for purposes of paragraph (1)(A)(i) by virtue of hav-
ing merely undergone— 
(A) simple combining or packaging oper-
ations; or 
(B) mere dilution with water or mere dilu-
tion with another substance that does not mate-
rially alter the characteristics of the article. 
(3) LIMITATION ON UNITED STATES COST.— 
For purposes of paragraph (1)(E), the cost or value 
of materials produced in, and the direct costs of 
processing operations performed in, the customs ter-
ritory of the United States and attributed to the 35- 
percent requirement under that paragraph may not 
exceed 15 percent of the appraised value of the arti-
cle at the time it is entered. 
(c) VERIFICATION
WITH
RESPECT
TO
TRANS-
SHIPMENT FOR TEXTILE AND APPAREL ARTICLES.— 
(1) IN GENERAL.—Not later than April 1, July 
1, October 1, and January 1 of each year, the Com-
missioner responsible for U.S. Customs and Border 
Protection shall verify that textile and apparel arti-
cles imported from Nepal to which preferential treat-
ment is extended under this Act are not being un-
lawfully transshipped into the United States. 
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(2) REPORT TO PRESIDENT.—If the Commis-
sioner determines pursuant to paragraph (1) that 
textile and apparel articles imported from Nepal to 
which preferential treatment is extended under this 
Act are being unlawfully transshipped into the 
United States, the Commissioner shall report that 
determination to the President. 
SEC. 5. TRADE FACILITATION AND CAPACITY BUILDING. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) As a land-locked least-developed country, 
Nepal has severe challenges reaching markets and 
developing capacity to export goods. As of 2015, ex-
ports from Nepal are approximately $800,000,000 
per year, with India the major market at 
$450,000,000 annually. The United States imports 
about $80,000,000 worth of goods from Nepal, or 
10 percent of the total goods exported from Nepal. 
(2) The World Bank has found evidence that 
the overall export competitiveness of Nepal has been 
declining since 2005. Indices compiled by the World 
Bank and the Organization for Economic Co-oper-
ation and Development found that export costs in 
Nepal are high with respect to both air cargo and 
container shipments relative to other low-income 
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countries. Such indices also identify particular weak-
nesses in Nepal with respect to automation of cus-
toms and other trade functions, involvement of local 
exporters and importers in preparing regulations 
and trade rules, and export finance. 
(3) Implementation by Nepal of the Agreement 
on Trade Facilitation of the World Trade Organiza-
tion could directly address some of the weaknesses 
described in paragraph (2). 
(b) ESTABLISHMENT OF TRADE FACILITATION AND 
CAPACITY BUILDING PROGRAM.—Not later than 180 days 
after the date of the enactment of this Act, the President 
shall, in consultation with the Government of Nepal, es-
tablish a trade facilitation and capacity building program 
for Nepal— 
(1) to enhance the central export promotion 
agency of Nepal to support successful exporters and 
to build awareness among potential exporters in 
Nepal about opportunities abroad and ways to man-
age trade documentation and regulations in the 
United States and other countries; 
(2) to provide export finance training for finan-
cial institutions in Nepal and the Government of 
Nepal; 
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(3) to assist the Government of Nepal in main-
taining publication of all trade regulations, forms for 
exporters and importers, tax and tariff rates, and 
other documentation relating to exporting goods on 
the Internet and developing a robust public-private 
dialogue, through its National Trade Facilitation 
Committee, for Nepal to identify timelines for imple-
mentation of key reforms and solutions, as provided 
for under the Agreement on Trade Facilitation of 
the World Trade Organization; and 
(4) to increase access to guides for importers 
and exporters on the Internet, including rules and 
documentation for United States tariff preference 
programs. 
SEC. 6. REPORTING REQUIREMENT. 
Not later than one year after the date of the enact-
ment of this Act, and annually thereafter, the President 
shall monitor, review, and report to Congress on the imple-
mentation of this Act, the compliance of Nepal with sec-
tion 3(a), and the trade and investment policy of the 
United States with respect to Nepal. 
SEC. 7. TERMINATION OF PREFERENTIAL TREATMENT. 
No preferential treatment extended under this Act 
shall remain in effect after December 31, 2025. 
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SEC. 8. EFFECTIVE DATE. 
The provisions of this Act shall take effect on Janu-
ary 1, 2016. 
Æ 
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