WT/TPR/M/381/Add.1  
8 March 2019  
(19-1428) Page: 1/49 
Trade Policy Review Body  
3 and 5 December 2018  Original: English/anglais/inglés  
 
  
TRADE POLICY REVIEW  
NEPAL 
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Mr. Eloi Laourou (Benin)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  Nepal .1 
 
 
Organe d'examen des politiques commerciales  
3 et 5 décembre 2018  
EXAMEN DES POLITIQUE S COMMERCIALES  
NÉPAL 
COMPTE RENDU DE LA R ÉUNION  
Addendum  
Président : S.E.  M. Eloi Laourou (Bénin)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  Népal .1 
 
 
Órgano de Examen de las Políticas Comerciales  
3 y 5 de diciembre de 2018  
EXAMEN DE LAS POLÍTI CAS COMERCIALES  
NEPAL 
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo.  Sr. Eloi Laourou (Benin)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los Miembros de la OMC,  así como las respues tas facilitadas por  Nepal .1 
                                                
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/381/Add.1  
 
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  ADVANCE WRITTEN QUES TIONS FROM MEMBERS  ................................ ............................  3 
Canada  ................................ ................................ ................................ ..............................  3 
European Union  ................................ ................................ ................................ ..................  4 
Iceland  ................................ ................................ ................................ ............................. 11 
Japan  ................................ ................................ ................................ ............................... 12 
Philippines  ................................ ................................ ................................ ........................ 13 
Saudi Arabia, Kingdom of  ................................ ................................ ................................ ....15 
Chinese Taipei  ................................ ................................ ................................ ................... 16 
Thailand  ................................ ................................ ................................ ........................... 18 
Additional Questions from Thailand  ................................ ................................ ...................... 19 
United States of America  ................................ ................................ ................................ ....21 
REPLIES PROVIDED BY NEPAL  ................................ ................................ .......................  23 
Canada  ................................ ................................ ................................ ............................. 23 
European Union  ................................ ................................ ................................ ................. 24 
Iceland  ................................ ................................ ................................ ............................. 32 
Japan  ................................ ................................ ................................ ............................... 33 
Philippines  ................................ ................................ ................................ ........................ 34 
Saudi Arabia, Kingdom of  ................................ ................................ ................................ ....36 
Chinese Taipei  ................................ ................................ ................................ ................... 39 
Thailand  ................................ ................................ ................................ ........................... 41 
United States of America  ................................ ................................ ................................ ....45 
FOLLOW -UP QUESTIONS BY THE EUROPEAN UNIO N AND REPLIES PROVID ED 
BY NEPAL  ................................ ................................ ................................ .......................  48 
European Union  ................................ ................................ ................................ ................. 48 
Nepal  ................................ ................................ ................................ ............................... 48 
 
 
 WT/TPR/M/381/Add.1  
 
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  ADVANCE WRITTEN QUES TIONS FROM MEMBERS  
Canada  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
  
PART 2 - TRADE AND INVESTMENT  REGIMES: 2.3 - TRADE AGREEMENTS AND ARRANGEMENTS  
 
Page 25 (Paragraph 2.23)  
 
In its Report, the Secretariat indicates that, since 2012, Nepal has made efforts to fulfil its notification 
obligations to the WTO. Canada would like to thank Nepal for submittin g some notifications, including 
on Export Subsidies (Table ES:1) and on Domestic Support (Table DS:1). The Secretariat Report 
indicates that there are still outstanding notifications to be notified to the different WTO committees 
and that several notificat ions are in the final stages of preparation before being submitted to the 
corresponding bodies of the WTO.  
 
Question:  
 
- Could Nepal provide Members with an update as to which outstanding notifications are in the 
final stage of preparation and for which Committees?  
 
PART 3 - TRADE POLICY AND PRACTICES BY MEASURE: 3.3.6 - GOVERNMENT PROCUREMENT  
  
Page 60 (Paragraph 3.107)  
 
The Secretariat 's Report notes that "Nepal is neither a Party nor an observer to the WTO Government 
Procurement Agreement ".  
  
Question : 
 
- Is Nepal considering becoming an observer to the WTO Agreement on Government 
Procurement?  
 
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
  
Page 10 (Paragraph 2.19)  
  
In its Government Report, Nepal indicates that the new electronic government pr ocurement (e -GP) 
system "has resulted in increased access of people, transparency, and gains in efficiencies in public 
procurement ". 
  
Questions:  
  
- Is the new e -GP system accessible to foreign -based suppliers?  
 
- Will the new e -GP system provide Nepal with statistical data on public procurement 
spending, numbers of contracts, procurement methods, or the number and value of 
contracts awarded to Nepalese and foreign companies?  
 
Pages 16 and 17 (Paragraphs 5.1 to 5.4)  
  
In its Government Report, Nepal outl ines its Trade Policy 2015  and its Nepal Trade Integration 
Strategy 2016  (hereinafter, "NTIS"). In paragraph 5.1, Nepal mentions that an update to its trade 
policy has "create[d] alignment between trade policy and NTIS ". Canada also notes that Trade Policy 
2015 and NTIS appear to have a number of similar and/or complementary objectives.  
  
Question:  
  
- Could Nepal expand on the relationship, similarities and differences between Trade Policy 
2015 and NTIS?  WT/TPR/M/381/Add.1  
 
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  European Union  
WT/TPR/S/381 – WTO Secret ariat's Report  
 
SUMMARY  
 
Paragraph 6, page 6  
The Secretariat's report states that "…New laws which were in development six years ago at the 
time of the last TPR have yet to be presented to Parliament (including a bill on safeguards, anti -
dumping and counte rvailing measures )…"in some cases, where the laws and institutions are in place, 
there is little data on enforcement, such as the laws relating to intellectual property rights, 
government procurement, and competition policy."  
 
EU Question N° 1 : Could Nepal  please advise on the timetable for the finalization and adoption of 
the Bill on safeguards, anti -dumping and countervailing measures ? 
 
EU Question N° 2: Could Nepal please advise which actions and measures are envisaged to collect 
and provide data on enfo rcement in respect of such laws relating to intellectual property rights, 
government proc urement, and competition policy?  
 
Paragraph 14, page 7  
The Secretariat's report states that "…The corporation tax system is quite complex….The  excise duty 
system is also complicated…It appears that, in two cases (cider and wine), the excise duty on 
domestic products is lower than on imported products."  
 
EU Question N° 3: Could Nepal please advise on actions and measures being considered to simpl ify 
the corporation tax sys tem and the excise duty system? Could Nepal also p lease advise on what 
actions and measures are being taken to address the two cases (cider and wine) in which the excise 
duty on domestic products is lower than on imported product s? 
 
Paragraph 17, page 8 
The Secretariat's report states that "…The Competition Promotion and Market Protection Act of 2007 
and its Implementing Regulation of 2010 prohibit anti -competitive agreements, abuse of dominant 
position, mergers and amalgamations with the intent of restricting trade, bid -rigging, and other 
anti-competitive activities…However, although the legal and institutional framework is in place, the 
Act has never been used to prosecute a case,…"  
 
EU Question N° 4: Could Nepal please  advise on the measures contemplated for ensuring the 
implementation of the Competition Promotion and Market Protection Board legislation relatin g to 
anti-competitive practices?  
 
1 ECONOMIC ENVIRONMENT  
 
Paragraph 1.1, page 10 
The Secretariat's report state s that " The Nepalese economy is highly trade -oriented and dependent 
on remittances (around 26% of GDP) …" and 
 
Paragraph 1.1 5, page 1 3 
"Remittances have also contributed to an appreciation of the real exchange rate, which, in turn, has 
affected export compe titiveness a nd increased the trade deficit…"  
 
EU Question N° 5: How does Nepal plan to tackle this challenge?  
 
Paragraph 1.5, page 11  
The Secretariat's report states that "Nepal is a least developed country (LDC), and the Government's 
vision is to graduate  from this status by 2022 and transition to middle income country status by 
2030. To achieve these targets, an economic growth rate of 7 –8% and investment in infrastructure 
of US$13 -18 billion by 2020 is estimated to be required. The 14th Development Plan (2016/17 –
2018/19) targets annual average growth of 7.2% and a reduction in the share of the population 
living in poverty from 21.6% currently to 17% by 2018 -19." 
 WT/TPR/M/381/Add.1  
 
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  EU Question N°  6: Could Nepal please give specific information on the plans to achieve the ta rgets 
identified to become a middle income country? Could Nepal give more information about projects 
related to the infrastructure investment allocation?  
 
Paragraph 1.17, page 14 
The Secretariat's report states that "…The export structure remains heavily concentrated in textiles, 
clothing, and agricultural products which, together, accounted for  74.6% of total exports in 2017…"  
 
EU Question N°  7: What initiatives has Nepal taken and will be taking to diversify its exports?  
 
Paragraph 1.23, page 18  
The Secretariat's report states that "…under the Nepal Trade Integration Strategy (NTIS) 2016, FDI 
is especially encouraged in 19 economic act ivities identified as strategic…"  
 
EU Question N°  8: What is the progress of implementation of the NTIS 2016 so fa r? What 
challenges is the NTIS  still facing?  
 
Paragraph 1.23, page 18  
"Nepal ranks 105th among 190 economies, and is the third most competitive economy in South Asia 
after India and Bhutan, according to the World Bank's Ease of Doing Business 2018 report. It 
improved from 107th in 2011 but is well below the record best of 94th in 2014. According to the 
World Bank, some of the most problematic areas for doing business are dealing with construction 
permits, enforcing contracts, paying taxes, getting electrici ty and starting a business."  and 
 
Paragraph 1.2 4, page 18  
"Nepal's potential for attracting foreign investors and fostering domestic investment remains largely 
untapped. Its FDI inflows averaged US$92 million per year during 2012 -2017, reaching US$198 
million in 2017. FDI inward stock represented 6.9% of GDP in 2017, still among the lowest in the 
region. According to external sources, private investment, local and foreign, has been inhibited by 
several factors, notably government instability, inefficien t government bureaucracy, inadequate 
infrastructure, and restrictive labour regulations. " 
 
EU Question N° 9 : Could Nepal provide information on what practical measures are planned, in 
addition to improving customs procedures, to ensure the implementation o f new legislation such as 
the Foreign Investment Policy (2014) and Industrial Enterprises Act (2016), the Labour Act  (2017), 
and the Special Economic Zone (SEZ)) Authority Act (2016) and the Company Act  (2017) to improve 
the business climate and make Nepal a more attractive FDI destination ? Does Nepal e nvisage new 
legislative changes to face other problematic areas? What specific steps has Nepal been taking to 
liberalize its services market to attract foreign d irect investment (considering the fact that the 
services sector contribut ed to 57,6% of Nepal 's GDP share in 201 7-18)? 
 
2 TRADE AND INVESTMENT REGIMES  
 
Paragraph 2.8, page 21  
The Secretariat's report states that  "The Ministry of Industry, Commerce and Supplies is the principal 
ministry responsible for formulating, implementing and monitoring policies, plans and programmes 
related to international trade, industrial development and investment…It also coordinates "aid for 
trade" initiatives, including the Enhanced Integrated Framework (EIF)…"  and 
 
Paragraph 2. 19, page 25 
"…According to OECD Credit Reporting System (CRS) data, Nepal received US$278.8 million in 2016 
in aid for trade. " 
 
EU Question N° 10 : What actions are Nepal taking to effectively mobilize and achieve full potential 
from A id for Trade? 
 
Paragraph 2.13, page 23  
The Secretariat's report states that "Under the Plan, trade is recognized as an important factor 
towards achieving the objective of long -term inclusive and sustainable growth, which is also 
emphasized in the NTIS 2016. In addition, the Trade Policy 2015 includes outward -looking 
strategies, wh ich emphasize export promotion. The objective of the Trade Policy is to reduce the 
trade deficit by enhancing the supply side capacity, and to enhance access of goods, services and WT/TPR/M/381/Add.1  
 
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  intellectual property to regional and world markets. It also aims to comple ment other policies, 
including the NTIS, and to implement WTO decisions. " 
 
EU Question N° 11: Regarding the reduction of trade deficit as well as the promotion of exports, 
which specific measures are Nepal envisaging implementing, especially in the field of supply side 
capacity?  
 
Paragraph 2.23, page 25  
The Secretariat's report states that "Since 2012, Nepal has made efforts to fulfil its notifications 
obligations to the WTO, …However, there are still outstanding notifications to be notif ied to the 
different committees,… The authorities stated that several notifications are in the final stages of 
preparation before being submitted to the correspo nding bodies of the WTO. " 
 
EU Question N° 12 : Could Nepal give an estimation of the date when the remaining notification 
obligations to the WTO will be fulfilled? What kind of actions and measures are being taken to meet 
the outstanding notification requirements, including some relating to subsidies, domestic supp ort for 
agriculture, services, customs valuation, and import licensing procedures?  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures directly affecting imports  
 
Paragraph 3.8, page 36  
"With a view to enhancing trade facilitation, Nepal has made progress in improving and simplifying 
the custom procedures and harmonizing them with international standards. Efforts have been made 
through Customs Reform and Modernization Strategies and Action Plans (CRMSAPs), which were 
first launched in 2003. Nepal h as finished the implementation of the fourth CRMSAP (2013 -2017), 
and started implementing the fifth in July 2017 …" and 
 
Paragraph 3.12, page 37 
"Other measures being taken by the authorities relating to improving customs procedures include: 
the development  of the Nepal National Single Window (NNSW), which should be implemented by 
2019; the establishment of client service centres in the DOC, with client service desks in six customs 
offices; and the establishment of a trade facilitation committee by the DOC a nd customs offices. " 
 
EU Question N° 13: Regarding the improvement of customs procedures, could Nepal  give 
information about the current status of the Customs Reform and Modernization Strategies and Action 
Plans (CRMSAP) and the Nepal National Single Windo w (NNSW)?  
 
Paragraph 3.1 3, page 37  
"Nepal has notified its category A, B, and C commitments under the TFA to the WTO. According to 
these, two measures are under Category A as implemented, eight measures under Category B are 
to be implemented by December 2020 without capacity -building support, and 26 measures under 
Category C are to be implemented upon receipt of capacity -building support. " 
 
EU Question N° 14: What kind of capacity -building support is there already to  implement  
commitments under Category C ? Could Nepal clarify whether there exists a formal/informal set -up 
for donor coordination in Nepal regarding t his support?  
 
Paragraph 3. 34, page 42 
"While nearly all applied tariffs are lower than bound tariffs, in FY 2018 -19, for 38 tariff lines, the 
applied rate exceeds the bound rates. In addition, for 8 tariff lines, the applied rates exceed the 
rates which were bound for a more general group of p roducts which were subsequently divided into 
more lines. Plus, 12 tariff lines are subject to applied specific duties which could exceed the bound 
ad valorem rates (Table 3.4). The products affected are mainly chemical products, and some 
machinery includin g motor vehicles. According to the authorities, tariffs in excess of bindings were 
the unintended result of regular revisions of tariff rates which may not always have taken changes 
in nomenclature into account, while AVEs for specific duties depend on uni t values of imports, which 
may change."  
 
EU Question N° 15 : Could Nepal p lease advise on actions and measures being taken to address 
the cases where the applied rates exceed the bound rates for 38 tariff lines and 8 subdivided tariff 
lines and the possibility of 12 tariff lines subject to specific duties, which could exceed the  bound ad WT/TPR/M/381/Add.1  
 
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  valorem rates?  In particular, w hen is Nepal planning  to lower the rates applied to chemical products, 
machines and alcoholic drinks below bound rates?  
 
