WT/L/1075  
 
19 November  2019 
(19-7892) Page: 1/5 
General Council  
9-11 December 2019  
  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  12 November 2019 , 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 WTO Agreement.  
This report covers calendar year 2018 , the most recent year for which full-year data is available , 
and data for the first six months of 2019.  
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 additional 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 This program builds 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 objectives of the TIFA are to 
expand trade,  investment , and technical cooperation , and to strengthen economic relations between 
the parties.  
 
                                                
1 WT/L/1001.  WT/L/1075  
 
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  3  PERFORMANCE  
3.1.  The trade preferences were implemented on 1 5 December  2016. In 2018, US imports from 
Nepal were US$ 98.5 million , and US exports to Nepal were US$55.5 million . In 2018, US imports 
under the Nepal preferences were approximately US$ 3.1 million . 
3.2.  The three largest categories of goods entering the United States under the preference program 
were hats and headgear, shawls, and handbags.  The following table includes data on US  imports 
from Nepal  for 2018 and the first six months of 201 9. 
 
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 WT/L/1075  
 
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  TABLE 1  
LEADING US  IMPORTS FOR CONSUMPTION UNDER NEPAL PREFERENCE PROVISIONS,  
2018 AND 2019 YTD (THROUGH JUNE)  
HTS number  Description  2018  2019 YTD 
(through 
June)  
  Value (1,000 dollars)  
6505.00.30  Hats and headgear, of wool, knitted or crocheted or made 
up from knitted or crocheted fabric  808 45 
6214.20.00  Shawls, scarves, mufflers, mantillas, veils and the like, not 
knitted or crocheted, of wool or fine animal hair  490 144 
4202.92.15  Travel, sports and similar bags with outer surface of 
cotton, not of pile or tufted construction  482 164 
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  149 9 
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  148 78 
5703.10.20  Hand-hooked carpets and other textile floor coverings, 
tufted, whether or not made up, of wool or fine a nimal hair  121 20 
5701.10.90  Carpets and other textile floor coverings, of wool or fine 
animal hair, not hand -hooked, not hand knotted during 
weaving  90 49 
4202.32.40  Articles of a kind normally carried in the pocket or 
handbag, with outer surface of cot ton, not of pile or tufted 
construction  75 39 
6216.00.80  Gloves, mittens and mitts, not knitted or crocheted, of 
wool or fine animal hair, nesoi  74 7 
4202.92.20  Travel, sports and similar bags with outer surface of 
vegetable fibers, excl. cotton, not of pile construction  63 47 
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 b raid 58 0 
6505.00.90  Hats and headgear, of textile materials (other than of 
cotton, flax, wool or man -made fibers), nesoi  52 16 
5702.91.30  Floor coverings, not of pile construction, woven not on 
power -driven loom, made up, of wool or fine animal hair, 
nesoi 47 2 
4202.92.39  Travel, sports and similar bags with outer surface of textile 
materials other than MMF, paper yarn, silk, cotton  40 22 
6214.90.00  Shawls, scarves, mufflers, mantillas, veils and the like, not 
knitted or crocheted, of textile materials nesoi  34 10 
4202.22.89  Handbags with or without shoulder strap or without 
handle, with outer surface of textile materials nesoi  33 14 
6117.80.85  Headbands, ponytail holders & similar articles, of textile 
materials other than containing 70% or more by weigh t of 
silk, knitted/crocheted  32 6 
4202.32.99  Articles of a kind normally carried in the pocket or 
handbag, with outer surface of other textile materials  29 19 
6217.10.85  Headbands, ponytail holders and similar articles, of textile 
materials containing < 70% by weight of silk, not 
knit/crochet  26 9 
5703.90.00  Carpets and other textile floor coverings, tufted, whether 
or not made up, of o ther textile materials nesoi  24 0 
5703.10.80  Carpets and other textile floor coverings, tufted, whether 
or not made up, of wool or fine animal hair, nesoi  19 11 
6505.00.25  Hats and headgear, of cotton or flax, not knitted, not 
certified hand -loomed folklore goods  17 4 
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  16 12 
6117.10.60  Shawls, scarves, mufflers, mantillas, veils and the like, 
nesoi 16 1 WT/L/1075  
 
