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Prague, 31 October 1969

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

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

DESIROUS of further increases and diversification in trade and further expansion and strengthening of economic cooperation between the two countries,

HAVE agreed as follows :

Article I

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 the consideration of the other with the purpose of achieving closer economic relations.

Article 2

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 Trade Agreements will be taken into account as and when payments are made. Likewise repayments of credits under the Agreements on Economic Cooperation and payment of interest thereon will also be similarly taken into account.

Article 3

1. Both Governments will grant maximum facilities allowed by their respective laws, rules and regulations for goods imported and exported from one country to the other.

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

3. Both Governments will grant each other in respect of issuance of import and export licences or permission where such licences/permission are prescribed under their regulations, treatment no less favourable than that granted to any other country.

Article 4

Any advantage, favour, privilege or immunity granted by either of the Governments to any product originating in the territory of a third country or destined for its territory, shall be granted immediately and conditionally to the like product originating in either countries or destined to be imported into its territory.

Article 5

The provisions of the Articles 3 and 4 above shall not, however, apply to the grant or continuance of any :

(a) Advantages which are or will be granted by either of the Governments to contiguous countries in order to facilitate frontier trade.

(b) Advantage, favour or privilege or immunity as well as preferences granted by either of the Governments to any third country and which are in force on the date of coming into force of this Agreement or in replacement thereof.

(c) Advantages granted under any Agreement concerning the expansion of trade and economic cooperation among developing countries, which is open for participation by all developing countries and to which India is or may become a party.

Article 6

The export of goods from India to Czechoslovak Socialist Republic and from the Czechoslovak Socialist Republic to India during the period of validity of this Agreement will be carried out on the basis of the attached Schedules “A” (List of goods available for export from Czechoslovakia to India) and “B” (List of goods available for export from India to Czechoslovakia) which constitute an internal part of the present Agreement. The schedules can be extended or altered as may be agreed upon between both Governments.

Article 7

The import and export of the goods stipulated in Article 6 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 persons including Indian owned organisations on the one side and the Czechoslovak laws to carry on foreign trade activities as juridical persons on the other.

Article 8

(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 the Czechoslovak Socialist Republic as well as as any other payments between the two countries on which agreement will be reached between the Reserve Bank of India, Bombay and Czechoslovak Obechodni Bankasaa. s. Praha (hereinafter referred to as the Commercial Bank of Czechoslovakia Ltd) will be effected in non-convertible Indian rupees.

(2) For the purpose of paragraph 1 of the Article :

(a) The Commercial Bank of Czechoslovakia Ltd, acting as an agent of the Government of Czechoslovak Socialist Republic will continue to maintain a Central Account with the Reserve Bank of India and will be entitled to establish and maintain one or more account(s) with one or more commercial bank(s) in India authorised to deal in foreign exchange.

(b) The Central Account will be used for depositing rupee balances and for replenishing the account(s) with commercial bank(s) while the account(s) 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 account(s) with commercial bank(s) will be replenished by transfer of funds from such other accounts and from the Central Account.

(4) (a) Payments permitted under the Czechoslovak Foreign Exchange Regulations to be made by the residents of the Czechoslovak Socialist Republic to the residents of India will be effected by debiting the amounts of such payments to the said account(s) with commercial bank(s) in India.

(b) Payments permitted under the Indian Exchange Control Laws to be made by the residents of India to the residents of the Czechoslovak Socialist Republic will be effected by crediting the amounts of such payments to the said account(s) with commercial bank(s) in India.

(5) The details in regard to the procedure for the operation of the Central Account will be mutually be agreed upon between the Commercial Bank of Czechoslovakia Ltd, and the Reserve Bank of India.

(6) Any balances in the Rupee Accounts of the Commercial Bank of Czechoslovakia Ltd referred to in this Article or any debt of the Commercial Bank of Czechoslovakia Ltd, in connection with the grant of technical credit will, upon expiry of the present 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 both Governments.

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

Article 10

(1) Both Governments 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.

(2) 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 laws, rules and regulations to ships under third countries’ flags. This principle shall not, however, apply to ships engaged in coastal navigation.

Article 11

In order to expand and diversify the mutual trade, both Governments agree to facilitate increasing contracts between the Indian and the Czechoslovak trading as well as manufacturing and actual user organizations through exchange of visits and information and promoting joint cooperation in the studying each other’s requirements and consumer preferences.

Article 12

Both Governments shall consult each other at the request of either Government as and when necessary in respect of matters connected with the implementation of this Agreement.

The present Agreement will come into force on 1st January, 1970 and will remain valid for a period of 5 years.

