New Delhi, 21 December 1974
The Government of the Republic of INDIA
The Government of the POLISH People’s Republic
Hereinafter referred to as Contracting Parties
BEING desirous of further expanding and strengthening of economic and trade relations between both countries and increasing the volume
of trade between them to as high a level as possible,
HAVE agreed as follows :
1. Both Contracting Parties will in every possible way develop the trade relations between the two countries on the principle of equality
and mutual benefit, and on a balanced basis.
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 under credit or deferred payment terms,
or on cash basis, relating to the contracts concluded and to be concluded on the basis of this and earlier Indo-Polish Trade Agreements,
will be taken into account as and when payments are made. Like-wise, payments for exports, repayments of credits under the agreements
on economic co-operation and payment of interest thereon will also be similarly taken into account.
1. The two Contracting Parties being signatories of GATT shall accord to each other in their commercial relations the most favoured
nation treatment in accordance with the provisions of the GATT as applicable to them.
2. The Contracting Parties will grant each other in respect of the issuance of import and export licences treatment no less favourable
than that granted to any other third country.
1. The export and import of goods between both Contracting Parties during the period of validity of this Agreement will be carried
out in accordance with the commodity lists which will be agreed upon between the two Contracting Parties for every calendar year.
These lists do not exclude the possibility of trade in other goods, and may be modified, altered or renewed by mutual consent of
the representatives of the two Contracting Parties.
2. The exchange of goods stipulated above will be carried out in accordance with the export, import and foreign exchange regulations
in force in both countries on the basis of contracts to be concluded between the Polish Foreign Trade enterprises and Indian juridical
and physical persons, including Indian state-owned organisations.
3. Import and export of goods stipulated in para 1 of this Article will be effected provided that the said goods are internationally
competitive as to the quality, prices and terms of delivery.
Both Contracting Parties shall render all possible assistance for : export and import of goods as provided for in para 1 of Article
3 this Agreement.
Further, they shall, subject to laws, rules and regulations in force either country, facilitate concluding of long-term contracts
for goods which are of importance to their economies.
The goods exported from the Polish People’s Republic to India from India to the Polish People’s Republic are meant for use in India
and the Polish People’s Republic respectively and shall not be re-exported to any other country.
For the purpose of promoting and diversifying trade between the two countries as well as expanding their cooperation in the fields
of economy and technology, the Contracting Parties shall facilitate each other’s participation in trade fairs to be held in either
country; organisation of commercial and technical exhibitions by one of the Contracting Parties in the territory of the other and
contacts between the trade, manufacturing and end-user organisations.
Recognizing that the Indo-Polish Joint Commission for Economic Trade, Technical and Scientific Cooperation has to play an important
role in further development of cooperation between the two countries both Contracting Parties undertake to work for expansion a diversification
of trade and development of economic cooperation accordance with the decisions taken on the recommendations of the Joint Commission.
All payments of commercial and non-commercial nature between the Republic of India and the Polish People’s Republic will be effected
in non-convertible Indian rupees.
For this purpose, the Bank Handlowy W. Warszawie SA will ; maintain a Central Account with the 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 Accounts, maintained by the Bank Handlowy W Warszawie SA with the Reserve Bank of India, will be used for
depositing the rupee holdings of the Bank Handlowy W Warszawie SA and for replenishing the accounts of the Bank, Handlowy W Warszawie
SA with the authorised Indian commercial banks and for operating the technical credit.
(b) The accounts maintained by the Bank Handlowy W Warszawie SA with the Indian commercial banks will be used for carrying out
all other operations connected with the payments of commercial and non-commercial nature, as mentioned above:
2. (a) The Central Account will be replenished by transfer of funds in Indian rupees from the accounts maintained by the Bank
Handlowy W Warszawie SA with the Indian commercial banks and by receipts under the technical credit.
(b) The accounts with the commercial banks will be replenished by transfer of funds from other similar accounts and from the Central
Account and from the credit repayments accounts.
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 Polish People’s Republic by the physical and juridical persons
residing in India, by crediting the amounts of such payments to the accounts of the Bank Handlowy W Warszawie SA with the Indian
Likewise the payments which are to be effected by the physical and juridical persons residing in the Polish People’s Republic to the
physical and juridical persons residing in India in accordance with the Polish Foreign Exchange Control Laws and Regulations will
be effected by debiting the accounts maintained by the Bank Handlowy W Warszawie SA with the Indian Commercial Banks under the instructions
of the Bank Handlowy W Warszawie SA.
1. Upon expiry of this Agreement, any balance in the rupee accounts of Bank Handlowy W Warszawie SA or any debt of the Bank Handlowy
W Warszawie SA in connection with the grant of technical credit, shall be used during the ensuing 12 months for the purchase of Indian
or Polish goods, as the case may be. Payments arising from contracts concluded before the expiry of this Agreement, but falling due
after the expiry of this Agreement, shall, notwithstanding the expiry of this Agreement, continue to be effected in accordance with
Article 8 of this Agreement, and be utilised for the purchase of Indian or Polish goods, as the case may be, during the ensuing
12 months after the maturity date of each payment.
2. If on the expiry of the said period of twelve months some balances are left outstanding, the Contracting Parties will hold consultations
immediately for preparing a plan of liquidating the outstanding balances within a period of six months through purchase of goods
of special interest to the creditor, and the debtor party will facilitate the supply of those goods.
2. However, in case there are still some outstanding balances after the expiry of this period, both parties shall meet and evolve
a mutually acceptable solution.
In order to facilitate the implementation of this Agreement, both Contracting Parties agree to consult each other in respect of matters
connected with the trade and payments between them. For this purpose, the representatives of the two Contracting Parties will meet
at the request of either party at a place and date to be mutually agreed upon within 45 days of the. request.
The present agreement shall come into force on the 1st January, 1975 and shall remain valid for a period of three years. However,
either party shall have the option of terminating this Agreement after giving six months’ notice on or after 1st July, 1976.
DONE and signed in New Delhi on the 2lst December, 1974 in two originals in English language, both being equally authentic.
On behalf of the Government of India
Secretary to the
Government of India,
Ministry of Commerce
On behalf of the Government of the Polish People’s Republic
Deputy Minister of Foreign
Trade and Shipping