WT/L/109 9 
14 October  2020 
(20-7060) Page: 1/4 
General Council  
13-14 October 2020  Original:  English  
 
  
TRADE PREFERENCES FOR NEPAL  
REPORT OF THE GOVERNMENT OF THE UNITED STATES  
UNDER THE DECISION OF 7 DECEMBER  20161 
The following communication, dated 9 October 2020 , is being circulated at the request of the 
Delegation of the United States.  
 
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1  INTRODUCTION  
1.1.  On 7 December  2016, the United States was granted a waiver from its obligations under 
paragraph 1 of Article I of the G ATT 1994 to the extent necess ary to permit the United  States 
Government to provide preferential treatment for eligible imports into the United States from Nepal . 
This waiver expires  31 December  2025. 
1.2.  Under the terms of this waiver, the United States is required to submit to the Genera l Council 
an annual report on the implementation of the trade -related provisions of the programme with a 
view to facilitating the annual review provided for in paragraph 4 of Article IX of the Agreement 
establishing the WTO .2 This report covers calendar y ear 2019 , the most recent year for which 
full-year data is available , and data for the first seven  months of 2020 . 
2  DUTY FREE TREATMENT UNDER THE PREFERENCES FOR NEPAL  
2.1.  Section 915 of the Trade Facilitation and Trade Enforcement Act of 2015 ( "the Act ") provides 
for non -reciprocal preferential trade benefits through  31 December  2025 for certain US imports from 
Nepal that meet specific eligibility criteria . These preferences are provided to assist Nepal in its 
recovery from a devastating earthquake and  aftershocks in April 2015. Since 1976, the United States 
has granted tariff preferences to developing countries,  including Nepal, under the Generalized 
System of Preferences (GSP) program . Section 915 of the  Act expands these tariff preferences to 
make an add itional 77 eight -digit tariff lines  eligible for  duty-free treatment if the President 
determines that certain eligibility requirements are met . The trade preferences were implemented 
on 15 December  2016. 
2.2.  Section 915(e) of the Act requires the President to monitor, review, and report to Congress on 
the compliance of Nepal with the eligibility requirements in subsection (b)(1) . Under 
section  915(b)(2) of the Act, the President may withdraw, suspend , or limit  preferential treatment 
to Nepal if Nepal does not meet the eligibility criteria.  
2.3.  Trade preferences for Nepal  build on an existing framework of programs intended to assist 
Nepal 's economic development . In particular, the United States and Nepal signed a Trade and 
Investment  Framework Agreement (TIFA), which entered into force in April 2011. The main 
 
1 WT/L/1001.  
2 Marrakesh Agreement Establishing the World Trade Organization (WTO), consulted at: 
https://www.wto.org/english/docs_e/legal_e/04 -wto_e.htm .  WT/L/109 9 
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  objectives of the TIFA are to expand trade,  investment , and technical cooperation , and to strengthen 
economic relations between the parties.  
3  PERFORMANCE  
3.1.  The US implemented trade preferences for Nepal on 15 December  2016. In 201 9, total 
US imports from Nepal were US$ 91 million , and total US exports to Nepal were US$122.3  million , 
mostly concentrated in oil seeds ; grains, fodder and animal feed as well as machinery and 
mechanical appliances .3 In 2019 , US imports under the Nepal preferences were approximately 
US$3.1 million . 
3.2.  The three largest categories of goods entering the United States under the preference program 
were hats and headgear ; shawls, scarves, mufflers, mantillas, veils and the like ; and tra vel, sports , 
and similar bags . The following table includes data on US  imports under Nepal  preference provisions 
for 2019 and the first seven  months of 20 20. 
