WT/COMTD/PTA/3/1  
 
 13 November 2017 
(17-6164)  Page: 1/15 
Committee on Trade and Development  
Dedicated Session on Preferential Trade Arrangements    
 
FACTUAL PRESENTATION  
 
 
UNITED STATES  TRADE PREFERENCES FO R NEPAL  
 
 
REPORT BY THE SECRET ARIAT  
This report, prepared for the consideration of the United States'  Trade Preferences for Nepal , has 
been drawn up by the WTO Secretariat on its own responsibility a nd in full consultation with the 
notifying Member . The factual presentation reproduces as closely as possible the terminology used 
in the preferential trade arrangement and in the comments provided and does not imply official 
endorsement or acceptance by t he Secretariat of such terminology.  The report has been drawn up 
in accordance with the rules and procedures contained in the Decision for a Transparency 
Mechanism for Preferential Trade Arrangements (WT/L/806) and thus does not imply any value 
judgement b y the Secretariat regarding the contents of the preferential trade arrangement.   
Any questions arising from this report may be addressed to Kimm Gnangnon 
(tel: +41 22 739 6404) or Thomas Verbeet (tel: +41 22 739 6596).  
 
 WT/COMTD/PTA/3/1  
 
- 2 - 
 
  1  BACKGROUND INFORMATI ON 
1.1.  Following t he waiver decision t aken by the WTO General Council on 7 December  2016 
(WT/L/1001 ) and the United States (US)  Proclamation 95551, the US Trade Preferences for Nepal 
(henceforth referred to as the "US TPN") entered into force on 30 December 2016 . As indicate d in 
the waiver decision, the preferential market access for Nepal is being  granted  in order to promote 
the expansion of trade and economic development  following the social and economic consequences 
of the earthquake and its aftershocks , which affected ext ensive regions of Nepal in April 2015 . 
Preferences granted under the USTPN  will expire on 31 December 2025. 
1.2.  The USTPN was notified under the Transparency Mechanism for Preferential Trade 
Arrangements (PTAs) on 20  January 20 17 (WT/COMTD/N/52 ).  
1.3.  In addition to being a beneficiary of the PTA, Nepal  is a beneficiary of the US Generalized 
System of Preferences (GSP) scheme , which is due to expire on 31 December 2017 . Information 
on the US' PTAs can be accessed from the WTO's Database on PTAs.2  
1.4.  The US TPN also bu ilds on an existing framework of program mes intended to assist Nepal's 
economic development. In particular, the US and Nepal signed a Trade and Investment Framework 
Agreement (TIFA),  which entered into force in April 2011. O ne of the main objectives of the TIFA is 
to expand trade, investment and technical cooperation and to strengthen economic relations 
between the parties.  
2  GENERAL TRADE ENVIRO NMENT  
2.1.  Nepal  is a landlocked least developed Himalayan country in South Asia, bordering China in 
the north, and Indi a in the south, east, and west.  The GDP per capita is reported at around 
US$709  per year, out of which around 25% is  trade related.3 A significant proportion is attributed 
to trade in co mmercial services, where travel -related services are dominant. With re gard to 
merchandise trade , Nepal  ranked 156th in terms of exports  and 114th in terms of imports  in 2015 .  
2.2.  Around two -thirds of merchandise exports are destined to India, followed by the Europ ean 
Union and the US. Nepal's i mports originate  mainly from  India, China and United Arab Emirates. 
Since  the 1950s, Nepal has shown  consisten tly higher  merchandise  imports than exports . Although 
the trade balance  has varied over the years and was close to parity  in 1968, it has grown 
increasingly negative over the last decades. In 2004, when Nepal joined the WTO, exports of 
Nepalese goods reached about 40 % of the value of imports.  This share of exports has fallen since, 
and decreased to around  11% in 2015.  
2.3.  The composition of  Nepal's  merchandise exports by product groups4 over the period 
2013-2015 is shown in more detail  in Figure 1 . Two circles are presented: the outer circle shows 
the relative share and diversity  of Nepal's merchandise exports by product groups  to the World; 
the inner circle  shows  the share by product gr oup of Nepal's exports  destined  to the US. 
a. Outer circle - The mo st significant product s exported globally by Nepal are  "textiles" 
(32%), "mineral and metals" (17 %), and " clothing" ( 9%), followed by  – in equal 
shares  - "fruits, vegetables and plants", "othe r agricultural products" and "beverages 
and tobacco" (7%) in terms of total export values. These top five product s mad e up 
close to 80 % of total Nepalese exports  and reached US$721 million in 2015.   
                                                