Paragraph 3. 49, page 47 
"According to the authorities, Nepal does not have any anti -dumping, c ountervailing or safeguard 
legislation, and it has notified this to the WTO. In the last Review, it was stated that a bill on anti -
dumping and safeguards was being drafted. According to the authorities, the draft Safeguard, Anti -
dumping and Countervailing Act is still being prepared, and is based on WTO rules, and legislation 
in other countries."  
 
EU Question N° 16 : Could Nepal  provide more specific information about the state of play of the 
bill on anti -dumping and safeguards that is being drafted?  
 
3.2 Measures directly affecting ex ports  
 
Paragraph 3.52, page 47  
"According to the Foreign Exchange Act (1962) and Rules (1963), exports are permitted only against 
advance payment or a letter of credit (L/C). This provision is to ensure that the payment for t he 
goods is received by the exporter in Nepal. Thus, at the time of export, the exporter is required to 
declare that the export earnings will be repatriated to Nepal within six months in the case of 
transactions under L/C. There is no limit on advance paym ent but the buyer must remit the foreign 
exchange through a bank, or exchange the foreign currency with a bank in Nepal. The bank issues 
a certificate of advance payment to the exporter, which needs to be produced at Customs at the 
time of export."  
 
EU Que stion N° 17 : Could Nepal  provide inform ation whether it has plans to increase the methods 
of payment allowed, for example, to provide payment by installments or payment at some time after 
shipment?  
 
3.3 Measures Affecting Production and Trade  
 
Paragraph 3. 85, page 55  
"…One specific trade concern was raised by other Members about Nepal's National Alcohol Regulation 
and Control Policy and graphic warnings and statements for alcoholic beverages. " 
 
EU Question N° 18: Is Nepal considering any changes to the National Alcohol Regulation and Control 
Policy? If so, what measures are being considered and what is the timeframe for their adoption and 
entry into force? If Nepal is considering such changes, could Nepal confirm t hat any measures related 
to alcohol will be made following consultation with  all relevant stakeholders, will be not more trade 
restrictive than necessary, and will avoid arbitrary discrimination among suppliers and among 
different product types, as requir ed by the WTO GATT and TBT agreements?  Furthermore, could 
Nepal clarify if imported alcohol products are and will be allowed to compete equitably and if Nepal 
intends to take more action against smuggling and abuse of duty free allowances, to protect lot 
codes, and to address the dangers and lost revenue of homebrew and the large illicit market?  
 
Paragraph 3.89, page 56  
The Secretariat's report states that  "Under the Agriculture Development Strategy (ADS), the 
authorities intend to prepare a new Food Act, a s well as legislation on the accreditation of standards 
certification bodies and national laboratories for food safety and quality. In addition, under the ADS, 
an independent Food Authority is to be established, while the capacity of the DFTQC, the Departm ent 
of Agriculture, and the Department of Livestock are to be improved, along with improvements in 
inter-departmental coordination."  
 
EU Question N° 19 : Could Nepal p lease advise on the timeline for the development and adoptio n 
of legislation in respect of  food, establish  an independent food authority, and the enhancem ent of 
capacity in SPS agencies?  
Paragraph 3. 126, page 64-65 
The Secretariat's report states that "if a trademark is not used within a year of registration, the 
registration may be cancelled ". 
 
EU Question N° 20 : Could Nepal explain whether prior use is a requirement for trademark 
registration?  WT/TPR/M/381/Add.1  
 
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Paragraph 3. 135, page 66 
The Secretariat's report states that  "although the number of filings and applications has been quite 
low, very few patents were granted in the review period (Table 3.22)."  
 
EU Question N° 21 : How does Nepal explain the very low level of successful patent applications?  
 
Paragraph 3.1 36, page 66  
The Secretariat's report states that  "on enforcement generally the authorities stated that there were 
more than 100 cases regarding the infringement of trademarks per year ".  
 
EU Question N° 22 : While it is stated in paragraph 3.3.7.1 (as regards copyright) that data on the 
number of cases taken to the courts were not available, c ould Nepal  provide information on cases in 
the Copyright Registrar's Office in the Ministry of Culture, Tourism and Civil Aviation with respect to 
the infringement of copyright (per year)?  
 
Paragraph 3.89, page 75  
"Under the Agriculture Development Strategy ( ADS), the authorities intend to prepare a new Food 
Act, as well as legislation on the accreditation of standards certification bodies and national 
laboratories for food safety and quality. In addition, under the ADS, an independent Food Authority 
is to be established, while the capacity of the DFTQC, the Department of Agriculture, and the 
Department of Livestock are to be improved, along with improvements in inter -departmental 
coordination."   
 
EU Question N° 23: Could Nepal  define more clearly the new Food Act in order to know, for 
instance, if Nepal is going to follow the international standards and going to facilitate the process of 
obtaining certificates?  
 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture and Fisheries  
 
Paragra ph 4.26, page 75  
The Secretariat's report states that "The Prime Minister Agriculture Modernization Project (PMAMP) 
is a ten -year project which started in FY 2016 -17. Under the Project, agriculture production is 
classified into different categories depend ing on land area and production. For the first year, there 
were to be:  
• 2,100 small business agricultural production centres (pockets) of 10 ha each;  
• 150 commercial agricultural production centres (blocks) of 100 ha each;  
• 30 zones for agricultural business production and processing centres (zones) of 500 ha each; 
and  
• 7 large commercial agricultural production and academic centres (super zones) of 1,000 ha 
each. Each of the super zones is promoted for a specific product ( paddy, fish, vegetables, 
potatoes, maize, apples, and wheat for the first seven)."  
 
EU Question N° 24 : Could Nepal  provide more information about the measures that will be applied 
to achieve the targets foreseen in the Prime Minister Agriculture Modernizat ion Project?  
 
4.2 Mining and Energy  
 
Paragraph 4. 48, page 79  
"Under the Electricity Regulatory Commission Act, 2074 (2017), the Electricity Regulatory 
Commission (ERC) was established (replacing the Electricity Tariff Fixation Committee) and is in the 
process of formation. It will recommend and advise the Government on policies regarding the 
generation, transmission, distribution or trade of electricity, and tariff fixation. The ERC will have 
the authority to determine generation and consumer tariffs and wh eeling charges, and will also 
regulate  electricity service providers."  
 
EU Question N° 25 : How will the Electricity Regulatory Commission determine consumer tariffs 
and wheeling charges and with which policy objectives?  
 WT/TPR/M/381/Add.1  
 
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  Paragraph 4. 52, page 80  
The Secretariat's report states that "The period 2016 -26 has been declared National Energy Crisis 
Reduction and Electricity Development Decade (Energy Emergency Decade)…"  
 
EU Question N° 26 : Does Nepal have any plans to encourage and facilitate Foreign Dir ect 
Investment in the hydroelectricity a s a way to  ensure both economic and social returns?  
 
Paragraph 4. 54, page 80 
The Secretariat's report states that "…To improve energy efficiency, the Nepal Energy Efficiency 
Programme (NEEP) was launched in 2010. The first phase of the NEEP was completed in June 2014. 
The second phase, which started in July 2014 and is being implemented by the Ministry of Energy, 
Water Resources and Irrigation, introduces market -based energy -efficiency services for the private 
and public sectors;…"  
 
EU Question N° 27 : How do "market -based energy efficiency services"  work in a context of 
regulated prices?  
 
Paragraph 4.56, page 81  
The Se cretariat's report states that "Nepal's largest available renewable energy resource is 
hydropower. While economically viable hydropower capacity stands at 42,000 MW, the current 
installed capacity is 1,075 MW (less than 3% of its proven potential). The slo w progress of 
hydropower development is attributable to inadequate planning and investment in the generation, 
transmission, and distribution capacity; and delays in project development, caused partly by legal 
and regulatory inadequacies. " 
 
EU Question N° 28: Does Nepal have any plans to increase the percentage of investment allowed 
in consultancy services? This would  allow foreign companies to boost investment in energy sectors, 
especially hydropower, where there is a lot of investment potential.  
 
EU Ques tion N° 29 : What kind of legal and regulatory inadequacies are hindering the development 
in energy projects?  
 
Paragraph 4. 63, page 82 
"Nepal aims at ending basic load shedding by 2018, and achieving energy independence by 2019. 
By 2050, Nepal aims to achieve 80% electrification through renewable energy sources having an 
appropriate energy mix, and reduce its dep endency on fossil fuels by 50%." and 
 
Paragraph 4.64, page 82 
"The Electricity Act 2049 (1992) and the Electricity Rules 2050 (1993) govern the  survey, generation, 
transmission and distribution of electricity.  
 
EU Question N° 30 : Could Nepal  provide more information about the project foreseen to achieve 
the target of energy independence by 2019? Could Nepal give more information about the plans for 
the renewable energy policy for the coming years?  Could Nepal  give an  update on their intention s in 
terms of market organisation policy so  that appropriate investment could support Nepal 's long -term 
energy objectives?  
 
4.6 Transport Services  
 
Paragraph 4.63, page 82  
"The Civil Aviation Authority of Nepal Act 2053 (1996) ensures the participation of the private sector 
in the develop ment and operation of airports… The Civil Aviation Authority of Nepal (CAAN), 
responsible for the administration of air transport, has taken some initiatives to allow for PPPs. New 
legislation to promote private sector parti cipation in the development, operation, and managemen t 
of airports is being drafted…"  
 
EU Question N° 31 : When will Nepal apply the new legislation to promote private participation in 
the air transport sector?  
 WT/TPR/M/381/Add.1  
 
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  WT/TPR/G/381 – Government's Report  
 
3 TRADE IN GOODS  
 
Paragraph 3.8, page 11 -12 
The report states that "Ministry of Energy, Water Resources and Irrigation launched a white paper 
in May 2018 with an aim to attain self -sufficiency in electricity through overall development of 
electricity sector, reduce trade deficit through the replacement of other sources of energy by 
electricity, expand internal and external market for electricity, and deliver sustainable, relia ble and 
clean energy to people… The white paper also incorporates 'One Province, One Mega Project' strategy 
with an aim to build a mega hydro or solar project in each of the seven provinces. " 
EU Question N° 32 : Will the "mega projects"  be commissioned and funded by Nepal or do they 
involve domestic or foreign investors?  
 
4 POLICY FOR AN EFFECTIVE TRADE REGIME  
 
Paragraph 5 .7, page 17 
The Report states that " the Intellectual Property Rights Bill is in the process of being drafted ". 
 
EU Question N° 33: Can Nepal provide more information on the envisaged amendments to its 
existing legal framework? When does Nepal intend to conclude the legislative process?  
 
 
  WT/TPR/M/381/Add.1  
 
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  Iceland  
Question(s)  
 
On the occasion of the 11th Ministerial Conference in Buenos Aires last Dec ember more than 120  WTO 
Members and observers launched a joint declaration on women and economic empowerment that 
aims inter alia at sharing best practices and working together at the WTO to remove barriers for 
women 's economic empowerment and increase their participation in trade.   
The report prepared by Nepal for this Trade Policy Review (WT/TPR/G/381)  points out that the 
Government of Nepal has set objectives of achieving high economic growth, balancing and 
strengthening the economy, and making it mor e inclusive and just, in the interest of all Nepali. The 
report also notes special efforts in the IT sector  to enable Small and Medium Enterprises in Nepal, 
especially owned by women and young entrepreneurs, to grow globally.   
Iceland has the following que stions:  
- Could Nepal provide more information on these initiatives and whether or how they give 
particular attention to women, or gender equality considerations?   
- What is the participation of women in the economy in Nepal?    
- Have particular barriers t hat limit women 's participation in trade been identified?   
- Has Nepal implemented any particular measures to encourage women 's participation in trade 
and promote women 's entrepreneurship, or are such measures being developed?  
 
 
  WT/TPR/M/381/Add.1  
 
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  Japan  
Report by the Secretariat (WT/TPR/S/381)  
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
  3.3.7 Intellectual property rights  
    3.3.7.2  Trademarks  
 
(Question 1 Paragraph 3.126, page 64)  
Japan would like to know whether the registration/application of a trademark will be refused or 
canceled, if the trademark is identical or similar to a trademark well -known in the foreign countries 
as indicating goods or services of another person.     
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
  3.3.7 Intellectual property rights  
    3.3.7.5 Enforcement  
 
(Question 2 Paragraph 3,136, page 66)  
We would like to know if effective border measures including the IP registration system at customs 
are in place.  
 
We also would like to know the result of border measures (e.g., the number of infringing goods 
seized by the custom at the border) in the past 3 years.  
 
4. TRADE POLICIES BY SECTOR  
  4.6 Transport Services   
    4.6.3 Tourism  
 
(Question 3 Paragraph 4,142, page 98)  
According to the report by the Secretariat , "no permission is required for the establishment of foreign 
companies or foreign investment in travel agencies, trekking agencies, water rafting, pony trekking, 
horse riding, or tourist lodging. "In the W TO docum ent WT/ACC/NPL/16, however, it is indicated that 
no permission is granted for the establishment of foreign companies or foreign investment in the 
above activities.  
 
Japan would like to confirm:  
(1) Whether the establishment of foreign companies and foreign investment in the tourism 
services are allowed in Nepal? And if so,  
(2) Whether permission is required?  
 
 
Report by the Government /WT/TPR/G/381)  
 
5. POLICY FOR AN EFFECTIVE TRADE REGIME  
  5.4 Int ellectual Property Rights   
 
(Question 4 Paragraph 5.4, page 17)  
According to the report by the Government, Nepal formulated its first National Intellectual Property 
Policy in 2017. What are the prospects for improving the IP system in Nepal based on this p olicy? In 
particular, does Nepal have any plans to introduce a secret design system or expand the duration of 
rights?  
 
(Question 5 Paragraph 5.7, page 17)  
According to the report by the Government, the Government will revise the existing legal framework 
for patents, industrial designs, trademarks, utility models, geographical indications, traditional and 
indigenous knowledge, folklores, traditional knowledge, integrated circuits, plant variety protection, 
trade secrets and biodiversity, based on the Natio nal Intellectual Property Policy 2017. Could you 
provide us with the basic policy and outline of these revisions?  
 
 
  WT/TPR/M/381/Add.1  
 
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  Philippines  
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
III. TRADE IN GOODS  
 
Page 10 (Para 3.3)  
To further boost industrial production, ensure a competitive and investment -friendly environment, 
and simplify administrative procedures, the Government has created industrial estates and Special 
Economic Zones (SEZs). It is carrying out efforts related to  infrastructure development to establish 
at least one industrial zone, and special economic zone in each province in coordination with 
provinces and in partnership with private sectors. There are 10 industrial estates at present and the 
Government intends to add further nine estates. Similarly, while one SEZ is already operational, 
feasibility studies are being carried out to establish further eight SEZs.  Product -specific zones for 
footwear, carpet, leather goods, handicrafts, and readymade garments are al so being planned. The 
Government has plans to set up industrial villages in all local levels. Importantly, it is also planning 
to establish cross -border economic zones.  
 
Question:  
1. To increase trade, any economy requires Special Economic Zones (SEZs). There are 
10 industrial estates in Nepal and out of which, only 1 SEZ is operational. What is the reason why 
only one is operational and what are the next steps in order to attracts more locators in the SEZs?  
 
Page 12 (Para 3.9)  
Nepal's Mineral Policy seek s to sustainably utilize its immense potential in mineral resources and 
contribute to making the economy more competitive, dynamic and prosperous. Government aims to 
collaborate with the private sector in exploring, excavating and processing potential mine rals and 
precious metals. Nepal lies in the centre of the 2,500 km Himalayan belt, which has favourable 
geography for various mines and minerals and hence offers a plethora of unparalleled opportunities 
for investors in the mining and mineral sectors. With  83% of the region being mountainous and hilly 
territory, Nepal is abundant in iron, limestone, talc, red clay, granite, marble, gold, precious and 
semi-precious stones (tourmaline, aquamarine, ruby and sapphire) and other construction minerals.  
 
