TRADE AND PAYMENTS AGREEMENT BETWEEN THE GOVERNMENT OF INDIA AND THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF ROMANIA
New Delhi, 10 December 1975
The Government of INDIA
The Government of the Socialist Republic of ROMANIA,
HAVING in view the present situation of friendly relations between the two countries and peoples and desiring to develop the existing
economic and commercial relations between the respective countries, and
DESIRING to strengthen and diversify the commercial and economic relations between them in conformity with their developmental and
commercial objectives on the basis of equality and mutual advantage,
HAVE agreed as follows :
Both Governments shall promote the expansion of trade and economic relations between them within the framework of this Agreement and
in conformity with their respective laws and regulations. They will study and with utmost goodwill take decision on the suggestions
which either of them would like to present for the consideration of the other with the purpose of achieving closer trade and economic
During the validity of this Agreement the trade exchange between the two countries shall be effected on a balanced basis. For this
purpose the imports under the contracts concluded or which are to be concluded on the basis of this or earlier trade agreements with
the payment on
deferred payment terms or on cash basis as well as all payments of non-commercial nature will be taken into account as and when payments
are made. Likewise re-payments of credits under the Agreement on economic and technical cooperation and payments of interest thereon
will also be similarly taken into consideration.
Both Governments shall grant each other most-favoured-nation treatment in all matters relating to :
(a) customs duties and charges of any kind, including the method of levying such duties and charges imposed on or in connection with
importation or exportation, or imposed on the transfer of payment for imports or exports;
(b) rules and formalities connected with customs clearance;
(c) all internal taxes or other internal charges of any kind imposed on or in connection with importation and exportation;
(d) the issuance of import and export licences or permission where such licences or permissions are prescribed under their regulations.
Any advantage, favour, privilege or immunity granted by either of the two Governments to the import or export of any product originating
in the territory of a third country or destined for its territory, shall be accorded immediately and unconditionally to the like
product originating in the territory of either of the two countries or destined to be imported into its territory.
The Provisions of Article III and IV shall not apply to
(a) special preferences or other advantages accorded on replacement of previously existing preferences or advantages, in conformity
(b) tariff preferences or other advantages accorded by either party to the contiguous countries for the purpose of facilitating frontier
(c) special preferences or other advantages accorded by either party resulting from its association in a customs union or a free
trade area, in conformity with GATT;
(d) tariff preferences or other advantages which, under GATT auspicious, either party may grant to other developing countries under
any trade expansion or economic cooperation, scheme in which the other party is not a member.
Juridical and physical persons of either of the two countries shall enjoy the most-favoured-nation treatment in respect of personal
protection and protection of property when effecting commercial activities in the territory of the other country provided that the
enjoyment of this treatment shall be subject to the laws and regulations of such other country which are generally applicable to
all foreigners alike.
The export of goods from India to the Socialist Republic of Romania and from the Socialist Republic of Romania to India during the
period of validity of this Agreement will be carried out in accordance with the attached schedule A (List of Goods available for
export from the Socialist Republic of Romania to India) and Schedule B (List of Goods available for export from India to the Socialist
Republic of Romania) which constitute an integral part of this Agreement. The Schedules can be extended or altered from time to time
as may be agreed upon between both Governments.
The import and export of goods stipulated in Article VII will be carried out in accordance with the export, import and foreign exchange
regulations in force from time to time in either country and on the basis of contracts to be concluded between Indian physical and
juridical persons including Indian State-owned Organizations on the one side and the Romanian enterprises and organization duly authorized
under the Romanian laws to carry on foreign trade activities as juridical persons on the other.
The provisions of the present Agreement do not effect the rights of the Indian physical and juridical parties and the rights of the
Romanian enterprises and organizations authorized to carry on foreign trade activities 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 Schedules A and B.
Both Governments shall encourage and facilitate the conclusion of the long term contracts as appropriate, relating to imports and
exports between governmental trading organizations of the two countries based on each country's trade and development policies and
The goods so exported from India to the Socialist Republic of Romania and from the Socialist Republic of Romania to India are meant
for use in the Socialist Republic of Romania and India respectively and shall not be re-exported to any other country.
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 Socialist Republic of Romania as well as any other payments between the two countries on which
agreement will be reached between the Reserve Bank of India, Bombay and the Romanian Bank of Foreign Trade, Bucharest will be effected
in non convertible Indian rupees.
