TRADE AND PAYMENTS AGREEMENT BETWEEN THE GOVERNMENT OF INDIA AND THE GOVERNMENT OF THE FEDERAL PEOPLE'S REPUBLIC
Belgrade, 13 October 1962
The Government of India and the Government of Federal People's Republic of Yugoslavia,
ANIMATED by the desire to develop economic and trade relations, on the long term basis 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
(a) Both Governments will endeavour in every possible way to 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
(b) For the goods imported and exported from one country to the other both Governments pledge themselves to 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, whether
on deferred payment terms, or on cash basis, relating to the contracts concluded and to be concluded on the basis of this and earlier
Indo-Yugoslav Trade Agreement, will be taken into account as and when payments are made. Likewise repayments of credit and interest
thereon will also be similarly taken into account.
2. (a) Each Contracting Party shall, insofar 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 shall grant each other the 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 with respect to rules, formalities
and charges in connection with customs clearing operations.
The above provisions shall not, however, apply to the granting, or continuance of any advantages accorded by either Parties to contiguous
countries for the purpose of facilitating frontier traffic;
(ii) preferences, or advantages accorded by India to any country and existing on the 24th July , 1953, 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 tariff free area to which the Government
of India or the Federal People's Republic of Yugoslavia may become a party.
The export of goods from India to Yugoslavia and Yugoslavia to India during the period of validity of the present Agreement will
be carried out in accordance with the Lists of Commodities W and 'B' attached to this Agreement.
The List of Commodities will be modified, enlarged, extended, or the goods more specifically stated and agreed upon between the
two Governments for each calendar year of the validity of the present Agreement in accordance with expressed desire of both Parties
to increase the volume of trade from year to year.
Trade 13 Oct. 1962
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 Indian physical and juridical
parties, including Indian State-owned organisations, on the one side and the Yugoslav Enterprises, on the other.
Both the Governments will render all possible assistance for the export and import of the goods mentioned in the. Lists W and S'.
In order to promote stable and increasing trade on a long term basis, the two Governments will examine and where feasible encourage
and render every possible facilities to the commercial organisations in their respective countries to enter into contracts for deliveries
of goods for a longer period.
All payments of a commercial and non-commercial nature between the Republic of India and the Federal People's Republic of Yugoslavia
will be effected in nonconvertible Indian Rupees.
For this purpose, the National Bank of the Federal People's Republic of YugoslaviA will maintain a Central Account with the Reserve
Bank of India and, at its discretion, one or more accounts in Indian Rupees with one or more commercial banks in India, authorized
to deal in foreign exchange.
Other Yugoslav banks, authorised to deal in foreign exchange shall open similar accounts with commercial banks in India in consultation
with the Reserve Bank of India.
1. (a) The Central Account, maintained by the National Bank of the Federal People's Republic of Yugoslavia with the Reserve Bank
of India, will be used for depositing the Rupee holdings of the National Bank of the Federal People's Republic of Yugoslavia and
for replenishing the accounts of the National Bank of the Federal People's Republic of Yugoslavia with the authorised Indian commercial
banks and for operating the technical credit.
(b) The accounts maintained by the National Bank of the Federal People's Republic of Yugoslavia and the accounts maintained by other-authorized
Yugoslav banks with the Indian commercial banks will be used for carrying out all other operations connected with the payments of
a commercial and non-commercial nature, as mentioned above.
2. (a) The Central Account will be replenished by transfers of funds in Indian Rupees from the accounts maintained by the National
Bank of the Federal People's Republic of Yugoslavia and other authorized Yugoslav banks 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, from the Central
Account and from Credit Repayment Account opened in terms of Credit Agreement dated 2 1st January, 1960.
3. (a) 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 Federal People's Republic of Yugoslavia by the physical
and juridical persons residing in India, by crediting the amount of such payments to the accounts of the National Bank of the Federal
People's Republic of Yugoslavia and other authorized Yugoslav Banks with the Indian Commercial Banks.
