RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/NPL/6/Corr.1∗ 
28 August 2003 
 (03-4479) 
Working Party on the 
Accession of Nepal  
 
 
 
ACCESSION OF THE KINGDOM OF NEPAL 
 
Draft Schedule of Specific Commitments in Services  
 
Draft List of Article II MFN Exemptions  
 
Corrigendum1 
  The following changes should be made to the commitments circulated in document 
WT/ACC/SPEC/NPL/6: 
 
 
                                                     
 
∗ In English only 
1 Deleted text in strike-through, new text in bold.  
 WT/ACC/SPEC/NPL/6/Corr.1 
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Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
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: 
 
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 to 
the general public, and (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 
 
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 
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/6/Corr.1
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Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
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.  
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.  
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: 
 
  
 WT/ACC/SPEC/NPL/6/Corr.1 
Page 4 Modes of supply    (1) Cross-Border supply   (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural perso ns 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
(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.  
  WT/ACC/SPEC/NPL/6/Corr.1
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Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
II. SECTOR SPECIFIC COMMITMENTS 
I. BUSINESS SERVICES 
1. 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.   
 WT/ACC/SPEC/NPL/6/Corr.1 
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Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
(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.   
  WT/ACC/SPEC/NPL/6/Corr.1
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Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
2.  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 
  
3. 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/6/Corr.1 
Page 8 Modes of supply    (1) Cross-Border supply   (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural perso ns 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
5.  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.  
6.  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.  
(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.   
  WT/ACC/SPEC/NPL/6/Corr.1
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(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.  
(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.   
 WT/ACC/SPEC/NPL/6/Corr.1 
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Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
(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.  
II.  COMMUNICATION SERVICES 
2. 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 mode3 commitments for courier services.  (1) None 
(2) None (3) None 
 
  
 
 (4) Unbound, except as indicated in 
horizontal section.  
3.  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   
  WT/ACC/SPEC/NPL/6/Corr.1
 Page 11Modes of supply    (1) Cross-Border supply   (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural perso ns 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
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  
  
 WT/ACC/SPEC/NPL/6/Corr.1 
Page 12 Modes of supply    (1) Cross-Border supply   (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural perso ns 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
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.  
III. CONSTRUCTION AND RELATED  ENGINEERING SERVICES 
2. 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   
  WT/ACC/SPEC/NPL/6/Corr.1
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5. 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.  
IV. DISTRIBUTION SERVICES 
1. 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.  
2. Wholesale Services,  
except CPC 62244 1) 2) 3) and 4) Unbound except as 
indicated in the ho rizontal 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 services
 
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 ho rizontal 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.   
 WT/ACC/SPEC/NPL/6/Corr.1 
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Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
3. Retailing Services,  
except CPC 63234 1) 2) 3) and 4) Unbound except as 
indicated in the ho rizontal 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 ho rizontal 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.  
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.  
4. 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.   
  WT/ACC/SPEC/NPL/6/Corr.1
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Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
V.  EDUCATIONAL SERVICES 
3. Higher Education services  
(CPC 923) 
 4. Adult Education Services  
(CPC 924) 
 5. 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.  
VI.  ENVIRONMENTAL SERVICES 
1. Sewage Services (CPC 9401) 
2. Refuse disposal services   
(CPC 9402) 
3. 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.   
 WT/ACC/SPEC/NPL/6/Corr.1 
Page 16 Modes of supply    (1) Cross-Border supply   (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural perso ns 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
VII.  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 institutions. No such limitation will exist as of  by  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 commercial bank may accept deposits, which are repayabl e upon demand. Only financial institutions with rating of at least 'B' by Credit Rating Agency e.g. 
MOODI, Standard & Poor can have commercial presence in Nepal. The total foreign shareholding in  any instituti on providing finan cial services is limited to 67 per cent of the issued 
share capital. It has, nevertheless, been bound for the existing fo reign financial service providers  as to their scope of opera tion and equity structure. The shares held by foreign 
nationals and foreign financial institutions in their locally incorporated companies are not transferable without the prior wri tten approval of the Nepal Rastra Bank (the central bank) 
or any other competent authority as the case may be. Representative offices may not  be engaged in commercial business. The memb ers of the Board of Directors of the  a financial 
service supplier will be in proportion to equity re presentation of that financial service supplier. 
1. 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.  
(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.   
  WT/ACC/SPEC/NPL/6/Corr.1
 Page 17Modes of supply    (1) Cross-Border supply   (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural perso ns 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
(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.  
2. 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 
(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.  (1) None 
 
 
  
 
 (2) None 
 
  
 
  
(3)  None, except as specified in the 
general conditions and horizontal section 
   
 WT/ACC/SPEC/NPL/6/Corr.1 
Page 18 Modes of supply    (1) Cross-Border supply   (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural perso ns 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
(b) Lending of all types, including, inter-
alia, consumer credit, mortgage 
credit, factoring and 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  - 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 (4) Unbound, except as specified in the 
horizontal section. (4) Unbound, except as indicated in 
horizontal section.   
  WT/ACC/SPEC/NPL/6/Corr.1
 Page 19Modes of supply    (1) Cross-Border supply   (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural perso ns 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
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 
VIII.  HEALTH RELATED AND SOCIAL SERVICES 
1. 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.  
IX.  TOURISM AND TRAVEL RELATED SERVICES 
1.  Tourism and restaurants  
 Hotel, lodging services (CPC 6411) 
(star hotels only);  Graded 
restaurants (CPC 6421-6423)** 
 
2.  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.   
 WT/ACC/SPEC/NPL/6/Corr.1 
Page 20 Modes of supply    (1) Cross-Border supply   (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural perso ns 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
X. RECREATIONAL, CULTURAL AND SPORTING SERVICES 
5. 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.  
XI.  TRANSPORT SERVICES 
3.  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.  
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.   
  WT/ACC/SPEC/NPL/6/Corr.1
 Page 21Modes of supply    (1) Cross-Border supply   (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural perso ns 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
7.  Pipeline Transport Services 
(a) Transportation of Fuels (CPC 713(1) 
(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.  
8.  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.  WT/ACC/SPEC/NPL/6/Corr.1 
Page 22  
 
 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 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:  
 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 co mmercially 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. 
  WT/ACC/SPEC/NPL/6/Corr.1 
 Page 23 
 
 
  
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 less 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, conditions (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. 
 WT/ACC/SPEC/NPL/6/Corr.1 
Page 24  
 
 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 specific government uses is 
not required. 
   
  WT/ACC/SPEC/NPL/6/Corr.1
 Page 25Lists 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 
Audiovisual Services-
Production and distribution of motion picture and television 
programmes  Measures based upon co-
production agreements of audiovisual works, which confer 
National Treatment  to 
audiovisual works covered by these agreements  countries with which such 
bilateral or multilateral agreements are in  force, now or 
in the future.   Subject to the duration of the 
agreement concerned. The aim of these agreements is 
to promote cultural links between the countries 
concerned. 
Tourism Higher allocation of convertible 
currency for tr avel purposes. All OECD countries. Indefinite To reflect higher board and 
lodging costs in countries 
mentioned 
 
 
 
__________