DONE and signed in Prague on 31st of October, 1969 in two originals in the English language, both texts being equally authentic.

Sd/- Sd/-
On behalf of the Government On behalf of the Government of the
of India Czechoslovak Socialist Republic



With reference ot the provisions of the Trade and Payments Agreement signed on 31st October 1969 in Prague between the Government of India and the Government of the Czechoslovak Socialist Republic and the talks held between the Government Trade Delegations of the two countries in New Delhi from 10th to 18th November 1970, it has been agreed that the trade turnover between the two countries during 1971 would be of the order of Rs.1003.6 million.

Schedule A and B attached to the Long-Term Trade and Payments Agreement would remain valid for 1971 as well.

DONE in New Delhi on 18th November 1970 in two original copies in English language, both being equally authentic.

On behalf of the On behalf of the Government of the
Government of India Czechoslovak Socialist Republic

Sd/- Sd/-


I. Complete Plants and Equipment for Industry
1. Coal and ore industry, foundry, rolling mills, equipment for chemical industry, cane
sugar mills, distilleries, cooling plants, cement works, ceramic works, equipment for
manufacture of diesel engines,machine tools, tractors, motorcycles, bicycles,
equipments 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 food stuff machinery
II. Machinery and Engineering Products
1. Diesel engines, diesel electric generating sets and spare parts
2. Electric motors, generators and dynamos
3. Charging sets
4. Electric resistance furnaces
5. Arc Welding machines and resistance welding machines
6. Transformers
7. H.T. oil and pneumatic circuit breakers
8. Switch gears
9. Lightening arrestors
10. Excavators
11. Motor graders
12. Mortar and concrete mixers, vibrators
13. Road rollers
14. Road Transport, building and road making machines
15. Freight and passenger ropeways
16. Cranes, conveyors and transporters
17. Lifting battery trucks
18. Pulley blocks
19. Mechanical shovels
20. All kinds of pumps, pumping and filtration stations
21. H P Valves
22. Compressors and blowers
23. Electric and diesel electric locomotive
24. Machine tools, accessories, spare parts and components
25. Power hammers and mechanical presses
26. Die Casting machines
27. Pneumatic tools and equipment
28. Precision instruments, gauges
30. Laboratory testing equipment
31. Single and three phase electricity meters and components
32. Electric and mechanical and electronic measuring instruments and components
33. Components of water meters
34. Complete installations for measurement and control in thermal engineering
35. Broadcasting studio equipment
36. Radio components and valves
37. Bulbs for industrial purposes and fluorescent tubes
38. Cigarette making machines
39. Tobacco cutting, weighting and packing machines
40. Timepiece components and spare parts
41. Automotive telephone exchanges
42. Broadcast and TV studios
43. X-ray equipment
44. Dental and surgical equipment
45. Designs and equipment for complete hospitals
46. Statistical and calculating machines
47. Typewriters and components
48. Printing and polygraphic machinery
49. Photo and cine equipment and components
50. Ball and roller bearings
51. Textile machinery and components
52. Shoe making and leather finishing machinery, including rubber shoe machinery
53. Spare parts for passenger cars and trucks
54. Dumpers and mobile cranes
55. Garage service equipment and tools
56. Industrial chains
57. Electrical accessories for motor vehicles
58. Components for fuel injection equipment
59. Agricultural tractors, spare parts and components
60. Tractor trailers and implements
61. Aircrafts
62. Airport lighting equipment
63. Utility and special cars
64. Trucks, buses and trolley buses
65. Motorcycles, scooters, spare parts and components.

III. Steel and Steel Products
1. Steel Structures of every description
2. Steel pilings
3. Iron and steel products including plates, wires, sheets, etc
4. Tool, alloy and special steel
5. Steel forgings, castings and finished products
6. Seamless steel tubes for oil industry.

IV. Other Manufactured goods
1. Rubber conveyor belting with textile insert or igelite belting
2. Rubber textile hoses of all types
3. Reclaimed rubber
4. Driving belts made of leather, igelite or rubber and convas
5. Laundry equipments
6. Electric and gas water heaters
7. Fire extinguishers and fire-alarm equipment
8. Portable electric hand tools
9. Steel gas cylinders
10. Asbestos cement pressure pipes
11. Insulating materials (glass and glasswool)
12. Insulators for high and low tension
13. Laboratory porcelain
14. Abrasives
15. Ceramic cutting tools and metal working
16. Refractories
17. Technical and laboratory glass
18. Pressed glass and jablonece crystal of all kinds
19. Industrial felts and technical cloth
20. Vacuum cleaners

