4. Policy and strategy

4.1 Role of government and private sector and enhancing commercial capacity

4.1.1 Policy

1) Private sector-led export business The role of protector, regulator and facilitator will be played by the government to make it competitive by sectoral and objective diversification. 2) Financial and monetary, foreign investment, industrial sector, tourism, agriculture, forest, physical infrastructure, etc. policies will be amended to harmonize with the commercial policy. 3) The base of exports will be broadened by establishing lateral, forward and parallel interconnections between the above-mentioned sectoral policies. 4) Bilateral and regional agreements will be made to increase the supply of goods in quantity and quality according to the demand of the international market to recognize Nepali quality abroad. 5) Legal arrangements will be made to protect the domestic industry in accordance with multilateral trade arrangements. 6) Foreign investors and non-resident Nepalis will be encouraged to establish international production networks through outsourced services and production to take advantage of cost-effective and quality products available in the country and which can be developed in the future. 7) Export companies will be encouraged to open contact offices or sales offices abroad and foreign importer companies will be encouraged to establish contact offices to promote Nepali services and products. 8) In order to protect the rights and interests of consumers, to develop a clean competitive environment in the domestic and international markets, effective implementation of the Competition Act and contemporary reforms in the Consumer Protection Act will be carried out. Also, laws related to internal trade will be formulated and implemented. 9) The capacity of private, non-governmental and research organizations will be enhanced for the promotion of export of goods and services.Recognition and reward systems will be encouraged. 2) Export trade will be made more competitive and effective by expanding the existing network between government agencies and private sector trade associations and trade associations that are directly or indirectly related to exports. 3) Procedures will be made transparent and organized in relation to the agency issuing the certificate of origin, the recommending agency, the service fee and the agency that monitors its use. 4) The policy, legal and procedural arrangements related to trade cooperation will be further modified and made in line with the international trade system. 5) The Ministry of Foreign Affairs and the Nepali missions abroad will be mobilized effectively in various aspects of economic diplomacy, investment potential and export promotion. 6) Arrangements will be made to appoint consuls in the major importer countries of Nepali goods and in the Nepali missions in the countries that have more trade potential with Nepal. 7) For the services provided from the main customs points, the units with the infrastructure of food, quality, agriculture, forestry, archeology and other agencies will be provided in the customs offices. 8) In order to facilitate export, administrative, technical and private sector agencies will be provided with integrated services in coordination with the Trade Promotion Foundation. 9) A capacity development program of objective organizations, bilateral chambers and representative organizations of industry professionals will be conducted. 10) The private sector, non-governmental organizations, experts and research organizations will be involved in the policy-making process related to business. 4.24.2 Reducing transaction costs through procedural simplification and institutional strengthening. >

1) In order to reduce transaction costs, taxes and duties on raw materials used in export products will be refunded in a simple, quick and easy manner. 2) Collection, processing and communication of necessary information for the purpose of business promotion through modern information system management.It will be made effective by me. 3) Uniformity will be brought in the procedures, standards and policy rules related to customs, transportation and quality certification of Nepal in order to be consistent with the member countries of SAARC 9CBRC and trade partner countries. 4) The services provided by the dry port will be made effective to increase the competitiveness of the business by making transportation convenient and less expensive. 5) In order to reduce the cost of Nepal's international trade, an agreement will be made to use the appropriate transportation route after studying the physical infrastructure, multimodal facilities, transportation facilities and costs of alternative transportation routes of transit countries and neighboring countries.
(6) In addition to adopting cost-effective measures at the production level, a program will be formulated and implemented to eliminate supply difficulties. will be done. 2) By adopting the customs evaluation system in accordance with the international trade system, the effectiveness will be increased by simplifying the customs process. 3) In order to maintain the quality of export goods, the process of determining the quality according to prevailing internal and international standards will be started. Establishing the necessary foundation for quality inspection, certification and monitoring and developing information flow and skilled manpower will be made in accordance with international standards. 4) In order to make transportation services more effective, warehouse facilities in the border customs areas, increase in the flow of information related to customs, and the services of transportation and logistics will be expanded. 5) Weighing machines, X-ray machines, laboratories, computer data management and cold storage will be arranged at major customs offices at the border and international airports. 6) Renewal of exporting firms, processing of customs duties on raw materials imported by export industries, refund of customs duties on exported goods, value added tax mattersYes, the system of taking samples for export orders will be made simple, export-friendly, fast and cost-effective. 7) More financial, human and other necessary resources will be provided to the trade promotion establishment to make the collection, processing and distribution of market information necessary for export promotion effective. 8) The export of all goods except items of archaeological and religious importance, explosives, items related to environment and wildlife protection, and items prohibited by various treaties and conventions with which Nepal is a party, will be opened. 4.34.3 Development of policy, institutional and physical structure related to foreign trade

