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TRADE AND PAYMENTS AGREEMENT BETWEEN [1968] INTSer 25

TRADE AND PAYMENTS AGREEMENT BETWEEN THE GOVERNMENT
OF INDIA AND THE GOVERNMENT OF THE POLISH PEOPLE’S REPUBLIC

Warsaw, 31 October, 1968

The Government of India and the Government of Polish People’s Republic,

ANIMATED by the desire to develop economic and trade relations between the two countries on a balanced basis, and to increase the volume of trade between them to as high a level as possible,

HAVE agreed upon the following :

Article I

(1) Both Governments will in every possible way develop and strengthen the 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 the imports will be equal to the total value of the exports effected by either country. For this purpose and for periodic reviews, imports, whether on deferred payment terms or on cash basis relating to the contracts concluded and to be concluded on the basis of this and either Indo-Polish Trade Agreements will be taken into account as and when payments are made. Likewise repayments of credits under the agreements on Economic Cooperation and payment of interest thereon will also be similarly taken into account.

Article II

1. (a) For the goods imported and exported from one country to the other, both Governments pledge themselves to grant maximum facilities allowed by their respective laws, rules and regulations. The said goods will enjoy full most favoured nation treatment in respect of customs duties and charges of any kind imposed on imports or exports or in respect of the methods of levying such duties and charges and with respect to rules, formalities and charges in connection with customs clearing operation.

(b) Further, the two countries will grant each other in respect of the insurance of import and export licences treatment no less favourable than that granted to any other country.

(c) Any advantage, favour, privilege or immunity granted by either Government to any product originating in the territory of a third country or destined for its territory, shall be granted immediately and unconditionally to the like product originating in either country or destined to be imported into its territory.

(d) the above provisions may be subject to further review in the event of either Government being desirous of doing so as provided for in Article X.

2. The provisions of the above clauses shall not, however, apply to the grant or continuance of any :

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

(b) Preferences or advantages accorded by India to any third country and existing on the 3rd April 1956, or in replacement of such preferences or advances that existed prior to the 15th August, 1947.

Article III

The export of goods from India the the Polish People’s Republic and from the Polish People’s Republic to India 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 calendar 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.

Article IV

The import and export of the goods stipulated in Article III will be carried out in accordance with the export, import and foreign exchange regulations in force in either country and on the basis of contracts to be concluded between the Indian physical and juridical parties including Indian State-owned Organisations on the one side and the Polish Foreign Trade Enterprise on the other.

Article V

Both Governments will render all possible assistance for the export and import of the goods mentioned as indicated in Article III.

Article VI

All payments of a commercial and non-commercial nature between the Republic of India and the Polish People’s Republic will be effected in non-convertible Indian rupees.

For the purpose, the Bank Handlowy W Warszawie SA will maintain a Central Account with the Reserve Bank of India and one or more accounts with one or more commercial banks in India, authorised to deal in foreign exchange.

1. (a) The Central Account, maintained by the Bank Handlowy W Warszawie SA with the Reserve Bank of India, will be used for depositing the rupee holdings of the Bank Handlowy W Warszawie SA and for the replenishing the accounts of the Bank Handlowy W Warszawie SA with the authorised Indian Commercial Banks and for operating the technical credit.

(b) The accounts maintained by the Bank Handlowy W Warszawie SA with the Indian Commercial banks will be used for carrying out all other operations connected with the payments of a commercial and non-commercial nature, as mentioned above.

2. (a) The Central Account will be replenished by transfer of funds in Indian rupees from the accounts maintained by the Bank Handlowy W Warszawie SA with the Indian Commercial Banks and by receipts under the technical credit.

(b) The accounts with the commercial banks will be replenished by transfers of funds from other similar accounts and from the Central Account and from the Central Account and from the credit repayment accounts, 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 Polish Peoples’ Republic by the physical and juridical persons residing in India, by crediting the amount of such payments to the accounts of the Bank Handlowy W Warszawie SA with the Indian Commercial Banks.

