RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/NPL/4/Rev.3 
12 August 2003 
 (03-4202) 
Working Party on the 
Accession of Nepal Original:   English 
 
 
 
ACCESSION OF THE KINGDOM OF NEPAL 
 
Consolidated List of Specific Commitments in Services  
 
Revision  
  
 The Government of the Kingdom of Nepal has s ubmitted the attached Co nsolidated List of 
Specific Commitments in Services and List of Arti cle II MFN Exemptions with a request that it be 
circulated to members of the Working Party. 
 
_______________ 
  
 WT/ACC/SPEC/NPL/4/Rev.3 
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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 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. 
 (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 
 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.3
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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 a one year period. 
 
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: 
 
(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   
 WT/ACC/SPEC/NPL/4/Rev.3 
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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.3
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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. 
 
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   
(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 
 (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.  
 WT/ACC/SPEC/NPL/4/Rev.3 
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(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  
(e) Engineering services 
(CPC 8672) as specified 
below: 
 
- Engineering design services 
for the construction of civil engineering works 
(CPC 86724) 
 - Engineering design services 
for industrial processes and 
production 
(CPC 86725) 
 - 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 a 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 the 
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 (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 (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/4/Rev.3 
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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  
  (CPC 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 
   
  WT/ACC/SPEC/NPL/4/Rev.3
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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.3 
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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  
(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   
  WT/ACC/SPEC/NPL/4/Rev.3
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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 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.3 
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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 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. 
 
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 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 (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.3
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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.  
 
  
(4) Unbound, except as indicated in 
horizontal section and consultants not available in Nepal may enter to work for 
90 days. 
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. 
 
(4) Unbound, except as indicated in 
horizontal section. (1)  None 
(2) None (3) None 
 
  
 
  
 
 
 
  
 
  
 
 (4) Unbound, except as indicated in 
horizontal section and consultants not 
available in Nepal may enter to work for 90 days. 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.3 
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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 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 
 (1)  None 
(2)  None 
(3)  None   
 
  
 
  
 
  
 
 (4) Unbound, except as indicated in 
horizontal section and consultants not 
available in Nepal may enter to work for 
90 days. 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.3
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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 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.3 
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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 (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 Agreem ent on Trade in Services and the Annex on F inancial Services.  Al l 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 ar e 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 institutions 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 regi stered finance company may accept deposits.  Only a licensed commercial bank may acce pt deposits which are repayable upon demand.  
Approval, registration and licensing relating to foreign banks a nd other financial institutions will be subject to an economic needs test as applicable to domestic commercial banks 
and other financial institutions.  Only financial institutions with  rating of at least 'B' by Credit Rating Agency e.g. Moody's , Standard & Poor can have commercial presence in 
Nepal.  The total foreign shareholding in any institution providi ng financial 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 st ructure.  The shares held by foreign n ationals and foreign financial institutions in their locally 
incorporated companies are not tr ansferable without the prior written approval of th e Nepal Rastra Bank (the Central Bank) or a ny other competent authority as the case may be.  
Representative offices may not engage in commercial business.  Th e majority of the members of th e Board of Directors of the com pany 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.3 
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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   
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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 speci fied 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 
(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 (4) Unbound, except as specified in the 
horizontal section. (4) Unbound, except as indicated in 
horizontal section.   
 WT/ACC/SPEC/NPL/4/Rev.3 
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 - 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. 
(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.3
 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.3 
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.3
 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 tr avel 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.3 
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.3 
 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.3 
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. 
_______________