TRADE AGREEMENT' BETWEEN THE GOVERNMENT OF
INDIA
AND THE GOVERNMENT OF PAKISTAN Karachi, 1 September 1963
The Government of India and the Government of Pakistan,WITH a view to developing, extending and consolidating trade and economic relations between the two countries, HAVE resolved to enter into the following Agreement Article I The two Governments recognising the needs and requirements of each other in the context of their developing economies undertake to
explore all possibilities for expansion and promotion of trade between the two countries on the basis of mutual advantage. Article II Each Government shall accord to the commerce of the country of the other Government treatment no less favourable than that accorded
to the commerce of any third country. Article III The provisions of Article II shall not apply to the grant or continuance of any : (a) privileges which are or will be granted by either of the two Governments in order to facilitate frontier trade, (b) preferences, advantages, privileges or immunities accorded by either country to any third country prior to the 15th August, 1947,
or in replacement thereof, and (c) any advantages accorded in connection with Customs Union, or Free Trade Zone of which either may become a member. Article IV With regard to commodities mentioned in Schedules 'A' and 'B' to this Agreement, the two Governments shall facilitate imports and
exports to each other 9 territories in accordance with their respective laws, regulations and procedures. Article V The Export and/or Import of goods not included in Schedules 'A' and 'B' will also be permitted in accordance with the laws, regulations
and procedures in force in either country from time to time. Article VI The two Governments further agree to enter into such Special Arrangements, including arrangements relating to Border Trade, as may
be considered by them to be necessary, from time to time, during the period of the validity of this Agreement to facilitate the movement
of goods from one country to the other. Article VII The two Governments agree to accord subject to their respective laws and regulations, reasonable facilities for the holding of trade
fairs and exhibitions and visits of businessmen and Trade Delegations sponsored by the Government concerned. Article VIII In order to facilitate the implementation of this Agreement, the two Governments shall consult each other as and when necessary and
also review the working of the Agreement at least once a year. Article IX This Agreement shall come into force from the 1st of September 1963 and shall remain in force for a period of two years. The Agreement
will be extended for a further period of one year unless either party gives to the other notice for its termination three months
before the expiry of the said period of two years. DONE at Karachi this first day of September, 1963 A.D. in two original copies in English language, both of which are equally authentic,
Sdl S. VOHRA For the Government Of India Sdl- E.A. NAIK For the Government of Pakistan SCHEDULE 'A' LIST OF ITEMS EXPORTABLE FROM INDIA I Animal and Marine Products 1 Leather Manufactures excluding boots and shoes 2, Finished leather 3. Animal casings. II Agricultural Products 1 - Cigar and Cigarettes 2. Hemp other than manila, sisal and aloe 3. Palmyra fibre 4. Tapioca, Tapioca Flour (Manioc Meal) and products 5. Saga 6. Fresh fruits including bananas 7. Fruits products 8. Plywood (commercial and Tea-chests) 9. Cotton seed oil 10. Henna powder 11. Coir, Coir yarn and coir products 12. Tobacco (raw and manufactured) 13. Tamarind 14. Turmeric 15. Castor oil 16, Groundnut oil 17. Linseed oil 18. Salad oil 19. Cotton seed cake 20. Deoiled cake (Rice bran) 21. Vegetable oil 22. Essential oils 23. Beedi leaves, II Drugs, Pharmaceuticals, Chemicals and Allied Products I - Calcined magnesite 2. Bichromates 3. Alumina ferric 4. Ferro manganese 5~ Pigments, paints and varnishes 6. Printing inks other than black 7. Fountain pen ink 8. Myrohalan and ermact 9. Nux voinica alkaloids and preparations 10. Soaps, toiletries, hair oil and perfumes I1 Glycerine 12, Hydraulic brake fluid 13. Pharmaceuticals, drugs, medicines, vaccine, serums, etc. wholly indigenous. 