WT/L/1119  
 
22 October 2021  
(21-8016) Page: 1/4 
General Council  
22-23 November 2021  Original: English  
 
 
TRADE PREFERENCES FOR NEPAL  
REPORT OF THE GOVERNMENT OF THE UNITED STATES  
UNDER THE DECISION OF 7 DECEMBER  20161 
The following communication, dated 19 October  2021, is being circulated at the request of the 
Delegation of the United States.  
 
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1  INTRODUCTION  
1.1.  On 7 December  2016, the United States was granted a waiver from its obligations under 
paragraph 1 of Article I of the GATT  1994 to the extent necessary to permit the United  States 
Government to provide preferential treatment for eligible imports into the United States from Nepal. 
This waiver expires  31 December  2025.  
1.2.  Under the terms of this waiver, the United States is required to submit to the General Council 
an annual report on the implementation of the trade -related provisions of the programme with a 
view to facilitating the annual review provided for in paragraph 4 of Article IX of the Agreement 
establishing the WTO.2 This report covers cale ndar year 2020, the most recent year for which 
full-year data is available, and data for the first seven months of 2021.  
2  DUTY FREE TREATMENT UNDER THE PREFERENCES FOR NEPAL  
2.1.  Section 915 of the Trade Facilitation and Trade Enforcement Act of 2015 ("the Act") provides 
for non -reciprocal preferential trade benefits through  31 December  2025 for certain US imports from 
Nepal that meet specific eligibility criteria. These  preferences are provided to assist Nepal in its 
recovery from a devastating earthquake a nd aftershocks in April  2015. Since 1976, the United States 
has granted tariff preferences to developing countries,  including Nepal, under the Generalized 
System of Preferences (GSP) program. Section 915 of the  Act expands these tariff preferences to 
make an additional 77 eight -digit tariff lines eligible for  duty-free treatment if the President 
determines that certain eligibility requirements are met. The trade preferences were implemented 
on 15  December  2016.  
2.2.  Section 915(e) of the Act requires the Preside nt to monitor, review, and report to Congress on 
the compliance of Nepal with the eligibility requirements in subsection (b)(1). Under 
section  915(b)(2) of the Act, the President may withdraw, suspend, or limit  preferential treatment 
to Nepal if Nepal does  not meet the eligibility criteria.  
2.3.  Trade preferences for Nepal build on an existing framework of programs intended to assist 
Nepal's  economic development. In particular, the United States and Nepal signed a Trade and 
Investment  Framework Agreement (TIFA),  which entered into force in April  2011. The main 
 
1 WT/L/1001.  
2 Marrakesh Agreement Establishing the World Trade Organization (WTO), consulted at: 
https://www.wto.org/english/docs_e/legal_e/04 -wto_e.htm .  WT/L/1119  
 
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  objectives of the TIFA are to expand trade,  investment, and technical cooperation, and to strengthen 
economic relations between the parties.  
3  PERFORMANCE  
3.1.  The US implemented trade preferences for Nepal on 15  December  2016. In 2020, total 
US imports from Nepal were $86  million, and total US exports to Nepal were $94  million, mostly 
concentrated in oil seeds; grains, fodder and animal feed as well as surgical instruments, machinery 
and mechanical appliances; edi ble vegetables and edible fruit and nuts.3 Between January 2020 and 
July 2021, US imports under the Nepal preferences were approximately $4.4  million.  
3.2.  The three largest categories of goods entering the United States under the preference program 
were hats and headgear, of wool, knitted or crocheted fabric; travel, sports, and similar bags; 
carpets; as well as shawls, scarves, mufflers, mantillas, veils and the like. The following table 
includes data on US  imports under Nepal preference provisions for 2020 a nd the first seven months 
of 2021.  
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3 Consulted at: https://dataweb.usitc.gov .  WT/L/1119  
 
