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Treaty of Trade and
Commerce Between the Government of India and Nepal
Kathmandu,
31 JU1Y 1950
The Government of India and
the Government of Nepal being desirous of facilitating and
furthering trade and commerce between their respective territories
have resolved to conclude a treaty of Trade and Commerce
and have, for this purpose, appointed as their plenipotentiaries
the following persons, namely,
The Government of India:
HIS EXCELLENCY SHRI CHANDRESHWAR PRASAD NARAIN SINGH
Ambassador of India in Nepal;
The Government of Nepal:
MOHUN SHAMSHER JANG BAHADUR RANA,
Maharaja, Prime Minister and Supreme Commander-in-Chief
of Nepal,
who having examined each other's credentials and found them
good and in due form have agreed as follows:—
Article 1
The Government of India recognise
in favour of the Government of Nepal full and unrestricted
right of commercial transit of all goods and manufactures
through the territory and ports of India as provided in
Articles 2, 3 and 4 below.
Article 2
Subject to such arrangements
as may be agreed upon between the two Governments, the Government
of India agree to allow all goods imported at any Indian
port and intended for re-export to Nepal to be transmitted
to such place or places in Nepal as may be approved by the
two Governments, without breaking bulk en route and without
payment of any duty at any Indian port.
Article 3
Subject to such arrangements
as may be agreed upon between the two Governments the right
of passage without payment of excise or import duties shall
similarly extend also to goods of Nepalese origin in transit
through Indian territory from one approved place to another
within the territories of the Kingdom of Nepal.
Article 4
Subject to such arrangements
as may be agreed upon between the two Governments, the Government
of Nepal shall enjoy full and unrestricted right of commercial
transit, from approved place or places in Nepalese territory,
through the territories and ports of India, of all goods
and manufactures of Nepalese origin for export outside India.
Article 5
The Government of Nepal agree
to levy at rates not lower than those leviable, for the
time being, in India customs duties on imports from and
exports to countries outside India. The Government of Nepal
also agree to levy on goods produced or manufactured in
Nepal, which are exported to India, export duty at rates
sufficient to prevent their sale in India at prices more
favourable than those of goods produced or manufactured
in India which are subject to central excise duty.
Article 6
The Government of India and
the Government of Nepal agree to assist each other, by making
available, to the maximum extent possible, commodities which
are essential to the economy of the other.
Article 7
The two Governments agree
to promote contacts between the trade interests of the two
countries and undertake to give every reasonable facility
for the import and export of commodities, and in particular
to facilitate the use of the routes and methods of transportation
which are most economical and convenient.
Article 8
Civil aircraft of either
State shall be permitted to fly over the territory of the
other in accordance with normal international procedure.
Article 9
So far as matters dealt with
herein are concerned this Treaty cancels all previous treaties,
agreements or engagements concluded between the British
Government on behalf of India and the Government of Nepal.
Article 10
This Treaty shall come into
force three months after the date of signature by both parties.
It shall remain in force for a period of 10 years, in the
first instance, and shall unless terminated by either party
by giving notice of not less than one year in writing, continue
in force for a further period of 10 years.
DONE in duplicate at Kathmandu
this 31st day of July 1950.
For the Government of India:
(Signed ) CHANDRESHWAR PRASAD NARAIN SINGH
For the Government of Nepal:
(Signed ) MOHUN SHAMSHER JANG BAHADUR RANA MEMORANDUM
(Vice Articles 2 and 3
of the Treaty of Trade and Commerce between Nepal and India)
PART A
The arrangements contemplated
in Article 2 of the Treaty of Trade and Commerce between
Nepal and India signed on 31-7-50 shall be as follows:—
(1) When goods are imported
for re-export to Nepal, the importer or his agent, shall,
at the time of entering them at the Customs House
(a) declare that the goods
are intended for re-export to Nepal and would not be diverted
en route to any other country;
(b) furnish, in quadruplicate,
an invoice of the goods in a prescribed form, certified
by a Nepalese officer appointed for
(2) the purpose, specifying
therein by which authorised land routes the goods are intended
to be transported and also the land customs station through
which the goods will be taken out of India; deposit an amount
equal to the duty chargeable under the Indian Customs Tariff,
or furnish a bond with the surety of a bank of standing,
binding him to pay duty on any portion of the consignment
that is not cleared from the custody of the Nepal customs
on payment of the (Nepal) customs duty. On compliance with
the above provisions, the goods shall be sealed with the
Customs seal and delivered to the owner together with the
original copy of the invoice, duly completed and registered.
The duplicate and triplicate copy of the invoice shall,
at the same time, be forwarded to the land customs officer
of the station referred to in paragraph (1) (b) above.
(3) The land customs officer
to whom the goods are presented shall examine the seals
and, if these are intact, certify that the goods have crossed
the Indian frontier with the seals intact. The original
copy of the invoice shall be returned to the owner with
the goods for presentation to the Customs authorities in
Nepal. The duplicate copy, duly endorsed, shall be returned
to the Customs House whence it was received, and the triplicate
copy, duly endorsed, forwarded to the Indian Embassy in
Nepal.