1 US proclamation 9555, https://www.gpo.gov/fdsys/pkg/FR -2016-12-20/pdf/2016 -30738.pdf  
2 http://ptadb.wto.org  
3 See WTO ITS country profiles 2016  
4 For a definition of product groups, see WTO World Tariff Profiles 2016, 
https://www.wto.org/english/res_e/booksp_e/tariff_profiles16_e.pdf , pages 32ff.  WT/COMTD/PTA/3/1  
 
- 3 - 
 
  b. Inner circle - Nepalese exports to the US account ed for about US$ 83 million5 in 2015.  
The structural composition of Nepalese exports to the U S is similar  to Nepal's global 
exports , with a significantly higher share of exports in "textiles" (60%) and "clothing" 
(22%), followed by " minerals and metals" (7%). Th ese three product categories make 
up 89% of total bilateral exports  and reveal that the composition of exports to the U S is 
more concentrated on fewer product groups than overall global Nepalese exports.  
Figure 1: Composition of Nepal's  exports to the World  (outer circle)  and the US (inner 
circle) , average values 2013 -2015   
 
Source:  WTO Integrated Database complemented by UN Comtrade  
 
 
2.4.  The US participation in global trade has been steadily increasing for decades. Figure 2 
presents the evolution of US world imports in comparison to imports from LDCs and imports from 
Nepal, in terms of merchandise trade values . US world -wide imports increased over the period 
2010 to 2015. In comparison , total US imports of products exported by  LDCs decreased by about 
one-third from 2010 to 2015. This negative trend is mainly due to a significant decrease of  oil and 
mineral fuels  imports.6 In contrast to imports from LDCs in general, US imports of products of 
Nepalese origin experienced a substantial growth  with imports increasing  by 43%  from 2010 to 
2015.  
                                                
5 WTO Integrated Database, US imports from Nepal. Exports as reported in Comtrade are reported at 
US$70 million in 2015.  
6 Excluding products listed in chapter 27 of the Harmonized System from the analysis reveals that all 
other merchandise LDC exports to the US combined, in terms of value, have increased by around 36% from 
2010 to 2015.  WT/COMTD/PTA/3/1  
 
- 4 - 
 
  Figure 2: US imports from the World , LDCs , and Nepal; b ased on import values, i ndexed 
year 2010 
 
 Source:  WTO Integrated Database  
 
3  REGULATORY AND PROCE DURAL FRAMEWORK  
3.1.  The legal basis for the USTPN  is the Trade Facilitation and Trade Enforcement Act of 2015 
(Sec. 915), introducing autonomous trade preferences for Nepal (henceforth "the Act"). The Act 
was published in the Public Law 114 -125 on 24 February 2016 (pages 276 -279).  
3.2.  One year after the date of the enactment of the Act, and annually thereafter , the US 
President is required to monitor, review and report to Congress its implementation and the trade 
and investment policy of the US with respect to Nepal .  
3.3.  The Act indicates that a trade facilitation and capacity building progra mme for Nepal is to be 
established 180 days after the date of the enactment  (Box 1) . 
Box 1: Trade Facilitation and Capacity Building  
 To enhance the central export promotion agency of Nepal to support successful exporters and to build 
awareness among potent ial exporters in Nepal about opportunities abroad and ways to manage trade 
documentation and regulations in the US and other countries;  
 
 To provide export finance training for financial institutions in Nepal and the Government of Nepal;  
 
 To assist the Gove rnment of Nepal in maintaining publication on the Internet of all trade regulations, 
forms for exporters and importers, tax and tariff rates, and other documentation relating to exporting 
goods and developing a robust public -private dialogue, through its N ational Trade Facilitation 
Committee, for Nepal to identify timelines for implementation of key reforms and solutions, as 
provided for under the Agreement on Trade Facilitation of the WTO; and 
 
 To increase access to guides for importers and exporters, thro ugh publication of such guides on the 
Internet, including rules and documentation for US tariff preference program mes. 
 