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  TABLE 1  
LEADING US  IMPORTS FOR CONSUMPTION UNDER NEPAL PREFERENCE PROVISIONS,  
2020 AND 2021 YTD (THROUGH JULY)  
HTS 
number  Description  2020 2021 YTD 
(through July)  
  Value (1,000 dollars)  
6505.00.30  Hats and headgear, of wool, knitted or crocheted or made up from 
knitted or crocheted fabric  480.6  31.6 
4202.92.15  Travel, sports and similar bags with outer surface of cotton, not of 
pile or tufted construction  412.7  672.4  
5701.10.90  Carpets and other textile floor coverings, of wool or fine animal hair, 
not hand -hooked, not hand knotted during weaving  350.8  154.3  
6214.20.00  Shawls, scarves, mufflers, mantillas, veils and the like, not knitted or 
crocheted, of wool or fine animal hair  329.4  142.3  
6505.00.40  Hats and headgear, of wool, made up from felt or of textile material, 
not knitted or crocheted or made up from knitted or crocheted fabric  144.6  91.6 
5702.31.20  Carpets and other textile floor coverings of pile con struction, woven, 
not tufted or flocked, not made up, of wool/fine animal hair, nesoi  111.6  12.5 
4202.22.45  Handbags with or without shoulder strap or without handle, with 
outer surface of cotton, not of pile or tufted construction or braid  49.2 177.0  
4202.32.40  Articles of a kind normally carried in the pocket or handbag, with 
outer surface of cotton, not of pile or tufted construction  44.1 30.0 
6117.80.85  Headbands, ponytail holders & similar articles, of textile materials 
other than containin g 70% or more by weight  of silk, 
knitted/crocheted  40.9 19.5 
4202.92.39  Travel, sports and similar bags with outer surface of textile materials 
other than MMF, paper yarn, silk, cotton  36.4 174.1  
6214.90.00  Shawls, scarves, mufflers, mantillas, veils and the like, not knitted or 
crocheted, of textile materials nesoi  35.8 2.4 
5703.10.80  Carpets and other textile floor coverings, tufted, whether or not made 
up, of wool or fine animal hair, nesoi  35.3 20.0 
4202.22.89  Handbags with or without shoulder strap or without handle, with 
outer surface of textile materials nesoi  34.7 23.8 
6505.00.50  Hats and headgear, of man -made fibers, knitted or crocheted or 
made up from knitted or crocheted fabric, wholly or in part of braid  31.5 (a) 
5705.00.20  Carpets and other textile floor coverings, whether or not made up, 
nesoi 30.4 (a) 
4202.92.20  Travel, sports and similar bags with outer surface of vegetable fibers, 
excl. cotton, not of pile construction  27.9 97.7 
4202.32.99  Articles of a kind normally carried in the pocket or handbag, with 
outer surface of other textile materials  26.8 9.0 
6214.10.10  Shawls, scarves, mufflers, mantillas, veils and the like, not knitted or 
crocheted, containing 70% or more silk or silk waste  22.6 2.3 
6301.90.00  Blankets and traveling rugs, nesoi  21.2 19.8 
6216.00.80  Gloves, mittens and mitts, not knitted or crocheted, of wool or fine 
animal hair, nesoi  21.1 3.5 
4202.32.91  Articles of a kind normally carried in the pocket or handbag, with 
outer surface of cotton  17.0 3.4 
6308.00.00  Needlecraft sets for making up into rugs, etc., consist of woven fabric 
and yarn, whether/not w/accessories, put up packings for retail sale  15.6 6.1 
5703.10.20  Hand-hooked carpets and other textile floor coverings, tufted, 
whether or not made up, of wool or fine animal hair  14.3 5.8 
6217.10.85  Headbands, ponytail holders and similar articles, of textile materials 
containing < 70% by weight of silk, not knit/crochet  13.7 19.6 
6505.00.20  Headwear, of cotton, not knit ted; certified hand -loomed and folklore 
hats & headgear, of cotton or flax, not knitted  13.2 31.5 
5702.49.20  Carpets & other textile floor coverings of pile construction, woven, 
not tufted or flocked, made up, of other textile materials nesoi  10.7 104.9  
6505.00.25  Hats and headgear, of cotton or flax, not knitted, not certified hand -
loomed folklore goods  10.4 0.3 
6117.10.60  Shawls, scarves, mufflers, mantillas, veils and the like, nesoi  8.6 0.4 
6505.00.90  Hats and headgear, of textile materials (other than of cotton, flax, 
wool or man -made fibers), nesoi  8.3 7.3 
5702.91.30  Floor coverings,  not of pile construction,  woven not on power -driven 
loom, made up, of wool or fine animal hair, nesoi  6.7 (a) 
4202.92.60  Bags, cases and similar co ntainers, nesoi, with outer surface of cotton  5.0 5.8 WT/L/1119  
 
