Indian Treaty Series

Bucharest, 24 March 1971

The Government of INDIA
AND

The Government of the SOCIALIST REPUBLIC OF ROMANIA,

NOTING with satisfaction the successful development of economic and trade relations, and

DESIROUS of further increase and diversification in trade and of further expansion and strengthening of economic cooperation between the two countries;
HAVE agreed as follow :

Article I

Both Governments will, in every possible way, develop and strengthen the trade and economic relations between the two countries on the principles of equality and mutual benefit. 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 relations.

Article II

During the period of validity of this Agreement, the total value of imports will be equal to the total value of exports effected by either country. For this purpose 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 earlier Trade Agreement as well as all payments of a non-commercial nature, will be taken into account as and when payments are made. Likewise, repayments of credits under the Agreement on Economic and Technical Cooperation, and payments of interest thereon will also be similarly taken into consideration.

Article III

(i) Both Government will accord upon importation and exportation of goods from
one country to the other maximum facilities allowed by their respective laws, rules and regulations.

(ii) Both Government will accord to each other most-favoured nation treatment in
respect of customs duties and charges of any king imposed on imports or exports or in connection herewith of the methods of levying such duties and charges and in respect of rules, formalities and charges in connection with customs clearing operations and with respect to the application of internal taxes or other charges of any king imposed on or in connection with imported goods.

(iii) Both Government will accord to each other in respect of the issuance of import
And export licenses or permission where such licenses/permission are prescribed under their regulations, treatment no less favorable than that granted to any other country.

Article IV

Any advantage, favour, privilege or immunity granted by either of the tow Governments to the import or export of any product originating in the territory of a third country or destined of its territory, shall be accorded immediately and unconditionally to the like product originating in the territory of wither of the tow countries or destined to be imported into its territory.

Article V

The provisions of Article III and IV shall not, however, apply to the grant or continuance of any

(a) advantages which are or will be accorded by wither Governments to
Contiguous countries for the purpose of facilitating frontier trade;

(b) advantages, favours, privileges or immunities as well as preferences
accorded, by either of the Government to any their country and which are in force on the date of coming into effect of this Agreement or in replacement thereof;

(c) advantages, granted by virtue of customs union and of association for
economic cooperation of which either Government is already or may become a member, and which are in pursuance of trade development and liberalization programs.

Article VI

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 regulation of such other country which are generally applicable to all foreigners alike.

Article VII

The export of goods from India to the Socialist Republics 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 and integral part of this Agreement. The Schedules can be extended or altered from time to time as may be agreed upon between both Governments.

Article VIII

The import and export of goods stipulated in Article VII will be carried our 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 organization on the one side and the Romanian enterprises and organizations duly authorized under the Romanian laws to carry on foreign trade activities as juridical persons on the other.
Article IX

The provisions of the present Agreement do no affect 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 Schedule “A” and “B”.

Article X

The goods so exported form 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 exported to any other Country.

Article XI

1. All payments of a commercial and non-commercial nature between physical and juridical persons residing in India an physical and juridical persons residing in 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 this 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
balances and for replenishing the account(s) with the Commercial Bank(s) and for operating transactions relating to technical credits.

(c) The accounts with the Commercial Bank(s) in India will be used
for carrying out all operations of commercial and non-commercial nature.

3. (a) The Central Account will be replenished by transfers of funds
From the Accounts (s) with Commercial Bank(s) and by receipts on
account of technical credit.

(b) The Accounts(s) with Commercial Bank (s) will be replenished
by transfers of funds from other such account(s) and from the Central
Account.

4. (a) Payment 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 the Physical and Juridical persons residing in India, by
crediting the amounts of such payment to the said accounts(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 of 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 ensuring 12 months for the purchase of Indian or Romanian goods as the case may be. After the expiry of this period of 12 months, any balances outstanding will be settled in such other ways as may be agreed upon between both Government.

7. Payments arising from the contracts concluded during the validity and falling due after the expiry of this Agreement shall notwithstanding the expiry of this Agreement be effected a non-convertible Indian Rupees which will be utilized for the case this amount in rupees remains unutilized, after the expiry of 12 months form the date of its accrual, and the Long tern Trade and Payments Agreement is not renewed it will be settled in such other ways as may be agreed upon between both government.

Article XII

1. Both governments will render all possible assistance for the equipment 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 cargoes therein, will, while entering, staying in or leaving ports of other country enjoy the most-favoured facilities ranted by their laws, rules and Regulations to ships under Third Country’s Flags. This principle shall not, apply to ships engaged in coastal navigation.

Article XIII

Both Governments shall consult each other at the request of other Government as and when necessary in regard to the implementation of this Agreement.

Article XIV

In order to expand and diversify the mutual trade, both Governments area to facilitate in increasing contracts 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 operation in studying each other’s requirements and consumer references.

Article XV

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 creating 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.

Article XVI

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 programs in third countries in the basis of joint cooperation.

With a view to furthering their common desire to cultivate markets in third countries, both Governments will also consider ports of engineering goods, equipment and components from each other, for being incorporated in the exports of complete plants equipment and projects to third countries.

Article XVII

The present Agreement is in suppression of the Long-Term Trade and Payments Agreement signed between the Government of India and the Government of Socialist Republic of Romania in New Delhi on the 4th, 1968 and valid up to 31st December 1970. The present Long-Term Trade and Payments Agreement shall come into force from Ist January 1971 with retrospective effect and shall be valid till the 31st December, 1975.

This Agreement may be extended or renewed by negotiations between the two Governments.

DONE in Bucharest, on 24th March, 1971, in two originals in the English Language both texts being equally authentic.

For the Government For the Government of
Of India, the Socialist Republic Of Romania,

Sd /- Sd /-

S. THAN CORNEL BURTICA
Ambassador of India Minister of Foreign Trade
in Romania

SCHEDULE “A”

LIST OF GOODS AVAILABLE FOR EXPORT FROM 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
• Siderurgical industry
• Oil field drilling equipment, part of drilling equipment, accessories and tools including casings (seamless pipes)
• Oil field production
• Water drilling
• Plants for the chemical and petro-chemical industry; calcinated soda and caustic soda plants, sulphuric acid plants based on pyrite, carbon-black plant, 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