This report is prepared as the requirement of educational visit by the college.

1. A PROJECT WORK
Based on the organizational visit
To
“Trade and Export Promotion Centre”
By:
Rohan Byanjankar
Submitted to:
Binod Ghimire
Department of Management
Sainik Awasiya Mahavidyalaya

2. II
ACKNOWLEDGEMENT
We would like to express our gratitude to Sainik Awashiya Mahavidyalaya, Sallaghari,
Bhaktapur, for providing the golden opportunity to prepare a project work on “A Project
Work Based on the Trade and Export of Nepal prepared by visiting Trade and Export
Promotion Centre.” Our horizon of knowledge has expanded and has made us aware about
the contemporary situation of trade and export of Nepal, and its contribution in Nepalese
economy. Moreover, we experience and enjoyed the difficulty in conducting research,
however, we got opportunity to hone our language, knowledge, and talent.
We are extremely thankful to Mr. Netra Suwar, the faculty members of International
Business, for his immeasurable contribution in choosing the appropriate TEPC. Moreover,
we express our sincere thanks to Mr. Binod Ghimire for his immeasurable guidance,
inspiration, and resource materials, without which we would not have been able to prepare
this project work being in bound of complete formality. In addition, we would express our
sincere gratitude to Mr. Shambhu Koirala, Director General, Department of Commerce
and Supply Management, and Mr. Suyash Khanal for their valuable time and information.
Last but not the least; we would like to express our sincere thanks to employees at Sainik
Awasiya Mahavidyalaya for their direct or indirect contribution in shaping up this study.
We would be obliged to any suggestions and comments from the readers that will assist in
further improvement of this project work.
10 February 2016
Fifth Semester

3. III
ABSTRACT
The project report is based on the organizational visit to Trade and Export Promotion
Centre (TEPC). The project report is a research work. The project report encompasses
introduction to Nepal, which includes the general description of Nepal, its political
situation, and economic condition. The report is basically focused on Trade and Export of
Nepal, so introduction of TEPC along with its some of the major objectives has been
included in the project report. Moreover, the report clearly traces out core objectives of
preparing this research report. Some of the major finding of this organizational visit has
been enlisted such as import and export of Nepal, Nepal’s Balance of Trade, role played
by TEPC in the upliftment of business and trade across the national borders and so on. The
report also sets light on the existing challenges in the development of trade and promotion
of export.

4. IV
TABLE OF CONTENTS
ACKNOWLEDGEMENT................................................................................................. II
ABSTRACT .....................................................................................................................III
1. Background of Study...................................................................................................1
2. Methodology of Study.................................................................................................1
3. Introduction .................................................................................................................1
3.1. Introduction to Nepal...........................................................................................1
3.2. Introduction of Trade and Export Promotion Centre ...........................................2
3.3. Objectives of Trade and Export Promotion Centre..............................................2
4. Objectives of study......................................................................................................3
5. Findings .......................................................................................................................4
6. Existing challenges......................................................................................................6
7. Recommendation.........................................................................................................8
8. Conclusion...................................................................................................................9
BIBLIOGRAPHY..............................................................................................................A

5. 1
1. BACKGROUND OF STUDY
Trade and Export Promotion Centre (TEPC) is the organization established under
Ministry of Commerce and Supplies with an aim to promote foreign trade in
general and export trade in particular country. The “Trade and Export Promotion
Centre (TEPC)” was established on 20th Bhadra, 2063. The organization is situated
at Na Tole, Pulchowk, Lalitpur. The merging of Trade Promotion Centre, Export
Promotion Board and Carpet & Wool Development Board has formed TEPC. The
organization has been engaged in the expanding the domestic and foreign trade,
assisting domestic business organizations to participating in business fairs, and
other trade promotion activities such as branding and trademarking, and so on. The
visit to TEPC was our organizational visit to get hold of information regarding
contemporary trade statistics, import and export pattern, and interdependency
between trade, agriculture, industry and Gross Domestic Product.
2. METHODOLOGY OF STUDY
The report is based on the organizational visit to Trade and Export Promotion
Centre. The stringent effort has been applied to collect data from from various
sources so that the report will encompass a wide range of information, facts, and
figures. The data have been collected from both primary and secondary sources,
however, the report is basically based on information obtained from primary
source. The hour long seminar conducted in the organization provided about sixty
percent of information. The questionnaire session was very fruitful in retrieving
the information. Information from the primary source was not adequate to prepare
entire report, so information from secondary sources also played a crucial role in
accomplishing the report. The reference from the e-brochure of TEPC was also
helpful in preparing the report. Moreover, the website of TEPC
(http://www.tepc.gov.np) was one of the most reliable secondary sources.
3. INTRODUCTION
3.1. Introduction to Nepal
Nepal is one of the smallest nations of the world that lies in the South Asia, and is
one of the nations that is economically struggling to combat with slow economic
growth rate, meagre Gross Domestic Product (GDP), and low Per Capita Income.

