Nepal

MINISTRY OF COMMERCE & INDUSTRY

GOVERNMENT OF INDIA NEW DELHI
TREATY OF TRADE BETWEEN THE
GOVERNMENT OF INDIA AND HIS
MAJESTYS GOVERNMENT OF NEPAL
The Government of India and His Majestys Government of Nepal
(hereinafter referred to as the Contracting Parties)
!eing conscio"s of the need to fortify the traditional connection
#et$een the mar%ets of the t$o co"ntries
!eing animated #y the desire to strengthen economic
cooperation #et$een them
Impelled #y the "rge to develop their economies for their several
and m"t"al #ene&t and
Convinced of the #ene&ts of m"t"al sharing of scienti&c and
technical %no$ledge and e'perience to promote m"t"al trade
Have resolved to concl"de a Treaty of Trade in order to e'pand
trade #et$een their respective territories and enco"rage colla#oration
in economic development and
Have for this p"rpose appointed as their Plenipotentiaries the
follo$ing persons namely
(or the government of India )hri P* Chidam#aram
Minister of )tate for Commerce
(or His Majestys )hri Gopal Man )hrestha
Government of Nepal Minister of Commerce
+ho having e'changed their f"ll po$ers and fo"nd them good
and in d"e form have agreed as follo$s,
ARTICLE I
The Contracting Parties shall e'plore and "nderta%e all
meas"res incl"ding technical cooperation to promote facilitate
e'pand and diversify trade #et$een their t$o co"ntries*
ARTICLE II
The Contracting Parties shall endeavo"r to grant ma'im"m facilities
and to "nderta%e all necessary meas"res for the free and "nhampered
-o$ of goods needed #y one co"ntry from the other to and from their
respective territories*
2
ARTICLE III
!oth the Contracting Parties shall accord "nconditionally to each
other treatment no less favo"ra#le than that accorded to any third
co"ntry $ith respect to (a) c"stoms d"ties and charges of any %ind
imposed on or in connection $ith importation and e'portation and (#)
import reg"lations incl"ding ."antitative restrictions*
ARTICLE IV
The Contracting Parties agree on a reciprocal #asis to e'empt
from #asic c"stoms d"ty as $ell as from ."antitative restrictions the
import of s"ch primary prod"cts as may #e m"t"ally agreed "pon
from each other*
ARTICLE V
Not$ithstanding the provisions of /rticle III and s"#ject to s"ch
e'ceptions as may #e made after cons"ltation $ith His Majestys
Government of Nepal the Government of India agree to promote the
ind"strial development of Nepal thro"gh the grant on the #asis of non0
reciprocity of specially favo"ra#le treatment to imports into India of
ind"strial prod"cts man"fact"red in Nepal in respect of c"stoms d"ty
and ."antitative restrictions normally applica#le to them*
ARTICLE VI
+ith a vie$ to facilitating greater interchange of goods #et$een
the t$o co"ntries His Majestys Government shall endeavo"r to
e'empt $holly or partially imports from India from c"stoms d"ty and
."antitative restrictions to the ma'im"m e'tent compati#le $ith their
development needs and protection of their ind"stries*
ARTICLE VII
Payment for transactions #et$een the t$o co"ntries $ill
contin"e to #e made in accordance $ith their respective foreign
e'change la$s r"les and reg"lations* The Contracting Parties agree
to cons"lt each other in the event of either of them e'periencing
di1c"lties in their m"t"al transactions $ith a vie$ to resolving s"ch
di1c"lties*
ARTICLE VIII
3
The Contracting Parties agree to co0operate e2ectively $ith each
other to prevent infringement and circ"mvention of the la$s r"les and
reg"lations of either co"ntry in regard to matters relating to foreign
e'change and foreign trade*
ARTICLE IX
Not$ithstanding the foregoing provisions either Contracting
Party may maintain or introd"ce s"ch restrictions as are necessary for
the p"rpose of,
(a) protecting p"#lic morals
(#) protecting h"man animal and plant life
(c) safeg"arding national treas"res
(d) safeg"arding the implementation of la$s relating to the import
and e'port of gold and silver #"llion and
(e) safeg"arding s"ch other interests as may #e m"t"ally agreed
"pon*
ARTICLE X
Nothing in this treaty shall prevent either Contracting Party from
ta%ing any meas"res $hich may #e necessary for the protection of its
essential sec"rity interests or in p"rs"ance of general international
conventions $hether already in e'istence or concl"ded hereafter to
$hich it is a party relating to transit e'port or import of partic"lar
%inds of articles s"ch as narcotics and psychotropic s"#stances or in
p"rs"ance of general conventions intended to prevent infringement of
ind"strial literary or artistic property or relating to false mar%s false
indications of origin or other methods of "nfair competition*
ARTICLE XI
In order to facilitate e2ective and harmonio"s implementation of
this Treaty the Contracting Parties shall cons"lt each other reg"larly*
4
ARTICLE XII
(a)3 This Treaty shall remain in force 33for a period of fve years
from 6
th
March, 2002 to 5
th
March, 2007 333and shall #e
a"tomatically e'tended for f"rther periods of &ve (4) years at a time
"nless either of the parties gives to the other a $ritten notice three
months in advance of its intention to terminate the Treaty*
(#)3 This Treaty may #e amended or modi&ed #y m"t"al consent of
the parties*
5one in d"plicate in Hindi Nepali and 6nglish lang"ages all the
te'ts #eing e."ally a"thentic at Ne$ 5elhi on 7
th
5ecem#er 8998* In
case of do"#t the 6nglish te't $ill prevail*
(P. CHIDAMBARAM) (GOPALMAN SHRESTHA)
Minster of )tate for Commerce Minister of Commerce
(or the Government of India Government of Nepal
3 /s modi&ed thro"gh e'change of letters dated :
rd
5ecem#er
8997 #et$een the Commerce )ecretaries of India and Nepal*
33 /s modi&ed thro"gh e'change of letters dated ;
nd
March ;<<;
#et$een Commerce )ecretaries of India and Nepal*
333 The validity of the Treaty of Trade stands a"tomatically e'tended
for &ve years #eyond 4th march ;<<= in terms of article >II*
PROTOCOL TO THE TREATY OF TRADE
I. With Ree!e"#e t$ A!ti#%e I
5
8* It is "nderstood that the trade #et$een the t$o Contracting
Parties shall #e cond"cted thro"gh the m"t"ally agreed ro"tes as are
mentioned in the A""e&'!e A. )"ch m"t"ally agreed ro"tes $o"ld
#e s"#ject to joint revie$ as and $hen re."ired*
;* It is f"rther "nderstood that the e'ports to and imports from
each other of goods $hich are not s"#ject to prohi#itions or d"ties on
e'portation or importation shall contin"e to move thro"gh the
traditional ro"tes on the common #order*
II. With Ree!e"#e t$ A!ti#%e II
8* It is "nderstood that all goods of Indian or Nepalese origin shall
#e allo$ed to move "nhampered to Nepal or India respectively $itho"t
#eing s"#jected to any ."antitative restrictions licensing or permit
system $ith the follo$ing e'ceptions,
(a) goods restricted for e'port to third co"ntries
(#) goods s"#ject to control on price for distri#"tion or
movement $ithin the domestic mar%et and
(c) goods prohi#ited for e'port to each others territories to
prevent de-ection to third co"ntries*
;* In order to facilitate the smooth -o$ of goods across the #order
the list of commodities s"#ject to restrictions?prohi#itions on e'ports to
each others territories shall #e immediately comm"nicated thro"gh
diplomatic channels as and $hen s"ch restrictions?prohi#itions are
imposed or rela'ed*
:* It is f"rther "nderstood that $hen noti&cations regarding
restrictions on e'ports to each other are iss"ed ade."ate provisions
$ill #e made therein to allo$ the e'port to each other of the goods
$hich are already covered #y @etter of Credit or goods $hich are
already in transit and?or #oo%ed thro"gh the rail$ays or other p"#lic
sector transport "nderta%ings or goods $hich have already arrived at
the #order c"stoms posts on the day of the noti&cation*
A* In respect of goods falling "nder prohi#ited or restricted
categories as mentioned in para 8 a#ove and $here needed #y one
Contracting Party the other shall a"thorise e'ports of s"ch goods
s"#ject to speci&c ann"al ."ota allocations* )peci&c re."est list of
s"ch goods shall #e f"rnished to each other #y the end of Novem#er
and speci&c ."ota allocations for the follo$ing calendar year shall #e
made #y the end of 5ecem#er $ith d"e regard to the s"pply
6
availa#ility and the overall need of the other Contracting Party* The
."ota list may #e jointly revie$ed as and $hen necessary*
4* The Contracting Parties shall ta%e appropriate meas"res and co0
operate $ith each other to prevent "na"thorised import in e'cess of
the ."ota of goods the e'port of $hich is prohi#ited or restricted from
the territory of the other Contracting Party*
III. With Ree!e"#e t$ A!ti#%e III
8* The Government of India $ill allo$ to his Majestys Government
of Nepal payment of the e'cise and other d"ties collected #y the
Government of India on goods prod"ced in India and e'ported to Nepal
provided that,

(i) s"ch payment shall not e'ceed the import d"ties and li%e
charges levied #y His Majestys Government of Nepal on
similar goods imported from any other co"ntry and
(ii) His Majestys Government of Nepal shall not collect from
the importer of the said Indian goods so m"ch of the
import d"ty and li%e charges as is e."al to the payment
allo$ed #y the Government of India*
IV. With Ree!e"#e t$ A!ti#%e IV
8* The follo$ing primary prod"cts $o"ld #e eligi#le for preferential
treatment,
8* /gric"lt"re hortic"lt"re and forest prod"ce and minerals
$hich have not "ndergone any processing
;* Bice p"lses and -o"r
:* Tim#er
A* Caggery (g"r and sha%ar)
4* /nimals #irds and &sh
7* !ees #ees0$a' and honey
=* Ba$ $ool goat hair and #ones as are "sed in the
man"fact"re of #one0meal
D* Mil% home made prod"cts of mil% and eggs
9* Ghani0prod"ced oil and oilca%es
8<*/y"rvedic and her#al medicines
88*/rticles prod"ced #y village artisans as are mainly "sed in
villages
8;*/%ara
8:*Ea% Tail
7
8A*/ny other primary prod"cts $hich may #e m"t"ally agreed
"pon*
;* It is "nderstood that in the matter of internal ta'es or charges
the movement of primary prod"cts of either Contracting Party to any
mar%et destinations in the territory of the other shall #e accorded
treatment no less favo"ra#le than that accorded to the movement of
its o$n primary prod"cts $ithin its territory*
:* It is also "nderstood that the aforesaid provisions $ill not
precl"de a Contracting Party from ta%ing any meas"res $hich it may
deem necessary on the e'portation of primary prod"cts to the other*
V. (With Ree!e"#e t$ A!ti#%e V
8* The Government of India $ill provide preferential access to the
Indian mar%et free of c"stoms d"ties normally applica#le and
."antitative restrictions e'cept as mentioned else$here for all
articles man"fact"red in Nepal provided they f"l&ll the ."alifying
criteria given #elo$,
(a) the articles are man"fact"red in Nepal $holly from Nepalese
materials or Indian materials or Nepalese and Indian materialsF
or
(#) (i) the articles involve a man"fact"ring process in Nepal that
#rings a#o"t a change in classi&cation at fo"r digit level of the
HarmoniGed Commodities 5escription and Coding )ystem
di2erent from those in $hich all the third co"ntry origin
materials "sed in its man"fact"re are classi&edF and the
man"fact"ring process is not limited to ins"1cient $or%ing or
processing as indicated in /nne'"re H!I and
(#) (ii) (rom 7
th
March ;<<; to 4
th
March ;<<: the total val"e of
materials parts or prod"ce originating from non0Contracting
Parties or of "ndetermined origin "sed does not e'ceed =4J
(seventy &ve percent) of the e'0factory price of the articles
prod"ced and the &nal process of man"fact"ring is performed
$ithin the territory of Nepal* (rom 7
th
March ;<<: on$ards the
total val"e of materials parts or prod"ce originating from non0
Contracting Parties or of "ndetermined origin "sed does not
K /s modi&ed on <;*<:*;<<;
8
e'ceed =<J (seventy percent) of the e'0factory price of the articles
prod"ced and the &nal process of man"fact"ring is performed $ithin
the territory of Nepal*
N$te)
The val"e of materials parts or prod"ce originating from non0
Contracting Parties shall #e the CI( val"e at the time of importation of
materials parts or prod"ce at the point of entry in Nepal $here this
can #e proven or the earliest ascertaina#le price paid for the
materials parts or prod"ce of "ndermined origin in the territory of the
Contracting Party $here the $or%ing or processing ta%es place*
(c) (or Nepalese articles not f"l&lling the conditions given in s"#0
para08 (#) (i) a#ove #"t f"l&lling the condition at s"#0para08 (#)(ii)
a#ove preferential access may #e given #y the Government of India
on a case #y case #asis after satisfying itself that s"ch article has
"ndergone a s"1cient man"fact"ring process $ithin Nepal*
(d) Ho$ever the import of Nepalese man"fact"red articles
descri#ed in A""e&'!e *C+ $hich f"l&ll the criteria in s"#0para08 (a)
or (#) (i) L (ii) a#ove $ill #e governed #y the terms speci&ed in this
/nne'"re*
(e) In the case of other articles man"fact"red in Nepal $hich do not
f"l&ll the ."alifying criteria speci&ed in s"#0para08 (a) or (#) (i) L (ii)
a#ove the Government of India $ill provide normal access to the
Indian mar%et consistent $ith its M(N treatment*
;* Import of articles in accordance $ith the para08 a#ove shall #e
allo$ed #y the Indian c"stoms a"thorities on the #asis of the
Certi&cate of Mrigin to #e iss"ed #y the agency designated for this
p"rpose #y His Majestys Government of Nepal in the format prescri#ed
at A""e&'!e , *D+ for each consignment of articles e'ported from
Nepal to India* Information regarding the #asis of calc"lation for grant
of s"ch Certi&cates of Mrigin to the man"fact"ring facilities in Nepal
$ill #e provided to the Government of India on an ann"al #asis* The
modalities for this $ill #e $or%ed o"t $ithin three months from the
signing of the Protocol* Preferential facility shall not #e availa#le for
the articles listed at A""e&'!e-*E+.
