Update: NRN Law

1. Update: NRN Law

3. Why NRN Law? �Nepalis� living outside Nepal have encountered difficulties in stay abroad or returning to visit NRN most vested group in helping Nepal yet special status of these �Nepalis� unheralded Other nations successfully exploited expatriate wealth, expertise and desire to help motherlands Legal framework for migrants a jumble of incoherent laws both recent and ancient.

4. Expected Role of Diaspora Economic growth through foreign direct investment and remittances Philanthropy Tourism promotion Technology transfer Peace building Poverty reduction

5. Chronology 1950�s � First Nepali emigrants into North America 1960�s � US Immigration reform � trickle from Nepal 1970�s � Immigration increases � lobbying commences. Ministers, Princes, Ambassadors and Bureaucrats 1980�s � Population exceeds 10,000. Lobbying continues-disjointed. Democratic stirring in Nepal. 1990�s � Immigration picks up. Population approaches 100,000. Diverse immigrant groups. Specific concessions crystallize. Governments note and support. 2000�s � Ten-year visa passed and unimplemented. Lobbying intensifies. NAC, NRNA enter picture.

6. Achievements of NRN Law Defines term NRN to include all Nepali origin people. Provides for NRN card and up to 10-year visas. Recognizes �investment� in Nepal by NRN liberally. Permits registration of the NRNA � opens many doors. Grants non-citizen NRN extended visa, property ownership/bequest and special investment rights . Allows citizen NRN foreign exchange, investment and repatriation rights. Has other special facilities for NRN and their families.

7. Evaluation of NRN Law Generally a very good good first step but some significant variances to some NRNA suggestions NRN definition Property rights and family issues Investment criteria

8. NRN Definition Bill includes Nepali citizens and non-citizens Who have lived for 2 years in non SAARC countries Specifically excludes diplomats and students A grandparent must be a Nepali citizen NRNA constitution Lived outside Nepal for 183 days except India and Bhutan No exclusions and no similar generational requirement NRNA concerned about the 1 million+ laborers with contracts less than 2 years and the large student population which will inevitably add to the NRN ranks.

9. Property rights Bill permits ownership and bequest rights NRN non-citizens may buy/sell specific amount of property May bequeath property but only to a cardholding NRN NRNA suggestions No limit on reasonable property acquisition Full inheritance and bequest rights No mention of inheritance rights. The three-generation rule in defining NRN will inevitably cause problems in property transfers.

10. Family Issues Bill appears inconsistent in some definitions Family includes children and parents and grandparents of both spouses But to be a non-citizen NRN at least a grandparent must be Nepali NRNA views Generally silent or in agreement with NRN Law Has not been fully explored in NRNA forums Keeping movement alive in future when generations may have lost a link to Nepali citizenship but not to Nepali identity is important. Must be linked to the NRN �Card�. Issues of adoptive children, foreign spouses and divorce unclear.

11. Investment Criteria Bill has fairly liberal investment provisions but Requires 50% or more NRN ownership of a company to invest in convertible currency Nepali-citizen NRN from countries with restrictive provisions affected NRNA position Did not focus on any such restrictions during discussions Generally silent or in agreement with NRN Law otherwise Non-citizens are not as affected as Nepali citizens. Controlling interest in a company is perhaps a better criterion than ownership but this type of provision is common in many countries.

12. Other Issues Bill is just a very good start � better than many drafts Has not really considered migrant worker problems Does not address dual citizenship issues Is silent on tax treaties, legal reforms and similar issues Contains numerous undefined and TBD items in the language NRNA role Must unearth and bring these issues to attention and resolution The work has just begun. Amendments based on real needs have to be a continuing process. Robust implementing regulations with full NRNA participation is a short-term imperative.

13. Challenges & Goals Challenges: NRN have to live up to the promises and programs made or implied. Government has to be convinced to keep NRNA as a meaningful partner in the amendment/regulation-drafting process. Goals: Take an active role in the timely drafting and passing of implementing regulations . Continue dialogue with Government to amend and ameliorate the law. Accelerate the implementation of NRNA programs benefiting Nepal

14. Next Steps NRNA has to be actively involved in seeing this Law in practice. This is as much a task as getting it passed! Discussion and suggestions Support of the North American diaspora NRN-NACC Resolution

15. Issues Summary Non-Nepali NRN Three-generation NRN issue More inclusive family Separated families Inheritance rights Dual citizenship or�? Tax treaties/legal reform ?????? Nepali NRN Two-year requirement Student / diplomat issue Investment thru companies Migrant worker issues ???????