6. 2
In global marketplace, Nepal is renowned for garment, and hand-made woolen
products. Nepalese garment products are highly demanded in most of the western
nations such as the US, the UK, Germany, and other European nations. However,
the Nepalese garment scandal related to the employment of children in the garment
industries besmirched the fame of Nepalese garment products resulting
international sanctions and the rapid erosion of market share of Nepalese Garment
products from the world market. In recent days, Nepal is facing a huge gap between
import and export ensuing a huge trade deficit. The import of about 9 times more
than export according to 2014. The massive earthquake of 2015 followed by
unofficial embargo by India has plunged economic growth rate to nearly 1%.
Nevertheless, Nepal is persistently trying to catch up with the neighboring nations.
3.2. Introduction of Trade and Export Promotion Centre
The economy is the driving factor of the contemporary world. Trade has been one
of the inalienable aspect of every nation, and every nation rely on other nation for
either resources or finished products or both. China has superseded rest of the
nations of the world in the export of goods, and has got over Japan in the nominal
GDP, and even the US in the GDP Purchasing Power Priority (PPP). Nepal has
also deemed to make effective utilization of business resources and stimulate trade
and export. The “Trade and Export Promotion Centre (TEPC)” established in 20th
Bhadra, 2063 under Ministry of Commerce and Supplies has an aim to promote
foreign trade in general and export trade in particular of the country. It has been
established as a focal point by merging three organizations namely Trade
Promotion Centre, Export Promotion Board and Carpet & Wool Development
Board. TEPC has been persistently engaged in the expanding the domestic and
foreign trade, assisting domestic business organizations to participating in business
fairs, providing protection to the product image through branding, and trademark,
analysis of global market and market opportunities, and assisting in conducting
Business to Business (B2B) meetings in national and international level.
3.3. Objectives of Trade and Export Promotion Centre
TEPC has been established with a primary objective of promoting foreign trade in
general and export in particular of the country. There are a number of the objectives
of TEPC, however, some of the major objectives are as follows:

7. 3
i. To advise the Government of Nepal in formulating policies for the
development and expansion of trade and export.
ii. To contribute to strengthening the national economy by developing and
expanding trade and export of the country.
iii. To support in achieving the goal of poverty alleviation through the
development of rural economy by enhancing internal and external market
for agro-based and other products.
iv. To assist in diversifying trade by identifying potential market for exportable
products.
v. To implement appropriate programs so as to attract investment at the
national and international level for export-oriented and import management
project.
vi. To act as information pool by collecting, disseminating and publishing
useful trade-related information.
vii. To study and identify the problems of foreign trade and advice the
Government of Nepal with appropriate measures to solve such problems.
viii. To organize buyers/seller meet and conduct training seminar and
workshops.
ix. To promote and protect the Nepalese product especially the garment
products through trademark and branding.
x. To stimulate and assist the domestic business organizations to participate
in trade fairs.
xi. To seamlessly coordinate and cooperate with international economic
institutions such as World Trade Organization, International Trade Centre,
Food and Agricultural Organization and so on.
4. OBJECTIVES OF STUDY
The visit to Trade and Export Promotion Centre on ______________, --------------
------, was our organizational visit to get hold of following information:
i. The current situation of trade and export of Nepal.
ii. The roles played by the TEPC in enhancing the domestic and foreign trade.
iii. The impact of massive earthquake, and unofficial sanction by India on the
trade and Export of Nepal.

8. 4
iv. The trade policies planned to be formulated in consideration to huge
economic and financial losses in massive earthquake, and the unofficial
embargo.
v. The dumping of agricultural products by India, its impact on agro-based
Nepalese economy, and the anti-dumping measures adopted by Nepal. The
measures adopted by TEPC to increase the competitiveness of the product.
vi. The major import and export partners of Nepal along with the major
importing and exporting goods from and to those nations respectively.
5. FINDINGS
The organizational visit to Trade and Export Promotion Centre was really opulent
and fruitful. Being a student of business, our keen interest was on knowing about
Nepalese trade, international market and Nepalese product, import and export
related information, business ties with different nations, and multiple privileges
granted by WTO for the upliftment of international business to the under developed
nations. Some of the major findings of our visit to TEPC are as follows:
i. Nepalese products are exported in 138 countries and 175 countries and
economic zones, and is predominantly exported in India that is about 64.5
percentage of total
export. The major
exports of Nepal
comprises of Garment
products.
ii. The major import partner
of Nepal are India and China.
India has dominance in
Nepalese import with 63.7
percentage of total import
followed by China with 11.9
percentage. The major
imports of Nepal includes
Petroleum Products, Iron-
Steel, and machinery.
India
64%
China
3%
Others
33%
Export (2014)
India
64%
China
12%
Others
24%
Import

