New Delhi, 6 March 1974
The Government of INDIA
The Government of the People’s Republic of BULGARIA
ANIMATED by the desire to develop economic and trade relations between the two countries on a mutually advantageous and balanced basis
and to increase the volume of trade between them to as high level as possible.
HAVE AGREED upon the following :
1. Both Governments 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 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.
2. 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, including also payments of a non-commercial nature, deferred payments or payments in cash, relating to the contracts
concluded or to be concluded on the basis of this and other earlier Indo-Bulgarian Trade and Payments Agreement and the repayment
of the principal and payment of interest arising out of the utilisation of funds under Economic and Technical Co-operation Agreements
concluded between the two countries.
Upon importation and exportation of goods from one country to the other the two Governments will accord each other maximum facilities
allowed by their respective laws, rules and regulations. In any case the said goods shall enjoy the most-favoured-nation treatment
with respect to customs duties and charges of any kind imposed on imports or exports or in connection therewith with respect to the
methods of levying such duties and charges, with respect to rules, formalities and charges in connection with customs clearing operations
and charges of any kind imposed on or in connection with the imported goods.
The two Governments will accord each other in respect of the issuance of import and export licences treatment no less favourable than
that granted to any other country.
Any advantage, favour, privilege or immunity granted by either of the Governments to import or export of any product orginating in
the territory of a third country of destined for its territory shall be accorded immediately and unconditionally to the like product
originating in the territory of either of the Governments of destined to be imported into its territory.
The provisions of Articles 2 and 3 shall not, however, apply to the grant or continuance of any :
(a) privileges which are or will be granted by either of the Governments to contiguous countries in order to facilitate frontier trade;
(b) advantages resulting from any Custom Union or privileges, to which either Contracting Party is or may become a member;
(c) any advantages or preferences accorded under any scheme for expansion of trade and economic co-operation among developing countries
which is open for participation by all developing countries and to which either of the Governments is or may become a Party.
The export of goods from Bulgaria to India and from India to Bulgaria during the period of validity of the present Agreement will
be carried out in accordance with the export and import lists agreed upon between the two Governments for every calender year.
Schedules `A’ and `B’ attached to this Agreement are indicative lists of goods available for export from either country. These schedules
can be extended, altered or renewed by letters exchanged between the two Governments.
The import and export of the goods stipulated in Article 5 will be carried out in accordance with the import, export, and foreign
exchange regulations in force in either country and on the basis of contracts to be concluded between the Bulgarian foreign trade
organisations on the one side, and the Indian physical and juridical persons, including Indian state-owned organisations.
1. All payments of a commercial and non-commercial nature between physical and juridical persons residing in Bulgaria and physical
and juridical persons residing in India will be effected in non-convertible Indian Rupees.
2. For the purpose of effecting the aforementioned payments :
(a) The Bulgarian Foreign Trade Bank will continue to maintain a Central Account with the Reserve Bank of India and one or more accounts
with one or more commercial banks in India, authorized to deal in foreign exchange;
(b) The Central Account maintained by the Bulgarian Foreign Trade Bank with Reserve Bank of India, will be used for depositing the
rupee holdings of the Bulgarian Foreign Trade Bank and for replenishing the accounts of the Bulgarian Foreign Trade Bank with the
authorized Indian Commercial Banks and for operating the Technical Credit.
(c) The accounts maintained by the Bulgarian Foreign Trade Bank with the Indian Commercial Banks will be used for carrying out all
other operations connected with the payments of commercial and non-commercial nature mentioned above;
(d) The Government of India will grant to the Bulgarian Foreign Trade Bank through the Reserve Bank of India a technical credit up
to the amount of 15 million rupees. The technical credit upto an amount of 1 million rupees will be interest-free and above this
amount it will bear interest at the current rate of the three months Treasury Bills of the Government of India.
In the case when under the Central Account of Bulgarian Foreign Trade Bank with the Reserve Bank of India, mentioned in Article 7
paragraph 2(a) the balance exceeds the amount of 1 million rupees, the Reserve Bank of India under instructions of the Bulgarian
Foreign Trade Bank will secure the investment of the amounts under the account exceeding 1 million rupees in Treasury Bills of the
Indian Government and will undertake rediscounting of these bill whenever the Bulgarian Foreign Trade Bank needs funds under the
Central Account for affecting current payments.
