WT/L/1021  
 
16 November 2017  
(17-6237) Page: 1/3 
General Council  
30 November - 1 December 2017  Original: English  
 
TRADE PREFERENCES FO R NEPAL  
REPORT OF THE GOVERN MENT OF THE UNITED S TATES  
UNDER THE DECISION O F 7 DECEMBER 20161 
The following communication, dated 16 November 2017 , 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 provisi ons of the programme with a 
view to facilitating the annual review provided for in paragraph 4 of Ar ticle IX of the WTO 
Agreement. This report covers the period from 1 January 2017 through 30 September 2017, the 
most recent period for which data is availab le. 
2  DUTY FREE TREATMENT UNDER THE PREFERENCE S 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 t hat meet specific eligibility criteria. These preferences  are provided to assist Nepal in 
its recovery from a devastating earthquake and aftershocks in April 2015. Since 1976, the United 
States has granted tariff preferences to developing countries, includ ing 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 eligib ility requirements are met.  The trade preferences were 
implemented on 15 December 2016.  
2.2.  Section 915(e) of the Act requires the President to monitor, review, and report to Congress 
on the compliance of Nepal with the eligibility requirements in subsection ( b)(1). Under 
Section  915(b)(2) of the Act, the President may withdraw, suspend or limit preferential treatment 
to Nepal if Nepal does not meet the eligibility criteria.  
2.3.  This program builds on an existing framework of programs intended to assist Nepal's  
economic development. In particular, the United States and Nepal signed a Trade and Investment  
Framework Agreement (TIFA), which entered into force in April 2011. One of the main objectives 
of the TIFA is to expand trade,  investment and technical cooperation  and to strengthen economic 
relations between the parties.  
 
                                                
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  3  PERFORMANCE  
3.1.  In 2016, US imports from Nepal were US$89 million, and US exports to Nepal were US$41 
million . The trade preferences were implemented on 15 December 2016, so the trade data f or the 
preferences is limited. Through the first nine months of 2017, US imports under the Nepal 
preferences were approximately US$1.63 million. Total US imports from Nepal during this same 
period were US$69.1 million.  
3.2.  The three largest categories of goods entering  the preference program were hats and 
headgear, shawls, and handbags. The following table provide additional detail on US  imports from 
Nepal for the first nine months of 2017.  
 
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  WT/L/1021  
 
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  TABLE 1  
LEADING US IMPORTS F OR CONSUMPTION UNDER  NEPAL PREFE RENCE PROVISIONS,  
JANUARY – SEPTEMBER 2017  
HTS number  Description  Value 
(Thousands of 
USD)  
6505.00.30  Hats and Headgear, of wool, knitted or crocheted or made up 
of knitted or crocheted fabric  624 
6214.20.00  Shawls, scarves, mufflers, mantillas, veils and the like, not 
knitted or crocheted, of wool or fine animal hair  317 
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  154 
4202.92.15  Travel, sports and similar bags with outer surface of cotton, 
not of pile or tufted construction  131 
6216.00.80  Gloves, mittens and mitts, not knitted or crocheted, of wool 
or fine animal hair, nesoi  51 
5701.10.90  Carpets and other textile floor coverings, of wool or fine 
animal hair, not hand -hooked, not hand knotted during 
weaving  44 
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  39 
6214.10.10  Shawls, scarves, mufflers, mantillas, veils and the like, not 
knitted or crocheted, containing 70% or more silk or silk 
waste  38 
6505.00.50  Hats and headgear, of man -made fibres , knitted or crocheted 
or made up from knitted or crocheted fabric, wholly or in 
part of braid  30 
4202.22.89  Handbags with or without shoulder strap or without handle, 
with outer surface of textile materials nesi  25 
6117.80.85  Headbands, ponytail holders & similar articles, of textile 
materials other than containing 70% or more by weight of 
silk, knitted/crocheted  23 
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  14 
6217.10.85  Headbands, ponytail holders and similar articles, of textile 
materials containing  < 70% by weight of silk, not 
knit/crochet  14 
6117.10.60  Shawls, scarves, mufflers, mantillas, veils and the like, nesoi  14 
4202.32.99  Articles of a kind normally carried in the pocket or handbag, 
with outer surface of other textile materials  13 
 Subtotal  1,530  
 All Others  99 
 Total 1,630  
   
Note:  Because of rounding, figures may not add to totals given .  The abbreviations "nesoi" and "nesi" 
stand for "not elsewhere specified or otherwise included. " 
Source:   Compiled from official statistics of the US Department of Commerce.  
 
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