14, Safety matches and fireworks 15. Crockery 16. Magnesium chloride 17. Ethyl Alcohol and Industrial Alcohol 18. Rubber products including bicycles tyres and tubes other than those types of tyres and tubes export of which is banned. 19. Asbestos products 20. Liquid Glucose 21. Benzene 22. Surgical cotton 23. Strychnine 24. Morphine 25. Bromides (Sodium and Potassium and Calcium) 26. Liquid Bromide 27. All antibiotics 28. All alkaloids 29. Synthetic drugs 30. Tetracyclins 31. Hamycin 32. Anti-Tubercular drugs (P.A.S. and Salts) 33. Anti-Dysentry drugs 34. Bleaching powder 36. Hydrochloric acid 36. Hydrogen peroxide 37. So dium, car nate 38. Liquid phlorine 39. Anti-Leprotic drugs (D.S.S. and Derivatives) 40. Amodiaquin 41. Vitamin A' 42. Vitamin C' 43, Ernetine 44. Sanfonine 45. Quinine 46. Brucine 47. Synthetic hormones 48. Aspirin 49. Calcium gluconate and other calcium salts 50. Ferro gluconate 51. Nikethamide 52. Insecticides, pesticides (formulatics only), Fungicides 53, Dyeing and tanning products 54. Dentiffics. IV. Engineering Products 1. Aluminium and A.C.S. conductors 2. Insulators 3 Distribution Transformers 4. Transmission poles and towers 5. Air conditioners, water coolers and refrigerators 6. Public address equipment 7. Radio receivers 8. Batteries 9. Rubber and plastic insulated house wiring cables 10. Electric motors 11. Bicycles and bicycle parts 11 Oil expellers 13. Electricity House service meters 14. Agricultural implements (if tractor drawn) 15. Cotton and hair belting 16. Screws and hinges 17. Diesel engines (stationary) 18. Coated abrasives 19. Duplicators 20. Zip fasteners 21. Buckles 22. Eyelets 23. Vacuum bottles and flasks 24. Collapsible tubes 25. Ball bearings 26. Pumps (coupled with prime movers or not) (Centrifugal pumps) 27. Pumps driven by diesel engines and electric motors 28 Railway materials including rolling stock, etc. 29. Precision and scientific instruments; survey instruments 30. Machinery parts 31. Metal containers 32. Paper and pulp making machinery 33. Grey iron castings, forgings and cast iron pipes 34. Rolled steel products 35. Steel castings and forgings 36. Foundry castings for machine parts 37, Crown corks 38. Cutlery 39. Nuts, bolts, etc. 40. Sewing machines 41. Electric fans and parts 42. Safety Razor blades 43. Handtools and small tools 44. Ebonite sheets 45. Steel furniture 46. Tin plates containers 47, Household utensils of iron and steel, brass and aluminium 48. Kerosene stoves 49. Weighing machines 50. Split pulleys 51. Scientific instruments of all types 51 G1 buckets 53. Arc welding electrodes 54. Enamelled copper wire 55. Sandpaper 56. Locks and padlocks 57. Steel structural and fabrication and conduit pipes and fittings 58, Sugarcane crushing machinery 59. Pressure lamps and stoves 60. Milk steel pipes 61, Electric tools, appliances and accessories such as conduit pipes, switches, bells, holders, cut-outs, etc. 62. Rods and tubes 63. Fire extinguishers 64. Textile machinery 65. Cement machinery V. Mining Products 1 . Mica bricks 2. Micanite 3. Ground mica 5. Ilmenite 6. Magnesite 7. Iron ore 8. Manganese ore 9. Coal and coke 10. Limestone 11. Stone boulders and Pakur stones VI Plastics and Sports Goods 1. Spectacle frames 2. Fountain pens 3. Plastic and Moulded goods including