Indian Treaty Series

Bucharest, 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:

Article I

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 territory.
(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.

Article II

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.

Article III

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.

Article IV

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.

Article 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.

Article VI

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.

Article VII

All payments between India and the Rumanian People's Republic described in Article VIII will be effected in non-convertible Indian rupee.

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 Account.

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.

Article VIII

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.

Article IX

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.

Article X

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.

Article XI

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.

Article XII

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.

Article XIII

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.

Article XIV

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.

Article XV

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.

Sdl-

S. VOHRA
On behalf of the Government of India.

Sdl-

V. STERIOPOL
On behalf of the Government of the Rumanian People's Republic.

LIST 'A'

EXPORTS FROM THE RUMANIAN PEOPLE'S REPUBLIC TO INDIA

1. Complete plans and equipment, such as:
Oil refineries producing fuel and lubricants as well as technological installations and separate
equipments for oil refineries
Equipment for the ore and mineral mining industry
Complete oil field drilling equipment, parts of drilling equipment accessories and tools
Oil field production equipment
Cement plants
Complete- power plants, including generators, turbines, transformers, switch -gear, control
gear etc.
Plants for the chemical and petro-chemical industry; calcinated soda and caustic soda
plants,
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 equipment
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.
4. Machine Tools, metal and wood working
5. Electrotechnical equipment, such as:
Electric motors, welding transformers, power transformers
6. Refrigerating ammonia compressors
7. Lifting machinery and transport equipment, such as:
Travelling cranes, autocranes, belt-conveyers
8. Various industrial machines and equipment
9. Bearings
10. Power cables
11. Rolled steel goods
12. Oil products: kerosene, gasoil, mazoot, lubricants, petroleum coke, naphtenic acid a.o.
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,
sulfanilamide, pharmaceutical vaseline, gervovital a.o.
14. Intermediates and dyestuffs:
aniline oil betanaphtel. a.o.
15. Synthetic tanning material
16. Bleached cellulose
17. News print
18. Various kinds of cardboard and paper, such as:
Cigarette paper, tissue paper, manifold paper, crepped toilet paper, napkins paper
19. Beach timber and wooden tea cases
20. Mechanically drawn, wired and ornamental glass
21. Cement special grade
22. Refractory material
23. Marble
24. Books, magazines records
25. Cinema films
26. Handicraft and cottage industry products.