The Supreme Court has asked the government and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) to explain why a Certificate of Origin (CO) was not issued to Kodak Nepal.

Kodak began production in September 1999 but was forced to stop producing after failing to obtain origin certification needed for duty free export to India. Kodak's product origin was certified for export to Singapore but not for sales in India, which is what the company is now challenging in court. Kodak had planned to sell 80 percent of its products in India and is likely to pack up and leave should it fail to obtain origin certification through the court order. Industry sources say India has opposed Kodak's colour photo paper making process as "manufacturing", by which it would be eligible for duty-free entry. The trade treaty between Nepal and India however does not define "manufacturing".