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New Delhi, 7 November 1963

The Government of India and the Government of the Czechoslovak Socialist Republic;

NOTING with satisfaction the successful development of economic and trade relations;

DESIROUS of further increase and diversification in trade; and

HAVING agreed on further strengthening of economic co-operation between the two countries;

HAVE agreed as follows

Article I

The Contracting Parties 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 utmost goodwill take decision 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.

Article II

(a) The Contracting Parties will grant all facilities allowed by their respective laws, rules and regulations for the goods imported and exported from one country to the other.

(b) During the period of validity of this Agreement, the total value of imports will be equal to the total value of exports effected by either country taking into account also the non-commercial payments on both sides.

1. Came into force on 1 January 1964,

Article III

(a) Both Contracting Parties will accord each other most favoured nation treatment in respect of customs duties and charges of any kind imposed on imports or exports, or in connection therewith in respect of the methods of levying such duties and charges and in respect of rules, formalities and charges in connection with customs clearing operations.

(b) The Contracting Parties will grant each other in respect of the issuance of import and export licences or permissions where such licences/permissions are prescribed under their regulations, treatment no less favourable than that granted to any other country.

Article IV

Any advantages, favour, privileges 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.

Article V

The provisions of Article III and IV above 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 either Party to any country, as existing on the 1st October, 1957 or in replacement of such preferences or advantages that existed prior to the 15th August, 1947.

Article VI

(a) The Contracting Parties agree that, in exercise of their right of shippers preference, they shall, to the maximum extent possible, utilise the vessels owned or chartered by shipping organisations of the two countries concerned for shipping cargoes imported or exported under this Agreement, on the basis of world competitive freight rates and conditions.

(b) Merchant ships of either country with or without cargoes therein, will, while entering, staying in or leaving the ports of the other country, enjoy the most favoured facilities granted by their respective laws, rules and regulations to ships under third countries' flags. This principle shall not, however, apply to ships engaged in coastal navigation.

Article VII

The export of goods from India to Czechoslovakia and from Czechoslovakia to India during the period of validity of the present agreement will be carried out in accordance with the attached Schedules 'A' and V the details of which will be agreed upon from time to time between the two Contracting Parties.

The Schedules 'A' and S' can be extended, altered, or renewed by letters exchanged between the two Contracting Parties.

Article VIII

The import and export of the goods stipulated in Article VII 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 Czechoslovak Foreign Trade Corporations and other Czechoslovak independent legal parties authorised by the Czechoslovak Laws to conduct foreign trade on the one side and the Indian physical and juridical parties including Indian State-owned Organisations, on the other.

Article IX

1. All payments of a commercial and non-commercial nature between physical and juridical persons residing in India and physical and juridical persons residing in Czechoslovakia as well as any other payments on which agreement will be reached between the Reserve Bank of India and the 'State Bank of Czechoslovakia (Statni banka Ceskoslovenska) will be effected in non-convertible Indian Rupees.

2. For the purpose of effecting the aforementioned payments

(a) The State Bank of Czechoslovakia acting as the agent of the Government of Czechoslovakia will continue to maintain a Central Account with the Reserve Bank of India, while the State Bank of Czechoslovakia will maintain one or more current account(s) with one or more commercial banks(s) in India authorised to deal in foreign exchange.

(b) The Central Account will be used for depositing rupee balances and for replenishing the accounts with commercial bank(s) while the accounts with the commercial bank(s) will be used for all other operations.

3. (a) The Central Account will be replenished by transfer of funds from the accounts with commercial bank(s) and by receipts on account of technical credit.

(b) The accounts with commercial bank(s) will be replenished by transfer of funds from other similar Accounts- and from the Central Account.

4. (a) Payments permitted under the Czechoslovak Exchange Control Laws to be made by the residents of Czechoslovakia to the residents of India will be effected by debiting the amount of such payments to the said accounts with Indian Commercial bank(s).

(b) Payments permitted under the Indian Exchange Control Laws to be made by the residents of India to the residents of Czechoslovakia will be effected by crediting the amount of such payments to the above mentioned accounts with Indian Commercial bank(s).

5. The details in regard to the procedure for the operation of the Central Account will be mutually agreed upon between the Reserve Bank of India and the State Bank of Czechoslovakia (Statni banka Ceskoslovenska).

