'Nepal stands to benefit from the US’s current 10 pc basic duty rate'
KATHMANDU: Nepal-USA Chamber of Commerce and Industry President Kiran Prakash Saakha said that, despite instability in US tariff policy, Nepal stands to benefit from the United States’ current 10% basic duty rate. He remarked this during the chamber’s 24th annual general meeting (AGM) in Kathmandu on Thursday.
‘While neighbouring countries are facing high tariffs, Nepal is currently within the scope of a 10% basic duty, which provides a comparative advantage for increasing exports to the American market,’ Saakha told delegates.
The United States is one of Nepal’s main trading partners. Key exports include carpets, ready-made garments, handicrafts, chhurpi (dog-chew), pashmina, woollen and felt items. Nepal exported goods worth Rs 18.32 billion to the US in the last fiscal year, making it the second-largest export destination after India.
Saakha said Nepal enjoyed duty-free access for 77 items under the Nepal Trade Preference Programme (NTPP) until December 2025, but that this facility was revoked by an executive order from US President Donald Trump. He added that the Government of Nepal has yet to respond and that the chamber supports restoring the duty-free provision.
‘With the NTPP expiring in December 2025, exporters still have to pay a 10% basic duty, so the duty-free provision is not implemented in practice,’ he said.
He also noted that the chamber is advising the Government of Nepal ahead of the Trade and Investment Framework Agreements (TIFA) Council meeting, insisting on the full implementation of commitments made under TIFA.
At the AGM, the chamber honoured outstanding exporters and importers across eight categories, including carpets, ready-made garments, handicrafts, chhurpi, pashmina and woollen and felt items, as well as awards for the highest importer from the US, leading start-up entrepreneurs and outstanding women entrepreneurs. Eight members who received the commercially important persons (CIP) honours were also recognised on the occasion.