.(b) Likewise, the payments which are to be effected by the Physical and juridical persons residing in the Federal People's Republic
of Yugoslavia to the physical and juridical persons residing in India in accordance with the Yugoslav Foreign Exchange Control Laws
and Regulations will be effected by debiting the accounts maintained by the National Bank of the Federal People's Republic of Yugoslavia
and other authorized Yugoslav banks with the Indian commercial banks, under the instructions of the National Bank of the Federal
People's Republic of Yugoslavia or of authorised Yugoslav banks as the case may be.
The reciprocal commitments expressed in currency other than the Indian Rupee but payable in Indian Rupees will be converted into
Indian Rupees at the official parity of that currency, in respect of the Indian Rupee, in force on the day of the payment.
Any balances in the Rupee Accounts of the National Bank of the Federal People's Republic of Yugoslavia or balances of the authorized
Yugoslav banks or any debt of the National Bank of the Federal People's Republic of Yugoslavia in connection with the granting of
technical credit or debt, if any, of the authorized Yugoslav banks will, upon expiry of this Agreement, be used during the ensuing
9 months for the purchase of Yugoslav or Indian goods, as the case may be. After the expiry of this period any outstanding balances
will be settled in such a way, as may be agreed upon between the two Parties.
The provisions of the Convention and Statute on the International Regime of Maritime Ports and Protocol of Signature (Geneva, December
9, 1923) shall govern the mutual treatment of the merchant ships of the Contracting Parties. In particular, ships sailing under the
flag of either country shall in respect of bunkering and other services be accorded in the ports of both countries the same facilities
and the same treatment in respect of duties and taxes as are accorded to national shipping except that any concessions made to vessels
engaged in the coastal trade of either country shall not be admissible to ships of the other country.
As regards the treatment of crews, the captain and members of the crews of merchant ships of each Contracting Party will be accorded
the most-favoured-nation treatment by the competent authorities of the other Contracting Party.
With a view to facilitating the implementation of the present Agreement the two Contracting Parties have agreed to form a Joint
Committee which will review the progress of trade between the two countries, examine any difficulties which may arise and suggest
ways and means of overcoming such difficulties.
The Committee will meet twice a year if required or upon the request of either of the Contracting Parties, alternatively in either
Recommendations of the Joint Committee will be submitted to the Governments of the two Contracting Parties for their decision.
The present Agreement shall be implemented from 1st January, 3, and shall come into force upon the approval of the competent priorities
in each country and shall remain in force until 31st November, 1967.
This Agreement shall replace the Trade and Payments agreement between the two countries dated 21st January, 1960.
DONE at Belgrade, on the thirteenth day of October, 1962, in two originals in the English language, both texts being equally authentic.