3.1  Preferential treatment and modifications  
3.4.  The Act originally lists 66 products e ligible for duty -free treatment . Subsequently , the Act 
was considered and approved by the WTO General Council on 7 December 2016, and put in to force 
by the US Proclamation 9555 on 15 December  2016. Due to changes in the Harmonized Tariff 
Schedule (HTS) of the US and the change  from HS2012 to HS2017, the number of tariff lines  WT/COMTD/PTA/3/1  
 
- 5 - 
 
  increased to 77 national tariff lines that are exempt from custom du ties upon importation under 
the USTPN . These 77 products are listed in Annex 1.  
3.5.  Nepal also benefits from the US GSP scheme , which is due to expire on 31 December 2017 . 
Howe ver, due to the consequence of the earthquake, the USTPN  serves as additional support to 
help Nepal pursue its social and economic recovery. 31 of those 77 tariff lines are also covered 
under the GSP program , most of these products were not GSP -eligible at  the time that the Nepal 
Act was passed in 2015 but became GSP -eligible in July 2016.  
3.2  Eligibility and related procedures  
3.6.  Only goods specifically enumerated in the regulation  may enter the customs territory of the 
US free of duty  under the USTPN . These good s are reproduced in Annex 1 of this Report.   
Box 2 : Rules of origin  
 Paragraph  (c) of Sec. 915 of the Act describes the eligibility criteria for goods imported under the USTPN. 
Eligible goods  from Nepal are described as those which were grown, produced or m anufactured in Nepal , which 
meet all statutory requirements,  and which were imported directly into the US (that is, not transhipped).  
 For purposes of determining if a good has been substantially transformed in Nepal and therefore is 
eligible to be conside red for these tariff preferences, the provisions of law applicable on a most -
favoured -nation basis are initially applied.  Importers of those goods determined to be products of 
Nepal may then establish eligibility under the additional criteria under the pr eference program. Basic 
principles for establishing substantial transformation, based on section 1304 of the Tariff Act of 1930, 
as amended (19 U.S.C. §1304), are set forth in section 102.11 of title 19, Code of Federal Regulations 
(19 CFR §102.11), with s pecified tariff -shift criteria enumerated in 19 CFR §102.20 . 
Textile and apparel articles are subject to a separate set of rules detailed in section 102.21 of title 19, Code of 
Federal Regulations (19 CFR §102.21). These rules enumerate specific origin cri teria based on a change of tariff 
classification. An article would be considered to originate in Nepal - and therefore be eligible for preferences 
under USTPN – if manufacturing processes occurred in a way that there was a change from one tariff 
classifica tion (that of the materials used) into another (that of the final product) as indicated in the product -
specific rules.  
The Presidential proclamation implementing the USTPN sets out additional criteria based on the value of 
materials and processes. Specific ally, materials used and the direct costs of processing operations performed in 
Nepal must account for at least 35%  of the value of the final product imported by the US. Cumulation with the 
US is possible in meeting the required value threshold . However, t he value of materials and processes 
originating in the US must not exceed 15% of the final value of the good. Value is defined as the appraised 
value of the article at the time of importation into the US . 
 
3.3  Timeframes for the application of preferential treatment  
3.7.  The USTPN entered into force on 30  Decembe r 201 6.  
3.8.  The preferential arrangements described in the Act will apply until 31 December 20 25. 
3.9.  The US is to submit a n annual report to the General Council on the implementation of the 
provisions . 
4  OVERVIEW  OF PREFERENTIAL TREA TMENT  
4.1.  This section summarizes some aspects of the preferential treatment offered by the US to 
Nepal  in the context of the USTPN . More detail on the products covered by the USTPN  can be 
found in Annex 1 of this report.   
4.1  Product coverage  
4.2.  A total of 77 tariff lines are eligible for preferential treatment , which includes  56 "textiles" 
tariff lines, ten "leather, footwear, etc."  tariff lines , nine "clothing" tariff lines and two "other 
manufacturing products".  WT/COMTD/PTA/3/1  
 
- 6 - 
 
  4.3.  Figure 3 shows the number of al l US national tariff lines included in the  US HTS  by the 
product categories covered by the USTPN . In the product group of "textiles ", 56 out of 1099 
national tariff lines are covered by the arrangement , which include  products such as bags and 
handbags, sui tcases , hats , headgear and carpets. In the product group of "clothing ", 9 out of 647 
tariff lines are covered by the arrangement , and include  shawls, scarves and headbands. In the 
product group of "leather, footwear, etc .," the USTPN  covers ten  out of 421 national tariff lines,  
which includes products such as  cases , bags, handbags and gloves.  Lastly,  two out of 895 tariff 
lines show preferential market access for headgear  in the product group of " other manufactures ". 
More detail of the  products  covered can be found in HS chapters 42, 57, 61, 62, 63, and 65.  
4.4.  It should be noted that many US national tariff lines in those product categories are already 
MFN duty -free, or duty -free for eligible GSP -LDC beneficiaries.  
Figure 3: US national tariff lines by sector a nd USTPNa, 2017  
 
a Please note that some products shown as being eligible to duty -free treatment under the USTPN are 
 also eligible for duty -free treatment under the GSP -LDC scheme  
 Source:  WTO Integrated Database  
 