2. For the purpose of paragraph 1 of the Article,
(a) The Romanian Bank for Foreign Trade will continue to maintain a central account with the Reserve Bank of India and one or more
account(s) with one or more Commercial Bank(s) in India authorized to deal in foreign exchange.
(b) The Central Account will be used for depositing the rupee balance and for replenishing the account(s) with the Commercial Bank(s)
and for operating transactions relating to technical credits.
(c) The Account(s) with the Commercial Bank(s) in India will be used for carrying out all operations of commercial and non-commercial
3. (a) The Central Account will be replenished by transfers of funds from the Account(s) with Commercial Bank(s) and by receipts on
account of technical credits.
(b) The Account(s) with Commercial Bank(s) will be replenished by transfers of funds from other such account(s) and from the Central
4. (a) Payments permitted in accordance with the Indian Exchange Control Laws and Regulations and the Rules made thereunder will be
effected on the basis of this Agreement to the physical and juridical persons residing in the Socialist Republic of Romania by physical
and juridical persons residing in India, by crediting the amounts of such payments to the said account(s) of the Romanian Bank for
Foreign Trade with the Commercial Bank(s) in India.
(b) Likewise payments permitted under the Romanian Foreign Exchange control Laws and Regulations and the rules made thereunder, will
be effected by the physical and juridical persons residing in the Socialist Republic of Romania to the physical and juridical persons
residing in India by debiting the amounts of such payments to the said account(s) with the Commercial Bank(s) in India.
5. The details in regard to the procedure for operation of the central account will be mutually agreed upon between the Reserve Bank
of India and the Romanian Bank for Foreign Trade.
6. Any balances in the Rupee Accounts of the Romanian Bank for Foreign Trade or any debt of the Romanian Bank for Foreign Trade in
connection with the grant of technical credit will, upon expiry of this Agreement, be used during the ensuing 12 months for purchase
of Indian or Romanian goods as the case may be. After the expiry of this period of 12 months, any balance outstanding will be settled
in such other ways as may be agreed upon between both Governments.
7. Payments arising from the contracts concluded during the validity and falling due after the expire of this Agreement shall, notwithstanding
the expire of this Agreement, be effected in non convertible Indian rupees which will be utilized for the purchase of Indian or
Romanian goods as the case may be. In case this amount in rupee remains unutilised, after the expire of 12 months from the date of
its accrual, and the Long Term Trade and Payments Agreement is not renewed, it will be settled in; such other ways as may be agreed
upon between both governments.
1. Both Governments will render all possible assistance for the shipment of the goods exported and imported under this Agreement from
one country to the other to the fullest extent possible in Indian and Romanian ships on the basis of world competitive freight rates
and conditions. 2. Mercantile ships of either country with or without charges 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
country's flags. This principle shall not, however, apply to ships engaged in coastal navigation.
Both Governments shall consult each other at the request of either Government as and when necessary in regard to the implementation
of this Agreement.
In order to expand and diversify the mutual trade, both Governments agree to facilitate increasing contacts between the Indian and
Romanian Trading as well as manufacturing and Actual Users Organizations through exchange of visits and information, participation
in fairs and exhibitions, and promoting joint cooperation in studying each others requirements and consumer preferences,.
The two Governments agree that periodic discussions should take place between both sides for identifying new avenues of industrial
cooperation and for securing development of resources as well as fuller utilisation of existing and creation of additional production
facilities in either country on a mutually beneficial basis with a view to bringing about further growth and diversification in the
bilateral trade exchanges.
The two Governments agree to promote collaboration between industrial and trading enterprises in the two countries for the purpose
of pooling together their resources and expertise for joint marketing in third countries and for meeting the needs of industrial
development programmes in third countries on the basis of joint cooperation.
With a view to further their common desire to cultivate markets in third countries, both Governments will also consider imports of
engineering goods, equipment and components from each other, for being incorporated in the exports of complete plants, equipment
and projects to third countries.
The present long-term Trade and Payments Agreement shall come into force from 1st January, 1976, after both Governments have informed
each other in writing of the approval of this Agreement, and shall be valid till the 3lst December, 1980.
This Agreement may be extended or renewed by negotiations between the two Governments.
DONE in New Delhi on l0th December, 1975, in two originals in the English and Romanian Languages, both texts being equally authentic.
