Trade Agreement

Nepal's Trade & Transit Agreement

His Majesty's Government of Nepal and the Government of the Socialist Federal Republic of Yugoslavia, being animated by the desire of further developing and strengthening friendly relations between the two countries, resolved to establish, facilitate and promote trade relations between Nepal and Yugoslavia, have on the basis of equality and mutual benefit, agreed as follows: -

Article I

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

Article II

The Contracting Parties shall facilitate transit of goods, by all means of transport, through their territories.

Article III

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 any case in the said goods shall enjoy full most-favoured-nation treatment with respect to customs duties and charges of any kind imposed on the imports or exports or in connection therewith, with respect to the methods of levying such duties and charges, with respect to the rules formalities and charges in connection with customs clearing operations and with respect to the application of internal taxes, or other charges of any kind imposed on or in connection with imported goods.

Article IV

Any advantage, favour, privileges or immunity granted by either by the Contracting Parties to import or export of any product originating in the territory of a third country or destined for its territory, shall be accorded immediately and unconditionally to the like products originating territory of either of the Contracting Parties and destined to be imported into the territory of the other.

Article V

The provision of Article III and IV shall not, however, apply to the grant or continuance of any;

1. advantages which are or may be hereafter accorded by either Contracting Party to contigious countries with the purpose of facilitating frontier trade;
2. advantages derived from customs unions or other agreement on customs free trade;
3. advantages accorded by multilateral economic agreement relating to international commerce;

The following shall be exempt from the customs duty, taxes and other export and import charges.

1. materials and equipments required for tests experiments as well as materials and equipments imported under the technical co-operation;
2. goods temporarily imported for exhibition and fairs;
3. tools and equipment 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 exported;
5. models and samples of non-commercial value, catalogues, advertisements and other papers relating to goods which are the subject of trade;

The export of goods from Nepal to the Socialist Federal republic of Yugoslavia and from the Socialist Federal Republic of Yugoslavia to Nepal during the validity of this Agreement shall be carried out in accordance with the indicative schedules attached hereto or as may be agreed upon between the two Governments from time to time.

Article VIII

The exchange of goods 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 being concluded between the juridical and physical persons of the two countries.

Article IX

Juridical and physical persons of either Contracting Parties shall enjoy the most-favoured-nation treatment in respect of personal protection of property when effecting commercial activities in the territory of the other Contracting Party provided that the enjoyment of this treatment shall be subject to the laws and regulations of such other Party which are generally applicable to all foreigners alike.

Article X

The trade between the two countries shall be based, as far as possible, on the principle or equilibrium. All payments accruing from trade exchange and services rendered pursuant provisions of this agreement shall be effected in convertible currency.

Article XI

In order to facilitate the implementation of this Agreement the two Contracting Parties shall consult each other as and when necessary and also review the working of this Agreement.

For this purpose representatives of both Parties shall meet on request by either Party at a place and time to be mutually agreed upon.

Article XII

Nothing in this Agreement shall be construed to prevent the adoption and enforcement by either Party of measures necessary to protect public morals, human, animal or plant life or health and for the security of its own territory.

Article XIII

After the expiration of the present Agreement its provision shall apply mutatis mutandis to all the contracts concluded during its validity and not executed by the time of the expiration of this Agreement.

Article XIV

This present Agreement shall come to force from the date of exchange of the instruments of ratification. It shall be, however provisionally applicable from the date of its signature. It shall remain in force for a period of two years and shall continue in force for further periods of one year thereafter, unless terminated by either party by giving at least three months notice in writing before the expiry of the said period of two years or the extended period

Done in two copies in the English language, both being equally authentic, at Kathmandu, on this fifth day of September, 1965.

Indicative list of commodities to be exported from the Socialist Federal Republic of Yugoslavia to the Kingdom of Nepal

1. Tool and equipment for workshop and services
   
2. Complete installation and individual machines for
   
3. Various industrial projects
   
4. Pumps and hydraulic installations
   
5. Steam-rollers
   
6. Lorries and heavy vehicles
   
7. Passenger cars
   
8. Diesels and petrol engines
   
9. Civil engineering equipment and tools
   
10. Electromotors and electric Installations and Equipments
    
11. Cables Conductors and Electric Installations and Equipment
    
12. Various instruments
    
13. Rolled and drawn steel products (Sheets, sections, wire, etc.)
    
14. Cast pipes and fittings
    
15. Asbestos, cement pipes and fittings
    
16. Agricultural machines, tools and implements
    
17. Tanning agents
    
18. Chemical products
    
19. Explosives
    
20. Nedicaments and pharmaceutical raw materials
    
21. Paints and varnishes
    
22. Medical and veterinary equipment and instruments
    
23. Laboratory equipment
    
24. Plastic products
    
25. Products of paper industry (cigarette paper, writing paper, cardboard, etc.)
    
26. Textiles and textile products
    
27. Rubber products
    
28. Sanitary equipment and installations
    
29. Barbed and corrugated wire
    
30. Porcelain tableware
    
31. Electrical appliances for household and catering services
    
32. Wireless sets, phonographs and loudspeakers
    
33. PTT equipment
    
34. Spare parts for machines and vehicles
    
35. Grawler, tractors and other earth moving equipments
    
36. Photographic goods
    
37. Petroleum products, Roller Bearings
    
38. Electronics
    
39. Diesel generating sets
    
40. Ropeway
    
41. Mining and metalurgical equipments
    
42. Galvanized iron sheets and structural iron
    
43. Cement
    
44. Miscellaneous

Indicative list of commodities to be exported from the Kingdom of Nepal to the Socialist Federal Republic of Yugoslavia

1. Jute and jute products
   
2. Hides and skins
   
3. Oil seeds and cakes-mustard, linseed and ground nut
   
4. Minerals and ores
   
5. Rice
   
6. Tea
   
7. Handicrafts-Brass and wood products
   
8. Medicinal Herbs
   
9. Footwear
   
10. Hard timber
    
11. Raw wool and woolen yarn
    
12. Crushed Bones
    
13. Dried Ginger