Indian Treaty Series

Djakarta, 28 December 1966

The Government of India and the Government of the Republic of Indonesia,

BEING desirous of strengthening the friendship traditionally existing between them,

AND of promoting close economic and commercial relations between their countries,

HAVE agreed as follows :

Article I

The Contracting Parties, shall, within the frame work of their laws and regulations as in force from time to time, afford necessary facilities for the import/export of commodities mentioned in the attached Schedules ‘A’ and ‘B’ which are indicative and not exhaustive.

They shall also provide facilities for import into and export from either country for commodities not specifically mentioned in the attached Schedules ‘A’ and ‘B’.

Article 11

Each Contracting Party shall, grant to the other most-favoured nation treatment in regard to custom tariffs, taxes, charges and customs procedures. The provision of this Article shall not apply to the grant or continuance of any :

(a) Privileges which are or will be granted by either of the two Parties in order to facilitate frontier trade;

(b) Preferences, advantages, privileges or immunities accorded by India to any third country prior to the 15th August, 1947 or in replacement thereof; and

(c) Advantages resulting from any customs Union, or Free Trade Area to which either of the Contracting Parties may become a member.

Article III

The Contracting Parties agree that the exchange of commodities and goods under this Agreement will be subject to prices and quality being satisfactory.

Article IV

In order to facilitate the implementation of the Agreement, the Contracting Parties agree to consult each other in respect of any matters arising from or in connection with the supply of goods or commodities between the two countries.
Article V

Contracting Parties agree to give full consideration to suggestions that may be made from time to time by the other Party for the expansion and diversification of trade.

Article VI

Each Contracting Party shall grant merchant vessels of the other party while entering, putting off and lying at its ports most -favoured-nation treatment accorded by the respective laws, rules and regulations to the vessels under the flag of any third country.

This Article shall not apply to any concessions made to ships engaged in the coastal trade of either Party.

Article VII

Payments for goods and services exchanged between the two countries shall be made in convertible currency subject to foreign exchange regulations of the country concerned.

Article VIII

The Contracting Parties agree to accord, subject to their respective laws and regulations, facilities for the holding of trade fairs and exhibitions and visits of businessmen and trade delegations.

Article IX

For purpose of this Agreement, goods originating in Indonesia shall be regarded as Indonesian products and goods originating in India as Indian products.

The country of origin shall be deemed to be the country where a product was produced and manufactured or underwent its last substantial processing, or in the case of non-processed agricultural products the country where the products were actually produced.

The Contracting Parties reserve the right to subject the importation of certain goods to the submission of a certificate of origin by an organisation authorised in this respect by the Government of the Country of Origin.

Article X

This Agreement shall come into force provisionally from the date of signature and finally on ratification by the Government of the two countries, and shall remain in force for a period of two years.

DONE at Djakarta on the 28th December, 1966 in two original copies in the English language, both of which are authentic.

For the Government of the Republic of India

Sd /-
Major General D. ASHARI
Minister of Trade of the Republic of Indonesia and Chairman of the Indonesian Trade Delegation.

For the Government of the Republic of Indonesia
Sd /-
MANUBHAI SHAH
Minister of Commerce of the Republic of India and Chairman of the Indian Trade Delegation.

SCHEDULE ‘A’

COMMODITIES AVAILABLE FOR EXPORT FROM INDONESIA TO INDIA

I. Petroleum product (kerosene oil high speed diesel oil, furnace oil, etc.)
2. Rubber, raw
3. Palm oil
4. Copra
5. Timber
6. Kapok
7. Gums and Resins
8. Cinnamon
9. Nutmeg
10. Betel nuts
11. Any other goods which are permitted to be exported under the import and export regulations of the country

SCHEDULE ‘B’

