New Delhi, 3 September 1975
The Government of INDIA
The Government of the Republic of AFGHANISTAN,
RECALLING the provisions of the Treaty of Trade and Commerce between their two Governments, signed on the 4th April, 1950, especially
Article 15 thereof,
DESIROUS of further increase and diversification in trade, and
WITH A VIEW to further strengthening economic cooperation between the two countries,
HAVE AGREED as follows :
The Contracting Parties undertake to explore all possibilities for expansion and promotion of trade between the two countries on the
basis of mutual advantage, keeping in view the requirements of each other in the context of their developing economies. The Contracting
Parties undertake to grant import/export licences in accordance with their respective laws and regulations relating to import/export
and foreign exchange. The exports of goods from India to Afghanistan and Afghanistan to India during the period of validity of the
present Agreement will be carried out in accordance with the attached Schedules ‘A’ and `B’, the details of which shall be agreed
upon between the Contracting Parties for every calendar year. The total value of imports from Schedule `A’ will be equal to the total
value of exports effected from Schedule `B’.
Schedules ‘A’ and ‘B’ can be extended, altered or reviewed through letters exchanged between the Contracting Parties.
The import and export of goods not included in Schedules ‘A’ and ‘B’ shall also be permitted in accordance with the laws and regulations
in force in either country from time to time. The payments for such imports/exports shall, however, be effected in freely convertible
currencies acceptable to both countries.
The accounts pertaining to the exchange of goods may be maintained by either side in Rupees or Afghanis according to its convenience.
On the basis of this Agreement, the Afghanistan Bank and the State Bank of India will conclude a banking arrangement regulating
payments between the commercial establishments of the two countries and if necessary arrange for inclusion of other authorised banks
of their respective countries for this purpose.
The goods exported form India and Afghanistan under the present Agreement shall be of Indian/and Afghan origin and for consumption
in India and Afghanistan respectively. The said goods shall not be re-exported to third countries.
The Contracting Parties agree to co-operate effectively with each other to prevent infringement and circumvention of their laws, rules
and regulations relating to foreign exchange and foreign trade.
The Contracting Parties agree in principle to use part of the proceeds of goods exported to either country by either party for payment
of service in either country. Implementation of this Article is subject to the agreement of the respective authorities of the Contracting
In order to secure a desirable rate of growth over the present volume of trade and to facilitate the implementation of the present
Agreement and to remove any difficulties which may arise, the Contracting Parties agree :
(a) to review the working of the present Agreement at least once a year or as often as may be necessary in India and Kabul alternately,
(b) to set out a rate of growth of trade based on the total volume of trade between the two countries in the 1974-75 trade period
in terms of quantity and value.
The export of Afghan commodities shall take place by real or legal persons who have been authorised by the Government of the Republic
of Afghanistan to those real or legal persons in India that are authorised by the Government of India. The exports of goods from
India shall be made by real or legal persons who have been authorised by the Government of India to those real or legal persons in
Afghanistan, who have been authorised by the Government of the Republic of Afghanistan. However, the Contracting Parties agree that
fifty per cent of the volume of trade be carried by Afghan real or legal persons and fifty per cent by Indian real or legal persons.
For the promotion of a better introduction of their respective products, the Contracting Parties agree to provide in accordance with
their respective laws and regulations, the necessary facilities for the holding of trade fairs and exhibitions in their respective
countries as well as to assure greater participation in International Trade Fairs. They also agree to accord facilities for the
display of goods of each country in the permanent exhibition centres of the other.
This Agreement shall come into force as from the date of exchange of notes between the Contracting Parties confirming the approval
of the Agreement by their respective authorities, and shall remain in force for a period of three years. Thereafter, it shall be
extended for such periods as may be mutually agreed upon. This Agreement may be altered or modified by either Government through
the exchange of letters.
DONE at New Delhi on 3rd September, 1975, in two original copies in English language,, both of which are equally authentic.
A.N.VERMA, ABDUL SALAM,
President of Foreign Trade,
Ministry of Commerce, Ministry of Commerce,
For the Government of
For the Government of the
Republic of Afghanistan.
