WORLD TRADE  
ORGANIZATION  GATS/SC/139 
30 August 2004 
 (04-3588) 
Trade in Services  
  
 
 
THE KINGDOM OF NEPAL 
 
Schedule of Specific Commitments
 
  
(This is authentic in English only) 
 
_______________ 
  
   
  GATS/SC/139
 Page 3THE KINGDOM OF NEPAL - SCHEDULE OF SPECIFIC COMMITMENTS 
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I. HORIZONTAL COMMITMENTS 
All Sectors included in this Schedule  
 
 
  
 
(2) None, except convertible currency 
limit of USD 2,000 applies to 
Nepalese citizens on personal travel.  (1) None, except with respect to foreign 
exchange provided to foreigners 
(excluding those categories of 
persons covered by commitments in this agreement) to pay for any cross-
border services 
(2) None  
 (3) None 
 
 The conditions of ownership, 
operation and juridical form and scope of activity as set out in a 
license or other form of approval 
establishing or authorizing the operation and supply of services by 
an existing foreign service supplier, 
will not be made more restrictive than they exist as of the date of 
Nepal’s accession to WTO.  
 (4) Unbound, except for temporary 
entry and stay of natural persons of 
another Member in the following categories: (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. 
- Incentives and subsidies are 
available only to enterprises wholly 
owned by Nepalese nationals. 
 (4) Unbound except for measures 
concerning the categories of natural 
persons referred to in the market access column 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; 
  
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:   
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. 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 
d) The amount received under an agreement to transfer technology 
approved by the Department of Industries 
or the Department of Cottage and Small Industries.  
 GATS/SC/139 
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 a.  such sales are not directly made 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, which may be renewed.  
Persons responsible for 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.  
Entry for the above-listed persons is 
limited to one year period, which may be renewed. 
   
 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 categories: 
    
  GATS/SC/139
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(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 transfer ees is limited to a 3 
years initial period that may be extended 
for up to 7 years for a total period not to 
exceed 10 years.   
Temporary entry and stay of natural 
persons considered to be intra-corporate transferees may be limited to 15 percent 
of local employees. This commitment 
shall be further liberalized after five years from the date of accession.    
 GATS/SC/139 
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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 
(4) Unbound, except as indicated in the 
horizontal section. 
 
 Court appearance in Nepalese courts 
will be allowed with the permission of Supreme Court and membership 
in the Nepal Bar Association.  
 (1)  None 
(2)  None (2) None 
(4) Unbound, except as indicated in 
horizontal section  
  
(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 (CPC 86213) 
 
 Bookkeeping services
,  
except tax return (CPC 86220) 
 (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.  
 Nepal undertakes additional commitments 
to adopt WTO Accounting Disciplines 
within 5 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. 
 (1)  None 
(2)  None (3) None 
 
  
(4)  Unbound, except as indicated in 
horizontal section.   
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(e) Engineering services (CPC 8672) 
 
- Engineering design services for the 
construction of civil engineering works (CPC 86724) 
- Engineering design services for 
industrial processes and production (CPC86725) 
- Other engineering services during 
the construction and installation phase (CPC 86727) 
- Other engineering services  
(CPC 86729) (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. 
 (1)  None 
(2) None 
(3) None 
  
 
(4)  Unbound, except as indicated in 
horizontal section. 
  
 
(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. 
  
(1) None 
(2) None 
(3) None  
 
 
(4)  Unbound, except as indicated in 
horizontal section.  
(g)  Urban planning and landscape 
architectural serv ices (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. 
 (1)  None 
(2)  None (3) None 
 
  
(4)  Unbound, except as indicated in 
horizontal section.  
(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.  
 (1)    None 
(2)  None (3) None 
 
  
(4)  Unbound, except as indicated in 
horizontal section.   
 GATS/SC/139 
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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 
(8491) 
 - Other computer services  
(CPC 8499) 
 (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.  (1)   None 
(2) None 
(3) None 
  
 
(4)  Unbound, except as provided under 
horizontal section 
  
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.   
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E.   Rental/Leasing Services without 
Operators     
(e) Other    
 
 Leasing and rental services 
concerning video tape (CPC83202) (1)  None 
(2)  None 
(3)  None except only through 
incorporation in Nepal and with 
maximum foreign equity of 51 
percent. Foreign equity participation will be increased to 80 per cent after 
5 years from the date of accession. 
(4)  Unbound, except as indicated in the 
horizontal section. (1)  None 
(2)  None 
(3)  None  
 
  
 
(4)  Unbound, except as indicated in the 
horizontal section. 
  
