Trade Agreement

Nepal's Trade & Transit Agreement

His Majesty's Government of Nepal and the Government of the Socialist Republic of Romania (hereinafter referred to as the "Contracting Parties"):

Being animate by the desire to develop the friendship and strengthen the trade and economic relations between the two countries on the basis of equality and mutual benefit:

Having in view the importance of ensuring of favourable conditions for the mutual access of national products of the other market of the Contracting Parties.

Desiring to contribute to the setting up of New International Economic Order: and

Being convinced of the importance and necessity for extension and diversification of trade relations and economic cooperation between the two countries:

Have agreed as follows:

Article I

The Contracting Parties shall take all appropriate measure to facilitate and develop trade between their two countries and agree to promote the exchange of goods between them.

Article II

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 each country. The said goods shall enjoy Most Favoured Nation Treatment with respect to customs duties and charges of any kind imposed on or in connection with importation or exportation, with respect to the methods of levying such duties, and charges and to the applicable rules, formalities and charges in connection with customs clearing operations and to the application of internal taxes or other charges of any kind imposed on or in connection with imported goods.

The Contracting Parties agree also to negotiate the mutual extension of tariff and non-tariff facilities in keeping with the existing international understandings accepted by the two Contracting Parties.

Article III

According to the provisions of Article 2 of this agreement any advantages, favours privileges or immunities granted by either of the Contracting Parties to import or export of any product origination in the territory of a third country or destinated for its territory shall be accorded immediately and un-conditionally to the like products originating in the territory of the either Contracting Party and destined to by imported into the territory of the other.

Article IV

The provisions of Article 2 and 3 shall not, however, apply to the grant or continuance of any of the following:

1. Advantages accorded by either Contracting Party to contiguous countries with the purpose of facilitating frontier trade:
2. Advantages derived from customs union or other agreements of free trade:
3. Advantages accorded by virtue of preferential multilateral economic agreements relating to international commerce to which the other country is not Contracting Party.

Article V

The Contracting Parties shall not apply in their mutual trade quantitative restrictions and similar measures, excepting the cases when such restrictions are applied to similar goods of any third countries, under the same conditions.

Article VI

The Contracting Parties not to proceed through any consular formalities for the goods originating or destined to the territory of the other country.

Article VII

The exchange of goods between the two countries shall be conducted in accordance with the respective laws, regulations and procedures in force in each country relating to import and export of goods and on the basis of contracts being concluded between the juridical and physical persons of the Kingdom of Nepal juridical persons of the Socialist Republic of Romania, authorized to engage in foreign trade activities.

Article VIII

The Contracting Parties, through the competent authorities of both countries shall issue the necessary licences for export and import of commodities mentioned in Schedule "A" and "B" annexed to this agreement, which are indicative and not exhaustive in conformity with the lawa, rules and regulations in force in their respective countries.

Article IX

The prices of goods supplies under this agreement shall be fixed mutual agreement between the exporters and importer of their two countries.

Article X

The following shall be exempted from the customs duty, taxes and other export and import charges in accordance with the laws and regulations in force in their respective countries.

1. Materials and equipments imported under economic and technical co-operations to be used in governmental projects agreed by contracts or other understandings between the partners of the two countries:
2. Goods temporarily imported for exhibitions and fairs:
3. Tools and equipments required for assembly and construction purposes which are temporarily imported under special arrangements:
4. Goods to be processed and/or finished, temporarily imported under special permits, provided that such goods are subsequently exports:
5. Catalogues, leaflets and other advertising materials relating to goods which are the subject of trade between the two countries.

Article XI

In order to promote the object of this agreement, the Contracting Parties shall encourage and facilitate in:

1. Fixing up commercial connection between the economic units, enterprises and firms or the two countries.
2. Organizing and participating in general or specialized commercial fairs and exhibitions in the respective countries:
3. Negotiating and conclusion of understanding, arrangements and commercial contracts, especially on long terms between economic units, enterprises and firms of the two countries:
4. Exchange of commercial and industrial representatives and exports in relatives fields of the two countries:

Article XII

The goods imported by either of the two countries under this agreement shall not be re-exported to third countries, except with the prior consultation of the two Contracting Parties.

Article XIII

All payments in connection with exportation or importation of goods as well as other nature of payments between the two countries shall be effected in any freely convertible currency in accordance with foreign exchange rules and regulations of the respective countries.

Article XIV

The Contracting Parties agree to set up an intergovernmental committee in order to examine any issue that may arise in the course of the implementation of the provisions of this agreement and to find ways and means for the further expansion of trade and economic and technical co-operation between the two countries.

The Committee shall meet on request by either party at a place and time to be mutually agreed upon but not later than 45 days from the date of receipt of such request.

Article XV

Any eventual disputes in connection with the interpretation or application of the provisions of this agreement shall be settled by the two Contracting Parties on the occasion of meeting of the Nepalese-Romanian Intergovernmental Committee for foreign trade and economic and technical co-operation as well as by mutual consultation.

Article XVI

No provision of this agreement shall be construed to prove the adoption and enforcement by either Contracting Party of measures necessary to protect public morals, human, animal or plants life of health or industrial, literary or artistic property and the security of its own territory or in pursuance of international conventions whether already in existence or concluded hereinafter in which it is a party.

Article XVII

This agreement shall come into force provisionally on the date of its signature and finally from the date of the exchange of instruments of approval or ratification of this agreement by the Contracting Parties.

This agreement shall remain in force for a period of ten years.

If neither party shall have notified the other in writing to terminate this agreement at least six months before its expiry, the validity of this agreement shall be automatically extended for period of another five years and thus thereafter.

Article XVIII

After the expiry of this agreement, its provisions shall be further applied in respect to all contracts concluded under this agreement, but not fully executed as on the date of the termination.

Done Kathmandu on January, 1984 in two original copies, in English and Romanian language, both texts being equally authentic.

Schedule "A"

Indicative List of Export from the Kingdom of
Nepal to the Socialist Republic of Romania

1. Jute and jute goods
2. Leather and leather products
3. Spices (including dry ginger, large cardamom, turmeric, etc.)
4. Tobacco
5. Oilseeds and oilcakes
6. Medicinal herbs
7. Readymade garments
8. Woolen carpets
9. Handicrafts
10. Tea
11. Pulses (lentils)
12. Straboard
13. Furniture and other wooden products
14. Minerals
15. Dairy products
16. Beverage and spirits
17. High grade rice
18. Canned fruits.

Schedule "B"

Indicative list of Exports from the Socialist
Republic of Romania to the Kingdom of Nepal

1. Equipment for building and road building constructions including spare parts, other machinery including transport and spare parts there of.
2. Electrical, equipments including power transformers, substation equipments, conductors and cables, power generating sets, matering penels, pumps, refrigerators etc.
3. Tools and workshop equipments including hand tools, machine tools, woodworking machinery, welding converters etc.
4. Ball, roller and taper bearings.
5. Power electrical cables (insulated)
6. Automatic equipment and installations.
7. Telephone exchanges and telephone sets.
8. Machinery and equipments for light industry and wood processing industry.
9. Motor cars, four/wheel/drive cars, buses, utility vans.
10. Tractors and assembling line.
11. Fertilizers.
12. Chemical fibres and yarns.
13. Soda Ash.
14. Caustic soda.
15. Dyes, chemicals and paints including PVC.
16. Tyres and tubes.
17. Pharmaceutical products.
18. Mineral oils
19. Aluminium products.
20. Cotton and cotton mixed textiles