umbrella handles 4. Linoleum 5. Leather cloth 6. Bangles 7. Sports goods 8. Decorative laminate. VII. Cotton and Woollen, Textiles, such as 1. Cotton, silk, art silk, and rayon fabrics 2. Handloom fabrics 3. Cotton sewing thread 4. Durries 5. Furnishing fabrics 6. Garments VIII. Food 1 . Spices including pepper, provisions and oilman stores 2. Preserved fruits and vegetable products (Bottled and canned) 3. Processed food 14. Cane, Jaggery and Powder (Indian Gur) IX. Household and Building Materials 1. Window, door and other frames I GT Pipes and fittings 3. Household heating and electrical fittings and fixtures 4. Cooking ranges and heaters 5. Electric irons, toasters, kettles, etc. 6. Roofing tiles T Sanitary ware 8. Manhole covers and plates 9. Hurricane lanterns 10. Safes, strong boxes. 11. Roof fittings 12. Prefabricated building materials, sanitary and plumbing materials. X. Others I . Biscuits 2. Confectionery and chocolates 3. Potable spirits and beer 4. Red Earthen tiles 5. Agarbathies & Pencils 7. Carbon paper and typewriter ribbons 8. Books (Printed and others) 9. Brass artware and other handicrafts 10. Bees wax 11. Paraffin wax 12. Opium, raw 13. Exposed cinematographic films whether developed or not 14. Gramophone records 15. Clocks and watches 16. Umbrella and umbrella parts 17. Handicrafts and cottage industry products 18. Artificial dentures 19. Stationery articles 20. Ball-point pencils 21. Sandalwood chips 22. Cigarette paper 23. Cycle rims 24. Artistic silver, copper, brass and bidri products 25. printing inks 26. Guar gum 27. Ivory articles 28. Wood carvings 29. Earthenware 30. Filigiri work 31. Fancy jewellery 32. Basket ware 33. Shellac and seed lac 34. Forest produce including bamboos, canes and sun grass 35. Khari salt 36. Silbatta 37. Cutch and gambier 38. Myrobalan and Myrobalan products 39. Glass and glassware including tableware 11 Furs, raw or tanned, all sorts and manufactures thereof 13. Bile of Cow (oxgall) 14. Sheep casings 15. Animal hair (new) 16. Dried blood of animals 17. Gelatine and take glue 18. Cotton raw 19. Cotton waste soft [as at (i) to (xiii) below], cotton linters and yellow pickings: i) Bondas ii) Card Fly iii) Card strips iv) Comber fly (v) Cylinder fly (vi) Droppings willowed. and un-willowed (vii) Flat fly willowed and un-willowed (viii) Cutter fly (ix) Luckrine fly (x) Oily (xi) Rings weep (xii) Rubbings (xiii) Solid bondas 20, Hard cotton waste in cuts or pieces not exceeding three inches in length 21. Cotton seed and cotton seed oil cake 22. Cotton seed hull fibres 23. Cotton seed hull or husks 24. Cotton durries and carpets used for floor coverings 25. Cotton rope and niwar 26, Fishing ropes 27. Cotton fishing nets 28. Cotton rags 29. Cotton yarn 30. Cotton textiles, (grey or specialised goods) 31. Handloom cloth 32. Hosiery 33. Sewing thread 34. Readymade garments 35. Cotton wool absorbent 36, Kgrpok, Kapok seed and Kapok seed oil 37. Sunn hemp 38. Raw silk waste, unprocessed 39. Cumin seeds 40. Castor seed and castor seed cake 41. Oil seed cake, all sorts 42. Guar seed and its by-products 43. Essential oils 44. Shark liver oil 45. Methylated spirit 46. Power Alcohol 47. Molasses 47-A. Dhanicha seeds 47-B. Chuna Khari pearls 47-C. Eggs and Poultry 47-D. Books and Periodicals 48. Dried fish, fish meal and fish maws 49. Bones crushed, bonemeal and bone grit 50. Bone dust and bone sinews and similar articles 51. Horns and hooves, crushed and uncrushed including shavings 52. Honey and bees wax 53. Herbs, crude drugs, extracts and indigenous drugs and medicines 54. Artemissia 55. Ephedra and Ephedrine hydrochloride including crystals and extracts 56. Santonine 57. Drugs and Pharmaceuticals 58. Glycerine 59. Chemicals 60. Pyrethrum insecticides 