F.   Other Business Services     
(a)  Advertising services (CPC 871) (1) None 
(2) None 
(3) Unbound until 31  December 2008. 
Thereafter none, except only through 
incorporation in Nepal and with 
maximum foreign equity capital of 
67 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.  
(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 
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.   
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(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 
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.  
(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 
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.  
(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 
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.   
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(q)  Packaging services (CPC 876) (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.  
(r)  Printing, publishing (CPC 88442) (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.  
(s)  Convention Services (CPC 87909) (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.   
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2.  COMMUNICATION SERVICES 
    
B. Courier services  
- Multi-modal courier services  
(CPC 75121)   (1) None 
(2) None 
(3) For courier services supplied from a 
foreign territory to Nepal or from 
Nepal to a foreign territory none 
except only through incorporation in Nepal and with maximum foreign 
equity capital of 80 per cent. 
(4) Unbound, except as indicated in 
horizontal section and in accordance 
with Nepal’s mode 3 commitments 
for courier services.  
 (1) None 
(2) None 
(3) None  
 
  
 
(4) Unbound, except as indicated in 
horizontal section.  
C.  Telecommunication Services  
Commitments are taken consistent with "Notes for Scheduling Basi c Telecom Services Commitments" (S/GBT/W/2/Rev.1) and Market Ac cess Limitations on Spectrum 
Availability" (S/GBT/W/3). 
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: 
 No limitation on number of service 
providers will exist on January 2009. However, foreign participation 
permitted through a joint venture 
with up to 80% equity participation.  
(4)  Unbound, except as indicated in the 
horizontal section.  Consultants not 
available in Nepal may enter to work for 90 days. 
 (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. 
 
  
(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   
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Mobile Telecommunications Services (1)  None 
(2)  None 
(3)  None, except: 
  - By 2004 two mobile operators 
will be licensed 
 - No limitation on number of 
service providers will exist on 
January 2009,  However, foreign 
participation permitted through a joint venture with up to 80% equity 
participation.  
 - Mobile technology will not be 
prescribed but will be left to the 
choice of the operator upon the date 
of accession . 
 
(4) Unbound, except as indicated in 
horizontal section. 
 (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    
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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, long distance and 
international data communication 
 (k)  Radio paging 
 
(l) Trunked mobile 
 (1)  None 
(2)  None 
(3)  None, except: 
  Foreign participation permitted 
through a joint venture with up to 
80% equity participation.  
 
(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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3. CONSTRUCTION AND 
RELATED 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 
51 per cent. Foreign equity 
participation will be increased to 80 per cent after 5 years from the date 
of accession.   
(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 511+515+ 518) (1)  None 
(2) None 
(2) None, except only through 
incorporation in Nepal and with 
maximum foreign equity capital of 
51 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  
(CPC 621) (1)  None 
(2) None 
(3) None, except only through 
incorporation in Nepal and with maximum foreign equity capital of 
51 per cent. 
Foreign equity 
participation will be increased to 80 per cent after 5 years from the date of accession. 
(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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B. Wholesale Services,  
except CPC 62244 1) 2) 3) and 4) Unbound except as 
indicated in the horizontal section. In 
addition, unbound except until such 
time that Nepal grants such rights to any WTO Member in any subsector, 
or until Nepal determines the types 
of foreign entities which may provide these services, or that Nepal 
authorizes such rights under its laws 
and regulations, the supply of these services; whichever is earlier.  
 1) 2) 3) and 4) Unbound except as 
indicated in the horizontal section. In 
addition, unbound except until such 
time that Nepal grants such rights to any WTO Member in any subsector, 
or until Nepal determines the types 
of foreign entities which may provide these services, or that Nepal 
authorizes such rights under its laws 
and regulations, the supply of these services; whichever is earlier.  
Wholesale trade services of radio and 
television equipment, musical instruments, and records, music scores and tapes. (CPC 62244) (1) None 
(2) None (3) None except only through 
incorporation in Nepal and with 
maximum foreign equity of 80 percent 
(4) Unbound, except as indicated in the 
horizontal section 
 (1) None 
(2) None (3) None 
 