6. Any balances in the Rupee Accounts of the State Bank of Czechoslovakia or any debt of the State Bank of Czechoslovakia in connection with the grant of technical credit will, upon expiry of this Agreement, be used during the ensuing 12 months for the purchase of Indian or Czechoslovak goods as the case may be. After the expiry of this period of 12 months, any balances outstanding will be settled in such a way as may be agreed upon between the two Parties.

7. Payments arising from contracts concluded during the validity and falling due after the expiry of this Agreement shall be effected in Indian Rupees, which will be utilised for the purchase of Indian or Czechoslovak goods as the case may be.

Article X

The Contracting Parties shall consult each other at the request of either Party as and when necessary in respect of matters connected with the implementation of this Agreement.

Article XI

The present Agreement will come into force on January 1, 1964 and will remain valid for a period of five years.

DONE in New Delhi on 7th November, 1963 in two originals in English language, both texts being equally authentic.



On behalf of the Government of India.



On behalf of the Government of Czechoslovak Socialist Republic.



1 . Complete Industrial Plants

Industry, Cane Coal and Ore Industry, Foundries, Rolling Mills, Equipment for Chemical Sugar Mills, Distilleries, Cooling Plants, Cement Works, Ceramic Works, Equipment for manufacture of Diesel Engines, Machine Tools, Tractors, Motorcycles, Bicycles, Equipment for light and heavy engineering industries etc.

2. Power Plants 3. Woodworking machinery 4. Mining equipment and oil-well equipment 5. Brick factories 6. Crushing and sorting sets 7. Flour mill equipment 8. Dairy equipment, bottling equipment and other foodstuff machinery 9. Diesel engines, diesel-electric generating sets and spare parts 10. Electric motors, generators and dynamos 11. Charging sets 12. Electric resistance furnaces 13. Arc welding machines and resistance welding machines 14. Transformers 15. H.T. oil and pneumatic circuit breakers 16. Switch gears 17. Lightening arrestors 18. Excavators 19, Motor graders 20. Mortar and concrete mixers, vibrators 21. Road rollers 22. Road transport, building and road-making machines 23. Freight and passenger ropeways 24. Steel structures of every description 25, Cranes, conveyors and transporters

26. Lifting battery trucks 27. Pulley blocks 28. Mechanical shovels 29. All kinds of pumps, pumping and filtration stations 30, H.P. valves 31. Compressors and blowers 32. Electric and diesel-electric locomotives 33. Machine tools, accessories, spare parts and components 34, Power hammers and mechanical presses 35. Die-casting machines 36. Pneumatic tools and equipment 37. Precision instruments, gauges 38. Electric measuring devices 39. Laboratory testing equipment 40. Single and three-phase electricity meters and components 41. Ele ctric and mechanical and electronic measuring instruments and components 42. Components of water meters 43. Complete installations for measurement and control in thermal engineering 44. Broadcasting studio equipment 45. Radio components and valves 46. Bulbs for industrial purposes and fluorescent tubes 47, Cigarette making machines 48. Tobacco cutting, weighing and packing machines 49. Time piece components and spare parts 50. Automatic telephone exchanges 51. Broadcast and TV studios 52. X-Ray equipment 53. Dental and surgical equipment 54. Designs and equipment for complete hospitals 65. Statistical and calculating machines 56. Typewriters and components 57. Printing and polygraphic machinery 68, Photo and cine equipment and components 59. Ball and roller bearings 60. Textile machinery and components 61, Shoe-making and leather finishing machinery, including rubber shoe machinery 62. Spare parts for passenger cars and trucks 63. Dumpers and mobile cranes 64. Garage service equipment and tools 66. Industrial chains 66. Electrical accessories for motor vehicles 67. Components for fuel injection equipment 68. Agricultural tractors, spare parts and components 69. Tractor trailers and implements 70~ Rubber conveyor belting with textile insert or igelite belting 71. Rubber textile hoses of all types 72. Reclaimed rubber 73. Driving belts made of leather, igelite or rubber and canvas 74. Laundry equipments 75. Electrical and gas water heaters 76. Fire extinguishers and fire-alarm equipment 77, Portable electric hand tools

VI, Engineering products including Rolled Steel items such as:

26. Rolled Steel

27. Iron and steel castings and forkings

28. Steel pipes, tubes and fittings thereof

29. Ferrous metal manufactures including fabricated steel structurals, deformed steel
reinforced bars, builders, fasteners, needles all sorts etc.