4.2  Tariff preferences  
4.5.  Products eligible fo r preferential treatment7 are exempt from duty when entering the US 
under the USTPN. The average MFN duty8 of products covered by the USPTN  is 9.7% in 2017 , with 
duties ranging from 3.3 % to 20 %. MFN applied duties are at the level of their bound WTO 
commit ment, as found in the US schedule.  Nepal is granted  preferential  duty-free access to the 
US' market as a beneficiary of the US ' GSP scheme  for 31 of the 77 USTPN products . It should be 
noted that  most of these products were not GSP -eligible at the time tha t the Nepal Act was passed 
in 2015 but became GSP -eligible in June 2016 .  
 
                                                
7 See Annex 1  
8 Mixed duties for national tariff lines 65050008, 65050030, 65050040, 65050060, 65050080, 
65050090 have reportedly a d-valorem equivalents ranging  between 7% -9% in the year 2015 . WT/COMTD/PTA/3/1  
 
- 7 - 
 
  4.3  Imports of covered products  
4.6.  Table 1 presents  the latest trends of US imports eligible for preferential treatment under 
USTPN  prior to 30 December 2016 . The table shows first global US imports , followed by US 
imports from Nepal, by product category from 2013 to 2015.  The numbers  reveal the magnitude  of 
the US import market for the selected products, and the relative small proportion  being captured 
by Nepalese exporters. On average ove r the period 2013  to 2015, Nepal ese exports of  products 
covered by the USTPN represent s only 0.0 6% of total US imports of those products.  Yet, as 
highlighted in paragraph  2.3, Nepal's total annual exports to the US reached US$83  million  in 
2015, hence the import share of USTPN products of around US$8  million account for a significant 
share  in Nepalese exports to the US . 
Table 1: US imports of  77 USTPN products, by  product  category  
 All partners  
(US$ million)  Nepal  
(US$ million)  
2013  2014  2015  2013  2014  2015 
Textiles   8,136.3   8,454.3   8,931.8   5.2   5.2   4.6  
Clothing   479.3   488.3   445.3   2.6   2.8   3.3  
Leather , footwear , etc  3,534.9   3,984.7   3,978.6   0.0   0.1   0.0  
Manufactures n.e.s.   16.8   19.0   20.2   0.0   0.0   0.0  
Total   12,167.3   12,946.2   13,375.9   7.9   8.2   7.9  
Source:  WTO Integrated Database  
 
 
4.7.  The presented import statistics are observed trade flows that do not capture any additional 
trade flows that might  have benefited from USTPN preferential tariff treatment. As  discussed in 
paragraph  4.4, a few of the products covered by the USTPN were already eligible for GSP d uty-free 
treatment  when the Nepal Trade Preference Act was passed by Congress in June 2015 . However,  
2015 import data utilization of duty schemes seems t o suggest that  within the product scope of 
the USTPN  imports on only 6 tariff lines9 have actually been using the GSP preferential treatment, 
with a utilization rate ranging from 35 % to 100% . A full utilization of USTPN could therefore allow 
a significant additional benefit  in terms of tariff reduction.  
______________  
                                                
9 These are textiles and clothing products with tariff national tariff lines 57029130, 5703102 0, 
57039000, 61178085, 62141010 and  62171085 .  
  WT/COMTD/PTA/3/1  
 
- 8 - ANNEX 1  
PRODUCTS COVERED BY T HE USTPN1 
 
Tariff line  Product Category and Product 
Description  MFN  
duty 
(2017)  
in %  Preferential 
duty for 
GSP-
eligible 
LDCs  
(2017)  
in %   
 
 
Nepal exports to the United States, 2013 -20152 
 
 
2013  
(US$)  2014  
(US$)  2015  
(US$)  2013 -2015  
average 
(US$)  Quantity 
unit 2013 -2015  
average 
quantity  
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 
4202.11.00  Trunks, suitcases, vanity & all other 
cases, occupational luggage & li ke 
containers, surface of leather, 
composition or patent leather  8% 0% 915 1,119  387 807 Number  554 
4202.12.21  Trunks, suitcases, vanity and attache 
cases and similar containers, with outer 
surface of plastics  20% 0% 
299 338 406 348 Number  285 
4202.12.29  Occupational luggage and similar 
containers, with outer surface of plastics  20%  
4202.12.40  Trunks, suitcases, vanity & attache 
cases, occupational luggage & like 
containers, surfaces of cotton, not of pile 
or tufted construction  6.3%  0% 6,909  11,030 12,439  10,126  Number  5,791  
4202.12.60  Trunks, suitcases, vanity & attache 
cases, occupational luggage & like 
containers, with outer surface of veg. 
fibers, excl. cotton  5.7%   14,518  816 - 5,111  Number  3,728  
                                                
