to materially affect the terms of 
participation (having regard to price and supply) in  the relevant market for basic telecommunications 
services as a result of: 
 a) control over essential facilities; or  b) use of its position in the market 
1. Competitive safeguards
 
1.1 Prevention of anti-competitive practices in telecommunications  
 Appropriate measures shall be maintained fo r the purpose of preventing suppliers who, along 
or together, are major suppliers from engaging in or continuing anti-competitive practices. 
1.2 Safeguards  
 The anti-competitive practices referred to above shall include in particular: 
- engaging in anti-competitive cross-subsidization; 
- using information obtained from compet itors with anti-competitive results; and 
- not making available to other services suppliers on a timely basis technical information 
about essential facilities and commercially rele vant information which are necessary for 
them to provide services. 
2. Interconnection  
2.1 This section applies to linking with supplie rs providing public telecommunications transport 
networks or services in order to allow the users of  one supplier to communicate with users of another 
supplier and to access services provided by anot her supplier, where specific commitments are 
undertaken.  WT/ACC/SPEC/NPL/4/Rev.2 
 Page 25 
 
 
 2.2 Interconnection to be ensured  
 Interconnection with a major supplier will be en sured at any technically feasible point in the 
network.  Such interconnection is provided: 
- under non-discriminatory terms, conditions  (including technical standards and 
specifications) and rates and of a quality no l ess favourable than that provided for its own 
like services or for like services of non-affiliated service suppliers or for its subsidiaries 
or other affiliates; 
- in a timely fashion, on terms, conditi ons (including technical standards and 
specifications) and cost-oriented rates that are transparent, reasonable, having regard to 
economic feasibility, and sufficiently unbundled  so that the supplier need not pay for 
network components or facilities that it does not  require for the service to be provided; 
and 
- upon request, at points in addition to the ne twork termination points offered to the 
majority of users, subject to charges that reflect the cost of construction of necessary 
additional facilities. 
2.3 Public availability of the pro cedures for interconnection negotiations  
 The procedures applicable for interconnecti on to a major supplier will be made publicly 
available. 
2.4 Transparency of interconnection arrangements  
 It is ensured that a major supplier will make  publicly available either its interconnection 
agreements or a reference interconnection offer. 
2.5 Interconnection: dispute settlement  
 A service supplier requesting interconnection with  a major supplier will have recourse, either: 
- at any time; 
- after a reasonable period of time which has been made publicly known; or 
- to an independent domestic body, which may be a regulatory body as referred to in 
paragraph 5 below, to resolve disputes rega rding appropriate terms,  conditions and rates 
for interconnection within a reasonable period of  time, to the extent that these have not 
been established previously. 
3. Universal service  
 Any Member has the right to define the ki nd of universal service obligation it wishes to 
maintain.  Such obligations will not be regarded as anti-competitive per se , provided they are 
administered in a transparent, non-discriminator y and competitively neutral manner and are not more 
burdensome that necessary for the kind of universal service defined by the Member. 
4. Public availability of licensing criteria  
 Where a license is required, the following will be made publicly available: 
- all the licensing criteria and the period of time normally required to reach a decision 
concerning an applicable for a license; and 
- the terms and conditions of individual licenses. WT/ACC/SPEC/NPL/4/Rev.2 
Page 26  
 
  The reasons for the denial of a license will be  made known to the applicant upon request. 
5. Independent regulators
 
 The regulatory body is separate from, and not accountable to, any supplier of basic 
telecommunications services.  The decisions of and the procedures used by regulators shall be impartial with respect to all market participants. 
6. Allocation and use of scarce resources
 
 Any procedures for the allocation and use of scarce resources, including frequencies, number 
and rights of way, will be carried out in an obj ective, timely, transparent and non-discriminatory 
manner.  The current state of allocated frequency ba nds will be made publicly available, but detailed 
identification of frequencies allocated for specific government uses is not required. 
_______________