Nepal Trade Preferences Act

Nepal Trade Preferences Act

It is the sense of Congress that it should be an objective of the United States to use trade policies and trade agreements to reduce poverty and eliminate hunger.

The President may give preferential treatment to certain articles imported directly from Nepal into the U.S. customs territory if that country meets certain requirements under the African Growth and Opportunity Act, including a market-based economy and the rule of law, the protection of human rights and internationally-recognized worker rights, elimination of trade barriers to the United States, and non-engagement in activities that undermine U.S. national security or foreign policy interests or support acts of international terrorism. Nepal must also meet certain eligibility criteria for designation as a beneficiary developing country under the Trade Act of 1974.

Certain leather articles (trunks, suitcases, vanity cases, attache cases, briefcases, school satchels and similar containers) and textile or apparel articles imported directly from Nepal may enter the U.S. customs territory duty-free if:

• the article is the growth, product, or manufacture of Nepal;
• Nepal is the country of origin of the textile or apparel article;
• the President determines, after receiving advice from the U.S. International Trade Commission (USITC), that the article is not import-sensitive; and
• the sum of the cost or value of the materials produced in, and the manufacturing costs performed in, Nepal or the U.S. customs territory is at least 35% of the appraised value of the article at the time it is entered. Limits to 15% of the appraised value of an article at the time it is entered the cost or value of the materials produced in, and the manufacturing costs performed in, the U.S. customs territory and attributed to the 35% requirement.

The U.S. Customs and Border Protection must verify annually that textile and apparel articles imported duty-free into the United States from Nepal are not being unlawfully transshipped into the United States.

The President shall establish a trade facilitation and capacity building program to assist Nepal in the export of goods.

The extension of preferential treatment to Nepal shall terminate after December 31, 2025.