RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/NPL/16/Add.2
28 August 2003
(03-4492)
Working Party on the
Accession of Nepal
REPORT OF THE WORKING PARTY ON THE
ACCESSION OF THE KINGDOM OF NEPAL
Addendum
Part II - Schedule of Specific Commitments in Services
List of Article II MFN Exemptions
As indicated in paragraph 154 of the Report of the Working Party on the Accession of the
Kingdom of Nepal (WT/ACC/NPL/16), the Schedule of Specific Commitments on Services resulting
from the negotiations between the Kingdom of Nepal and WTO Members is annexed to the draft
Protocol of Accession of Nepa l and is reproduced hereunder.
_______________WT/ACC/NPL/16/Add.2
Page 2Modes of supply    (1) Cross-Border supply   (2) Consumption abro ad    (3) Commercial Presence    (4) Presence of natural perso ns
Sector or Sub-sector Limitations of Market Access Limitations on National Treatment Additional Commitments
I. HORIZONTAL COMMITMENTS
All Sectors included in this Schedule
(2) None, except convertible currency
limit of USD 2,000 applies toNepalese citizens on personal travel.(1) None, except with respect to foreign
exchange provided to foreigners(excluding those categories ofpersons covered by commitments in
this agreement) to pay for any cross-
border services
(2) None
(3) None
The conditions of ownership,
operation and juridical form andscope of activity as set out in alicense or other form of approvalestablishing or authorizing theoperation and supply of services by
an existing foreign service supplier,
will not be made more restrictivethan they exist as of the date ofNepal’s accession to WTO.
(4) Unbound, except for temporary
entry and stay of natural persons of
another Member in the followingcategories:
Service sales persons
Persons not based in the territory of Nepal
and receiving no remuneration from asource located within Nepal, who areengaged in activities related torepresenting a service supplier for the
purpose of negotiating for the sale of
services of that supplier where:
a. such sales are not directly made to
the general public, and(3) None, except
- A foreign investor reinvesting
earnings is required to obtain thepermission of the Department ofIndustry.
- All foreign investments except for
Financial Services require approval
by the Department of Industry.
- Incentives and subsidies are
available only to enterprises whollyowned by Nepalese nationals.
(4) Unbound except for measures
concerning the categories of natural
persons referred to in the marketaccess column
Selling and buying real estate is the
constitutional right of every Nepalese
citizen. The Civil Code prohibits anyonefrom selling, mortgaging, gifting orendowing or disposing any real propertyto a foreign individual.Except where an environmental impact
assessment is required, decisions of the
Department are normally provided within
30 days of the date of application.
Approval of an investment will not
normally be withheld except for failure tomeet environmental standards.
A foreign investor making an investment
in foreign currency shall be entitled torepatriate the following amount outsideNepal:
a) The amount received by the sale, in
whole or part, of the investors shareof equity;
b) The amount received as profit or
dividend as a result of an equity
investment;
c) The amount received as the payment
of the principal of and interest onany foreign loan; and
d) The amount received under an
agreement to transfer technology
approved by the Department of
Industries or the Department ofCottage and Small Industries.WT/ACC/NPL/16/Add.2
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Sector or Sub-sector Limitations of Market Access Limitations on National Treatment Additional Commitments
b. the sales person is not engaged in
supplying the service.
Entry for persons named in these two
categories is limited to a ninety-day
period, which may be renewed.
Persons responsible for setting up a
commercial presence
Persons who are employees of an
enterprise not having commercialpresence in Nepal and who staytemporarily in Nepal for the purpose ofsetting up a commercial presence of that
enterprise in Nepal. Personnel engaged in
setting up commercial presence shallpresent proof of the commencement ofbusiness operation within one year of thedate of entry of that person.
Entry for the above-listed persons is
limited to one year period, which may berenewed.
Intra-corporate transferees
Managers, executives and specialists as
defined below who are employees offirms that provide services in Nepal
through a branch, subsidiary or affiliate
established in Nepal and who have beenin the prior employment of their firmoutside Nepal for a period of not less thanone year immediately preceding the dateof their application for admission and
who fall with one of the following
categories:WT/ACC/NPL/16/Add.2
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Sector or Sub-sector Limitations of Market Access Limitations on National Treatment Additional Commitments
(A) Executives and Managers :  persons
within an organization whoprimarily direct the organization or adepartment or sub-division of the
organization, supervise or control
the work of their supervisory,professional or managerialemployees, have the authority tohire and fire or recommend hiring,
firing or other personnel actions
(such as promotion, or leaveauthorization) and exercisediscretionary authority over day-to-day operations.
