3.86.  Sanitary and phytosanitary (SPS) issues are important for Nepal, both from import and export perspectives, as agricultural and food products are seen as having good export potential. However, according to the authorities, meeting SPS requirements in export markets has been difficult

3.87.  A number of government agencies are responsible for the policy, regulation and implementation of SPS measures, all in the Ministry of Agriculture and Livestock Development: The DFTQC is responsible for food products, feed stuffs, and food quality certification. The Central Food Laboratory is part of the DFTQC and it was accredited by the NABL of India (ISO 17025) in 2012, with the scope of accreditation extended in 2017; The National Plant Quarantine Program in the Department of Agriculture is responsible for issuing permits for imports of plant materials, quarantine inspections and phytosanitary certificates for exports of plant products; The National Animal Quarantine Office of the Department of Livestock Services is responsible for issuing permits for imports of animal products, animal quarantine inspections and sanitary certificates for exports of animal products; The Seed Quality Control Centre (SQCC) is responsible for seed variety registration, seed quality inspection and certification; and The Plant Protection Directorate is responsible for control of pesticides, herbicides, and other chemicals used on crops

3.88.  The legislation on SPS measures has changed little since the last Review, and remains: the Plant Protection Act, 2007 and the Plant Protection Rule, 2010; the Contagious or Infectious Disease Act, 1963; the Animal Health and Livestock Services Act, 1998; the Food Act 1967 and the Food Rules 1970; the Pesticides Act, 1991 and the Pesticides Rules, 1993; the Drug Act 1978 and the Drug Registration Regulation 1981; and the Directives on Export Import Inspection and Quality Certification System, 2006.[102] However, in 2013, the National Standards for Phytosanitary Measures were introduced, setting out a framework and details for pest risk analysis

3.89.  Under the Agriculture Development Strategy (ADS), the authorities intend to prepare a new Food Act, as well as legislation on the accreditation of standards certification bodies and national laboratories for food safety and quality. In addition, under the ADS, an independent Food Authority is to be established, while the capacity of the DFTQC, the Department of Agriculture, and the Department of Livestock are to be improved, along with improvements in inter-departmental coordination

3.90.  Nepal is a member of the World Organisation for Animal Health (OIE) and the Codex Alimentarius, a contracting party to the International Plant Protection Convention, and has acceded to the Pesticides and Industrial Chemicals Convention (the Rotterdam Convention)

3.91.  Under the Directives on Export Import Inspection and Quality Certification System, the DFTQC can, on a voluntary basis, provide export certificates. The DFTQC may also authorize other organizations to provide export certificates. However, as the Central Food Laboratory of the DFTQC is accredited by the NABL, only for some products and some tests, its main role in assisting exports is issuing export certificates where the importing country requires them from the national food authority

3.92.  Import certificates are required for imports of food products, plants, plant products, live animals, livestock products, and inputs for livestock. According to the Directives: "The import certification will not discriminate among the trading partners having the consignments with the same level of risk. In other words, it shall be ensured that there will be no arbitrary or unjustifiable discriminations among the consignments originating from different trading partners". Each application must be accompanied by supporting information, including: a description of the product; the name of the exporting country; the GMP/HACCP/ISO 9000 certification of the processing unit; a copy of the export certificate and quality certificate from the accredited national authority of the exporting country; and a sample of the product or an analysis report. Upon arrival of the consignment in Nepal, samples may be taken and checked for compliance with the import certificate.[103] WTO Sanitary and Phytosanitary Measures

3.93.  In the WTO, the enquiry point for SPS measures is the DFTQC, and the notification authority is listed as the Agribusinesses Promotion and Statistics Division in the Ministry of Agriculture, Land Management and Cooperatives (which is now the Food Security, Agribusiness Promotion and Environment Division in the Ministry of Agriculture and Livestock Development). Nepal has made a total of 32 notifications on SPS measures to the WTO, including 3 addenda. Since 1 January 2012, it has made 13 regular notifications, including the Framework for Pest Risk Analysis, and a quarantine list of pests for apples, citrus, potatoes, ginger, garlic, bananas, and coffee.[104] No specific trade concerns were raised by other Members on SPS measures taken by Nepal, and Nepal has not raised any specific trade concerns relating to measures taken by other Members.[105]

3.75.  The legal framework for standards and technical requirements has not changed since the last Review, and remains the Nepal Standards (Certification Mark) Act, 1980, and, for metrology, the Standards, Weights and Measures Act, 1969. According to the authorities, new legislation on standards and on accreditation is in the process of being prepared. However, this was also the situation in 2012.[95] Other legislation relating to standards and technical regulations includes: the Food Act, 1967; the Drug Act, 1978; the Consumer Protection Act, 1998; and the Environmental Act, 1997

3.76.  The Nepal Council for Standards (NCS) is responsible for approving standards, while the Nepal Bureau of Standards and Metrology (NBSM) is the main agency responsible for preparing them. The NBSM also provides product and system certification services and testing and calibration services, and it is the enquiry point and notification authority for TBT matters in the WTO. The NBSM is a member of the International Organization for Standardization (ISO), the South Asian Regional Standards Organization (SARSO), and the Asia Pacific Metrology Programme (APMP). It is also a corresponding member of the International Organization for Legal Metrology (OIML), and an affiliate country for the International Electrotechnical Committee (IEC). According to the authorities, the NBSM is in the process of adopting the Code of Good Practice for the Preparation, Adoption and Application of Standards in Annex 3 to the TBT Agreement

