WT/L/1176  
 
7 November  2023 
(23-7515) Page: 1/4 
General Council  
14-15 December 2023  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 27 October 2023 , 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 neces sary 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 Gener al 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 year 2022, the most recent year for which 
full-year data is available, and data for the first seven months of 2023.  
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") authorized 
the President to provide 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 dev astating earthquake and aftershocks in April  2015. 
Since 1976, the Generalized System of Preferences (GSP) program has provided tariff preferences 
for certain US imports from eligible developing countries, including Nepal. Section 915 of the Act 
expands th ese tariff preferences to make an additional 77 eight -digit tariff lines eligible for duty -free 
treatment if the President determines that certain eligibility requirements are met.3 The trade 
preferences were implemented on 15  December  2016.  
2.2.  Section 915(e ) of the Act requires the President on an annual basis to monitor, review, and 
report to Congress on the compliance of Nepal with the Act 's eligibility requirements. Under 
section  915(b)(2) of the Act, the President may withdraw, suspend, or limit preferen tial treatment 
to Nepal if Nepal does not meet the eligibility criteria.  
 
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 . 
3 Section 9 15 of the TFTEA originally grant ed Nepal duty -free treatment for products covered by 66 
eight-digit tariff lines in the Harmonized Tariff Schedule (HTS), which otherwise were ineligible for duty -free 
treatment under the Generalized System of Preferences (G SP) program.  However, d ue to changes in the US 
Harmonized Tariff Schedule, the number of tariff lines for which Nepal is exempt from customs duties increased 
in July 2016 to 77 eight -digit tariff lines.  WT/L/1176  
 
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  2.3.  Trade preferences for Nepal build on an existing framework of U.S. programs intended to assist 
Nepal's  economic development, including the US -Nepal Trade and Investment  Framework 
Agreement (TIFA), which entered into force in April  2011. The main 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 2022, total 
US imports from Nepal were US$132.6  million, and total US exports to Nepal were US$259.4  million, 
mostly concentrated in pharmaceuticals and medicines, oil seeds and grains and associated milling 
products and comp uter equipment.4 In 2022, US imports under the Nepal preferences were 
approximately US$4.7  million.  
3.2.  The three largest categories of goods entering the United States under the preference program 
were travel, sports, and similar bags; hats and headgear; han dbags; and carpets. The following 
table includes data on US  imports under Nepal preference provisions for 2022 and the first seven 
months of 2023.  
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4 Consulted at: https://dataweb.usitc.gov . WT/L/1176  
 
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  TABLE 1  
LEADING US  IMPORTS FOR CONSUMPTION UNDER NEPAL PREFERENCE PROVISIONS,  
2022 AND 2023 YTD (THROUGH JULY)  
HTS 
number  Description  2022 2023 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  1,760.3  776.8  
6505.00.30  Hats and headgear, of wool, knitted or crocheted or made up from 
knitted or crocheted fabric  550.0  33.8 
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  417.5  184.5  
5701.10.90  Carpets and other textile floor coverings, of wool or fine animal 
hair, not hand -hooked, not hand knotted during weaving  282.3  23.1 
4202.92.39  Travel, sports and similar bags with outer surface of textile 
materials other than MMF, paper yarn, s ilk, cotton  244.6  163.4  
6214.20.00  Shawls, scarves, mufflers, mantillas, veils and the like, not knitted 
or crocheted, of wool or fine animal hair  241.4  127.1  
4202.92.20  Travel, sports and similar bags with outer surface of vegetable 
fibers, excl. cotton, not of pile construction  221.9  68.7 
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  206.4  65.0 
4202.22.89  Handbags with or without shoulder strap or without handle, with 
outer surface of textile materials nesoi  134.7  144.4  
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  78.0 55.2 
6505.00.20  Headwear, of cotton, not knitted; certified hand -loomed and folklore 
hats & headgear, of cotton or flax, not knitted  68.3 27.8 
4202.92.31  Travel, sports and similar bags with outer surface of MMF textile 
materials  57.2 0.0 
6117.80.85  Headbands, ponytail holders & similar articles, of textile materials 
other than containing 70% or more by weight  of silk, 
knitted/crocheted  56.6 15.7 
6214.90.00  Shawls, scarves, mufflers, mantillas, veils and the like, not knitted 
or crocheted, of textile materials nesoi  42.5 61.8 
6217.10.85  Headbands, ponytail holders and similar articles, of textile materials 
containing < 70% by weight of silk, not knit/crochet  35.4 23.4 
5702.91.30  Floor coverings,  not of pile construction,  woven not on power -driven 
loom, made up, of wool or fine animal hair, nesoi  33.9 0.0 
6216.00.80  Gloves, mittens and mitts, not knitted or crocheted, of wool or fine 
animal hair, nesoi  32.6 1.7 
5702.49.20  Carpets & other textile floor coverings of pile construction, woven, 
not tufted or flocked, made up, of other textile materials nesoi  32.3 2.5 
5703.10.20  Hand-hooked carpets and other textile floor coverings, tufted, 
whether or not made up, of wool or fine animal hair  26.6 3.7 
6505.00.90  Hats and headgear, of textile materials (other than of cotton, flax, 
wool or man -made fibers), nesoi  22.0 27.4 
5703.10.80  Carpets and other textile floor coverings, tufted, whether or not 
made up, of wool or fine animal hair, nesoi  17.9 0.0 
5705.00.20  Carpets and other textile floor coverings, whether or not made up, 
nesoi 16.0 0.0 
6505.00.15  Hats and headgear, of cotton and/or flax, knitted  15.0 13.5 
4202.92.60  Bags, cases and similar containers, nesoi, with outer surface of 
cotton  14.2 0.0 
6505.00.25  Hats and headgear, of cotton or flax, not knitted, not certified hand -
loomed folklore goods  11.7 4.0 
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 10.4 0.0 
4202.32.99  Articles of a kind normally carried in the pocket or handbag, with 
outer surface of other textile materials  10.4 10.9 
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 7.9 4.6 
5702.50.59  Carpets & other textile floor coverings, not of pile construction, 
woven, not made up, of other textile materials nesoi  7.4 0.0 WT/L/1176  
 