9
:* Mn the #asis of a Certi&cate iss"ed for each consignment of
articles man"fact"red in the small0scale "nits in Nepal #y His
Majestys Government of Nepal that the relevant conditions applica#le
to the articles man"fact"red in similar )mall )cale Ind"strial "nits in
India for relief in the levy of applica#le 6'cise 5"ty rates are f"l&lled
for s"ch a parity Government of India $ill e'tend parity in the levy of
/dditional 5"ty on s"ch Nepalese articles e."al to the treatment
provided in the levy of e2ective 6'cise 5"ty on similar Indian articles
"nder the Indian C"stoms and Central 6'cise Tari2* Ho$ever this
facility $ill #e applica#le only to articles man"fact"red in Nepal in s"ch
small scale "nits $hich ."alify as small scale "nits "nder the Nepalese
Ind"strial Policy as on 4
th
5ecem#er ;<<8*
A* The H/dditional 5"tyI rates e."al to the e2ective Indian e'cise
d"ty rates applica#le to similar Indian prod"cts "nder the Indian
C"stoms L Central 6'cise Tari2 $ill contin"e to #e levied on the
imports into India of prod"cts man"fact"red in the medi"m and large
scale "nits in Nepal*
A*8 In regard to additional d"ty collected #y the Government of India
in respect of man"fact"red articles other than those man"fact"red in
HsmallI "nitsF +herever it is esta#lished that the cost of prod"ction of
an article is higher in Nepal than the cost of prod"ction in a
corresponding "nit in India a s"m representing s"ch di2erence in the
cost of prod"ction #"t not e'ceeding ;4 per cent of the Hadditional
d"tyI collected #y the Government of India $ill #e paid to His
Majestys Government of Nepal provided His Majestys Government of
Nepal have given assistance to the same e'tent to the (man"fact"rers)
e'porters*
4* 6'port of consignments from Nepal accompanied #y the
Certi&cate of Mrigin $ill normally not #e s"#jected to any
detention?delays at the Indian c"stoms #order chec%posts and other
places en ro"te* Ho$ever in case of reasona#le do"#t a#o"t the
a"thenticity of Certi&cate of Mrigin the Indian C"stoms /"thority may
see% a clari&cation from the certifying agency $hich $ill f"rnish the
same $ithin a period of thirty days* Mean$hile the s"#ject
consignment $ill #e allo$ed entry into India on provisional #asis
against a #ond i*e* a legally #inding "nderta%ing as re."ired* /fter
e'amining the information so provided #y the certifying agency the
Indian C"stoms /"thority $o"ld ta%e appropriate action to &nalise the
provisional assessment* +henever considered necessary re."est for
a joint visit of the man"fact"ring facility may #e made #y the Indian
C"stoms /"thority $hich $o"ld #e facilitated #y the concerned
Nepalese a"thority $ithin a period of thirty days*
10
7* +here for social and economic reasons the import of an item
into India is permitted only thro"gh p"#lic sector agencies or $here the
import of an item is prohi#ited "nder the Indian Trade control
reg"lations the Government of India $ill consider any re."est of His
Majestys Government of Nepal for rela'ation may permit the import of
s"ch an item from Nepal in s"ch a manner as may #e fo"nd to #e
s"ita#le*
=* (or the p"rpose of calc"lation of import d"ties c"stoms val"ation
proced"res as prescri#ed "nder the prevailing c"stoms la$ $ill #e
follo$ed*
VI. With Ree!e"#e t$ A!ti#%e VI
His Majestys Government of Nepal $ith a vie$ to contin"ing
preferences given to Indian e'ports $ill $aive additional c"stoms d"ty
on all Indian e'ports d"ring the validity of the Treaty*
With Ree!e"#e t$ A!ti#%e IX
In the event of imports "nder the Treaty in s"ch a manner or in
s"ch ."antities as to ca"se or threaten to ca"se inj"ry to the domestic
ind"stry or a signi&cant segment of it relating to the article the
importing co"ntry may re."est for cons"ltations in the Coint Committee
set "p #y the t$o Governments for this p"rpose $ith a vie$ to ta%ing
appropriate meas"res* If the cons"ltations in the Coint Committee fail
to resolve the iss"e $ithin a period of si'ty days from the date of s"ch
re."est then the re."esting government shall #e free to ta%e
appropriate remedial meas"res* The India0Nepal Inter0Governmental
Committee (IGC) $ill revie$ s"ch meas"res*
HInj"ryI means signi&cant damage to the domestic prod"cers of
li%e or similar prod"cts res"lting from a s"#stantial increase of imports
"nder the Treaty in sit"ations $hich ca"se s"#stantial losses in terms
of earnings prod"ction or employment "ns"staina#le in short term*
The e'amination of the impact on the domestic ind"stry concerned
shall also incl"de an eval"ation of other relevant economic factors and
indices having a #earing on the state of domestic ind"stry of that
prod"ct*
HThreat of inj"ryI means a sit"ation in $hich a s"#stantial
increase of imports "nder the Treaty is of a nat"re so as to ca"se inj"ry
to the domestic prod"cers and that s"ch inj"ry altho"gh not yet
e'isting is clearly imminent* / determination of threat of inj"ry shall
11
#e #ased on facts and not on mere allegation conject"re or remote or
hypothetical possi#ility*
Inserted on <;*<:*;<<;
A""e&'!e * A +
AGREED ROUTES FOR MUTUAL TRADE
8* Pash"patinagar?)"%hia Po%hari
;* Na%ar#hitta?Na'al#ari
:* !hadrap"r?Galgalia
A* !iratnagar?Cog#ani
4* )eto#andha?!himnagar
7* Baj#iraj?N"na"li
=* )iraha Cana%p"r?Cayanagar
D* Cales$ar?!hitamore ()"rsand)
9* Malanga$a?)ona#arsa
8<* Ga"r?!airgania
88* !irg"nj?Ba'a"l
8;* !hairaha$a?Na"tan$a
8:* Ta"liha$a?Nh"n$a
8A* Nrishnanagar?!arhni
84* Noila#as?Car$a
87* Nepalg"nj?Nepalg"nj Boad
8=* Bajap"r?Naterniyaghat
8D* Prithvip"r?)ati (Nailali)?Ti%onia
89* 5hangadhi?Ga"riphanta
;<* Mahendranagar?!an#asa
;8* Maha%ali?Ch"laghat (Pithoragarh)
;;* 5arch"la?5harch"la
12
A""e&'!e * B +
ILLUSTRATIVE LIST OF
INSUFFICIENT WORKING OR
PROCESSING
The follo$ing shall #e considered as ins"1cient $or%ing or
processing to confer the stat"s of originating or man"fact"red or
prod"ced or made in Nepal to an article $hether or not there is
a change in heading classi&cation at fo"r digit level of the
HarmoniGed Commodities 5escription and Coding system
di2erent from those in $hich all the third co"ntry origin materials
"sed in its man"fact"re are classi&ed,0
a) Mperations to ens"re the preservation of articles in good
condition d"ring transport and storage (e*g* ventilation
spreading o"t dra$ing chilling placing in salt s"lph"r0
dio'ide or other a."eo"s sol"tions removal of damaged
parts and li%e operations)F
#) Mperations consisting of removal of d"st shifting or
screening sorting classifying matching (incl"ding the
ma%ing "p of sets) $ashing painting c"tting "pF
c) Changes of pac%ing and #rea%ing "p and assem#ly of
consignmentsF
d) )licing c"tting slitting re0pac%ing placing in #ottles or
-as%s or #ags or #o'es or other containers &'ing on cards
13
or #oards etc* and all other pac%ing or re0pac%ing
operationsF
e) The a1'ing of mar%s la#els or other li%e disting"ishing
signs on articles or their pac%agingF
f) Mi'ing of articles $hether or not of di2erent %inds $here
one or more components of the mi't"re do not meet the
conditions laid do$n in para 8 (#) of Protocol to /rticle O of
the Treaty to ena#le them to #e considered as
man"fact"red or prod"ced or made in NepalF
g) /ssem#ly of parts of an article to constit"te a complete
articleF
h) / com#ination of t$o or more operations speci&ed in a) to
g) a#ove*
14
A""e&'!e * C +
Nepalese manufactue! at"cles all#$e! ent% "nt# In!"a
fee #f cust#ms !ut"es #n a f"&e! 'u#ta (as"s)
Sl)n#
)
Nepalese At"cle *uant"t% "n MT pe %ea
. Ve/et01%e 0t2 (V0"0230ti) .445 444 (O"e h'"6!e6
th$'20"6)
7 A#!8%i# Y0!" .45 444 (Te" th$'20"6)
9 C$33e! 3!$6'#t2 '"6e!
Ch03te!2 :; < He06i"/
=>.;; $ the H.S. C$6e
.45444 (Te" th$'20"6)
; ?i"# O&i6e 75>44 (t@$ th$'20"6 ABe
h'"6!e6)
a) Imports into India of the a#ove fo"r commodities for
."antities in e'cess of the &'ed ."ota mentioned a#ove $ill
#e permitted "nder normal M(N rates of d"ty
not$ithstanding any concession in any other preferential
arrangement*
15
#) Imports into India of the a#ove commodities $ill #e
permitted thro"gh the land C"stoms )tations (@C)) at
Na%ar#hitta?Na'al#ari !iratnagar?Cog#ani !irganj?Ba'a"l
!hairaha$a?Na"tan$a Nepalg"nj?Nepalg"nj Boad and
Mahendranagar?!an#asa*
c) The detailed administrative arrangements for
operationalisation of the &'ed ."ota i*e* identifying the
agencies for allocation and monitoring of e'ports and
imports of &'ed ."ota $ill #e &nalised #y #oth the
Governments*
A""e&'!e * D +
CERTIFICATE OF ORIGIN
FOR E+PORTS FREE OF CUSTOMS DUTIES
UNDER T,E TREAT- OF TRADE .ETWEEN
,IS MA/EST-0S GOVERNMENT OF NEPAL AND
T,E GOVERNMENT OF INDIA
Beference No* PPPPPPPPPPPPPPPPPPPPPP
8* /rticles consigned from (6'porters #"siness name address)
;* /rticles consigned to (Consignees name address)
:* Means of transport and ro"te
A* Item N"m#er (H) Tari2 @ine)
4* Mar%s and n"m#er of pac%age
7* 5escription of /rticles
=* Gross $eight or other ."antity
D* N"m#er and date of Invoice together $ith val"e
16
9* 6'0(actory price of the articles man"fact"red in Nepal,
8<* (i) +hether articles are man"fact"red in Nepal "nder Para 8 (a)
of the Protocol to /rticle O of the Treaty of Trade (Ees ? No)F
(ii) If articles are man"fact"red in Nepal "nder Para 8(#) (i) L (ii)
of the Protocol to /rticle O of the Treaty of TradeF
(/)CI( val"e of materials parts or prod"ce originating from Non0
Contracting Parties (i*e* other than Nepal L India) at the point of
entry in Nepal,0
(!) Oal"e of materials parts or prod"ce of "ndetermined origin*
PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP
Q6'0factory price means the price of the prod"ct at the time of
clearance from the factory gate*
88* Percentage of the s"m of the val"e of col* 8< (ii) (/) L (!) to the
val"e of col* 9,
8;* 5eclaration #y the e'porterF
The "ndersigned here#y declares that the details f"rnished
a#ove are correct that the articles are prod"ced in Nepal and
that they comply $ith the B"les of Mrigin speci&ed in the Treaty
of Trade #et$een His Majestys Government of Nepal and the
Government of India*
PPPPPPPPPPPPPPPPPPPPPPP
(Place L 5ate )ignat"re of a"thorised signatory)*
8:* Certi&cation
It is certi&ed that the articles herein referred to are eligi#le for
preferential treatment as per provisions of the Treaty of Trade
#et$een His Majestys Government of Nepal and the Government
of India* It is f"rther certi&ed that,
8* The articles have #een man"fact"red in Nepal at a
factory sit"ated at
PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP(name of the
place?district) #y M?s*PPPPPPPPPPPPPPPPPPPPPPPPPPP
PPPPPPPPPPPPPPPPPPPPPPPPPPPPP(name of the company)*
;* The articles involve man"fact"ring activity in Nepal
and that the man"fact"ring activity satis&es the
17
criteria given in the Protocol to /rticle O of the Treaty
of Trade*
:* The articles in ."estion are not prod"cts of third
co"ntry origin*
(or His Majestys Government of Nepal
(Place and 5ate )ignat"re L )tamp of certifying a"thority)
3(or the p"rpose of the a#ove item No*: the articles
$hich have "ndergone a man"fact"ring process in Nepal
as de&ned in the Protocol to /rticle O of the Treaty $ill not
#e treated as prod"ct of third co"ntry origin*
8A* (or M1cial "se of Indian C"stoms
The consignment has #een e'amined and allo$ed to #e
imported into India as it complies $ith the provisions as
stip"lated "nder /rticle O of the Treaty of Trade #et$een His
Majestys Government of Nepal and the Government of India*
PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP
)ignat"re L )eal of the
Certifying a"thority
5ated,
Place,
18
A""e&'!e * E +
MFN LIST OF ARTICLES
W,IC, WILL NOT .E ALLOWED
PREFERENTIAL ENTR- FROM NEPAL TO INDIA
ON T,E .ASIS OF CERTIFICATE OF ORIGIN TO .E
GIVEN .- AGENC- DESIGNATED .- ,IS
MA/EST-0S GOVERNMENT OF NEPAL
8* /lcoholic @i."ors?!everages(3) and their concentrates
e'cept ind"strial spirits
;* Perf"mes and cosmetics $ith non0Nepalese?non0Indian
!rand names
:* Cigarettes and To#acco
Note, Government of India may in cons"ltation $ith HMGN
modify the a#ove list*
(3) Nepalese #eers can #e imported into India on payment
of the applica#le li."or e'cise d"ty e."al to the e2ective
19
e'cise d"ty as levied in India on Indian #eers "nder the
relevant r"les and reg"lations of India* (Nepalese #eer has
#een e'empted from the $hole of the additional d"ty vide
c"stoms noti&cation No* 8=D?;<<:0c"stoms date
8=*8;*;<<:)
TREATY OF TRANSIT
BETWEEN
THE GOVERNMENT OF INDIA
AND
HIS MAJESTYS GOVERNMENT OF NEPAL
The Government of India and His Majestys Government of !e"a#
$hereinafter a#so referred to as the %ontra&tin' (arties)*
+nimated ,y the desire to maintain* deve#o" and stren'then the e-istin'
friend#y re#ations and &oo"eration ,et.een the t.o &o/ntries*
0e&o'nisin' that !e"a# as a #and1#o&2ed &o/ntry needs freedom of transit*
in&#/din' "ermanent a&&ess to and from the sea* to "romote its internationa# trade*

+nd re&o'nisin' the need to fa&i#itate the traffi&1in1transit thro/'h their
territories*
Have reso#ved to e-tend the va#idity of the e-istin' Treaty of Transit* .ith
modifi&ations m/t/a##y a'reed /"on* and
Have for this "/r"ose a""ointed as their "#eni"otentiaries the fo##o.in'
"ersons* name#y*
3or the Government of India
Sh!i R0C0D!i2h"0 He/6e
Minister of %ommer&e
20
3or His Majestys Government of !e"a#
)hri P"rna !ahad"r Nhad%a
Minister of %ommer&e
4ho* havin' e-&han'ed their f/## "o.ers* and fo/nd them 'ood and in d/e form*
have a'reed as fo##o.s5
ARTICLE I
The %ontra&tin' (arties sha## a&&ord to 6traffi&1in1transit7 freedom
of transit a&ross their res"e&tive territories thro/'h ro/tes m/t/a##y
a'reed /"on8 !o distin&tion sha## ,e made .hi&h is ,ased on f#a'
of vesse#s* the "#a&es of ori'in* de"art/re* entry* e-it* destination*
o.nershi" of 'oods or vesse#s8
21
ARTICLE II
$a) 9a&h %ontra&tin' (arty sha## have the ri'ht to ta2e a## indis"ensa,#e
meas/res to ens/re that s/&h freedom* a&&orded ,y it on its territory*
does not in any .ay infrin'e its #e'itimate interests of any 2ind8
$,) !othin' in this Treaty sha## "revent either %ontra&tin' (arty from
ta2in' any meas/res .hi&h may ,e ne&essary for the "rote&tion of
its essentia# se&/rity interests8
ARTICLE III
The term 6traffi&1in1transit7 means the "assa'e of 'oods* in&#/din'
/na&&om"anied ,a''a'e* a&ross the territory of a %ontra&tin' (arty .hen
the "assa'e is a "ortion of a &om"#ete jo/rney .hi&h ,e'ins or terminates
.ithin the territory of the other %ontra&tin' (arty8 The transshi"ment*
.areho/sin'* ,rea2in' ,/#2 and &han'e in the mode of trans"ort of s/&h
'oods as .e## as the assem,#y* dis1assem,#y or re1assem,#y of ma&hinery
and ,/#2y 'oods sha## not render the "assa'e of 'oods o/tside the
definition of 6traffi&1in1transit7 "rovided any s/&h o"eration is /nderta2en
so#e#y for the &onvenien&e of trans"ortation8 !othin' in this +rti&#e sha##
,e &onstr/ed as im"osin' an o,#i'ation on either %ontra&tin' (arty to
esta,#ish or "ermit the esta,#ishment of "ermanent fa&i#ities on its territory
for s/&h assem,#y* dis1assem,#y or re1assem,#y8
ARTICLE IV
Traffi&1in1transit sha## ,e e-em"t from &/stoms d/ties and from a##
transit d/ties or other &har'es* e-&e"t reasona,#e &har'es for trans"ortation
and s/&h other &har'es* as are &ommens/rate .ith the &osts of servi&es
rendered in res"e&t of s/&h transit8
ARTICLE V
3or &onvenien&e of traffi&1in1transit* the %ontra&tin' (arties a'ree
to "rovide at "oint or "oints of entry or e-it* on s/&h terms as may ,e
m/t/a##y a'reed /"on and s/,je&t to re#evant #a.s and re'/#ations
"revai#in' in either &o/ntry* .areho/se or sheds* for the stora'e of traffi&1
in1transit a.aitin' &/stoms &#earan&e ,efore on.ard transmission8
22
ARTICLE VI
Traffi&1in1transit sha## ,e s/,je&t to the "ro&ed/re #aid do.n in the
(roto&o# hereto anne-ed and as modified ,y m/t/a# a'reement8 9-&e"t in
&ases of fai#/re to &om"#y .ith the "ro&ed/re "res&ri,ed* s/&h traffi&1in1
transit sha## not ,e s/,je&t to avoida,#e de#ays or restri&tions8
ARTICLE VII
In order to enjoy the freedom of the hi'h seas* mer&hant shi"s
sai#in' /nder the f#a' of !e"a# sha## ,e a&&orded* s/,je&t to Indian #a.s
and re'/#ations* treatment no #ess favo/ra,#e than that a&&orded to shi"s
of any other forei'n &o/ntry in res"e&t of matters re#atin' to navi'ation*
entry into and de"art/re from the "orts* /se of "orts and har,o/r fa&i#ities*
as .e## as #oadin' and /n#oadin' d/es* ta-es and other #evies* e-&e"t that
the "rovisions of this +rti&#e sha## not e-tend to &oasta# trade8
ARTICLE VIII
!ot.ithstandin' the fore'oin' "rovisions* either %ontra&tin' (arty
may maintain or introd/&e s/&h meas/res or restri&tions as are ne&essary
for the "/r"ose of 5
i) (rote&tin' "/,#i& mora#s:
ii) (rote&tin' h/man* anima# and "#ant #ife:
iii) ;afe'/ardin' of nationa# treas/res:
iv) ;afe'/ardin' the im"#ementation of #a.s re#atin' to the
im"ort and e-"ort of 'o#d and si#ver ,/##ion: and
v) ;afe'/ardin' s/&h other interests as may ,e m/t/a##y
a'reed /"on
ARTICLE IX
!othin' in this Treaty sha## "revent either %ontra&tin' (arty from
ta2in' any meas/res .hi&h may ,e ne&essary in "/rs/an&e of 'enera#
internationa# &onventions* .hether a#ready in e-isten&e or &on&#/ded
hereafter* to .hi&h it is a "arty* re#atin' to transit* e-"ort or im"ort of
"arti&/#ar 2inds of arti&#es s/&h as nar&oti&s and "sy&hotro"i& s/,stan&es
or in "/rs/an&e of 'enera# &onventions intended to "revent
infrin'ement of ind/stria#* #iterary or artisti& "ro"erty or re#atin' to fa#se
mar2s* fa#se indi&ations of ori'in or other methods of /nfair &om"etition8
23
ARTICLE X
In order to fa&i#itate effe&tive and harmonio/s im"#ementation of
this Treaty the %ontra&tin' (arties sha## &ons/#t ea&h other re'/#ar#y8
ARTICLE XI

The reva#idated and modified Treaty sha## enter into for&e on the
6
th
<an/ary* 19998 It sha## remain in for&e /"to the 5
th
<an/ary* 2006 and
sha##* thereafter* ,e a/tomati&a##y e-tended for a f/rther "eriod of seven
$7) years at a time* /n#ess either of the "arties 'ives to the other a .ritten
noti&e* si- months in advan&e* of its intention to terminate the Treaty
"rovided f/rther that the moda#ities* ro/tes* &onditions of transit and
&/stoms arran'ement* as &ontained in the (roto&o# and Memorand/m to
the Treaty sha## ,e revie.ed and modified ,y the %ontra&tin' (arties every
seven years* or ear#ier if .arranted* to meet the &han'in' &onditions ,efore
the a/tomati& rene.a# and s/&h modifi&ations sha## ,e deemed to ,e the
inte'ra# "art of the Treaty8
This Treaty may ,e amended or modified ,y m/t/a# &onsent of the
%ontra&tin' (arties8
=one at >athmand/ on 5
th
<an/ary* 19998
(RAMAKRISHNA HEGDE)
Minister of %ommer&e
3or the Government of India
(PURNA BAHADUR KHADKA)
Minister of %ommer&e
for His Majestys Government of !e"a#
24
PROTOCOL
TO THE TREATY OF TRANSIT
BETWEEN
INDIA AND NEPAL
With Referene t! Arti"e V
18 The fo##o.in' .areho/ses* sheds and o"en s"a&e* or s/&h other .areho/ses*
sheds and o"en s"a&e as the tr/stees of the (ort of %a#&/tta may offer in #ie/
thereof* sha## ,e made avai#a,#e for the stora'e of transit &ar'o $other than
ha?ardo/s 'oods) meant for transit to and from !e"a# thro/'h India in
a&&ordan&e .ith the "ro&ed/re &ontained in the Memorand/m to the
(roto&o#5
$i) %@A909= +%%@MM@=+TI@!