COMMODITIES AVAILABLE FOR EXPORT FROM INDIA TO INDONESIA

1. Textiles-made of cotton, wool and synthetic fibres, cotton yarn.
2. Jute manufacture and coir products.
3. Chemicals, pharmaceuticals and allied products including paints, pigments, varnishes, Dyes and Dye Stuff materials, soaps, cosmetics, toilets, perfumes and essences.
4. Rubber products such as tyres and tubes, rubber hoses, latex foam sponge rubber sheets, surgical rubber appliances, rubber belting, conveyer belts, including V belts etc.
5. Miscellaneous Manufactures such as manufacture of Leather and leather goods, ceramics, refractory
and glass products, paper and rayon products, plastic products, house-hold and building materials.
6. Pig Iron and rolled sheets products.
7. Engineering goods including (i) ferrous and non-ferrous casting and forgings, (ii) fabricated steel structurals, all types, (iii) railway rolling stock and track and signalling equipment and materials, (iv) all types of machine tools, (v) small, hand and cutting tools, (vi) diesel engines, pumps and compressors, (vii) electric motors, transformers, alternators and switch/control gear, (viii) complete plants (including components, spares and accessories thereof), for the manufacture of sugar, paper, cement, vegetable oil crushing and refining, solvent extraction, etc. (ix) motor vehicles and ancillaries and spare parts thereof (x) construction machinery, (xi) electric fans, lamps, cables and conductors, lighting fittings and mining accessories, (xii) bicycles and components/accessories thereof, (xiii) sewing machines, (xiv) public health engineering products. .
8. Any other goods which are permitted to be exported under the import and export regulations of the country.

NOTE VERBALE

NOTE VERBALE REGARDING THE PERIOD OF TRADE AGREEMENT
NEW DELHI, 28 DECEMBER 1966/24 MARCH 1969

The Embassy of the Republic of Indonesia in India presents its compliments to the Ministry of External Affairs, Government of India, and with reference to the former’s note dated l2th November 1968, and with regard to the interpretation as entertained by the Indonesian Government on Article X of the Trade Agreement between the two Governments signed in Djakarta on the 28th of December, 1966, has the honour to inform the latter the following : The afore-mentioned Article X of the Trade Agreement reads as follows :

This Agreement shall come into force provisionally from the date of signature and finally on ratification by the Governments of the two countries, and shall remain in force for a period of two years.”

Since the act of ratification by the Indian Government is said to have taken place in 1967, an earlier date than the similar act of ratification by the Indonesian Government, which as stated in the afore-mentioned Embassy’s note took place on the 26th of October, 1968, this later date of ratification for simple and practical reasons should be regarded as the final date of the coming into force of the trade Agreement, as stipulated in Article X.

This Trade Agreement should therefore remain in force for a period of two years beginning with 26th October, 1968 upto 25th October, 1970.

The Embassy would much appreciate if the Ministry of External Affairs could kindly confirm that the Government of India agree to the interpretation as stated above and accept the period of two years from 26th October, 1968 to 25th October; 1970 as the final period of validity of the present Trade Agreement.

The Embassy of the Republic of Indonesia avails itself of this opportunity to renew to the Ministry of External Affairs the assurances of its highest consideration.

New Delhi, December 23, 1968
KEDUTAAN BESAR REPUBLIK INDONESIA
SEAL

The Ministry of External Affairs,
Government of India,
New Delhi.

The Ministry of Foreign Trade and Supply presents its compliments to the Embassy of the Republic of Indonesia in New Delhi and has the honour to refer to the Embassy’s note No. 2934/K/EK/2.10, dated December 23, 1968, addressed to the Ministry of External Affairs regarding ratification of the Trade Agreement between India and Indonesia signed in Djakarta on December 28, 1966.

2.Since the Agreement has now been ratified by both the Government of India and the Government of the Republic of Indonesia, the Ministry of Foreign Trade and Supply confirm that the period of validity of the Agreement would run for two years from the 26th October, 1968 upto the, 29th October, 1970.

3.The Ministry of Foreign Trade and Supply avails itself of this opportunity to renew to the Embassy of the Republic of Indonesia the assurances of the highest consideration.

SEAL
New Delhi, March 24, 1969.