(B) Specialists: persons within an
organization who possess technical
knowledge at an advanced level ofcontinued expertise and who possesspropriety knowledge of theorganization’s services, researchtechniques or management
techniques. (Specialists may include
but are not limited to members oflicensed professions.)
Entry for the above-listed categories of
intra-corporate transferees is limited to a
3 years initial period that may be
extended for up to 7 years for a totalperiod not to exceed 10 years.
Temporary entry and stay of natural
persons considered to be intra-corporate
transferees may be limited to 15 percentof local employees. This commitmentshall be further liberalized after five yearsfrom the date of accession.WT/ACC/NPL/16/Add.2
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Sector or Sub-sector Limitations of Market Access Limitations on National Treatment Additional Commitments
II. SECTOR SPECIFIC COMMITMENTS
I. BUSINESS SERVICES
1. Professional Services
(a) Legal Services
i. home country law and or third
country law (advisory andrepresentation)
ii. international law (advisory and
representation)(1) None
(2) None(3) None(4) Unbound, except as indicated in the
horizontal section.
Court appearance in Nepalese courts
will be allowed with the permissionof Supreme Court and membershipin the Nepal Bar Association.(1) None
(2) None(2) None(4) Unbound, except as indicated in
horizontal section
(b) Accounting, auditing and book-
keeping services
Accounting and auditing services
i. Financial auditing services
(CPC 86211)
ii. Accounting Review services
(CPC 86212)
iii. Compilation of financial statement
services (CPC 86213)
Bookkeeping services,
except tax return (CPC 86220)(1) None
(2) None
(3) None, except only through
incorporation in Nepal and withmaximum foreign equity capital of51 per cent.
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None
(3) None
(4) Unbound, except as indicated in
horizontal section.Nepal undertakes additional commitments
to adopt WTO Accounting Disciplines
within 5 years from the date of accession.
(d) Architectural Services (CPC 8671) (1) None
(2) None
(3) None, except only through
incorporation in Nepal and withmaximum foreign equity capital of66 per cent.
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None
(3) None
(4) Unbound, except as indicated in
horizontal section.WT/ACC/NPL/16/Add.2
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(e) Engineering services (CPC 8672)
- Engineering design services for the
construction of civil engineering
works (CPC 86724)
- Engineering design services for
industrial processes and production(CPC86725)
- Other engineering services during
the construction and installation
phase (CPC 86727)
- Other engineering services
(CPC 86729)(1) None
(2) None(3) None, except only through
incorporation in Nepal and with
maximum foreign equity capital of
66 per cent.
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal section.
(f) Integrated engineering Services
(CPC 8673)(1) None
(2) None(3) None, except only through
incorporation in Nepal and with
maximum foreign equity capital of
66 per cent.
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal section.
(g) Urban planning and landscape
architectural services (CPC 8674)(1) None
(2) None(3) None, except only through
incorporation in Nepal and with
maximum foreign equity capital of66 per cent.
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal section.
(i) Veterinary services (CPC 932) (1) None
(2) None
(3) None, except only through
incorporation in Nepal and withmaximum foreign equity capital of51 per cent.
(4) Unbound, except as indicated in the
horizontal section.(1)    None
(2) None
(3) None
(4) Unbound, except as indicated in
horizontal section.WT/ACC/NPL/16/Add.2
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Sector or Sub-sector Limitations of Market Access Limitations on National Treatment Additional Commitments
2. Computer and Related Services
(a) Consultation services related to the
installation of computer hardware(CPC 841)
(b) Software implementation services
(CPC 842)
(c) Data processing services (CPC 843)(d) Data base services (CPC 844)(e) Maintenance and repair service of
office machinery and equipmentincluding computers (CPC 845)
(f) Other computer services
- Data preparation services
(8491)
- Other computer services
(CPC 8499)(1) None
(2) None(3) None, except only through
incorporation in Nepal and with
maximum foreign equity capital of
80 per cent.