Q/ )hed Nidderpore
5oc%s
$in&#/din' B+ +nne-)
1 1 %overin' a""ro-imate#y
3135 sC8 metres
;hed !o8 27#
>idder"ore
1 1 %overin' a""ro-imate#y
3700 sC8 metres
%a#&/tta <etty
;hed !o8 8
1 Gro/nd 3#oor
$ii) @(9! ;(+%9
@"en #and at %ir&/#ar
Garden 0ea&h 0oad
1 %overin'
a""ro-imate#y
4972 sC8 metres
0esidentia# &/m offi&e
#and s"a&e at Ha#dia
1 %overin' a""ro-imate#y
2000800 sC8 metres
@"en #and s"a&e at
Ha#dia do&2 interior
?one
1 %overin' a""ro-imate#y
6985800 sC8 metres
28 The a,ove stora'e fa&i#ities sha## ,e 'iven on #ease ,y the Tr/stees of the (ort
of %a#&/tta $hereinafter referred to as the Tr/stees) to an /nderta2in'
in&or"orated in a&&ordan&e .ith the re#evant Indian #a.s and desi'nated ,y
25
His Majestys Government of !e"a# for this "/r"ose $hereinafter referred to
as the Dessee)
38 The terms of the #eases to ,e entered into ,et.een the Tr/stees and the
BDessee sha## &onform to the BDon'1term Dease1Godo.n and B%ommer&ia#
Dease1Dand Don'1term of the Tr/stees8 The #eases .i## ,e for t.enty1five
years8
48 >idder"ore =o&2s ,erth !o8 27 sha## ,e assi'ned ,y %a#&/tta (ort Tr/st as a
"referentia# ,erth to the #essee on s/&h terms as a'reed /"on from time to
time to ;hi""in' Dines of India if s/&h a #ease is fina#ised .ithin si- months
of the rene.a# si'nin' of the Treaty8 If* ho.ever* this o"tion is not e-er&ised
.ithin this "eriod* &harter vesse#s &arryin' Traffi&1in1transit of !e"a# may ,e
assi'ned to 27 >8(8=8 ,erth on a "riority ,asis* to the e-tent "ossi,#e8
58 The #ease rent sha## ,e determined in a&&ordan&e .ith the ;&hed/#es of 0ent
%har'es as determined ,y the Tr/stees1in1meetin' from time to time8
68 The transit &ar'o sha## ,e s/,je&t to the #evy of a## &har'es ,y the Tr/stees in
a&&ordan&e .ith their ;&hed/#e of %har'es in for&e from time to time8
78 The Dessee .o/#d ,e "ermitted to o.n E or o"erate a n/m,er of tr/&2s and
,ar'es in the (ort +rea in &onne&tion .ith the stora'e of &ar'o in transit in
the said areas* s/,je&t to &om"#ian&e .ith the norma# r/#es and re'/#ations
a""#i&a,#e to tr/&2s and ,ar'es "#yin' in the (ort +rea8
88 The %ommissioner of %/stoms* %a#&/tta* in a&&ordan&e .ith the re#evant
"rovisions of the #a.s and re'/#ations* .i## "rovide the #essee for a &/stoms
ho/se a'ents #i&en&e for the &#earan&e at the (ort of %a#&/tta of Traffi&1in1
transit from and to !e"a#8 If a #i&en&e is a#so reC/ired from the (ort of
%a#&/tta for this .or2* %a#&/tta (ort Tr/st .i## "rovide s/&h #i&en&e in
a&&ordan&e .ith the re#evant "rovisions of their ,ye1#a.sEre'/#ations8
98 The o.ner of 'oods or the #essee* if a/thorised ,y o.ner* may /nder the
s/"ervision of the "ro"er offi&er of the Indian %/stoms5
$i) Ins"e&t the 'oods:
$ii) ;e"arate dama'ed or deteriorated 'oods from the rest:
$iii) ;ort the 'oods or &han'e their &ontainers for the "/r"ose of
"reservation for on.ard transmission:
$iv) =ea# .ith the 'oods and their &ontainers in s/&h a manner as
may ,e ne&essary to "revent #oss or deterioration or dama'e
to the 'oods:
26
108 The .areho/ses sha## f/n&tion d/rin' the norma# .or2in' ho/rs /nder the
s/"ervision of offi&ers to ,e "rovided ,y the %a#&/tta %/stoms Ho/se8
4here* ho.ever* s/&h f/n&tionin' is ne&essary o/tside the offi&e ho/rs*
offi&ers for s/"ervision .i## ,e "rovided ,y the said %/stoms Ho/se on
"ayment of the "res&ri,ed fees8
II$ With Referene t! Arti"e VI
18 Traffi& in transit via %a#&/tta sha##5 1
$i) "ass on#y thro/'h one of the m/t/a##y a'reed ro/tes &onne&tin' the
fo##o.in' entry E e-it "oints5
$a) %a#&/tta ;/2hia (o2hri
$,) %a#&/tta !a-a#,ari $(anitan2i)
$&) %a#&/tta Ga#'a#ia
$d) %a#&/tta <o',ani
$e) %a#&/tta Fhimna'ar
$f) %a#&/tta <ayana'ar
$') %a#&/tta Fhitamore $;itamarhi)
$h) %a#&/tta 0a-a/#
$i) %a#&/tta !a/tan.a $;ona/#i)
$j) %a#&/tta Farhni
$2) %a#&/tta <ar.a
$#) %a#&/tta !e"a#'/nj 0oad
$m) %a#&/tta Ti2onia
$n) %a#&/tta Ga/ri1(hanta
$o) %a#&/tta Fan,asa
!ote5 %a#&/tta sha## in&#/de Ha#dia8
(rovided that5
a) these ro/tes may ,e dis&ontin/ed or ne. ones added ,y m/t/a# a'reement:
,) the Traffi&1in1Transit sha## ,e a##o.ed to move thro/'h a#ternative roads .ith
"rior "ermission of the nearest Indian &/stoms @ffi&er* not ,e#o. the ran2 of
;/"erintendent* if the s"e&ified roads ,e&ome /nservi&ea,#e E /n/sa,#e d/e
to /nforeseen events: and
$&) ,/#2 traffi&* s/&h as ferti#i?ers* &ement* et&8 movin' ,y rai# sha## "ass thro/'h
%a#&/tta 10a-a/# ro/te or any other a'reed ro/te* s/,je&t to "rior intimation
,ein' 'iven to %/stoms as and .hen s/&h movements are anti&i"ated*
$ii) %om"#y .ith the "ro&ed/re as set o/t in the memorand/m anne-ed hereto:
and
27
$iii) %om"#y .ith any other detai#ed re'/#ations* .hi&h may ,e "res&ri,ed
thro/'h m/t/a# &ons/#tation ,y the %ontra&tin' (arties in 2ee"in' .ith the
nat/re of the &ommodity and the need for e-"editio/s movement and the
safety of trans"ort8
28 4herever en1ro/te it ,e&omes ne&essary to ,rea2 ,/#2 in res"e&t of
&onsi'nments in transit* s/&h ,rea2in' sha## ,e done on#y /nder the
s/"ervision of the a""ro"riate offi&ia#s of the Indian %/stoms8
:* /ll goods intended for removal in transit to Nepal $hile in the
process of removal to or from the $areho"ses or other
storage places that may #e leased o"t in Calc"tta Port for
the storage of s"ch goods and also $hile in storage or "nder
the process of pac%ing sorting and separation etc* in s"ch
$areho"ses or places shall #e s"#ject to relevant Indian
la$s and reg"lations*

48 The "ro&ed/re in the fore'oin' s/,1"ara'ra"hs sha## a""#y m/tatis m/tandis to
road trans"ort .ith the fo##o.in' modifi&ations5
$a) +rms* amm/nition and ha?ardo/s &ar'o sha## not ,e a##o.ed to ,e
trans"orted ,y road
!@T95
18 4ith referen&e to ha?ardo/s &ar'o* e-&e"tion &o/#d ,e
"ermitted as sha## ,e m/t/a##y a'reed8
28 (etro#e/m "rod/&ts* &hemi&a# ferti#i?ers and ind/stria# a#&oho#
sha## ,e a##o.ed* as e-&e"tions in terms of !ote 1 a,ove* to ,e
trans"orted ,y road* s/,je&t to &om"#ian&e .ith the fire* safety
and other stat/tory reC/irements$

$,) ;ensitive 'oods for im"orts* as s"e&ified ,y the Government of India from
time to time* .ith "rior intimation to His Majestys Government of !e"a#
sha## ,e "ermitted transit ,y marine &ontainer E "i#fer1"roof &ontainer
tr/&2s or rai# at the o"tion of the !e"a#ese im"orter8
$&) F/#2 &ar'o s/&h as ,o/#ders* ferti#i?er* &ement* ve'eta,#e and fr/its sha##
,e "ermitted ,y o"en tr/&2s a#so8
$d) Goods other than those mentioned at $a)* $,) and $&) a,ove sha## ,e
"ermitted transit ,y rai#.ay .a'ons or marine &ontainers or "i#fer1"roof
28
&ontainer tr/&2s or any other tr/&2s* &a"a,#e of ,ein' sea#ed in a manner
that .i## #eave no visi,#e tra&es of tam"erin'* at the o"tion of the im"orter8
29
$e) (i#fer1"roof &ontainer tr/&2 sha## &onform to s"e&ifi&ations m/t/a##y
a'reed /"on and sha## ,e &a"a,#e of ,ein' #o&2ed and sea#ed8 The
&ontainers sha## ,e #o&2ed and sea#ed ,y the Indian %/stoms8
$f) Individ/a# "a&2a'es sha## ,e sea#ed ,y Indian %/stoms "rovided that5
$i) ;ea#in' of individ/a# "a&2a'es may ,e dis"ensed .ith .hen
they are im"orted "a&2ed in re&o'nised &ontainers* "rovided
the entire &ontents of the &ontainer are &onsi'ned to the same
"erson and the &ontainer is sea#ed and the "rovision of s/,1
"ara'ra"h $e) a,ove is &om"#ied .ith:
$ii) ;ea#in' of individ/a# "a&2a'es may a#so ,e dis"ensed .ith
.hen &onsi'nments &onsi'ned to different &onsi'nees are
im"orted "a&2ed in one sin'#e re&o'nised &ontainer* "rovided
the entire &ontents of the &ontainer are trans"orted in one
sin'#e sea#ed &ontainer $not tr/&2s) and the "rovision of s/,1
"ara'ra"h $e) a,ove is &om"i#ed .ith8
$') If the tr/&2 ,rea2s do.n* the nearest &/stoms offi&er sha## ,e
a""roa&hed .ith #east "ossi,#e de#ay8
$h) The %ontra&tin' (arties may m/t/a##y a'ree to any other
modifi&ations that may ,e &onsidered ne&essary from time to time8
58 0es"e&tin' ea&h others re#evant #a.s* it is a'reed that the %ontra&tin' (arties
.i## ta2e a## ste"s to "revent def#e&tion of their m/t/a# trade to third &o/ntries
and to ens/re &om"#ian&e .ith the "ro&ed/re for the transit of 'oods a&ross
their territories8
68 In order to fa&i#itate the movement of traffi&1in1transit* additiona# means of
trans"ort and fa&i#ities* m/t/a##y a'reed /"on* may ,e added8
30
MEMORANDUM TO THE PROTOCOL TO THE
TREATY OF TRANSIT BETWEEN INDIA
AND NEPAL
In p"rs"ance of and s"#ject to the provisions of the Protocol to
the Treaty of Transit His Majestys Government of Nepal and the
Government of India agree that the follo$ing detailed proced"re shall
apply to tra1c0in0transit,
IMPORT PROCED%RE
+hen goods are imported from third co"ntries #y Nepal in transit
thro"gh India the follo$ing proced"re shall #e o#served, 0
18 $a) Transit of !e"a#ese im"orts* sha## ,e a##o.ed a'ainst im"ort
#i&en&es iss/ed ,y His Majestys Government of !e"a# .herever s/&h
#i&en&es are iss/ed* and #etters of &redit o"ened thro/'h a &ommer&ia#
,an2 in !e"a#8
$,) In &ase of !e"a#ese im"orts for .hi&h there is no reC/irement of
im"ort #i&en&e or #etter of &redit* the 0oya# !e"a#ese %ons/# Genera#*
=e"/ty %ons/# Genera# or %ons/# at %a#&/tta sha## f/rnish the fo##o.in'
&ertifi&ate on the %/stoms Transit =e&#aration5
6I have verified that the 'oods s"e&ified in this =e&#aration and of the
C/antity and va#/e s"e&ified herein have ,een "ermitted to ,e im"orted ,y
His Majestys Government of !e"a# .itho/t the reC/irement of im"ort
#i&en&e or #etter of &redit87
Signature & Seal
NOTE& His Majestys Government of !e"a# sha## arran'e to s/""#y
thro/'h the Indian 9m,assy at >athmand/ or dire&t#y to the
%ommissioner of %/stoms* %a#&/tta* the s"e&imen si'nat/re
or si'nat/res of offi&ia# or offi&ia#s .ho are a/thorised to si'n
im"ort #i&enses iss/ed ,y His Majestys Government of !e"a#8
It sha## a#so arran'e to have a &o"y ea&h of the im"ort
#i&en&es* .herever s/&h #i&enses are iss/ed ,y it for s/&h
'oods* sent dire&t#y to the %ommissioner of %/stoms*
%a#&/tta8
31
;* /t the Indian port of entry (hereinafter called the C"stom Ho"se)
the importer or his agent (hereinafter referred to as the importer) shall
present a C"stoms Transit 5eclaration containing the follo$ing
partic"lars,
$a) !ame of the shi"* 0otation n/m,er and
Dine n/m,er*
$,) !ame and address of the im"orter*
$&) !/m,er* des&ri"tion* mar2s and seria#
n/m,ers of the "a&2a'es*
$d) %o/ntry of &onsi'nment and &o/ntry of
ori'in* if different*
$e) =es&ri"tion of 'oods*
$f) G/antity of 'oods*
$') Aa#/e of 'oods*
$h) Im"ort #i&en&e n/m,er and date*
$i) Detter of &redit n/m,er* date and name and
address of iss/in' ,an2
$j) 0o/te of transit $one of the m/t/a##y
a'reed ro/tes): and
$2) + de&#aration at the end in the fo##o.in'
.ords51
6I E4e de&#are that the 'oods entered herein are for !e"a#* in transit
thro/'h India and sha## not ,e diverted en1ro/te to India* or retained in
India8
I E4e de&#are that a## the entries made herein a,ove are tr/e and &orre&t to
the ,est of myEo/r 2no.#ed'e and ,e#ief87
;i'nat/re
38 The %/stoms Transit =e&#aration sha## ,e made in se-t/"#i&ate8 +## &o"ies a#on'