V. Chemicals, Pharmaceuticals and Allied Products
1. Drugs, pharmaceutical chemicals and products
2. Sera and vaccines
3. Dye intermediates
4. Organic Chemicals
5. Nitrocellulose
6. Pesticides
7. Inorganic chemicals including sodium formaldehyde
8. Ultramarine blue
9. Laboratory chemicals
10. Industrial explosives
11. Kaolin and ball clay
12. Dyestuffs
13. Pyrotechnical materials

VI. Miscellaneous
1. Books, periodicals and stamps
2. Photographic paper and photo chemicals
3. Hops and malt
4. Heel pins and shoe tacks
5. Slide fasteners
6. Rubber goods
7. Drawing instruments
8. Film cingmatrographic, exposed
9. Paper of all kinds including newsprint
10. Nuclennic and radiometric instruments
11. Radioisotopes
12. Sports and hunting firearms and ammunition
13. Tyres and tubes
14. Glazed wall tiles
15. Sanitary ceramics
16. Chine and earthenware
17. Plate glass
18. Chandeliers and illuminating glass of all kinds
19. Plushes
20. Silk and rayon fabrics
21. Semi-finished Gurkha hats
22. Stationery and office equipment
23. Jewellery including imitation pearls and imitation stone
24. Musical instruments


I. Food
1. Fruits, fresh dried, processed and preserved and fruit juice and squashes
2. Cashew kernels
3. Walnut and walnut kernel
4. Pepper
5. Other spices
6. Oil cakes (de-oiled)-groundnut, rice bran and other oil seeds
7. Animal feed compound
8. Tinned fish and prawns
9. Shark liver oil
10. Groundnuts H.P.S.
11. Animal casings
12. Fish meal
13. Sesame seeds(edible)

II. Beverages and Tobacco
1. Tea
2. Coffee
3. Tobacco
4. Instant Tea
5. Instant coffee

III. Crude materials
1. Shellac/all kinds/and shallac based products
2. Hides and skins, raw, semi-processed and tanned
3. Finished leather
4. Essential oils
5. Coir, yarn and manufactures
6. Palmyra fibre
7. Coir and sisal ropes for ships
8. Cotton waste
9. Cotton linters
10. Tanning agents like myrobolan extract
11. Gum tragacanth

IV. Mineral and Allied Materials
1. Mica and Mica based products
2. Iron ore
3. Manganese ore
4. Kyanite
5. Sillimanite
6. Steatite
7. Ilemenite
8. Deat burnt magnesite
9. Ferro manganese

V. Vegetable Oils
1. Castrol oil
2. Cotton seed oil
3. Linseed oil, etc.

VI. Complete Plants and Equipment for Industry
1. Sugar making plants
2. Tea processing machinery all sorts
3. Small scale paper making plants
4. Weighing machines, weigh bridges
5. Solvent extraction plants
6. Cement making plants
7. Cold storage plants
8. Water coolers
9. Sulphuric acid plants
10. Water treatment and purification plants
11. Super phosphate plants
12. Industrial and package boiler
13 Industrial cooling towers
14 Construction machinery such as stone crushers, concrete mixers, concrete vibrators
15 Dairy plants
16 Asbestos cement sheets and pipe making plants
17 Electric overhead and travelling crane
18. Thermoplastic injection moulding machines