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  HTS 
number  Description  2022 2023 YTD 
(through July)  
  Value (1,000 dollars)  
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  7.0 16.2 
6214.10.10  Shawls, scarves, mufflers, mantillas, veils and the like, not knitted 
or crocheted, containing 70% or more silk or silk waste  6.5 6.9 
6301.90.00  Blankets and traveling rugs, nesoi  5.6 1.2 
4202.92.33  Travel, sports and similar bags with outer surface of textile 
materials of paper yarn, silk or cotton  4.8 5.9 
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  4.5 0.4 
6214.40.00  Shawls, scarves, mufflers, mantillas, veils and the like, not knitted 
or crocheted, of artificial fibers  4.2 3.2 
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  3.9 4.5 
4202.32.91  Articles of a kind normally carried in the pocket or handbag, with 
outer surface of cotton  3.4 0.8 
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  3.3 5.4 
4202.31.60  Articles of a kind normally carried in the pocket or handbag, with 
outer surface of leather, compo sition or patent leather, nesoi  2.7 0.3 
4202.32.93  Articles of a kind normally carried in the pocket or handbag, with 
outer surface of MMF  2.4 0.0 
4202.92.93  Bags, cases and similar containers with outer surface of textile 
materials, not of MMF  1.4 0.0 
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  1.3 2.1 
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  1.3 0.0 
6506.99.60  Headgear (other than safety headgear), nesoi, of materials other 
than rubber, plastics, or furskins, whether or not lined or trimmed  0.8 0.0 
4202.22.81  Handbags with or without shoulder strap or without handle, with 
outer surface of MMF materials  0.5 0.0 
4202.12.60  Trunks, suitcases, vanity & attache cases, occupational luggage & 
like containers, w outer surface of veg. fibers, excl. cotton  0.4 4.2 
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 0.4 0.0 
4202.11.00  Trunks, suitcases, vanity & all other cases, occupational luggage & 
like containers, surface of leather, composition or patent leather  0.0 1.0 
4202.12.81  Trunks, suitcases, vanity & attache cases, occupational luggage and 
similar containers, with outer surface of MMF materials  0.0 1.8 
4202.91.90  Cases, bags and containers nesoi, other than golf bags, with outer 
surface of leather, of composition leather  0.0 0.6 
4202.92.45  Travel, sports and similar bags with outer surface of plastic sheeting  0.0 0.5 
4202.99.90  Cases, bags and similar containers, nesoi, with outer surface of 
vulcanized fiber or of pap erboard  0.0 0.3 
6214.10.20  Shawls, scarves, mufflers, mantillas, veils and the like, not knitted 
or crocheted, containing less than 70% silk or silk waste  0.0 0.4 
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  0.0 2.8 
  Total 4,709.8  1,897.5  
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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