(4) Unbound, except as indicated in the
horizontal section.(1)   None
(2) None(3) None
(4) Unbound, except as provided under
horizontal section
3. Research and Development Services
(a) R&D services on natural science
- Heat, light, electromagnetism,
astronomy but excluding
atomic energy and relatedmatters (CPC 85101)
- Engineering and technology,
including applied science andtechnology for casting, metal,
machinery, electricity,
communications, vessels,aircrafts, civil engineering,construction, information etc.(CPC 85103)(1) None
(2) None
(3) None, except only through
incorporation in Nepal and withmaximum foreign equity capital of51 per cent.
(4) Unbound, except as indicated in the
horizontal section.(1)   None
(2) None
(3) None
(4) Unbound, except as indicated in
horizontal section.WT/ACC/NPL/16/Add.2
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Sector or Sub-sector Limitations of Market Access Limitations on National Treatment Additional Commitments
5. Rental/Leasing Serv ices without Operators
(e) Other
Leasing and rental services
concerning video tape (CPC83202)(1) None
(2) None(3) None except only through
incorporation in Nepal and with
maximum foreign equity of 51
percent. Foreign equity participationwill be increased to 80 per cent after5 years from the date of accession.
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None(3) None
(4) Unbound, except as indicated in the
horizontal section.
6. Other Business Services
(a) Advertising services (CPC 871) (1) None
(2) None
(3) Unbound until 31 December 2008.
Thereafter none, except onlythrough incorporation in Nepal andwith maximum foreign equitycapital of 67 per cent.
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None
(3) None
(4) Unbound, except as indicated in
horizontal section.
(b) Market research and public opinion
polling services (CPC 864)(1) None
(2) None(3) None, except only through
incorporation in Nepal and withmaximum foreign equity capital of51 per cent.
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal section.
(c) Management consulting service
(CPC 865)(1) None
(2) None(3) None, except only through
incorporation in Nepal and withmaximum foreign equity capital of
51 per cent
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal section.WT/ACC/NPL/16/Add.2
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(e) Technical testing and analysis
services (CPC 8676)(1) None
(2) None(3) None, except only through
incorporation in Nepal and with
maximum foreign equity capital of
51per cent.
(4) Unbound, except as indicated in the
horizontal section.(1)   None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal section.
(h) Services incidental to mining
(CPC 883+5115)(1) None
(2) None(3) None, except only through
incorporation in Nepal and with
maximum foreign equity capital of51 per cent.
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal section.
(m) Related scientific and technical
consulting services (CPC 8675)(1) None
(2) None
(3) None, except only through
incorporation in Nepal and withmaximum foreign equity capital of51 per cent.
(4) Unbound, except as indicated in the
horizontal section.(1)   None
(2) None
(3) None
(4) Unbound, except as indicated in
horizontal section.
(q) Packaging services (CPC 876) (1) None
(2) None
(3) None, except only through
incorporation in Nepal and withmaximum foreign equity capital of51 per cent.
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None
(3) None
(4) Unbound, except as indicated in
horizontal section.
(r) Printing, publishing (CPC 88442) (1) None
(2) None(3) None, except only through
incorporation in Nepal and withmaximum foreign equity capital of51 per cent.
(4) Unbound, except as indicated in the
horizontal section.(1)   None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal section.WT/ACC/NPL/16/Add.2
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(s) Convention Services (CPC 87909) (1) None
(2) None(3) None, except only through
incorporation in Nepal and with
maximum foreign equity capital of
51 per cent.
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal section.
II. COMMUNICATION SERVICES
2. Courier services
- Multi-modal courier services
(CPC 75121)(1) None
(2) None(3) For courier services supplied from a
foreign territory to Nepal or from
Nepal to a foreign territory noneexcept only through incorporation inNepal and with maximum foreignequity capital of 80 per cent.
(4) Unbound, except as indicated in
horizontal section and in accordance
with Nepal’s mode3 commitmentsfor courier services.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal section.
3. Telecommunication Services
Commitments are taken consistent with "Notes for Scheduling Basi c Telecom Services Commitments" (S/GBT/W/2/Rev.1) and Market Ac cess Limitations on Spectrum
Availability" (S/GBT/W/3).