9. 5
iii. There is yawning gap between import and export. The total imports of
Nepal is nine times the total exports in the year 2014/15.
iv. Nepal has been suffering a series of negative Balance of Trade (BoT) since
last decade. The major trade partners includes India, China, Japan,
Germany, and the United States. Among these nations, Nepal has positive
balance of trade with United States while negative balance of trade with
other nations.
v. TEPC plays a vital role in organizing the Nepal’s participation in
International Trade fairs and also makes arrangement for those companies
who wish to participate the fairs of their own interest.
vi. Nepal Trade Preference Act for duty Free Quota free entry of Nepalese
Garment to US. United States has provided duty free access to the Nepalese
Garment products in order to provide relief to the crumbling Nepalese
economy, which is the aftermath of devastating Earthquake.
01:06.2
01:06.7
01:07.8 01:07.9
01:09.2
01:05.7
01:06.1
01:06.5
01:07.0
01:07.4
01:07.8
01:08.3
01:08.7
01:09.1
01:09.6
Import: Export
2010/11 2011/12 2012/13 2013/14 2014/15
-6000
-4000
-2000
0
China India
Trade Deficit and Surplus with China
and India
2011 2012 2013
-60
-40
-20
0
20
Japan Germany USA
Trade Surplus and Deficit with Japan,
Germany, and USA
2011 2012 2013

10. 6
vii. There has been a trade treaty between Nepal and India for the imposition
of zero percent tariff to Nepalese product exported to India.
viii. Nepal has received the Generalized System of Preference (GSP). Nations
such as Japan, Canada, US, Korea, and Turkey are giving duty free access
to Nepalese products. China has been providing duty free access to more
than eight thousand Nepalese products.
ix. Nepalese woolen and garment products are superior to products of other
nations, so to preserve the brand image and loyalty among the customers
trade-marking has been introduced to basically Pusmina products in more
than 46 nations. The trademark has been introduced to carpets, and leather
products too.
x. The unofficial sanction has badly impinged the Nepal-India trade. The
export and import has been reduced to two-third of previous year import
and export. The export of petroleum products has been tumbled by two-
third.
xi. Enhanced Integrated Framework by World Trade Organization has
supported in enhancement of Nepalese economy. It has supported in
cardamom production, and has granted $20 million for Pusmina Industry.
6. EXISTING CHALLENGES
Nepalese economy is agrarian economy. The agro-based Nepalese economy has
turned Remittance based economy. The dearth of skilled manpower has made the
situation of Nepalese economy dearer. Nepal’s foreign trade has also shrunk due
to lack of technology, mass desertion of manpower (brain-draining), and
ineffectiveness of plans and policies.
Some of the major existing challenges are as follows:
1. Poor Quality Product
One of the major problems in Nepalese product is the poor quality. Nepalese
products are poor in quality due to lack of training, seminars, and workshops.
Many of the Nepalese products are not up to the quality standards, thus lacks
competitiveness.
2. Less production of goods

11. 7
Nepalese industries are still using traditional technologies. The agriculture is
not commercial rather than its substantial farming. The agriculture is based on
monsoon, thus adequate rainfall in time results to good harvesting, but meagre
rainfall results to starvation. Nepalese industries produce goods in limited
quantity which is even insufficient to catch up with domestic demand. Nepal,
being an agricultural country, imports sugar from Brazil, chickpeas (Chana)
from Australia, and rice and dal from India. For instance: Japan demanded for
8000 tons of coffee from Nepal, but due to dearth of sufficient production
Nepal failed to fulfil the demand. Nepal produces less than 1000 tons of coffee
per year.
3. Price
Nepalese products are expensive in comparison to the products of China and
India. The cost of production of high as the raw materials are imported from
abroad, significant idle time to the workers due to continuous strikes, and
opaque management.
4. Lack of Easy Access to Market
One of the significant hurdles in Nepalese trade is lack of Easy Access to
Market. Nepal is land locked nation, thus lacks easy access to sea route. The
disputes in the southern belt or in Terai region significantly halts the import
and export. One of the blazing contemporary issues, the Terai Dispute, has
plunged the trading activities. The unofficial sanction by India has further
deteriorated Nepalese trade and export.
5. Technological impoverishment
Nepalese farming techniques are still based on traditional technologies. The
Nepalese industries are not so up to date with the ever changing technology.
The manual work is still prevalent in the nation. The introduction to new
technology and import of sophisticated machinery must be simultaneously
backed by training, seminars, and workshops.
6. Lack of time based delivery
Japan is the world’s most time conscious nation. It is the world most accurate
nation with accurate bank clock, and timely arrival of workers. But Nepal has
weak focus towards the passage of time. Most of the foreigners are unsatisfied
with Nepal’s misty view on time. Most of the delivery by Nepal are beyond the

