30 November 1962
The Government of India and the Government of Rumanian People's Republic,
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 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 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 custom 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.
(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
(e) The above provision may be subject further review in the event of either Party being desirous of doing so as provided
for in Article XIV.
3. The provisions of the above clauses shall not, however, apply to the grant or 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 India to Rumania and from Rumania to India during the period of validity of the present Agreement will be
carried out in accordance with the lists of commodities 'A' and V attached to this Agreement.
The Lists of commodities will be modified, enlarged, extended, of 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 the expressed desire of both Parties
to increase the volume of trade from year to year.
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 India State-owned organisations on the other.
The provisions of the present Agreement do not effect the right of the Rumanian Foreign Trade Enterprises and the rights of the Indian
Physical and juridical parties subject to the import, export and commercial transactions concerning the import, or -included in the
Lists 'A' and V.
Both Governments will render all possible assistance for the export and import of the goods mentioned in the Lists 'A' and 'B' as
well as for the goods to be exported and imported under the transactions referred to in Article IV.
Each Party shall allow the holding of permanent or temporary fairs or exhibitions by the other Party and shall extend to the other
Party-subject to its laws and regulations applicable generally-all facilities for holding such fairs or exhibitions.
All payments between India and the Rumanian People's Republic described in Article VIII will be effected in non-convertible Indian
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 India, authorized to deal in foreign exchange.
I . (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 Commercial Banks will be used for
carrying out all other operations mentioned in Article VIII.
2. (a) The Central Account will be replenished by transfers of funds in Indian rupees from the accounts maintained by the State Bank
of the Rumanian People's Republic 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 Rumanian People's Republic with
the Commercial Indian Banks.
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 be 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 VII,
(a) Payments for goods imported and exported in accordance with this Agreement and with the Indo-Rumanian Trade and Payments Agreement
dated 14th May, 1959,
(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 specialisation 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.
J) Payments of the expenses for the maintenance of the Embassy, diplomatic consulates and commercial representations.
(g) Payments resulting from periodical settlements of postal, telegraphic and telephone services.
N Payments of fees and honorarias, taxes for licences and patents.
(i) 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 in/from the non-convertible rupees accounts of a third party.
The reciprocal commitments expressed in a currency other than the Indian rupee will be converted into Indian rupees at the official
parity of that currency in respect to the Indian rupee, in force on the day of the payment.
Any balances in the Rupee Accounts of the State Bank of the Rumanian People's Republic or any debt of 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 six 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. This 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 the exported or imported under the present
Agreement from one country to the other as far as possible by Indian and Rumanian ships.
The two Governments will endeavour to establish and promote close cooperation in the fields of science and technology with a view
to achieving close economic relations between the two countries.
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 shall come into force on the 1st of January, 1963 and shall be valid till the 31st of December, 1967.
This Agreement shall be extended or renewed by negotiations between the two Contracting Parties, to be commenced 3 months prior to
its expiry or by exchange of letters.
DONE in Bucharest, on the 30th day of November, 1962, in two originals in English language, both texts being equally authentic.
On behalf of the Government of India.
On behalf of the Government of the Rumanian People's Republic.
EXPORTS FROM THE RUMANIAN PEOPLE'S REPUBLIC TO INDIA
Complete plans and equipment, such as:
producing fuel and lubricants as well as technological installations
equipments for oil refineries
Equipment for the ore and mineral mining industry
oil field drilling equipment, parts of drilling equipment
accessories and tools
Oil field production
plants, including generators, turbines, transformers, switch -gear,
Plants for the chemical
and petro-chemical industry; calcinated soda and caustic
sulphuric acid plants based on pyrite
carbon black plants, installations for producing
detergents from oil-products, other plants, installations and
separate equipment for the
chemical industry Steel tube rolling mills and other related
2. Railway rolling stock such as:
Tank cars, diesel and electric locomotives
3. River and sea
vessels such as:
Cargo vessels Sea-going and river
tugboats, self-propelled and non-propelled tankers,
non-propelled barges, fishing vessels.
Tools, metal and wood working
5. Electrotechnical equipment,
Electric motors, welding
transformers, power transformers
6. Refrigerating ammonia
7. Lifting machinery and transport equipment, such
Travelling cranes, autocranes, belt-conveyers
Various industrial machines and equipment
11. Rolled steel goods
12. Oil products:
kerosene, gasoil, mazoot, lubricants, petroleum coke, naphtenic acid
13. Chemical and pharmaceutical products:
calcinated soda, caustic soda, carbon black, calicium carbide,
salicylic acid, natrium
benzoate, metaxilene, P.V.C. acetone,
phenol, natrium bichromate, mathylene chloride,
vaseline, gervovital a.o.
14. Intermediates and dyestuffs:
aniline oil betanaphtel. a.o.
15. Synthetic tanning material
17. News print
kinds of cardboard and paper, such as:
Cigarette paper, tissue paper, manifold paper, crepped toilet paper,
19. Beach timber and wooden tea cases
Mechanically drawn, wired and ornamental glass
22. Refractory material
Books, magazines records
25. Cinema films
and cottage industry products.
EXPORTS FROM INDIA TO THE RUMANIAN PEOPLE'S REPUBLIC
1. Spices, including pepper
4. Vegetable oils (Cotton/seed oil, linseed oil, groundnut oil etc.)
5. Cashew kernel and groundnuts
6. Shark oil
7. Essential oils
8. Pharmaceutical glycerine
9, Crushed bones and bone grist
10. Organic and inorganic chemicals
11. Shellac and Shellac based products
12. Medicinal herbs
13. Gum tragacanth
15. Cotton products, including yarns
16. Wool, raw
17. Wool waste
18. Jute products
19. Sisal fibre
20. Coir products
21. Hides and skins, raw and semi-processed
22. Tanned skins and leather products
23. Tanning materials, myrobalan and extracts
24. Iron ore
25, Manganese ore
26. Manganese dioxide
27. Pig iron
28. Ferro-alloys ferro-chrome, ferro-manganese, ferrocilican etc.
29. Mica and micaceous products
30. Electrical manufacture
31. Handicrafts and cottage industry products
32. Sports goods
33. Cinematographic films exposed
34, Books, magazines and stamps
35. Internal combustion engines, components and accessories thereof
36. Transport equipments, components and accessories thereof
37, Industrial machinery, components and accessories thereof
38. Rolled steel products
39. Various metal manufactures
40. Engineering manufactures not elsewhere specified
41. Machine tools
42, Rubber footwear
43. Other minerals e.g. dead burnt magnesite, kyanite etc.
44. Dry salted and tinned fish, prawns
45. Asbestos manufactures
Bucharest 30th November, 1962
With reference to the Long-Term 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 as 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 Enterprise on the
basis of mutual benefit and observance, of the commercial interests of the parties concerned,
Accept your Excellency assurances of my highest consideration.
Leader of the Indian Trade Delegation
Leader of the Rumanian Trade Delegation, Bucharest.
Bucharest 30th November, 1962
Dear Mr. VOHRA
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 understanding reached between us.
Leader of the Rumanian Trade Delegation
Mr. S. VOHRA
Leader of the Indian Trade Delegation, Bucharest.