Likewise the payments which are to be effected by the physical and juridical persons residing in the Polish People’s Republic to the physical and juridical persons residing in India in accordance with the Polish Foreign Exchange Control Laws and Regulations, will be effected by debiting the accounts maintained by the Bank Handlowy W Warszawie SA with the Indian Commercial Banks, under the instructions of the Bank Handlowy W Warszawie SA.

Article VII

The reciprocal commitments expressed in another currency than the Indian rupee but paid in Indian rupees will be converted in Indian rupees at the official parity of that currency, in respect of the Indian rupee, in force on the day of the payment.

Article VIII

Any balances in the Rupee Accounts of the Bank Handlowy W Warszawie SA of any debt of the Bank Handlowy W Warszawie SA in connection with the grant of technical credit will, upon expiry of this Agreement, be used during the ensuing 12 months for the purchase of such Indian or Polish goods as the case may be. Payments arising from the contracts concluded before the expiry of this Agreement or falling due after the expiry of this Agreement shall, notwithstanding the expiry of this Agreement, be effected in accordance with Article VI of this Agreement and be for the purchase of Indian or Polish goods, as the case may be, during the ensuring 12 months from each payment.

In both cases, after the expiry of the said twelve-month period, any balances outstanding will be settled in such a way as may be agreed upon between the two Governments.

Article IX

The two Governments agree to establish and promote close cooperation in the field of science and technology between the two countries in conformity with the rules and regulations in force in their respective countries. In particular, the two Governments resolve to encourage fruitful cooperation between Indian and Polish Industrial Organisations by way of sharing of technical skill, mutual exchange of technical documentation, sponsoring of technical missions, providing technicians and training facilities and supply of equipment and machinery.

Article X

In order to facilitate the implementation of this Agreement, the two Governments agree to consult each other 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 Government at a place and time to be mutually agreed upon the meeting being held on a date within 45 days of the request.

Article XI

The present Agreement will come into force on 1st January, 1969 and shall remain valid for a period of 5 years, December 31, 1973.

DONE in Warszawa, on the 31st of October, 1968 in two originals in English Language, both texts being equally authentic.

Sd/- Sd/-
MOHD. SAFI QURESHI T OLECHOWSKI

On behalf of the On behalf of the Government of the
Government of India Polish People’s Republic

SCHEDULE ‘A’

GOODS OF GOODS AVAILABLE FOR EXPORT FROM POLAND TO INDIA

I. Machineries
1. Excavators, cranes and other construction and building machinery
2. Mining and drilling machinery and equipment
3. Machinery and equipment for foundries
4. Textile Machinery
5. Welding Machinery and equipment
6. Metal and wood working machine tools
7. Pneumatic hammers and presses
8. Tools
9. Machinery and equipment for food industry
10. Machinery and equipment for plastics and chemical industry
11. Machinery and equipment for production of building materials
12. Ore dressing machinery
13. Marine diesel engines
14. Overhead travelling and mobile cranes
15. Tractors, agricultural machines and implements with spare parts
16. Dry cargo ships and tankers
17. Fishing boats, dredgers, tug boats and river crafts
18. Ship’s engines and ship’s equipment
19. Power plants and power station equipment, components and accessories thereof/e.g.
generators, alternators, transformers, switch gears, control gears, etc
20. Electrical instruments, equipment, apparatus and appliances
21. Machinery for flour mills
22. Aircrafts and other aviation equipment
23. Generator welding sets
24. Equipment for rolling mills
25. Parts and components for motor cycles and scooters
26. Glass making machinery
27. Electric motors - frameproof, explosion proof and other special types
28. Special types of pumps, such as chemical pumps, oil pumps and geared type pumps
30. Various machines and equipment for industry.

