Trade Agreement

Nepal's Trade & Transit Agreement

The two Contracting Parties shall take all measures necessary for promoting trade between the two countries as per lists;A" and;B" which are in integral part of this Agreement.

Article II

1. 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 the import of commodities to be transacted between the two countries.
2. The provision of Article 2 (1) shall not however, apply to the grant or continuance of any:-
   1. Advantages accorded by either of the Contracting Parties to contiguous countries with the purpose of facilitating frontier frontier trade.
   2. Advantages derived customs unions or other agreements of customs free trade to the Kingdom of Nepal.
   3. Advantages accorded by multilateral economic agreement relating to international commerce to the Kingdom of Nepal.
   
   
   

The trade 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 to be concluded between the juridical and physical persons of the Kingdom of Nepal and the foreign trade corporations of the Democratic people’s Republic of Korea.

Article IV

The contracts concluded during the validity of this agreement shall remain effective even after the expiry or termination of this agreement.

Article V

1. all payment in connection with importation and exportation of the goods and commodities shall be effected in pound Sterling or any other convertible currency as may be mutually agreed upon.
2. In case of any change in the gold parity of pound Sterling (at present one Sterling pound is equal to 2.13281 gram of fine gold), all prices of the commodities to be exchanged under the Agreement shall be adjusted in proportion to the ratio of the change in gold parity on the day when such change is made.
3. For this effective implementation of this article the Nepal Rastra Bank and the Foreign Trade Bank of the Democratic people’s Republic of Korea shall make necessary technical arrangement regarding payments.

The two Contracting parties agreed that the price for the goods and commodities to be exported or imported under this Agreement shall be fixed by mutual agreement between the physical and juridical person of the Kingdom of Nepal and the foreign trade corporation of the Democratic People’s Republic of Korea. This Agreement shall come into force from the date of its signature and shall remain valid for a period of two years. In case neither of the Contracting parties shall have given the other party a written notice three months before the expiration of this Agreement to terminate this Agreement it shall continue in force for another period of two years. Done in Pyongyang on December 11, 1970 in Duplicate in Nepali, Korean and English languages all the texts being equally authentic, in case of any difference in interpretation the English text shall prevail.

LIST "A"

Commodities to be exported from the Kingdom of Nepal to the Democratic People’s
Republic of Korea

1. Minerals
2. Manufactured products:
   Jute goods
   Stainless steel utensils
   Synthetic fabrics
   Carpets
   Handicrafts
3. Foodstuffs:
   Canned fruit fand fruit preserve
   Maize
   Rice
   Pulse, linseed, rapeseed
4. Other raw materials:
   Wool
   Timber
   Medicinal Herbs
   Oil seeds
   Sole leather
   Mica
   Skins
   Bristle
   *Musk
5. Miscellaneous:
   Readymade garments
   Jute waste
   Wool waste
   Human hair
   Yak hair and tails
   **Cow bezoards
   Buffalo biles
6. Goods as may be mutually agreed upon from time to time

* Export banned, since October 1973
**Export banned

LIST "B"

Commodities to be exported from the Democratic People’s Republic of Korea
To the Kingdom of Nepal

1. Machinery and parts
2. Trucks, lorries, buses and their spare parts
3. Tractors, buldozars, excavators and cranes
4. Hospital equipments and accessories
5. X-Ray plates
6. Water pipes of different dimension
7. Agricultural implements and tools
8. Metal products
9. Iron and steel
10. Chemical
11. Fertilizer, insecticide and pesticide
12. Cement
13. Cotton textiles
14. Milk powder and other baby food
15. Koryo Insam and Insam products
16. Raw materials
17. Goods as may be mutually agreed upon from time to time