4.3.1 Policy

1) Existing export and import control to develop export as a cornerstone of economic development The Act will be replaced and a new Act will be formulated. 2) The capacity of government agencies to play a direct role in international trade will be enhanced. 3) Construction of physical infrastructure such as dry port, cold storage, container freight station, road etc. will be done in accordance with international standards. Also, the existing structure will be upgraded. 4) Initiatives will be taken for the development and improvement of physical infrastructure to get proper benefits from land trade between neighboring countries. 5) Efforts will be made to include international trade, regional trade agreements and their main provisions, export promotion etc. in the commerce and economics courses of the universities. 6) The contribution of the private sector will also be determined and support will be given to organize national and international trade fairs and to participate in fairs. The capacity of government and private sector manpower will be enhanced regarding 9QQ, sanitary and phytosanitary 9QQ and international quality and quality certification of goods, customs procedures, etc. 2) UtHowever, a study will be conducted to connect the trade points to the south by railways and Farakila highways, and the existing north-south roads will be improved and upgraded. 3) Initiatives will be taken to advance the sub-regional development concept with international level transport routes connecting India, Nepal, Bangladesh and Bhutan in South Asia in consultation with related parties. 4) Infrastructure will be built at the main customs points identified for the purpose of developing Nepal as a transit point in the bilateral land trade between India and China. 5) Efforts will be made to streamline the cargo complex of Kathmandu International Airport and increase the number of flights of cargo planes from other countries. 6) Arrangements will be made to build a dry port at other possible locations including Nepalganj, Rasuwa and Tatopani. 7) With the aim of promoting industrial and foreign trade, an international level exhibition place will be built in Kathmandu with the participation of the private sector as well. 4.4 Preparing a policy and institutional structure for protection of intellectual property rights and enhancement of service export

4.4.1 Policy 1) An action plan will be created and implemented for the protection of intellectual property rights and the expansion of service trade. 2) Legal arrangements will be made for the protection of Nepalese goods in the international market in accordance with bilateral, regional and multilateral trade agreements. 4.4.2 Tactics 1) To increase access to the international market of goods and services, diplomatic missions abroad will be activated to act as diplomatic missions. 2) It will help to protect intellectual property rights in the international market of major exports. Under the Act, initiatives will be taken to maintain the rights related to geographical indication of export goods such as handicrafts, tea, coffee, carpets, pashmina, honey etc. 3) Under the leadership of the Ministry of Commerce and Supply, the Ministries of Industry, Agriculture, Forestry, Culture and Science and Technology, and the Federation of Nepalese Industries and Commerce and its affiliates.A committee will be formed with the participation of existing associations and strategies will be decided on various aspects of intellectual property. 4) Export of services in accordance with the provisions of the World Trade Organization and regional trade agreements, and especially for the expansion of service trade under the fourth mode, priority will be given to prepare skilled manpower. 5) In order to play an effective role for the development of exportable goods and markets, an autonomous organization named Trade Promotion Foundation with the necessary organizational structure will be established and the current Trade and Export Promotion Center will be housed within the same organization. 6) Nepali traditional skills, skills, product production process and intellectual property rights of produced products will be protected. 4.5 Arranging more incentives for export-oriented industries

4.5.1 Policy 1) A simple procedure will be adopted for the import of raw materials, industrial machinery, etc. needed by export-oriented industries. 2) The necessary program will be conducted to produce domestically available raw materials within the country. 3) To make the implementation of the commercial policy effective, there will be coordination between the sectoral policies such as agriculture and forestry. 4) The export of primary commodities which are being exported without processing will be encouraged by increasing the price. 5) Customs duty, excise duty and value added tax will not be levied on exports except export service charge. 6) The private and cooperative sector will be encouraged to establish export promotion houses. 7) It will be implemented to increase the flow of financial instruments in exports. 8) Taking into account the sensitivity of the export industry, special measures will be taken with the consent of the concerned parties to prevent activities like lockouts and strikes. 9) Arrangements will be made to provide land on lease for commercial cultivation of forest products such as tea, coffee, fruits, herbs, spices, rittha, timur, which take a long time to produce.

