The US has extended zero tariff facility for 66 Nepali items with value addition above 35 per cent that are not covered by the generalised system of preferences.
The Nepalese government is preparing to develop a garment processing zone (GPZ) within Simara Special Economic Zone (SEZ), located in Bara district#
But garment entrepreneurs are not sure whether the new American law has incorporated readymade garments. This is because entrepreneurs have interpreted the provisions of law as being similar to the African Growth and Opportunity Act (AGOA), which has provided preference to African countries in export to the US market to stimulate growth.
However, according to former commerce secretary Purusottam Ojha, classification of goods incorporated in 'Trade Facilitation and Trade Enforcement Act' does not incorporate major readymade garment items produced in the country.
“Articles of leather, bags, belts, harness, travel goods, handbags and similar containers; carpets and other textile floor coverings; headgears; pashmina products have been incorporated in the law,” he explained.
Meanwhile, Ministry of Commerce has urged various government agencies to work collectively in export promotion stating that the current piecemeal approach has failed to boost export. The government is preparing to set up an export promotion cell to streamline export promotion activities and deal with supply side constraints. The cell will comprise officials from Ministry of Commerce, Ministry of Industry, Ministry of Finance, Ministry of Labour and Employment, and Nepal Rastra Bank. (SH)
ALCHEMPro News Desk – India
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