New Delhi, 4 April 1968.
The Government of India and the Government of the Socialist Republic of Rumania,
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 follows :
(1) Both Governments will in every possible way develop and strengthen the 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 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 customs 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 imports and exports 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 provisions may be subject to 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 list of commodities ‘A’ 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 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 the contracts to be concluded between the Rumanian Foreign Trade
Enterprises, on the one side, and the Indian physical and juridical parties, including Indian State-owned organisations on the other.
The provisions of the present Agreement do not affect the rights of the Rumanian Foreign Trade Enterprises and the rights of the Indian
physical and juridical parties subject to the import, export and foreign exchange regulations in force in both countries of concluding
commercial transactions concerning the import or export of goods not included in the List ‘A’ and ‘B’.
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 and exhibitions.
All payments between India and the Socialist Republic of Rumania, described in Article VIII will be effected in non-convertible Indian
For the purpose, the National Bank of the Socialist Republic of Rumania will maintain a Central Account with Reserve Bank of India
and one or more accounts with one or more commercial banks in India authorised to deal in foreign exchange.
1. (a) The Central Account, maintained by the National Bank of the Socialist Republic of Rumania 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 National Bank of the Socialist
Republic of Rumania with the authorised Indian commercial banks and for operating the technical credit.
(b) The accounts maintained by the National Bank of the Socialist Republic of Rumania 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 National
Bank of the Socialist Republic of Rumania 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 Socialist Republic of Rumania, 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 Socialist Republic
of Rumania with the commercial Indian Banks.
Likewise, the payments which are to be effected by the physical and juridical persons residing in the Socialist Republic of Rumania
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 National Bank of the Socialist Republic of Rumania with the commercial
Indian Banks, under the instructions of the National Bank of the Socialist Republic of Rumania.
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 Long Term Trade and Payments
Agreement, dated 30th November 1962.
(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 expense, inspection charges and bunkering, consular taxes, transit
and transhipment charge.
(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 Socialist Republic of Rumania.
(e) Payments of expenses connected with tours of a commercial and cultural nature and of official delegations as well as other tours.
(f) Payments of expenses for the maintenance of the Embassy, diplomatic consulates and commercial representations.
(g) Payments resulting from periodical settlements of postal, telegraphic and telephone services.
(h) Payments of fees and honoraries, taxes for licences and patents.
(i) Payments of subscriptions for newspapers, magazines and other publications.
(j) Any other payments on which agreement may be reached between the Reserve Bank of India and the National Bank of the Socialist
Republic of Rumania including transfers in/from the non-convertible rupee accounts of a third party.
The reciprocal commitments expressed in another currency 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 National Bank of the Socialist Republic of Rumania or any debt of the National Bank of the
Socialist Republic of Rumania in connection with the grant of technical credit will upon expiry of this Agreement, be used during
the ensuring 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
nation 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.
Both Governments will render all possible assistance for the shipping of the goods to be exported or imported under the present Agreement
from the country ot the other as far as possible by Indian and Rumanian ships.
The two Governments will endeavour to establish and promote close co-operation on 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
the 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 with 45 days of the request.
The present Agreement is in supersession of the earlier Long-Term Trade and Payments Agreement signed between the Government of India
and the Government of Socialist Republic of Romania in Bucharest on the 30th November 1962 and valid upto 31st December 1968. This
Agreement shall come into force from the date of its signing and shall be valid till the 31st December 1970.
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 New Delhi, on the 4th April 1968 in two originals in the English language, both texts being equally authentic.
On behalf of the Government
On behalf of the Government of
Socialist Republic of Rumania
EXPORT FROM THE SOCIALIST REPUBLIC OF RUMANIA TO INDIA
1. Equipment for:
Oil refineries producing fuel and lubricants as well as technological installations and separate
equipment for oil refineries
the Ore and mineral mining industry
oil field drilling equipment, part of drilling equipment accessories and tools
oil field production
plants for the chemical and petro-chemical industry
calcinated soda and caustic soda plants, sulphuric acid plants based on the pyrite, carbon black
plants, installation for producing detergents from oil-products, other plants, installation and
separate equipment for the chemical industry
Steel tube rolling mills and other related equipment.
2. River and Sea Vessels, such as Cargo vessels and tankers.
3. Machine tools, metal and wood working
4. Various Industrial Machines and Equipment
6. Rolled steel goods
7. Oil products, kerosene, gas oil, mazoot, lubricants, petroleum coke, naphtenic acid a.o.
8. Chemical and pharmaceutical products, calcinated soda, silicium carbide, Calicylic acid,
natrium benzaoate metaxilene, P.V.C. natrium bichromate, methylene chloride, sulfanilamide,
pharmaceutical vaseline, gerovita a.o.
9. Intermediates and dyestuffs - aniline oil, betanaphtol a.o.
10. Synthetic tanning material
11. Bleached celullose of reed
13. Various kinds of cardboard and paper, such as
cigarette paper, tissue paper, manifold paper, crepped toilet paper, napkins paper,
14. Beach timber and wooden tea cases
15. Books, magazines, records,
16. Cinema films
17. Handicraft and cottage industry products.
EXPORTS FROM INDIA TO THE SOCIALIST REPUBLIC OF RUMANIA
1. Spices including pepper
4. Vegetable oils (cottonseed 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. Tanned materials, myrobalan and extracts
24. Iron ore
25. Manganese ore
26. Manganese dioxide
27. Pig Iron
28. Ferro-alloy, ferro-chrome, ferro-manganese, ferro silicon, etc.
29. Mica and Micaceous products
30. Electrical manufactures
31. Handicrafts and cottage industry prodcuts
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 bauxaite, etc
44. Dry salted and tinned fish, prawns
45. Asbestos manufactures.