.ith the ,i## of #adin'* invoi&e* "a&2in' #ist and a &o"y of the im"ort #i&en&e
iss/ed ,y His Majestys Government of !e"a#* .herever iss/ed* and a &o"y of the
#etter of &redit* a/thenti&ated ,y the 0oya# !e"a#ese %ons/#ate in %a#&/tta or the
iss/in' ,an2* sha## ,e "resented to the %/stom Ho/se8 The &o"y of the im"ort
#i&en&e and the #etter of &redit so "resented sha## ,e e-amined ,y the %/stom
Ho/se a'ainst the &o"y of the im"ort #i&en&e andEor the statement of "arti&/#ars of
the #etter of &redit re&eived dire&t#y from His Majestys Government of !e"a#8 !o
other additiona# do&/ment may ,e as2ed for* e-&e"t .here &onsidered ne&essary
for &#earan&e of s"e&ifi& 'oods8
32
A* Nepalese imports shall #e removed to Nepal sheds $ithin
free time if not already p"t in $agons or tr"c%s* /n
a"thorisation $ith removal instr"ctions of the o$ner for the
p"rpose shall #e necessary for removal*
58 a) In res"e&t of &ontainerised &ar'o* the fo##o.in' e-amination "ro&ed/re
sha## ,e fo##o.ed5
i) @n arriva# of the !e"a#ese &ontainerised &ar'o* the Indian
&/stoms offi&er "osted at the sea"ort* sha## mere#y &he&2
the Bone1time1#o&2 of the &ontainer "/t on ,y the shi""in'
a'ent or the &arrier a/thorised ,y the shi""in' &om"any8 If
fo/nd inta&t* the &/stoms offi&er sha## a##o. trans"ortation
of the &ontainerised &ar'o* .itho/t e-amination* /n#ess
there are va#id reasons to do other.ise8
ii) In &ase .here the Bone1time1#o&2 on the &ontainer
arrivin' at the sea"ort in India is fo/nd ,ro2en or
defe&tive* the Indian &/stoms a/thorities sha## ma2e d/e
verifi&ation of the 'oods to &he&2 .hether the same are in
a&&ordan&e .ith the %/stoms Transit =e&#aration* "/t
fresh Bone1time1#o&2 and a##o. the &ontainer to move to
the destination8 The seria# n/m,er of the ne. Bone1time1
#o&2 sha## ,e endorsed in the %/stoms Transit
=e&#aration8
,) In res"e&t of non1&ontainerised &ar'o* the %/stom Ho/se sha## ma2e a
se#e&tive "er&enta'e e-amination of the 'oods to &he&2 .hether the 'oods are
in a&&ordan&e .ith the %/stoms Transit =e&#aration and &onform to the
im"ort #i&en&e* .herever s/&h #i&en&e is iss/ed* and the #etter of &redit8
Goods for !e"a# as &overed ,y the said #i&en&e andEor the said #etter of &redit
and a#so in a&&ordan&e .ith the %/stoms Transit =e&#aration sha## ,e
a""roved for on.ard transmission8 Ho.ever* in ma2in' s/&h e-amination*
avoida,#e de#ays sha## ,e &/rtai#ed to the /tmost in order to e-"edite the
traffi&1in1transit8
!@T95 The se#e&tive "er&enta'e e-amination referred to in s/,1"ara'ra"h
5$,) sha## mean that a "er&enta'e of the tota# "a&2a'es in a
&onsi'nment .i## ,e se#e&ted for e-amination and not that a
"er&enta'e of the &ontents of ea&h of the "a&2a'e &om"rised in the
&onsi'nment .i## ,e e-amined8
68 Goods sha## ,e trans"orted from the &/stoms "ort of entry to the ,order #and
&/stoms station ,y the means of the trans"ort "rovided in s/,1"ara'ra"hs $a)* $,)*
$&) and $d) of "ara'ra"h 4 of the (roto&o# .ith referen&e to +rti&#e AI of the Treaty
of Transit and sha## ,e #o&2ed and sea#ed in the manner "rovided in s/,1"ara'ra"h
33
$e) of "ara'ra"h 4 of the (roto&o# .ith referen&e to +rti&#e AI of the Treaty of
Transit after e-amination as mentioned a,ove8
78 4here 'oods &annot ,e trans"orted in &#osed .a'ons or "i#fer1"roof &ontainer
tr/&2s or sea#ed tar"a/#in &overed tr/&2s and have to ,e trans"orted in o"en
.a'ons or f#ats or o"en tr/&2s* detai#ed identifyin' "arti&/#ars sha## ,e re&orded in
the %/stoms Transit =e&#aration8
88 ;ma## &onsi'nments of traffi&1in1transit .i## ,e a&&e"ted for ,oo2in' ,y rai#.ay
from one of the a'reed .areho/ses #eased to !e"a# Transit and 4areho/sin'
%om"any Dtd8 "rovided the minim/m #oad &ondition as a""#i&a,#e in Indian
0ai#.ays is satisfied8
9* The sensitive goods as speci&ed #y the Government of
India from time to time $ith prior intimation to His Majestys
Government of Nepal shall #e covered #y an ins"rance
policy or a #an% g"arantee and?or s"ch legally #inding
"nderta%ing to the satisfaction of the Commissioner of
C"stoms Calc"tta in the manner indicated #elo$,0
a) Goods movin' ,y rai# /" to the ,order sha## ,e &overed ,y an
ins/ran&e "o#i&y or a ,an2 '/arantee* at the o"tion of the im"orter* for an
amo/nt eC/a# to the Indian &/stoms d/ties on s/&h 'oods8 This ins/ran&e
"o#i&y or ,an2 '/arantee sha## ,e assi'ned to the %ommissioner of
%/stoms* %a#&/tta* and the amo/nt sha## ,e&ome "aya,#e to the
%ommissioner in the event of the 'oods not rea&hin' !e"a#8
$,) Goods movin' ,y road in tr/&2s ,e#on'in' to !e"a# Transit H
4areho/sin' %om"any Dtd8* or !e"a# Trans"ort %or"oration sha## ,e
&overed ,y an ins/ran&e "o#i&y or a ,an2 '/arantee* at the o"tion of the
im"orter* for an amo/nt eC/a# to the Indian &/stoms d/ties on s/&h 'oods8
This ins/ran&e "o#i&y or ,an2 '/arantee sha## ,e assi'ned to the
%ommissioner of %/stoms* %a#&/tta* and the amo/nt sha## ,e&ome
"aya,#e to the %ommissioner in the event of the 'oods not rea&hin' !e"a#8
In addition* !e"a# Transit and 4areho/sin' %om"any Dtd8* or the !e"a#
Trans"ort %or"oration* as the &ase may ,e* sha## 'ive an /nderta2in' to
the said %ommissioner of %/stoms* %a#&/tta* to "ay the differen&e
,et.een the mar2et va#/e of 'oods in India and their &8i8f8 va#/e "#/s
Indian &/stoms d/ties in the event of the 'oods not rea&hin' !e"a#8
$&) Goods movin' ,y road in tr/&2s other than those mentioned at s/,1
"ara'ra"h $,) a,ove sha## ,e &overed ,y an ins/ran&e "o#i&y or a ,an2
'/arantee at the o"tion of the im"orter* for an amo/nt eC/a# to the
differen&e ,et.een the mar2et va#/e of the 'oods in India and their &8i8f8
va#/e8 This ins/ran&e "o#i&y or a ,an2 '/arantee sha## ,e assi'ned to the
%ommissioner of %/stoms* %a#&/tta and the amo/nt sha## ,e&ome "aya,#e
to the said %ommissioner in the event of the 'oods not rea&hin' !e"a#8
34
35
$d) The ins/ran&e "o#i&y sha## ,e o,tained ,y the im"orter from an
ins/ran&e &om"any a/thorised to do ,/siness in India on s/&h terms and
&onditions* to the satisfa&tion of the %ommissioner of %/stoms* %a#&/tta*
.hi&h .o/#d '/arantee that the ins/red amo/nt sha## ,e&ome "aya,#e
forth.ith to the Government of India on re&ei"t of a noti&e to the
ins/ran&e &om"any from the %ommissioner of %/stoms* %a#&/tta* after
satisfyin' himse#f that the 'oods have not entered !e"a#8
NMT6,
8* In respect of goods #elonging and consigned to His
Majestys Government of Nepal "nder s"#0paragraphs (a)
and (#) a#ove no ins"rance or #an% g"arantee shall #e
re."ired provided an "nderta%ing or a f"rther
"nderta%ing as the case may #e is given #y Nepal
Transit and +areho"sing Company @td* or the Nepal
Transport Corporation in lie" thereof*
28 !o s/&h reC/irement .i## ,e ne&essary in res"e&t of 'oods &arried
,y air .itho/t transshi"ment en1ro/te or in s/&h &ases as may ,e
m/t/a##y a'reed /"on8
38 In the event of 'oods &arried ,y rai# not rea&hin' the ,oo2ed
destination* Indian 0ai#.ays sha##* .here #ia,#e as &arriers /nder
the Indian 0ai#.ays +&t* "ay the &8i8f8 "ri&e to the im"orter8
48 4hen the %/stoms Transit =e&#aration* d/#y a/thenti&ated* ,oth
,y the ,order #and &/stoms stations in India and !e"a#* is re&eived
at the entry "ort .ithin the "res&ri,ed "eriod* it .i## ,e a&&e"ted as
an eviden&e that 'oods have rea&hed !e"a#8
58 The .ords 6Indian &/stoms d/ties7 .herever it a""ears in the
Treaty* (roto&o# and Memorand/m .o/#d mean s/&h d/ties as are
#evied on im"ort of 'oods into India8
9(/)* (or goods other than those speci&ed as sensitive #y the
Government of India in terms of paragraph 9 a#ove the importer
shall f"rnish to the satisfaction of Commissioner of C"stoms
Calc"tta a legally0#inding "nderta%ing that the amo"nt e."al to
the di2erence #et$een the mar%et val"e of the goods in India
and their C*I*( val"e shall #e paid on demand to the
Commissioner of C"stoms Calc"tta in the event of the goods
not reaching Nepal*
36
9(!)* The Commissioner of C"stoms Calc"tta shall provide to the
concerned 5epartment of His Majestys Government of
Nepal from time to time details of cases $here the goods
incl"ding those goods $hich have not #een ins"red do not
appear to have crossed into Nepal* His Majestys
Government of Nepal shall there"pon carry o"t en."iries
and ma%e all possi#le e2orts to ens"re that the concerned
persons pay the d"es to Government of India*
8<* /fter the C"stom Ho"se is satis&ed as regards the
chec%s contemplated in the preceding paragraphs it shall
endorse all the copies of the C"stoms Transit 5eclaration*
The original copy shall #e handed over to the importer* The
d"plicate and triplicate $ill #e sent #y post to the Indian
#order c"stoms o1cer and the remaining copies shall #e
retained #y the C"stom Ho"se* In order to avoid delay in
postal transmission d"plicate and triplicate copies of the
C"stoms Transit 5eclaration along $ith copy of the original
rail$ay receipt shall #e handed over to the importer or his
a"thorised representative in a sealed cover if he so desires*
This facility shall ho$ever #e denied to the importer $ho
defa"lts in the prod"ction of these doc"ments $ithin a
reasona#le time to the Indian #order c"stoms o1cer*
88* In case of any s"spicion of pilferages tra1c0in0transit shall #e
s"#ject to chec%s #y the Indian C"stoms d"ring the period that
they are in transit as may #e necessary partic"larly at the point
of rail$ay transshipment from #road0ga"ge to metre0ga"ge*
128 $a) @n arriva# of the &ontainerised &ar'o at the ,order #and &/stoms
station or at the ,order rai#.ay station* as the &ase may ,e* the fo##o.in'
e-amination "ro&ed/re .i## ,e fo##o.ed5
i) @n arriva# of the !e"a#ese &ontainerised &ar'o* the Indian &/stoms
a/thorities "osted at the #and &/stoms station or the rai#.ay station sha##
mere#y &he&2 the Bone1time1#o&2 of the &ontainer "/t on ,y the shi""in'
a'ent or the &arrier a/thorised ,y the shi""in' &om"any or the %/stoms
a/thorities at the sea "ort or d/rin' the transit and* if fo/nd inta&t* sha##
a""rove for on.ard transmission of the &ontainerised &ar'o* .itho/t
e-amination of the &ar'o /n#ess there are va#id reasons to do other.ise8
ii) In &ase .here the Bone1time1#o&2 of the &ontainer is fo/nd ,ro2en or
defe&tive* the Indian &/stoms a/thorities "osted at the #and &/stoms station
or the rai#.ay station* as the &ase may ,e* sha## ma2e d/e verifi&ation of the
37
'oods to &he&2 .hether the 'oods are in a&&ordan&e .ith the &/stoms
Transit =e&#aration and &onform to the im"ort #i&en&e* .herever s/&h
#i&en&e is iss/ed* and the #etter of &redit8
iii) If* on verifi&ation* the 'oods are fo/nd in a&&ordan&e .ith the %/stoms
Transit =e&#aration and &onform to the im"ort #i&en&e* .herever s/&h
#i&en&e is iss/ed* and the #etter of &redit* the Indian &/stoms a/thorities
"osted at the ,order #and &/stoms station or the rai#.ay station sha## "/t
fresh Bone1time1#o&2 and a""rove for on.ard transmission of the &ontainer8
The seria# n/m,er of the ne. Bone1time1#o&2 sha## ,e endorsed ,y the