(e) The Central Account will be replenished by transfer of funds in Indian Rupees from the accounts maintained by the Bulgarian Foreign
Trade Bank with the Indian Commercial Banks and by receipts under the technical credit;
(f) The accounts with the Commercial Banks will be replenished by transfers of funds from other similar accounts and from the Central
3. 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 People’s Republic of Bulgaria by the physical and juridical
persons residing in India, by crediting the amount of such payments to the accounts of the Bulgarian Foreign Trade Bank with the
Indian Commercial Banks.
Likewise, the payments which are to be effected by the physical and juridical persons residing in the People’s Republic of Bulgaria
to the physical and juridical persons residing in India in accordance with the Bulgarian Foreign Exchange Control Laws and Regulations
will be effected by debiting the accounts maintained by the Bulgarian Foreign Trade Bank with the Indian Commercial Banks, under
the instructions of the Bulgarian Foreign Trade Bank.
4. The Bulgarian Foreign Trade Bank and the Reserve Bank of India will enter into a banking arrangement on the technical details connected
with the preparation of this Agreement.
5. Any balance in the Rupee Accounts of the Bulgarian Foreign Trade Bank or any debt of the Bulgarian Foreign Trade Bank in connection
with the grant of technical credit will, upon expiry of this Agreement, be used during the ensuring 12 months for the purchase of
such Indian or Bulgarian goods as the case may be as were eligible for exchange during the previous year.
Payment 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, be effected in accordance with the provisions of this Article and be utilized in the
same manner as the balances referred to in the preceding sub-paragraph during the ensuring 12 months after such expiry of the Agreement.
In both cases, after the expiry of the said twelve months period, any balances outstanding will be settled in such a way as may be
agreed upon between the two Governments.
6. In the event of a variation in the current par value of the Indian rupee, viz., one Indian rupee being equal to 0.118489 grams
of fine gold (excepting when such change occurs as a result of revision of the official price of gold) the balances in the Central
Account maintained by the Bulgarian Foreign Trade Bank with the Reserve Bank of India mentioned in Article 7 of the Trade and Payments
Agreements, including the amounts invested in Indian Treasury Bills, and/or indebtedness of the Bulgarian Foreign Trade Bank resulting
from the use of the technical credit will be automatically revalued proportionately to the change in such par value.
1. The two Governments agree that, in exercise of their rights of shippers’ preferences they shall, to the maximum extent possible,
utilise the vessels owned or chartered by shipping organisations of the the two countries concerned for shipping cargoes imported
or exported under this Agreement on the basis of world competitive freight rates and conditions.
2. The most-favoured-nation treatment will apply to the ships of both countries in respect of port charges or dues to be levied, in
respect of the privileges rendered at entering or leaving the ports, as well as to the regulations in force regarding the stay of
ships, the crew, the goods, passengers, at the ports, and in respect of loading, unloading and trans-shipment of the goods. This
principle shall not, however, apply to ships engaged in coastal navigation.
In order to facilitate the implementation of this Agreement, the two Governments agree to consult each other at the request of either
party in respect of matters connected with 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 within 45 days of the receipt of the request.
This Agreement will come into force from March 6, 1974 and will remain valid until December 31, 1978.
DONE in New Delhi on March 6, 1974 in two original sets each in the Hindi and English languages, both texts being equally authentic.
On behalf of the Government of India
On behalf of the Government of the People’s Republic of Bulgaria
COMMODITIES AVAILABLE FOR EXPORT FROM BULGARIA TO INDIA
1. Complete Plants, Machinery, Equipment and Spare Parts
1. Complete plants, installations and spare parts thereof, including :
Enterprises for the food processing industry.
Factories for calcium carbide.
Factories for the production of Calcium tripolyphosphate.
Plants for compound fertilizers.
Complete agricultural plants (poultry farms, egg producing farms, stock-breeding Farms).
Machine building plants.
Other complete plants.