1 Products as listed in Annex I of the Regulation.  
2 Imports for HS2017 tariff lines 4202.12.21 and 4202.12.29 refer imports from TL 4202.12. 20 in HS 201 2; imports for HS2017 tariff lines 4202.12 .81 and 
4202.12.89 refer imports from TL 4202.12.80 in HS 201 2; imports for HS2017 tariff lines 4202.22.81 and 4202.22.89 refer imports from TL 4202.22.80 in HS 201 2; 
imports for HS2017 tariff lines 4202. 32.91, 4202. 32.93, and 4202. 32.99 refer imports from  TL 4202. 32.95 in HS 201 2; imports for HS2017 tariff lines 4202. 91.10 and 
4202. 91.90 refer imports from TL 4202. 91.00 in HS 201 2;  imports for HS2017 tariff lines 4202. 92.31, 4202. 92.33, and 4202. 92.39 refer imports from TL 4202. 92.30 in 
HS 201 2; imports f or HS2017 tariff lines 4202. 92.91, 4202. 92.93, 4202. 92.94, 4202. 92.97 refer imports from TL 4202. 92.90 in HS 201 2. 
  
  WT/COMTD/PTA/3/1  
 
- 9 - Tariff line  Product Category and Product 
Description  MFN  
duty 
(2017)  
in %  Preferential 
duty for 
GSP-
eligible 
LDCs  
(2017)  
in %   
 
 
Nepal exports to the United States, 2013 -20152 
 
 
2013  
(US$)  2014  
(US$)  2015  
(US$)  2013 -2015  
average 
(US$)  Quantity 
unit 2013 -2015  
average 
quantity  
4202.12.81  Trunks, suitcases, vanity & attac he 
cases, occupational luggage and similar 
containers, with outer surface of MMF 
materials  17.6%  0% 
15,395  9,944  10,517  11,952  Number  6,389  
4202.12.89  Trunks, suitcases, vanity & attache 
cases, occupational luggage and similar 
containers, with outer surfa ce of textile 
materials nesi  17.6%   
4202.21.60  Handbags, with or without shoulder strap 
or without handle, with outer surface of 
leather, composition or patent leather, 
nesi, n/o $20 ea.  10% 0% 8,641  7,268  3,096  6,335  Number  2,071  
4202.21.90  Handba gs, with or without shoulder strap 
or without handle, with outer surface of 
leather, composition or patent leather, 
nesi, over $20 ea.  9% 0% 321 13,815  19,650  11,262  Number  354 
4202.22.15  Handbags, with or without shoulder 
straps or without handle, with o uter 
surface of sheeting of plastics  16% 0% - 3,762  - 1,254  Number  1,200  
4202.22.40  Handbags with or without shoulder strap 
or without handle, with outer surface of 
textile materials, wholly or in part of 
braid, nesi  7.4%   46,498  108,449  19,796  58,248  Number 30,291  
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  6.3%  0% 827,200  458,912  391,112  559,075  Number  250,817  
4202.22.60  Handbags with or w/o shoulder str ap or 
w/o handle, outer surface of veg. fibers, 
exc. cotton, not of pile or tufted 
construction or braid  5.7%   8,538  3,440  9,866  7,281  Number  1,953  
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  7%  8,606  4,135  2,625  5,122  Number  3,119   
  WT/COMTD/PTA/3/1  
 
- 10 - Tariff line  Product Category and Product 
Description  MFN  
duty 
(2017)  
in %  Preferential 
duty for 
GSP-
eligible 
LDCs  
(2017)  
in %   
 