Indian &/stoms a/thorities "osted at the ,order #and &/stoms station or the
rai#.ay station on the %/stoms Transit =e&#aration8
$,) @n arriva# of the non1&ontainerised &ar'o at the ,order #and &/stoms station or at
the ,order rai#.ay station* as the &ase may ,e* the fo##o.in' e-amination
"ro&ed/re .i## ,e fo##o.ed5
i) The sea#ed rai#.ay .a'ons or the sea#ed marine &ontainers or the sea#ed
"i#fer1"roof &ontainerised tr/&2s or the sea#ed tar"a/#in &overed tr/&2s* as
the &ase may ,e* sha## ,e "resented to the Indian &/stoms a/thorities "osted
at the ,order #and &/stoms station or the rai#.ay station* .ho sha## e-amine
the sea#s and #o&2s and* if satisfied* sha## "ermit on.ard transmission* or the
/n#oadin' or ,rea2in' of ,/#2* as the &ase may ,e* .itho/t e-amination of
the &ar'o* /n#ess there are va#id reasons to do other.ise8
ii) In &ases .here sea#s and #o&2s on the .a'ons or on the marine &ontainers
or on the "i#fer1"roof &ontainerised tr/&2s or on the tar"a/#in &overed tr/&2s
or on the "a&2a'es are fo/nd ,ro2en or defe&tive* or there is s/s"i&ion
other.ise* the Indian &/stoms a/thorities "osted at the ,order #and &/stoms
station or the rai#.ay station* as the &ase may ,e* sha## e-amine the 'oods to
&he&2 .hether the 'oods are in a&&ordan&e .ith the %/stoms Transit
=e&#aration and &onform to the im"ort #i&en&e* .herever s/&h #i&en&e is
iss/ed* and the #etter of &redit8 Goods for !e"a#* as &overed ,y the said
#i&en&e* .herever s/&h #i&en&e is iss/ed* and the said #etter of &redit and a#so
in a&&ordan&e .ith the %/stoms Transit =e&#aration sha## ,e a""roved for
on.ard transmission thro/'h s/&h es&orts or s/"ervision as may ,e
ne&essary to ens/re that the 'oods &ross the ,order and rea&h !e"a#8
Ho.ever* in ma2in' s/&h e-amination* avoida,#e de#ays sha## ,e &/rtai#ed
to the /tmost in order to e-"edite the traffi&1in1transit8
$&) @n arriva# of the traffi&1in1transit in o"en tr/&2s* or o"en rai#.ay .a'ons* the
Indian &/stoms a/thorities at the ,order #and &/stoms station sha## &arry o/t s/&h
se#e&tive "er&enta'e e-amination as is deemed ne&essary to ens/re that 'oods are
in a&&ordan&e .ith the %/stoms Transit =e&#aration and &onform to im"ort
#i&en&e* .herever s/&h im"ort #i&en&e is iss/ed* and the #etter of &redit8
12+8 @n arriva# of traffi&1in1transit mentioned at s/,1"ara'ra"hs $a)* $,) and $&) a,ove
at the ,order #and &/stoms station or at the ,order rai#.ay station* as the &ase may
,e* the im"orter sha## "resent the ori'ina# &o"y of the %/stoms Transit =e&#aration
38
d/#y endorsed ,y the Indian %/stom Ho/se of entry* to the Indian &/stoms offi&er
at the ,order #and &/stoms station* .ho sha## &om"are the ori'ina# &o"y .ith the
d/"#i&ate and tri"#i&ate re&eived ,y him and .i##* after satisfyin' himse#f as
re'ards the &he&2s &ontem"#ated at s/,1"ara'ra"hs $a)* $,) and $&) a,ove* endorse
a## the &o"ies of the %/stoms Transit =e&#aration8 The 'oods in transit sha## ,e
a##o.ed on.ard movement ,y road or ,y rai#* as the &ase may ,e* on#y after
&#earan&e as a,ove ,y the Indian &/stoms offi&er at the #and &/stoms station or the
rai#.ay station8 The Indian &/stoms offi&er sha##* thereafter* thro/'h s/&h es&orts
or s/"ervision as may ,e ne&essary* ens/re that the 'oods &ross the ,order and
rea&h !e"a#8 He* or in &ases .here there is an Indian &/stoms offi&er "osted ri'ht
at the ,order* .i## &ertify on the &o"ies of the %/stoms Transit =e&#aration that
'oods have &rossed into !e"a#8 The Indian &/stoms offi&er sha## then hand over
the ori'ina# &o"y of the %/stoms Transit =e&#aration to the im"orter* send the
d/"#i&ate to the Indian %/stom Ho/se at the "ort of entry* send the tri"#i&ate to the
!e"a#ese &/stoms offi&er at the &orres"ondin' !e"a#ese "ost and after it is
re&eived ,a&2 d/#y endorsed ,y the !e"a#ese &/stoms offi&er* retain it for his
re&ords8
138 If a &onsi'nment in transit is re&eived at destination in more than one #ot* the
se"arate #ots of the &onsi'nment &overed ,y one %/stoms Transit =e&#aration may
,e "resented in se"arate #ots and the Indian &/stoms offi&er at the ,order sha##
re#ease the 'oods so "resented after ne&essary e-amination and &he&2 of re#evant
do&/ments and 'oods and after ma2in' the ne&essary endorsement8 In s/&h a &ase*
the Indian &/stoms offi&er* at the ,order sha## send the tri"#i&ate &o"y of %/stoms
Transit =e&#aration to the !e"a#ese &/stoms offi&er at the &orres"ondin' !e"a#ese
"ost on#y after re#ease of the entire &onsi'nment as &overed ,y the %/stoms Transit
=e&#aration8
148 In &ases .here the d/"#i&ate and tri"#i&ate &o"ies of the %/stoms Transit
=e&#aration are not re&eived at the &/stoms offi&e of e-it* the Indian &/stoms offi&e
.i##* ,y te#e"honi& or other C/i&2 means of &omm/ni&ation .ith the &/stoms offi&e
of entry* see2 &onfirmation to ens/re a'ainst de#ay and then on the ,asis of
aforesaid &onfirmation a##o. des"at&h of 'oods8
158 The !e"a#ese %/stoms offi&er sha##5
$i) endorse a %ertifi&ate over his si'nat/re and a/thenti&ate it /nder a %/stoms
stam"s on the ori'ina# &o"y of the !e"a#ese Im"ort Di&en&e* if any E Detter of
%redit* and the ori'ina# and the tri"#i&ate &o"y of the %/stoms Transit
=e&#aration that the "a&2a'es &orres"ond in a## materia# res"e&ts .ith the
"arti&/#ars sho.n in the de&#aration and in a## materia# res"e&ts .ith the
"arti&/#ars sho.n in the de&#aration and in a## materia# res"e&ts .ith the
!e"a#ese Im"ort Di&en&e E Detter of %redit .herever reC/ired or o"ened as
the &ase may ,e and that the 'oods have ,een &#eared from the !e"a#ese
%/stoms &/stody for entry into !e"a#8
$ii) hand over* /nder a&2no.#ed'ement* d/#y endorsed ori'ina# &o"y of the
%/stoms Transit =e&#aration to the im"orter .ho .i## "resent it to the Indian
Forder Dand %/stoms ;tation .ithin 15 days of the date on .hi&h transit .as
39
a##o.ed at the Indian "ort of im"ortation or s/&h e-tended time as the
&on&erned +ssistant %ommissioner of Indian %/stoms may a##o.8 3or every
.ee2 or "art thereof de#ay in "resentin' the ori'ina# %/stoms Transit
=e&#aration d/#y &ertified as a,ove the im"orter sha## "ay a s/m of 0e81E1 for
every 0s81*000E1 of the Indian mar2et "ri&e of the 'oods to +ssistant
%ommissioner of %/stoms of the &on&erned Indian Forder Dand %/stoms
;tation8
$iii) send the tri"#i&ate &o"y of the %/stoms Transit =e&#aration d/#y endorsed
dire&t#y to the &on&erned Indian Forder Dand %/stoms ;tation8
$iv) 9ndeavo/r to send a te#e-Efa- &omm/ni&ation on a dai#y ,asis to the
%ommissioner of %/stoms* %a#&/tta 'ivin' the n/m,er and date of %T=s
re&eived ,y him on the day &onfirmin' that the 'oods &overed ,y these %T=s
have ,een re&eived in !e"a#8 The fa-Ete#e- .i## ,e fo##o.ed ,y a "ost &o"y in
&onfirmation8
87* The Indian C"stoms M1cer at the concerned !order @and C"stoms
)tation shall send fa'?tele' comm"nication on a daily #asis to the
Commissioner of C"stoms Calc"tta giving details of the original
copies of the C"stoms Transit 5eclarations received #y them on a
partic"lar day from the importer d"ly endorsed #y the Nepalese
C"stoms /"thorities that the goods have #een received in Nepal*
The fa'?tele' message $ill #e follo$ed #y a post copy in
con&rmation* The Indian !order @and C"stoms )tation $ill also
for$ard the triplicate of the d"ly endorsed copy of the CT5 on a
daily #asis to the Commissioner of C"stoms Calc"tta #y )peed
Post*
EXPORT PROCED%RE&
4hen 'oods from !e"a# are &#eared for e-"ort to third &o/ntries* in transit thro/'h India*
the fo##o.in' "ro&ed/re sha## ,e o,served5
18 The desi'nated offi&er in &har'e of the !e"a#ese &/stoms offi&e at the ,order sha##
f/rnish the fo##o.in' &ertifi&ate on the 6%/stoms Transit =e&#aration75
6I have verified that the 'oods s"e&ified in this =e&#aration and of the C/antity
and va#/e s"e&ified herein have ,een "ermitted to ,e e-"orted /nder Di&en&e
!/m,er88888888888888888888888888888 dated 88888888888888888 8 $.herever iss/ed) and /nder Detter
of &redit !/m,er 88888888888dated 8888888888 iss/ed ,y 88888888888888888$name and address of
the iss/in' ,an2)78
;i'nat/re H ;ea#
40
!ote5 The reC/irement of 'ivin' "arti&/#ars of #etter of &redit in the a,ove
&ertifi&ate .i## not a""#y in the &ase of 'oods for the e-"orts of .hi&h
from !e"a#* no Detter of &redit is reC/ired /nder the #a.s of His
Majestys Government of !e"a#8
41
28 The e-"orter or his a'ent $hereinafter referred to as the e-"orter) sha##
"resent to the Indian &/stoms offi&er at the ,order #and &/stom station
thro/'h .hi&h the 'oods are to enter India* a %/stoms Transit =e&#aration
&ontainin' the fo##o.in' "arti&/#ars5
$a) !ame and address of the e-"orter*
$,) !/m,er* des&ri"tion* mar2s and seria# n/m,ers
of the "a&2a'es*
$&) %o/ntry to .hi&h &onsi'ned*
$d) =es&ri"tion of 'oods*
$e) G/antity of 'oods*
$f) Aa#/e of 'oods*
$') 9-"ort Di&en&e !/m,er8 and date*
$h) %o/ntry of ori'in of the 'oods*
$i) Detter of &redit n/m,er* date and name and
address of iss/in' ,an2*
$j) 0o/te of Transit $one of m/t/a##y a'reed
ro/tes)*
$2) Indian &/stoms offi&e of entry from !e"a#* and
$#) + de&#aration at the end in the fo##o.in'
.ords51
HI ?+e declare that the goods entered herein are of
Nepalese origin are for e'port from Nepal to co"ntries
other than India and shall not #e diverted en0ro"te to
India or retained in India*
I E4e de&#are that a## the entries made therein a,ove are tr/e and &orre&t to
the ,est of myEo/r 2no.#ed'e and ,e#ief87
;i'nat/re
38 The %/stoms Transit =e&#aration sha## ,e made in C/adr/"#i&ate8 +## &o"ies*
a#on' .ith invoi&e* "a&2in' #ist and a &o"y of the #etter of &redit* a/thenti&ated ,y
the &on&erned !e"a#ese ,an2* sha## ,e "resented to the Indian &/stoms offi&er at
the entry "oint8 !o additiona# do&/ments .i## ,e as2ed for ,y the Indian &/stoms*
e-&e"t .hen &onsidered ne&essary for the &#earan&e of any s"e&ifi& 'oods8
42
48 $a) 3or the &ontainerised 'oods* the Indian &/stoms a/thorities at the "oint of entry
into India sha## o,serve the fo##o.in' "ro&ed/res5
$i) @n arriva# of the !e"a#ese &ontainerised &ar'o* the Indian &/stoms offi&er
"osted at ,order #and &/stoms station sha## mere#y &he&2 the Bone1time1#o&2
of the &ontainer "/t on ,y the shi""in' a'ent or the &arrier a/thori?ed ,y the
shi""in' &om"any and if fo/nd inta&t* sha## a##o. trans"ortation of the
&ontainerised &ar'o* .itho/t e-amination* /n#ess there are va#id reasons to
do other.ise8
$ii) In &ase .here the Bone1time1#o&2 on the &ontainer arrivin' at ,order #and
&/stoms stations in India is fo/nd ,ro2en or defe&tive* the Indian &/stoms
a/thorities sha## ma2e d/e verifi&ation of the 'oods to &he&2 .hether the
'oods are in a&&ordan&e .ith the %/stoms Transit =e&#aration and sha## "/t
fresh Bone1time1#o&2 and a##o. the &ontainers to move to the destination8
The seria# n/m,er of the ne. Bone1time1#o&2 sha## ,e endorsed in the
%/stoms Transit =e&#aration8
$,) The Indian &/stoms offi&er at the "oint of entry into India sha## ma2e s/&h se#e&tive
"er&enta'e e-amination of "a&2a'es and &ontents as may ,e ne&essary to &he&2
.hether5?
