TRADE AND PAYMENTS AGREEMENT BETWEEN THE GOVERNMENT OF INDIA AND THE RUMANIAN PEOPLE'S REPUBLIC
Bucharest, 14 May 1959
A Trade and Payments Agreement between the Governments of India and Rumania was signed on the 14th May, 1959, in Bucharest. The text
of the Agreement and letters exchanged in this connection are reproduced below for general information
The Government of the Rumanian People's Republic and the Government of India, animated by the desire to develop trade relations between
the two countries on a balanced basis and to increase the volume of trade between them to as high a level as is possible have agreed
upon the following
1. Both Governments will in every possible way develop and strengthen the trade relations between the two countries on the principles
of equality and mutual benefit. They will study and, with the utmost goodwill, take decisions on the suggestions which either of
them would like to present for the consideration of the other with the purpose of achieving closer economic relations.
2. (a) For the goods imported and exported from one country to the other, both Governments pledge themselves to grant maximum facilities
allowed by their respective laws, rules and regulations. The total value of the imports will be equal to the total value of the exports
effected by either country.
(b) The said goods will enjoy full most-favoured-nation treatment in respect of customs duties and charges of any kind imposed on
imports or exports or in respect of the methods of levying such duties and charges and with respect to rules, formalities and charges
in connection with customs clearing operations.
(c) Further, the two countries will grant each other in respect of the issuance of import and export licences treatment no less favourable
than that granted to any other country in the Soft Currency Area or to any other country with which the contracting country makes
payments in its own national currency.
(d) Any advantage, favour, privilege or immunity granted by either of the Contracting Parties to any product originating in the territory
of a third country or destined for its territory, shall be granted immediately, and unconditionally to the like product originating
in the territory of either of the Contracting Parties or destined to be imported into its territory.
(e) The above provisions may be subject to further review in the event of either party being desirous of doing so as provided for
in Article XII.
3. The provisions of the above clauses shall not, however, apply to the grant of continuance of any
(a) advantages accorded by either Government to contiguous countries for the purpose of facilitating frontier traffic;
(b) preferences or advantages accorded by India to any third country and existing on the 23rd March 1954 or in replacement of such
preferences or advantages that existed prior to the 15th August 1947.
The export of goods from the Rumanian People's Republic to India and from India to the Rumanian People's Republic, during the period
of validity of the present agreement will be carried out in accordance with the schedules "N' and "B" to be agreed
upon between the two Governments for every calendar year.
The goods agreed upon for export from the Rumanian People's Republic to India and from India to the Rumanian People's Republic during
the first year of the present agreement are set out in the attached schedules "A" and "B" respectively.
The import and export of the goods stipulated in Article II will be carried out in accordance with the export, import and foreign
exchange regulations in force in either country and ' on the basis of contracts to be concluded between the Rumanian Foreign Trade
enterprises, on the one side, and the Indian physical and juridical parties, including Indian State-owned Organisations, on the other.
The provisions of the present agreement do not affect the rights of the Rumanian Foreign Trade Enterprises and the rights of the Indian
physical and juridical parties subject to the import, export and foreign exchange regulations in force in both the countries of concluding
commercial transactions concerning the import or export of goods not included in the schedules "A" and 'S".
Both Governments will render all possible assistance for the export and import of the goods mentioned in the Schedules 'A' and S'
as well as for the goods to be exported and imported under the transactions referred to in Article IV.
All payments between the Rumanian People's Republic and the Republic of India, described in Article VII, will be effected in non-convertible
For this purpose, the State Bank of the Rumanian People's Republic will maintain a Central Account with the Reserve Bank of India
and one or more accounts with one or more commercial banks in India, authorised to deal in foreign exchange.
(1) (a) The Central Account, maintained by the State Bank of the Rumanian People's Republic with the Reserve Bank of India, will be
used for depositing the rupee holdings of the Rumanian party and for replenishing the accounts of the State Bank of the Rumanian
People's Republic with the authorized Indian Commercial Banks and for operating the technical credit.
(b) The accounts maintained by the State Bank of the Rumanian People's Republic with the Indian Commetcial Banks will be used for
carrying out all other operations mentioned in Article VII.
(2) (a) The Central Account will be replenished by transfers of funds in Indian rupees from the accounts maintained by the State Bank
of RPR with the Indian Commercial Banks and by receipts under the technical credit.
