New Delhi, 4 December 1974The Government of INDIA
AND
The Government of the CZECHOSLOVAK Socialist Republic,
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 follows :
Article 1
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 decisions 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 2
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 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
consideration.
Article 3
Both countries, being members of the General Agreement on Tariffs and Trade, shall accord each other the most-favoured-nation treatment
in their trade relations in accordance with the provisions of the General Agreement on Tariffs and Trade and the decisions of the
CONTRACTING PARTIES of the General Agreement on Tariffs and Trade.
Article 4
The export of goods from India to the Czechoslovak Socialist Republic and from the Czechoslovak Socialist Republic to India during
the period of validity of this Agreement will be carried out on the basis of the attached schedules “A” (List of goods available
for export farm Czechoslovakia to India) and “B” (List of goods available for export from India to Czechoslovakia) which constitute
an integral part of the present Agreement. The Schedules can be extended or altered as may be agreed upon between both Governments.
Article 5
The import and export of goods stipulated in Article 4 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 persons
including Indian state-owned organizations on the one side and the Czechoslovak organization duly authorised under the Czechoslovak
laws to carry on foreign trade activities as juridical persons on the other.
- Article 6
The goods so exported from India to the Czechoslovak Socialist Republic and from the Czechoslovak Socialist Republic to India are
meant far use in the Czechoslovak Socialist Republic and India respectively and shall not be re-exported to any other country.
Article 7
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 Czechoslovak Socialist Republic as well as any other payments between the two countries on which
agreement will be reached between the Reserve Bank of India, Bombay and Ceskoslovenska obchodni banks A.S. Praha (hereinafter referred
to as the Commercial Bank of Czechoslovakia Ltd.) will be effected in non-convertible Indian Rupees.
2. For the purpose of paragraph 1 of this Article :
(a) The Commercial Bank of Czechoslovakia Ltd., acting as an agent of the Government of the Czechoslovak Socialist Republic will continue
to maintain a Central Account with; the Reserve Bank of India and will be entitled to establish and maintain one or more account(s)
with one or more commercial bank(s) in India authorised to deal in foreign exchange.
(b) The Central Account will be used for depositing rupee balances and for replenishing the account(s) with commercial bank(s) while
the account(s) with the commercial bank(s) will be used for all other operations.
3. (a) The Central Account will be replenished by transfer of funds; from the account(s) with commercial bank(s) and by receipts on
account of technical credit.
(b) The account(s) with commercial bank(s) will be replenished by transfer of funds from other such accounts and from the Central
Accounts.
4. (a) Payments permitted under the Czechoslovak foreign; exchange regulations to be made by the residents of the Czechoslovak Socialist
Republic to the residents of India will be effected by debiting the amounts of such payments to the said account(s) with commercial
bank(s) in India.
(b) Payments permitted under the Indian Exchange Control Laws to be made by the residents of India to the residents of the Czechoslovak
Socialist Republic will be effected by crediting the amounts of such payments to the said account(s) with commercial bank(s) in India.
5. The details in regard to the procedure for the operation of the Central Account will mutually be agreed upon between the Commercial
Bank of Czechoslovakia Ltd., and the Reserve Bank of India.
6. Any balances in the Rupee accounts of the Commercial Bank of Czechoslovakia Ltd., referred to in this Article or any debt of the
Commercial Bank of Czechoslovakia Ltd., in connection with the grant of technical credit will, upon expiry of the present
Agreement, be used during the ensuing 12 months for the purchase of Indian or Czechoslovak goods as the case may be. After the expiry
of this period of 12 months, any balances outstanding will be settled in such a way as may be agreed upon between both Governments.
7. Payments arising from contracts concluded during the validity and falling due after the expiry of this Agreement shall, notwithstanding
the expiry of this Agreement, be effected in non- convertible Indian rupees which will be utilised for the purchase of Indian or
Czechoslovak goods as the case may be.
Article 8
1. Both Governments agree that, in exercise of their right of shippers preference, they shall, to the maximum extent
possible, utilise the vessels owned or chartered by shipping organisations of the two countries concerned for shipping cargoes imported
or exported under this Agreement, on the basis of world competitive freight rates and conditions.
2. Merchant ships of either country with or without cargoes 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 countries flags. This
principle shall not, however, apply to ships engaged in coastal navigations.
Article 9
In order to expand and diversify the mutual trade, both Governments agree to facilitate increasing contacts between the Indian and
Czechoslovak trading as well as manufacturing and actual user organizations through exchange of visits and information and promoting
joint cooperation in studying each other’s requirements and consumer preferences.
Article 10
Both Governments shall consult each other at the request of either Government as and when necessary in respect of matters connected
with the implementation of this Agreement.