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3 Consulted at: https://dataweb.usitc.gov .  WT/L/109 9 
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  TABLE 1  
LEADING US IMPORTS FOR CONSUMPTION UNDER NEPAL PREFERENCE PROVISIONS,  
2019 AND 2020 YTD (THROUGH JU LY) 
HTS 
number  Description  2019 2020 YTD 
(through Ju ly) 
  Value (1,000 dollars)  
6505.00.30  Hats and headgear, of wool, knitted or crocheted or made up from 
knitted or crocheted fabric  847.4  20.6 
6214.20.00  Shawls, scarves, mufflers, mantillas, veils and the like, not knitted or 
crocheted, of wool or fine animal hair  509.5  82.6 
4202.92.15  Travel, sports and similar bags with outer surface of cotton, not of 
pile or tufted construction  409.9  139.8  
4202.22.45  Handbags with or without shoulder strap or without handle, with 
outer surface of cotton, not of pile or tufted construction or braid  213.0  16.9 
6505.00.40  Hats and headgear, of wool, made up from felt or of textile material, 
not knitted or crocheted or made up from knitted or crocheted fabric  152.1  37.1 
5701.10.90  Carpets and other textile floor coverings, of wool or fine animal hair, 
not hand -hooked, not hand knotted during weaving  149.3  157.1  
4202.92.20  Travel, sports and similar bags with outer surface of vegetable fibers, 
excl. cotton, not of pile construction  89.7 21.0 
6216.00.80  Gloves, mittens and mitts, not knitted or crocheted, of wool or fine 
animal hair, nesoi  62.5 2.3 
5703.10.20  Hand-hooked carpets and other textile floor coverings, tufted, 
whether or not made up, of wool or fine animal hair  60.5 14.3 
4202.32.40  Articles of a kind normally carried in the pocket or handbag, with 
outer surface of cotton, not of pile or tufted construction  58.1 16.4 
4202.32.99  Articles of a kind normally carried in the pocket or handbag, with 
outer surface of other textile materials  54.4 6.0 
4202.92.39  Travel, sports and si milar bags with outer surface of textile materials 
other than MMF, paper yarn, silk, cotton  45.5 8.9 
6117.80.85  Headbands, ponytail holders & similar articles, of textile materials 
other than containing 70% or more by weigh t of silk, 
knitted/crocheted  42.7 6.2 
4202.22.89  Handbags with or without shoulder strap or without handle, with 
outer surface of textile materials nesoi  41.4 7.4 
6214.90.00  Shawls, scarves, mufflers, mantillas, veils and the like, not knitted or 
crocheted, of textile materials nesoi  37.8 8.6 
4202.22.40  Handbags with or without shoulder strap or without handle, with 
outer surface of textile materials, wholly or in part of braid, nesoi  32.2 0.4 
6505.00.15  Hats and headgear, of cotton and/or flax, knitted  27.8 0.8 
6505.00.50  Hats and headgear, of man -made fibers, knitted or crocheted or 
made up from knitted or crocheted fabric, wholly or in part of braid  25.9 2.0 
6214.10.10  Shawls, scarves, mufflers, mantillas, veils and the like, not knitted or 
crocheted, containing 70% or more silk or silk waste  25.4 6.4 
6505.00.90  Hats and headgear, of textile materials (other than of cotton, flax, 
wool or man -made fibers), nesoi  24.0 1.3 
5702.49.20  Carpets & other textile floor coverings of pile c onstruction, woven, 
not tufted or flocked, made up, of other textile materials nesoi  22.7 (a) 
4202.32.80  Articles of a kind normally carried in the pocket or handbag,with outer 
surface of vegetable fibers,not of pile or tufted construction, nesoi  20.8 1.1 
6217.10.85  Headbands, ponytail holders and similar articles, of textile materials 
containing < 70% by weight of silk, not knit/crochet  19.7 6.1 
4202.92.60  Bags, cases and similar containers, nesoi, with outer surface of cotton  17.3 5.0 
4202.92.31  Travel, sports and similar bags with outer surface of MMF textile 
materials  15.5 1.0 
5702.91.40  Carpets & other textile floor coverings, not of pile construction, woven 
nesoi, made up, of wool or fine animal hair, nesoi  13.9 (a) 
6214.40.00  Shawls, scarves, mufflers, mantillas, veils and the like, not knitted or 
crocheted, of artificial fibers  11.1 (a) 
4202.22.60  Handbags with or w/o shoulder strap or w/o handle, outer surface of 