Question : 
2. Can Nepal elaborate on its commitment to promote mining and the minerals sector? What 
policies and initiatives are in place?  
 
IV. TRADE IN SERVICES  
 
Page 14 (Para 4.7)  
Nepal recogniz es the role of ICT as an enabler and driver of economic growth. Accor dingly, there is 
an emphasis to focus the majority of domestic and foreign investment in the ICT sector. The 
Government aims to improve public service delivery by promoting the use of ICT to modernize areas, 
including public administration, professional ar eas, public and private services, database, statistics, 
financial transactions as well as for biometric information and national identity card.  
 
Question:  
3. The current government of Nepal recognizes the role of ICT in economic development. ICT 
has also been shortlisted as one of the three priority service sectors with the most potential for 
exports. However, the UNCTAD 's e-trade readiness assessment report of Nepal highlight areas that 
needs more improvement in ICT such as mobile network coverage, intern ational internet bandwidth, 
and secured internet services. What are the steps being taken and/or planned in terms of policies 
and measures for the development of ICT in Nepal?  
 
VII. TRADING ARRANGEMENTS  
 
Page 20 (Para 7.1)  
Nepal envisages balanced and responsible international relations that respect various bilateral, 
regional, and multilateral agreements. It believes in maintaining amicable and mutually beneficial 
trade relations with its neighbouring countries, China and I ndia which are its largest trading partners. 
Nepal and India share open borders and have a multi -dimensional friendly relationship in various 
economic spheres, with trade and transit being core elements. India is not only Nepal's largest 
trading partner wi th almost two -thirds of share in Nepal's total trade but also the largest market for WT/TPR/M/381/Add.1  
 
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  Nepali goods consisting of almost 57% of its total export. Total trade volume with India in FY 2016/17 
was NRs 687.52 billion out of which Nepal's exports to India was wor th NRs 41.5 billion whereas 
imports were NRs 646.02 billion. Major products exported to India are coffee, vegetables, 
cardamom, juices & iron and steel whereas major imports are fuel (petroleum, diesel, and kerosene), 
vehicles & cement clinkers, etc. Nepal 's trade deficit with India has been an increasing challenge, a 
fact that is recogni zed by both governments. Therefore, efforts are underway to revise the terms of 
various bilateral co -operations to make bilateral relations more equal and respectful and un dertake 
various reforms to modernize and align trade relations with current requirements of international 
trade.  
 
Question:  
4. Please share the priority countries that Nepal wants to enhance its trade relations with? What 
is Nepal 's policy towards ASEAN? I s Nepal currently looking at forging any agreement with ASEAN 
or with the Philippines? If so kindly specify.  
 
VIII. CONSTRAINTS  
 
Page 21 (Para 8.1)  
Nepal still faces several constraints to economic growth, some of which are being addressed through 
the Gove rnment's sincere efforts while others continue to be challenging for its development. Nepal's 
most serious constraint is its geography. On the one hand, trade and transit costs are higher for 
Nepal as it is a landlocked country. On the other hand, Nepal's difficult terrain due to geophysical 
features of high mountains and hills adds to the costs of developing infrastructure, promoting 
production, and doing business.  
 
Question:  
5. Since Nepal 's most serious constraint is its geography, and trade and transit cost are higher, 
can Nepal specify plans on how to address trade facilitation gaps?  
 
Page 21 (Para 8.3)  
Nepal's trade performance has also been affected by inadequate economic, social, and trade -related 
infrastructure. Challenges included in the areas of r oad infrastructure, vocational and technical 
education and certification mechanisms. Nepal is yet to fully utilize its potential for exporting various 
products by making use of concessional market access provided by many of its trading partners. 
Moreover, Nepal has not been able to take full advantage of incentives provided to LDCs, including 
GSP and DFQF initiatives, mostly because of stringent and complex requirements that needs to be 
fulfilled as an exporting country, and partly due to supply -side constr aints.  
 
Question:  
6. Based on the report, Nepal has not been able to take full advantage of incentives provided to 
LDCs, including GSP and DFQF initiatives because of stringent and complex requirements that needs 
to be fulfilled as an exporting country. W hat are the steps that the current Nepal government is 
taking to overcome these challenges and ways in improving its development status in view of 
entering a middle -income country by 2030?  
 
IX. OPPORTUNITIES AND WAY FORWARD  
 
Page 22 (Para 9.2)  
The Governme nt has presented its vision for Nepal's transformative economic growth and aims to 
create an economy that fosters innovation, trade and investment. To support this vision, going 
forward, Nepal is firm in protecting, strengthening and positively utilizing d emocratic achievements. 
The Government aims to build a country that is free from any type of corruption, and that respects 
human and fundamental rights. To this end, Nepal has vowed to adopt policy of zero tolerance 
against corruption. Nepal is already tak ing measures to break restrictive business practices.  
 
Question:  
7. Nepal has vowed to adopt policy of zero tolerance against corruption. In this case, what are 
the recent measures taken by the government in order to  provide excellent business environment 
for foreign investors?  
 
 
 WT/TPR/M/381/Add.1  
 
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  Saudi Arabia, Kingdom of  
3.3.2  - WT/TPR/S/381  
Standards and other technical requirements  
 
3.78, Page 54  
Draft standards and technical regulations relating to goods and services, except for food and 
pharmaceuticals, are prepared by the NBSM. A working draft is first prepared by a subcommittee of 
one of the NBSM's technical committees. Once approved by the technical committee, the draft is 
circulated, with two months for comments. At the end o f the comment period, the draft is reviewed 
and, if necessary, amended by the relevant technical committee and/or subcommittee. When 
finalized, the draft is sent to the NCS, which is chaired by the Minister for Industry, Commerce and 
Supplies, for approval  and, once approved, it is published as a Nepal Standard and is available from 
the Department of Printing. All committees, including the NCS, include representatives from 
stakeholders including the private sector, consumers, and academia. The NBSM intends to publish 
its work programme on its website. Once approved, the Government may make standards 
mandatory, in which case they are published in the Nepal Gazette.  
 
We would like to refer that there are some simple inquiries about (3.78).  
 
• The amendments in  this item indicate that the ministry may impose the application of 
approved Nepali Standards, and we want to know the procedures in which the standards are to be 
imposed, and are the imposed standards conformed to the international standards? Or is it spe cific 
to the State of Nepal?  
 
  WT/TPR/M/381/Add.1  
 
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  Chinese Taipei  
PART I: REGARDING THE SECRETARIAT REPORT (WT/TPR/S/381)  
 
I. Economic Environment  
1.3.2 Trends and patterns in FDI  
 
Page 18 (Para 1.23)  
According to the World Bank, some of the most problematic areas for doing business are dealing 
with construction permits, enforcing contracts, paying taxes, getting electricity and starting a 
business.  
 
Question(s):  
What measures is Nepal undertaking to simplify the most problematic areas as identified by the 
World Bank regarding dealings with construction permits, enforcing contracts, paying taxes, getting 
electricity and starting a business?  
 
Page 18 (Para 1.24)  
Nepal's potential for attracting foreign investors and fostering domestic investment remains largely 
untapped. (…). According to external sources, private investment, local and foreign, has been 
inhibited by several factors, notably government instability,  inefficient government bureaucracy, 
inadequate infrastructure, and restrictive labour regulations.  
 
Question(s):  
What measures is Nepal undertaking to deal with the various factors like inefficient government 
bureaucracy, inadequate infrastructure and re strictive labour regulations to exploit untapped local 
and foreign investment potential?  
 
II. Trade and Investment Regime  
2.4 Investment Regime  
 
Page 30 (Para 2.38)  
The Foreign Investment and Technology Transfer Act (FITTA), 1992 and the Industrial Enterp rises 
Act, 2016, provide the legal basis for regulating, administering, and facilitating FDI. In addition, 
several other laws also affect FDI, including: the Foreign Investment Policy, 2014; the Company Act, 
2006 (amended in 2017); the Banks and Financial Institutions Act, 2017; the Labour Act, 2017; the 
Special Economic Zone (SEZ) Authority Act, 2016 (and the SEZ Authority Regulation, 2017); and 
the Environment Protection Act, 1997 (and the Environment Protection Rules, 1997).   
 
Question(s):  
Are there min imum amounts of foreign investment in any sector?  
 
Page 31 (Para 2.40)  
The other features of the FITTA include the possibility of technology transfer in all the industrial 
sectors, a guarantee for the repatriation of foreign currencies, business and resid ential visas for 
foreign investors, and provisions for dispute settlement.  
 
Question(s):  
Are foreign investors required to obtain permission from any relevant authority or authorities for 
repatriation of foreign currencies? Please provide further details o n the procedures which the foreign 
investor must follow in order to repatriate foreign currencies and the authority/authorities involved 
in the process.  
 
III. Trade Policies and Practices by Measure  
3.1.1 Customs procedures, valuation, and requirements  
 
Page 34 (Para 3.2, Table 3.1 – Documents required for imports)  
Table 3.1 indicates that documents required as per the prevailing law regarding a recommendation, 
licence, or certificate from any institution are required for imports.  
 WT/TPR/M/381/Add.1  
 
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  Question(s):  
Could Nepal please specify the names of the institutions that issue letters of recommendation, 
licences or certificates as required for imports?    
 
Page 37 (Para 3.16)  
If the transaction value declared by an importer is less than the value determined by t he customs 
officer, the customs officer may: (i) clear the goods by collecting 50% additional customs duty on 
the difference in value; or (ii) purchase the goods by paying an amount equalling the declared 
transaction value, plus 5%.  
 
Question(s):  
Could Nep al please explain the basis for customs officers ' determinations of the values of imported 
goods and whether any guideline for such has been established?    
 
III. Trade Policies and Practices by Measure  
3.3.6 Government procurement  
 
Page 60 (Para 3.107)  
Nepal is neither a party nor an observer to the WTO Government Procurement Agreement.  
 
Question(s):  
Has Nepal considered requesting to become an observer to the WTO GPA?  
 
III. Trade Policies and Practices by Measure  
3.3.7 Intellectual property rights  
 
Page 64 (Para 3.125)  
Ownership of a trademark is conferred upon registration with the Department of Industry, with no 
specific provisions in the Act relating to protection for unregistered trademarks, including well -known 
and famous marks. However, someone who has submitted an application to register a trademark in 
another party to the Paris Convention may claim priority when filing an application for the same 
trademark in Nepal.  
 
Question(s):  
Has Nepal considered providing any sort of protection to well -known trademark owners in addition 
to requesting a right to claim priority when filing applications?  
 
Page 64 (Para 3.126)  
In addition, if a trademark is not used within a year of registration, the registration may be cancelled.  
 
Question(s):  
Could Nepal please elaborate on the mechanism it has set forward to track whether or not any 
registered trademark has been used within the mentioned time frame of one year of registration? 
Other related information and data will also be appreciated.  
 
 
  WT/TPR/M/381/Add.1  
 
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  Thailand  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
2. Trade and Investment Regimes  
2.3.2 Regional and preferential agreements  
Para 2.24 Page  26 
 
Question :  It would be appreciated if Nepal could kindly provide more details on;  
(1) the current status of the Nepali 17 bilateral agreement with the trading partners  
(2) Nepali future plan to initiate FTA negotiations with trading partners.  
 
4. Trade Policies by sector  
4.2 Mining and Energy  
Para 4.48 Page  79 
 
Question :  Regarding the authority of the Electricity Regulatory Commission (ERC), it would be 
appreciated if Nepal could elaborate on "regulating electricity service providers " what is the scope 
of its authority as well as whether it includes granting permission for foreign electricity servic e 
providers? If so, what are the procedures?  
 
4.5 Telecommunications and Postal Services  
Para 4.110 Page 92  
 
Question :  It would be appreciated if Nepal could kindly provide more detailed information on the 
new Telecommunications Act, the advantages and anticipated impacts of this new Act on the 
liberalization of this sector.  
 
4.6 Transport Services  
4.6.1 Road Transport and railways  
Para 4.128 Page  95 
 
Question :  It would be appreciated if Nepal could kindly provide more detailed information on "the 
basis of reciprocity ", procedures, and regulations of such activity.  
 
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
4. TRADE IN SERVICES  
4.1 Tourism  
Para 4.3 Page  14 
 
Question :  Regarding the development related to tourism industry mentioned above, would Nepal 
welcome foreign investment to participate in the development? If so, what are the requirement and 
procedure? Moreover, such development would definitely render projects and bring more tourists 
into the country, which could have impacts on nature and society. In this case, would Nepal have 
any plans or regulations to ensure the balanced, healthy and sustainable developments between 
environmental protection and promoting econom ic growth that might have a negative effect from 
tourism?  
 
Para 9.9 E -Commerce Page  24 
 
Question :  What would be a guideline of Nepal 's ICT infrastr ucture system development and 
e-Payment system in next 10 years in order to create more trade opportunities in  
E-Commerce area?  
 WT/TPR/M/381/Add.1  
 
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  3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.3 Tariffs  
3.1.3.3 Tariff bindings Page  42 
 
Question :  Since there are 38 Tariff lines that have the applied MFN rates exceed the bound rates, 
could  Nepal please clarify more about the reasons that applied MFN rates exceed the bound rates?  
 
4. TRADE POLICIES BY SECTOR  
4.1 Agriculture and Fisheries  
4.1.3 Agriculture policies Page  71 
 
Question :  Nepal has implemented the subsidy namely CISE 2070 which a ims to provide cash 
intensive for exports. Accordingly, does the practice of CISE 2070 conform with the WTO rules?  
 
3.3.7 Intellectual property rights  
Para 3.117 Page  62 
 
Question :  Since there were 605 varieties of 65 crops registered and released in Nepal, Thailand 
has the following questions to ask Nepal:  
1.1 What are the purposes of the variety registration?  
1.2 What kind of crop can be registered in Nepal?  
1.3 Who can apply for the registration?  
2. Thailand would like Nepal to give more details abo ut Intellectual Property Protection in Plants.  
2.1 What kind of new plant variety protection system will be used in Nepal?  
2.2 Can Nepal be UPOV member?  
 
Additional Questions from Thailand  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
2.3.2.1 South Asian Free Trade Area (SAFTA) and South Asian Association for Regional 
Cooperation (SAARC) Agreement on Trade in Services (SATIS)  
Para 2.27 Page  27 
 
Question :  The Parties involved in the Agreement of South Asian Free Trade Area (SAFTA) comprise 
two groups of Developing Countries (India, Pakistan, and Sri -Lanka) and Least Developed Countries 
(LDCs) (Nepal, Bhutan, Bangladesh, Maldives, and Afghanistan). In terms of Market Access (MA), 
LDCs including Nepal have the right to offer the condition of Deviation for limited number of Sensitive 
or Exclusion List of products to each member differently. Therefore, in practice, how could SAFTA 
implement the preferential tari ff differentials on the same product that offer in MA to different 
countries? Also, how to implement the verification of Rule of Origins to confer each country of origin 
status in order to prevent the circumvention from other countries?  
 
PART II: QUESTIONS  REGARDING THE GOVERNMENT REPORT  
 
4.2 Transport  
Para 4.6 Page 14  
 
Question  What is Nepal 's policy on foreign investment and foreign business undertakings in 
freight forwarding services, logistics and transport services, and multimodal transport services?  
Are there any laws, regulations and limitation measures applied to such services? If any, please 
provide a detailed explanation.  
 