 
Nepal exports to the United States, 2013 -20152 
 
 
2013  
(US$)  2014  
(US$)  2015  
(US$)  2013 -2015  
average 
(US$)  Quantity 
unit 2013 -2015  
average 
quantity  
4202.22.81  Handbags with or without shoulder strap 
or without handle, with outer surface of 
MMF materials  17.6%  0% 
362,201  280,247  252,504  298,317  Number  176,190  
4202.22.89  Handbags with or witho ut shoulder strap 
or without handle, with outer surface of 
textile materials nesi  17.6%   
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. nesi  7.8%   - 2,307  - 769 Number  54 
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  20%  4,480  9,371  2,828  5,560  Number  2,035  
4202.31.60  Articles of a kind normally carried in the 
pocket or handbag, with outer surface of 
leather, composition or patent leather, 
nesi 8% 0% 702 5,868  1,016  2,529  Number  1,136  
4202.32.40  Articles of a kind normally carried in the 
pocket or handbag, with outer surface of 
cotton, not of pil e or tufted construction  6.3%  0% 116,240  130,973  105,134  117,449  Number  72,069  
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, nesi  5.7%  0% 24,078  14,340  26,548  21,655  Number  13,439  
4202.32.91  Articles of a kind normally carried in the 
pocket or handbag, with outer surface of 
cotton  17.6%   
201,273  165,734  133,333  166,780  Number  139,386  4202.32.93  Articles of a kind normally carried in the 
pocket or handbag , with outer surface of 
MMF 17.6%  0% 
4202.32.99  Articles of a kind normally carried in the 
pocket or handbag, with outer surface of 
other textile materials  17.6%  0% 
4202.91.10  Golf bags, with outer surface of leather 
or composition leather  4.5%  274 2,438  4,198  2,303  Number  384  
  WT/COMTD/PTA/3/1  
 
- 11 - Tariff line  Product Category and Product 
Description  MFN  
duty 
(2017)  
in %  Preferential 
duty for 
GSP-
eligible 
LDCs  
(2017)  
in %   
 
 
Nepal exports to the United States, 2013 -20152 
 
 
2013  
(US$)  2014  
(US$)  2015  
(US$)  2013 -2015  
average 
(US$)  Quantity 
unit 2013 -2015  
average 
quantity  
4202.91.90  Cases, bags and containers nesi, other 
than golf bags, with outer surface of 
leather, of composition leather  4.5%  0% 
4202.92.08  Insulated food or beverage bags with 
outer surface of textile materials,  nesoi 7%  322 444 - 255 Number  174 
4202.92.15  Travel, sports and similar bags with outer 
surface of cotton, not of pile or tufted 
construction  6.3%  0% 785,745  631,141  922,687  779,858  Number  363,998  
4202.92.20  Travel, sports and similar bags with outer 
surface of vegetable fibers, excl. cotton, 
not of pile construction  5.7%  0% 73,110  39,849  31,695  48,218  Number  18,421  
4202.92.31  Travel, sports and similar bags with outer 
surface of MMF textile materials  17.6%  0% 
240,885  287,362  216,264  248,170  Number  508,523 4202.92.33  Travel, sports and similar bags with outer 
surface of textile materials of paper yarn, 
silk or cotton  17.6%   
4202.92.39  Travel, sports and similar bags with outer 
surface of textile materials other than 
MMF, paper yarn, silk, cotton  17.6%  0% 
4202.92.45  Travel, sports and similar bags with outer 
surface of plastic sheeting  20% 0% - 270 4,921  1,730  Number  435 
4202.92.60  Bags, cases and similar containers, nesi, 
with outer surface of cotton  6.3%   36,962  28,105  18,676  27,914  Numb er 31,192  
4202.92.91  Bags, cases and similar containers with 
outer surface of textile materials, of MMF 
except jewelry boxes  17.6%  0% 
10,643  4,516  4,252  6,470  Number  3,001  4202.92.93  Bags, cases and similar containers with 
outer surface of textile materi als, not of 
MMF 17.6%   
4202.92.94  Cases for CDs, CD players, cassettes, or 
cassette players  17.6%   
4202.92.97  Bags, cases & similar containers with 
outer surface of sheeting of plastic 
materials,not containers for CDs or 
cassettes, or CD or c assette players  17.6%  0%  
  WT/COMTD/PTA/3/1  
 
- 12 - Tariff line  Product Category and Product 
Description  MFN  
duty 
(2017)  
in %  Preferential 
duty for 
GSP-
eligible 
LDCs  
(2017)  
in %   
 
