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NICARAGUA

Since May 2000, entry into force in June 2000

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Screening of investment and acquisitions
Law No. 344 on Foreign Investment Promotion (Ley de Promoción de Inversiones Extranjeras, Ley No. 344)
The government can limit foreign ownership for national security reasons under the Foreign Investment Promotion Law. According to Art. 3 of the law, foreign investors are subject to all legal provisions of general application in Nicaragua and enjoy the same rights and protections granted to Nicaraguan investors. However, exceptions apply to cases related to national security, public health, and the limitations outlined in the Political Constitution. Foreign investors and their investments are regulated by this law without prejudice to any special laws applicable to specific investments.
Additionally, it is reported that although the Government of Nicaragua does not formally screen, review, or approve foreign direct investments, the executive branch retains de facto review authority over such investments. This review process remains unclear and lacks transparency.
Coverage Horizontal
"SELECT DISTINCT(post_id) FROM prj_12_postmeta WHERE meta_key = 'score' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'NI')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.1') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.2') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.3')\n\t\t\t\t\t\t\t\t)"
[{"post_id":"70854"},{"post_id":"70855"},{"post_id":"70856"}]
"SELECT meta_value FROM prj_12_postmeta WHERE meta_key = 'impact' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'NI')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.1') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.2')\n\t\t\t\t\t\t\t\t)"
"SELECT meta_value FROM prj_12_postmeta WHERE meta_key = 'score' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'NI')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.3')\n\t\t\t\t\t\t\t\t)"
ITA: [{"meta_value":"0.50"}]

NICARAGUA

ITA signatory? I II

Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods  |  Sub-pillar Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
1.29%
Coverage rate of zero-tariffs on ICT goods (%)
80.44%
Coverage: Digital goods

NICARAGUA

N/A

Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods  |  Sub-pillar Participation in the World Trade Organization (WTO) Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Lack of participation in the Information Technology Agreement Expansion Agreement (ITA II)
Nicaragua is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996 but is not a signatory of its 2015 expansion (ITA II).
Coverage ICT goods

NICARAGUA

N/A

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Other limitations on foreign participation in public procurement
Local representative requirement to participate in public procurements
It is reported that in order to participate in public procurement processes, it is necessary to register with "nicaraguacompra.gob.ni" as a supplier of the state. In the case of foreign companies, the registration process requires a legal representative domiciled in the country.
Coverage Horizontal

NEPAL

Since June 1995, as amended in March 2022

Pillar Content access  |  Sub-pillar Licensing schemes for digital services and applications
National Broadcasting Regulation, 2052 (राष्ट्रिय प्रसारण नियमावली, २०५२)
The National Broadcasting Regulation was amended in 2022 to incorporate over-the-top (OTT) services and internet television within the definition of "other means of communications." With this inclusion, the amended Regulation mandates that OTT and internet television providers obtain licences to operate their services in Nepal. The term "OTT" is defined as the broadcasting of content on demand via the internet, encompassing media streaming services delivered through various platforms utilising internet connectivity. In addition, "internet television" is defined as the routine transmission of self-produced audio-visual programmes through the internet.
Coverage Over-the-top and internet television providers

NEPAL

Since November 2023

Pillar Content access  |  Sub-pillar Licensing schemes for digital services and applications
Directives on the Operation of Social Networking, 2023 (सामाजिक सञ्जालको प्रयोगलाई व्यवस्थित गर्ने निर्देशिका, २०८०)
The Nepali government has mandated that social network platforms (SNPs) such as Facebook, TikTok, and YouTube must register and establish offices in Nepal. According to Art. 3.4 of the "Directives on the Operation of Social Networking 2023," any person, company, or institution intending to operate as an SNP must submit an application to the Ministry of Communications and Information Technology for enlistment using the form referenced in Schedule 1, along with the required documents. Additionally, SNPs already in operation prior to the commencement of these Directives must be enlisted with the Ministry within three months from the date of their commencement. According to Art. 3.7 the Ministry may prohibit any SNP from operating within Nepal if it is not enlisted with the Ministry and fails to comply with these requirements.
Art. 2 of the Directive defines SNPs as Internet or information technology-based operating systems available to the public, such as Facebook, TikTok, Viber, Pinterest, WhatsApp, Messenger, Instagram, YouTube, LinkedIn, WeChat, and others, that facilitate the exchange of ideas or information among individuals or organisations and enable the dissemination of user-generated content.
Coverage Social network platforms

NEPAL

Since January 1997
Since 2012, last amended in 2016

Pillar Technical standards applied to ICT goods and online services  |  Sub-pillar Self-certification for product safety
Telecommunications Act, 2053 (1997) (दूरसञ्चार ऐन, २०५३)

Decision No. 3,327 on Type Approval Working Procedure for Customer Premises Radio Telecommunication Equipment, 2016 (TAP-04)
Nepal allows foreign companies to self-certify that they comply with standards for radio transmission, electromagnetic interference (EMI) or electromagnetic compatibility (EMC) through a Supplier Declaration of Conformity (SDoC).
According to Arts. 13-14 of the Telecommunications Act, 2053, the Nepal Telecommunications Authority (NTA) oversees type approval in Nepal, and compliance with these regulations is mandatory before importing or selling any radio telecommunication Customer Premises Equipment (CPEs) in the country.
Decision No. 3,327 provides further information about the procedure.
Coverage Telecom equipment

