Asking the US to provide duty-free facilities on 30 more items

On behalf of Nepal, Commerce and Supply Secretary Gobinda Bahadur Karki has requested to continue the customs facilities provided by the United States on 77 items in the meeting. Apart from 77, 30 more items have also been requested to be facilitated.

After the earthquake in Nepal in May 2017, the US has been providing duty-free market access to 77 items. By establishing a new country-centered acceptance program, the United States has granted customs exemption facilities to Nepali goods included in 77 items under the Harmonized Tariff Schedule. This includes handicrafts, shawls, travel materials and other items. The facility given on these 77 items will expire in December 2025. Nepal has proposed to America to maintain the same facility.

The first agenda item in the meeting was the facility of duty-free market access. The facility provided by America is ending on December 30, 2025, we have requested to increase the facility. In addition to the 77 items on the second agenda, we have proposed to provide customs facilities for 30 more items (including shoes, garments)," said Baburam Adhikari, the spokesperson of the Ministry of Industry, Commerce and Supply.

The US Parliament decides whether to grant or remove customs facilities. The American side has also requested Nepal to 'lobby' at the American Parliament from various levels for convenience. "You can 'lobby' in the parliament through the embassy," the official said, quoting the statement of the American official, "in that process, the American representatives have said that they will make recommendations and facilitate." In the first year 072/73, the export of 77 items which received the facility was worth 874.44 million. After that, the export of these goods continued to decline and in 076/77 it was limited to Rs. After that, the export started increasing again and reached 74 crore 63 lakh rupees in 080/81. Although there is a possibility of increasing exports from 77 items that have

facilities, the problem is due to the production itself. Former Joint Secretary Ravi Sainju says that even 0.05 percent could not be exported as per the demand. ``In the last fiscal year, exports to America were 17 billion 31 million. The export of 77 items with facilities was 746.3 million," he said. But it could not be used. There is a market in America for small entrepreneurs. But we could not teach them how to export. He said that there was no support from the government or the private sector either.

America's advantage lies in the products produced by small entrepreneurs. But the product has not reached the market. In the Tifa meeting held on Monday, it was demanded to continue the facility. Nepal has also requested to extend technical assistance in the meeting. The spokesperson said that an agenda has also been set to support the capacity building of the private sector. The ministry said that the American representative assured positive support in technical assistance and capacity building. Brendan Lynch, Assistant US Trade Representative for South and Central Asia, led the US team at the

meeting. The American Embassy in Nepal has also stated that it is continuously cooperating to increase mutual trade and strengthen Nepal's economy. The embassy said that supporting the economic growth of Nepal and keeping mutual prosperity as the main priority. This is the seventh meeting of Tifa.