 
Nepal exports to the United States, 2013 -20152 
 
 
2013  
(US$)  2014  
(US$)  2015  
(US$)  2013 -2015  
average 
(US$)  Quantity 
unit 2013 -2015  
average 
quantity  
4202.99.90  Cases, bags and similar containers, nesi, 
with outer surface of vulcanized fiber or 
of paperboard  20% 0% 2,998  10,762  5,651  6,470  Number  2,420  
4203.29.50  Gloves, mittens and mitts of leather or 
composition leathe r, nesi, lined, for 
persons other than men  12.6%   - 47,655  - 15,885  Dozen  49 
5701.10.90  Carpets and other textile floor coverings, 
of wool or fine animal hair, not hand -
hooked, not hand knotted during weaving  4.5%   297,200  511,214  327,340  378,585  Square 
metre 2,882  
5702.31.20  Carpets and other textile floor coverings 
of pile construction, woven, not tufted or 
flocked, not made up, of wool/fine animal 
hair, nesoi  4%  56,697  7,500  50,816  38,338  Square 
metre  335 
5702.49.20  Carpets & other textile floor cove rings of 
pile construction, woven, not tufted or 
flocked, made up, of other textile 
materials nesoi  4%  55,734  24,811   26,848  Square 
metre  1,535  
5702.50.40  Carpets & other textile floor coverings, 
not of pile construction, woven, not made 
up, of wool or f ine animal hair, nesoi  6.3%   16,702  29,309  20,510  22,174  Square 
metre  102 
5702.50.59  Carpets & other textile floor coverings, 
not of pile construction, woven, not made 
up, of other textile materials nesoi  2.7%   - 12,960  - 4,320  Square 
metre  9 
5702.91.30  Floor coverings,not of pile 
construction,woven not on power -driven 
loom, made up, of wool or fine animal 
hair, nesi  4.3%  0% 130,943  47,685  25,312  67,980  Square 
metre  1,818  
5702.91.40  Carpets & other textile floor coverings, 
not of pile construction, woven  nesoi, 
made up, of wool or fine animal hair, 
nesoi 3.6%   5,728  12,713  3,260  7,234  Square 
metre  403 
5702.92.90  Carpet & other textile floor coverings, not 
of pile construction, woven, made up, of 
man-made textile materials,nesi  2.7%   - 3,897  - 1,299  Squar e 
metre  11  
  WT/COMTD/PTA/3/1  
 
- 13 - Tariff line  Product Category and Product 
Description  MFN  
duty 
(2017)  
in %  Preferential 
duty for 
GSP-
eligible 
LDCs  
(2017)  
in %   
 
 
Nepal exports to the United States, 2013 -20152 
 
 
2013  
(US$)  2014  
(US$)  2015  
(US$)  2013 -2015  
average 
(US$)  Quantity 
unit 2013 -2015  
average 
quantity  
5702.99.15  Carpets and other textile floor coverings, 
not of pile construction, woven, made up, 
of cotton, nesoi  6.8%   912 4,196  - 1,703  Square 
metre  17 
5703.10.20  Hand-hooked carpets and other textile 
floor coverings, tufted, whether or not 
made up, of wool or fine animal hair  6% 0% 412,112  415,365  160,968  329,482  Square 
metre  2,483  
5703.10.80  Carpets and other textile floor coverings, 
tufted, whether or not made up, of wool 
or fine animal hair, nesoi  6%  25,268  54,998  28,144  36,137  Square 
metre 632 
5703.90.00  Carpets and other textile floor coverings, 
tufted, whether or not made up, of other 
textile materials nesoi  3.8%  0% 57,660  26,196  30,705  38,187  Square 
metre  150 
5705.00.20  Carpets and other textile floor coverings, 
whether or not made up, nesoi  3.3%   94,085  58,318  16,951  56,451  Square 
metre  1,250  
6117.10.60  Shawls, scarves, mufflers, mantillas, veils 
and the like, nesoi  9.5%   41,530  92,765  122,760  85,685  Dozen 
pieces  2,090  
6117.80.85  Headbands, ponytail holders & similar 
articles, of textile materials other than 
containing 70% or more by weight of 
silk, knitted/crocheted  14.6%  0% 83,593  72,516  81,449  79,186  Dozen 
pieces  10,454  
6214.10.10  Shawls, scarves, mufflers, mantillas, veils 
and the like, not knitted or crocheted, 
containing 70%  or more silk or silk waste  1.2%  0% 138,048  133,209  179,586  150,281  Dozen 
pieces  2,134  
6214.10.20  Shawls, scarves, mufflers, mantillas, veils 
and the like, not knitted or crocheted, 
containing less than 70% silk or silk 
waste  3.9%   110,608  86,944  93,168  96,907  Dozen 
pieces  312 
6214.20.00  Shawls, scarves, mufflers, mantillas, veils 
and the like, not knitted or crocheted, of 
wool or fine animal hair  6.7%   1,876,287  1,994,433  2,436,358  2,102,359  Dozen 
pieces  9,689  
6214.40.00  Shawls, scarves, mufflers, manti llas, veils 
and the like, not knitted or crocheted, of 
artificial fibers  5.3%   27,398  81,991  54,613  54,667  Dozen 
pieces  1,837  
6214.90.00  Shawls, scarves, mufflers, mantillas, veils 
and the like, not knitted or crocheted, of 
textile materials nesoi  11.3%   235,983  239,812  142,348  206,048  Dozen 
pieces  6,333   
  WT/COMTD/PTA/3/1  
 
