Rules of origin (ROO) define a condition under which preferential access to the product of an exporting country may be granted. Under the rules, a product must satisfy the fixed originating criteria they lay out. These rules are applied to determine whether particular exported products are eligible for preferential treatment based, for example, on the generalized system of preferences (GSP) when developed countries import the products. The objective of this study is to find out how preferential rules of origin are applied to Nepalese exports and examine the effects of rules of origin criteria in augmenting carpet, pashmina, handicrafts and tea exports from Nepal to the EU, Japan and the USA under duty free quota free (DFQF) facilities, a special category of preferential non-reciprocal trade treatment granted to least developed countries (LDCs). For implementation of these facilities, so-called “preferential” rules of origin are used...