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
Para 3.16, Page  37 
 
"3.16 If the transaction value declared by an importer is less than the value determined by the 
customs  officer, the customs officer may: (i) clear the goods by collecting 50% additional customs 
duty on the difference in value; or (ii) purchase the goods by paying an amount equaling the declared WT/TPR/M/381/Add.1  
 
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  transaction value, plus 5% (since May 2018, this option no longer requires the prior approval of the 
Director of the Department of Customs )" 
 
Thailand' s Comments  
 
According to the Agreement on implementation of article VII of the  General  Agreement  on Tariffs  
and Trade  1994 (GATT)  (Customs  Valuation  Agreement:  CVA) Customs  value should be specified by 
in order as follows : 
(1) Transaction Value  
(2) Transaction Value of the Identical Goods  
(3) Transaction Value of the Similar Goods  
(4) Deductive Value  
(5) Computed Value  
(6) Fall Back Method  
 
If the customs officer has a reason to doubt on the value declared by importers and the transaction 
value cannot be determined by the 1st method (Transaction Value), the Customs shall use the 2 to 
6 method respectively. In the case of Nepal, customs officer releases imported goods by collecting 
50% additional customs duty on the difference in value, or purchasing the goods by paying an 
amou nt equaling the declared transaction value, plus 5% are not in accordance with above 
mentioned CVA. The determination of customs valuation above arbitrary or fictitious is contrary to 
the agreement.  
 
However, if the determination of customs value of import ed goods or customs officer has reason to 
doubt on customs value, causing the delay for the determination of such customs value according 
to the Article 13 of CVA, importers shall nevertheless be able to withdraw goods from customs 
custody by providing suf ficient guarantee or deposit, covering the maximum amount of customs 
duties for such imported goods. It is recommended that the legislation of each Member shall make 
provision for such circumstances to comply with the Article 13 of CVA. To this end, Thaila nd would 
like to encourage Nepal to consider making provision of appropriate law according to Article 13 of 
CVA. 
 
 
  WT/TPR/M/381/Add.1  
 
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  United States of America  
Questions based on the Secretariat Report (WT/TPR/S/381)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.1 Customs procedures, valuation, and requirements  
 
Page 37, Paragraph 3.12: Nepal is working to implement the Nepal National Single window by 
2019.  
 
• Which customs procedures and forms will be included in the initial functionality of the Nepal 
National Single Window in 2019?  
 
Page 37, Paragraph 3.13:  Nepal has notified its category A, B, and C commitments under the 
WTO TFA.  
 
• We would be interested in understanding Nepal' s TACB needs, so when will Nepal notify the 
specific capacity -building support needed to implement the 26 measures identified as 
category  C?  
 
Page 37, Paragraph 3.16: Nepal states that "if the transaction value declared by an importer is 
less than the value determined by the customs officer, the customs officer may: (i) clear the goods 
by collecting 50 % additional customs duty on the difference in value; or (ii) purchase the goods by 
paying an amount equaling the declared transaction value, plus 5% (since May 2018, this option no 
longer requires the prior approval of the Director of the Department of Cu stoms). " 
 
• Can Nepal clarify the actions that customs officials may take in a transaction value dispute?  
 
• Is it correct that the customs officer may purchase the goods (from the importer) by paying 
an amount equaling the declared transaction value, plus 5%?  
 
3.3.2.1 Standards and Technical Regulations  
 
Page 54, Paragraph 3.78:  The Secretariat Report describes Nepal 's domestic procedures for 
standards development.    
• Could you please clarify how Nepal prepares its national p lans for standards development?  
 
• Does Nepal publish a work program (as required under subparagraph J of Annex 3 to the 
TBT Agreement) that outlines its current plans?  
 
Page 54, Paragraph 3.78:   The Secretariat Report notes that a draft standard "is circulated, with 
two months for comment s."   
• To whom is the draft document circulated?    
• Do other WTO Members have an opportunity to comment at this point?    
• Does Nepal publish the draft standard for other trading partners to consider?  
 
3.3.5 State trading, state -owned enterprises, and privatiz ation  
 
Page 58, Paragraph 3.103: The Secretariat Report notes that Nepal has not made any notifications 
to the WTO relating to state -trading enterprises.  
 
• Please identify when Nepal will provide a notification on its use of state -trading enterprises.  
 
3.3.6 Government Procurement  
 
Page 60, Paragraph 3.107: The Secretariat Report notes that Nepal is neither a party nor an 
observer to the WTO Government Procurement Agreement. Becoming an observer to the GPA would 
allow Nepal to engage with other countries  on matters relating to government procurement and 
would not require Nepal to take on any obligations.  
 
• Will Nepal consider becoming a GPA observer?  
 WT/TPR/M/381/Add.1  
 
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  Page 61, Paragraph 3.109: The Secretariat Report notes that while discrimination in government 
procureme nt is prohibited, goods manufactured in Nepal should be acquired if the difference in price 
compared to foreign goods is not more than 10%. Additionally, Table 3.17 notes that international 
bidding occurs when the goods or services are not available in Nep al, or no bids were received under 
national bidding, or a donor requires international bidding, or the contract is complex and requires 
international bidding.  
 
• Is the prohibition on discrimination part of the Public Procurement Act 2007?  
 
• If a procurement is using national bidding, does that mean only Nepali suppliers can 
participate in the procurement?  
 
3.3.7 Intellectual Property Rights  
 
Page 63, Table 3.18:  Regarding Table 3.18 and sections 3.3.7.3 -4 in WT/TPR/S/381, we have 
several questions:    
 
• Could the GoN detail under which circumstances a patentee may not enjoy a patent term of 
20 years ?  
 
• Does the GoN have plans to provide for plant variety protection and protection for 
undisclosed test and other data?  
 
• Could the GoN explain its filing and grant d ata for industrial designs and patents?   The 
number of grants appears especially low for patents, compared with the numbers of 
applications filed.    
 
• What is the status of the applications noted to have been filed, but not g ranted or in force 
since 2011?  
 
• Finally, is injunctive relief available in cases when patent infringement has been found by a 
court?  
 
Questions based on the Secretariat Report (WT/TPR/S/381)  
 
5 POLICY FOR AN EFFECTIVE TRADE REGIME  
5.4 Intellectual Property Rights  
 
Page 17, Paragraph 5.7 : The GoN indicates that the IP Rights Bill is in the process of being 
drafted.   We commend the GoN for its efforts to revise and update its industrial property law.  
 
• Could Nepal share a copy of the draft Bill for the purpose of review and comments?  
 
 
  WT/TPR/M/381/Add.1  
 
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  REPLIES PROVIDED BY NEPAL  
Canada  
Question 1:  
Could Nepal provide Members with an update as to which outstanding notifications are in the final 
stage of preparation and for which Committees?  
 
Nepal is fully committed to WTO notification obligations. It is putting its every possible effort to fulfill 
the obligations. As the process is technical and involves multiples agencies, the MoICS is collecting 
necessary data and mobilizing WTO focal points to complete the due notifications.  
 
Question 2:  
Is Nepal considering becoming an observer to the WTO Agreement on Government Procurement?  
 
Procurement system of Nepal has been governed by the Public Procurement Act, 2007 and 
Regulations, 2008 which ensures competition, transparency and predictability. However, N epal is 
examining the impacts of becoming a GPA observer.  
 
Question 3:  
Is the new e -GP system accessible to foreign -based suppliers?  
 
The new e -GP system is accessible to foreign -based suppliers as well. Foreign suppliers should be 
registered in the e -GP system online. Then, they can participate in the e -GP process equally with 
Nepali suppliers or vendors.  
 
Will the new e -GP system provide Nepal with statistical data on public procurement spending, 
numbers of contracts, procurement methods, or the number a nd value of contracts awarded to 
Nepalese and foreign companies?  
 
The new e -GP system provides the related statistical data on public procurement spending, numbers 
of contracts, procurement methods, etc. regarding goods, works and consulting services.  
 
However, details of some sectors such as forest products, minerals, ration, etc. are not shown in the 
e-GP system.  
 
Question 4:  
Could Nepal expand on the relationship, similarities and differences between Trade Policy 2015 and 
NTIS?  
 
The Trade Policy, 2015  is the guiding framework and provides a future course of action for trade 
related areas. On the other NTIS is the primary strategy for the implementation of Trade Policy. 
NTIS supports in achieving the overarching goals and objectives of the Trade Policy.   
 
 
  WT/TPR/M/381/Add.1  
 
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  European Union  
Question 1:  
Could Nepal please advise on the timetable for the finalization and adoption of the Bill on safeguards, 
anti-dumping and countervailing measures?  
 
The draft Bill on Safeguard, Anti -dumping and Countervailing has been drafted in close consultation 
with the concerned ministries and stakeholders. The draft Bill will be submitted to the parliament 
after fulfilling the remaining process.  
 
Question 2:  
Could Nepal please advise on which actions and measures are envisaged to collect and provide data 
on enforcement in respect of such laws relating to intellectual property rights, government 
procurement, and competition policy?  
 
To ensure the enforcement of la ws and institutions, the concerned Government agencies have been 
executing the legal provisions as stipulated in the relevant laws and regulations. The Government 
has accorded high priority to strengthen existing monitoring and reporting mechanism. At the federal 
level, concerned Ministries and relevant government agencies are responsible for collecting and 
providing data on enforcement. In addition, online reporting of progress is also being exercised by 
them.  
 
Question 3:  
Could Nepal please advise on act ions and measures being considered to simplify the corporation tax 
system and the excise duty system?  
 
To simplify the tax system (including corporate tax and excise duty), Nepal is drafting a Unified Tax 
Code integrating different tax related laws. The U nified Tax Code is expected to be simpler, 
transparent and tax payer friendly.  
 
Could Nepal also please advise on what actions and measures are being taken to address the two 
cases (cider and wine) in which the excise duty on domestic products is lower than on imported 
products?  
 
The excise duty of goods imported is same as excise duty of similar goods produced internally. It is 
our understanding that the products under question are our traditional products and not identical to 
imported ones.  
 
Question 4 : 
Could Nepal please advise on the measures contemplated for ensuring the implementation of the 
Competition Promotion and Market Protection Board legislation relating to anti -competitive 
practices?  
 
The Department of Commerce, Supplies and Consumer Protect ion under the Ministry of Industry, 
Commerce and Supplies is responsible for enforcement, monitoring and supervision of the Act. As 
per the Act, any person or enterprise with information relating to restrictions on competition may 
make a complaint to the C ompetition Promotion and Market Protection Board or to a designated 
Market Protection Officer. The Government is also carrying out sensitization and awareness 
programmes. The Department of Commerce, Supplies and Consumer Protection has been carrying 
out en forcement, monitoring, and supervision activities as per the Act.  
 
Question 5:  
How does Nepal plan to tackle this challenge?  
 
Nepal plans to tackle this challenge by enhancing supply side capacity and promoting exports of 
goods and services through trade  diversification, augmenting investment in productive sectors, 
creating FDI friendly environment, enhancing production and productivity in agriculture and 
manufactured sectors, strengthening of services sector including tourism, increasing 
hydroelectricity , upgrading unskilled workers to skilled professionals, and encouraging domestic 
employment creation. One of the major challenges, being a land locked country; Nepal is facing lack 
of access to sea making its export less competitive.  
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  In this context, Trade Policy 2015, NTIS 2016, National IP Policy, 2017, Industrial Enterprises Act, 
2016, etc. have been adopted and draft IP Bill, draft Foreign Investment Bill and draft of Industrial 
Regulation and other relevant policies and laws are b eing prepared.   
 
Question 6:  
Could Nepal please give specific information on the plans to achieve the targets identified to become 
a middle income country?  
 
With the promulgation of the Constitution, 2015 and the completion of election at all three levels : 
federal, provincial and local, Nepal has committed to transfer its economy to make it production - 
focused, employment -generating, self -sufficient, and export -oriented. Various reform initiatives are 
carried out which opens further avenues for achieving s ocio-economic development. Nepal is 
formulating 15th Periodic Plan with long -term vision of "Prosperous Nepal, Happy Nepali".  
 
To this end, Nepal has a strategy to become a middle -income country by 2030 focusing on: 
strengthening of private, co -operative a nd community sector; development of the provincial and 
local economy; provision of quality life -long education and health services; safe and sustainable 
urban and rural settlement planning; commercialization of the agriculture sector through the use of 
advanced technology; creation of equitable employment opportunities; strengthening governance 
system, etc.  
 
Could Nepal give more information about projects related to the infrastructure investment allocation?  
 
For the LDC Graduation of the country and to elevate to middle income country from LDC by 2030, 
Nepal has taken various initiatives in infrastructural development. The 14th development Plan of 
Nepal has prioritized Energy, Transportation, Urban Development, Information and 
Telecommunication as major infrastructure sector. There are 21 major National Pride Projects all of 
which are related to infrastructure.  
 
The finance needs to be invested up to 2020 every year in major infrastructure area, e.g. 
transportation, electricity, ITC, water and sanitation  and irrigation is estimated in the proportion of 
8.2 % -11.8% of the GDP.  
 
In monetary value, the sector's requirement includes transportation USD 3.7-5.5 b illion, electricity 
USD 5.3-7.0 billion, ITC USD 0.4-0.6 billion, water and sanitation USD 0.4-0.5 billion, and irrigation 
USD 1.6-2.3 billion. In aggregate, each year those sectors require USD  13-18 billion. The estimates 
show that Nepal needs for the infrastructure investment 8 -12% of its GDP until 2020.  
 
Question 7:  
What initiatives has Nepal taken and will be taking to diversify its exports?   
 
Over the years, Nepal has taken series of initiatives to promote and diversify the exports so as to 
achieve sustainable and inclusive economic growth, poverty reduction, and improvement in the living 
standard.  Nepal Trade Integration Strategy, (NTIS) 2016 is Nepal 's third generation trade integration 
strategy. NTIS 2016 seeks to address the outstanding trade and competitiveness challenges 
confronted by the country 's export sector.  
 
The Strategy focuses on iden tifying actions to address constraints in a number of cross -cutting areas 
such as institutional capacity building for trade, trade and transport facili tation, sanitary and 
phyto -sanitary measures etc. NTIS 2016 has been formulated in close complementary wi th Trade 
Policy, 2015. The Prime Minister Agriculture Modernization Program is underway to commercialize 
the agriculture sector and increase its productivity. Various production -focused and infrastructure 
related programs are being launched to develop the industrial sector which help to diversify the 
exports.  
 
Question 8:  
What is the progress of implementation of the NTIS 2016 so far? What challenges is the NTIS still 
facing?  
 WT/TPR/M/381/Add.1  
 
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  The achievement and challenges of NTIS are as follows:  
 
Achievements:  
● Mainstreamed trade policies, programmes and activities of line ministries and agencies;  
● Provided a forum to enhance collaboration among Government, private sector, development 
partners, civil society and other stakeholders on trade -related matters;  
● Instrum ent to create awareness among farmers, producers and product associations on priority 
export potential products and services;  
● Support from the Enhanced Integrated Framework (EIF) has been mobilized for value chain 
development of Pashmina, Ginger, and Medic inal and Aromatic Plants (MAPs);  
● Technical and financial support from development partners, including European Union, World 
Bank, Asian Development Bank, GIZ, DANIDA, DFID, and USAID, has been mobilized to focus 
on a number of key actions identified in NT IS 2010 Action Matrix.  
 
Challenges:  
● Coordination among line agencies to ensure effective implementation of the Results -based 
Management and Reporting System.  
● Non-Tariff Measures (NTMs) have been serious bottlenecks for Nepali products to get easy access 
to international markets. Nepal configured regulatory and institutional frameworks.  
● Lack of comprehensive architecture for mobilizing resources to fulfill Sanitary and Phytosanitary 
(SPS) and Technical Barriers to Trade (TBT) requirements ; 
● Insufficient inve stment in modern technologies for processing of priority export potentials;  
● Attracting foreign investment to expand manufacturing base and technology transfer to ensure 
quality products;  
● Most commodities are being exported unprocessed and the quality stand ard of exportable items 
is not satisfactory;  
● High reliance of priority product or low value -added product for the export;  
● Agro processing, packaging, marketing is still at the process of development.  
 