The present Agreement will come into force on lst January, 1975 and will remain valid for a period of five years.
-
DONE and signed in New Delhi on 4th December, 1974, in two originals in the English language, both texts being equally authentic.
Sd/-
Prof. D.P. CHATTOPADHYAYA
Minister of Commerce
On behalf of the
Government of India
Sd/-
ENG. ANDREJ BARCAK
Minister of Foreign Trade
On behalf of the Government of
the Czechoslovak Socialist Republic
SCHEDULE “A”
LIST OF GOODS AVAILABLE FOR EXPORT FROM CZECHOSLOVAKIA TO INDIA
I. Complete Plants and Equipment for Industry
1. Coal and ore industry, foundry, rolling mills, equipment for chemical industry, cane sugar mills, distilleries, cooling plants,
cement works, ceramic works, equipment for manufacture of diesel engines, machine tools, tractors, motor-cycles, bicycles, equipment
for light and heavy engineering industries, etc.
2. Power plants.
3.. Wood working machinery.
4. Mining equipment and oil well equipment.
5. Brick factories.
6. Crushing and sorting sets.
7.Flour mill equipment.
8.Dairy equipment, bottling equipment and other foodstuff machinery.
II. Machinery and Engineering Products
1. Diesel engines, diesel electric generating sets and spare parts.
2. Electric motors, generators and dynamos.
3. Charging sets.
4. Electric resistance furnaces.
5. Arc welding machines and resistance welding machines.
6. Transformers.
7. H.T. oil and pneumatic circuit breakers.
8. Switch-gears.
9. Lightning arrestors.
10. Excavators.
11. Motor graders.
12. Mortar and concrete mixers, vibrators.
13. Road rollers.
14. Road transport, building and road making machines.
15. Freight and passenger ropeways.
16. Cranes, conveyors and transporters.
17. Lifting battery trucks.
18. Pulley blocks.
19. Mechanical shovels.
20. All kinds of pumps, pumping and filtration stations.
21. H.P. valves.
22. Compressors and blowers.
23. Electric and diesel electric locomotives.
24. Machine tools, accessories, spare parts and components.
25. Power hammers and mechanical presses.
26. Die-casting machines.
27. Pneumatic tools and equipment.
28. Precision instruments gauges.
29. Electric measuring devices.
30. Laboratory testing equipment.
31. Single and three-phase electricity meters and components.
32. Electric and mechanical and electronic measuring instruments and components. i.
33. Components of water meters.
34. Complete installations for measurement and control in thermal engineering.
35. Broadcasting studio equipment.
36. Radio components and valves.
37. Bulbs for industrial purposes and fluorescent tubes.
38. Cigarette making machines.
39. Tobacco cutting, weighing and packing machines.
40. Timepiece components and spare parts.
41. Automatic telephone exchanges.
42. Broadcast and TV studios.
43. X-ray equipment. .
44. Dental and surgical equipment.
45. Designs and equipment for complete hospitals.
46. Statistical and calculating machines.
47. Typewriters and components
48. Printing polygraphic machinery.
49. Photo and cine equipment and components.
50. Ball and roller bearings.
5l. Textile machinery and components.
52. Shoe-making and leather finishing machinery, including rubber shoe machinery.
53. Spare parts for passenger cars and trucks.
54. Dumpers and mobile cranes.
55. Garage/service equipment and tools.
56. Industrial chains.
57. Electrical accessories for motor vehicles.
58. Components for fuel injection equipment.
59. Agricultural tractors, spare parts and components.
60. Tractor trailers and implements.. Aircrafts.
62. Airport lighting equipment.
63. Utility and special cars.
64. Trucks buses and trolley buses.
65. Motorcycles, scooters spare parts and components.
III. Steel and Steel Products
1. Steel structures of every description.
2. Steel pilings.
3. Iron and steel products including plates, wires, sheets etc.
4. Tool, alloy and especial steel.
5. Steel forgings, castings and finished products. 6. Seamless steel tubes for oil industry.
IV. Other Manufactured Goods
1. Rubber conveyor belting with textile insert or igelite belting.
2. Rubber textile hoses of all types.
3. Reclaimed rubber.
4. Driving belts made of leather, igelite or rubber and canvas.
5. Laundry equipment.
6. Electrical and gas water heaters.
7. Fire extinguishers and fire alarm equipment.
8. Portable electric hand tools.
9. Steel gas cylinders.
10. Asbestos cement pressure pipes.
11. Insulating materials (glass and glasswool).
12. Insulators for high and low tension.
13. Laboratory porcelain.
14. Abrasives.
15. Ceramic cutting tools for metal working.,
16. Refractories.
17. Technical and laboratory glass.
18. Pressed glass and jablonec crystal of all kinds.
I9. Industrial felts and technical cloth.