Basic Telecommunications
(a) Local telephone service
(b) Domestic telephone service
(c) International telephone services
(d) Telex service
(e) Domestic and international telegraph
service(1) None
(2) None(3) None, except:
No limitation on number of service
providers will exist on January2009. However, foreignparticipation permitted through ajoint venture with up to 80% equityparticipation.
(4) Unbound, except as indicated in the
horizontal section.  Consultants notavailable in Nepal may enter towork for 90 days.(1) None
(2) None(3) None, except the majority of the
members of the Board of Directors
of a joint venture should beNepalese nationals.
(4) Unbound, except as indicated in
horizontal section.Nepal undertakes additional commitments
as contained in the TelecommunicationReference Paper attached to this Schedule
of specific CommitmentsWT/ACC/NPL/16/Add.2
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Mobile Telecommunications Services (1) None
(2) None(3) None, except:
- By 2004 two mobile operators
will be licensed- No limitation on number ofservice providers will exist onJanuary 2009,  However, foreign
participation permitted through a
joint venture with up to 80% equityparticipation.- Mobile technology will not beprescribed but will be left to thechoice of the operator upon the dateof accession .
(4) Unbound, except as indicated in
horizontal section.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal section.Nepal undertakes additional commitments
as contained in the TelecommunicationReference Paper attached to this Scheduleof specific CommitmentsWT/ACC/NPL/16/Add.2
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Sector or Sub-sector Limitations of Market Access Limitations on National Treatment Additional Commitments
Value-added telecommunications
(a) Internet including e-mail
(b) E.mail
(c) Voice mail
(d) Video text(e) Fax mail
(f) VSAT
(g) Audio Conference(h) Pay phone
(i) Pre-paid calling card
(j) Local, long distance and
international data communication
(k) Radio paging
(l) Trunked mobile(1) None
(2) None(3) None, except:
Foreign participation permitted
through a joint venture with up to80% equity participation.
(4) Unbound, except as indicated in the
horizontal section(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal section.
III. CONSTRUCTION AND RELATED ENGINEERING SERVICES
2. General construction work for civil
engineering (CPC 513)(1) None
(2) None(3) None, except only through
incorporation in Nepal and withmaximum foreign equity capital of
51 per cent. Foreign equity
participation will be increased to 80per cent after 5 years from the dateof accession.
(4) Unbound, except as indicated in
horizontal section(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal sectionWT/ACC/NPL/16/Add.2
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5. Other (CPC 511+515+ 518) (1) None
(2) None(2) None, except only through
incorporation in Nepal and with
maximum foreign equity capital of
51 per cent.
(4) Unbound, except as indicated in
horizontal section.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal section.
IV. DISTRIBUTION SERVICES
1. Commission agent's services
(CPC 621)(1) None
(2) None(3) None, except only through
incorporation in Nepal and with
maximum foreign equity capital of
51 per cent. 
Foreign equity
participation will be increased to
80 per cent after 5 years from the
date of accession.
(4) Unbound, except as indicated in
horizontal section.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal section.
2. Wholesale Services,
except CPC 622441) 2) 3) and 4) Unbound except as
indicated in the horizontal section.
In addition, unbound except untilsuch time that Nepal grants suchrights to any WTO Member in anysubsector, or until Nepal determinesthe types of foreign entities which
may provide these services, or that
Nepal authorizes such rights underits laws and regulations, the supplyof these services; whichever isearlier.1) 2) 3) and 4) Unbound except as
indicated in the horizontal section.
In addition, unbound except untilsuch time that Nepal grants suchrights to any WTO Member in anysubsector, or until Nepal determinesthe types of foreign entities which
may provide these services, or that
Nepal authorizes such rights underits laws and regulations, the supplyof these services; whichever isearlier.