Nepal needs further support in the area of trade -relate d infrastructure, product development and 
trade facilitation.  
 
Question 9:  
Could Nepal provide information on what practical measures are planned, in addition to improving 
customs procedures, to ensure the implementation of new legislation such as the Foreign Investment 
Policy (2014) and Industrial Enterprises Act (2016), the Labour Act (2017), and the Special Economic 
Zone (SEZ)) Authority Act (2016) and the Company Act(2017) to improve the business climate and 
make Nepal a more attractive FDI destinat ion? 
 
MoICS is drafting the Bill on Foreign Investment to implement the Foreign Investment Policy, 2014. 
The draft of regulation of industrial enterprises is at the final phase. For the effective implementation 
of the Labor Act, the regulation of the labor  policy has been passed. To improve the investment 
climate the SEZ Authority Act and Company Act are in the review process. Similarly, the Investment 
Board Act is being changed to make it more relevant and also a central body for all PPP projects.  
 
Trade a nd investment related acts and regulations are in the drafting process. Strengthening of 
regulatory agencies such as Department of Industry and Investment Board Nepal and the 
establishment of One Stop Service are in priority to attract more FDI and to addr ess the problematic 
areas of business climate. We believe that these initiatives are supportive in improving the business 
climate of Nepal.  
 
Does Nepal envisage new legislative changes to face other problematic areas? What specific steps 
has Nepal been tak ing to liberalize its services market to attract foreign direct investment 
(considering the fact that the services sector contributed to 57.6% of Nepal 's GDP share in 20 17-18)? 
 
Nepal has been a most liberalized economy since the 1980s. Since Nepal exceede d into WTO, it has 
been further liberalizing its economy including service sector in compliance with the service 
schedules of Nepal. Apart, the country does carry a nominal number of negative lists, including of 
service sector, in its Foreign Investment an d Technology Transfer Act (FITTA), 1992. Beyond the 
negative list of FITTA, all sectors and subsectors are open to FDI. Furthermore, Nepal has been a 
founder party of SAARC Agreement on Trade in Services (SATIS) which came into effect since 2006.  
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  To attr act more FDI in service sector, following the formation of the present Government with full 
five year mandate Nepal is initiating  new round of  economic reforms through various new efforts 
such as;  drafting Foreign Investment Bill, IPR Bill, Industrial E nterprises Regulation, Investment 
Board of Nepal Bill, Import Export  Management Bill etc.  
 
Question 10:  
What actions is Nepal taking to effectively mobilize and achieve full potential from Aid for Trade?  
 
The Development Cooperation Policy, 2014 provides the framework for mobilization of foreign aid in 
Nepal. The overall donor co -ordination is looked after by the Ministry of Finance. Ministry of Industry, 
Commerce and Supplies (MoICS) coordinates specific Aid for Trade programmes with the mechanism 
of Aid for Trade (donor group meeting). The MoICS is playing an important role to mobilize Aid for 
Trade in the country. The Nepal Transit and Trade Facilitation Committee (NTTFC) and Board of 
Trade under the Ministry of Industry, Commerce and Supplies are respon sible for prioritizing trade 
support projects in Nepal.  
 
Nepal emphasizes Aid for Trade in addressing supply -side capacities (technical and standard related 
issues, human resources, increasing absorptive capacities of government agencies, among others) 
and trade related infrastructure development. In addition, the Government's current focus is on the 
capacity building of domestic institutions and strengthening coordination mechanism among 
stakeholders to realize the full potential of AfT.  
 
Question 11:  
Regarding the reduction of trade deficit as well as the promotion of exports, which specific measures 
are Nepal envisaging implementing, especially in the field of supply side capacity?  
 
There are several initiatives being taken by the Government to mitigate t he supply -side constraints 
mainly to increase export of high value added and competitive products in the world market, develop 
trade related infrastructure, strengthen IP related rights, reduce cost of production through effective 
trade facilitation and re aping the benefits from the multi -lateral trading arrangement, among others. 
Special focus has been given to technical and vocational education evidenced by the Government's 
plans to set up technical schools at all local levels.  
 
Question 12:  
Could Nepal give an estimation of the date when the remaining notification obligations to the WTO 
will be fulfilled? What kind of actions and measures are being taken to meet the outstanding 
notification requirements, including some relating to subsidies, domestic sup port for agriculture, 
services, customs valuation, and import licensing procedures?  
 
Nepal is fully committed to WTO notification obligations. It is putting its every possible effort to fulfill 
the obligations. As the process is technical and involves mult iples agencies, the MoICS is collecting 
necessary data and mobilizing WTO focal points to complete the due notifications.  
 
Question 13:  
Regarding the improvement of customs procedures, could Nepal give information about the current 
status of the Customs R eform and Modernization Strategies and Action Plans (CRMSAP) and the 
Nepal National Single Window (NNSW)?  
 
The Custom Reform and Modernization Strategies and Action Plan (CRMSAP) has been in continuous 
implementation since 2003 which has led to gradual improvement in customs procedures.  
 
Currently 5th CRMSAP (2017 -2021) is in implementation. In this process, Web based ASYCUDA 
WORLD system has been implemented in 20 custom offices, risk based checking system has been 
implemented, Time Release Study in two  custom offices has been conducted, and 4 -year Strategic 
Plan for 10 major Custom Offices has been formulated and brought into implementation. For the 
improvement of physical infrastructure of Custom Points, ICPs and ICDs are being built, while some 
of the m are already in operation.   
 
Nepal National Single Window (NNSW) is in the process of being developed. After the implementation 
of NNSW, the customs procedures and forms will be implemented as per the prevailing customs 
laws. 
 WT/TPR/M/381/Add.1  
 
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  Question 14:  
What kind of c apacity -building support is there already to imple ment commitments under 
Category  C? 
 
Nepal has notified 26 measures under Category C. Nepal requires financial and technical assistance  
for the implementation of Category C related measures. Specific capacit y building programmes are 
expected. The programme for capacity building  is being prepared and we will share the programme 
to development partners at different levels.  
 
Could Nepal clarify whether there exists a formal/informal set -up for donor coordination in Nepal 
regarding this support?  
 
The provision for Aid for Trade has been well -reflected in the Development Cooperation Policy, 2014. 
The overall donor co -ordination is looked after by the Ministry of Finance. MoICS coordinates specific 
Aid for Trade programmes with Aid for Trade mechanism (Donors' Group Meeting). The MoICS is 
playing an important role to mobilize Aid for Trade in the country. The Nepal Transit and Trade 
Facilitation Committee (NTTFC) and Board of Trade under MoICS are respons ible for prioritizing trade 
support project in Nepal.  
 
Question 15:  
Could Nepal provide more specific information about the state of play of the bill on anti -dumping 
and safeguards that is being drafted?  
 
The draft Bill on Safeguard, Anti -dumping and Count ervailing has been drafted in close consultation 
with the concerned ministries and stakeholders. The draft Bill will be submitted to the parliament 
after fulfilling the remaining process.  
 
Question 16:  
Could Nepal please advise on actions and measures being taken to address the cases where the 
applied rates exceed the bound rates for 38 tariff lines and 8 subdivided tariff lines and the possibility 
of 12 tariff lines subject to specific duties, which cou ld exceed the bound ad valorem rates? In 
particular, when is Nepal planning to lower the rates applied to chemical products, machines and 
alcoholic drinks below bound rates?  
 
Nepal is fully committed to the multi -lateral trading arrangement, and abides by  its rules. Although 
Nepal is a Least Developed Country, during its accession negotiation, it has already committed to 
binding over 99 % of its tariff line.  
 
At times, there might be a possibility of exceeding Bound Rates due to intermittent changes in the  
transactional value of goods that are subject to Specific Duty. However, the Government of Nepal is 
making every possible effort to not let the Bound Rates exceed by determining the real transaction 
value of such goods. The Government of Nepal is fully aw are of and will further examine the situation.  
 
Question 17:  
Could Nepal provide information whether it has plans to increase the methods of payment allowed, 
for example, to provide payment by installments or payment at some time after shipment?  
 
In additi on to the advance payment method, Cash Against Document payment method can be used 
while exporting goods. To further facilitate payment during export, Nepal Rastra Bank publishes 
notifications and directives regarding the use of appropriate methods of paym ent when deemed 
necessary.  
 
Question 18:  
Is Nepal considering any changes to the National Alcohol Regulation and Control Policy? If so, what 
measures are being considered and what is the timeframe for their adoption and entry into force? If 
Nepal is consi dering such changes, could Nepal confirm that any measures related to alcohol will be 
made following consultation with  all relevant stakeholders, will be not more trade restrictive than 
necessary, and will avoid arbitrary discrimination among suppliers an d among different product 
types, as required by the WTO GATT and TBT agreements?  
 
Nepal aims at regulating liquor market in view of maintaining public health especially of children as 
it is elsewhere in the world. So far, the market is under - regulated, hence, sales and distribution is WT/TPR/M/381/Add.1  
 
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  rampant. Because of this state, children are vulner able to alcoholic drinks from early age and have 
created social tension. To address this issue, the Government of Nepal is working on a relevant 
policy that will regulate alcohol distribution in the market.  
 
Furthermore, could Nepal clarify if imported alc ohol products are and will be allowed to compete 
equitably and if Nepal intends to take more action against smuggling and abuse of duty free 
allowances, to protect lot codes, and to address the dangers and lost revenue of homebrew and the 
large illicit mar ket? 
 
Nepal is fully committed to the WTO GATT and TBT Agreements and any changes will comply 
accordingly. Its policy does not discriminate alcoholic products on the basis of origin.  
 
Question 19:  
Could Nepal please advise on the timeline for the developm ent and adoption of legislation in respect 
of food, establish an independent food authority, and the enhancement of capacity in SPS agencies?  
 
The draft Bill on Food Safety and Standards is being prepared and is in consultation with the 
concerned ministrie s and stakeholders. Once finalized, and approved by the Cabinet, the draft Bill 
will proceed to the parliamentary process.  
 
The Government of Nepal has prioritized capacity enhancement of SPS agencies and has accordingly 
been providing necessary trainings  to the personnel, upgrading infrastructure including laboratories, 
strengthening institutional capacity and providing other necessary support.  
 
Question 20:  
Could Nepal explain whether prior use is a requirement for trademark registration?  
 
There is no specific requirement of prior use.  
 
Question 21:  
How does Nepal explain the very low level of successful patent applications?  
 
As Nepal is in the early phase of industrial development and innovation, registration of patent and 
design has been  very low in numbers. The number of foreign application itself has not been 
encouraging. In order to strengthen IPR, the National IP Policy, 2017 is expected to encourage 
registration of new patents. In the same spirit, a draft IPR Bill is in progress.  
 
Question 22:  
While it is stated in paragraph 3.3.7.1 (as regards copyright) that data on the number of cases taken 
to the courts were not available, could Nepal provide information on cases in the Copyright 
Registrar's Office in the Ministry of Culture, To urism and Civil Aviation with respect to the 
infringement of copyright (per year)?  
 
The Government of Nepal is fully committed to minimize infringement of copyrights. There were only 
six cases of copyright infringement in the Fiscal Year 2017/18 and the Go vernment aims to reduce 
this number.  
 
Question 23:  
Could Nepal define more clearly the new Food Act in order to know, for instance, if Nepal is going to 
follow the international standards and going to facilitate the process of obtaining certificates?  
The draft Bill on Food Safety and Standards is being drafted following the Codex Principles of National 
Food Control System.  
Question 24:  
Could Nepal provide more information about the measures that will be applied to achieve the targets 
foreseen in the Prim e Minister Agriculture Modernization Project?  
 
To achieve the targets foreseen in the Prime Minister Agriculture Modernization Project (PMAMP), 
the Government is undertaking a number of measures. PMAMP has classified the agriculture 
production sector into specialized areas such as pockets, blocks, zones and super zones. PMAMP 
provides free technical services and agricultural experts for specialized agricultural production. In 
addition, there are funds for agriculture infrastructure. For the effective implem entation, a Project WT/TPR/M/381/Add.1  
 
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  Direction Committee chaired by the Hon. Minister of Agriculture and Livestock Development directs 
the Project Implementation Committee which is led by the Secretary. The Rt. Hon. Prime Minister 
periodically reviews the progress of the P roject and provides guidance accordingly.  
 
Question 25:  
How will the Electricity Regulatory Commission determine consumer tariffs and wheeling charges 
and with which policy objectives?  
 
Consumer price is determined based on operation cost of electrical system and production facilities, 
depreciation, payment of principal and interest, maintenance cost, return on equity by investor, 
power purchase agreement, change in consumer price index, royalty rate and policy adopted by the 
Government for the developme nt of the power sector. Apart from this, ERC may prepare guideline 
for fixing consumer tariff. Main policy objectives in energy sector are to increase production of 
electricity by attracting domestic and foreign investors as well as to raise per capita dom estic 
consumption of electricity.  
 
Wheeling charges is determined based on the capacity of user and distance, point of connection, 
transmission zone and investment in construction and expansion of transmission line apart from the 
factors mentioned for the determination of consumer tariff.  
Question 26:  
Does Nepal have any plans to encourage and facilitate Foreign Direct Investment in the 
hydroelectricity as a way to ensure both economic and social returns?  
 
Existing policy encourages Foreign Direct Investmen t in the hydropower sector. In fact, Nepal 
already has a significant international presence in the sector in hydropower projects, including, 
Statkraft (Norway), GMR (India), SJVN Limited (India), SINOHYDRO (China), among others, that 
are doing projects of up to 900 MW. Investment Board Nepal is a dedicated institution for facilitating 
hydropower projects larger than 500 MW. These provisions are helpful in ensuring economic and 
social returns through the creation of employment and other positive spillover ef fects, especially in 
rural areas.  
 
Question 27:  
How do "market -based energy efficiency services" work in a context of regulated prices?  
 
Electricity Regulatory Commission (ERC) will regulate electricity provider by fixing electricity 
distribution fee if an y institution distribute electricity to consumer by using distribution system of 
other license holder. ERC will make competition in rate of electricity price so that consumer may 
choose suitable service provider. When formation of ERC is complete it may de velop necessary 
directives to grant permission to foreign electricity provider.  
 
Question 28:  
Does Nepal have any plans to increase the percentage of investment allowed in consultancy services? 
This would allow foreign companies to boost investment in ener gy sectors, especially hydropower, 
where there is a lot of investment potential.  
 
Nepal understands that the increase in the percentage of investment allowed in consultancy service 
scan boost the investment potential of the sector. We are examining the im pact of further opening 
up the service sectors, including the percentage of investment allowed in consultancy services, while 
drafting the Bill on Foreign Investment.  
 
Question 29:  
What kind of legal and regulatory inadequacies are hindering the development in energy projects?  
 
In the past, there were inadequacies such as inappropriate distribution of cost and benefits among 
the projects that are developed in a single river basin, provisions regarding the land ceiling, land 
compensation, private a nd forest land acquisition. However, the situation has been gradually 
resolved with the introduction of new legal and regulatory instruments as well as the change into a 
federal governance structure.  
 
