Benefits of Sourcing from Nepal
Zero Tariffs Until 2025
Take advantage of duty-free access to the US market through Nepal's unique trade agreement, significantly reducing your import costs.
Cost-Effective Manufacturing
Benefit from competitive labor costs and efficient production processes while maintaining high-quality standards.
Strategic Location
Nepal's proximity to major Asian manufacturing hubs ensures efficient logistics and supply chain integration.
Growing Manufacturing Base
Access a diverse range of manufacturing capabilities across textiles, handicrafts, leather goods, and more.
Quality Assurance
Strict quality control measures and adherence to international standards ensure consistent product quality.
Quick Turnaround
Efficient production processes and established logistics networks enable faster time-to-market.
Competitive Advantages
- •Lower operational costs compared to traditional manufacturing countries
- •Skilled workforce with expertise in traditional and modern manufacturing techniques
- •Strong intellectual property protection and business-friendly policies
- •Growing infrastructure and modernizing production facilities
Side-by-Side Cost Comparison (Per 40-ft Container)
| Cost Component | China (40-ft Container) | Nepal (40-ft Container) |
|---|---|---|
| Base Import Duty (MFN rate on textile) | ~16% of cargo value (e.g. $16,000 on $100k cargo) No special reduction | 0% (duty-free) if eligible under NTPP/GSP Otherwise same ~16% MFN |
| Section 301 Tariff (Trump-era) | +7.5% of value (e.g. $7,500 on $100k) | 0% No Section 301 tariffs on Nepal |
| U.S. Customs Fees (MPF & HMF) | ~0.47% of value (e.g. $471 on $100k) | ~0.47% of value Same fees as China |
| Ocean Freight (est. shipping cost) | ~$3,000–$4,000 for 40' container Assume ~$3,500 mid-range to East Coast | ~$5,000 for 40' container Incl. ~$4,200 ocean via India + inland transport from Nepal |
| Total Landed Cost per container (Duty+Tariff+Fees+Freight) | High – Substantial duties + 301 tariff E.g. $27,971 in duties/fees on $100k value + freight (~$3.5k) = $31,500+ total | Lower – Minimal duties (with prefs) and no extra tariff E.g. $471 in fees (duty-free) + freight (~$5k) = $5,500+ total If MFN duty applies: ~$16,471 + $5k = $21,500+ |
* Data sources: PEWRESEARCH.ORG, TRADE.GOV, STRTRADE.COM, XENETA.COM, DANTFUL.COM, SEAFREIGHTCALCULATOR.COM
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Don't miss out on the opportunity to transform your supply chain with Nepal's unique advantages. Our team is ready to help you explore the possibilities.