COMMODITIES FOR EXPORT FROM AFGHANISTAN TO INDIA
1. Fruits (dry and fresh all kinds).
3. Cumin Seeds.
4. Hides and skins.
5. Medicines, Extracts of Medicinal Herbs and Plants produced in Afghanistan.
6. Medicinal herbs (detailed as under):
Rosa Rose Flower (dried)
White and red Behmen (Urdu)
Bahmane (Safid wa Sorkh)
Raten Jot (Hindi)
Manna (taken from
8. Any other commodity that may be agreed upon between the two Governments.
COMMODITIES FOR EXPORT FROM INDIA TO AFGHANISTAN
1. Tea other than CTC and Dust
3. Cardamom (Big and Small)
5. Tobacco-raw and unmanufactured
6. Coir and Coir Products
7. Dyeing and Tanning Substances (natural)
8. Myroblam and Myroblam extracts
9. Leather Manufactures imported by private parties excluding Leather Boxes and Ladies Handbags
10. Jute Manufactures imported by private parties
11. Cotton Yarn, Cotton twist and cotton thread
COMMODITIES FOR EXPORT FROM INDIA TO AFGHANISTAN
1. Fabrics-mill made and handloom including sarees of cotton, rayon and wool; hosiery and knitted garment of cotton, rayon and wool;
other manufactures of cotton, rayon and wool; Fabrics and other manufactures of silk excluding sarees fabrics, sarees, scarves and
2. Food Products-
Confectionery (excluding Chewing gum)
Fish-dried and salted
Tapioca and its products
Cane Jaggery/ cane jaggery powder (India gur)
3. Agricultural Products-
Hydrogenated oils i.e. `Vanaspati’ or vegetable ghee
Vegetable oils excluding Castor Oil
4. Chemical products and Soaps-
Chemicals and Chemical preparations
5. Drugs, Medicines and Antibiotics-
Sera and vaccines
Alkloids of opium and its derivatives
Soap-toilet and household
Toilet requisites and perfumery
Paints, pigments and varnishes
6. Engineering goods-
Pumps driven by diesel engines and electric motors
Bicyles and their parts
Textile machinery such as Carding machinery and Weaving looms
Handtools and small tools, small rivercrafts
Sugarcane crushing machinery
Rice, Flour and oil crushing machinery
Automobiles parts other than those sent as spares with automobiles
7. Electrical Goods-
Electrical appliance and accessories such as conduit pipes, switches, bulbs, holders, cut-outs etc.
Electric bulbs and tubes
Electric fans and their parts
Electric torch lights
Batteries (dry and wet)
Ebonite sheets, rods and tubes
Cables and wires
8. Household and building Requirements-
Cooking ranges, heaters, electric iron, toasters, kettles, etc.
Household electrical fittings and fixtures
G.I.Pipes and fittings
Manhole covers and plates
Incandescent oil pressure lamps
Locks and padlocks
Bolts, nuts, screws and hinges
Scientific instruments of all types
Surgical and medical instruments
10. Rubber Manufactures-
Tyres and Tubes
Other rubber manufactures
11. Leather Manufactures-
Imported by Government Undertakings
Artificial leather goods
12. Handicrafts and Cottage Industry Products-
Stationery and papers
Exposed Cinema Films imported by Government or Government undertakings
Glassware including tableware, glass bottles and bangles
Artificial porcelain teeth
Books and printed matter
Refined mineral oils
Firebricks and fireclay
14. Jute Manufactures imported by Government or Government undertakings
15. Any other commodities agreed upon between the two Governments.
ILLUSTRATIVE LIST OF PRODUCTS AVAILABLE FOR EXPORT FROM INDIA AND AFGHANISTAN
I—EXPORTS FROM INDIA
1. Machinery and Plants and parts thereof e.g.
(i) Mining Machinery & Equipment
(ii) Canning Machinery and parts thereof
(iii) Slaughter House Machinery
(iv) Cement Plants
2. Road Making and Construction Machinery e.g.
(i) Cement mixers
(iii) Stone crushers
(iv) Polishing equipment
(v) Road Rollers
3. Iron and Steel Construction Materials not mentioned under the heading “Hardware” in Schedule `B’.
4. Petrol Pumps
5. Electric Generation, distribution and Sub-Station equipment including portable and fixed generators.
6. Water treatment, Sewage and Public Health Engineering Products
7. Telecommunication Equipment e.g.
Telegraph and Telegraph Apparatus & Equipment, Telephone Equipment etc.
8. Motor Vehicles e.g. Trucks, buses, dumpers and jeeps, including parts and ancillaries imported with motor
9. Wood working machinery
15. Central Airconditioning equipment
16. Accounting Machines
17. Cutting Tools
18. Ferrous and non-ferrous casting & forgings
19. P.V.C. products-including P.V.C. footwear
20. Radio Receivers
23. Other items not included in Schedules `B-I’ and `B-II’ to the Trade Agreement.
II—EXPORTS FROM AFGHANISTAN
5. Cotton seed cakes