Question 30:  
Could Nepal provide more information about the project foreseen to achieve the target of energy 
independence by 2019?  WT/TPR/M/381/Add.1  
 
- 31 - 
 
   
To achieve the target of energy independence by 2019, the Government of Nepal has expected the 
completion of various energy projects by then. Some of them are: Upper Tamakoshi HPP (456 MW), 
RasuwaGadi (111 MW), Upper Trishuli3A (60 MW), Sanjen (42.50 MW), Upper Sanjen (14.80 MW), 
Kulekhani III (14 MW), Solar Project – Nuwakot (25 MW), etc.  
 
Could Nepal give more information about the plans  for the renewable energy policy for the coming 
years?  
 
Challenge fund will be established by federal government to install solar system having capacity 
between 100 KW to 500 KW in each Local Level Government. Federal Government will contribute 
50% of the fund. to develop renewal energy by provincial and  local governments, appropriate 
guideline, regulation, directives will be developed by the federal government. Institutional 
arrangement will be placed in the system for maximum utilization and benefit shar ing of renewal 
energy between federal, provincial and local governments.  
 
Could Nepal give an update on their intentions in terms of market organisation policy so that 
appropriate investment could support Nepal 's long -term energy objectives?  
 
Necessary policy, legal and structural arrangements will be made for the implementation of rights 
related to energy in federal, provincial and local level. Per capita electricity consumption will be 
increased to 700 unit (kilowatt hour) within 5 years and 1 ,500 unit  within 10 years by gradually 
changing the current Energy Consumption Pattern and expanding the sectors that consume 
electricity.  The policy of mixed energy system will be adopted for energy security. As per the master 
plan for electricity transmission, ph ase wise development of domestic and cross -border transmission 
lines will be done. East -West high voltage transmission line of 400kV and mid -hill and river basin 
corridor transmission line of same voltage will be constructed. Initiation will be taken to es tablish 
the reach surplus energy in the neighboring market. For this, SAARC Framework Agreement, BBIN, 
BIMSTEC and other bilateral and multilateral electricity trade agreement as well as the concept of 
energy banking will be implemented. Second cross -borde r transmission line -- Butwal -Gorakhpur 
400kV Transmission Line will be constructed within 4 years and const ruction of Lamki -Bareli, 
Duhabi -Purniya and Kohalpur -Lakhnau  400 Kv transmission line will be initiated. Within 5 years 
construction of Nepal -China cross-border transmission line -- Galchhi -Rasuwagadhi -Kerung 400kV 
Transmission Line will be completed. In development of transmission lines, policy and mechanism  to 
develop such lines under Built and Transfer modality will be introduced. Considering the t arget to 
increase the share of electric vehicles up to 50 percent of the total import within 5 years, policy and 
infrastructure will be developed to encourage use of electric vehicle for private and public transport. 
Regional energy market will be promoted  by signing power trade agreement with China and 
Bangladesh. Hedging fund will be established to minimize the foreign exchange risk while signing 
power purchase agreement.   
 
Question 31:  
When will Nepal apply the new legislation to promote private partici pation in the air transport sector?  
 
The private sector has been participating in the air transport sector, both in domestic and 
international air service. The draft Bill aims to enhance participation of the private sector. The draft 
Bill is being prepare d and is in consultation with the concerned ministries and stakeholders. Once 
finalized, and approved by the Cabinet, the draft Bill will proceed to the parliamentary process.  
 
Question 32:  
Will the "mega projects" be commissioned and funded by Nepal or do  they involve domestic or 
foreign investors?  
 
Mega projects will be commissioned and funded by domestic as well as foreign investment using 
various models of private sector involvement.  
 
Question 33:  
Can Nepal provide more information on the envisaged amen dments to its existing legal framework? 
When does Nepal intend to conclude the legislative process?  
 
The proposed IP draft Bill is in initial phase. However, the draft Bill is expected to be in line with the 
provision of TRIPS and WIPO's Conventions.  WT/TPR/M/381/Add.1  
 
- 32 - 
 
  Iceland  
Question 1:  
Could Nepal provide more information on these initiatives and whether or how they give particular 
attention to women, or gender equality considerations?  
 
The Constitution of Nepal ensures women rights as fundamental rights. The assuran ce of minimum 
33% representation of women at all level of state machineries is a major breakthrough. The 
Constitution also provides for the right to equality which prohibits discrimination against women on 
any ground.  
 
Question 2:  
What is the participation of women in the economy in Nepal?  
 
The Government of Nepal aims to attain an inclusive GDP growth in which women shall have greater 
participation and share in the benefits. Accordingly, sectoral policies and plans have been designed.  
 
Questi on 3:  
Have particular barriers that limit women 's participation in trade been identified?  
 
Since the Constitution has attached very high priority to women's participation in the economy, their 
share in the economy is growing over the years.  
 
Question 4:  
Has Nepal implemented any particular measures to encourage women's participation in trade and 
promote women 's entrepreneurship, or are such measures being developed?  
 
Concerning women and trade, the Government believes that women play a vital role in trad e and 
economic development. There are special programmes that focus on women's access to finance for 
enterprise development and trade.  
 
 
  WT/TPR/M/381/Add.1  
 
- 33 - 
 
  Japan  
Question 1:  
Japan would like to know whether the registration/application of a trademark will be refused or 
cancelled, if the trademark is identical or similar to a trademark well -known in the foreign countries 
as indicating goods or services of another person?  
 
If the trademark is identical or similar to a trademark well -known in the foreign countries, there is 
a legal provision to take appropriate action against such trademark. Additionally, there is a provision 
in Article 18 of Patent, Design and Trademark Act,  1965: in case if the applied trademark hurts the 
prestige of any individual or institution or the reputation of the trademark of any other person, or in 
case such trademark is found to have already been registered in the name of another person, the 
Depart ment of Industry refuses to register such mark.  
 
Question 2:  
We would like to know if effective border measures including the IP registration system at customs 
are in place.  
 
We also would like to know the result of border measures (e.g., the number of i nfringing goods 
seized by the custom at the border) in the past 3 years.  Among other border measures, IP 
registration system is operational at customs offices in Nepal. As per Article 68 of Customs Act 2007, 
If the trademark is found to be identical or sim ilar to the existing goods, the goods are seized. 
Regarding the data on seized goods by the customs at the border, we are in the process of collecting 
such data.  
 
Question 3:  
Japan would like to confirm:  
Whether the establishment of foreign companies and f oreign investment in the tourism services are 
allowed in Nepal?  
 
Establishment of Foreign Companies and foreign investments are allowed in sectors except included 
in the Annex of FITTA 1992.  
 
And if so, whether permission is required?  
 
Question 4:  
What a re the prospects for improving the IP system in Nepal based on this policy? In particular, does 
Nepal have any plans to introduce a secret design system or expand the duration of rights?  
 
National IP Policy, 2017 envisions the protection of IP rights, suc h as Utility Models, Geographical 
Indications, Collective Marks, Certification Marks, Layout designs of Integrated Circuits, Undisclosed 
Information and Trade Secrets. Likewise, it also envisions the protection of well -known marks under 
specified grounds, passing off provisions and the protection, promotion and development of all 
rights. To better enforce IPR in Nepal, a new IP Bill is being drafted.  
 
Question 5:  
Could you provide us with the basic policy and outline of the revisions in National IP policy ?  
 
As Nepal is a party to Paris Convention, Berne Convention, Stockholm Act and WTO -TRIPs, to meet 
the international obligation created by such instruments, and in order to make the IP regime better, 
the IP Policy, 2017 is in implementation.  
 
The IP policy aims to create a balanced IP system in Nepal with a vision of building a creative nation 
through protection and promotion of IP. The policy sets out following objectives: (i) encourage 
protection, promotion and development of IP; (ii) develop a balanced IP system; (iii) create 
awareness on the social, economic and cultural aspects of IP; (iv) encourage the commercialization 
of IP; (v) strengthen the legal, administrative and human resources to ensure protection and 
enforcement of IP .   
 
 
  WT/TPR/M/381/Add.1  
 
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  Philippines  
Question 1 : 
To increase trade, any economy requires Special Economic Zones (SEZs). There are 10 industrial 
estates in Nepal and out of which, only 1 SEZ is operational. What is the reason why only one is 
operational and what are the nex t steps in order to attract more locators in the SEZs?  
 
Government of Nepal (GoN) has adopted the concept of Special Economic Zone (SEZ) to attract 
foreign and national investors. It will contribute mainly for production of industrial goods and export 
prom otion. Government of Nepal has also allocated adequate budget for the establishment and 
development of SEZs. The act of SEZ is in the process of revision to further simplify the operation 
of the SEZ.  
 
Currently, feasibility studies are being carried out t o establish further eight SEZs to attract more 
locators. Government of Nepal has also taking initiatives to establish additional SEZs by proposing 
measures to create investment friendly environment and facilitating private sector role in 
development and op eration of SEZs.  
 
Question 2:   
Can Nepal elaborate on its commitment to promote mining and the minerals sector? What policies 
and initiatives are in place?  
 
Government of Nepal is committed to promote mining and the minerals sector and has provisioned 
legal and institutional mechanism. Some of the legislative provisions governing the mineral and 
mining sectors are as follows:  
 1. Nepal Petroleum Act,  1983  
 2. Mines and Minerals Act,  1985 
 3. Forest Act,  1993 
 4. Environment Protection Act,  1997  
 5. Mines  and Minerals Rules,  1999  
 6. Petroleum Exploration Regulation,  1984 
 
Government of Nepal has also provisioned to encourage Foreign Direct Investment (FDI) in mining 
and the minerals sector through one stop services and incentive in income tax. Likewise, the National 
Minerals policy, 2017 is in place to deal with mining and the minerals sector in Nepal with major 
provision such as fair and equal treatment, guarantee of 'no nationalization' and incentive and 
provision of subsidy.  
 
Question 3:  
The current G overnment of Nepal recognizes the role of ICT in economic development. ICT has also 
been shortlisted as one of the three priority service sectors with the most potential for exports. 
However, the UNCTAD 's e-trade readiness assessment report of Nepal highli ght areas that needs 
more improvement in ICT such as mobile network coverage, international internet bandwidth, and 
secured internet services. What are the steps being taken and/or planned in terms of policies and 
measures for th e development of ICT in Nep al?  
 
The Government has decided to formulate the e -commerce strategy of Nepal. The drafting of the 
strategy is in progress with the consultation of major stakeholder and private sector. The strategy 
will broadly cover the issues such as legal framework, I CT infrastructure, promotion and 
development of IT, e -payment system, and capacity development of relevant stakeholder. Some of 
the ICT related issues will be addressed by the Digital Nepal Framework, 2018, which is being 
formulated.  
 
Question 4:  
Please s hare the priority countries that Nepal wants to enhance its trade relations with? What is 
Nepal 's policy towards ASEAN? Is Nepal currently looking at forging any agreement with ASEAN or 
with the Philippines? If so kindly specify.  
 
Nepal has firm commitment  on multilateral trading system and regional integration for enhanced 
trade between the countries. Nepal appreciates concern raised by the Philippines. Nepal is open to 
consider any proposal from the countries and regional organization interested to forge agreement 
related to trade.  WT/TPR/M/381/Add.1  
 
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Question 5:  
Since Nepal 's most serious constraint is its geography and trade and transit cost are higher, can 
Nepal specify plans on how to address trade facilitation gaps?  
 
As a landlocked developing country (LLDC), geographical constraints have significantly contributed 
to Nepal's under performance in trade, depriving Nepal from its rightful share in the global trading 
system. The Vienna Program of Action would be instrument al in addressing this fundamental problem 
with a focus particularly on trade and transit facilitation, once implemented effectively. Similarly, it 
is very pertinent to intensify the implementation of the TFA agreement to address trade facilitation 
gaps.  
 
Question  6: 
Based on the report, Nepal has not been able to take full advantage of incentives provided to LDCs, 
including GSP and DFQF initiatives because of stringent and complex requirements that needs to be 
fulfilled as an exporting country. What are th e steps that the current Nepal government is taking to 
overcome these challenges and ways in improving its development status in view of entering a 
middle -income country by 2030?  
 
Nepal is initiating various measures to take full advantage from the scheme such as GSP and DFQF. 
The government is implementing trade policy 2015 and Nepal Trade Integration Strategy, 2016 to 
enhance the export capacity, focusing on export potential goods and services.  
 
It is important to carry out further reforms for increased investment -friendly climate. Nepal needs 
to focus its efforts on reducing cost of doing business, especially by improving its trade and industrial 
infrastructure. Moreover, there is also a need to accelerate the process of legal reforms particularly 
in the  area of trade and investment. Realizing the risks of alarming trade deficit, Government aims 
to enhance exports capacity through various measure including supply side capacity enhancement 
and import management.  
 
Question 7:  
Nepal has vowed to adopt policy  of zero tolerance against corruption. In this case, what are the 
recent measures taken by the government in order to provide excellent business environment for 
foreign investors?  
 
The major legal and institutional provisions taken by the government in ord er to provide excellent 
business environment for foreign investors are as follows:  
1. Legal Provisions:  
• A separate act is in place to deal with foreign investment in Nepal i.e. FITTA, 1992 with 
major provisions as follows:  
o fair and equitable treatment  
o guarantee of 'no nationalization'  
o incentives -- fiscal (tax holidays/concession) and non -fiscal (grants, loans)  
o reinvestment and extension of industry under FDI  
o provision of Business Visa  
o foreign exchange and repatriation facilities  
o resolution of investment disputes  
• Government of Nepal is revising the existing foreign investment act to make it more 
foreign investors friendly,  
• Government of Nepal is organizing Nepal investment Summit on 29 -30 March, 2019.  
• Drafting of an umbrella act for Intellectual Property Rights has been initiated.  
2. Institutional Provisions:  
• Ministry of Industry, Commerce and Supplies (MOICS) and its departments are actively 
working in the process of attracting and facilitating the investment.  
• One Stop Service Ce nter to provide integrated services to foreign investors.  
• Investment Board of Nepal (IBN) is in place to coordinate the mega projects.  
 
 
  WT/TPR/M/381/Add.1  
 
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  Saudi Arabia, Kingdom of  
Question 1:  
We would like to refer that there are simple inquiries about (3.78)  
 
The amendments in this section indicate that the ministry may impose the application of approved 
Nepali Standards, and we want to know the procedures in which the standards are to be imposed, 
and are the imposed standards conformed to the international standar ds? Or is it specific to the 
State of Nepal?  
 
The formulation of national standards are based on ISO, IEC, CODEX, EN, BIS, ASTM, SARSO and 
other recognized national and international standards and some are specific to Nepal.  
 
All the standards should be approved by Nepal Council for Standards (NCS). The Government holds 
several consultation meetings with various concerned stakeholders during the process of formulating 
technical regulations. A timeframe of 60 days is given for c omment and feedback on the draft 
regulations.  
 
Question 2:  
How do you plan to prevent such large fluctuation in the GDP growth that may occur in future? As 
mentioned, a big part of this fluctuation is from the earthquake. In this matter, is there any 
emergency plan in place to face any natural catastrophe that may hit the country and the economy?  
 
Nepal has adopted the following priorities for sustained growth:  
 
• Promotion of sectors that can create jobs and employment opportunities for all citizens;  
• Accelerated human development through the development of the social sector, including 
health and education;  
• Use of capital, technology and research in sectors, such as agriculture, water resources and 
tourism;  
• Development of basic and modern physical infrast ructure, such as roads, railways, irrigation, 
electricity and urban facilities; reconstruction of structures damaged by earthquakes and 
floods;  
• Enhancement in quality of public service delivery, and good governance.  
 
We believe that through these dedicated efforts, we would be able to achieve sustainable growth in 
a sustainable way.  
 