Wholesale trade services of radio andtelevision equipment, musical
instruments, and records, music scores
and tapes. (CPC 62244)(1) None
(2) None
(3) None except only through
incorporation in Nepal and withmaximum foreign equity of 80percent
(4) Unbound, except as indicated in the
horizontal section(1) None
(2) None
(3) None
(4) Unbound, except as indicated in the
horizontal section.WT/ACC/NPL/16/Add.2
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3. Retailing Services,
except CPC 632341) 2) 3) and 4) Unbound except as
indicated in the horizontal section.In addition, unbound except untilsuch time that Nepal grants such
rights to any WTO Member in any
subsector, or until Nepal determinesthe types of foreign entities whichmay provide these services, or thatNepal authorizes  such rights under
its laws and regulations, the supply
of these services; whichever isearlier.1) 2) 3) and 4) Unbound except as
indicated in the horizontal section.In addition, unbound except untilsuch time that Nepal grants such
rights to any WTO Member in any
subsector, or until Nepal determinesthe types of foreign entities whichmay provide these services, or thatNepal authorizes such rights under
its laws and regulations, the supply
of these services; whichever isearlier.
Retailing Services
Retail sales of radio and television
equipment, musical instruments, andrecords, music scores and tapes.
(CPC 63234)(1) None
(2) None(3) None except only through
incorporation in Nepal and withmaximum foreign equity of 80
percent
(4) Unbound except as indicated in the
horizontal section(1) None
(2) None(3) None
(4) Unbound except as indicated in the
horizontal section.
4. Franchising (CPC 8929) (1) None
(2) None(3) None, except only through
incorporation in Nepal and with
maximum foreign equity capital of
51 per cent.
(4) Unbound, except as indicated in
horizontal section.(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal section.WT/ACC/NPL/16/Add.2
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V. EDUCATIONAL SERVICES
3. Higher Education services
(CPC 923)
4. Adult Education Services
(CPC 924)
5. Other Education
(CPC 929)(1) None
(2) None(3) None, except only through
incorporation in Nepal and with
maximum foreign equity capital of
51 per cent and except for educationservices funded from state resources.Foreign equity participation will beincreased to 80 per cent after 5 yearsfrom the date of accession
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None(3) None, except for education services
funded from state resources.
(4) Unbound, except as indicated in
horizontal section.
VI. ENVIRONMENTAL SERVICES
1. Sewage Services (CPC 9401)2. Refuse disposal services
(CPC 9402)
3. Sanitation and similar Services
(CPC 9403)(1) None
(2) None(3) None, except only through
incorporation in Nepal and withmaximum foreign equity capital of
51 per cent. Foreign equity
participation will be increased to 80per cent after 5 years from the dateof accession
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal section.WT/ACC/NPL/16/Add.2
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Sector or Sub-sector Limitations of Market Access Limitations on National Treatment Additional Commitments
VII. FINANCIAL SERVICES
General Conditions
The commitments in financial services are made in accordance with  the General Agreement on Trade in Services and the Annex on F inancial Services. All the commitments are
subject to entry requirements, domestic laws, rules and regulations and the terms and conditions of the Nepal Rastra Bank (the central bank of Nepal), Insurance Board and any other
competent authority in Nepal, as the case may be, which are consistent with Article VI of the GATS and paragraph 2 of the Annex  on Financial Services.
The commitments in Insurance Services are given to the nationals and financial institutions of the Members whose law and polici es do not bar the provision of similar
commitments to the Nepalese nationals and financial institutions. No such limitation will exist as of 1 March 2004.
Financial Services in the form of operations identified below in the Schedule can be carried out in Nepal through a locally inc orporated company. Branches will be allowed for
insurance services and wholesale banking as of 1 January 2010. Only a licensed commercial bank, a licensed specialized bank or a registered finance company may accept deposits.
Only a licensed commercial bank may accept deposits, which are repaya ble upon demand. Only financial institutions with rating o f at least 'B' by Credit Rating Agency e.g. MOODI,
Standard & Poor can have commercial presence in Nepal. The total foreign shareholding in any institution providing financial se rvices is limited to 67 per cent of the issued share
capital. It has, nevertheless, been bound for the existing foreign financial service providers as to their scope of operation a nd equity structure. The shares held by foreign nationals
and foreign financial institutions in their locally incorporated companies are not transferable without the prior written appro val of the Nepal Rastra Bank (the central bank) or any
other competent authority as the case may be. Representative offices may not be engaged in commercial business. The members of the Board of Directors of a financial service
supplier will be in proportion to equity repres entation of that financial service supplier.