2. Metal-cutting, metal-working and wood-working machines including forging machines, machines with programme devices, aggregate machines
3. Road building and ceramic machines.
4. Heavy gantry, bridge and tower cranes and crane apparatus.
5. Electric trucks, motor trucks, components, units and spares.
6. Mopeds and components.
7. Electric hoists, units and components.
8. Machines for the food-processing industry.
9. Machines and appliances for the textile industry.
10. Railway wagons and components.
11. Diesel locomotives and spares.
12. Internal combustion engines, components and units.
13. Tractors and earth cultivating machines such as bulldozers, loaders, etc.
14. Agricultural machines.
15. Water pumps. irrigation and sprinking installations and machines,
16. Tonga baling machines and tobacco fermentation lines.
17. Machines and equipment for the chemical industry.
18. Medical and laboratory apparatus.
19. Radio telephones.
20, Tape recorders.
21. Components for TV sets.
22. Special electronic apparatus, electronic and other components.
23. Computers, appliances and spares.
24. Special power and measuring transformers.
25. Explosion-proof apparatus.
26. Special HT apparatus.
27. Electric insulation materials, including enamelled copper conductors.
28. Ball, roller and conical bearings.
II. Chemicals, Fertilizers and Pharmaceutical Products
31. Sodium nitrate.
32. Sodium nitrite.
33. Calcium carbonate.
34. Ammonium bicarbonate.
36. Ammonium chloride.
39. Soda ash.
41. Various other organic and non-organic chemicals and allied products.
43. Pharmaceutical products and intermediates, drugs and medicines.
44. Essential oils such as peppermint oil, lavender oil, terpinol etc.
45. Cosmetics and perfumery.
46. Used files (cleaned).
48. Dyes and dye intermediates.
49. Photographic paper and materials.
III. Steel and Non-ferrous Metals
51. Tool, alloy and special steel.
52. Rolled steel products.
53. Rolled steel balls.
56. Copper sheets and rolled copper sheets, brass sheets and profiles.
IV. Various Agricultural and Industrial Raw Materials and other Goods
57. Synthetic fibres and yarns.
60. Sunflower seed oil.
61. Goods for the hotel industry.
62. Tobacco and cigarettes.
63. Strew and viscose cellulose.
64. Seeds for sowing.
66. White cheese, kashkaval (yellow cheese) etc.
67. Books, pictures postcards, slides, etc.
68. Feature and documentary films.
69. Automobile tyres.
COMMODITIES AVAILABLE FOR EXPORT FROM INDIA TO BULGARIA
1. Fruits, fresh dried, processed and preserved and fruit juice and squashes.
2. Cashew kernels, cashewnut sheet liquid.
4. Other spices.
5. Oil-cakes (de-oiled) all sorts including de-oiled rice bran.
6. Tinned fish and prawns and other marine products.
7. Groundnuts H.P.S.
8. Sheep and Animal casings.
9. Fish meal.
10. Sesame seeds edible.
11. Vegetable oils, linseed oil, groundnut oil.
II. Beverages and Tobacco
3. Tobacco (unmanufactured).
4. Opium raw.
III. Crude Materials
1. Shellac and shellac based products.
2. Hides and skins, semi-processed and tanned.
3. Coir and fibres, yarn and manufactures.
4. Palmyra fibre.
5. Coir and steel ropes for ships.
6. Tanning agents like myrobalan extract.
7. Cotton waste.
8. Cotton linters (bleached & unbleached.
9. Raw jute.
10. Cotton Bengal Deshi and yellow pickings.
11. Crushed bones, horns & hooves.
IV. Minerals and Allied Materials
1. Mica and Micanite, and other mica products.
2. Iron ore.
3. Dead burnt magnesite.
4. Ferro manganese.
5. Kyanite, sillimanite, steatite, ilemenite, bauxite, calcinite.
6. Ferro chrome.
V. Engineering Products including Rolled Steel Items
1. Ferrous manufactures.
(a) Grey iron, malleable iron, spheredical iron and mechanite iron castings.
(b) Cast iron pipes and specials.
(c) Carbon and alloy steel castings.
(d) Carbon and alloy steel forgings.
(e) Steel pipes and tubes and fittings thereof
(f) Bright steel bars and shaftings.
(g) Fabricated steel structurals including transmission towers and hydraulic structurals like gates, gearning and penstock.
(h) Railway track fasteners, fittings and accessories. (i) Wire rope and strands.
(j) Stranded wire and barbed wire.
(k) Steel fasteners, all types, including wood screw-machines, screws, bolts, nuts and rivets, splitpins, cotter pins, wire nails,
panel pins, slive tacks and the like.
(l) Builders’ hardware.