20. Vacuum cleaners.
V. Chemicals. Pharmaceuticals and Allied Products
1. Drugs, pharmaceuticals, chemicals and products.
2. Sera and vaccines.
3. Dye intermediates.
4. Organic chemicals.
6. Nitrocellulose.
6. Pesticides.
7. Inorganic chemicals including sodium formaldehyde.
8. Ultramarine blue.
9. Laboratory chemicals.
10. Industrial explosives.
11. Kaolin and ball clay.
12. Dyestuffs.
13. Pyrotechnical materials.
VI. Miscellaneous
1. Books. periodicals and stamps.
2. Photographic paper and photo chemicals.
3. Hops and malt.
4. Heal pins and shoe tacks.
5. Slide fasteners.
6. Rubber goods
7. Drawing instruments.
8. Films cinematographic, exposed.
9. Paper of all kinds including newsprint.
10. Nuclennic and radiometric instruments.
11. Radio isotopes.
12. Sports and hunting fire-arms and ammunition.
13. Tyres and tubes.
14. Glazed wall tiles.
15. Sanitary ceramics.
16. China and earthenware.
17. Plate glass.
18. Chandeliers and illuminating glass of all kinds.
19. Plushes.
20. Silk and rayon fabrics.
21. Semi-finished Gurkha hats.
22. Stationery and office equipment.
23. Jewellery including immitation pearls and immitation stones.
24. Musical instruments.
SCHEDULE “B”
LIST OF GOODS AVAILABLE FOR EXPORT FROM INDIA TO CZECHOSLOVAKIA
I. Food
1.Fruits, fresh, dried, processed and preserved and fruit juice and squashes.
2.Cashew kernels.
3.Walnuts and walnut kernel.
4.Pepper.
5.Other spices.
6.Oil cakes (de-oiled) - groundnut, rice bran and other oil seeds.
7..Animal feed compounds.
8.Tinned fish and prawns.
8. Shark liver oil.
10. Groundnut H.P.S.
11. Animal castings.
12. Fish meal.
13. Sesame seeds (edible).
II. Beverages and Tobacco
1. Tea.
2. Coffee.
3. Tobacco.
4. Instant tea.
5. Instant coffee.
I11. Crude Materials, Inedible
1. Shellac/all kinds and shellac based products.
2. Hides and skins. raw, semi-processed and tanned.
3. Finished leather.
4. Essential oils.
5. Coir yarn. coir manufactures.
6. Palmyra fibre.
7. Coir and sisal ropes for ships.
8. Cotton waste.
9. Cotton linters.
10. Tanning agents like myrabolan extract.
11. Gum Tragacanth.
IV Mineral and Allied Materials
1. Mica and mica based products.
2. Iron ore.
2. Manganese ore.
4. Kyanite.
5. Sillimanite.
6. Steatite.
7. Limenite.
8. Dead burnt magnesite.
9. Ferro manganese.
V. Vegetable oils
1. Castor oil.
2. Cotton seeds oil.
3. Linseed oil etc.
VI. Complete Plants and Equipment for Industry
1. Sugar making plants.
3. Tea processing machinery, all sorts.
3. Small scale paper making plants.
4. Weighing machines, weigh bridges.
5. Solvent extraction plants.
6. Cement making plants.
7. Cold storage plants
8. Water coolers.
9. Sulphuric acid plants.
10. Water treatment and purification plants.
11. Super phosphate plants.
12. Industrial and package boilers.
13. Industrial cooling towers.
14. Construction machinery such as stone crushers, concrete mixers,. concrete vibrators. 15. Dairy plants.
16. Asbestos cement sheets and pipe making plants.
17. Electric overhead and travelling cranes.
18. Thermoplastic injection moulding machines.
.
VII. Engineering Products including Rolled Steel Items
1. Rolled steel products including steel pipes, tubes and fittings thereof
2. Steel castings and forgings.
3. Pipe and pipe fittings.
4. Ferrous metal manufactures including fabricated steel structurals, deformed steel reinforced bars, builders’ fasteners, needles
all sorts, etc.
5. Bathroom fittings of all types and descriptions.
6. Air compressors.
7, Printing and book binding machinery.
8. Refrigeration machinery.
9. Wire nail and panel pin making machinery.
10. Microscopes.
11. Weighing machines and weigh bridges.
12. Industrial sewing machines:
13. Centrifugal and other types of pumps.
14. Hydraulic presses.
15. Diamond tools.
16. Tungsten carbide tips.
17. Tungsten carbide tipped tools.
18. Hand tools and small tools.
19. Small cutting tools.
20. Bolt, nuts, screws and other fasteners.
21. Hydraulic variable speed gears.
22. Mathematical, scientific and survey instruments.
23. Resistance welding equipment like spot and butt welders.
24. Foundry moulding machines.
25. Arc electric furnaces.
26. Machine tools including radial drills, planing machines, shaping machines, slotting machines, band saw machines.
27. Steel files, hacksaw and band saw blades.
28. Textile machineries and accessories.
29. Sewing machine needles and knitting machines needles.
30. Hand knitting machines.
31. Galvanised screwed and socketted steel pipes and tubes upto 76 mm bore and electrical resistance welded tubes upto 50 mm, bore.