1. Insurance and Insurance Related Services
(i) Direct Insurance
(a) Life (1) None
(2) None(3) None, except As indicated in general
conditions.
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None(3) None, except as indicated in general
conditions and horizontal section.
(4) Unbound, except as indicated in
horizontal section.
(b) Non-life (1) None
(2) None
(3) None, except as indicated in general
conditions.
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None
(3) None, except as indicated in general
conditions and horizontal section.
(4) Unbound, except as indicated in
horizontal section.
(ii) Re-insurance and Retrocession (1) and (2) None except, mandatory
reinsurance up to USD 25,000 must
be placed with domestic insurance
company until 31 December 2007.
(3) Unbound until 31 December 2007;
thereafter none, except as indicated inthe general conditions.
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None
(3) None
(4) Unbound, except as indicated in the
horizontal section.WT/ACC/NPL/16/Add.2
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(iv) Services Auxiliary to Insurance
Insurance broking and agency services
(CPC 81401)(1) None
(2) None(3) None, except as indicated in general
condition
(4) Unbound, except as indicated in the
horizontal section(1) None
(2) None(3) None
(4) Unbound except as indicated in the
horizontal section.
2. Banking and Other Financial Services
(a) Acceptance of deposits and other
repayable funds from the public(1) Unbound, except for (k) provision
and transfer of financial information,and financial data processing andrelated software by suppliers of otherfinancial services and (l) advisory
services on all the activities listed
above were none
(2) Unbound, except for (k) provision
and transfer of financial information,and financial data processing andrelated software by suppliers of other
financial services and (l) advisory
services on all the activities listedabove were none
(3) None, except as indicated in general
conditions.For derivative products under sub-
sector ‘f’ and settlement of and
clearing services for financial assets,including securities, derivativeproducts, and other negotiableinstruments under ‘j’ unbound until
HMG/Nepal determines what types
of entities can conduct these services,the related laws and regulations areestablished and such business isauthorised by the government orother designated authority.(1) None
(2) None
(3) None, except as specified in the
general conditions and horizontalsectionWT/ACC/NPL/16/Add.2
Page 18Modes of supply    (1) Cross-Border supply   (2) Consumption abro ad    (3) Commercial Presence    (4) Presence of natural perso ns
Sector or Sub-sector Limitations of Market Access Limitations on National Treatment Additional Commitments
(b) Lending of all types, including, inter-
alia, consumer credit, mortgagecredit, factoring and financing ofcommercial transactions.
(c) Financial leasing
(d) All payment and money transmission
services
(e) Guarantees and commitments(f) Trading for own account or for
account of customers, whether on an
exchange, an over-the-counter marketor otherwise, the following:
- money-market instruments
(cheques, bills, certificates of
deposits, etc.)
- foreign exchange- derivative products including,
but not limited to, futures andoptions
- exchange rate and interest rate
instruments, other than swap.
- transferable securities- other negotiable instruments
and financial assets, includingbullion.
(g) Participation in issues of all kinds of
securities, including under-writingand placement as agent (whetherpublicly or privately) and provisionof service – related to such issues.
(h) Money broking
(i) Asset management, such as cash or
portfolio management, all forms ofcollective investment management,pension fund management, custodialdepository and trust services.
(j) Settlement of and clearing services
for financial assets, including(4) Unbound, except as specified in the
horizontal section.(4) Unbound, except as indicated in
horizontal section.WT/ACC/NPL/16/Add.2
Page 19Modes of supply    (1) Cross-Border supply   (2) Consumption abro ad    (3) Commercial Presence    (4) Presence of natural perso ns
Sector or Sub-sector Limitations of Market Access Limitations on National Treatment Additional Commitments
securities, derivative products, and
other negotiable instruments
(k) Provision and transfer of financial
information, and financial data
processing and related software by
providers of other financial services.
(l) Advisory services on all the activities
listed above
VIII. HEALTH RELATED AND SOCIAL SERVICES
1. Hospital Services (CPC 9311) and
direct ownership and managementby contract of such facilities on a
‘for fee’ basis.(1) None
(2) None(3) None, except only through
incorporation in Nepal and with
maximum foreign equity capital of51 per cent.
