Trade Information

Trade Agreement

Nepal's Trade & Transit Agreement

AGREEMENT WITH LIST OF COMMODITIES
SIGNED AT SEOUL MAY 6,1971,ENTERED
INTO FORCE MAY 6,1971

His Majesty�s Government of Nepal and Government of the Republic of Korea (hereinafter referred to as "the Contracting Parties"),

Being desirous of promoting trade between the Kingdom of Nepal and the Republic of Korea on the basis of equality and mutual benefit. Have agreed as follows.

Article I

The two Contracting Parties shall take all appropriate measures to promote trade between their two countries in particular with regard to the goods and commodities as mentioned in Schedules "A" and "B" attached to this Agreement.
The Schedules mentioned in paragraph I above will not be of limiting character. New items may be added from time to time by mutual consent of the two Contracting Parties.

Article II

The two Contracting Parties shall grant each other the most-favoured nation treatment in respect of issuance of licences, customs formalities, customs duties, taxes, storage charges and other charges for the export and import of goods and commodities to be transacted between two countries.
The provision of paragraph I above shall not, however apply or the grant to continuance of any:
1. Advantages accorded by either Party to contiguous countries:
2. preferences accorded by either Party to the goods and commodities which are imported under aid programmes extended to either Party by any member state of the United Nations, its specialized Agencies or Subsidiary organs:
3. Preferences or advantages accorded by either Party to any third country existing on the date of the entry into force of this Agreement;
4. Advantages resulting from any customs union or free trade zone or regional arrangements of which either country may become a member;
5. Advantages accorded by virtue of multilateral economic agreement designed to liberalise international commerce; and
6. Prohibitions or restrictions imposed for the protection of public health or preservation of public morals or for the protection of plants or animal against disease, degeneration of extinction.

Article III

The trade between the two countries shall be conducted in accordance with their respective laws, regulations and procedures relating to export and import of goods and commodities and on the basis of the contracts to be concluded between exporters and importers of the two countries.

Article IV

The two Contracting Parties agree that the price for the goods and commodities to be exported or imported under this agreement shall be fixed by mutual agreement between the exporters and importers of the two countries.

Article V

All payments in connection with exportation or importation of the goods and commodities as well as other payments shall be effected in United States dollars, Pounds Sterling or any such other convertible currencies as may be mutually agreed upon between the two Contracting Parties. Article VI

The two Contracting Parties agree to explore ways and means and take necessary steps for the most convenient and economical transportations of commodities between the two countries.

Article VII

Mercantile ship under the flag of either Contracting Party shall enjoy the most favoured nation treatment granted by their respective laws, rules and regulations to ship under any third country�s flag. This principle shall not, however, apply to ship engaged in the coastal trade.

Article VIII

The two Contracting Parties shall accord to the other, in respect of capital investments, joint ventures and other forms of economic cooperation aimed at promotion trade between the two countries, treatment no less favourable than that accorded to any third country.

Article IX

The two Contracting Parties shall observe the convention on Transit Trade of Land Locked states, signed in New York on July 8, 1965, as well as the relevant resolutions and recommendations of UNCTAD Conference of the same subject, in so far as they facilitate the trade between the two countries and to the extent that they are not in conflict with the existing treaty and international obligations of either Contracting Party.

Article X

In order to facilitate the implementation of this Agreement the two Contracting Parties agree to consult each other at the request of either Contracting Party in as short time as possible, but not later than forty-five (45) days from the date of receipt of such request in respect of matters connected with trade and payment between the two countries.

Article XI

This Agreement shall come into force from the date of its signing and shall remain valid for a period of two (2) years after which it will be automatically extended for another period of two years until and unless one of Contracting Parties gives a written notice to the other Contracting Party ninety (90) days before expiry of the Agreement for termination.
The provisions of this Agreement shall be applied to all contracts concluded under this Agreement but not fully executed as for the date of its termination.

Done at Seoul on May 6, 1971 in duplicate in the Nepali, Korean and English languages, all texts being equally authentic. In case of any difference in interpretation, the English text shall prevail.