(m) Mild steel arc welding electrodes.
2. Aluminium, semis, extrusions and fabrications including AAC, ACSR and insulated cables with aluminium conductors.
3. Machine tools and metal working equipment.
4. Small, cutting and hand tools (carbide tipped tools) Forge Form twist drill.
5. Internal combustion engines including diesel engines, pumps and compressors and parts and components thereof
6. Industrial machinery for the manufacture of sugar, paper, dairy, textiles, art silk, cement and chemicals and parts, components,
accessories and ancillaries thereof.
7. Solvent extraction Plant.
8. Chemical and Pharmeceutical machinery.
9. Other industrial machinery viz, weighing machines, Platformer scales, weight bridge, personal weigher, spring balance, circular
weighing balance, counter weighing machines.
10. Sewage and water treatment plants.
11. Dies, jigs end fixtures.
12. Cranes, hoists and lifts.
13. . Mining and benefication plants for minerals.
14. Construction machinery (including stone crusher, concrete mixtures, concrete vibrator, Asphalt mixture, pre-stressed equipment).
15. Foundry moulding and other foundry machines.
16. Plastic processing machinery.
17. Motor vehicles (including tippers, trucks, etc.) and vehicular components, parts and ancillaries thereof, industrial shunters
18. Mopeds, Motor-cycles, Scooters and three wheelers.
19. Bicycles and Bicycle components.
20. Other industrial roller chains.
21. Data processing machines and copying machines.
22. Sewing machines and components.
23. Knitting machines and components.
25. Dry batteries.
26. Electrical wiring accessories and lighting fittings.
27. Electrical generators, transformers, motors, circuit breakers, switch gears and control gears, audco lubricated taper plug valves,
28. Ball and roller Bearings and steel Balls.
29. Electric lamps, incandtescent and fluorescent.
30. Electrical measuring and industrial process (flow instruments and other Electrical & electronic instruments
31. Electrical appliances.
32. Water meters.
33. Telecommunication equipment.
34. Refrigeration, air-conditioning, ventilation and humidification equipment.
35. Drinking water coolers-10 gallons to 150 gallons capacity.
36. Electric fans and components.
37. Razor blades and safety razors.
38. Zip fasteners.
39. Kerbside petrol metering and dispensing pumps.
40. Insecticides sprayers.
41. Diamond drills and bits.
42. Oil Mill machinery like Oil Expellers, Oil filters and Oil Press.
43. Crown corks, alumunium capsules and roll-on pilfer proof caps.
44. lron and steel materials viz.
(a) Pig iron.
(b) M.S. wire (20 G and thicker).
(c) G.I. wire (16 G and thicker).
45. Agricultural implements and tools.
46. Steering wheels for boats.
47. Anchors for small boats.
VI. Other Manufactured Goods
1. Cotton textiles Rayon textiles including rayon dipped fabrics silk fabrics and polyester cotton fabrics.
2. Other textile products.
3. Jute goods including jute canvas and jute tarpauline.
4. Woollen textiles, woollen blankets and knitted wears.
5. Cigars and cigarettes.
6. Ready-made garments and hosiery products.
7. Tooth brushes.
8. Linoleum and other synthetic leather materials including P.V.C. Leather cloth.
9. Finished leather, footwear (including chappals) and other leather manufactures.
10. Sports goods including canvas shoes, tennis shoes and sneakers.
11. Carpets (machine made).
13. Surgical instruments and hospital appliances.
14. Wire melting, wire gauge and wire mesh.
15. Scientific instruments for laboratories and educational institutions.
16. Stationery articles.
17. Steel Tubular furniture.
18. Vacuum flasks and refills.
19. Surface coated and bonded abrasives and grinding wheel.
20. Animal hair including Bristles.
21. Collapsible tubes.
22. Aluminium kitchen utensils.
23. G. I. buckets.
24. Fountain pens
25. Wrist watches.
26. Cast stainless steel cutlery.
27. Gramophone records.
VII. Other Goods
1. Chemicals and allied products.
2. Essential oils.
3. Drugs and pharmaceuticals.
4. Dye and Dye intermediates.
5. Cosmetics, paints and varnishes, glass and glassware, paper and paper products, rubber products, plastic goods, crushed bones,
Rayon tyre cord and rayon tyre yarn, copper concentrates. handicrafts, artware and handloom products.