II. Complete Plants and Equipment for Industry
1. Steel structural plants
2. Drop forged tools factories
3. Machine tools factories
4. Coal mining equipment
5. Factories for steel cranes and equipment for building industry
6. Refractories Bricks plant
7. Non-ferrous ore mining machineries, smelteries and refineries
8. Rolling stock repairing workshops
9. Cellular, concrete factories
10. Steel and cast iron metal foundries
11. Equipment for steel industry
12. Complete equipment for chemical factories
13. Power stations, boiler and boiler equipment
14. Complete plants for tractors
15. Complete Plants and equipment for zinc industry
16. Appliances and equipment for small scale industries
17. Various complete plants and equipments.

III. Instruments and Apparatus
1. Laboratory and optical instruments and apparatus
2. Controlling and measuring instruments
3. Medical, dental and veterinary apparatus and instruments
4. Electrical and electronic measuring instruments and components
5. Electric furnaces
6. Switchboard measuring instruments
7. Various instruments and apparatus
8. Automatic controls for refrigeration and chemical plants
9. Electronic digital computers
10. Industrial gasmeters
11. Industrial valves-high pressure acid proof valves for chemical industry

IV. Iron Coloured Metals Raw and Manufactured
1. Rolled steel products
2. Tool, alloy and special steel
3. Zinc Electrolytic and spelter
4. Ball, roller and taper bearings, railway bearings
5. High pressure gas cylinders

V. Products for Chemical Industry
1. Chemical fertilizers
2. Mining explosives, detonators and detonating fuses
3. Dye intermediates
4. Pharmaceuticals, including antibiotics
5. Vaccines and sera
6. Drugs and medicines in bulk
7. Photo-materials and photo-chemicals
8. Various organic and inorganic chemicals
9. Carbon black
10. Tyres
11. Synthetic rubber
12. Laboratory
13. Aniline oil
14. Technical urea
15. Sodium nitrate
16. Phtalic anhydride
17. Phenol
18. Caprolactam and polycaprolactam
19. Ammonium nitrate
20. Sulphur
21. Dinitro chlorobenzene
22. Dimethylaniline
23. Aluminium fluoride
24. Lubricants
25. Insecticides and pesticides
26. Plasticisers
27. Aluminium Hydrate

VI. Miscellaneous Goods
1. Newsprint
2. Writing, printing, kraft and parchment and other industrial papers
3. Optical glass flasks
4. Refractory cement
5. Radio miniature components
6. Books and music notes
7. Cingmatrographic films exposed
8. Postage stamps
9. Seeds
10. Artificial silk yarn
11. H T Lightning arrestors
12. Electrodes

SCHEDULE “B”

LIST OF GOODS AVAILABLE FOR EXPORT FROM INDIA TO POLAND

I. Food
1. Fruits, dried, processed and preserved and fruit juice and squashes
2. Shark liver oil
3. Cashew kernels
4. Pepper
5. Other spices
6. Oil cakes/de-oiled
7. Tinned fish and prawns
8. Groundnuts H.P.S.
9. Animal casings
10. Fish meal
11. Sesame seeds/edible
11. Vegetable oils, linseed oil, groundnut oil

II. Beverages and Tobacco
1. Tea
2. Coffee
3. Tobacco
4. Instant Tea
5. Instant coffee

III. Crude materials
1. Shellac/all kinds
2. Hides and skins, semi-processed and tanned
3. Essential oils
4. Coir, yarn and manufactures
5. Palmyra fibre
6. Coir and sisal ropes for ships
7. Tanning agents like myrobolan an extract
8. Gum tragacanth
9. Cotton waste

IV. Mineral and Allied Materials
1. Mica and Micanite
2. Iron ore
3. mANGANESE ORE
4. Dead burt maganesite
5. Ferromanganese
6. Kyanite, sillimanite, steatile, ilemenite

V. Vegetable Oils
Castrol oil, cotton seed oil, linseed oil etc.

VI. Complete Plants and Equipment for Industry
1. Tea processing machinery all sorts
2. Small scale paper making plants
3. Weighing machines, weigh bridges
4. Solvent extraction plants
5. Gcold storage plants
6. Water coolers
7. Water treatment and purification plants
8. Super phosphate plants
9. Industrial boilers
10. Industrial cooling towers
11. Construction machinery such as stone crushers, concrete mixers, concrete vibrators
12. Dairy plants
13. Asbestos cement sheets and pipe making plants
14. Electric overhead and travelling crane