(4) Unbound, except as indicated in the
horizontal section.
Medical Experts can work with the
permission of Nepal MedicalCouncil maximum of one year.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal section.
IX. TOURISM AND TRAVEL RELATED SERVICES
1. Tourism and restaurants
Hotel, lodging services (CPC 6411)(star hotels only);  Gradedrestaurants (CPC 6421-6423)**
2. Travel agency and tour operator
(CPC 7471)(1) None
(2) None(3) None, except only through
incorporation in Nepal and withmaximum foreign equity capital of
51 per cent for travel agency and
tour operator (CPC 7471) and 80 percent for hotel, lodging services(CPC 6411)  (star hotels only), andgraded restaurants (CPC 6421-
6423)**.
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal section.WT/ACC/NPL/16/Add.2
Page 20Modes of supply    (1) Cross-Border supply   (2) Consumption abro ad    (3) Commercial Presence    (4) Presence of natural perso ns
Sector or Sub-sector Limitations of Market Access Limitations on National Treatment Additional Commitments
X. RECREATIONAL, CULTURAL AND SPORTING SERVICES
5. Other entertainment services n.e.c
(CPC 96199):
- Cinema theatre services including
cinema projection services(1) None
(2) None.(3) None, except only through
incorporation in Nepal and with
maximum foreign equity of 51
percent and minimum foreigninvestment of US $1 million.Foreign equity participation will beincreased to 80 per cent after 5 yearsfrom the date of accession.
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal section.
XI. TRANSPORT SERVICES
3. Air Transport Services
(d) Maintenance and repair of aircraft
(CPC 8868)(1) None
(2) None(3) None, except only through
incorporation in Nepal and withmaximum foreign equity capital of51 per cent. Foreign equity
participation will be increased to 80
per cent after 5 years from the dateof accession
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None(3) None
(4) Unbound, except as indicated in the
horizontal section.
Computer reservation system ( as definedin the Annex in Air Transport )(1) None
(2) None
(3) None, except only through
incorporation in Nepal and withmaximum foreign equity capital of51 per cent. Foreign equityparticipation will be increased to 80per cent after 5 years from the date
of accession
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None
(3) None
(4) Unbound, except as indicated in the
horizontal section.WT/ACC/NPL/16/Add.2
Page 21Modes of supply    (1) Cross-Border supply   (2) Consumption abro ad    (3) Commercial Presence    (4) Presence of natural perso ns
Sector or Sub-sector Limitations of Market Access Limitations on National Treatment Additional Commitments
7.  Pipeline Transport Services
(a) Transportation of Fuels (CPC 713(1)
(b) Transportation of Other Goods
(CPC 7139)(1) None
(2) None(3) None, except only through
incorporation in Nepal and with
maximum foreign equity capital of
51 per cent.
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None(3) None
(4) Unbound, except as indicated in the
horizontal section.
8. Services Auxiliary to All Modes of Supply
(a) Storage and warehouse services
CPC 742(1) None
(2) None(3) None, except only through
incorporation in Nepal and with
maximum foreign equity capital of
51 per cent. Foreign equityparticipation will be increased to 80per cent after 5 years from the dateof accession
(4) Unbound, except as indicated in the
horizontal section.(1) None
(2) None(3) None
(4) Unbound, except as indicated in the
horizontal section.WT/ACC/NPL/16/Add.2
Page 22
TELECOMMUNICATION REFERENCE PAPER
Scope
The following are definitions and principles on the regulatory framework for the basictelecommunications services.
Definitions
Users mean service consumers and service suppliers.
Essential facilities mean facilities of a public telecommunications transport network or service that
a) are exclusively or predominantly provided by a single or limited number of suppliers;
and
b) cannot feasible be economically or technically substituted in order to provide a
service.
A major supplier is a supplier which has the ability to materially affect the terms of participation
(having regard to price and supply) in the relevant market for basic telecommunications services as a
result of:
a) control over essential facilities; or
b) use of its position in the market
1. Competitive safeguards
1.1 Prevention of anti-competitive practices in telecommunications
Appropriate measures shall be maintained for the purpose of preventing suppliers who, along
or together, are major suppliers from engaging in or continuing anti-competitive practices.