- 14 - Tariff line  Product Category and Product 
Description  MFN  
duty 
(2017)  
in %  Preferential 
duty for 
GSP-
eligible 
LDCs  
(2017)  
in %   
 
 
Nepal exports to the United States, 2013 -20152 
 
 
2013  
(US$)  2014  
(US$)  2015  
(US$)  2013 -2015  
average 
(US$)  Quantity 
unit 2013 -2015  
average 
quantity  
6216.00.80  Gloves, mittens and mitts, not knitted or 
crocheted, of wool or fine animal hair, 
nesoi 3.5%   46,470  56,268  59,355  54,031  Dozen 
pairs 2,778  
6217.10.85  Headbands, ponytail holders and similar 
articles, of textile materials containing < 
70% by weight of silk, not knit/crochet  14.6%  0% 49,229  63,677  90,160  67,689  Dozen 
pieces  7,586  
6301.90.00  Blankets and traveling rugs, nesoi  7.2%   12,781  59,307  21,367  31,152  Number  2,053  
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  11.4%   52,721  7,646  - 20,122  Kilogram  1,315  
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)  6.8%   333 6,968  3,434  3,578  Dozen 
pieces  82 
6505.00.08  Hats and headgear made from hat forms 
and hat bodies of 6501, except of fur felt  13.5 
cents /kg 
+ 6.3% 
+ 1.9 
cents  
/article   3,838  711 424 1,658  Number  526 
6505.00.15  Hats and headgear, of cotton and/or flax, 
knitted  7.9%   29,246  61,591  60,238  50,358  Dozen 
pieces  2,295  
6505.00.20  Headwear, of cotton, not knitted; 
certified hand -loomed and folklore hats & 
headgear, of cotton or flax, n ot knitted  7.5%   1,455  6,077  5,423  4,318  Dozen 
pieces  381 
6505.00.25  Hats and headgear, of cotton or flax, not 
knitted, not certified hand -loomed 
folklore goods  7.5%   4,959  14,996  49,988  23,314  Dozen 
pieces  757 
6505.00.30  Hats and headgear, of wool, knit ted or 
crocheted or made up from knitted or 
crocheted fabric  25.4 
cents  /kg 
+ 7.7%   1,016,997  1,450,474  1,437,933  1,301,801  Dozen 
pieces  31,285  
6505.00.40  Hats and headgear, of wool, made up 
from felt or of textile material, not 
knitted or crocheted or ma de up from 
knitted or crocheted fabric  31 cents  
/kg + 
7.9%   48,261  120,498  44,825  71,195  Dozen 
pieces  2,581   
  WT/COMTD/PTA/3/1  
 
- 15 - Tariff line  Product Category and Product 
Description  MFN  
duty 
(2017)  
in %  Preferential 
duty for 
GSP-
eligible 
LDCs  
(2017)  
in %   
 
 
Nepal exports to the United States, 2013 -20152 
 
 
2013  
(US$)  2014  
(US$)  2015  
(US$)  2013 -2015  
average 
(US$)  Quantity 
unit 2013 -2015  
average 
quantity  
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  6.8%    446 43,011  14,486  Dozen 
pieces  151 
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  20 cents  
/kg + 
7%  2,842  105,207  47,631  51,893  Dozen 
pieces  1,557  
6505.00.80  Hats and headgear, of man -made fibers, 
made up from felt or of textile material, 
not knitted or crocheted, not in part of 
braid 18.7 
cents  /kg 
+ 6.8%   88,541  738 - 29,760  Dozen 
pieces  796 
6505.00.90  Hats and headgear, of textile materials 
(other than of co tton, flax, wool or man -
made fibers), nesoi  20.7 
cents  /kg 
+ 7.5%   23,862  18,529  64,107  35,499  Dozen 
pieces  1,458  
6506.99.30  Headgear, nesoi, of furskin, whether or 
not lined or trimmed  3.3%  0% - - - - Dozen 
pieces  - 
6506.99.60  Headgear (other than safet y headgear), 
nesoi, of materials other than rubber, 
plastics, or furskins, whether or not lined 
or trimmed  8.5%  0% 10,280  17,948  7,876  12,035  Dozen 
pieces  636 
  
 Total  
  7,856,056  8,186,323  7,909,661   
 Source:  WTO Integrated Databas e 
 
__________