32 . Grinding wheels and abrasives. Tungsten carbide powder and products.
34. High speed vertical diesel engines, water cooled and air-cooled upto 40 H.P.
35. Electric motors squirrel cage or slipring upto 75 HP tropicalised.
36. Industrial shutters.
37. Industrial process and flow control instruments.
38. Exhaust fans and blowers.
39. Jigs and fixtures.
40. Automobile ancillaries like piston rings, piston assemblies, rigs, connecting rods, crankshafts, filters and filter elements,
electrical parts, axle tubes, radiators, engine valves, brake assemblies, brake lining, clutches, fuel injection equipment, bi metal
bearings, alternators, self starters, screen wipers, shock absorbers; rubber parts, headlights, auto-leaf springs etc.
41. Grey iron, malleable iron and steel and other castings and forgings.
42. Electric switchgear and control gear.
43. Train lighting equipment.
44. Fabricated steel structures like towers, etc.
45. Razor blades.
46. Calculating machines.
47. Transport equipment, components and accessories thereof
48. Bright bars.
49. Wire ropes.
50. Railway wagons.
51. Diesel trucks and other commercial vehicles.
52. Escavators.
53. Road rollers. .
54. General lightning services.
55. Fluorescent tubes.
56. Miniature bulbs.
57. Mercury vapour lamps.
58. Refrigerators.
59. Room airconditioners.
60. Radio receivers.
61. Circuit breakers.
62. Lightning arrestors.
63. X-ray equipment.
64. Water meters.
65. House service meters.
66. Distribution and power transformers.
67. Duplicators.
68. Typewriters.
69. Computers.
70. Phosphor bronze wire cloth.
71. Expanded metal.
72. Ball and roller bearings.
73. Industrial roller chains.
74. Transistorised radios and radio parts.
75. Locks and padlocks.
76. Pressure lamps and stoves,
77. Storage batteries and dry batteries.
78. Flash lights.
79. Aluminium cables.
VIII. Other Manufactured goods
1. Cotton textiles.
2. Woollen textiles.
3. Woollen knitwear.
4. Cotton knitwear.
5. Other mixed fabrics.
6. Ready-made garments.
7, Nylon socks.
8. jute goods including jute canvas and jute tarpaulin.
9. Cigars and cigarettes.
10. Linoleum and other synthetic leather materials.
11. Leather footwear and leather manufactures.
12. Sports goods.
13. Paints, varnishes, enamels and lacquers.
14. Plywood and walnut veneers.
15. Spectacle frames.
16. Plastic manufactures.
17. P.V.C. floor tiles.
18. Synthetic resins such as Alkyd. Phenolic, Maleic, Malamine formaldehyde and P.V.C. emulsion.
19.Decorative phenolic laminates.
20. Automobile tyres and tubes.
21. Rayon tyre cord.
22. Thermos flasks.
23. Wired and figured glass.
24. Bristles.
25. Collapsible tubes.
26. Graphite electrodes.
27. Enamel ware.
IX. Handicrafts
Indian handicrafts and cottage industry products e.g. hand-loom (cotton and silk), artistic silverware, copper and brass ware, bidri
products, wood carvings, etc.
X. Chemical. Pharmaceutical and Allied products
A. Organic and Inorganic Chemicals.
1. Ethylene glycol.
2. Ethyl acetate.
3. Ethylene oxide.
4. Ethrene.
5. Formaldehyde.
6. Chronic acid.
7. Trichlor ethylene.
9. Sodium biochromates.
9. Sodium perborate.
10. Barium carbonate.
11. Mercuric chloride.
12. Ammonium chloride.
13. Magnesium sulphate.
14. Calcium chloride.
15. Synthetic dyes-Azo dyes, Napthols, Vat dyes, sulphur dyes, Repidogens.
16. Optical whitening agents.
17. Carboxy methyl cellulose.
18. Synthetic detergents.
19. Toiletries and cosmetics.
20. Chrome chemicals.
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. Polyethylene.
2. Medicinal herbs.
XI. Miscellaneous
1. Asbestos cement products.
2. Stationery articles.
2. Surgical instruments and hospital appliances.
4. Books and periodicals.
5. Films cinematographic and exposed.
6. Topioca.