VII. Engineering Products including Rolled Steel items
1. Rolled steel products including steel pipes, tubes and fittings thereof
2. Steel castings and forgings
3. Ferrous metal manaufactures including fabricated steel structurals, deformed steel,
re-inforced bars, builders, fasteners, needles all sorts, etc
4. Air compressors
5. Printing and book binding machinery
6. Refrigeration machinery
7. Wire, nail and panel pin making machinery
8. Microscopes
9. Weighing machines and weigh bridges
10. Centrifugal and other types of pumps
11. Duplicating machines
12. Diamond tools
(a) Tungsten carbide tips
(b) Tungsten carbide tipped tools
13. Hand tools and small tools
14. Forged hand tools
15. Bolts, nuts, screws and other fasteners
16. Hydraulic variable speed gears
17. Mathematical, scientific and survey instruments
18. Resistance welding equipment like spot and butt welders
19. Foundry moulding machines
20. Arc electric furnaces
21. Machine tools including radical drills, planning machines, shapping machines, slotting
machines, and saw machines.
22. Steel files, backsaw and bandsaw blades
23. Textile machineries and accessories
24. Sewing machines needles and knitting machine needles
25. Hand knitting machines
26. Railway track maintenance machines
27. Galvanised screwed and socketed steel pipes and tubes upto 75mm, bore and electrical
resistanced welder tubes upto 50mm bore
28. Grinding wheels and abrasives
29. Tungsten carbide powder and products
30. High speed vertical diesel engines, water cooled and aircooled upto 40 H.P.
31. Electric motors squirrel cage or slopring upto 75 H.P. topicalised.
32. Industrial shunters
33. Industrial process and flow control instruments
34. Exhaust fans and blowers
35. Jigs and fixtures
36. Automobile and engine components like piston rings, assemblies, rigs, connecting
rods, crankshafts, filters and filter elements, electrical parts, axle tubes, radiators,
Engine valves, Brake assemblies, clutches,fuel injection equipment, Bimetal bearings,
Alternators, self starters, Screen wipers, shock absorbers, rubber parts, Headlights,
Auto leaf springs, etc
37. Grey iron, malleable iron and steel and other casting and forgings
38. Electric wires and cables
39. Electric switchgear and control gear
40. Train lighting equipment
41. Fabricated steel structures like towers etc
42. Transport equipment, components and accessories thereof
43. Bright bars
44. Railway wagons
45. Wire ropes
46. Diesel Trucks and other commercial vehicles
47. Excavators
48. Fluorescent Tubes
49. Miniature bulbs
50. Vapour lamps
51. Refrigerators
52. Radio receivers
53. Paper insulated cables
54. Circuit breakers
55. Lightning arrestors
56. X-ray equipment
57. Distribution and Power transformers
58. Duplicators
59. Typewriters
60. Computers
61. Phosphor Bronz wire cloth
62. Expanded metal
63. Ball and roller bearings
64. Industrial roller chains.

VIII. Other manufactured Goods
1. Cotton textiles
2. Jute goods including jute convas and jute tarpauline
3. Knitted wears
4. Rubber tyres and tubes
5. Ready made garments and hosiery products
6. Linoleum and other synthetic Leather material
7. Leather footwear and leather manufactures
8. Sports goods
9. Paints, varnishes, enamels and lacquers
10. Plywood and walnut veneers
11. Spectacle frames
12. Plastic manufactures
13. P V C floor tiles
14. Synthetic resin such as alkyd, phenolic, Meleic, Malamine formaldehyde and PVC
emulsion
15. Rayon tyre cord
16. Wire and figured glass
17. Bristles
18. Collapsible tubes
19. Graphite electrodes
20. Enamel ware.

