NRNs based in the US keen to set up factories within Bhairahawa SEZ
Importers of Nepali garments in the United States have expressed interest to set up a factory to manufacture travel goods and other items in Bhairahawa Special Economic Zone (SEZ). The traders are eyeing to tap US market as the world's largest economy has provided duty-free market access to 66 Nepali products that include luggage, handbags, pocket goods, travel bags, carpets, shawls, blankets and headgears, among others, on top of regular facility of generalised system of preference (GSP).
The single country trade preference provided in 2015 through an exclusive act named ‘Trade Facilitation and Trade Enforcement Act' will be valid till 2025.
Rishi Dhakal, a trader of Nepali origin now based in California of the US, and a few other non-resident Nepalis (NRNs) have expressed interest to set up factory in SEZ. Dhakal's Rising International Inc is among the largest overseas importers of Nepali readymade garments since long. The government had appointed Dhakal as honorary consul of Nepal to the United States in 2012.
Madhu Kumar Marasini, consul general of Nepal in New York, said the consulate office has been facilitating US traders of Nepali origin to set up factories in Nepal to capitalise on the duty-free, quota-free facility of the US government granted exclusively for Nepal to support sustained growth of the country considering how the economy emerged from the decade-long conflict and political transition and was further shattered by the devastating earthquake of April 25, 2015.
Those who establish their factory within SEZ have to export 75 per cent of their production and it is realistic for US-based traders to export the goods produced in their factory in SEZ.
Chandika Prasad Bhatta, executive director of SEZ Authority Nepal, said the SEZ has called for request for proposal from other firms interested to set up industries in Bhairahawa SEZ. Altogether 19 industries have booked 55 plots, out of the total 69 plots in Bhairahawa SEZ. The remaining plots will be sold to interested and eligible firms to set up industries.
Currently, around $8 million worth of 66 items granted duty-free facility are being exported to the US market every year. However, there are chances to raise the export of these items that have obtained duty-free facility to the worlds' largest economy.