1.2 Safeguards
The anti-competitive practices referred to above shall include in particular:a) engaging in anti-competitive cross-subsidization;
b) using information obtained from competitors with anti-competitive results; and
c) not making available to other services suppliers on a timely basis technical
information about essential facilities and commercially relevant information which
are necessary for them to provide services.
2. Interconnection
2.1 This section applies to linking with suppliers providing public telecommunications transport
networks or services in order to allow the users of one supplier to communicate with users ofanother supplier and to access services provided by another supplier, where specific
commitments are undertaken.WT/ACC/NPL/16/Add.2
Page 23
2.2 Interconnection to be ensured
Interconnection with a major supplier will be ensured at any technically feasible point in the
network.  Such interconnection is provided:
a) under non-discriminatory terms, conditions (including technical standards and
specifications) and rates and of a quality no less favourable than that provided for its
own like services or for like services of non-affiliated service suppliers or for its
subsidiaries or other affiliates;
b) in a timely fashion, on terms, conditions (including technical standards and
specifications) and cost-oriented rates that are transparent, reasonable, having regard
to economic feasibility, and sufficiently unbundled so that the supplier need not pay
for network components or facilities that it does not require for the service to be
provided; and
c) upon request, at points in addition to the network termination points offered to the
majority of users, subject to charges that reflect the cost of construction of necessary
additional facilities.
2.3 Public availability of the procedures for interconnection negotiations
The procedures applicable for interconnection to a major supplier will be made publicly
available.
2.4 Transparency of interconnection arrangements
It is ensured that a major supplier will make publicly available either its interconnection
agreements or a reference interconnection offer.
2.5 Interconnection: dispute settlement
A service supplier requesting interconnection with a major supplier will have recourse, either:
a) at any time orb) after a reasonable period of time which has been made publicly known.c) to an independent domestic body, which may be a regulatory body as referred to in
paragraph 5 below, to resolve disputes regarding appropriate terms, conditions and
rates for interconnection within a reasonable period of time, to the extent that these
have not been established previously.
3. Universal service
Any Member has the right to define the kind of universal service obligation it wishes to
maintain.  Such obligations will not be regarded  as anti-competitive per se, provided they are
administered in a transparent, non-discriminatory and competitively neutral manner and are
not more burdensome that necessary for the kind of universal service defined by the Member.WT/ACC/NPL/16/Add.2
Page 24
4. Public availability of licensing criteria
Where a license is required, the following will be made publicly available:
a) all the licensing criteria and the period of time normally required to reach a decision
concerning an applicable for a license and
b) the terms and conditions of individual licenses.The reasons for the denial of a license will be made known to the applicant upon request.
5. Independent regulators
The regulatory body is separate from, and not accountable to, any supplier of basic
telecommunications services.  The decisions of and the procedures used by regulators shall be
impartial with respect to all market participants.
6. Allocation and use of scarce resources
Any procedures for the allocation and use of scarce resources, including frequencies, number
and rights of way, will be carried out in an objective, timely, transparent and non-
discriminatory manner.  The current state of allocated frequency bands will be made publiclyavailable, but detailed identification of freque ncies allocated for specific government uses is
not required.WT/ACC/NPL/16/Add.2
Page 25Lists of Article II MFN Exemptions
Sector or Sub-SectorDescription of measure
indicating its inconsistency with
Article IICountries to which the measure
appliesIntended DurationConditions creating the need for
the exemption
All Sectors Allocation of non-convertible
currency effected by commercialbanks without involvement ofCentral Bank.India Indefinite To facilitate border traffic and
regional integration byproviding for full currentaccount convertibility ofNepalese rupees into Indian
rupees
Audiovisual Services-
Production and distribution ofmotion picture and televisionprogrammesMeasures based upon co-
production agreements ofaudiovisual works, which conferNational Treatment  toaudiovisual works covered bythese agreements.Countries with which such
bilateral or multilateralagreements are in force, now orin the future. Subject to the duration of the
agreement concerned.The aim of these agreements is
to promote cultural linksbetween the countriesconcerned.
Tourism Higher allocation of convertible
currency for travel purposes.All OECD countries. Indefinite To reflect higher board and
lodging costs in countries
mentioned
__________