WT/L/1156  
 
1 November  2022 
(22-8188) Page: 1/4 
General Council  
19-20 December 2022  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  17 October 2022,  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 GATT  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 2021, the most recent year for which 
full-year data is available, and data for the first seven months of 2022.  
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 m eet 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/1156  
 
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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 2021, total 
US imports from Nepal were US$107.8 million, and total US exports to Nepal were US$196.6 million, 
mostly concentrated in oil seeds; grains, fodder and animal feed as well as machinery, mechanical 
appliances, and pharmaceuti cal products.3 Between January 2021 and July 2022, US imports under 
the Nepal preferences were approximately $6.5 million.  
3.2.  The three largest categories of goods entering the United States under the preference program 
were travel, sports, and similar bags;  carpets and other textile floor coverings;  hats and headgear. 
The following table includes data on US  imports under Nepal preference provisions for 2021 and the 
first seven months of 2022.  
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3 Consulted at: https://dataweb.usitc.gov . WT/L/1156  
 
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  TABLE 1  
LEADING US  IMPORTS FOR CONSUMPTION UNDE R NEPAL PREFERENCE PROVISIONS,  
2021 AND 2022 YTD (THROUGH JULY)  
HTS 
number  Description  2021 2022 YTD 
(through July)  
  Value (1,000 dollars)  
4202.92.15  Travel, sports and similar bags with outer surface of cotton, not of 
pile or tufted construction  1,217.9  1,181.0  
5701.10.90  Carpets and other textile floor coverings, of wool or fine animal hair, 
not hand -hooked, not hand knotted during weaving  489.3  143.0  
6505.00.30  Hats and headgear, of wool, knitted or crocheted or made up from 
knitted or crocheted fabric  416.3  134.0  
6214.20.00  Shawls, scarves, mufflers, mantillas, veils and the like, not knitted 
or crocheted, of wool or fine animal hair  297.5  82.4 
4202.92.39  Travel, sports and similar bags with outer surface of textile materials 
other than MMF, paper yarn, silk, cotton  273.2  126.7  
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  199.1  188.7  
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  159.1  68.2 
4202.92.20  Travel, sports and similar bags with outer surface of vegetable fibers, 
excl. cotton, not of pile const ruction  120.6  152.6  
5702.49.20  Carpets & other textile floor coverings of pile construction, woven, 
not tufted or flocked, made up, of other textile materials nesoi  112.5  21.4 
4202.22.89  Handbags with or without shoulder strap or without handle, with 
outer surface of textile materials nesoi  89.6 56.7 
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  65.5 37.3 
4202.29.50  Handbags w. or w/o shld. strap or w/o handle of mat. (o/t leather, 
shtng. of plas., tex. mat., vul. fib. or paperbd.), pap.cov.,of mat. 
nesoi 59.8 0.4 
6505.00.20  Headwear, of cotton, not knitted; certified hand -loomed and folklore 
hats & headgear, of cotton or flax, not knitted  50.3 38.3 
6117.80.85  Headbands, ponytail holders & similar articles, of textile materials 
other than containing 70% or more by weight  of silk, 
knitted/crocheted  44.9 15.3 
6505.00.50  Hats and headg ear, of man -made fibers, knitted or crocheted or 
made up from knitted or crocheted fabric, wholly or in part of braid  42.9 0.8 
6217.10.85  Headbands, ponytail holders and similar articles, of textile materials 
containing < 70% by weight of silk, not knit/c rochet  30.7 23.6 
6214.90.00  Shawls, scarves, mufflers, mantillas, veils and the like, not knitted 
or crocheted, of textile materials nesoi  30.5 13.7 
6505.00.15  Hats and headgear, of cotton and/or flax, knitted  28.8 8.3 
4202.32.99  Articles of a kind normally carried in the pocket or handbag, with 
outer surface of other textile materials  28.0 6.0 
6216.00.80  Gloves, mittens and mitts, not knitted or crocheted, of wool or fine 
animal hair, nesoi  25.2 10.7 
5703.10.20  Hand-hooked carpets and other textile floor coverings, tufted, 
whether or not made up, of wool or fine animal hair  24.3 26.6 
5703.10.80  Carpets and other textile floor coverings, tufted, whether or 
not made up, of wool or fine animal hair, nesoi  23.7 7.2 
6301.90.00  Blankets and traveling rugs, nesoi  22.8 5.6 
6505.00.90  Hats and headgear, of textile materials (other than of cotton, flax, 
wool or man -made fibers), nesoi  19.8 16.5 
4202.32.91  Articles of a kind normally carried in the pocket or handbag, with 
outer surface of cotton  15.1 1.1 
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  12.5 10.4 
6505.00.25  Hats and headgear, of cotton or flax, not knitted, not certified hand -
loomed folklore goods  8.4 6.1 
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 construction or braid  8.1 3.3 
6308.00.00  Needlecraft sets for making up into rugs, etc., consist of woven fabric 
and yarn, whether/not w/accessories, put up packings for retail sale  6.1 0.0 
4202.92.60  Bags, cases and similar containers, nesoi, with outer surface of 
cotton  6.1 12.7 WT/L/1156  
 
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  HTS 
number  Description  2021 2022 YTD 
(through July)  
  Value (1,000 dollars)  
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  5.2 3.9 
4202.92.33  Travel, sports and similar bags with outer surface of textile materials 
of paper yarn, silk or cotton  5.1 1.9 
6214.10.10  Shawls, scarves, mufflers, mantillas, veils and the like, not knitted 
or crocheted, containing 70% or more silk or silk waste  3.0 4.4 
4202.12.89  Trunks, suitcases, vanity & attache cases, occupational luggage and 
similar containers, wi th outer surface of textile materials nesoi  2.6 (a) 
6506.99.60  Headgear (other than safety headgear), nesoi, of materials other 
than rubber, plastics, or furskins, whether or not lined or trimmed  2.3 0.8 
4202.32.93  Articles of a kind normally carried in the pocket or handbag, with 
outer surface of MMF  2.3 0.9 
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 1.9 2.7 
6117.10.60  Shawls, scar ves, mufflers, mantillas, veils and the like, nesoi  1.7 (a) 
4202.92.45  Travel, sports and similar bags with outer surface of plastic sheeting  1.6 (a) 
5703.90.00  Carpets and other textile floor coverings, tufted, whether or not 
made up, of other textile materials nesoi  1.6 (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  1.4 4.1 
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  1.3 (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  0.8 2.1 
4202.92.93  Bags, cases and similar containers with out er surface of textile 
materials, not of MMF  0.6 1.4 
6214.40.00  Shawls, scarves, mufflers, mantillas, veils and the like, not knitted 
or crocheted, of artificial fibers  0.3 4.2 
4202.12.60  Trunks, suitcases, vanity & attache cases, occupational luggage & 
like containers, w outer surface of veg. fibers, excl. cotton  (a) 0.4 
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  (a) 3.5 
4202.92.31  Travel, sports and similar bags with outer surface of MMF textile 
materials  (a) 45.2 
5702.91.30  Floor coverings,  not of pile construction,  woven not on power -driven 
loom, made up, of wool or fine animal hair, nesoi  (a) 33.3 
5705.00.20  Carpets and other textile floor coverings, whether or not made up, 
nesoi (a) 16.0 
  Total 3,960.3  2,523.7  
(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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