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  HTS 
number  Description  2020 2021 YTD 
(through July)  
  Value (1,000 dollars)  
5702.91.40  Carpets & other textile floor coverings, not of pile construction, woven 
nesoi, made up, of wool or fine animal hair, nesoi  4.9 (a) 
4202.12.40  Trunks, suitcases, vanity & attache cases, occupational luggage & like 
containers, surfaces of cotton, not of pile or tufted construction  4.4 (a) 
6214.40.00  Shawls, scarves, mufflers, mantillas, veils and the like, not knitted or 
crocheted, of artificial fibers  4.3 0.3 
6214.10.20  Shawls, scarves, mufflers, mantillas, veils and the like, not knitted or 
crocheted, containing less than 70% silk or silk waste  3.8 (a) 
4203.29.50  Gloves, mittens and mitts of leather or composition leather, nesoi, 
lined, for persons other than men  3.6 (a) 
4202.12.60  Trunks, suitcases, vanity & attache cases, occupational luggage & like 
containers, w outer surface of veg. fibers, excl. cotton  3.3 (a) 
4202.29.90  Handbags with or without shoulder straps or without handle, with 
outer surface of vulcanized  fiber or of paperboard, not covered with 
paper  3.3 0.7 
6505.00.60  Hats and headgear, of man -made fibers, knitted or crocheted or 
made up from knitted or crocheted fabrics, not in part of braid  3.1 (a) 
6505.00.15  Hats and headgear, of cotton and/or flax, knitted  2.7 17.5 
4202.92.93  Bags, cases and similar containers with outer surface of textile 
materials, not of MMF  2.5 0.6 
4202.32.93  Articles of a kind normally carried in the pocket or handbag, with 
outer surface of MMF  2.3 2.3 
4202.32.80  Articles of a kind normally carried in the pocket or handbag,  with 
outer surface of vegetable fibers,  not of pile or tufted construction, 
nesoi 2.1 1.4 
4202.92.33  Travel, sports and similar bags with outer surface of textile materials 
of paper yarn, silk or cotton  2.0 3.5 
4202.22.40  Handbags with or without shoulder strap or without handle, with 
outer surface of textile materials, wholly or in part of braid, nesoi  1.8 4.9 
4202.92.31  Travel, sports and similar bags with outer surface of MMF textile 
materials  1.8 (a) 
4202.91.90  Cases, bags and containers nesoi, other than golf bags, with outer 
surface of leather, of composition leather  1.7 (a) 
6506.99.60  Headgear (other than safety headgear), nesoi, of materials other 
than rub ber, plastics, or furskins, whether or not lined or trimmed  1.4 0.6 
4202.31.60  Articles of a kind normally carried in the pocket or handbag, with 
outer surface of leather, composition or patent leather, nesoi  1.3 0.8 
4202.22.60  Handbags with or w/o shoulder strap or w/o handle, outer surface of 
veg. fibers, exc. cotton, not of pile or tufted construction or braid  1.2 6.8 
4202.92.45  Travel, sports and similar bags with outer surface of plastic sheeting  0.6 1.6 
6505.00.08  Hats and headgear made from hat forms and hat bodies of 6501, 
except of fur felt  0.5 (a) 
6504.00.90  Hats and headgear, plaited or assembled from strips of any material 
(o/than veg. fibers/unspun fibrous veg. materials and/or paper yarn)  0.5 (a) 
4202.22.81  Handbags with or without shoulder strap or without handle, with 
outer surface of MMF materials  0.3 (a) 
4202.22.70  Handbags with or w/o shoulder strap or w/o handle, with outer 
surface containing 85% or more of silk, not braided  0.3 (a) 
5703.90.00  Carpets and other textil e floor coverings, tufted, whether or not made 
up, of other textile materials nesoi  (a) 1.6 
4202.29.50  Handbags w. or w/o shld. strap or w/o handle of mat. (o/t leather, 
shtng. of plas., tex. mat., vul. fib. or paperbd.), pap.cov.,of mat. 
nesoi (a) 22.6 
4202.12.89  Trunks, suitcases, vanity & attache cases, occupational luggage and 
similar containers, with outer surface of textile materials nesoi  (a) 2.6 
  Total 2,464.8  1,937.0  
(a) Less than $1,000.  
Note:  Because of rounding, figures may not add to totals given. The abbreviation "nesoi" stands for "not 
elsewhere specified or otherwise included."  
Source:  Compiled from official statistics of the US Department of Commerce.  
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