Prof. D. P. CHATTOPADHYAY
Minister of Commerce
For the Government of India
Sd/- NlCOLAE M. NICOLAE
Minister State Secretary Ministry of Foreign Trade and International Economic Cooperation.
For the Government of the Socialist Republic of Romania
LIST OF GOODS AVAILABLE FOR EXPORT FROM THE SOCIALIST REPUBLIC OF ROMANIA 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. - Surgical industry.
- Oil field drilling equipment, parts of drilling equipment, accessories and tools including casings (seamless pipes).
- Oil field production. - Water Drilling.
- Plants for the chemical and petro-chemical industry, calculated soda and caustic soda plants, sulphuric acid plants based on pyrite,
carbon black plants, installations 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. Tractors, spares and components and tyres.
3. Agricultural machinery and implements including pumps.
4. River and Sea vessels; such as : -cargo vessels and tankers.
5. Machine tools, metal and wood working.
6. Diesel locomotives.
7. Various industrial machines and equipment.
8. Laboratory scientific equipment and apparatus (permissible types) and Electronic calculating machines.
9. Ball roller and taper bearings including steel balls for bearings.
10. Rolled steel and steel products.
11. Oil products, kerosene, gasoil, mazoot, lubricants, petroleum coke, naphtenic acid a.o.
12. Fertilizers of various kinds including urea and C.A.N.
13. Chemical and pharmaceutical products, calcinated soda, silicium carbide, salicylic acid, natrium benzoate, metaxylene, P.V.C.,
natrium bichromate, methylene chloride, sulfanilamide, pharmaceutical vaseline, gerovital a.o.
14. Intermediates and dyestuffs , -aniline oil betanaphtol a.o.
15. Synthetic tanning material.
16. Bleached cellulose of reed.
18. Various kinds of cardboard and paper, such as : cigarette paper, tissue paper, manifold paper, crepped toilet paper, napkin paper.
19. Beach wood and wooden tea cases.
20. Books, magazines, records.
21. Cinema films.
22. Handicraft and cottage industry products.
LIST OF GOODS AVAILABLE FOR EXPORT FROM INDIA TO THE SOCIALIST REPUBLIC OF ROMANIA
1. Spices, including pepper.
2. Coffee including instant coffee.
4. Tinned fruits, vegetables, coconuts and juices (tropical).
5. Vegetable oils (cotton seed oil, linseed oil, groundnut oil etc.)
.6. Decorticated de-oiled cotton seed and de-oiled groundnut extractions.
7. Cashew kernel.
8. H.P.S. Groundnuts.
9. Essential oils.
10. Animal casings, animal hair and bristles.
11. Drugs and pharmaceutical products including patent medicines.
12. Crushed bones.
13. Organic and inorganic chemicals
14. Shellac and shellac based products.
15. Medicinal herbs.
16. Gum tregacanth.
18. Cotton textiles including yarns up to 20 counts.
19. Bengal Deshi cotton.
20. Woollen textiles and carpets.
21. Jute bags and products.
22. Sisa1 and palmyra fibres.
23. Coir products and yarn.
24. Hides and skins, tanned and semi-tanned.
25. Finished leather.
26. Tanning materials, myrobalan and extracts.
27. Iron ore.
28. Mineral ores such as manganese, bauxite, barytes, etc.
29. Pig iron.
30. Ferro-alloys; ferro-chrome, ferro-manganese, ferro-silicon etc.
31. Mica and micanite products.
32. Electrical manufactures.
33. Wire ropes.
34. Coking coal and metallurgical coke.
35. Handicrafts and cottage industry products.
36. Sports goods.
37. Cinematographic films exposed.
38. Gramophone records.
39. Books, magazines and stamps.
40. Internal combustion engines, components and accessories thereof.
41. Commercial vehicles, components and accessories thereof.
42. Auto ancillaries and spares.
43. Industrial machinery, components and accessories thereof.
44. Rolled steel products including rails.
45. Various metal manufactures.
46. Engineering goods such as small hand tools, builders hardware, petrol metering and dispensing pumps, industrial sewing machines,
diesel engines, electric bulbs, switchgear low and high tension. office type-writers, textile machinery, etc.
47. Machine Tools
48. Rubber goods including tyres and footwear.
49. Dry salted and tinned fish, prawns.
50. Asbestos manufactures.
51. Paints, pigments, varnishes and enamels.
52. Mother of pearl buttons.
54. Hosiery knitwear and ready-made garments.
55. Surgical instruments and hospital equipment.