(b) The accounts with the Commercial Banks will be replenished by transfers of funds from other similar accounts and from the Central
The payments permitted in accordance with the Indian Foreign Exchange Control Laws and Regulations will be effected on the-basis 'Of
this Agreement to the physical and juridical persons residing in the Rumanian People's Republic by the physical and juridical persons
residing in India, by crediting the amount of such payments to the accounts of the State Bank of the RPR with the Commercial Indian
Likewise, the payments which are to be effected by the physical and juridical persons residing in the Rumanian People's Republic to
the physical and juridical persons residing in India in accordance with the Rumanian Foreign Exchange Control Laws and Regulations
will bo'effected by debiting the accounts maintained by the State Bank of the Rumanian People's Republic with the Commercial Indian
Banks, under the instructions of the State Bank of the Rumanian People's Republic.
The following payments between the two countries will be effected through the accounts mentioned in Article VI.
(a) Payments for goods imported and exported in accordance with this agreement;
(b) Payments connected with commercial transactions and covering insurance, freight (in case of transporting the goods in Indian or
Rumanian ships or planes), port charges, storage, forwarding expenses, inspection charges and bunkering, consular taxes, transit
and transhipment charges;
(c) Payments for distribution of films;
(d) Payments for technical assistance, including the maintenance of experts and technicians in India and for technical and other training
and specialization in the Rumanian People's Republic;
(e) Payments of expenses connected with tours of a commercial and cultural nature and of official delegations as well as other tours;
(f) Payments of expenses for the maintenance of the Embassy, diplomatic consulates and commercial representations;
(g) 'Payments resulting from periodical settlements of postal, I I telegraphical and telephone services;
(h)' Payments of fees and honoraries, taxes for licences and patents;
G) Payments. of subscriptions for newspapers, magazines and other publications;
0) Any other payments on which agreement may be reached between the Reserve Bank of India and the State Bank of the Rumanian People's
Republic including transfers from the non-convertible Rupee accounts of a third party.
The reciprocal commitments expressed in another currency than the Indian rupee will be converted in Indian rupees at the official
parity of that currency, in respect to the Indian rupee, in force on the day of the payment.
Any balance in the Rupee Accounts of the State Bank of the Rumanian People's Republic or any debt of the State Bank of the Rumanian
People's Republic in connection with the grant of technical credit will, upon expiry of this Agreement, be used during the ensuing
6 months for the purchase of Indian or Rumanian goods, as the case may be, or will be settled in such other way, as may -be agreed
upon' between the two Parties.
Mercantile ships of both countries, while entering, staying in or leaving the ports of either country, will enjoy the most favoured
facilities granted by their respective laws, rules and regulations to ships under third country's flags. The principle shall not,
however, apply to ships engaged in coastal navigation.
Both Governments will render all possible assistance for the shipping of the goods to be exported or imported under the present Agreement
from one country to the other as far as possible by Indian and Rumanian ships.
In order to facilitate the implementation of the Agreement, the two Contracting Parties agree to consult each other in respect of
matters connected with the trade and payments between the two countries.
For this purpose, the representatives of the two Governments will meet at the request of either party at a place and time, to be mutually
agreed upon, the meeting being held on a date within 45 days of the request.
The present Agreement will come into force on 14th May 1959 and will remain valid for a period of three years.
The Schedules 'A' and 'B' can be extended or renewed by letters exchanged between the two parties at the beginning of each calendar
The Agreement can be extended or renewed by negotiations between the two Contracting Parties, to be commenced three months prior to
DONE in Bucharest on the 14th day of May 1959, in two originals in the English language, both texts being equally authentic.
Sd/- A. TOMA
On behalf of the Government of the Rumanian People's Republic.
Sd/- D. SANDILYA
On behalf of the Government of India.
COMMODITIES FOR EXPORT FROM THE RUMANIAN PEOPLE'S REPUBLIC TO INDIA
1. Petroleum Products-- Kerosene Diesel oil Lubricating oils
2. Chemicals- Carbon black Calcium carbide Silicon carbide Caustic soda and Soda Ash Dyestuffs and intermediaries Aniline oil Oxalic
acid Acetyl-salicylic acid Salicylic acid Sulfanilamide Bismuth salts Catgut Silicagel Salicylates Bleaching earth, Acetic acid Pharmaceutical
vaseline Chemicals for oil drilling operation Electrode paste Zinc oxide Dibutylpthalate Various chemicals
3. Sawn Timber and Wooden Products, Newsprint Various kinds of paper and cardboard Stationery and office equipment Railway sleepers
4. Technical and Building Material- Cement, special grade Refractory materials Asbestos cement materials Window-glass mechanically
drawn, wired glass, opaque glass and ornamental glass. Glass wool Marble
5. Household Appliances- Glassware
6. Installations for Oil and Gas- Drilling outfits and oil equipment (including spare parts) pumping units Refinery equipment and
