TRADE AGREEMENT' BETWEEN THE GOVERNMENT OF INDIA AND THE IMPERIAL GOVERNMENT OF IRAN
Tehran, 16 August 1962
The Government of India and the Imperial Government of Iran,
RECALLING the provisions of the Treaty of Commerce and Navigation between the Government of India and the Imperial Government of
Iran, signed on the 15th December, 1954 2, especially Articles 1, 9, 10, 11 and 13, as reproduced in the Annexure attached to this
DESIRING to further strengthen and promote commercial relations between the two countries
Have agreed as follows
The two Governments recognising the needs and requirements of each other in the context of their developing economies undertake to
explore all possibilities for expansion and promotion of trade between the two countries on the basis of mutual advantage.
With regard to commodities mentioned in Schedules A and B attached to this Agreement, the two Governments shall facilitate imports
and exports to each other's territories in accordance with their respective laws, regulations and procedures. The export and or import
of goods not included in Schedules A and B will also be permitted in accordance with laws, regulations and procedures in force in
either country, from time to time.
The two contracting parties undertake to grant import/export licences in accordance with their respective import/export and foreign
exchange rules and regulations.
In order to facilitate the implementation of this Agreement, the two Governments shall consult each other as and when necessary and
also review the working of the Agreement after six months of the date of the Agreement on request of either party.
Each Government shall give full consideration to suggestions that may be made from time to time by the other Government with a view
to the development and expansion of commerce between the two countries.
The two Governments agree to accord, subject to their respective laws and regulations, reasonable facilities for. the holding of
trade fairs and exhibitions. The two Governments also agree to accord facilities for the display of goods in the permanent exhibition
centres of one Government in the other country.
The Agreement shall take effect from the date of signature, and shall remain in force for a period of one year.
DONE at Tehran, this sixteenth day of August 1962 A.D. in two original copies in the English language, both of which are equally
For the Government of India.
For the Imperial Government of Iran.
Extracts of Articles No. 1, 9, 10, 11 and 13 from the Treaty of Commerce and Navigation between the Imperial Government of Iran and
the Government of India, as referred to in the preamble to the Trade Agreement signed on the 16th August, 1962.
Subject to reciprocal treatment, the nationals of either contracting party may freely enter the territory of the other party and,
in conformity with laws and regulations in force therein, engage in and carry on commerce, industry, trade and also any profession,
not appropriated to nationals of that party; and subject to such reciprocal treatment, the treatment accorded to the nationals of
either contracting party shall not be less favourable than that accorded to the nationals of the most favoured nation.
All commercial enterprises such as industrial, trading, banking, insurance or financial corporations owned or controlled by the nationals
of either contracting party may be constituted in the-territory of the other contracting party with due regard to the relevant laws
and on the basis of reciprocal treatment. Such corporations shall in all respects be accorded treatment not less favourable than
that accorded to the corporation of any third party.
The contracting parties shall, subject to the provisions of Article 11, grant each other complete most favoured nation treatment,
that is to say, with respect to customs duties and charges of any kind imposed on or in connection with importation or exportation
or imposed on the international transfer of payments for imports or exports and with respect to the method of levying such duties
and charges and with respect to all rules and formalities relating to the clearance of goods through the customs, any advantage,
favour, privilege or immunity granted by either contracting party to any product originating in or destined for any third country
shall be accorded immediately and unconditionally to the like product originating in or destined for the territory of either contracting
The contracting parties agree that the provisions of this Treaty with respect to the "Most Favoured Nation Treatment" shall not be
deemed to be contravened by the grant or continuance of :
(a) Advantages accorded or to be accorded by the contracting parties to contiguous countries
(b) Advantages resulting from any Customs Union or free trade area to which either of the contracting parties is or may
become a party.
(c) Preference or advantage accorded by either contracting party to any country, and subsisting on the date of this Treaty
or in replacement of such preference or advantages.
Subject to provisions of Article 11, each contracting party shall, in respect of duties of tonnage, harbour, pilotage, lighthouses
and other analogous duties levied in the ports of either contracting party, accord treatment not less favourable than that accorded
to the ships of any third country, and provide all possible facilities that it can reasonably accord with regard to the transport
of as large a proportion as possible of the imported and exported goods between the two countries by the ships of either contracting
party. The provisions of this Article shall not apply to coasting trade of either party.
LIST OF COMMODITIES AVAILABLE FOR EXPORT FROM INDIA TO IRAN
(a) Cotton, including cotton twists and yarns; Cotton manufactures including handloom cloth, hosiery and knitted garments.
(b) Woollen piece Goods.
(c) Silk, Art silks and Rayon fabrics.
(d) Hessian; Jute manufactures
Such as Tea; Coffee; Spices including pepper; Provisions, etc.; Cashew kernels; Confectionery; Sugar; Cane jaggery and Cane jaggery
powder (Indian our); Fruits,fresh and preserved, bottled and canned.
3. Agricultural products:
Such as Hydrogenated oils, i.e. Vanaspati or Vegetable ghee; Vegetable oils and oil-seeds;Essential oils; Tobacco (raw and unmanufactured).
4. Chemical products:
Such as Chemicals; Pharmaceuticals; Drugs and Medicines; Sera and Vaccines; Toilet requisites and perfumery; Paints, pigments and
varnishes; Soap (toilet and household);
5. Engineering goods:
Such as Diesel engines; pumps driven by Diesel engines and Electric motors; Sewing machines; Bicycles and bicycle parts; metal containers
and crown corks; Safety razor blades; Textile machinery such as Carding machinery and weaving looms; Machine tools; hand tools and
small tools; Sugarcane crushing machinery; Machinery for dehusking paddy; Flour and oil producing machinery; Printing machinery;
Small river craft; ball-bearings; Gliders; Agricultural implements; Automobile parts; Structurals
6. Electrical Goods:
Electric fans and their parts; Batteries (dry and wet); Electrical appliances and accessories such as conduit pipes, switches, bells,
holders, cut-outs etc; Electric bulbs and tubes; Generators; Radio receivers; Electric torches; Electric motors; Ebonite sheets;
Rods and tubes; Cables and wires; Transmission towers.
7. Household and Building Requirements:
Cement, Copper and Brass sheets; Window, door and other frames; GI. Pipes, and fittings; Household electrical fittings and fixtures;
utensils including stainless steelware; Cooking ranges; Heaters; Electric irons; Toasters; Kettles, etc.; Roofing tiles; Linoleum;
Sanitaryware; Manhole covers and plates; Hurricane lanterns; Kerosene stoves; Incandescent oil pressure lamps; Safes; strong boxes
and Roof fittings; Crockery.
Locks and padlocks; Cutlery; Bolts; nuts; Screws and Hinges, etc; Steel furniture and Hospital appliances; Scientific
instruments of all types; Weighing machines; Surgical and medical instruments.
9., Rubber Manufactures:
Tyres and tubes; Tyre retreading compound and Foam rubber; other manufactures.
10. Leather Manufactures:
Artificial leather goods.
11. Handicrafts and cottage industry products.
Core and coir products; Dyeing and tanning substances; lac and Shellac; Myrabolan andmyrabolan extracts; Glassware including tableware;
Glass bottles and bangles; Books and printed matter; Sports goods; Plastic goods; Stationery;
And such other items as may become available for export from time to time.
Note: Import of these commodities into Iran will be subject to the laws, regulations and procedures in force in that country.