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 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.
[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2659 Introduced in House (IH)]
114th CONGRESS
1st Session
H. R. 2659
To authorize preferential treatment for certain imports from Nepal.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 4, 2015
Mr. Crenshaw (for himself and Mr. Polis) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To authorize preferential treatment for certain imports from Nepal.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Nepal Trade Preferences Act''.
SEC. 2. SENSE OF CONGRESS.
It is the sense of Congress that it should be an objective of the
United States to use trade policies and trade agreements to contribute
to the reduction of poverty and the elimination of hunger.
SEC. 3. ELIGIBILITY REQUIREMENTS.
(a) In General.--The President may authorize the provision of
preferential treatment under this Act to articles that are imported
directly from Nepal into the customs territory of the United States
pursuant to section 4 if the President determines--
(1) that Nepal meets the requirements set forth in
paragraphs (1), (2), and (3) of section 104(a) of the African
Growth and Opportunity Act (19 U.S.C. 3703(a)); and
(2) after taking into account the factors set forth in
paragraphs (1) through (7) of subsection (c) of section 502 of
the Trade Act of 1974 (19 U.S.C. 2462), that Nepal meets the
eligibility requirements of such section 502.
(b) Withdrawal, Suspension, or Limitation of Preferential
Treatment; Mandatory Graduation.--The provisions of subsections (d) and
(e) of section 502 of the Trade Act of 1974 (19 U.S.C. 2462) shall
apply with respect to Nepal to the same extent and in the same manner
as such provisions apply with respect to beneficiary developing
countries under title V of that Act (19 U.S.C. 2461 et seq.).
SEC. 4. ELIGIBLE ARTICLES.
(a) In General.--An article described in subsection (b) may enter
the customs territory of the United States free of duty.
(b) Articles Described.--
(1) In general.--An article is described in this subsection
if--
(A)(i) the article is the growth, product, or
manufacture of Nepal; and
(ii) in the case of a textile or apparel article,
Nepal is the country of origin of the article, as
determined under section 102.21 of title 19, Code of
Federal Regulations (as in effect on the day before the
date of the enactment of this Act);
(B) the article is imported directly from Nepal
into the customs territory of the United States;
(C) the article is classified under any of the
following subheadings of the Harmonized Tariff Schedule
of the United States (as in effect on the day before
the date of the enactment of this Act):
4202.11.00............................ 4202.22.60................... 4202.92.08
4202.12.20............................ 4202.22.70................... 4202.92.15
4202.12.40............................ 4202.22.80................... 4202.92.20
4202.12.60............................ 4202.29.50................... 4202.92.30
4202.12.80............................ 4202.29.90................... 4202.92.45
4202.21.60............................ 4202.31.60................... 4202.92.60
4202.21.90............................ 4202.32.40................... 4202.92.90
4202.22.15............................ 4202.32.80................... 4202.99.90
4202.22.40............................ 4202.32.95................... 4203.29.50
4202.22.45............................ 4202.91.00................... .........................................
.........................................
5701.10.90............................ 5702.91.30................... 5703.10.80
5702.31.20............................ 5702.91.40................... 5703.90.00
5702.49.20............................ 5702.92.90................... 5705.00.20
5702.50.40............................ 5702.99.15................... .........................................
5702.50.59............................ 5703.10.20................... .........................................
.........................................
6117.10.60............................ 6214.20.00................... 6217.10.85
6117.80.85............................ 6214.40.00................... 6301.90.00
6214.10.10............................ 6214.90.00................... 6308.00.00
6214.10.20............................ 6216.00.80................... .........................................
.........................................
6504.00.90............................ 6505.00.30................... 6505.00.90
6505.00.08............................ 6505.00.40................... 6506.99.30
6505.00.15............................ 6505.00.50................... 6506.99.60
6505.00.20............................ 6505.00.60................... .........................................
6505.00.25............................ 6505.00.80................... .........................................
(D) the President determines, after receiving the
advice of the United States International Trade
Commission in accordance with section 503(e) of the
Trade Act of 1974 (19 U.S.C. 2463(e)), that the article
is not import-sensitive in the context of imports from
Nepal; and
(E) subject to paragraph (3), the sum of the cost
or value of the materials produced in, and the direct
costs of processing operations performed in, Nepal or
the customs territory of the United States is not less
than 35 percent of the appraised value of the article
at the time it is entered.
(2) Exclusions.--An article shall not be treated as the
growth, product, or manufacture of Nepal for purposes of
paragraph (1)(A)(i) by virtue of having merely undergone--
(A) simple combining or packaging operations; or
(B) mere dilution with water or mere dilution with
another substance that does not materially 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 territory 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 article at the time it is
entered.
(c) Verification With Respect to Transshipment for Textile and
Apparel Articles.--
(1) In general.--Not later than April 1, July 1, October 1,
and January 1 of each year, the Commissioner responsible for
U.S. Customs and Border Protection shall verify that textile
and apparel articles imported from Nepal to which preferential
treatment is extended under this Act are not being unlawfully
transshipped into the United States.
(2) Report to president.--If the Commissioner 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 findings:
(1) As a land-locked least-developed country, Nepal has
severe challenges reaching markets and developing capacity to
export goods. As of 2015, exports 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-operation and Development found that export costs
in Nepal are high with respect to both air cargo and container
shipments relative to other low-income countries. Such indices
also identify particular weaknesses in Nepal with respect to
automation of customs 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 Organization 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, establish 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 manage trade documentation and regulations in the
United States and other countries;
(2) to provide export finance training for financial
institutions in Nepal and the Government of Nepal;
(3) to assist the Government of Nepal in maintaining
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
implementation 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 enactment of this
Act, and annually thereafter, the President shall monitor, review, and
report to Congress on the implementation of this Act, the compliance of
Nepal with section 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.
SEC. 8. EFFECTIVE DATE.
The provisions of this Act shall take effect on January 1, 2016.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Referred to the Subcommittee on Trade.
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