VII. Engineering Products including Rolled Steel items
1. Rolled steel products including steel pipes, tubes and fittings thereof
2. Steel castings and forgings
3. Pipes and pipe fittings
4.Ferrous metal manaufactures including fabricated steel structurals, deformed steel,
re-inforced bars, builders, fasteners, needles all sorts, etc
5. Bath room fittings of all types and description
6 Air compressors
7 Printing and book binding machinery
8 Refrigeration machinery
9 Wire, nail and panel pin making machinery
10. Microscopes
11. Weighing machines and weigh bridges
12. Industrial sewing machines
13. Centrifugal and other types of pumps
14. Hydraulic presses
15. Diamond tools
16. Tungsten carbide tips
17. Tungsten carbide tipped tools
18. Hand tools and small tools
19. Small cutting tools
20. Bolts, nuts, screws and other fasteners
21. Hydraulic variable speed gears
22. Mathematical, scientific and survey instruments
23. Resistance welding equipment like spot and butt welders
24. Foundry moulding machines
25. Arc electric furnaces
26. Machine tools including radical drills, planning machines, shapping machines, slotting
machines, and saw machines.
27. Steel files, backsaw and bandsaw blades
28. Textile machineries and accessories
29. Sewing machines needles and knitting machine needles
30. Hand knitting machines
31. Galvanised screwed and socketed steel pipes and tubes upto 75mm, bore and electrical
resistanced welder tubes upto 50mm bore
32. Grinding wheels and abrasives
33. Tungsten carbide powder and products
34. High speed vertical diesel engines, water cooled and aircooled upto 40 H.P.
35. Electric motors squirrel cage or slopring upto 75 H.P. topicalised.
36. Industrial shunters
37. Industrial process and flow control instruments
38. Exhaust fans and blowers
39. Jigs and fixtures
40. Automobile ancillaries like piston rings, assembled rigs, connecting rods,
crankshafts, filters and filter elements, electrical parts, axle tubes, radiators,
Engine valves, Brake assemblies, Brake lining, clutches, injection equipment, bimetal bearings, Alternators, self starters, Screen wipers, shock absorbers, rubber parts, Headlights, Auto leaf springs, etc
41. Grey iron, malleable iron and steel and other casting and forgings
42. Electric switch gear and control gear
43. Train lighting equipment
44. Fabricated steel structures like towers etc
45. Razor Blades
46. Calculating Machines
47. Transport equipment, components and accessories thereof
48. Bright bars
49. Wire ropes
50. Railway wagons
51. Diesel Trucks and other commercial vehicles
52. Excavators
53. Road rollers
54. General lighting services
55. Fluorescent Tubes
56. Miniature bulbs
57. Mercury Vapour lamps
58. Refrigerators
59. Room airconditioners
60. Radio receivers
61. Circuit breakers
62. Lightning arrestors
63. X-ray equipment
64. Water meters
65. House service meters
66. Distribution and Power transformers
67. Duplicators
68. Typewriters
69. Computers
70. Phosphor Bronz wire cloth
71. Expanded metal
72. Ball and roller bearings
73. Industrial roller chains.
74. Transistorised radios and radio parts
75. Locks and padlocks
76. Pressure lamps and stoves
77. Storage batteries and dry batteries
78. Flash lights
79. Aluminium Cable

VIII. Other manufactured Goods
1. Cotton textiles
2. Woollen textiles
3. Woollen knitwear
4. Cotton knitwear
5. Other mixed fabrics
6. Ready made garments
7. Nylon socks
8. Jute goods including jute canvas and jute tarpaulin
9. Cigars and cigarettes
10. Linoleum and other synthetic leather materials
11. Leather footwear and leather manufactures
12. Sports goods
13. Paints, varnishes, enamels and lacquers
14. Plywood and walnut veneers
15. Spectacle frames
16. Plastic manufactures
17. P V C floor tiles
18. Synthetic resin such as alkyd, phenolic, Meleic, Malamine formaldehyde and PVC
19. Decorative phenolic laminates
20. Automobile tyres and tubes
21. Rayon tyre cord
22. Thermos flasks
23. Wire and figured glass
24. Bristles
25. Collapsible tubes
27. Graphite electrodes
27. Enamel ware.

IX. Handicrafts
Indian handicrafts and cottage industry products e.g. hand-loom (cotton and silk), artistic silver ware, copper and brass ware, bidri products, wood carvings, etc.

X. Chemicals, Pharmaceuticals and Allied Products
A. Organic and Inorganic Chemicals
1. Ethylene glycol
2. Ethyl acetate
3 Ethylene oxide
4. Styrene
5. Formaldehyde
6. Chronic acid
7. Trichor ethylene
8. Sodium bichromates
9. Sodium perborate
10. Barium carbonate
11. Mercuric chloride
12. Ammonia chloride
13. Magnesium sulphate
14. Calcium chloride
15. Synthetic dyes - Azo dyes, Napthols, vat dyes, sulphur dyes, Rapidogens
16. Optical whitening agents
17. Carboxy methyl cellulose
18. Synthetic detergents
19. Toiletries and cosmetics
20. Chrome pigments
21. Rubber chemicals
22. Cigarette paper
23. Carbon paper
B. Pharmaceuticals/Semi Products thereof
1. Quinine
2. Emetine hydrochloride
3. Cortisone and allied compounds
4. Strychnine nitrate
5. Camaquin amodiaquin
6. Sex hormones
7. Vitamins A and K
C. Others
1. Polythlene
2. Medicinal herbs

XI. Miscellaneous
1. Asbestos cement products
2. Stationery articles
3. Surgical instruments and hospital appliances
4. Books and periodicals
5. Films cinematographic and exposed
6. Tapioca manioc

India Bilateral

Ministry of External Affairs, India

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