On the behalf of the Government of I ndia
On behalf of the Government of the Federal People's Republic of Yugoslavia
GOODS AVAILABLE FOR EXPORT FROM YUGOSLAVIA TO INDIA
1 Hops and malts
2 Medical herbs
3 Petroleum products
4 caustic soda and heavy soda ash
5 Natrium sulphate
6 Seamless pipes chemicals for textile and leather industries
7 basic materials for dyes
8 Natural and synthetic tanning agents
10 Raw asbestos
11 glass bricks
13 special tool and alloy steel
14 lead steel
15 minimum wire rodsaponents for electricity meters
16 Non ferrous metals: lead, zinc copper mercury and bismuth.
17 Hydel and thermal power plants and related equipments
18 Textile machinery and accessories
21. Films, photo materials, cine films, photo paper etc.
22. Power, telephone and underground cables
23. Documentary and entertainment films
24. Electro-medical, veterinary and dental apparatus and instruments
25. Machine tools
26. Construction machinery
27. Cranes-industrial, floating, port, mobile, hand cranes and crabs
28. Complete industrial plants and equipment
29. Ships-passenger, cargo and tankers, light-house ships and equipment
31. Printed matter including books, periodicals and stamps
32. Miscellaneous goods
GOODS AVAILABLE FOR EXPORT FROM INDIA TO YUGOSLAVIA
1. Fruits, fresh, dried, processed and preserved and fruit juices and squashes
2. Cashew kernels and other nuts
4. Other spices
5. Oil cakes (de-oiled)
6. De-oiled rice bran
7. Frozen fish, prawns and shrimps
II. Beverages and Tobacco
III. Crude Materials, Inedible
11. Shellac and seed lac
12. Gums and resins
13. Hides and skins, raw, semi-processed and tanned
14. Raw furs
15. Cashew shell liquid
16. Turpentine oil, crude
17. Bees wax and other insect waxes, crude
18. Cotton raw, cotton waste, cotton linters
19. Wool, raw or washed
20. Wool waste
21. Coir, fibres, yarn and other products.
22. Palm fibres and yarn
23. Animal bristles and hair
24. Vegetable fibres for brushes and brooms
25. Horns and hoofs
IV. Minerals And Allied Materials
26. Mica and micaceous wagites
28. Chrome ore
29. Iron ore
30. Kyanite ore
31. Manganese ore
32. Manganese dioxide
33. Ferro manganese
34. Pig iron
V. Animal and Vegetable Oils and Pats
35. Shark oil
36. Vegetable oils (non-essential)
37. Soap stone
38. Essential oils
39. Crushed bones and bone grist
40. Animal albumen
41. Tanning substances including myrobal , myrobalan extracts and catechu
42. Liquid chlorine
43. Hydrogen peroxide
45. Coke-oven byproducts
46. Drugs, medicines and medicinal herbs
47. Coal tar, dye-stuffs
48. Paints and varnishes
49. Chemicals not otherwise specified.
VII. Manufactured Goods Classified Chiefly By Materials
50. Leather and leather manufactures
61. Cotton piece goods, cotton yarns
52. Jute manufactures
53. Silk fabrics ( silk and art silk fabrics)
54. Woollen fabrics
55. Cordage and ropes
56. Other textile products
57. Sports goods
58. Rolled steel
59. Metal manufactures
60. Rubber Tyres and Tubes
61. Cosmetics and Toiletries
62. Indian handicrafts and cottage industry products e.g. handloom (cotton and silk)
artistic silver, brass and bidri products, ivory articles, wood carvings, etc.
IX. Miscellaneous Items
63. Animals, living including wild animals
6 4. Sundry timbers
65. Bird feathers
66. Cinematographic rolls, exposed
67. printed matter including books, periodicals and stamps
68. Electrical manufactures internal combustion engine and components and accessories thereof
69. and accessories thereof
70. Transport equipment, components
71. Industrial machinery and components and accessories thereof
72. Machine tools
73. Plastic raw materials
74. Linoleum and P.V.C. leather cloth
75. Laminats jute
76. Plastic manufactures
77. Artificial teeth
78. Engineering manufactures not otherwise specified
79. Miscellaneous goods EXTENSION OF THE AGREEMENT,
BELGRADE, 31 DECEMBER, 1969
PROTOCOL ON THE EXTENSION OF THE VALIDITY OF THE
TRADE AND PAYMENTS AGREEMENT
The Government of India and the Government of the Socialist Federal Republic of Yugoslavia being animated by common desire to promote
trade between the two countries, have agreed upon the following :
With reference to the Trade and Payments Agreement between the Government of India and the Government of the Socialist Federal Republic
of Yugoslavia concluded on 13th October, 1962, at Belgrade, the validity of which was subsequently extended from time to time by
exchange of letters and by conclusion of Protocol upto 31-3-1970, and the recent discussions held in Belgrade between the Delegations
of the two countries, it has been agreed that the said Agreement shall remain in force upto 31st March, 1972.
DONE in Belgrade on the 31 December, 1969, in two originals, in the English language, both texts being equally authentic.
B. R. BHAGAT
On behalf of the Government of India.
On behalf of the Government of the Socialist Federal Republic of Yugoslavia.