TRADE AND PAYMENTS AGREEMENT BETWEEN THE GOVERMENTS OF INDIA AND BULGARIA
New Delhi, 3 March 1960
The Government of India and the Government of the People's Republic of Bulgaria animated by the desire to develop economic and trade
relations between the two countries on a mutually advantageous basis and to increase the volume of trade between them to as high
a level as is possible, have agreed upon the following
1. (a) Both Governments will in every possible way develop and strengthen the economic and 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.
(b) For the goods imported and exported from one country to the other, both Governments will grant all facilities allowed by their
respective laws, rules and regulations. During the period of validity of this Agreement the total value of the imports will be equal
to the total value of the exports effected by either country. For this purpose and for periodic reviews, imports relating to the
contracts concluded and to be concluded on the basis of this and earlier Indo-Bulgarian Trade Agreements, will be taken into account
as and when payments are made.
2. (a) Each Contracting Party will, in so far as the same may be permissible under the laws in force in their respective territories,
grant to the citizens, commercial companies and organisations of the other Contracting Party all such facilities as may be reasonably
necessary for carrying on trade or other commercial activities in the territory of the Contracting Party, in accordance with the
laws and regulations in force in the territory of such Contracting Party.
(b) Both the Parties grant each other most-favoured-nation treatment in respect of customs duties and charges on any account imposed
on Imports, or exports, or in respect of methods of levying such duties and charges and in respect of rules, formalities and charges
in connection with customs clearing operations.
The above provisions shall not, however, apply to the grant, or continuance of any
(i) advantages accorded by either Party to contiguous countries for the purpose of facilitating frontier traffic;
(ii) preference, or advantages accorded by India to any country existing on the 18th April, 1956 or in replacement of such preferences,
or advantages that existed prior to the 15th August, 1947;
(iii) advantages resulting from any agreement for the establishment of any customs union or free trade area to which the Government
of Bulgaria or India may become a party.
The export of goods from Bulgaria to India and from India to Bulgaria during the period of validity of the present Agreement will
be carried out in accordance with the Schedules 'A' and T' to be agreed upon between the two Governments for every calendar year.
The goods agreed upon for export from Bulgaria to India and from India to Bulgaria during the first year of the present Agreement
are set out in the attached Schedules 'A' and S' 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 Bulgarian 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 Bulgarian 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 Schedules 'A' and ' B
Both Governments will render all possible assistance for the export and import of the goods mentioned in the Schedules Aand 'B' as
well as for the goods to be exported and imported under the transactions referred to in Article IV.
Payments of goods to be delivered within the framework of this Agreement and other payments enumerated in Article VII will be effected
in non-convertible Indian rupees. For this purpose
(a) The Bulgarian National Bank will maintain a Central Account with the Reserve Bank of India and one or more accounts with one 6r
more commercial banks in India, authorised to deal in foreign exchange.
(b) The Central Account, maintained by the Bulgarian National Bank
with the Reserve Bank of India, will be used for depositing the rupee holdings of the Bulgarian National Bank and for replenishing
the accounts of the Bulgarian National Bank with the authorised Indian Commercial Banks and for operating the technical credit.
(c) The accounts with the Commercial Banks will be used for all other operations.
(d) The Central Account will be replenished by transfers of funds from the accounts with the Commercial Banks and by receipts under
the technical credit accounts.
(e) The accounts with the Commercial Banks will be replenished by transfers of funds from other similar accounts and from the Central
The details of the procedure for operating the Central Account will be approved at the earliest practicable date between the Bulgarian
National Bank and the Reserve Bank of India.
The other payments mentioned in Article VI are including
1. Payments for goods imported and exported in accordance with this Agreement.
2. Payments connected with commercial transactions and covering insurance freight, if the transport of goods, in accordance with this
Agreement, is effected by Bulgarian or Indian ships, port charges (including customs charges, usual ships repairs, forwarding expenses,
storage, assembling, commissions, brokerage, interests, cost of advertising, bunkerage, etc.).