The Government has adopted Disaster Risk Reduction and Management Act, 2017, National Disaster 
Risk Reduction Policy, 2018 and National Disaster Risk -Reduction Strateg ic Action Plan, 2018 -2030 
which have given special focus on disaster management cycle. The measures include: mitigation, 
preparedness, rescue and recovery with policies, programmes and activities such as community 
awareness, capacity building, and particip atory planning for simulation exercises on earthquake, 
among others.  The rescue team is well trained and ready to rescue and respond. Nepal 's policy 
regime on disaster management is directed towards achieving objectives, priorities and targets of 
the Send ai Framework on Disaster Risk Reduction (SFDRR: 2015 -2030).  
 
With robust policy measures and their implementation, the Growth has now picked up after 2016 
catching up over 6 percent despite the devastating earthquake of 2015.   
 
Question 3:  
What is expec ted impact of changing the tax structure in the coming years comparing to the previous 
tax mechanism?  
 
The Government of Nepal is drafting a Unified Tax Code by integrating different tax related laws. 
The proposed Code will help improve and simplify the procedures of tax system. The Government 
has taken initiatives to widen the tax base and increase the com pliance through simplified 
procedures and automated tax system.   
 
Question 4:  
What are you doing so far to meet your inflation target as per your 14th plan?  
 WT/TPR/M/381/Add.1  
 
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  Maintaining price stability is one of the major objectives of Nepal Rastra  Bank (NRB). NRB applies a 
range of monitory policy instruments to contain inflation at or below the targeted level. The policy 
strategies utilized by NRB are as follows:  
(i) Manage money supply and private sector credit at a level that is compatible with 
inflation and growth target of national Periodic Plan.  
(ii) Design monetary policy depending on the situation and prospect of business cycle.  
(iii) Reallocate financial resources to productive sectors and regulate consumer credit using 
following measures:  
  (a) Use open market operations to manage liquidity and stabilize interest rates.  
(b) Provide refinancing facilities (export refinance, refinance against good loans).  
  (c) Use capital measure (differential risk weights).  
(d) Enhance financial literacy to  enable people use financial resources in the 
productive sector.  
 
Question 5:  
How do you evaluate the IMF statement about the currency peg?   
 
The currency of Nepal is pegged with India since 1965. Five times the peg rate has been reviewed 
during the period of 1965 to 1993. Since 1993 the rate has been constant.  
 
The IMF has applauded the current exchange rate arrangement of Nepal. Given the high trade 
concentration with India, the pegged arrangement has served well the economy. As Nepal is 
diversifying its trade in recent years, a preliminary research on the impact of the single -pegged 
system on its international trade is being conducted.  
 
Question 6:  
How is the engagement of the private sector (insurance firms) with the government in solvi ng the 
housing crisis after the earthquake?  
 
To address the housing reconstruction needs and rebuild a more resilient housing system, the 
Government of Nepal has been coordinating the housing reconstruction mission by involving 
development partners and th e private sector. To ensure it in a well -coordinated manner, Nepal 
Reconstruction Authority (NRA), a new and high powered sunset authority led by Rt. Hon. Prime 
Minister himself is placed in the system. As part of Government's financial support, Rs. 300,00 0 has 
been provided to every affected household.  
  
The above housing reconstruction mission also serves as a coordinating framework to standardize 
housing reconstruction policy, irrespective of the funding sources. A Multi -donor Trust Fund was set 
up to co ordinate and harmonize the resources and to ensure reconstruction works in a transparent 
and accountable way. The private sector and individuals, including Non Resident Nepali (NRN), are 
also working under the framework. It is noteworthy to mention that in surance market is still 
evolving, however, quiet fast growing in the country.  
 
Question 7:  
How big is the damage for the housing sector?  
 
According to the Post Disaster Needs Assessment (PDNA) Report, one of the most affected areas 
was the social sector that endured 58 % of the total loss. Of the damage in the social sector, housing 
alone accounted 86 %. The largest single needs for recovery identified in PDNA was the housing and 
human settlements as 755,000 houses were reported damaged. The loss accounted USD 3.27 billion, 
almost a half of the Nepal' s total reconstruction needs.  
 
Question 8:  
How do you balance exchange rate and trade/export policies?  
 
Nepal's trade with India accounts on more than 60% of total trade for a long period. To remain 
resilient in international trade from exchange volatility, Nepali currency is pegged with Indian 
currency. The pegged rate with INR has been reviewed five times so far to balance exchange rate 
and maintain the stable trade policies. In the meantime, looking at the p ositive side of the pegged 
system IMF has appreciated the current exchange system of Nepal. Nonetheless, this matter is under 
examination.  
 WT/TPR/M/381/Add.1  
 
- 38 - 
 
  Question 9:  
(i) How do these restriction measures affect your position on the trade agreements with other 
countries?  
 
Nepal is one of the most liberal economies in South Asia. The provision placed in the policies and 
laws are not only in conformity with the commitment of  Nepal to WTO, but also beyond. By its 
virtues, those provisions never have been restrictive measures.  In the meantime, Nepal has signed 
a number of agreements with other countries, including Bilateral Investment Promotion and 
Protection Agreement (BIPPA)  with six countries and Double Tax Avoidance Agreement (DTAA) with 
ten countries. Also Nepal has become a member of RTAs such as SAFTA and BIMSTEC. In none of 
them, the said policies acted as restrictive measure.  
To highlight some of the provisions, Nepal grants equal treatment to foreign and domestic investors, 
allowing 100 % foreign investment, except for a negative list of 21 industries. The negative list 
includes industries sensitive to national security. The negative list only encompasses a limited area  
and has been placed to protect traditional knowledge and ensure livelihoods of vulnerable population. 
The negative list mainly covers the protection of public morals, human health and necessary security 
concerns as per the GATT Article XX.  
 
(ii) Is there  any plan to liberalize these industries in near future?   
 
Being a member of WTO, Nepal is always committed to stand for a progressive liberalization of 
trade in goods and services.  
 
Question 10:  
What kind of efforts the authority making to remove these b arriers for the foreign investors? Which 
factors from the above you think is more important for investors?  
 
Nepal has been pursuing a liberal foreign investment policy and creating an investment -friendly 
environment. The Government has taken various polic y initiatives. Together with institutional and 
procedural reforms to welcome FDI, Nepal has created dedicated institutions such as Investment 
Board Nepal for mega investments, Special Economic Zones for export -oriented industries and 
one-stop service cente rs to facilitate the FDI. To ease investment, Investment Promotion Board is 
created under the chairmanship of the Minister for Industry, Commerce and Supplies.  
 
The investment climate in Nepal is continuously getting better due to political stability, impr oved 
governance, and smooth supply of power, IT -skilled people, and improved industrial relations. All 
above stated factor are equally important, however, political stability is the most vital factor in 
pulling investment, Nepal observes.  
 
 
  WT/TPR/M/381/Add.1  
 
- 39 - 
 
  Chinese Taip ei 
Question 1:  
What measures is Nepal undertaking to simplify the most problematic areas as identified by the 
World Bank regarding dealings with construction permits, enforcing contracts, paying taxes, getting 
electricity and starting a business?  
 
The investment climate in Nepal is continuously getting better due to political stability, improved 
governance, smooth supply of power, availability of IT -skilled people, and improved industrial 
relations over last some years. Thus, there are improvements in c onstruction permits, enforcing 
contracts, paying taxes, power supply and commencing start -ups. 
 
Question 2:  
What measures is Nepal undertaking to deal with the various factors like inefficient government 
bureaucracy, inadequate infrastructure and restricti ve labour regulations to exploit untapped local 
and foreign investment potential?  
 
The information on "inefficient government bureaucracy" referred by the Secretariat Report, Page 
18 (Para 1.24) is not factually correct. The situation of bureaucratic effic iency of Nepal is considered 
better among the developing countries. However, The reform in the bureaucracy is a continuous 
process.  
 
The major initiative to address the problems in bureaucracy, automation & infrastructure, labour 
regulation and investment are included, but not limited to, drafting of the Bill of Federal Civil Service, 
various programs for administrative reform, capacity building and training for civil servants. 
Likewise, the country is focusing on increased fund for infrastructure developme nt, priority for trade 
related infrastructure, adoption of new labour regulations, drafting of the Bill for Foreign Investment, 
initiation for the establishment of One Stop Service to further facilitate investment and many more 
policy reforms.  
 
Question 3 : 
Are there minimum amounts of foreign investment in any sector?  
 
NPR 5 million is required as a minimum amount for the foreign investment in each sector.  
 
Question 4:  
Are foreign investors required to obtain permission from any relevant authority or authorities for 
repatriation of foreign currencies? Please provide further details on the procedures which the foreign 
investor must follow in order to repatriate foreign cu rrencies and the authority/authorities involved 
in the process.  
 
Repatriation of foreign investment is guaranteed by the law. Foreign investors are required to obtain 
permission from the concerned regulatory agencies such as the Department of Industry or 
Investment Board Nepal to repatriate their investment and the return thereof. Then, they should 
submit application for repatriation at the Nepal Rastra Bank where they need to submit documents 
specified in the Guideline on Foreign Direct Investment: Capital , Debenture, Interest and Dividend 
(available at: https://nrb.org.np/fxm/fxmindex.php ) 
 
Question 5:  
Could Nepal please specify the names of the institutions that issue letters of recommendation, 
licences or certificates as required for imports?  
 
Importers do not require a licen ce, except for items that are restricted or have quantitative 
restrictions (QR), such as products injurious to health. In these cases, recommendation is required 
from relevant author ities: for example, Ministry of Home Affairs in the case of arms, ammunitions 
and explosives.  
 
Question 6:  
Could Nepal please explain the basis for customs officers' determinations of the values of imported 
goods and whether any guideline for such has been established?  
 WT/TPR/M/381/Add.1  
 
- 40 - 
 
  The basis for customs officers ' determinations of the values of imported goods is the provisions of 
GATT Article VII which has been fully incorporated by the Customs Act, 2007.  
 
Question 7:  
Has Nepal considered requesting to become an ob server to the WTO GPA?  
 
Procurement system of Nepal has been governed by the Public Procurement Act, 2007 and 
Regulations, 2008 which ensures competition, tr ansparency and predictability. Nepal is examining 
the implications of becoming a GPA observer.  
 
Question 8:  
Has Nepal considered providing any sort of protection to well -known trademark owners in addition 
to requesting a right to claim priority when filing applications?  
 
Nepal provides the privilege of priority as per the provisions o f Paris Convention and WTO -TRIPS . 
The draft Bill of new legislation in line with the international practice is under discussion.  
 
Question 9:  
Could Nepal please elaborate on the mechanism it has set forward to track whether or not  any 
registered trademark has been used within the mentioned time frame of one year of registration? 
Other related information and data will also be appreciated.  
 
There is a provision to cancel the registered trademarks, if it is not used within one year o f 
registration. If any complain on non -use of trademark is received, the Department of Industry 
investigates and readdress such complains.  
 
 
  WT/TPR/M/381/Add.1  
 
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  Thailand  
Question 1:  
It would be appreciated if Nepal could kindly provide details on:  
The current status  of the Nepali 17 bilateral agreement with the trading partners  
 
Nepal has signed the following bilateral trade agreements: Bangla desh (signed in 1976); 
Bulgaria  (1980); China (1981); Czechoslovakia (1992); Democratic People's Republic of Korea 
(1970); Egy pt (1975); India (2009); Mongolia (1992); Pakistan (1982); Poland (1992); Republic of 
Korea (1971); Romania (1984); Sri Lanka (1979); United Kingdom (1965); United States (1947); 
USSR (1970); and Yugoslavia (1965).  
 
Most of the agreements were signed to receive the MFN treatment when Nepal was not a member 
of the GATT/ WTO. Some of the agreements have been terminated or are no longer in effect.  
 
Nepali future plan to initiate FTA negotiations with trading partners.  
 
To diversify trade, Nepal expects the initiation of the FTA negotiations process with its trading 
partners in the near future.  
 
Question 2:  
Regarding the authority of the Electricity Regulatory Commission (ERC), it would be appreciated if 
Nepal could elabo rate on "regulating electricity service providers " what is the scope of its authority 
as well as whether it includes granting permission for foreign electricity service providers? If so, 
what are the procedures?  
 
Electricity Regulatory Commission (ERC) has  the authority to provide technical management for the 
regulation of production, transmission, distribution and trade of power; fix electricity tariffs and 
regulate the buying and selling of power; ensure competition and protection of consumer rights; 
enhance institutional capacity; provide policy feedback; carry out monitoring and evaluation; and, 
carry out dispute resolution.  
 
The ERC shall regulate electricity providers by fixing electricity distribution fee for institutions that 
distribute electricity by using dis tribution system of other licenc e holders. ERC will make competition 
in rate of electricity price so that consumer may choose suitable service provider. Once the ERC 
formation is complete, it may develop necessary directives to grant permission  to foreign electricity 
providers.  
 
Question 3:  
It would be appreciated if Nepal could kindly provide more detailed information on the new 
Telecommunications Act, the advantages and anticipated impacts of this new Act on the liberalization 
of this sector.  
 
A proposed draft Bill is underway of development and approval and it will come into effect in the 
context of new technological changes.  
 
Question 4:  
It would be appreciated if Nepal could kindly provide more detailed information on "the basis of 
reciprocity ", procedures, and regulations of such activity.  
 
To supply necessary goods for Nepal such as food products, industrial raw materials, fuel, 
commercial goods, etc., truck, lorry, tractor -trailer, tankers, gas bullets, multi -axel trucks, etc. hav e 
been entering in a temporary import basis by paying due charges which is set by the Fiscal Act.  
 
So far, there has been no bilateral agreement of Nepal with its neighboring countries India and China 
for the movement (entry) of motor vehicles on the basis  of reciprocity. Similarly, according to the 
'Agreement Between the Government of the Republic of India and the Government of Nepal for the 
regulation of passenger traffic between the two countries (Nepal -India Motor Vehicle Agreement, 
2014)',  only regular  passenger bus are being operated based on a reciprocal basis agreement in the 
following routes to the given locations.  
 WT/TPR/M/381/Add.1  
 
- 42 - 
 
  S.N. Routes (Remarks)  
1 Kathmandu -Bhairahawa -Sunauli -Gorakhpur -Lucknow -Delhi (Under operation)  
2 Kathmandu -Bhairahawa -Sunauli -Ajamgad -Banaras  (Under operation)  
3 Pokhara -Bhairahawa -Sunauli -Gorakhpur -Lucknow -Delhi (Under operation)  
4 Kathmandu -Patna -Bodhgaya (Under operation)  
5 Mahendranagar -Delhi (Under operation)  
6 Janakpur -Patna (Under operation)  
7 Nepalgunj -Rupadiya -Delhi (Under operat ion) 
8 Mahendranagar -Dehradhun  (Under operation)  
9 Silgudhi -Kakadbhitta -Kathmandu (Under preparation to begin operation)  
10 Nepalgunj -Rupadiya -Bareli -Moradabad -Haridwar (Under preparation to begin operation)  
11 Nepalgunj -Rupadiya -Lucknow  (Under preparation to begin operation)  
12 Singudhi -Kakadbhitta -Kathmandu  (Under preparation to begin operation)  
13 Janakpur -Jaleshwar -Bhittamod -Sursand -Sitamadhi -Mujaffarpur - (Under preparation to begin 
operation)  
 
Phase -wise discussions and negotiations are ongoing for a framework agreement on the operation 
of motor vehicles under Bangladesh Bhutan Indian Nepal (BBIN) and Bay of Bengal Initiative for 
Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).  
 
Question 5:  
Regarding the development relat ed to tourism industry mentioned above, would Nepal welcome 
foreign investment to participate in the development? If so, what are the requirement and 
procedure?  
 
Nepal welcomes foreign investment in every sector of economic activities except for very few s ectors 
specified in the Annex of the Foreign Investment and Technology Transfer Act, 1992. Foreign 
investors are allowed to hold 100 % ownership in most cases.  
 