61. Turpentine 62. Henna leaves and powder 63. Saltpetre 64. Rosin 65. Rock salt and sea salt 66. Chrome ore 67. Gypsum 08. Magnesium Silicate (Soap stone) 69. Sodium silicate 70. Lime and lime stone (from West Pakistan only) 71. Surgical instruments including parts and accessories thereof 72, Medical, dental and veterinary instruments and appliances, Hospital equipment 74. Surgical rubber goods 75. Scissors, all sorts 76. Cutlery 77. Household utensils 77-A. Forest Produce 77-B, Fresh Fruits 77-C. Green spices 77-D. Betel nuts 78. Aluminium, Brass, copper and other metallic wares, all sorts 79. Hardware all sorts 80. Machinery and spare parts 81. Mechanical tools 82. Electrical goods including fans, etc. 83. Musical instruments including parts and accessories thereof 84. Articles made of marble 85. Ivory goods 86. Brass and ivory inlaid wooden articles 87. Handicraft articles, all sorts 88. Embroidered goods, all sorts 89. Novelties and Curies other than those containing silver and gold 90. Gold and silver thread (real zari) and imitation articles made therefrom 91. Kashmir Artware 92. Pashmina cloth and manufactures thereof with or without silk and/or cotton embroidery work 93. Art fabrics 94. Toys, all sorts 95, Conch shell products 96 Ded shoes 97. Glass bangles 98. Hand bags 99. Peshawari Chappals with Zari and embroidery work 100. Canvas shoes with rubber soles 101. Tea 102. Rice 103. Biscuits and confectioneries 104. Canned and Bottled fruits, chutnies, pickles, jellies, curry powder and syrups 105. Canned fish, frozen fish and prawns and shrimps 106. Beer 107. Tobacco including Virginia type 107-A. Betel leaves 107-B. Fluorspar 107-C. Nylon guts and mono filament 107-D. Live Tortoise 108. Macaroni and vermicelli 109. Sports goods, all sorts, games, gymnastics and athletic , accessories and requisites thereof. 110. Guts for tennis rackets and strings for musical instruments 111. Rubber manufactures, 112. Rattan (cane) furniture and its other manufactures 113. Hurricane Lanterns 114. Pressure lamps, stoves and mantles 115. Sewing machines 116. Padlock 117. Sanitary ware 118. Ornamental tiles 119. Cement, Portland 120. Asbestos sheets 121. Toilet requisites and perfumery 121 Razor Blades 123, Spectacle Frames 124. Sun glasses 125. Imitation Jewellery 126. Fountain pens and pencils 127. Plastic manufactures 128. Buttons (Mother of pearl, horns, etc.) all sorts 129. Bicycles and parts 130, Cycle tyres and tubes 131. Paints and varnishes 132. Newsprint, paper and board, all sorts. 133. Gramophone records 134. Postage stamps 135. Chemical Fertilizers including Urea 136. Industrial alcohol 137. Fresh fish 138. coal NOTE : The export of goods included in this list will be subject to availability and in accordance with the laws and regulations and
procedures in force in Pakistan from time to time. PROTOCOL PROTOCOL TO THE TRADE AGREEMENT BETWEEN THE GOVERNMENT OF INDIA AND THE GOVERNMENT OF PAKISTAN SIGNED ON THE 1ST SEPTEMBER, 1963. In pursuance of Article VI of the Trade Agreement between the Government of India and Government of Pakistan, the two Governments
have agreed to enter into, by means of this Protocol, S.No | Commodities | Country of Exports | Country of Import and Quantities | | Route | Remarks | | | | Pakistan | | | | 1.
2.
3.
4. | Coal
Stones boulders including pakur stone
Raw jute and jute cuttings
Raw cotton | India
India
Pakistan
Pakistan | East 95QOO tons (per
month)15,00 tones (per month)Pakistan (East)
40,000 tons (per year)
10,000 tons (per year.)
India
India | West 20QOO tons (per month) | By all rail route
By rail-cum sea route
By rail (Broad gauge)
By rail (Meter gauge)
| Provided supplies are not interrupted by muses beyond human control, such as shoes, accidents, floods, etc.
