His Majesty's Government of Nepal and the Government of the Socialist Federal Republic of Yugoslavia, being animated by the desire of further developing and strengthening friendly relations between the two countries, resolved to establish, facilitate and promote trade relations between Nepal and Yugoslavia, have on the basis of equality and mutual benefit, agreed as follows: -
The Contracting Parties shall take all appropriate measures to develop the trade between their two countries, and agree to promote the exchange of goods between them.
The Contracting Parties shall facilitate transit of goods, by all means of transport, through their territories.
The Contracting Parties shall accord upon importation and exportation of goods from one country to the other maximum facilities allowed by their respective laws rules and regulations in force. In any case in the said goods shall enjoy full most-favoured-nation treatment with respect to customs duties and charges of any kind imposed on the imports or exports or in connection therewith, with respect to the methods of levying such duties and charges, with respect to the rules formalities and charges in connection with customs clearing operations and with respect to the application of internal taxes, or other charges of any kind imposed on or in connection with imported goods.
Any advantage, favour, privileges or immunity granted by either by the Contracting Parties to import or export of any product originating in the territory of a third country or destined for its territory, shall be accorded immediately and unconditionally to the like products originating territory of either of the Contracting Parties and destined to be imported into the territory of the other.
The provision of Article III and IV shall not, however, apply to the grant or continuance of any;
The following shall be exempt from the customs duty, taxes and other export and import charges.
The export of goods from Nepal to the Socialist Federal republic of Yugoslavia and from the Socialist Federal Republic of Yugoslavia to Nepal during the validity of this Agreement shall be carried out in accordance with the indicative schedules attached hereto or as may be agreed upon between the two Governments from time to time.
The exchange of goods between the two countries shall be conducted in accordance with their respective laws, regulations and procedures relating to import and export of goods and on the basis of the contracts being concluded between the juridical and physical persons of the two countries.
Juridical and physical persons of either Contracting Parties shall enjoy the most-favoured-nation treatment in respect of personal protection of property when effecting commercial activities in the territory of the other Contracting Party provided that the enjoyment of this treatment shall be subject to the laws and regulations of such other Party which are generally applicable to all foreigners alike.
The trade between the two countries shall be based, as far as possible, on the principle or equilibrium. All payments accruing from trade exchange and services rendered pursuant provisions of this agreement shall be effected in convertible currency.
In order to facilitate the implementation of this Agreement the two Contracting Parties shall consult each other as and when necessary and also review the working of this Agreement.
For this purpose representatives of both Parties shall meet on request by either Party at a place and time to be mutually agreed upon.
Nothing in this Agreement shall be construed to prevent the adoption and enforcement by either Party of measures necessary to protect public morals, human, animal or plant life or health and for the security of its own territory.
After the expiration of the present Agreement its provision shall apply mutatis mutandis to all the contracts concluded during its validity and not executed by the time of the expiration of this Agreement.
This present Agreement shall come to force from the date of exchange of the instruments of ratification. It shall be, however provisionally applicable from the date of its signature. It shall remain in force for a period of two years and shall continue in force for further periods of one year thereafter, unless terminated by either party by giving at least three months notice in writing before the expiry of the said period of two years or the extended period
Done in two copies in the English language, both being equally authentic, at Kathmandu, on this fifth day of September, 1965.
Jharendra Narayan Singha
For His Majesty's Government of Nepal
For the Government of the Socialist Federal Republic of Yugoslavia
COMMODITY LIST "A"
Indicative list of commodities to be exported from the Socialist Federal Republic of Yugoslavia to the Kingdom of Nepal
COMMODITY LIST "B"
Indicative list of commodities to be exported from the Kingdom of Nepal to the Socialist Federal Republic of Yugoslavia