(4) In order to secure the
refund of the deposit, or cancellation of the bond furnished
under paragraph (1) (c), the importer, or his agent, must
present an application to that effect supported by the original
invoice, duly certified by the land customs officer referred
to in paragraph (3) above to the effect that the goods have
crossed the Indian frontier and by the Nepal Customs to
the effect that they have reached Nepal with the Indian
Customs seal intact, and that the packages corresponding
with the details in the invoice have been cleared from their
custody on payment of customs duty. The certificate by the
Nepal Customs shall be countersigned by an officer or officers
designated in this behalf by the Government of Nepal. The
original invoice should be received in the Customs House
within a period of six months; this period may be raised
at the discretion of the Indian Customs authority concerned
in any case in which it is proved, to its satisfaction,
that the delay is due to circumstances beyond the control
of the importer.
(5) Before granting the refund
of deposit or cancellation of the bond, the officer concerned
in the Customs House shall compare the original copy of
the invoice received from the importer with the duplicate
copy received from the land Customs officer concerned.
PART B
At present the Government
of India do not consider it necessary, for reasons of their
administrative convenience, to prescribe any arrangements
under Article 3 of the Treaty; but if and when Government
of India should decide to do so, the arrangements described
in Part A will apply mutatis mutandis to the transit of
goods under Article 3 of the Treaty.
PART C
The two Governments approve
for the purposes of Articles 2 and 3 of the Treaty convenient
points, within Nepalese territory contiguous to the following
rail heads:—
1. Raxaul.
2. Jogbani.
3. Nepalganj.
4. Nautanwa.
5. Jayanagar.
(Signed)
CHANDRESHWAR PRASAD NARAIN SINGH SIGNED
at Kathmandu on the 31st July 1950 on behalf of the Government
of India.
(Signed )
MOHUN SHAMSHER JANG BAHADUR RANA STONED
at Kathmandu on the 31st July 1950 on behalf of the Government
of Nepal.
MEMORANDUM (Vice Article
4 of the Treaty of Trade and Commerce between Nepal and
India)
PART A
The arrangements contemplated
in Article 4 of the Treaty of Trade and Commerce between
Nepal and India signed on 31-7-50 shall be as follows:—
(1) Goods of Nepalese origin
or manufacture imported into India for subsequent re-export
to a country outside India, shall enjoy freedom of transit
across the territories of India. This shall include exemption
from Indian customs duties, cess or excise duties as well
as exemption from compliance with Indian export and import
control regulations provided that the exporter or his authorised
agent .
(a) makes a declaration in
the prescribed form at the Indian land customs station of
entry to the effect that the goods are intended for re-export
out of India;
(b) furnishes in quadruplicate,
an invoice of the goods in a prescribed form, counter signed
by a Nepalese officer appointed for the purpose, specifying
therein by which authorised land routes the goods are intended
to be transported and also the port through which the goods
will be taken out of India; and
(c) deposits an amount equal
to the duty chargeable under the Indian Customs Tariff,
or furnishes a bond with the surety of a bank of standing,
binding him to pay duty on any portion of the consignment
that is not cleared for export out of India through the
Customs House of the port referred to in (b) above.
(2) On compliance with the
above provisions, the goods shall be sealed with the seal
of the Indian Land Customs station referred to in 1 (a)
above and delivered to the exporter or his agent together
with the original copy of the invoice, duly completed and
registered. The duplicate and triplicate copy of the invoice
shall, at the same time, be forwarded to the Customs House
of the port of exit referred to in paragraph 1 (b) above.
(3) The Customs Officer at
the port of exit shall, before the goods are re-exported,
examine the seals and, if these are intact, certify that
the goods have been brought for shipment with the seals
intact. After the goods have actually been reexported the
original copy of the invoice shall be returned to the owner
with a certificate to the foregoing effect for presentation
to the Customs authorities, at the land customs station
of entry. The duplicate copy, duly endorsed, shall be returned
to the land customs station from which it was received,
and the triplicate copy, duly endorsed retained in the Customs
House for record.
(4) In order to secure the
refund of the deposit, or cancellation of the bond furnished
under paragraph 1 (c), the exporter or his agent must present
an application to that effect supported by the original
invoice duly certified by the Customs House of the port
of exit referred to in paragraph (3) above to the effect
that the goods have been ret-exported out of India. The
original invoice shall be presented at the land custom's
station of entry within a period of six months or such extended
time as the Customs authority at the port of exit might
certify as being due to circumstances beyond the control
of the exporter.
(5) Before granting the refund
of deposit or cancellation of the bond, the officer concerned
in the land customs station shall compare the original copy
of the invoice received from the exporter with the duplicate
copy received from the Customs House concerned.
PART B
The two Governments approve
for the purpose of Article 4 of the Treaty convenient points
within Nepalese territory contiguous to the following rail
heads:—
1. Raxaul.
2. Jogbani.
3. Nepalganj.
4. Nautanwa.
5. Jayanagar.
(Signed)
CHANDRESHWAR PRASAD NARAIN SINGH SIGNED
at Kathmandu on the 31st July 1950 on behalf of the Government
of India.
(Signed)
MOHUN SHAMSHER JANGBAHADUR RANA SIGNED
at Kathmandu on the 31st July 1950 on behalf of the Government
of Nepal.
Source: India
Bilateral Treaties & Agreements (Volume 1)
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