Pushker N. Pant
For His Majesty�s Government of
Nepal

Suk Hyun Yun
For the Government
of the Republic of Korea

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Schedule "A"

Exportable Commodities of the Republic of Korea

Fish and Fish preparations
1. Canned fish
2. Dried Sea products
Fruits and Vegetables
1. Fresh fruits
2. Canned fruits
Beverages
1. Beer
Textiles, Textile Fibres and and their waste
1. Raw Silk
2. Cotton Textiles, Yarn
3. Woolen textile, Yarn
4. Nylon and other synthetic textiles and yarn
5. Silk fabrics woven
6. Knitted goods
7. Apparel goods
Fertilizers
1. Urea fertilizer manufactured
2. Nitrogenous fertilizer manufactured
3. Crude fertilizer
Minerals and Metal Products
1. Silver concentrated
2. Lead concentrates
3. Zinc concentrates
4. Iron ore and concentrates
5. Tungsten concentrates
6. Molybdenite
7. Amorthousgraphite
8. Pyrophyllite
9. Talc
10. Flourite
11. Feldspar
12. Kaolm
13. Silica Stone
14. Silica Sand
15. The other metallic and non-metallic minerals
Petroleum and petroleum products
Fixed vegetable oil and fats
Chemical elements and compounds
1. H 1. Menthol
2. Salphonamides (O.T.S.A.)
3. Dyeing tanning and colouring materials
Medical and Pharmaceutical
1. Ginseng and its products
2. Medical and Pharmaceutical products
Rubber manufactures
1. Rubber tyres and tubes for vehicles and aircrafts
2. Rubber contraceptives
3. Other rubber products
Wood and cord manufactures
1. Plywood
Paper, paperboard and manufactures there of
Non-metallic mineral manufactures
1. Glass products
2. Ceramics
3. Tiles
4. Cement
Iron and Steel
1. Bars, Rods, Tubes, Pipes, Fittings, etc. of Iron and Steel
2. Galvanized iron sheets
3. Plate
4. Stainless steal sheets
Articles of Aluminium
1. Domestic Utensils
Electrical Machinery, Apparatus and Appliances
1. Refrigerator
2. Watt Hour Meter
3. TV sets
4. Telephone
5. Switch Board for telephone
6. Radio and transistors
7. Radio components
8. Electric Fans
9. Electric lamps
10. Dry Battery
11. Electric transformers
12. Insulated Wire Cables
13. Other electrical goods
Transport equipments
1. Parts for motor vehicles
2. Bicycles and other cycles
Sanitary, Plumbing, heating and Lighting fixture and fittings
Machineries and engines
1. Internal Combustion Engines other than for Aircrafts
2. Textile machinery
3. Sewing machines
Clothings and footwears
1. Stockings
2. Outer-garments
3. Under-garments
4. Footwears such as Shoes etc.
Office and Stationery supplies
1. Pens and pencils
2. Ball point pens
3. Fountain pens
4. Other office and stationery goods
Tobacco and Cigarettes
1. Tobacco leaves
2. Cigarettes
3. Cigarettes filters
Sugar, Sugar preparations and honey
Musical instruments
1. Pipe and Reed organs
2. Pianos
3. Other musical instruments
Plastic Materials, regenerated cellulose and artificial resins
Manufactured goods other than the listed
1. Clock and Watches, and parts there of
2. Spectacles & their frames
3. Telescope/Binoculars
4. Taxi meters
5. Brass Wares
6. Umbrella
Handicrafts
Agricultural products

Schedule "B"

List of Exportable goods from Nepal to the Republic of Korea

Minerals
Manufactured products
1. Jute goods
2. Stainless Steel utensils
3. Synthetic fabrics
4. Carpets
5. Handicrafts
Foods stuff
1. Canned fruit and fruit preserves
2. Maize
3. Pulse, Linseed, Rape seed
4. Wheat flour
Other Raw Materials
1. Wool
2. Timber
3. Medicinal Herbs
4. Oil-Seeds
5. Mica
6. Skins
7. *Musk
Miscellaneous
1. Readymade garments
2. Jute waste
3. Wool Waste
4. Human Hair
5. **Cow Bezoards
6. Buffalo biles
Goods as may be mutually agreed upon from time to time

* Export banned, since October 1973
** Export banned

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