$i) the 'oods are in a&&ordan&e .ith the %/stoms Transit
=e&#aration*
$ii) the 'oods are s/&h as have ,een s"e&ified as sensitive ,y the Government
of India from time to time .ith "rior intimation to His Majestys
Government of !e"a#* andEor
(iii) they are of origin as declared in the C"stoms Transit
5eclaration*
NMT6, The selective percentage e'amination referred to in
s"#0paragraph A(#) shall mean that a percentage of
the total pac%ages in a consignment $ill #e selected
for e'amination and not that a percentage of the
contents of each of the pac%age comprised in the
consignment $ill #e e'amined*
58 The 'oods* as s"e&ified as sensitive ,y the Government of India from time to time
.ith "rior intimation to His Majestys Government of !e"a#* sha## ,e trans"orted
from the Indian &/stoms ,order "ost to %a#&/tta "ort in &#osed rai#.ay .a'ons or
in "i#fer1"roof &ontainers $to ,e "rovided ,y the e-"orter) .hi&h &an ,e se&/re#y
#o&2ed8 The &ontainers or .a'ons* as the &ase may ,e* sha## ,e #o&2ed and d/#y
sea#ed after the e-amination ,y the ,order &/stoms offi&er8
43
68 4here 'oods &annot ,e trans"orted in &#osed .a'ons* and have to ,e trans"orted
in o"en .a'ons or f#ats or o"en tr/&2s* detai#ed identifyin' "arti&/#ars sha## ,e
re&orded in the %/stoms Transit =e&#aration8
=* /fter the Indian C"stoms a"thorities at the #order land
c"stoms station are satis&ed as regards the chec%s
contemplated in the preceding paragraphs it shall endorse
all the copies of the C"stoms Transit 5eclaration* The
original copy shall #e handed over to the e'porter* The
d"plicate and triplicate $ill #e sent #y post to the
Commissioner of C"stoms Calc"tta and the ."adr"plicate
copy shall #e retained* In order to avoid delay in postal
transmission d"plicate and triplicate copies of the C"stoms
Transit 5eclaration along $ith copy of the original rail$ay
receipt shall #e handed over to the e'porter or his
a"thorised representative in a sealed cover if he so desires*
This facility shall ho$ever #e denied to the e'porter $ho
defa"lts in the prod"ction of these doc"ments $ithin a
reasona#le time*
D* The sensitive goods for e'port as speci&ed #y the
Government of India from time to time $ith prior intimation
to His Majestys Government of Nepal shall #e covered #y
an ins"rance policy or a #an% g"arantee and?or s"ch legally
#inding "nderta%ing to the satisfaction of the concerned
Commissioner of C"stoms in the manner indicated #elo$, 0
$a) Goods movin' ,y rai# /" to the sea "ort sha## ,e &overed ,y an ins/ran&e
"o#i&y or a ,an2 '/arantee* at the o"tion of the e-"orter* for an amo/nt
eC/a# to the Indian &/stoms d/ties on s/&h 'oods8 This Ins/ran&e "o#i&y or
,an2 '/arantee sha## ,e assi'ned to the &on&erned %ommissioner of
%/stoms* and the amo/nt sha## ,e&ome "aya,#e to the %ommissioner in the
event of the 'oods not rea&hin' %a#&/tta &/stoms8
$,) Goods movin' ,y road in tr/&2s ,e#on'in' to !e"a# Transit H 4areho/sin'
%om"any Dtd8* or !e"a# Trans"ort %or"oration sha## ,e &overed ,y an
ins/ran&e "o#i&y or a ,an2 '/arantee* at the o"tion of the e-"orter* for an
amo/nt eC/a# to the Indian &/stoms d/ties on s/&h 'oods8 This ins/ran&e
"o#i&y or ,an2 '/arantee sha## ,e assi'ned to the &on&erned %ommissioner
of %/stoms* and the amo/nt sha## ,e&ome "aya,#e to the %ommissioner in
the event of the 'oods not rea&hin' %a#&/tta &/stoms8 In addition* !e"a#
Transit and 4areho/sin' %om"any Dtd8* or the !e"a# Trans"ort
%or"oration* as the &ase may ,e* sha## 'ive an /nderta2in' to the &on&erned
%ommissioner of %/stoms* to "ay an amo/nt eC/a# to the differen&e
44
,et.een the mar2et va#/e of 'oods in India and their &8i8f8 va#/e "#/s Indian
&/stoms d/ties in the event of the 'oods not rea&hin' %a#&/tta &/stoms8
45
$&) Goods movin' ,y road in tr/&2s other than those mentioned at s/,1"ara'ra"h
$,) a,ove sha## ,e &overed ,y an ins/ran&e "o#i&y or a ,an2 '/arantee at the
o"tion of the e-"orter* for an amo/nt eC/a# to the differen&e ,et.een the
mar2et va#/e of the 'oods in India and their &8i8f8 va#/e8 This ins/ran&e "o#i&y
or a ,an2 '/arantee sha## ,e assi'ned to the &on&erned %ommissioner of
%/stoms* and the amo/nt sha## ,e&ome "aya,#e to the said %ommissioner in
the event of the 'oods not rea&hin' %a#&/tta &/stoms8
$d) The ins/ran&e "o#i&y sha## ,e o,tained ,y the e-"orter from an ins/ran&e
&om"any a/thorised to do ,/siness in India on s/&h terms and &onditions* to
the satisfa&tion of the &on&erned %ommissioner of %/stoms* .hi&h .i##
'/arantee that the ins/red amo/nt sha## ,e&ome "aya,#e forth.ith to the
Government of India on re&ei"t of a noti&e to the ins/ran&e &om"any from the
&on&erned %ommissioner of %/stoms* after satisfyin' himse#f that the 'oods
have not rea&hed %a#&/tta &/stoms8
NMT6,
8* In respect of goods #elonging to and consigned #y His
Majestys Government of Nepal "nder s"#0paragraphs (a)
and (#) a#ove no ins"rance or #an% g"arantee shall #e
re."ired provided an "nderta%ing or a f"rther
"nderta%ing as the case may #e is given #y Nepal
Transport and +areho"sing Corporation in lie" thereof*
28 !o s/&h reC/irement .i## ,e ne&essary in res"e&t of 'oods &arried ,y
air .itho/t transshi"ment en1ro/te or in s/&h &ases as may ,e m/t/a##y a'reed
/"on8
38 In the event of 'oods &arried ,y rai# not rea&hin' the ,oo2ed
destination* Indian 0ai#.ays sha##* .here #ia,#e as &arriers /nder the Indian
0ai#.ays +&t* "ay the &8i8f8 "ri&e to the e-"orter8
48 4hen the %/stoms Transit =e&#aration* d/#y a/thenti&ated ,y the
%a#&/tta %/stoms* is re&eived at the &on&erned ,order #and &/stoms station .ithin
the "res&ri,ed "eriod* it .i## ,e a&&e"ted as an eviden&e that 'oods have rea&hed
%a#&/tta %/stoms8
D/* (or goods other than those speci&ed #y the Government of
India in terms of paragraph D a#ove the e'porter shall
f"rnish to the satisfaction of concerned Commissioner of
C"stoms a legally0#inding "nderta%ing that the amo"nt
e."al to the di2erence #et$een the mar%et val"e of the
goods in India and their c*i*f val"e shall #e paid on demand
46
to the concerned Commissioner of C"stoms in the event of
the goods not reaching Calc"tta c"stoms*
D!* The concerned Commissioner of C"stoms shall provide to
the concerned department of His Majestys Government of
Nepal from time to time details of cases $here the goods
incl"ding those goods $hich have not #een ins"red do not
appear to have reached Calc"tta c"stoms* His Majestys
Government of Nepal shall there"pon carry o"t en."iries
and ma%e all possi#le e2orts to ens"re that the concerned
persons pay the d"es to the Government of India*
98 In &ase of any s/s"i&ion of "i#fera'e* the 'oods as have ,een s"e&ified as
sensitive ,y the Government of India from time to time .ith "rior intimation to
His Majestys Government of !e"a# sha## .hi#e in transit thro/'h India* ,e
s/,je&t to s/&h &he&2s ,y the Indian &/stoms* as may ,e ne&essary* "arti&/#ar#y at
the "oint of rai#.ay transshi"ment from meter1'a/'e to ,road1'a/'e8
108 @n arriva# of 'oods at %a#&/tta (ort* the e-"orter sha## "resent the ori'ina# &o"y of
the %/stoms Transit =e&#aration d/#y endorsed ,y the Indian ,order #and &/stoms
station to the %/stom Ho/se8 This &o"y sha## ,e &om"ared ,y the %/stom Ho/se
.ith the d/"#i&ate and tri"#i&ate re&eived ,y it from the ,order8 In &ase of 'oods
.hi&h have moved /nder sea#s and #o&2s* the %/stom Ho/se sha## &he&2 the sea#s
and #o&2s and .here there is s/s"i&ion that they have ,een tam"ered .ith* .i##
e-amine the 'oods to identify them .ith the &orres"ondin' %/stoms Transit
=e&#aration8 +fter the verifi&ation as &ontem"#ated in this "ara'ra"h is &om"#eted
,y the %/stom Ho/se* it sha## "ermit the e-"ort of the 'oods and .i## in &ase of
'oods s"e&ified as sensitive ,y the Government of India from time to time .ith
"rior intimation to His Majestys Government of !e"a# ens/re that these are d/#y
shi""ed8 +fter the 'oods have ,een shi""ed* the %/stom Ho/se sha## endorse a##
the &o"ies of the %/stoms Transit =e&#aration* hand over the ori'ina# to the
e-"orter and send the tri"#i&ate &o"y to the Indian ,order #and &/stoms station and
retain the d/"#i&ate8
118 4here e-"ort &ar'o is sh/t o/t* it .i## ,e removed to the .areho/se #eased o/t to
!e"a# Transit and 4areho/sin' %om"any Dtd8* on fi#in' of s/&h remova#
instr/&tions ,y the e-"orter or his a/thorised a'ents8
8;* The Nepalese e'port cargo not shipped d"e to valid reasons
$ill #e permitted to #e ret"rned to Nepal according to the
proced"re applica#le for the Nepalese import cargo*
47
87
th
(e#r"ary 899:
Nathmand"
6'cellency
/s per the "nderstanding reached #et$een the Bt*Hon#le Mr*Girija
Prasad Noirala Prime Minister of Nepal and His 6'cellency
Mr*P*O*Narasimha Bao Prime Minister of India as re-ected in the Coint
Comm"ni."e iss"ed at the end of the o1cial visit of His 6'cellency the
Prime Minister of India to Nepal on Mcto#er ;8 899; it $as agreed to
replace the letter e'changed at the time of the signing of the Treaty of
Transit on 5ecem#er 7 8998 relating to the movement of goods from
one part of Nepal to another thro"gh Indian territory #y a ne$ provision
$hich r"ns as follo$s,
In %eeping $ith the provisions of the Treaty of Transit signed #y
t$o Governments on 5ecem#er 7 8998 it $as agreed that for the
movement of goods and Nepalese vehicles from one part of Nepal to
another thro"gh Indian territory the proced"re prescri#ed for e'port of
goods from Nepal to third co"ntries shall apply m"tatis m"tandis e'cept
that there $ill #e no cash or #ond system "pon the necessary
"nderta%ing given #y the Nepalese c"stoms a"thorities* ("rther as
regards the movement of #aggage accompanying a person travelling
from one part of Nepal to another thro"gh Indian territory the
Government of India shall prescri#e a simpli&ed proced"re in respect of
s"ch articles of #aggage as the Government of India may specify as
#eing li%ely to #e retained in India having regard to the di2erence in
prices in Nepal and India and other relevant factors* (or other articles of
#aggage accompanying a passenger movement shall #e freely allo$ed*
I shall #e gratef"l if yo" co"ld %indly con&rm that the foregoing
correctly sets o"t the "nderstanding reached #et$een o"r t$o
Governments*
Please accept 6'cellency the ass"rances of my highest
consideration*
)d?0
( D'!/0 P!0D02h P0"608 )
)ecretary
Ministry of Commerce
for His Majestys Government of Nepal
His 6'cellency
P!$.BiC0% P!0206
/m#assador 6'traordinary L Plenipotentiary
48
6m#assy of India
N/THM/N5R N6P/@*
49
87
th
(e#r"ary 899:
Nathmand"
6'cellency
/s per the "nderstanding reached #et$een the Bt*Hon#le Mr*Girija
Prasad Noirala Prime Minister of Nepal and His 6'cellency
Mr*P*O*Narasimha Bao Prime Minister of India as re-ected in the Coint
Comm"ni."e iss"ed at the end of the o1cial visit of His 6'cellency the
Prime Minister of India to Nepal on Mcto#er ;8 899; it $as agreed in
accordance $ith the Treaty of Transit signed #et$een the t$o
Governments on 5ecem#er 7 8998 that the movement of Nepalese
private commercial vehicles from the Nepalese #order to Calc"tta?
Haldia and #ac% $ill #e allo$ed on s"ch vehicles #eing d"ly a"thorised
#y His Majestys Government of Nepal or the Nepal Transit and
+areho"sing Company @td or the Nepal Transport Corporation and the
necessary "nderta%ing #eing given #y them to the Indian c"stoms
a"thorities*
I shall #e gratef"l if yo" co"ld %indly con&rm that the foregoing
correctly sets o"t the "nderstanding reached #et$een o"r t$o
Governments*
Please accept 6'cellency the ass"rances of my highest
consideration*
)d?0
( D'!/0 P!0D02h P0"608 )
)ecretary
Ministry of Commerce
for His Majestys Government of Nepal
His 6'cellency
P!$.BiC0% P!0206
/m#assador 6'traordinary L Plenipotentiary
6m#assy of India
N/THM/N5R N6P/@*
50
Nathmand"
Can"ary 4 8999
6'cellency
I $rite to ac%no$ledge the receipt of yo"r letter of todays date
$hich reads as follo$s,
HIn co"rse of the disc"ssion that led to the rene$al of the Treaty of
Transit #et$een o"r t$o Governments today and in p"rs"ance of
Paragraph 8(i) of )ection II of the Protocol it $as agreed that the
Nepalese tra1c0in0transit from Calc"tta to the m"t"ally agreed entry
and e'it points along the India0Nepal #order vice0versa shall pass only
thro"gh one of the m"t"ally agreed ro"tes as speci&ed in the enclosed
/nne'"re0/* The partic"lars of one of these m"t"ally agreed ro"tes at
the option of the importer or the e'porter as the case may #e shall #e
mentioned in the C"stoms Transit 5eclaration*
;* It $as f"rther agreed that the transit facilities thro"gh Ph"l#ari
ro"te and Badhi%ap"r ro"te relating to Nepalese trade $ith and thro"gh
!angladesh $o"ld contin"e to #e governed #y the terms of e'isting
separate arrangements concl"ded #et$een the t$o Governments*
:* I shall #e gratef"l if yo" co"ld %indly con&rm that the foregoing
correctly sets o"t the "nderstanding reached #et$een o"r t$o
Governments*I
I con&rm that the follo$ing correctly sets o"t the "nderstanding
reached #et$een o"r t$o Governments*
Please accept 6'cellency the ass"rances of my highest
consideration*
)d?0
( P'!"0 B0h06'! Eh06D0 )
Minister of Commerce
His Majestys Government of Nepal
H*6*)hri Bama%rishna Hegde
Minister of Commerce
Government of India*
51
ANNEXURE A
SPECIFIED LAND ROUTES
8* )"%hia Po%hari Boad connecting Calc"tta05"nlop
!ridge0!arrac%pore0Nrishna Nagar0
Malda0Baiganj05al%ola0)ilig"ri0)"%hia
Po%hari
;* Na'al#ari
(Panitan%i)
Boad connecting Calc"tta05"nlop
!ridge0!arrac%pore0Nrishna Nagar0
Malda0Baiganj05al%ola0!agdogra0
Panitan%i
:* Galgalia Boad connecting Calc"tta05"nlop
!ridge0!arrac%pore0Nrishna Nagar0
Malda0Baiganj05al%ola0Nishanganj0
Tha%"rganj0Galgalia*
A* Cog#ani Boad connecting Calc"tta05"nlop
!ridge0!arrac%pore0Nrishna Nagar0
Malda0Baiganj05al%ola0P"rnia0/raria0
(or#esganj0Cog#ani
4* !himnagar Boad connecting Calc"tta05"nlop
!ridge0!arrac%pore0Nrishna Nagar0
Malda0Baiganj05al%ola0P"rnia0/raria0
(or#esganj0!himnagar
7* Cayanagar Boad connecting Calc"tta0
Oive%ananda !ridge05an%"ni0Mogra0
!ard$an0Panagarh0/sansol0N"lti0
Casidih0Ni"l0Mo%amah0!ara"ni0
M"saari Garari0)amastip"r0
5ar#hanga0Cayanagar*
(or)
Boad connecting Calc"tta0
Oive%ananda !ridge05an%"ni0Mogra0
!ard$an0Panagarh0/sansol05han#ad0
!arhi0Nodarma0Na$adah0!iharsarif0
!a%htiyarp"r0Gandhi )et"(Patna)0
52
Hajip"r0M"sari0Garari0)amastip"r0
5har#hanga0Cayanagar
=* !hitamore Boad connecting Calc"tta0
Oive%ananda !ridge05an%"ni0Mogra0
!ard$an0Panagarh0/sansol0N"lti0
Casidih0Ni"l0Mo%amah0!ara"ni0
M"Ga2arp"r0)itamarhi0!hitamore*
(or)
Boad connecting Calc"tta0
Oive%ananda !ridge05an%"ni0Mogar0
!ard$an0Panagarh0/sansol05han#ad0
!arhi0Nodarma0Na$adah0!iharsarif0
!a%htiyarp"r0Gandhi )et" (Patna)0
Hajip"r0M"Ga2arp"r0)itamarhi0
!hitamore*
D* Ba'a"l Boad connecting Calc"tta0
Oive%ananda !ridge 5an%"ni0Mogra0
!ard$an0Panagarh0/sansol0N"lti0
Casidih0Ni"l0Mo%amah0!ara"ni0
M"Ga2arp"r0Motihari0)"ga"li0Ba'a"l*
(or)
Boad connecting Calc"tta0
Oive%ananda !ridge05an%"ni0Mogra0
!ard$an0Panagarh0/sansol05han#ad0
!arhi0Nodarma0Na$adah0!iharsarif0
!a%htiyarp"r0Gandhi )et" (Patna)0
Hajip"r0M"Ga2arp"r0Motihari0)"ga"li0
Ba'a"l*
9* Na"tan$a
()ona"li)
Boad connecting Calc"tta0
Oive%ananda !ridge05an%"ni0Mogra0
!ard$an0Panagarh0/sansol05han#ad0
!arhi0/"ranga#ad0)asaram0Oaranasi0
GhaGip"r0Goar%hp"r0Na"tan$a0
)ona"li*
8<* !arhni Boad connecting Calc"tta0
Oive%ananda !ridge05an%"ni0Mogra0
!ard$an0Panagarh0/sansol05han#ad0
53
!arhi0/"ranga#ad0)asaram0Oaranasi0
GhaGip"r0Gora%hp"r0!asti0!arhni
88* Car$a Boad connecting Calc"tta0
Oive%ananda !ridge05an%"ni0Mogra0
!ard$an0Panagaarh0/sansol0
5han#ad0!arhi0/"ranga#ad0)asaram0
Oaranasi0GhaGip"r0Gora%hp"r0!asti0
!alramp"r0Car$a*
8;* Nepalg"nj
Boad
Boad connecting Calc"tta0