NEPAL

Since January 2023
Since July 2018

Pillar Online sales and transactions  |  Sub-pillar Restrictions on online payments
Unified Directives Related to Payment Systems 2079 (भुक्तानी प्रणाली सम्बन्धी एकीकृत निर्देशन – २०७९)

Nepal Rastra Bank Directive of 2018
Under the Unified Directives Related to Payment Systems 2079, specific transaction limits are imposed on electronic transactions, encompassing those conducted via mobile banking, internet banking, and e-wallets. The daily transaction limit for mobile banking, including QR code payments, is set at NPR 300,000 (approx. USD 2,200), while internet banking transactions are capped at NPR 2 million (approx. USD 14,800) per day. Additionally, users can transfer up to NPR 200,000 (approx. USD 1,500) per day and NPR 1 million (approx. USD 7,400) per month from a bank account to an e-wallet. Similarly, transfers from e-wallets to bank accounts are restricted to NPR 200,000 (approx. USD 1,500) per day and NPR 1 million (approx. USD 7,400) per month. Transfers between e-wallets are limited to NPR 50,000 (approx. USD 370) per day and NPR 500,000 (approx. USD 3,700) per month.
The Nepal Rastra Bank, serving as Nepal's Central Bank, has established these ceilings on maximum daily and monthly electronic transaction amounts through various directives, starting with one issued in 2018.
Coverage Electronic transactions

NEPAL

Since August 2015, last amended in June 2020
Since June 2016

Pillar Online sales and transactions  |  Sub-pillar Restrictions on online payments
Payment and Settlement By-Laws, 2015

Licensing Policy for Institution/Mechanism Operating Payment Related Activities, 2016
According to Chapter 3 of the Payment and Settlement By-Laws of 2015, payment-related service providers are required to register a company in Nepal. Furthermore, under the Licensing Policy for Institutions/Mechanisms Operating Payment-Related Activities, providers must obtain a license from Nepal Rastra Bank (NRB), the central bank of Nepal, to operate as either a Payment Service Provider (PSP) or a Payment System Operator (PSO). PSPs are institutions that offer payment services through electronic means, including domestic money transfer and bill payment services for goods and services. PSOs are institutions involved in the operation, control, and clearing of payment-related activities.
It is reported that the Payment and Settlement By-Law 2020, issued by NRB in June 2020, supersedes the previous regulation. However, it is reported that the requirement to obtain a license from Nepal's central bank to operate as either a PSP or PSO remains in effect. The legal text is not available online.
Coverage Online payment services

NEPAL

N/A

NEPAL

N/A

Pillar Online sales and transactions  |  Sub-pillar Restrictions on domain names
Policy for Domain Name Registration Under NP CCTLD
According to the policy for domain name registration under NP CCTLD, only foreign companies that register in Nepal or register their trade name (trademark) with the government can register a '.np' domain.
Coverage Horizontal

NEPAL

Since November 2023

Pillar Online sales and transactions  |  Sub-pillar Local presence requirements for digital services providers
Directives on the Operation of Social Networking, 2023 (सामाजिक सञ्जालको प्रयोगलाई व्यवस्थित गर्ने निर्देशिका, २०८०)
The Nepali government has mandated that social network platforms (SNPs) such as Facebook, TikTok, and YouTube must register and establish offices in Nepal. According to Art. 6 of the "Directives on the Operation of Social Networking 2023", SNP operators must arrange a point of contact within Nepal to address grievances related to the use of social networks. Additionally, any SNP that does not have an office in Nepal at the commencement of these Directives must establish an office or designate a contact person within three months. Pursuant to Art. 3.7, the Ministry of Communications and Information Technology may ban any SNP from operating in Nepal if it does not comply with these requirements.
Art. 2 of the Directive defines SNPs as Internet or information technology-based operating systems available to the public, such as Facebook, TikTok, Viber, Pinterest, WhatsApp, Messenger, Instagram, YouTube, LinkedIn, WeChat, and others, that allow individuals or organisations to exchange ideas or information with each other or to disseminate user-created content.
Coverage Social network platforms

NEPAL

Since September 2018
Since December 2006

Pillar Online sales and transactions  |  Sub-pillar Framework for consumer protection applicable to online commerce
Consumer Protection Act, 2075 (2018) (उपभोक्ता संरक्षण ऐन, २०७५)

Electronic Transactions Act, 2063 (2008) (विद्युतीय (इलेक्ट्रोनिक) कारोबार ऐन, २०६३)
The Consumer Protection Act and the Electronic Transactions Act provide a comprehensive framework for consumer protection that also applies to online transactions. The Law on Electronic Transactions regulates electronic communications and records, and it establishes the legal provisions aimed at authenticating and regulating electronic data. It also creates a secure and authentic method of electronic communication while addressing the regulation of all issues related to electronic transactions.
Coverage Horizontal

NEPAL

N/A

Pillar Online sales and transactions  |  Sub-pillar Ratification of the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts
Lack of signature of the UN Convention on the Use of Electronic Communications in International Contracts
Nepal has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal

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