12. 8
delivery date due to political factors, economic factors, geographical factors,
and so on.
7. Dearth of business confidence
Business confidence is dwindling among the business people. Commercially
Important People such as Binod Chaudhary, Rajendra Khetang and other top
business persons are reluctant to conduct business in Nepal due to high
operating risk, and agitation. More than 2500 factories has shut down their
operation due to incessant strikes, and unofficial sanction resulting to
unavailability of raw materials. Thus, investors are in averse of investing in
Nepal due to political instability, agitation, chaos and has lost the business
confidence.
7. RECOMMENDATION
Nepal is the land of opportunities. There is abundant availability of natural
resources in Nepal. The economic fragility of the Nepal is the consequence of
underutilization of the natural resources bestowed by nature. Thus, we all Nepalese
must focus on utilizing our available resources in the most beneficial way without
deteriorating the Mother Nature. Moreover, trade and export is the backbone of
every nation in the contemporary business world. Thus, Nepal can also strengthen
the trade and export by best utilizing its available resources.
Nepal exports medical herbs amount to Rs. One Arab (Rs. 1 billion) in every year
but the processing of herbs and exporting the processed material will yield multiple
times more than the export of raw herb. The trade and export of Nepal is weakening
due to the political instability, inability to formulate plans and policies, and lack of
better mobilization of funds. Hence, to get a better pace at the development of trade
and export, Nepal must be politically and ideologically un-fragmented. The trade
policy must go along with fiscal policy and monetary policy.
Brain drain is one of the most virulent disease that has spilling effect on social-
cultural, economic, and demographic factors. Remittance Based Economy is the
consequence of excessive brain draining. Nepalese economy is based on
remittance, thus the nation is submerged in the dearth of skilled manpower. Paucity
of manpower, technological impoverishment, sporadic training, seminars and
workshops are the primary hurdles in the development of trade and export. Hence,

13. 9
acquisition of skilled manpower in the nation is the utmost requirement of present
context. The mass production is the resultant of blend of skills of people, advance
technology, and utilization of resources at the optimal level. Quality, quantity,
price, and time are the inevitable factors in the business world. Thus, Nepal must
have bird’s eye view on these four factors that has shrouded the contemporary
business.
8. CONCLUSION
Trade and Export Promotion Centre is the government organization that operates
under Ministry of Commerce and Supplies. TEPC is playing the vital role in
promoting trade and export related activities. TEPC is responsible for the
formulation of trade policies, thus the organization has keen insight on formulating
the trade policy in consideration to huge economic and financial losses in
devastating earthquake. Moreover, Nepal has adopted anti-dumping measures and
countervailing duty to protect the domestic and infant industries. TEPC has been
vigilant towards the upliftment of trade and export of Nepal and been continuously
conducting trainings, seminars, and workshops. TEPC basically focuses on major
exporting goods of Nepal such as Pusmina, Leather, Woolen, and garment
products, and provide special support to these industries. It also provides
machinery support to these industries along with periodic training to the
employees. TEPC works simultaneously with WTO, FAO, ITC and other
international organizations. The major import partners of Nepal are India, china,
and Germany, and major export partners of Nepal are India, China, Japan, US, and
Germany.

14. A
BIBLIOGRAPHY
Agrawal, Govinda Ram (2014). International Business. Bhotahity: M.K. Publisher &
Distributors
Victoria Business School. How to Write a Business Report. Wellington: Victoria
University.
Trade and Export Promotion Centre. Retrieved from
http://www.tepc.gov.np/pages/about-us
TEPC Publication. Trade and Export Promotion Centre. Retrieved from
http://www.tepc.gov.np/pages/tepc-publication