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  HTS number  Description  2018  2019 YTD 
(through 
June)  
  Value (1,000 dollars)  
5705.00.20  Carpets and other textile floor coverings, whether or not 
made up, nesoi  15 0 
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  15 4 
6214.10.10  Shaw ls, scarves, mufflers, mantillas, veils and the like, not 
knitted or crocheted, containing 70% or more silk or silk 
waste  14 6 
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  14 5 
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  14 (a) 
6505.00.15  Hats and headgear, of cotton and/or flax, knitted  13 24 
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  12 0 
6506.99.60  Headgear (other than safety headgear), nesoi, of materials 
other than rubber, plastics, or furskins, whether or not 
lined or trimmed  11 2 
4202.92.60  Bags, cases and similar containers, nesoi, with outer 
surface of cotton  10 2 
5702.50.59  Carpets & other textile floor coverings, not of pile 
construction, woven, not made up, of other textile 
materials nesoi  9 0 
4202.12.89  Trunks, suitcases, vanity & attache cases, occupational 
luggage and similar containers, with outer surface of  
textile materials nesoi  8 0 
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  8 4 
5702.49.20  Carpets & other textile floor coverings of pile construction, 
woven, not tufted or flocked, made up, of other textile 
materials nesoi  8 0 
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  6 19 
6214.40.00  Shawls, scarves, mufflers, mantillas, veils and the like, not 
knitted or crocheted, of artificial fibers  5 5 
4202.12.40  Trunks, suitcases, vanity & attache cases, occupational 
luggage & like containers, surface s of cotton, not of pile or 
tufted construction  5 1 
4202.22.81  Handbags with or without shoulder strap or without 
handle, with outer surface of MMF materials  3 0 
6301.90.00  Blankets and traveling rugs, nesoi  3 0 
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  3 (a) 
4202.92.08  Insulated food or beverage bags with outer surface of 
textile materials, nesoi  2 0 
4202.92.31  Travel, sports and similar bags with outer surface of MMF 
textile materials  1 6 
4202.32.91  Articles of a kind normally carried in the pocket or 
handbag, with ou ter surface of cotton  1 3 
4202.92.45  Travel, sports and similar bags with outer surface of plastic 
sheeting  1 (a) 
4202.99.90  Cases, bags and similar containers, nesoi, with outer 
surface of vulcanized fiber or of paperboard  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  1 (a) 
4202.12.60  Trunks, suitcases, vanity & attache  cases, occupational 
luggage & like containers, w outer surface of veg. fibers, 
excl. cotton  (a) 0 
4202.92.93  Bags, cases and similar containers with outer surface of 
textile materials, not of MMF  (a) 0 WT/L/1075  
 
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  HTS number  Description  2018  2019 YTD 
(through 
June)  
  Value (1,000 dollars)  
5702.99.15  Carpets and other textile floor covering s, not of pile 
construction, woven, made up, of cotton, nesoi  (a) 0 
6505.00.08  Hats and headgear made from hat forms and hat bodies of 
6501, except of fur felt  (a) 0 
6504.00.90  Hats and headgear, plaited or assembled from strips of any 
material (o/than veg. fibers/unspun fibrous veg. materials 
and/or paper yarn)  (a) 1 
6505.00.20  Headwear, of cotton, not knitted ; certified hand -loomed 
and folklore hats & headgear, of cotton or flax, not knitted  (a) 0 
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.  (a) (a) 
4202.12.21  Trunks, suitcases, vanity and attache cases and similar 
containers, with outer surface of plastics  (a) 0 
4202.92.33  Travel, sports and similar bags with outer surface of textile 
materials of paper yarn, silk or cotton  (a) 0 
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) 0 
6214.10.20  Shawls, scarves, mufflers, mantillas, veils and the like, not 
knitted or crocheted, containing less than 70% silk or silk 
waste  0 2 
4202.32.93  Articles of a kind normally carried in the pocket or 
handbag, with outer surface of MMF  0 1 
  Total 3,127  810 
(a) Less than $1,000.  
Note:  Because of rounding, figures may not add to totals given. The abbreviation "nesoi" stand for "not 
elsewhere specified or otherwise included."  
Source:  Compiled from official statistics of the US  Department of Commerce.  
 
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