Oive%ananda !ridge05an%"ni0Mogra0
!ard$an0Panagarh0/sansol05han#ad0
!arhi0/"ranga#ad0)asaram0Oaranasi0
Ca"np"r0)"ltanp"r0@"c%no$0
!aharaich0Nepalg"nj Boad*
(or)
Boad connecting Calc"tta0
Oive%ananda !ridge05an%"ni0Mogra0
!ard$an0Panagarh0/sansol05han#ad0
!arhi0/"ranga#ad0)asaram0Oaranasi0
GhaGip"r0Gora%hp"r0!asti0!aharaich0
Nepalg"nj Boad*
54
8:* Ti%onia Boad connecting Calc"tta0
Oive%ananda !ridge05an%"ni0Mogra0
!ard$an0Panagarh0/sansol05han#ad0
!arhi0/"ranga#ad0)asaram0Oaranasi0
Ca"np"r0)"ltanp"r0@"c%no$0
!aharaich0Ti%onia*
8A* Ga"riphanta Boad connecting Calc"tta0
Oive%ananda !ridge05an%"ni0Mogra0
!ard$an0Panagarh0/sansol05han#ad0
!arhi0/"ranga#ad0)asaram0Oaranasi0
Ca"np"r0)"ltanp"r0@"c%no$0
!aharaich0Ga"riphanta*
(or)
Boad connecting Calc"tta0
Oive%ananda !ridge S5an%"ni0Mogra0
!ard$an0Panagarh0/sansol05han#ad0
!arhi0/"ranga#ad0)asaram0Oaranasi0
GhaGip"r0Gora%hp"r0!asti0!aharaich0
Ga"riphanta*
84* !an#asa Boad connecting Calc"tta0
Oive%ananda !ridge05an%"ni0Mogra0
!ard$an0Panagarh0/sansol05han#ad0
!arhi0/"ranga#ad0)asaram0Oaranasi0
Ca"np"r0)"ltanp"r0@"c%no$0
)hahjahanp"r0!areily0Pili#hit0
!an#asa*
NOTE)
8* Boads passing thro"gh Calc"tta /irport !arasat and Baiganj may
#e provided as an alternative ro"te o"t of Calc"tta in respect of all
ro"tes speci&ed a#ove passing thro"gh Baiganj $ith prior
endorsement on the C"stoms Transit 5eclaration #y the
appropriate C"stoms a"thority*
;* Project cargo heavy lift cargo and odd dimension cargo moving
o"t of Calc"tta may #e allo$ed to go via Nhara%p"r and 5han#ad
in respect of all ro"tes passing thro"gh 5han#ad $ith prior
endorsement on the C"stoms Transit 5eclaration #y the
appropriate C"stoms a"thority*
55

:* Movement o"t of Calc"tta thro"gh Oidhya )agar )eth" may #e
permitted for all ro"tes passing thro"gh 5an%"ni $ith prior
endorsement on the C"stoms Transit 5eclaration #y the
appropriate a"thority*
56
Nathmand"
Can"ary 4 8999
6'cellency
I $rite to ac%no$ledge the receipt of yo"r letter of todays date
$hich reads as follo$s,
HIn the co"rse of the disc"ssions that led to the rene$al of the
Treaty of Transit #et$een o"r t$o Governments today it $as agreed
that the arrangements $ith the Tr"stees of the Port of Calc"tta for
increasing the free time for removal of Nepalese transit cargo incl"ding
containerised cargo to seven days $ill contin"e pending an
assessment to #e cond"cted on side as to $hether contin"ation of this
facility is still re."ired in practical terms*
;* I shall #e gratef"l if yo" co"ld %indly con&rm that the a#ove sets
o"t correctly the "nderstanding reached #et$een o"r t$o
Governments*I
I con&rm that the foregoing correctly sets o"t the "nderstanding
reached #et$een o"r t$o Governments*
Please accept 6'cellency the ass"rances of my highest
consideration*
)d?0
( P'!"0 B0h06'! Eh06D0 )
Minister of Commerce
His Majestys Government of Nepal
H*6*)hri Bama%rishna Hegde
Minister of Commerce
Government of India*
57
Nathmand"
Can"ary 4 8999
6'cellency
I $rite to ac%no$ledge the receipt of yo"r letter of todays date
$hich reads as follo$s,
HM"r t$o delegations have signed the Treaty of Trade the Treaty
of Transit and the /greement on Co0operation #et$een His Majestys
Government of Nepal and the Government of India to control
"na"thorised trade* The Treaty of Trade and the /greement on Co0
operation to Control Rna"thorised Trade $ere rene$ed on :
rd
5ecem#er
8997 and the Treaty of Transit has #een rene$ed today i*e Can"ary 4
8999*
In the light of the provisions as envisaged in each of the Treaties
and the /greement o1cials designated #y the t$o Governments shall
meet separately at the appropriate levels as and $hen necessary and
determine proced"res as may #e appropriate to disc"ss and resolve any
pro#lem that may arise in the e2ective and harmonio"s implementation
of the iss"es relating to trade transit and "na"thorised trade*
It is f"rther agreed that there shall #e an Inter0Governmental
Committee consisting of the senior representatives of the t$o
Governments to promote trade facilitate transit and control
"na"thorised trade #et$een the t$o co"ntries as envisaged in the
Treaties and the /greement* The Committee shall meet at least once in
si' months alternatively in Nathmand" and Ne$ 5elhi* If any ."estions
remain "nresolved in the meetings on the o1cial gro"ps referred to in
the foregoing paragraph they shall #e referred to this Committee $hich
$ill &nd sol"tions thereof* The Committtee may also deal $ith any
matter on its o$n in order to f"rther the p"rpose envisaged in the said
Treaties and the /greement*
I shall #e gratef"l if yo" $o"ld %indly con&rm that the a#ove sets
o"t correctly the "nderstanding reached #et$een o"r t$o
Governments*I
I con&rm that the foregoing correctly sets o"t the "nderstanding
reached #et$een o"r t$o Governments*
Please accept 6'cellency the ass"rances of my highest
consideration*
;dE1
$ P'rn( B(h()'r *h()+( )
Minister of %ommer&e
His MajestyIs Government of !e"a#
58
H898;hri 0ama2rishna He'de*
Minister of Commerce
Government of India*
59
AGREEMENT OF CO-OPERATION BETWEEN
GOVERNMENT OF INDIA AND HIS MAJESTYS
GOVERNMENT OF NEPAL TO CONTROL
UNAUTHORISED TRADE
The Government of India and His Majestys Government of Nepal
(hereinafter also referred to as the Contracting Parties)*
N66N to s"stain the good neigh#o"rliness thro"gh m"t"ally
#ene&cial meas"res at their common #order $hich is free for movement
of persons and goods*
Have agreed as follo$s,
A!ti#%e I
The Contracting Parties $hile recogniGing that there is a long and
open #order #et$een the t$o co"ntries and there is free movement of
persons and goods across the #order and nothing that they have the
right to p"rs"e independent foreign trade policies agree that either of
them $o"ld ta%e all s"ch meas"res as are necessary to ens"re that the
economic interests of the other party are not adversely a2ected thro"gh
"na"thorised trade #et$een the t$o co"ntries*
A!ti#%e II
The Contracting Parties agree to co0operate e2ectively $ith each
other to prevent infringement and circ"mvention of the la$s r"les and
reg"lations of either co"ntry in regard to matters relating to C"stoms
Narcotics and Psychotropic )"#stances (oreign 6'change and (oreign
Trade and shall for this p"rpose assist each other in s"ch matters as
cons"ltation en."iries and e'change of information $ith regard to
matters concerning s"ch infringement or circ"mvention**
A!ti#%e III
)"#ject to s"ch e'ceptions as may #e m"t"ally agreed "pon each
Contracting Party shall prohi#it and co0operate $ith the other to
prevent,
(a) re0e'ports from its territory to third co"ntries of goods imported
from the other Contracting Party $itho"t man"fact"ring activityF
(#) re0e'ports to the territory of the other Contracting Party of goods
imported from third co"ntries $itho"t man"fact"ring activity*
Provided that (a) and (#) a#ove shall not #e applica#le in the case
of the e'port of the Nepalese goods into India "nder the proced"re
60
set o"t in Protocol O to the Treaty of Trade #et$een His Majestys
Government of Nepal and the Government of India*
61
A!ti#%e IV
6ach Contracting Party $ill,
(a) prohi#it and ta%e appropriate meas"res to prevent import from the
territory of the other Contracting Party of goods lia#le to #e re0
e'ported to third co"ntries from its territory and the e'port of
$hich from the territory of the other Contracting Party to its
territory is prohi#itedF
(#) in order to avoid ind"cement to$ards diversion of imported goods
to the other Contracting Party ta%e appropriate steps thro"gh
necessary provisions relating to !aggage B"les gifts and foreign
e'change a"thorisation for the import of goods from third
co"ntries*
A!ti#%e V
The Contracting Parties shall compile and e'change $ith each
other statistical and other information relating to "na"thorised trade
across the common #order* They also agree to e'change $ith each
other reg"larly the lists of goods the import and e'port of $hich are
prohi#ited or restricted or s"#ject to control according to their
respective la$s and reg"lations*
A!ti#%e VI
The respective heads of the !order C"stoms M1ces of each
co"ntry shall meet reg"larly $ith his co"nterpart of appropriate stat"s
at least once in t$o months alternately across the common #order,
(a) to co0operate $ith each other in the prevention of
"na"thorised trade,
(#) to maintain the smooth and "ninterr"pted movement of
goods across their territoriesF
(c) to render assistance in resolving administrative di1c"lties
as may arise at the &eld level*
A!ti#%e VII
In order to facilitate e2ective and harmonio"s implementation of
this /greement the Contracting Parties shall cons"lt each other
reg"larly*
62
A!ti#%e VIII
This /greement shall remain in force "p to 34
th
March;<8;* It
may #e rene$ed for f"rther periods of &ve years at a time #y m"t"al
consent s"#ject to s"ch modi&cations as may #e agreed "pon*
5one in d"plicate in Hindi Nepali and 6nglish lang"ages all the te'ts
#eing e."ally a"thentic at Ne$ 5elhi on the 7
th
5ecem#er 8998* In
case of do"#t the 6nglish te't $ill prevail*
* The validity extended for a period of fve years with efect
from 6
th
march, 2007 through exchange of letters dated 2! "arch
2007 #etween the $ommerce %ecretary of &overnment of 'ndia
and his (epalese counterpart)
(P.Chi60C10!0C) (G$30% M0"
Sh!e2th0)
Minister of )tate for Commerce Minister of
Commerce for Government of India for His
Majestys
Government of Nepal*
63
INDONE!AL
TREATY OF TRADE
"Letter# e$%&ange' (et)een t&e G*+ern,ent *- In'ia an'
Hi# Ma.e#t/0# G*+ern,ent *- Nepal *n 1
n'
Mar%&2 13314
MINISTRY OF COMMERCE & INDUSTRY
DE!ARTMENT OF COMMERCE
GOVENRMENT OF INDIA
NEW DELHI5
64
!e. =e#hi
2nd March,2002
Excellency,
Conse."ent "pon the "nderstandings reached #et$een the
Commerce )ecretaries of the Government of India and His
Majestys Government of Nepal d"ring their meetings in 5elhi
from ;=
th
(e#r"ary to ;
nd
March ;<<; it has #een agreed to
e'tend the validity of all the t$elve /rticles of the India0Nepal
Treaty of Trade and Protocols to /rticles IIIIIIIO and OI in their
present form for a period of &ve years $ith e2ect from 7
th
March
;<<;* The revised Protocol to /rticle O and the ne$ Protocol to
/rticle I> of the Treaty anne'ed to this letter $ill also #e valid for
the same period* Ho$ever there $ill #e a transition period "pto
87
th
/pril ;<<; to complete the administrative arrangements to
change over to the Certi&cate of Mrigin re."irement as prescri#ed
in /nne'"re0H5I of the revised Protocol to /rticle O of the Treaty*
The e'isting Certi&cate of Mrigin shall also #e applica#le d"ring
this transition period* /ny imports from Nepal into India of
items "nder &'ed ."ota as prescri#ed in /nne'"re0QC of the
revised Protocol to the /rticle O of the Treaty $ith e2ect from 7
th

March ;<<; shall #e thro"gh the designated @and C"stoms
)tations and shall #e co"nted to$ards the ."ota for the &rst
year*
2. This letter and your Excellencys confirmation shall constitute an
Agreement between our two Goernments.
!. " shall be grateful if you could #indly confirm that the foregoing correctly
sets out the understanding reached between our two Goernments.
$. %lease acce&t, Excellency, the assurances of my highest consideration.
5ipa% Chatterjee
Commerce )ecretary
Government of India
H5E5 Mr5 65!5A%&ar/a2
Se%retar/2 Mini#tr/ *- In'u#tr/2 C*,,er%e an' Supplie#2
Hi# Ma.e#t/0# G*+ern,ent *- Nepal5
65
Ne@ De%hi
2
nd
March,2002
Excellency,
I $rite to ac%no$ledge the receipt of yo"r letter of todays date
$hich reads as follo$s ,0
Consequent upon the understandings reached
beteen the Commerce !ecretaries of the "overnment of
#ndia and $is Ma%esty&s "overnment of 'epa( during their
meetings in )e(hi from 27
th
*ebruary to 2
nd
March 2002,
it has been agreed to e+tend the va(idity of a(( the te(ve
,rtic(es of the #ndia-'epa( .reaty of .rade, and /rotoco(s
to ,rtic(es #, ##, ###, #0 and 0# in their present form for a
period of fve years ith e1ect from 6
th
March 20022 .he
revised /rotoco( to ,rtic(e 0 and the ne /rotoco( to
,rtic(e #3 of the .reaty anne+ed to this (etter i(( a(so be
va(id for the same period2 $oever, there i(( be a
transition period upto 46
th
,pri( 2002 to comp(ete the
administrative arrangements to change over to the
Certifcate of 5rigin requirement as prescribed in
,nne+ure 6)7 of the revised /rotoco( to ,rtic(e 0 of the
.reaty2 .he e+isting Certifcate of 5rigin sha(( a(so be
app(icab(e during this transition period2 ,ny imports from
'epa( into #ndia of items under f+ed quota as prescribed
in ,nne+ure -8C8 of the revised /rotoco( to the ,rtic(e 0 of
the .reaty ith e1ect from 6
th
March 2002, sha(( be
through the designated 9and Customs !tations and sha((
be counted toards the quota for the frst year2
2. This letter and your Excellencys confirmation shall constitute an
Agreement between our two Governments.
3. I shall be grateful if you could indly confirm that the foregoing
correctly sets out the understanding reached between our two
Governments.!
2. " confirm that the foregoing correctly sets out the understanding reached
between us.
!. %lease acce&t, Excellency, the assurances of my highest consideration.
65!5A%&ar/a2
Se%retar/2
Mini#tr/ *- In'u#tr/2 C*,,er%e an' Supplie#2
Hi# Ma.e#t/0# G*+ern,ent *- Nepal5
H$E$ Mr$ Di,(+ Ch(tter-ee
66
C!..ere Seret(r/
G!0ern.ent !f In)i(
67
!r*t*%*l t* t&e Treat/ *- Tra'e
Wit& Re-eren%e t* Arti%le V
'. The Goernment of "ndia will &roide &referential access to the "ndian mar#et
free of customs duties normally a&&licable and (uantitatie restrictions, exce&t as
mentioned elsewhere, for all articles manufactured in )e&al, &roided they fulfill
the (ualifying criteria gien below*
+a, the articles are manufactured in )e&al wholly from )e&alese materials or
"ndian materials or )e&alese and "ndian materials -or
+b, +i, the articles inole a manufacturing &rocess in )e&al that brings about a
change in classification, at four digit leel, of the .armoni/ed 0ommodities
1escri&tion and 0oding 2ystem, different from those, in which all the third
country origin materials used in its manufacture are classified- and the
manufacturing &rocess is not limited to insufficient wor#ing or &rocessing as
indicated in Anne$ure 7682 and
+b, +ii, 3rom 4
th
March 2002 to 5
th
March 200! , the total alue of materials, &arts
or &roduce originating from non60ontracting %arties or of undetermined origin
used does not exceed 758 +seenty fie &ercent, of the ex6factory &rice of the
articles &roduced, and the final &rocess of manufacturing is &erformed within the
territory of )e&al. 3rom 4
th
March 200! onwards, the total alue of materials,
&arts or &roduce originating from non60ontracting %arties or of undetermined
origin used does not exceed 708 +seenty &ercent, of the ex6factory &rice of the
articles &roduced, and the final &rocess of manufacturing is &erformed within the
territory of )e&al.
N*te9
The alue of materials, &arts or &roduce originating from non60ontracting %arties
shall be the 0"3 alue at the time of im&ortation of materials, &arts or &roduce,
at the &oint of entry in )e&al, where this can be &roen, or the earliest
ascertainable &rice &aid for the materials, &arts or &roduce of undetermined
origin in the territory of the 0ontracting %arty where the wor#ing or &rocessing
ta#es &lace.
+c, 3or )e&alese articles not fulfilling the conditions gien in sub6&ara6' +b, +i,
aboe, but fulfilling the condition at sub6&ara6 ' +b, +ii, aboe, &referential access
may be gien by the Goernment of "ndia, on a case by case basis, after
satisfying itself that such article has undergone a sufficient manufacturing
&rocess within )e&al.
