Trade Agreement

Nepal's Trade & Transit Agreement

(Islamic Republic of Pakistan Trade Agreement signed in Pakistan on July 28, 1982)

The Government of Pakistan through the President of the Islamic Republic of Pakistan and His Majesty’s Government of Nepal (hereinafter referred to as the "Contracting Parties")

Being desirous of further strengthening and promoting the trade and economic relations between Nepal and Islamic Republic of Pakistan on the basis of equality and mutual benefit.

Have agreed as follows:

Article I

The Contracting Parties shall take all appropriate measures to facilitate and develop the trade between their two countries and encourage the concerned enterprises and organizations to explore the possibilities of short term and long term trade agreements and to conclude such contracts as may be agreed upon.

Article II

The trade between the Contracting Parties shall be conducted in accordance with their respective laws, regulations and procedures.

Article III

3.1 The Contracting Parties shall grant each other the Most Favoured Nation Treatment with respect to customs duties and formalities, taxes, fees and charges of any kind levied on export and import of goods and commodities between their two countries.

3.2 The provision of paragraph above shall not apply to the grant or continuance of any,

1. Privileges and facilities accorded by either Contracting Party to facilitate frontier trade,
   
   

2. Privileges and facilities accorded by either Contracting Party to any third country prior to the 15th August 1947 or accorded in replacement there of;
   
   

3. Privileges, facilities and advantages resulting from any agreement on customs union or free trade zone or from any regional or multilateral agreements to which either Contracting  Party is or may become the member
   
   

Notwithstanding the foregoing provisions, either Contracting Party may maintaining or introduce such restrictions as are necessary for the purpose of;

a. Protecting public morals,
b. Protecting human, animal or plant life,
c. Safeguarding the national treasures and artistic property,
d. Protecting security interests,
e. Protecting local industries and safeguarding domestic requirements,
f. Safeguarding such other interests as may be deemed necessary

Article V

Each Contracting Party shall, subject to the law and regulations in force in their country, encourage and facilitate the visits of businessmen or trade delegations and also help in holding trade fairs and exhibitions by enterprises or organizations of the other Contracting Party.

Article VI

The goods and commodities to be exported under this Agreement shall be of either country’s origin and shall not be re-exported to third country.

Article VII

The prices of goods and commodities to be exchanged under this Agreement shall be determined by mutual agreement between the trading parties.

Article VIII

8.1 The Contracting Parties shall explore the possibilities of improving trade relations between them.

8.2 The Contracting Parties shall explore the possibilities of operating chartered cargo flights between their two countries and accord to each other facilities within their competence to operate such flights.

8.3 The Government of Pakistan will allow use of warehousing facilities as available from time to time at Karachi port/airport of Nepalese cargo for movement to up-country in Pakistan and for trade with third country.

Article IX

All payments in connection with trade between the two countries shall be effected in freely convertible currency in accordance with the foreign exchange regulations in force from time to time in each country.

Article X

Subject to the laws and regulations in force, the Contracting Parties shall exempt the duties and charges on catalogues and other printed advertising materials related to goods and commodities which are subject to trade.

Article XI

Without restricting other mutual trade the Contracting Parties shall enter, by means protocols to this agreement, into such arrangements including lists of items to be imported or exported, banking, transportation etc. as may be considered by them to be necessary from time to time during the period of validity of this Agreement, to facilitate the movement of goods from one country to the other.

Article XII

The Contracting Parties shall consult each other and if necessary their representatives shall meet at the request of either Contracting Party at the convenient date and place for facilitating the smooth implementation of this Agreement and for settling any differences that may arise between them.

Article XIII

13.1 This Agreement shall replace the Trade Agreement between Pakistan and Nepal of19th October, 1962 and come into force from the date of its signing and it shall remain in force for a period of 5 years and shall be renewable automatically for similar periods thereafter unless terminated by either Contracting Party giving three months written notice to the other.

13.2 This Agreement may be amended or altered by mutual consent of the Contracting Parties.
Done in Islamabad on Twenty-eight day of July, Nineteen Hundred and Eighty two, in two original copies in the English two, in two original copies in the English language both the tests being equally authentic.