  
(4) Unbound, except as indicated in the 
horizontal section.  
C. Retailing Services,  
except CPC 63234 1) 2) 3) and 4) Unbound except as 
indicated in the horizontal section. In 
addition, unbound except until such 
time that Nepal grants such rights to any WTO Member in any subsector, 
or until Nepal determines the types 
of foreign entities which may provide these services, or that Nepal 
authorizes  such rights under its laws 
and regulations, the supply of these services; whichever is earlier. 
 1) 2) 3) and 4) Unbound except as 
indicated in the horizontal section. In 
addition, unbound except until such 
time that Nepal grants such rights to any WTO Member in any subsector, 
or until Nepal determines the types 
of foreign entities which may provide these services, or that Nepal 
authorizes such rights under its laws 
and regulations, the supply of these services; whichever is earlier.   
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Retailing Services  
 
Retail sales of radio and television 
equipment, musical instruments, and records, music scores and tapes.  
(CPC 63234) (1) None 
(2) None 
(3) None except only through 
incorporation in Nepal and with maximum foreign equity of 80 
percent 
(4) Unbound except as indicated in the 
horizontal section 
 (1) None 
(2) None 
(3) None 
  
 
(4) Unbound except as indicated in the 
horizontal section.  
D. Franchising  
 (CPC 8929) (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 
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 51 per cent and except for education 
services funded from state resources. 
Foreign equity participation will be increased to 80 per cent after 5 years 
from the date of accession 
(4) Unbound, except as indicated in the 
horizontal section. 
 (1)  None 
(2)  None (3) None, except for education services 
funded from state resources. 
  
 
  
 
(4)  Unbound, except as indicated in 
horizontal section.   
 GATS/SC/139 
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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 
51 per cent. Foreign equity participation will be increased to 80 
per cent after 5 years from the date 
of accession 
(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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7.   FINANCIAL SERVICES 
General Conditions 
The commitments in financial services are ma de in accordance with the General Agreemen t on Trade in Services and the Annex on F inancial Services. All the commitments are 
subject to entry requirements, domestic laws, rules and regulations  and the terms and conditions of the Nepal Rastra Bank (the central bank of Nepal), Insurance Board and any other 
competent authority in Nepal, as the case may be, which are cons istent with Article VI of the GATS and paragraph 2 of the Annex  on Financial Services. 
The commitments in Insurance Services are given to the nationals  and financial institutions of the Members whose law and polici es do not bar the provision of similar 
commitments to the Nepalese nationals and financial instituti ons. No such limitation will exist as of 1 March 2004.   
Financial Services in the form of operations identified below in  the Schedule can be carried out in Nepal through a locally inc orporated company. Branches will be allowed for 
insurance services and wholesale banking as of 1 January 2010. Only a licensed commercial bank, a licensed specialized bank or a registered finance comp any may accept deposits. 
Only a licensed commercia l bank may accept deposits, which are repayable upon dema nd. Only financial inst itutions with rating o f at least 'B' by Credit Rating Agency e.g. MOODI, 
Standard & Poor can have commercial presence in Nepal. The to tal foreign shareholding in any institution providing financial se rvices is limited to 67 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 a nd equity structure. The shares held by foreign nationals and 
foreign financial institutions in their locally incorporated companies are not transferable without the prior written approval of the Nepal Rastra Bank (the central bank) or any other 
competent authority as the case may be. Representative offices ma y not be engaged in commercial business. The members of the Bo ard of Directors of a financial service supplier 
will be in proportion to equity representation of that financial service supplier. 
 