veg. fibers, exc. cotton, not of pile or tufted con struction or braid  10.6 0.8 
5703.10.80  Carpets and other textile floor coverings, tufted, whether or not made 
up, of wool or fine animal hair, nesoi  10.6 12.3 WT/L/109 9 
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  HTS 
number  Description  2019 2020 YTD 
(through Ju ly) 
  Value (1,000 dollars)  
5702.31.20  Carpets and other textile floor coverings of pile construction, woven, 
not tufted or flocked, not made up, of wool/fine animal hair, nesoi  10.5 83.5 
6506.99.60  Headgear (other than safety headgear), nesoi, of materials other 
than rubber, plastics, or furskins, whether or not lined or trimmed  9.5 (a) 
4202.29.90  Handbags with or without shoulder straps or without handle, with 
outer surface of vulcanized fiber or of paperboard, not covered with 
paper  6.9 2.7 
6301.90.00  Blankets and traveling rugs, nesoi  6.4 (a) 
6214.10.20  Shawls, scarves, mufflers, mantillas, veils and the lik e, not knitted or 
crocheted, containing less than 70% silk or silk waste  6.3 0.4 
6505.00.25  Hats and headgear, of cotton or flax, not knitted, not certified 
hand-loomed folklore goods  5.9 7.5 
4202.32.91  Articles of a kind normally carried in the pocket or handbag, with 
outer surface of cotton  4.8 4.3 
6505.00.80  Hats and headgear, of man -made fibers, made up from felt or of 
textile material, not knitted or crocheted, not in part of braid  4.4 (a) 
4202.92.93  Bags, cases and similar containers with outer surface of textile 
materials, not of MMF  4.3 0.4 
6117.10.60  Shawls, scarves, mufflers, mantillas, veils and the like, nesoi  3.3 0.4 
5705.00.20  Carpets and other textile floor coverings, whether or not made up, 
nesoi 2.9 7.8 
6505.00.60  Hats and headgear, of man -made fibers, knitted or crocheted or 
made up from knitted or crocheted fabrics, not in part of braid  1.9 2.1 
5702.91.30  Floor coverings,  not of pile construction,  woven not on power -driven 
loom, made up, of wool or fin e animal hair, nesoi  1.7 5.9 
4202.12.40  Trunks, suitcases, vanity & attache cases, occupational luggage & like 
containers, surfaces of cotton, not of pile or tufted construction  0.8 4.1 
4202.32.93  Articles of a kind normally carried in the pocket or handbag, with 
outer surface of MMF  0.7 1.2 
4202.92.91  Bags, cases and similar containers with outer surface of textile 
materials, of MMF except jewelry boxes  0.7 (a) 
6504.00.90  Hats and headgear, plaited or assembled from strips of any material 
(o/than v eg. fibers/unspun fibrous veg. materials and/or paper yarn)  0.7 (a) 
4202.22.70  Handbags with or w/o shoulder strap or w/o handle, with outer 
surface containing 85% or more of silk, not braided  0.6 0.3 
4202.21.60  Handbags, with or without shoulder strap or without handle, with 
outer surface of leather, composition or patent leather, nesoi, n/o 
$20 ea.  0.3 (a) 
4202.22.81  Handbags with or without shoulder strap or without handle, with 
outer surface of MMF materials  0.3 (a) 
4202.31.60  Articles of a kind normally carried in the pocket or handbag, with 
outer surface of leather, composition or patent leather, nesoi  (a) 1.3 
6505.00.20  Headwear, of cotton, not knitted ; certified hand -loomed and folklore 
hats & headgear, of cotton or flax, not knitted  (a) 3.6 
4202.12.60  Trunks, suitcases, vanity & attache cases, occupational luggage & like 
containers, w outer surface of veg. fibers, excl. cotton  (a) 1.1 
4202.92.45  Travel, sports and similar bags with outer surface of plastic sheeting  (a) 0.6 
4202.92.33  Travel, sports and similar bags with outer surface of textile materials 
of paper yarn, silk or cotton  (a) 0.7 
4202.91.90  Cases, bags and containers nesoi, other than golf bags, with outer 
surface of leather, of composition lea ther (a) 1.7 
  Total 3,123.8  711.8  
(a) Less than US$1,000.  
Note:  Because of rounding, figures may not add to totals given. The abbreviation "nesoi" stands for "not 
elsewhere specified or otherwise included."  
Source:  Compiled from official statistics of the US Department of Commerce.  
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