7. Mining Equipment.
8. Tractors, Agricultural Equipment and Accessories.
9. Road building Machines, including Road Rollers and Spare parts.
10. Electratechnical Equipment - Transformers Electric Motors Generators Porcelain insulators Electrical insulating material Electric
meters Electric tools, apparatus and appliances
11. Diesel Engines, Petrol Engines, Stearn Engines, Compressors, Pumps.
12. Machine Tools
Metal working machines and hydraulic presses Wood working machines Measuring instruments Electric and pneumatic hand-tools Welding
equipment and machine tools for workshops.
13. Cranes and Hoisting Equipment - Installations for Transport and spare parts, Rope ways.
14. Rolling Stock for Normal and Narrow Gauge
Locomotives including electric and diesel type wagons, tanks and accessories.
15. Ships and Vessels--River ships and sea ships for transport of goods Tug boats, steam driven tug boats, motor tug boats Barges,
tanks and freight barges Fishing boats, made of metal and of wood Motor boats Special ships Equipment spare parts for ships
16. Complete Installations and Industrial Equipment
Cement mills Brick factories Factories for fertilizers Flour milLs-parts Equipment for foodstuffs industry Equipment and machines
for chemicals and pharmaceutical industries Refrigerating machines and installations Machines for foundries, high furnaces, equipment
for rolling mills Textile machines.
17. Electric Power Plants (Hydraulic and Auxillary Equipment), Thermo-electric Power Plants
High tension network Distribution stations
18. Iron and Steel Material, including Tubes and Chains
Macaroni Salami Canned meat and fish Cheese Wines, cognac, liqueurs and non-alcoholic beverages.
20. Books, Magazines, Records, Printed Matter including Postage Stamps.
22. Handicraft and Cottage Industry Products.
COMMODITIES FOR EXPORT FROM INDIA TO THE RUMANIAN PEOPLE'S REPUBLIC
1. Spices, including pepper. 2 Coffee. 3. Sugar.
5. Cocoa beans.
6. Vegetable oils (cottonseed oil, linseed oil, groundnut oil, etc.)
7. Cashew nuts.
8. Shark oil.
9. Essential oils.
10. Pharmaceutical glycerine.
11. Bone powder.
14. Medical herbs.
15. Gum tragacanth.
17. Cotton, raw cotton waste.
18. Cotton products including yams.
19. Wool, raw.
20. Wool, waste.
21. Jute, raw.
22. Jute, products.
23. Sisal fibre.
24. Coir products.
25. Hides and skins, raw and semi-processed.
26. Tanned skins and leather products including footwear.
27. Tanning materials, myrobalan and extracts.
28. Iron ore.
29. Zinc ore.
31. Manganese dioxide.
32. Pig iron.
33. Ferro-alloys; ferro-chrome, ferro-manganese.
34. Borax and colemanite.
35. Boric acid.
37. Electric motors and pumps.
38. Handicrafts and cottage industry products.
39. Sports goods.
40. Cinema films.
41. Books, magazines, stamps.
Bucharest, 14th May, 1959
With reference to the Trade and Payments Agreement between the Government of India and the Government of the Rumanian People's Republic
concluded today, I have the honour to state that the understanding reached between ourselves is set out below :
With a view to developing further the trade relations between the two countries, the two Governments agree to provide facilities for
strengthening and expanding business contacts between the Indian State-owned Organisations and the Rumanian Trade Enterprises on
a basis of mutual benefit and observance of the commercial interests of the parties concerned.
Accept, Your Excellency, assurances of my highest consideration.
Sd/- D. SANDILYA,
Leader, Indian Trade Delegation.
H.E. ANA TOMA, Leader, Rumanian Trade Delegation.
Bucharest, 14th May, 1959
Dear Mr. SANDILYA,
I write to acknowledge receipt of your letter of today's date which reads as follows
I confirm that the above correctly sets out the understandng reached between us.
Sd/- ANA TOMA,
Leader, Rumanian Trade Delegation.
Mr. D. SANDILYA,
Leader, Indian Trade Delegation.