4.5.2 Strategy 1) Handicrafts, Assist in bringing and storing herbs, honey, tea, milk, fish, meat, vegetables and other semi-processed items to the processing center.With the involvement of the private sector and the cooperative sector, the Commodity Development Fund will be established. 2) An integrated technical organization will be established in collaboration with the private sector to improve the quality of major export items and to develop and diversify products. 3) In the import of raw materials, auxiliary raw materials, packing materials and secondary goods used for the production of export goods, the facility of bank guarantee will be provided. 4) Taxes and duties on raw materials or auxiliary raw materials imported or purchased locally by the exporting industry will be returned to the exporter based on the export volume. 5) For export promotion, it will be encouraged to establish and operate export promotion houses as cooperative organizations or private companies. In this way, special attention will be paid to maintain regional balance in economic development while establishing export promotion house. 6) After exporting the goods purchased by the export industry in agreement with the local industry, an arrangement will be made to return the value added tax and excise duty to the manufacturing company based on the export quantity. 7) A commodity development program will be conducted to export the main export items – ready-made garments, carpets and handicrafts. In addition, a program will be conducted to increase the export of tea, coffee, vegetable seeds, herbs and agricultural and dairy products and non-timber forest products. In addition, a special program will be conducted to identify and promote more new items for export. 8) Exported goods and raw materials needed for their production will not be charged any kind of duty while transporting within the country. 4.6 To expand the market by using bilateral, regional and multilateral trade enhancement opportunities

4.6.1 Policy 1) To expand the access of Nepal's export trade to the international market with countries with relatively greater trade potential including the US and the European Union. and Free Trade Areas with additional regional trade organizationsEfforts will be made to make agreements related to trade.

2) Cooperation with other countries with similar trade interests will be made to utilize the opportunities provided by bilateral, regional and multilateral trade agreements/agreements. 3) As an underdeveloped country, especially a landlocked country, efforts will be made to make maximum use of the facilities provided by bilateral, regional and multilateral trade treaties/agreements. 4.6.2 Tactics 1) A permanent trade policy analysis mechanism will be established with the participation of private, government and experts to reach a conclusion about the trend, current and future direction of international trade and the policy steps to be taken by Nepal in that context. 2) Trade Promotion Foundation will be developed as a resource center in international trade relations and arrangements will be made to disseminate information about the challenges and opportunities arising from bilateral, regional and multilateral trade treaties/agreements and their provisions. 4.7 Establishing special economic zones for export promotion 4.7.1 Policy 1) Export processing zones and special economic zones with physical infrastructure will be established to promote exports. 2) Laws with flexible labor policies will be brought to the industries established in special economic zones, including more facilities and concessions.

