Update: NRN Law

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Update NRN Law
Sharda Thapa VP (Americas) - NRNA
2
NRN Bill

• Non-Resident Nepalis (NRN), citizens living
  abroad for extended periods and those who have
  switched citizenship, have been trying for over
  two decades to get concessions from Nepal based
  on their unique status vis-à-vis Nepal.
• The NRNA, formed in 2003, adopted cause and
  consolidated the efforts. Negotiated with Govt.
• After four years of effort the Interim Parliament
  in Nepal passed a NRN Law in August 2007.

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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

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

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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.

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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-dra
  fting 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

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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
• ???????

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You must be the change you want to see in the
world. Mahatma Gandhi