Trade Agreement

Nepal's Trade & Transit Agreement

His majestyss Government of Nepal and the government of Mongolia (hereinafter referred to as the " Contracting Parties")

Being desirous of promotion trade relations between the two countries on the basis of equality and mutual benefit. Have agreed as follows:-

Article I

The Contracting parties shall take all kinds of measured in order to expand and promote the trade between the two countries and encourage the exchange of goods and services on the basis of equality and mutual benefit.

Article II

The Contracting parties shall grant each other the most favoured nation treatment in respect of customs duties, charges of any kind, fees and the methods of levying such duties and charges as well as of rules and regulations on export and import of commodities.

Article III

The provisions of the Article 2 of the present Agreement shall not apply to the following:

1. Advantage accorded by either Contracting Party to its adjacent countries in order to facilitate border trade;
2. Favourable treatment or Preference, accorded under multilateral agreements, customs union, free trade area agreements as well as agreements on trade facilities, of which either Contracting Party is or may become a party.

1. The Contracting Parties shall encourage and render necessary assistance to their respective organizations companies, firms and individuals in their efforts to have a trade, exchange of delegations, conclusion and implementation of trade agreements and contracts between the two countries.
2. The export and import operations between the Contracting Parties shall be implemented on the basis of the contracts to be concluded between juridical bodies and individuals, authorized for external trade of the two countries and in accordance with the laws and regulations in effect in both countries.

The Contracting Parties shall facilitate to the extent possible each others participation in trade fairs to be held in either country, and in arranging trade exhibition of either country in the territory of the other on terms to be agreed between respective authorities.

Article VI

All payments between the two countries shall be effected in freely convertible currencies; if there is no other arrangement mutually agreed upon.

The Contracting Parties shall take all necessary measures to expedite the transportation of their commodities in the most proper and cheapest way.

Article VIII

The Contracting Parties shall consult each other, if necessary, in order to generate the proposals, aimed at broadening the trade relations between themselves and to settle down issues, which may arise from implementation of the present Agreement.

Article IX

This agreement shall come into force from the date of its signing and shall remain valid for a period of five years. Unless either Contracting Party wishes to terminate this Agreement by giving a three months notice prior to its expiry in writing, the Agreement shall automatically continue in force for further periods of five years.

Done in Kathmandu on January 29^th, 1992 in three originals in Nepali, Mongolian and English languages, all texts being equally authentic In case of any divergence, the English text shall prevail.