30. Non-ferrous, semies and manufactures

31. Internal combustion engines including diesel engines, components and ancillaries thereof

32. Centrifugal and turbine pumps

33. Exhaust fans and blowers

34. Machinery for cotton, art silk and jute textiles and components accessories and
ancillaries thereof.

35. Sugar mill machinery and components and ancillaries thereof

36. Solvent extraction plants

37. Chemical and pharmaceutical machinery

38 Cement mill machinery and components and ancillaries thereof

39. Industrial machinery n.o.s.

40. Transport equipment like motor vehicles, industrial shunters etc. and components and
ancillaries thereof

41. Machine tools including lathes, shapers, drills (Pillar and Radial) planners, slotters, turret and capstan lathes, tool and cutter grinders, belt sanders, hacksaw and band saw machines

42. Foundry moulding and other foundry machines

43. Electric furnaces for both melting and heat treatment operations

44. Cutting tools

45. Small tools including steel files, hacksaw and band saw blades

46. Dies, jigs and fixtures

47. Surface coated and bonded abrasives

48. Drop forged hand tools like pliers, spanners and wrenches

49. Batteries, dry and storage, including defaid batteries and batteries for use in fork
lift trucks

50. Electric motors, transformers and switch gear and control gear accessories and lighting fittings

51. Electrical wiring

52. Electric cables and wires

63. Railway train lighting and signalling equipment

54. Railway track fasteners, fittings and accessories

55. Railway rolling stock

56. Laboratory, scientific, electrical measuring and industrial process/flow control

57. Water meters

58. Razor blades and safety razors

59. Refrigeration, air conditioning and humidifying equipment components and ancillaries

60. Engineering manufactures n.o.s.

VII. Other Manufactured Goods

61, Cotton textile

62. Woollen textiles

63. Jute manufactures

64. Old hemp rope cuttings

65. Other textile products

66. Knitted wears

67. Rubber tyres and tubes

69. Tooth brushes
70. Cigars and cigarettes
71. Nylon socks
72. Ready made shirts and garments
73. Hosiery products
74. Linoleum
75. Leather footwear
76. Leather manufactures
77. Sports goods
78. Enamel wares
79. Plywood and veeners
80. Plastic manufactures


81. Indian handicrafts and cottage industry products e.g. handloom. (cotton and silk)- artistic silver, brass and bidri products, ivory articles, wood carving etc.

ix. Chemicals, Pharmaceuticals and Allied Products
(A) Organic Chemicals
82. Acetic acid
83. Ethyl acetate

(B) Inorganic Chemicals
84. Chromic acid
85. Sodium bichromates
86. Sodium perbolate
87. Barium carbonate
88. Mercuric chloride
89. Potassium bichromate
90. Ammonium chloride
91. Aluminium sulphate

(C) Pharmaceuticals
92. Quinine

93. Emetine HC1.

94. Cortisone and allied compounds
95. Strychnine nitrate
96. Bismuth salts
97. Camaquin amodiaquin
98. Sex hormones
99. Vitamin A
100. Vitamin K
101. Magnesium stearate
102. Destrin

(D) Others
103. Paints and varnishes
104. Glycerine, crude and refined
105. Alcohol
106. Crushed bones
107. Essential oils

108. Polythylene

109. Polysyrene

110. Potassium and ammonium alum

111.Medical Herbs


112. Semi-precious stone

113. Books and periodicals

114. Films and cinematographic exposed


Protocol to the Trade and Payments Agreements of 7 November 1963.

New Delhi
28 november 1967

In accordance with the provisions of the Trade and Payments Agreements between India and the Czechoslvak Socialist Republic of the 7th November 1963 the exchange to goods between the two countries shall be carried out in the calendar year 1968 on the basis of the List of Commodities 'A' and 'B' attached to the above mentioned Agreement.

Done and signed in New Delhi on the 28th November, 1967 in two originals in English.

S. Ramchandran
For the Government of India

L. Pesl
For the Government of the Czechoslvak Socialist Republic

India Bilateral

Ministry of External Affairs, India

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