To be considered by the Government of India if this quantity also could be supplied by all rail route.The movement of boulders will be subject to details being settled between the Railways concerned
Ditto. Quantities to be indicated by India to Pakistan by the end of September each year. | Special Arrangements in respect of the commodities specified belowTHIS Protocol is signed at Karachi on the first day of September, 1963, in two original copies in English language, both of which
are equally authentic. Sd / S. VOHRA - For the Government of India. Sdl- E.A. NAIK - For the Government of Pakistan. EXCHANGE OF LETTERS, KARACHI, 1 SEPTEMBER 1963 Karachi 1st September, 1963 My Dear Mr. VOHRA, During the course of the discussions between our two delegations regarding the conclusion of the new Trade Agreement signed to-day,
it was agreed that the validity of the Trade Agreement between India and Pakistan, dated March 21, 1960 shall be deemed to have been
extended to August 31, 1963. 1 shall be grateful if you can kindly confirm that the above sets out correctly the understanding reached between us. Yours sincerely, Sdl E.A. NAIK Mr. S. VOHRA Leader of the Indian Trade Delegation, Karachi. My Dear Mr. NAIK I write to acknowledge the receipt of your letter of today's date which reads as follows (Text Not Reproduced) I confirm that the foregoing correctly sets out the understanding reached between us. Yours sincerely, Sdl S. VOHRA Mr. E. A. NAIK, Leader, Pakistan Trade Delegation, Karachi. Karachi, 1st September, 1963 My Dear Mr. NAIK, During the course of discussions between our two delegations regarding the review of the Trade Agreement' between the Government of
Pakistan and the Government of India dated March 21, 1960 and regarding the conclusion of the new Trade Agreement between the two
countries signed to-day, it was agreed as under : (a) With reference to para 7 of Protocol No. 1 of the above-said Agreement, dated March 21,1960, the amount outstanding in the "National
Bank of Pakistan Clearing Account 'A'" maintained with the State Bank of India under the said Protocol No. I may be liquidated by
import by India of the following commodities from Pakistan : (i) Commodities mentioned in Group 'E' of Schedule I of Annexure I to the Protocol No. I mentioned above. (ii) Urea. (iii) Industrial Alcohol. (iv) Such other commodities as may be mutually agreed upon. (b) The "National Bank of Pakistan Clearing Account 'A'" with the State Bank of India will be continued beyond August 31, 1963 under
the terms and conditions provided in Protocol No. 1 to the above-said Agreement, dated March 21, 1960 and the banking arrangements
made between the National Bank of Pakistan and the State Bank of India in pursuance thereof, till such time as the entire amount
outstanding is liquidated. (c) It was agreed that the following commodities upto the quantity/value mentioned against each may be imported by India towards the
liquidation of the said amount outstanding: | COMMODITY | QUANTITY/VALUE | 1. | Urea | 30.000 tons | 2. | Gypsum | Indian Rs 50,00,000 | 3. | Industrial alcohol | Indian Rs 12,00,000 | The prices, specifications, quantities etc. of urea and Gypsum will be negotiated by the concerned Pakistan Industrial Development
Corporation on the one hand and the State Trading Corporation of India and the Fertiliser Corporation of India, respectively, on
the other, to the satisfaction of the Contracting Parties. Contracts will be entered likewise between the concerned manufacturers
and the State Trading Corporation of India regarding export of Industrial Alcohol, (d) It was agreed that subject to the rules and regulations for the time being in force, Pakistan will facilitate the export to India
of the commodities as mentioned in paragraph 1(a) and 1(c) above.. 2. 1 shall grateful if you would kindly confirm that the above sets out correctly the understanding reached. Yours sincerely Sdl- S. VOHRA Leader, Indian Trade Delegation Mr. E.A. NAIK, Leader, Pakistan Trade Delegation, Karachi. Karachi Ist September, 1963 My Dear Mr. VOHRA, I write to acknowledge receipt of your letter of to-day's date which reads as follows : (Text Not Reproduced) E A NAIK 2. 1 confirm that the above sets out correctly the understanding reached. Yours sincerely, Sdl- E. A. NAIK Leader, Pakistan Trade Delegation Mr. S. VOHRA Leader, Indian Trade Delegation, Karachi. PROTOCOL I PROTOCOL I TO THE TRADE AGREEMENT OF IST SEPTEMBER, 1963 BETWEEN THE GOVERNMENTS OF INDIA AND PAKISTAN, RAWALPINDI, 17 JULY, 1964 In pursuance of Article VI of the Trade Agreement between the Government of India and the Government of the Islamic Republic of Pakistan
signed on the 1st September, 1963, the two Governments have agreed to enter into the following special Arrangement to facilitate,
on a self-balancing basis, the exchange between the two countries of the commodities mentioned in the Schedule below, to the extent
of the values mentioned against each subject to the conditions mentioned hereinafter : Exports from Pakistan to India | Exports from India to Pakistan | Joshi Rice Kagni Rice Rs 365.00 lakhs | Coal Rs.200 lakhs Biri
leaves
Rs 40 lakhs Spices - (excluding chillies, ginger,
cloves and turmeric)
Rs 45 lakhs Lime stone
Rs. 10 lakhs Umbrella fittings
Rs. 12 lakhs tone boulders
Rs. 10 lakhs Crude Drugs
Rs. 12 lakhs Railway equipment as
Rs.36 lakhs | Total
Rs 365.00 lakhs | Total
Rs365.00
lakhs
| |