Treaty of Trade, Treaty of Transit and Trade Related Agreements
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Treaty of Trade, Treaty of Transit and Trade Related Agreements Between Government of Nepal and Neighbouring Countries (India, People's Republic of China & Bangladesh) (Amended and updated up to July 2010) Published by: Nepal Transit and Warehousing Company Limited (An Undertaking of Government of Nepal) Head Office: Battishputali, Araniko Marg, P.O.Box No: 1194 Old Baneswor, Kathmandu, Nepal Phone: 4460564, 4468421, Fax No. 977-1-4464361 July 2010 Disclaimer: The Nepal Transit and Warehousing Company Limited endeavor, using its best effort to provide accurate text of treaties, agreements, protocol, memorandum and Letter of Exchange from Ministry of Commerce and Supplies and publish it in the original form avoiding any mistakes in editing and printing. However, NTWCL do not make any representation or take responsibility for any omission and error. MESSAGE It gives me immense pleasure to note that Nepal Transit and Warehousing Company (Ltd.) is bringing out a compendium compiling different treaties and agreements concluded between Nepal and her neighbors namely India, China and Bangladesh in trade, transit and trade related matters. As a land locked country, trade with neighboring countries has significant importance and relevance for Nepal to boost her economy. The collection of treaties and agreements will serve as an useful document for those who are interested to know the market access opportunities and trading conditions of Nepal. Nepal Transit and Warehousing Company (Ltd.) is a public sector undertaking responsible for carrying out port and cargo handling and warehousing activities to facilitate Nepalese transit trade. The Company is also responsible for clearing, forwarding and undertaking of Nepalese cargo in accordance with Nepal-India Treaty of Transit. Thus the Company has a very important role in facilitating Nepalese trade in general and the third country trade in particular. Nepal has been adopting and implementing liberal trade policies for last two decades. As concurrent world economy is over-whelmingly guided by trade, Nepal is striving for reaping benefits of globalization through liberalizing trade policies and strengthening trade infrastructures both in government and private sector. Nepal has so far completed almost one and a half dozen bilateral trade treaties with different countries around the world and entered into multi-lateral trading system with the accession to WTO in April, 2004. Similarly, to foster trade at regional level, Nepal has become the member of SAFTA and BIMSTEC in the same year. All these are happening because of adoption of liberalized trade and economic policies. I believe that this publication will be an important step in disseminating important and authentic information to the common public, acedemicia, researchers, entrepreneurs, businesspersons, concerned officials and other interested readers who frequently come into contact with Nepal's trade and transit issues in different ways. Finally, I would like to extend my sincere thanks to those officials of Ministry of Commerce and Supplies (MOCS) and NTWCL, for their hard work in bringing out this issue. (Purushottam Ojha) Secretary Ministry of Commerce and Supplies Government of Nepal FOREWORD Nepal Transit and Warehousing Company Limited is bringing out the revised edition of the latest text of the Treaty of Transit, Treaty of Trade and Trade Related Agreements between Government of Nepal and Neighboring Countries (India, People's Republic of China & Bangladesh) with the aim of providing consolidated information to the related agencies. I thank all the officials of this Company who have contributed in bringing out this present revised edition. I hope this book will be beneficial to all the users Yogendra Mahto Executive Chairman NTWCL CONTENTS A. Agreement between Nepal and India 1. Treaty of Transit.................................................................................................1 2. Protocol to the Treaty of Transit ..........................................................................4 3. Memorandum to the Treaty of Transit ..................................................................9 4. Letter of Exchange Related to the Treaty of Transit a. Extension and validity of all Articles of the Agreement of Treaty of Transit (March 30, 2006) ........................................................................ 20 b. Extension and validity of all Articles of the Agreement of Treaty of Transit & Agreements in the Protocol & Memorandum. ........................... 28 c. The Arrangement of free time for the removal of Nepalese transit cargo (January 5, 1999) .......................................................................... 34 d. Additional Transit Route from Kakarbhitta (Nepal) to Bangladesh via Phulbari (India) for Operating Modalities ........................................... 36 e. The movement of Nepalese goods, Nepalese Vehicles and baggage from one part of Nepal to other through Indian territory............................ 40 f. The movement of Nepalese private commercial vehicles from the Nepalese border to Kolkata/Haldia and back............................................ 42 g. The entry and exit points along the India-Nepal border and the Overland Transit Facilities through Radhikapur and Phulbari route ........... 44 h. Other Relevant Information .................................................................... 46 5. Treaty of Trade .............................................................................................. 47 6. Protocol to the Treaty of Trade......................................................................... 50 7. Letter of Exchange Related to the Treaty of Trade a. Extension and validity of all the twelve Articles of the India-Nepal Treaty of Trade, and Protocol to Articles I, II, III and IV .......................... 64 b. Protocol for Im plementation of Treaty of Trade ....................................... 67 c. The Provision of Inter-Governmental Committee of the senior representatives of the Government of Nepal and India .............................. 69 d. The Automatic Renewal of the Treaty of Trade ....................................... 70 8. Agreement of Co-operation to control Unauthorized Trade ................................. 72 9. Letter of Exchange Related to the Agreement of Co-operation to control Unauthorized Trade a. Extension & validity of all Articles of the Agreements of Co- operation to Control Unauthorized Trade (March 2007) ........................... 74 b. Extension & validity of all the eight Articles of the Agreements of Co-operation to Control Unauthorized Trade. (March 5, 2002) ................. 76 10. Rail Services Agreement (amended) .................................................................. 78 Letter of Exchange Related to the Rail Service Agreement a. Amendment to the Rail Service Agreement............................................ 106 b. Operational arrangement of the Rail Service Agreement ....................... 108 B. Agreement between Nepal and The People's Republic of China 11. Trade and Payment Agreements .................................................................. 110 12. Letter of Exchange Related to Trade and Payment Agreement for two additional trading points............................................................................... 114 13. Agreement on Road Transportation ............................................................. 116 14. Protocol to the Agreement on Road Transportation ....................................... 119 15. Agreement on Trade and other related matters between The Tibet Autonomous Region of China and Nepal ...................................................... 121 16. Agreement of Cooperation for Industrial Product Inspection ......................... 126 17. MOU on the establishment of Nepal-China's Tibet Trade Facilitation Committee .................................................................................................. 130 18. The letter of exchange on granting Special Preferential Tariff Treatment to certain goods originated in Nepal and exported to China ............................ 132 C. Agreement between Nepal and The People's Republic of Bangladesh. 19. Trade and Payments Agreement ................................................................... 144 20. Protocol to the Trade and Payments Agreement ............................................. 148 21. Transit Agreement....................................................................................... 149 22. Protocol to the Transit Agreement ................................................................ 151 TREATY OF TRANSIT BETWEEN HIS MAJESTY'S THE GOVERNMENT OF NEPAL AND THE GOVERNMENT OF INDIA His Majesty's Government of Nepal and The Government of India (hereinafter also referred to as the Contracting Parties), Animated by the desire to maintain, develop and strengthen the existing friendly relations and co-operation between the two countries, Recognising that Nepal as a land-locked country needs freedom of transit, including permanent access to and from the sea, to promote its international trade, And recognisin g the need to facilitate the traffic -in -transit through their territories, Have resolved to extend the validity of the existing treaty of transit, with modifications mutually agreed upon, and Have for this purpose appointed as their plenipotentiaries the following persons namely, (Shri Ramakrishna Hegde) (Shri Purna Bahadur Khadka) Minister of Commerce Minister of Commerce