Moreover, such development would definitely render  projects and bring more tourists into the 
Country, which could have impacts on nature and society. In this case, would Nepal have any plans 
or regulations to ensure the balanced, healthy and sustainable developments between environmental 
protection and pr omoting economic growth that might have a negative effect from tourism?  
 
After receiving permission for opening new industry from the Department of Tourism, the investor 
applies to the Department of Industry (DoI) for further registration approval. The DoI  provides 
foreign investment approval to projects below NPR 2 billion. Otherwise, it forwards the proposal to 
Industrial Investment Promotion Board chaired by the Minister of Industry, Commerce and Supplies 
for approval to projects with investment above NP R 2 billion. For larger projects, investors can 
directly apply to the Investment Board, Nepal for investment facilitation.  
 
There are several policy provisions that focus on tourism promotion and sustainable environment 
management. Some of them are:  
 
- The Constitution of Nepal has provisioned for a policy arrangement that focuses on the 
development of environment -friendly tourism industry.  
- According to the Tourism Policy, 2009, during the development and construction of 
tourism infrastructure, sustainab le use of resources should be ensured.  
- There is a legal provision to conduct Environmental Impact Assessment while 
constructing any infrastructure, including tourism -related.  
 - The Government has arranged special tax incentives for environmental protect ion. 
 
Question 6:  
What would be a guideline of Nepal 's ICT infrastructure system development and e -Payment system 
in next 10 years in order to create more trade opportunities in E -Commerce area?  
 
The Government of Nepal has initiated the preparation of E -commerce strategy which is expected 
to cover issues related to ICT infrastructure system development and e -Payment system.   
 
Question 7:  
Since there are 38 Tariff lines that have the applied MFN rates exceed the bound rates, could Nepal 
please clarify more about the reasons that applied MFN rates exceed the bound rates?  WT/TPR/M/381/Add.1  
 
- 43 - 
 
   
Nepal is fully committed to the multi -lateral trading system, and abides by its rules. Although Nepal 
is a Least Developed Count ry, during the accession negotiation, it has already committed to binding 
over 99% of its tariff line.  
 
At times, there might be a possibility of exceeding Bound Rates due to intermittent changes in the 
transactional value of goods that are subject to Spe cific Duty. However, the Government of Nepal is 
making every possible effort to not let the Bound Rates exceed by determining the real transaction 
value of such goods. The Government of Nepal is fully aware and will further examine the situation.  
 
Question  8: 
Nepal has implemented the subsidy namely CISE 2070 which aims to provide cash incentive for 
exports. Accordingly, does the practice of CISE 2070 conform with the WTO rules?  
 
The growing and continued mismatch between import and export has resulted in a n alarming level 
of trade deficit in Nepal. While the export -import ratio was 1:3.5 in 2004/05, while it was 1:6.7 in 
2011/12. This has grown to 1:15.3 in the year 2017/18. Given the nominal amount under CISE and 
the low utilization rate, it does not have significant impact.  
 
The Article 9 of The Agreement on Agriculture (AoA) has provisioned minimum support "de minimis" 
which sets a ceiling of 10 percentage of the agriculture production (Agro GDP) for developing 
countries. As per this provision, Nepal cou ld have supported up to 83 billion NRS as minimum support 
for agriculture sector in 2016/17 based on the agro GDP calculation of the year. Yet, the country 
has been providing its support to agriculture sector far below than the mandated level and under -
utilized.  
 
Question 9:  
Since there were 605 varieties of 65 crops registered and released in Nepal, Thailand has the 
following questions to ask Nepal:  
 
What are the purposes of the variety registration?  
 
The purpose is to document the source, country, date, and other details as well as assess the impact 
of the plant varieties. The registration is done for varieties having extra ordinary traits / characters 
than existing varieties in Nepal and preferred by Nepali farmers in specific domain based on 
two season performance trial data.   
What kind of crop can be registered in Nepal?  
 
Hybrid, open -pollinated and improved varieties which are more competent in terms of productivity, 
suitability, pest and stress re sistant and having market demand.  
 
Who can apply for the registration?  
 
Registration can be applied by Nepali firms/companies/institutions and multi -national company in 
joint venture with Nepali party.  
 
Thailand would like Nepal to give more details about Intellectual Property Protection in Plants.  
 
What kind of new plant variety protection system will be used in Nepal?  
 
The draft Bill related to Protection of Plant Varieties and Farmers' Right is underw ay. The focus is on 
sui generis system on proposed draft Bill regarding Plant Variety Protection System.  
 
Can Nepal be UPOV member?  
 
Nepal is not yet a UPOV member and has not taken any initiation regarding its membership.  
 
Question 10:  
In practice, how co uld SAFTA implement the preferential tariff differentials on the same product that 
offer in MA to different countries?  
 WT/TPR/M/381/Add.1  
 
- 44 - 
 
  Under the trade in goods negotiations, each Contracting Party has submitted their individual tariff 
schedules. Therefore, the market acc ess has been offered as per the agreed tariff schedules 
submitted to the Secretariat.    
 
Also, how to implement the verification of Rule of Origins to confer each country of origin status in 
order to prevent the circumvention from other countries?  
 
Specif ic Rules of Origin is in place to determine the origin of goods under the SAFTA framework. The 
Rules of Origin prevents the possibility of circumventions. For this purpose, each contracting party 
has designated an official to authenticate the process.  
 
 
  WT/TPR/M/381/Add.1  
 
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  United States of America  
Question 1:  
Which customs procedures and forms will be included in the initial functionality of the Nepal National 
Single Window?  
 
After the implementation of Nepal National Single Window, the customs procedures and forms will 
be implemented as per the prevailing customs laws.  
 
Question 2:  
We would be in terested in understanding Nepal' s TACB needs, so when will Nepal notify the specific 
capacity -building support needed to implement the 26 measures identified as  Category C?  
 
Nepal has notified 26 measures under Category C wherein Nepal is in need of financial and technical 
assistances for their implementation. The programme for capacity building is being developed as 
outlined in the notified Category C and we will share the pr oposed programme to the US Government 
in due course of time. We would like to recall here that this matter was also discussed in the Fourth 
TIFA Council Meeting between Nepal and the USA held in Washington D.C. on 13th November 2018.   
 
Question 3:  
Can Ne pal clarify the actions that customs officials may take in a transaction value dispute?  
 
Customs Act, 2007 has fully incorporated the provisions of GATT Article VII. As per the Act, if the 
Customs Officer deems that the declared transaction value is lower than the actual value, the 
Customs Officer can purchase such product. If the importer is not satisfied with the decisions of the 
Customs Officer, he/she may appeal the case.   
 
Is it correct that the customs officer may purchase the goods (from the importe r) by paying an 
amount equaling the declared transaction value, plus 5%?  
 
Yes, the Customs Officer may purchase the goods from importers, if the officer deems that the 
declared value is lower than the actual transaction value. However, this is rare in prac tices.  
 
Question 4:  
Does Nepal intend to notify the annual questionnaire to the committee again as per Article 7.3 of 
the Agreement on Import Licensing Procedures?  
 
Nepal is preparing the notification to be submitted to the WTO as per the Article 7.3 of th e Agreement 
on Import Licensing Procedures.  
 
Question 5:  
Could you please clarify how Nepal prepares its national plans for standards development?  
 
National plans for standards development is based on the priority of the country. Different 
stakeholders, including regulators, consumers, manufacturers, and traders can place requests or 
proposals for development of standards. In response NBSM prioritizes  such requests or proposals 
on the basis of national requirements.  
 
Does Nepal publish a work program (as required under subparagraph J of Annex 3 to the TBT 
Agreement) that outlines its current plans?  
 
Nepal is under the process of formulating National Standardization Strategy. Work program for 
standards development has been published and is available on the website of NBSM 
(www.nbsm.gov.np ). 
 
Question 6:  
To whom is the draft document circulated?  
 
Draft standards a re circulated/ published on the website of NBSM by making them open for public 
comments.  
 
Do other WTO Members have an opportunity to comment at this point?  WT/TPR/M/381/Add.1  
 
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Any interested WTO members can provide their feedback.  
 
Does Nepal publish the draft standard for other trading partners to consider?  
 
Any interested trading partners may provide their feedback.  
 
Question 7:  
Please identify when Nepal will provide a notification on its use of state -trading enterprises.  
 
Nepal is fully committed to the multi -lateral trading arrangement, and abides by its rules. Nepal fully 
acknowledges the importance of notification as a fundamental pillar of transparency principle of the 
WTO. Nepal is collecting necessary information to prepare notification on the use of state tradin g 
enterprises. We will notify it soon to the WTO.  
 
Question 8:  
Will Nepal consider becoming a GPA observer?  
 
Procurement system of Nepal is governed by the Public Procurement Act, 2007 and Regulations, 
2008 which ensures competition, transparency and predictability. Nepal is examining potential 
implication of becoming a GPA observer.  
 
Question 9:  
Is the prohibition on discrimination part of the Public Procurement Act 2007?  
 
Public Procurement Act, 2007 (as amended), and the Public Procurement Regulatio ns, 2007, apply 
to all procurements by all public bodies, including federal, provincial and local government bodies, 
and state -owned enterprises. The Public Procurement Act 2007 does not discriminate the suppliers.  
 
The Act aims to ensuring transparency a nd good governance in public procurement, developing 
policy, monitoring implementation of the law, developing and issuing standard bidding documents, 
issuing manuals, directives, instructions and technical notes, soliciting the views of stakeholders on 
the procurement system, and coordinating public procurement. Furthermore, amendments to the 
Public Procurement Act are intended to simplify procedures, and e -bidding is now compulsory for 
contracts of NPR 6 million and above.  
 
If procurement is using nationa l bidding, does that mean only Nepali suppliers can participate in the 
procurement?  
 
It is not a requirement to be a Nepali supplier.  
 
Question 10:  
Could the GoN detail under which circumstances a patentee may not enjoy a patent term of 
20 years?  
 
As per the prevailing Patent Design and Trademark Act (PDTA), 1965, a patentee may enjoy 
altogether 21 years. As per the same provision, the patent right is granted 1st time for 7 years. The 
registered patent should be renewed after 7 years from the date of termi nation. It can again be 
2nd time renewed for another 7 years. If the patent is not renewed, the patent is cancelled.  
 
Does the GoN have plans to provide for plant variety protection and protection for undisclosed test 
and other data?  
 
The Seed Act has pro vision of sui generis protection system to protect the new varieties of plants. 
The Government has envisaged enacting legal provisions for the protection of undisclosed 
information and trade secrets in line with National IP Policy 2017.  
 
Could the GoN expl ain its filing and grant data for industrial designs and patents? The number of 
grants appears especially low for patents, compared with the numbers of applications filed.  
 
The application and registration of domestic patent and design is very low in numbers due to various 
factors, including low investment in the field of R&D as well as inadequate technical capacity with WT/TPR/M/381/Add.1  
 
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  concerned authorities. Yet, the number of foreign appli cation is growing over the last some years 
and Government of Nepal is enhancing the technical and institutional capacity.  
 
What is the status of the applications noted to have been filed, but not granted or in force since 
2011?  
 
A small number of applicant s have been granted patent, mostly due to inadequate human resources 
capacity necessary to examine the applications.  The new draft Bill of IP will encourage the situation 
of application and registration of patent.  
 
Finally, is injunctive relief available  in cases when patent infringement has been found by a court?  
 
Injunctive relief is available in case patent infringement is found by a court.  
 
Question 11:  
Could Nepal share a copy of the draft Bill of IP Act for the purpose of review and comments?  
 
Since  the proposed IP draft Bill is in preliminary stage, we will circulate the draft for everyone's 
feedback by uploading in the official website.  
  WT/TPR/M/381/Add.1  
 
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  FOLLOW -UP QUESTIONS BY THE EUROPEAN UNIO N AND REPLIES PROVID ED BY NEPAL  
European Union  
3 TRADE POLICIES AND PRA CTICES BY MEASURE  
 
EU initial question No 18 :  
 
i. Is Nepal considering any changes to the National Alcohol Regulation and Control Policy? If so, what 
measures are being considered and what is the timeframe for their adoption and entry into force? If 
Nepal  is considering such changes, could Nepal confirm that any measures related to alcohol will be 
made following consultation with  all relevant stakeholders, will be not more trade restrictive than 
necessary, and will avoid arbitrary discrimination among sup pliers and among different product 
types, as required by the WTO GATT and TBT agreements?  
 
ii. Furthermore, could Nepal clarify if imported alcohol products are and will be allowed to compete 
equitably and if Nepal intends to take more action against smuggling and abuse of duty free 
allowances, to protect lot codes, and to address the dangers and lost revenue of homebrew and the 
large illicit market?  
 
Answer:   
i. Nepal aims at regulating liquor market in view of maintaining public health especially of children 
as it is elsewhere in the world. So far, the market is under - regulated, hence, sales and distribution 
is rampant. Because of this state, children are vuln erable to alcoholic drinks from early age and have 
created social tension. To address this issue, the Government of Nepal is working on a relevant 
policy that will regulate alcohol distribution in the market.  
 
ii. Nepal is fully committed to the WTO GATT and TBT Agreements and any changes will comply 
accordingly. Its policy does not discriminate alcoholic products on the basis of origin.  
 
EU follow -up questions :  
1. Nepal replies that the market is under regulated . Could Nepal please clarify how the market  is 
"under regulated"  in more specific terms and what further regulation is needed for sales and 
distribution? To which products does this concern on "under regulation"  apply?  
 
2. Nepal 's response states that: "the Government of Nepal is working on a rele vant policy that will 
regulate alcohol distribution in the market ". Could Nepal please clarify where that policy can be 
found and how stakeholders can express their views?  
 
3. Could Nepal also clarify whether there is any draft legislation being prepared and how the 
Government proposes to consult relevant stakeholders on any draft legislation or other policy 
measures considered under this policy review?  
 
4. Does the Government of Nepal agree that children require protection both from domestic and 
imported alcohol products? In that context, could Nepal please clarify whether there is or will be any 
difference in requirements applicable to these two categories of products (domestic/imported) on 
the basis of origin? For instance, could Nepal please clarify if there is or will be any difference in the 
labelling requirements?  
 
Nepal  
Question 1:  
Nepal replies that the market is under regulated. Could Nepal please clarify how the market is "under 
regulated " in more specific terms and what further regulation is needed for sales and distribution? 
To which products does this concern on "under regulation " apply?  
 
Nepal aims at regulating liquor market in view of maintaining public health especially of children a s 
it is elsewhere in the world. So far, the market is under -regulated, hence, sales and distribution is 
rampant. Because of this state, children are vulnerable to alcoholic drinks from early age and have 
created social tension. To address this issue, the G overnment of Nepal is working on a relevant 
policy that will regulate alcohol distribution in the market.  
 WT/TPR/M/381/Add.1  
 
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  Question 2:  
Nepal 's response states that: "the Government of Nepal is working on a relevant policy that will 
regulate alcohol distribution in the mar ket". Could Nepal please clarify where that policy can be 
found and how stakeh olders can express their views?  
 
Question 3:   
Could Nepal also clarify whether there is any draft legislation being prepared and how the 
Government proposes to consult relevant s takeholders on any draft legislation or other policy 
measures consi dered under this policy review?  
 
Question 4:  
Does the Government of Nepal agree that children require protection both from domestic and 
imported alcohol products? In that context, could Nepal please clarify whether there is or will be any 
difference in requirements applicable to these two categories of products (domestic/imported) on 
the basis of origin? For instance, could Nepal please clarify if there is or will be any differenc e in the 
labeling requirements?  
 
 
__________