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Nepali exporters seek GSP facility for Pashmina
Jan '12
In view of the forthcoming Nepal-US Council on Trade and Investment (NUSCTI) meeting under the Trade and Investment Framework Agreement (TIFA), the producer-cum-exporters of Pashmina from Nepal have intensified their efforts to lobby with the Government to earn Generalized System of Preference (GSP).

The meeting is slated to take place in Kathmandu during March this year.

The Nepali Pashmina exporters are already working to promote Chyangra Pashmina, an exclusive trademark of Nepali Pashmina products. However, the heavy customs duty is causing the Nepali Pashmina items to lose their competitive edge in the US market.

The exporters have urged the Ministry of Commerce and Supplies (MoCS) to intensify its diplomatic efforts to seek the GSP facility for Nepali Pashmina, which would earn duty-free access for these goods to the US market.

Presently, the US is subjecting Pashmina imports from Nepal to customs duty varying between 7 to 21 percent. Some Pashmina products are presently placed in the category of readymade garments (RMG), which are subjected to a custom duty of 17 percent.

In 2010, the Garment Association of Nepal (GAN), urged the US Senate through a petition, to add 11 more items, including Nepali Pashmina and RMG to the list of Nepali items enjoying duty-free access to the US under the GSP.

Meanwhile, there has been a considerable fall in Nepal's Pashmina exports to the US over the past few years. During last fiscal, Nepal exported Pashmina worth Nepali Rs. 300 million, much below 1999-2000's exports worth Nepali Rs. 1 billion.

Fibre2fashion News Desk - India

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