68
+d, .oweer, the im&ort of )e&alese manufactured articles described in
Anne$ure 7C8 which fulfill the criteria in sub6&ara6' +a, or +b, +i, 9 +ii, aboe will
be goerned by the terms s&ecified in this Annexure .
+e, "n the case of other articles manufactured in )e&al which do not fulfill the
(ualifying criteria s&ecified in sub6&ara6' +a, or +b, +i, 9 +ii, aboe, the
Goernment of "ndia will &roide normal access to the "ndian mar#et consistent
with its M3) treatment.
2. "m&ort of articles in accordance with the &ara 6' aboe shall be allowed by the
"ndian customs authorities on the basis of a 0ertificate of :rigin to be issued by
the agency designated for this &ur&ose by .is Ma;estys Goernment of )e&al in
the format &rescribed at Anne$ure 7D8 for each consignment of articles
ex&orted from )e&al to "ndia. "nformation regarding the basis of calculation for
grant of such 0ertificates of :rigin to the manufacturing facilities in )e&al will be
&roided to the Goernment of "ndia on an annual basis. The modalities for this
will be wor#ed out within three months from the signing of the %rotocol.
%referential facility shall not be aailable for the articles listed at Anne$ure7E85
!. :n the basis of a 0ertificate issued, for each consignment of articles
manufactured in the small6scale units in )e&al, by .is Ma;estys Goernment of
)e&al, that the releant conditions a&&licable to the articles manufactured in
similar 2mall 2cale "ndustrial units in "ndia for relief in the ley of a&&licable
Excise 1uty rates are fulfilled for such a &arity, Goernment of "ndia will extend
&arity in the ley of Additional 1uty on such )e&alese articles e(ual to the
treatment &roided in the ley of effectie Excise 1uty on similar "ndian articles
under the "ndian 0ustoms and 0entral Excise Tariff. .oweer, this facility will be
a&&licable only to articles manufactured in )e&al in such small scale units
which (ualify as small scale units under the )e&alese "ndustrial %olicy as on 5
1ecember,200'.
$. The <Additional 1uty= rates e(ual to the effectie "ndian excise duty rates
a&&licable to similar "ndian &roducts under the "ndian 0ustoms 9 0entral Excise
Tariff will continue to be leied on the im&orts into "ndia of &roducts manufactured
in the medium and large scale units in )e&al.
$.' "n regard to additional duty collected by the Goernment of "ndia in
res&ect of manufactured articles other than those manufactured in <small= units-
>hereer it is established that the cost of &roduction of an article is higher in
)e&al than the cost of &roduction in a corres&onding unit in "ndia, a sum
re&resenting such difference in the cost of &roduction, but not exceeding 25 &er
cent of the <additional duty= collected by the Goernment of "ndia, will be &aid to
.is Ma;estys Goernment of )e&al &roided .is Ma;estys Goernment of )e&al
hae gien assistance to the same extent to the +manufacturers, ex&orters.
69
5. Ex&ort of consignments from )e&al accom&anied by the 0ertificate of :rigin
will normally not be sub;ected to any detention ? delays at the "ndian customs
border chec#&osts and other &laces en route. .oweer, in case of reasonable
doubt about the authenticity of 0ertificate of :rigin, the "ndian 0ustoms Authority
may see# a clarification from the certifying agency which will furnish the same
within a &eriod of thirty days. Meanwhile, the sub;ect consignment will be
allowed entry into "ndia on &roisional basis against a bond i.e. a legally binding
underta#ing as re(uired. After examining the information so &roided by the
certifying agency, the "ndian 0ustoms Authority would ta#e a&&ro&riate action
to finalise the &roisional assessment. >heneer considered necessary,
re(uest for a ;oint isit of the manufacturing facility may be made by the "ndian
0ustoms Authority which would be facilitated by the concerned )e&alese
authority within a &eriod of thirty days.
4.>here for social and economic reasons, the im&ort of an item into "ndia is
&ermitted only through &ublic sector agencies or where the im&ort of an item is
&rohibited under the "ndian Trade control regulations, the Goernment of "ndia
will consider any re(uest of .is Ma;estys Goernment of )e&al for relaxation
and may &ermit the im&ort of such an item from )e&al in such a manner as may
be found to be suitable.
7.3or the &ur&ose of calculation of im&ort duties customs aluation &rocedures,
as &rescribed under the &reailing customs law, will be followed.
Wit& re-eren%e t* Arti%le I:
"n the eent of im&orts under the Treaty, in such a manner or in such (uantities
as to cause or threaten to cause in;ury to the domestic industry or a significant
segment of it relating to the article, the im&orting country may re(uest for
consultations in the @oint 0ommittee set u& by the two Goernments for this
&ur&ose with a iew to ta#ing a&&ro&riate measures. "f the consultations in the
@oint 0ommittee fail to resole the issue within a &eriod of sixty days from the
date of such re(uest, then the re(uesting Goernment shall be free to ta#e
a&&ro&riate remedial measures. The "ndia6)e&al "nter6Goernmental 0ommittee
+"G0, will reiew such measures.
7 In.ur/8 means significant damage to the domestic &roducers, of li#e or similar
&roducts resulting from a substantial increase of im&orts under the Treaty in
situations which cause substantial losses in terms of earnings, &roduction or
em&loyment unsustainable in short term. The examination of the im&act on the
domestic industry concerned shall also include an ealuation of other releant
economic factors and indices haing a bearing on the state of domestic industry
of that &roduct.
7T&reat *- in.ur/8 means a situation in which a substantial increase of im&orts
under the Treaty is of a nature so as to cause in;ury to the domestic &roducers,
and that such in;ury, although not yet existing is clearly imminent. A
determination of threat of in;ury shall be based on facts and not on mere
allegation, con;ecture, or remote or hy&othetical &ossibility.
70
ANNEXURE A
AGREED ROUTES FOR MUTUAL TRADE
8* Pash"patinagar? )"%hia Po%hari
;* Na%ar#hitta? Na'al#ari
:* !hadrap"r? Galgalia
A* !iratnagar? Cog#ani
4* )eto#andha? !himnagar
7* Baj#iraj? N"na"li
=* )iraha Cana%p"r? Cayanagar
D* Cales$ar? !hitamore ()"rsand)
9* Malanga$a? )ona#arsa
8<* Ga"r? !airgania
88* !irg"nj? Ba'a"l
8;* !hairaha$a? Na"tan$a
8:* Ta"liha$a? Nh"n$a
8A* Nrishnanagar? !arhni
84* Noila#as? Car$a
87* Nepalg"nj? Nepalg"nj Boad
8=* Bajap"r? Naterniyaghat
8D* Prithvip"r? )ati (Nailali)? Ti%onia
89* 5hangadhi? Ga"riphanta
;<* Mahendranagar? !an#asa
;8* Maha%ali? Ch"laghat (Pithoragarh)
;;* 5arch"la? 5harch"la
71
ANNE:URE 768
ILLUSTRATIVE LIST OF
INSUFFICIENT WOR;ING OR
!ROCESSING
The following shall be considered as insufficient wor#ing or &rocessing to confer
the status of originating or manufactured or &roduced or made in )e&al, to an
article, whether or not there is a change in heading classification at four digit
leel, of the .armoni/ed 0ommodities 1escri&tion and 0oding 2ystem,
different from those in which all the third country origin materials used in its
manufacture are classified*6
a, :&erations to ensure the &reseration of articles in good condition during
trans&ort and storage +e.g., entilation, s&reading out, drawing, chilling,
&lacing in salt, sul&hur6dioxide or other a(ueous solutions, remoal of
demaged &arts and li#e o&erations,-
b, :&erations consisting of remoal of dust, sifting or screening, sorting,
classifying, matching +including the ma#ing u& of sets,, washing, &ainting,
cutting u&-
c, 0hanges of &ac#ing and brea#ing u& and assembly of consignments-
d, 2licing, cutting, slitting, re6&ac#ing, &lacing in bottles or flas#s or bags or
boxes or other containers, fixing on cards or boards, etc., and all other
&ac#ing or re6&ac#ing o&erations-
e, The affixing of mar#s, labels or other li#e distinguishing signs on articles or
their &ac#aging-
f, Mixing of articles, whether or not of different #inds, where one or more
com&onents of the mixture do not meet the conditions laid down in &ara
'+b, of %rotocol to the Article A of the Treaty to enable them to be considered
as manufactured or &roduced or made in )e&al-
g, Assembly of &arts of an articles to constitute a com&lete article-
h, A combination of two or more o&erations s&ecified in a, to g, aboe.
72
ANNE:URE 7C8
Nepale#e ,anu-a%ture' arti%le# all*)e' entr/ int* In'ia
-ree *- %u#t*,# 'utie# *n a -i$e' <u*ta (a#i#
Sl5 N*5 Nepale#e arti%le =uantit/ in MT per /ear
'. Aegetable fats +Aanas&ati, '00,000 + :ne hundred thousand,
2. Acrylic Barn '0,000 +Ten thousand,
!. 0o&&er &roducts under 0ha&ters 7$
9 .eading C5.$$ of the ..2.0ode
7,500 + 2een thousand fie
hundred,
$. Dinc :xide 2,500 +Two thousand fie hundred,
a, "m&orts into "ndia of the aboe four commodities for (uantities in excess of
the fixed (uota mentioned aboe will be &ermitted under normal M3) rates of
duty, not withstanding any concession in any other &referential arrangement.
b, "m&orts into "ndia of the aboe commodities will be &ermitted through the land
0ustoms 2tations +E02, at Fa#arbhitta?)axalbari, Giratnagar?@ogbani,
Girgan;?Haxaul, Ghairahawa?)autanwa, )e&algun;?)e&algun; Hoad and
Mahendranagar? Ganbasa .
c, The detailed administratie arrangements for o&erationalisation of the fixed
(uota i.e. identifying the agencies for allocation and monitoring of ex&orts and
im&orts of fixed (uota will be finalised by both the Goernments.
73
ANNEXURE D
CERTIFICATE OF ORIGIN
FOR EXPORTS FREE OF CUSTOM DUTIES
UNDER THE TREATY OF TRADE BETWEEN
HIS MAJESTYS GOVERNMENT OF NEPAL AND
THE GOVERNMENT OF INDIA
Reference No._____________________
8* /rticles consigned from (6'porters #"siness name address)
;* /rticles consigned to (Consignees name address)
:* Means of transport and ro"te
A* Item N"m#er (H) Tari2 @ine)
4* Mar%s and n"m#er of pac%age
7* 5escription of /rticles
=* Gross $eight or other ."antity
D* N"m#er and date of Invoice together $ith val"e
9* 6'0(actory price

of the articles man"fact"red in Nepal,

8<* (i) +hether articles are man"fact"red in Nepal "nder
Para 8(a) of the Protocol to /rticle O of the Treaty of
Trade (Ees ? No),
(ii) If articles are man"fact"red in Nepal "nder Para 8
(#)(i) L (ii) of the Protocol to /rticle O of the Treaty of
Trade,
(/) CI( val"e of materials parts or prod"ce
originating from Non0Contracting Parties (i*e* other
than Nepal L India) at the point of entry in Nepal, 0
(!) Oal"e of materials parts or prod"ce of
"ndetermined origin, 0

B9-1fa&tory "ri&e means the "ri&e of the "rod/&t at the time of &#earan&e from the fa&tory 'ate8
74
88* Percentage of the s"m of the val"e of col* 8< (ii) (/) L
(!) to the val"e of col* 9,
75
8;* 5eclaration #y the e'porter,
The "ndersigned here#y declares that the details f"rnished a#ove
are correct that the articles are prod"ced in Nepal and that they
comply $ith the B"les of Mrigin speci&ed in the Treaty of Trade
#et$een His Majestys Government of Nepal and the Government of
India*
PPPPPPPPPPPPPPPPPPPPPPPPP
(Place L 5ate )ignat"re of a"thorised signatory)*
8:* Certi&cation
It is certi&ed that the articles herein referred to are eligi#le
for preferential treatment as per provisions of the Treaty of Trade
#et$een His Majestys Government of Nepal and the Government
of India* It is f"rther certi&ed that,
8* The articles have #een man"fact"red in Nepal at a factory
sit"ated at
PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP(name of the
place? district) #y M?s
PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP(name of the
company)*
:* The articles involve man"fact"ring activity in Nepal and
that the man"fact"ring activity satis&es the criteria given in the
Protocol to /rticle O of the Treaty of Trade*
A* The articles in ."estion are not prod"cts of third co"ntry
origin3*
(or His Majestys Government of Nepal
(Place and 5ate )ignat"re L )tamp of certifying a"thority)
3(or the p"rpose of the a#ove item No*A the articles $hich have
"ndergone a man"fact"ring process in Nepal as de&ned in the
Protocol to /rticle O of the Treaty $ill not #e treated as prod"ct of
third co"ntry origin*
8A* (or M1cial "se of Indian C"stoms
The consignment has #een e'amined and allo$ed to #e imported
into India as it complies $ith the provisions as stip"lated "nder
/rticle O of the Treaty of Trade #et$een His Majestys Government of
Nepal and the Government of India*
76
PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP
)ignat"re L )eal of the
Certifying a"thority
5ated,
Place,
ANNE:URE 7E8
MFN LIST OF ARTICLES
WHICH WILL NOT BE ALLOWED
PREFERENTIAL ENTRY FROM NEPAL TO INDIA
ON THE BASIS OF CERTIFICATE OF ORIGIN TO BE
GIVEN BY AGENCY DESIGNATED BY HIS
MAJESTYS GOVERNMENT OF NEPAL
8* /lcoholic @i."ors? !everages(3) and their
concentrates e'cept ind"strial spirits
;* Perf"mes and Cosmetics $ith non0Nepalese ? non0
Indian !rand names
:* Cigarettes and To#acco
Note, Government of India may in cons"ltation $ith
HMGN modify the a#ove list*

(3) Nepalese #eers can #e imported into India on payment
of the applica#le li."or e'cise d"ty e."al to the e2ective
e'cise d"ty as levied in India on Indian #eers "nder the
relevant r"les and reg"lations of India*
77
78
5th March,2002
Excellency,
Conse."ent "pon the "nderstandings reached #et$een the
Commerce )ecretaries of the Government of India and His
Majestys Government of Nepal d"ring their meetings in 5elhi
from ;=
th
(e#r"ary to ;
nd
March ;<<; it has #een agreed to
e'tend the validity of all the eight /rticles of the /greement of
Cooperation #et$een Government of India and His Majestys
Government of Nepal to Control Rna"thorised Trade in their
present form for a period of &ve years $ith e2ect from 7
th
March
;<<;*
2. This letter and your Excellencys confirmation shall constitute an
Agreement between our two Goernments.
!. " shall be grateful if you could #indly confirm that the foregoing correctly
sets out the understanding reached between our two Goernments.
$. %lease acce&t, Excellency, the assurances of my highest consideration.
5ipa% Chatterjee
Commerce )ecretary
Government of India
H5E5 Mr5 65!5A%&ar/a2
Se%retar/2 Mini#tr/ *- In'u#tr/2 C*,,er%e an' Supplie#2
Hi# Ma.e#t/0# G*+ern,ent *- Nepal5
79
Ne@ De%hi
5
th
March,2002
Excellency,
I $rite to ac%no$ledge the receipt of yo"r letter of todays date
$hich reads as follo$s ,0
<0onse(uent u&on the understandings reached between the 0ommerce
2ecretaries of the Goernment of "ndia and .is Ma;estys Goernment of )e&al
during their meetings in 1elhi from 27th 3ebruary to 2nd March 2002, it has
been agreed to extend the alidity of all the eight Articles of the Agreement of
0oo&eration between Goernment of "ndia and .is Ma;estys Goernment of
)e&al to 0ontrol Inauthorised Trade in their &resent form for a &eriod of fie
years with effect from 4th March 2002.
2. This letter and your Excellencys confirmation shall constitute an
Agreement between our two Goernments.
!. " shall be grateful if you could #indly confirm that the foregoing correctly
sets out the understanding reached between our two Goernments=.
2. " confirm that the foregoing correctly sets out the understanding reached
between us.
!. %lease acce&t, Excellency, the assurances of my highest consideration.
65!5A%&ar/a2
Se%retar/2
Mini#tr/ *- In'u#tr/2 C*,,er%e an' Supplie#2
Hi# Ma.e#t/0# G*+ern,ent *- Nepal5
H.E. M!. Di30D Ch0tte!Fee
C$CCe!#e Se#!et0!8
G$Be!"Ce"t $ I"6i0
80