IX. Handicrafts
1. Indian handicrafts and cottage industry products e.g. hand-loom/cotton and silk, artistic silver ware, copper and brass ware, bidri products, wood carvings, etc.

X. Chemicals, Pharmaceuticals and Allied Products
A. Organic and Inorganic Chemicals
1. Ethylene glycol
2. Ethyl acetate
3 Ethylene oxide
4. Styrene
5. Formaldehyde
6. Chronic acid
7. Trichor ethylene
8. Sodium bichromates
9. Sodium perborate
10. Barium carbonate
11. Mercuric chloride
12. Ammonia chloride
13. Magnesium sulphate
14. Calcium chloride
15. Synthetic dyes - Azo dyes, Napthols, vat dyes, sulphur dyes, Rapidogens
16. Optical whitening agents
17. Carboxy methyl cellulose
18. Synthetic detergents
19. Toiletries and cosmetics
20. Chrome pigments
21. Rubber chemicals
22. Cigarette paper
23. Carbon paper

B. Pharmaceuticals/Semi Products thereof
1. Quinine
2. Emetine hydrochloride
3. Cortisone and allied compounds
4. Strychnine nitrate
5. Camaquin amodiaquin
6. Sex hormones
7. Vitamins A and K

C. Others
1. Polythlene
2. Medicinal herbs

XI. Miscellaneous
1. Asbestos yarn, asbestos jointings and other asbestos cement products
2. Stationery articles
3. Surgical instruments and hospital appliances
4. Books and periodicals
5. Films cinematographic and exposed
6. Tapioca manioc

------------------

PROTOCOL

PROTOCOL TO THE TRADE AND PAYMENTS AGREEMENT BETWEEN THE
GOVERNMENT OF INDIA AND THE GOVERNMENT OF
POLISH PEOPLE’S REPUBLIC
NEW DELHI, 31 OCTOBER 1968

With reference to the provisions of the Trade and Payments Agreement signed on 31th October 1968 in Warsaw, between the Government of India and the Government of the Polish People’s Republic and the talks held between the Government Trade Delegations of the two countries in New Delhi from 4th to 18th December, 1969, it has been agreed that the trade turnover between the two countries during 1970 would be of the order of Rs.817 million.

Schedules A and B attached to the Long-Term Trade and Payments Agreement would remain valid for 1970 as well.

DONE at New Delhi on the 18th December 1969 in two original copies in the English langauge, both being equally authentic.

On behalf of the Government On behalf of the Government of
India Polish People’s Republic

Sd/- Sd/-
CHOWDHARY RAM SEWAK R STRZELECKI

PROTOCOL TO THE TRADE AND PAYMENTS AGREEMENT BETWEEN THE GOVERNMENT OF
INDIA AND THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF BULGARIA
SOFIA, 10 OCTOBER 1970

With reference to Article 5 of the Trade and Payments Agreement signed on 18th October 1968 in Sofia between the Government of India and the Government of the People’s Republic of Bulgaria and the talks between between the Trade Delegations of the two countries in Sofia from 7th to 10th October 1970, it has been agreed that the trade turnover between the two countries during 1971 would be of the order of Rs.646 million.

Schedules A and B attached to the Long Term Trade and payments Agreement would remain valid for 1971 as well.

Both the Governments have noted with satisfaction the study and rapid tempo of growth of mutual trade particularly over the past three years. It has been agreed that in order to bring about further expansion and diversification in the two-way trade exchanges, possibilities of commercial, industrial and technical cooperation need to be fully explored by identifying spheres where bilateral collaboration can be usefully undertaken. For this purpose Working Groups of experts on both sides will meet periodically.

DONE at Sofia on 10th October 1970 in two original texts in the English language, both being equally authentic.

Sd/- Sd/-
CHOWDHARY RAM SEWAK O TIHOMIROV
On behalf of the Government On behalf of the Government of the
India Polish People’s Republic


India Bilateral

Ministry of External Affairs, India


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