2) The private sector will be encouraged to establish industries of the nature of providing raw and semi-processed goods to the export industries in the areas around the export processing zone under construction in Bhairahawa and the proposed Birgunj Special Economic Zone. 3) Initiatives will be taken to utilize the industrial areas in Rajviraj, Butwal and Nepalganj which have not been effectively utilized as objective special economic zones. 4) Potential of northern and southern parts of the country while developing Nepal as a transit pointStudies will be conducted for the establishment of Special Economic Zones in places. 5) An integrated directive on import, processing, value addition, export, internal sales, tax duties will be implemented for special economic zones. 6) Support will be provided to increase the business capacity of bodies such as boards and committees formed for commodity development programs. 4.8 Development of employable skills and entrepreneurship in the commercial sector 4.8.1 Policy 1) Emphasis will be placed on developing entrepreneurship, employable skills and enhancing managerial capacity to improve the living standards of the people by creating income and employment opportunities in the commercial sector. 2) A program will be conducted to increase the competitiveness of major export items and increase export as well as employment opportunities. 4.8.2 Strategy 1) The export promotion fund will be used to adopt new technology and improve the production process in industries that produce export goods based on indigenous raw materials. 2) Utilizing the opportunity of diversity in agricultural products, support will be provided in packing, storing and certification to make the production and processing of such items as per international demand. 3) Contract and cooperative farming system will be encouraged to promote production and market on a large scale through commercial farming by attracting investment in exportable agricultural products. 4) Entrepreneurship and skill development training programs will be conducted with the participation of the private sector to promote export trade. 5) Necessary cooperation will be done with educational institutions to prepare skilled and efficient manpower in the field of foreign trade. 4.9 Increasing income and employment opportunities by promoting service trade 4.9.1 Policy 1) Special areas of service trade will be identified and programs for their promotion will be conducted. 2) To make the service business easy, simple and effective, an institutional mechanism will be created and procedural simplification arrangements will be made. 3) The private sector will be encouraged to play a leading role in the field of service trade. 4.9.2 Strategy 1) Tourism, education, selfService areas such as real estate and information technology will be developed and promoted as special service areas. 2) Coordination will be done with regional bodies for the promotion of special service areas. 3) The arrangement of special service areas will be reviewed so that services can be delivered according to market demand. 4) For the promotion of service trade, a separate service trade promotion council will be formed under the Ministry of Commerce and Supply with the participation of the private sector. The council will play the role of facilitator and catalyst for the promotion of service trade. 5) For the promotion of service trade, existing laws will be amended through the relevant ministries and new laws will be formulated as needed. 6) Domestic and foreign resources will be mobilized as needed to encourage the private sector in the promotion of the service trade sector. 4.10 Development of Special Areas 4.10.1 Policy 1) Identify and develop special areas with the participation of local bodies to produce exportable handicrafts using community-based skills and expertise. Assistance will be provided for quality improvement. 2) The role of cooperative organizations or export trading houses to be established and operated with the participation of local bodies will be ensured. Assistance will be provided. 2) Emphasis will be placed on the promotion of sectors such as agriculture and non-timber forest products to create employment and income-earning opportunities in rural areas. It will be arranged that no local taxes and duties will be levied on the transportation of products from such areas. 3) To encourage export business houses to increase the sale of handicrafts to tourists and arrange permanent exhibition and sales rooms through the Tourism Development Board in the main cities where tourists arrive. 4) Industrial village management and managementLocal bodies, cooperative organizations and export business houses will be involved in the operation. 5) Cooperative organizations will be encouraged in the export of agricultural products, forest products, home industry products, Ayurvedic products. 4.11 Identification, selection, production and trade promotion of new items of comparative advantage for export 4.11.1 Policy 1) A special integrated program will be implemented for identification, selection and production of items of comparative advantage and international market access. 2) It will be encouraged to increase the production capacity and quality of established export items. Will be done. 2) Support from the Export Promotion Fund will be provided with the participation of the private sector in order to bring export goods based on agriculture, forest products, handicrafts and indigenous raw materials from the production site to the international market. 3) The productivity of the agricultural sector will be increased through the supply of irrigation, agricultural machinery, fertilizers, seeds, advanced breeds of livestock, and emphasis will be placed on commercial agriculture, livestock and non-timber forestry products. 4) The value chain of export products, cost effectiveness and quality will be improved. 5) The capacity of the existing institutions will be enhanced to identify and promote new exportable goods as per the demand of the world market. 4.12 Linking the export-oriented industry with the domestic market 4.12.1 Policy and tactics 1) The sustainable development of the industry will be created by creating an environment where part of the goods and services produced by the industry for the purpose of export are also consumed in the domestic market. 2) It will be arranged that the industries established in the export processing sector will be allowed to sell their products in the domestic market in a specified quantity. 3) Government agencies will be encouraged to increase domestic consumption of domestically produced goods. 4.13 Encouraging the expansion and export of goods or services produced for domestic consumption 4.13.1 Policy and strategy 1) DomesticIt will be encouraged to improve the production and productivity and quality of goods or services produced in 2) Prospective markets for such goods or services will be explored to encourage exports. 3) Emphasis will be placed on transportation and infrastructure development to facilitate the market access of manufactured goods or services.