3.77.  In addition to international and regional affiliations, NBSM has a number of bilateral arrangements, including the: Agreement on Cooperation for Industrial Product Inspection with the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) of China, 2005; Memorandum of Understanding (MoU) with the National Accreditation Board for Certification Bodies (NABCB) of India as a National Accreditation Focal Point (NAFP), 2014; MoU with the National Accreditation Board for Testing and Calibration Laboratories (NABL) of India as an NAFP, 2015; MoU with the Bangladesh Standards and Testing Institution (BSTI), 2016; and Bilateral Cooperation Agreement on Standardization and Conformity Assessment with the Bureau of Indian Standards (BIS), 2017.[96]

3.78.  Draft standards and technical regulations relating to goods and services, except for food and pharmaceuticals, are prepared by the NBSM. A working draft is first prepared by a subcommittee of one of the NBSM's technical committees. Once approved by the technical committee, the draft is circulated, with two months for comments. At the end of the comment period, the draft is reviewed and, if necessary, amended by the relevant technical committee and/or subcommittee. When finalized, the draft is sent to the NCS, which is chaired by the Minister for Industry, Commerce and Supplies, for approval and, once approved, it is published as a Nepal Standard and is available from the Department of Printing. All committees, including the NCS, include representatives from stakeholders including the private sector, consumers, and academia. The NBSM intends to publish its work programme on its website. Once approved, the Government may make standards mandatory, in which case they are published in the Nepal Gazette

3.79.  At end-July 2018, the NBSM had developed 904 national standards (51 since 2012), covering products, processes, test methods and management systems. Eleven standards for products are mandatory and, therefore, technical regulations, of these four became technical regulations since 2012 (PVC Cable, LPG Regulators, LPG Valves, and composite materials cylinders). The other seven are for different types of cement, LPG cylinders, dry cell batteries, iron bars, and galvanized iron wire. In addition, there is one mandatory process for LPG bottling operations. A list of standards and technical regulations prepared by the NBSM is available from the official government website.[97]

3.80.  In general, standards are based on international standards, such as those of the ISO, the IEC, and the Codex Alimentarius, or on well-known national standards such as the British Standard Institution, and the BIS. Where comparable international standards are not available, the NBSM generally drafts standards based on national requirements. According to the authorities, out of the 904 national standards, 106 were ISO standards

3.81.  The NBSM represents Nepal in SARSO, which is based in Dhaka in Bangladesh and sets harmonized standards for the members of the South Asian Association for Regional Cooperation (SAARC).[98] There are six sectoral technical committees in SARSO responsible for preparing draft standards for: food and agricultural products; jute, textile and leather; building materials; electrical, electronics, telecommunications, and information technology; chemicals and chemical products; and conformity assessment. SAARC standards, once adopted, replace national ones where they exist. At 6 August 2018, 11 SAARC standards had been published.[99]

3.82.  Standards relating to the environment, food, and drugs are developed by the relevant ministries under legislation for each area. For example, the Department of Drug Administration in the Ministry of Health and Population is responsible for standards relating to pharmaceuticals, and the Department of Food Technology and Quality Control (DFTQC) in the Ministry of Agriculture and Livestock Development is responsible for standards relating to food and feed. At end‑July 2018, there were 121 food commodity standards, some of which were based on Codex Alimentarius measures or, in the absence of Codex standards, Indian standards. All of these 121 standards relate to sanitary and phytosanitary measures and, therefore, they are compulsory. Testing and certification

3.83.  The NBSM is responsible for the Nepal Standards certification mark (NS) system which may be used for products where standards or technical regulations exist. Under the Nepal Standards (Certification Mark) Act, the certification mark is compulsory for a product to be placed on the market if the relevant standard is compulsory, while it is voluntary in other cases. Authorization to use the mark requires an audit from the NBSM, which includes testing and assessment of the requesting company, as required by the certification mark scheme and, after authorization, inspections and testing are carried out to ensure continued compliance with the standards and/or technical regulations

3.84.  For product certification, in June 2014, the NBSM was accredited (ISO 17065) by the NABCB of India for 13 products, including galvanized iron wire, galvanized iron pipe, iron bars, PVC and HDPE pipes, three types of Portland cement, and food and feed products. The NBSM has issued 320 licences to use the NS mark for 60 different products. For certification of management systems, the NBSM has been accredited (ISO 17021) by the NABCB for quality management systems based on ISO 9001. WTO Technical Barriers to Trade

3.85.  Nepal made four notifications to the WTO, all in March 2013, relating to four mandatory standards on PVC Cable, LPG Regulators, LPG Valves, and composite materials cylinders.[100] One specific trade concern was raised by other Members about Nepal's National Alcohol Regulation and Control Policy and graphic warnings and statements for alcoholic beverages.[101]