3. Payments of expenses connected with fairs and exhibitions.
4. Payments of expenses connected with tours of commercial and cultural nature.
5. Payments of expenses for the maintenance of the Legation, the Trade Representation and its branches of Bulgaria in India, and of
the Legation and the Trade Representation of India in Bulgaria.
6. Payments for technical assistance including the maintenance of experts and technicians and for technical and other training.
7. Payments for patents, licences, trade marks, copyright, court expenses, distribution and projection rights of films, etc.
8. All other commercial and non-commercial payments and any other payments.
Any balances in the Rupee Accounts of the Bulgarian National Bank or any debt of the Bulgarian National Bank in connection with the
grant of technical credit upon expiry of this Agreement be used for the purchase of Indian or Bulgarian goods, as the case may be.
After the expiry of twelve months, any balances outstanding will be settled in such a way as may be agreed upon between the two Parties.
Mercantile ships of both countries, while entering, staying in or leaving the ports or either country, will enjoy the most-favoured
facilities granted by their respective laws, rules and regulations to ships under third country's flag. This principle shall not,
however, apply to ships engaged in coastal navigation.
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.
The present Agreement will come into force with effect from Ist January, 1960 and shall remain in force for a period of three years.
The Schedules 'A' and 'B' can be extended, altered, or renewed by letters exchanged between the two Parties at the end of each calendar
DONE in New Delhi on the 3rd day of March, 1960, in two originals in the English language, both texts being equally authentic.
Sd/- K.R.F. KHILNANI
On behalf of the Government of India.
Sd/- K.R.F. KHILNANI
On behalf of the Government of the People's Republic of Bulgaria.
Sd/- 1. Popov,
GOODS FOR EXPORT FROM THE PEOPLE'S REPUBLIC
OF BULGARIA TO INDIA
1. Machinery equipment and spare parts, including metal working machine, forging, pressing machines, wood working machines, lathes,
hoisting and workshop transport machinery, air compressors etc.
2. HT. & L.T. apparatus
3. Electric generators and electric conducting equipment including insulators, fuse units etc.
4. Power cables
5. Electric motors (Fractional H.P.)
6. Diesel mine locomotives
8. Electric meters (three phased)
9. Capital goods
10. Laboratory instruments including electro-medical instruments
11. Soda ash
12. Ammonium bicarbonate
13. Sulphur powder (arsenic free)
14. Caustic soda
15. Antibiotics including biomycin, tetracycline (in bulk packets)
16. Calcium carbonate
17. Chemical fertilizers
18. Sodium nitrite
19. Dyestuff and intermediates
20. Sodium bicarbonate
21. Other chemicals including tanning materials
22. Pharmaceutical products, insecticides, chemical and preparations including serums and vaccirre$.
23. Raw silk
24. Non-ferTous metals including zinc
26. Crude medical herbs (permissible types)
27. Photographic paper.
GOODS FOR EXPORT FROM INDIA TO THE PEOPLE'S
REPUBLIC OF BULGARIA
1. Black pepper 2. Tea 3. Coffee 4. Vegetable oils (including linseed oil) 5. Essential oils 6. Shellac 7. Chemicals 8. Jute manufactures
9. Processed hides, tanned and serni-tanned goat,skin and salted goat skins 10. Linoleum 11. Sewingmachines 12. Leather manufactures
13. r ootwear 14. Cotton textiles and hosiery 15. Cotton yarn 16. Cotton waste 17. Woollen textiles and woollen hosiery 18. Raw Wool
19. Woollen waste 20. Coir products (including coir yarn and strings) 21. Cashewnuts 22. Opium 23. Handicrafts and handlooms 24.
Films (exposed) 25. Sports goods 26. Plastic goods including spectacle frames 27. Pharmaceuticals 28. Pig iron 29. Ligkt engineering
goods 30. Ropes for ships, 31. Medicinal drugs and herbs.