A. Insurance and Insurance Related 
Services     
(i) Direct Insurance    
(a) Life (1) None 
(2) None 
(3) None, except as indicated in general 
conditions. 
(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.   
(b) Non-life (1) None 
(2) None 
(3) None, except as indicated in general 
conditions.  
(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.   
 GATS/SC/139 
Page 20 Modes of supply    (1) Cross-Border supply     (2) Consumption ab road        (3) Commercial Pr esence      (4) Presence of natur al persons 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
(ii) Re-insurance and Retrocession (1) and (2) None except, mandatory 
reinsurance up to USD 25,000 must 
be placed with domestic insurance 
company until 31 December 2007.  
(3) Unbound until 31 December 2007;  
thereafter none, except as indicated in 
the general conditions. 
(4) Unbound, except as indicated in the 
horizontal section. 
 (1)  None 
(2) None 
 
 (3) None 
(4) Unbound, except as indicated in the 
horizontal section.  
(iv) Services Auxiliary to Insurance 
 
Insurance broking and agency services 
(CPC 81401)   (1) None 
(2) None 
(3) None, except as indicated in general 
condition 
(4) Unbound, except as indicated in the 
horizontal section 
 (1) None 
(2) None 
(3) None 
 (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, except for (k) provision 
and transfer of financial information, 
and financial data processing and related software by suppliers of other 
financial services and (l) advisory 
services on all the activities listed above were none 
 (1) None 
   
  GATS/SC/139
 Page 21Modes of supply    (1) Cross-Border supply     (2) Consumption ab road        (3) Commercial Pr esence      (4) Presence of natur al persons 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
 (2) Unbound, except for (k) provision 
and transfer of financial information, 
and financial data processing and 
related software by suppliers of other financial services and (l) advisory 
services on all the activities listed 
above were none 
(3) None, except as indicated in general 
conditions.  
 For derivative products under sub-
sector ‘f’ and se ttlement of and 
clearing services for financial assets, 
including securities, derivative products, and other negotiable 
instruments under ‘j’ unbound until 
HMG/Nepal determines what types of entities can conduct these services, 
the related laws and regulations are 
established and such business is 
authorised by the government or 
other designated authority.  (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 financing of 
commercial transactions. (4) Unbound, except as specified in the 
horizontal section. (4) Unbound, except as indicated in 
horizontal section.  
(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: 
     
 GATS/SC/139 
Page 22 Modes of supply    (1) Cross-Border supply     (2) Consumption ab road        (3) Commercial Pr esence      (4) Presence of natur al persons 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
 - money-market instruments 
(cheques, bills, certificates of 
deposits, etc.) 
 - foreign exchange  - derivative products including, 
but not limited to, futures and 
options 
 - 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 
(i) Asset management, such as cash or 
portfolio management, all forms of collective investment management, 
pension fund management, custodial 
depository and trust services. 
(j) Settlement of and clearing services 
for financial assets, including 
securities, derivative products, and other negotiable instruments 
(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 
     
  GATS/SC/139
 Page 23Modes of supply    (1) Cross-Border supply     (2) Consumption ab road        (3) Commercial Pr esence      (4) Presence of natur al persons 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
8.  HEALTH RELATED AND 
SOCIAL SERVICES 
    
A. Hospital Services  
 (CPC 9311) and direct ownership 
and management by contract of such 
facilities on a ‘for  fee’ basis. (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.  
9.  TOURISM AND TRAVEL 
RELATED SERVICES 
    
A.  Tourism and restaurants  
 Hotel, lodging services (CPC 6411) 
(star hotels only);  Graded restaurants (CPC 6421-6423)** 
 
B.  Travel agency and tour operator 
(CPC 7471)  (1)  None 
(2)  None 
(3)  None, except only through 
incorporation in Nepal and with 
maximum foreign equity capital of 
51 per cent for travel agency and tour operator (CPC 7471) and 80 per 
cent for hotel, lodging services (CPC 
6411)  (star hotels only), and graded restaurants (CPC 6421-6423)**. 
(4)  Unbound, except as indicated in the 
horizontal section. 
 (1)  None 
(2)  None 
(3) None  
 
  
 
  
(4)  Unbound, except as indicated in 
horizontal section.   
 GATS/SC/139 
Page 24 Modes of supply    (1) Cross-Border supply     (2) Consumption ab road        (3) Commercial Pr esence      (4) Presence of natur al persons 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
10. RECREATIONAL, CULTURAL 
AND SPORTING SERVICES 
    
E. Other entertainment services n.e.c  
(CPC 96199): 
-  Cinema theatre services including 
cinema projection services (1) None 
(2)  None.  (3)  None, except only through 
incorporation in Nepal and with 
maximum foreign equity of 51 percent and minimum foreign 
investment of US $1 million. 
Foreign equity participation will be increased to 80 per cent after 5 years 
from the date of accession. 
(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 
51 per cent. Foreign equity participation will be increased to 80 
per cent after 5 years from the date 
of accession 
(4)  Unbound, except as indicated in the 
horizontal section. 
 (1)  None 
(2)  None 
(3)  None  
 
  
 
 (4)  Unbound, except as indicated in the 
horizontal section.   
  GATS/SC/139
 Page 25Modes of supply    (1) Cross-Border supply     (2) Consumption ab road        (3) Commercial Pr esence      (4) Presence of natur al persons 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
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 
51 per cent. Foreign equity 
participation will be increased to 80 per cent after 5 years from the date 
of accession 
(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 Services     
(a) Transportation of Fuels (CPC 7131) 
(b) Transportation of Other Goods (CPC 
7139) (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 the 
horizontal section.  
H.  Services Auxiliary to All Modes of 
Supply     
(a) Storage and warehouse services 
CPC 742 
 (1)  None 
(2)  None 
(3)  None, except only through 
incorporation in Nepal and with maximum foreign equity capital of 
51 per cent. Foreign equity 
participation will be increased to 80 per cent after 5 years from the date 
of accession 
(4)  Unbound, except as indicated in the 
horizontal section. 
 (1)  None 
(2)  None 
(3)  None 
  
 
  
 
(4)  Unbound, except as indicated in the 
horizontal section.  GATS/SC/139 
Page 26  
 
 TELECOMMUNICATION REFERENCE PAPER 
 
 Scope
 
 
 The following are definitions and principles 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 
  a) are exclusively or predominantly provided by a single or limited number of suppliers; 
  and 
  b) cannot feasible be economically or tec hnically substituted in order to provide a 
service. 
 A major supplier
 is a supplier which has the ability to mate rially affect the terms of participation 
(having regard to price and supply) in the releva nt 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 for 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: 
  a) engaging in anti-competitive cross-subsidization;   b) using information obtained from comp etitors with anti-competitive results; and 
 
 c) not making available to other services suppliers on a timely basis technical 
information about essential facilities and comm ercially relevant 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 user s of one supplier to communicate with users of 
another supplier and to access services provi ded by another supplier, where specific 
commitments are undertaken. 
  GATS/SC/139 
 Page 27 
 
 
  
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: 
 
 a) under non-discriminatory terms, cond itions (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; 
 
 b) in a timely fashion, on terms, c onditions (including technical standards and 
specifications) and cost-oriented rates that ar e transparent, reasonable, having regard 
to economic feasibility, and sufficiently unbundl ed so that the supplier need not pay 
for network components or facilities that it does not require for the service to be 
provided; and 
  c) upon request, at points in addition to th e network 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: 
  a) at any time or 
 
 b) after a reasonable period of time which has been made publicly known.   c) to an independent domestic body, which may be a regulatory body as referred to in 
paragraph 5 below, to resolve disputes re garding 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 regard ed as anti-competitive per se, provided they are 
administered in a transparent, non-discrimin atory and competitively neutral manner and are 
not more burdensome that necessary for the kind of universal service defined by the Member. 
 GATS/SC/139 
Page 28  
 
 4. Public availability of licensing criteria
 
  Where a license is required, the following will be made publicly available:   a) all the licensing criteria and the period of time normally required to reach a decision 
concerning an applicable for a license and 
  b) the terms and conditio ns of individual licenses. 
  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 objective, timely, transparent and non-
discriminatory manner.  The current state of allocated frequency bands will be made publicly 
available, but detailed identification of freque ncies allocated for speci fic government uses is 
not required. 
  
 
__________