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Agreement of Co-operation, 1991 - India

AGREEMENT OF CO-OPERATION BETWEEN HIS MAJESTY’S GOVERNMENT OF NEPAL
AND
THE GOVERNMENT OF INDIA TO CONTROL UNAUTHORIZED TRADE

His Majesty’s Government of Nepal and the Government of India (hereinafter also referred to as the Contracting Parties).

KEEN to sustain the good neighborliness through mutually beneficial measures at their common border which is free for movement of persons and goods.

Have agreed as follows:

Article I

The Contracting Parties, while recognizing that there is a long and open border between the two countries and there is free movement of persons and goods across the border and noting that they have the right to pursue independent foreign trade policies, agree that either of them would take all such measures as are necessary to ensure that the economic interests of the other party are not adversely affected through unauthorized trade between the two countries.

Article II

The Contracting Parties agree to co-operate effectively with each other, to prevent infringement and circumvention of the laws, rules and regulations of either country in regard to matters relating to customs, narcotics and psychotropic substances, foreign exchange and foreign trade and shall for this purpose assist each other in such matters as consultation, inquiries and exchange of information with regard to matters concerning such infringement or circumvention.

Article III*

Subject to such exceptions as may be mutually agreed upon, each Contracting Party shall prohibit and co-operate with the other to prevent:

re-exports from its territory to third countries of goods imported from the other Contracting Party without manufacturing activity.
re-exports to the territory of the other Contracting Party of goods imported from third countries without manufacturing activity.

Provide that a. and b. above shall not be applicable in the case of the exports of the Nepalese goods into India under the procedure set out in Protocol V to the Treaty of Trade between His Majesty's Government of Nepal and the Government of India.

* Amended and Replaced by the Letters of Exchange between His Majesty’s Government of Nepal and Government of India at Kathmandu on Dec 3, 1996.

Article IV

Each Contracting Party will:

prohibit and take appropriate measures to prevent import from the territory of the other Contracting Party of goods liable to be re-exported to third countries from its territory and the export of which from the territory of the other Contracting Party to its territory is prohibited;
in order to avoid inducement towards diversion of imported goods to the other Contracting Party, take appropriate steps through necessary provisions relating to Baggage Rules, gifts and foreign exchange authorization for the import of goods from third countries.

Article V

The Contracting Parties shall compile and exchange with each other statistical and other information relating to unauthorized trade across the common border. They also agree to exchange with each other regularly the lists of goods the import and export of which prohibited, or restricted or subject to control according to their respective laws and regulations.

Article VI

The respective heads of the Border Customs Offices of each country shall meet regularly with his counterpart of appropriate status at least once in two months alternately across the common border.

to co-operate with each other in the prevention of unauthorized trade.
to maintain the smooth and uninterrupted movement of goods across their territories.
To render assistance in resolving administrative difficulties as may arise at the fields' level.

Article VII

In order to facilitate effective and harmonious implementation of this Agreement the Contracting Parties shall consult each other regularly.

Article VIII#

"This Agreement shall remain in force up to December 5, 2001. It may be renewed for further periods of five years, at a time, by mutual consent, subject to such modifications as may be agreed upon."

Done in duplicate in Nepali, Hindi and English languages, all the texts being equally authentic, at New Delhi on the 6th December 1991. In case of doubt, the English text will prevail.

(Gopal Man Shrestha)
Minister of Commerce
For His Majesty’s
Government of Nepal

(P. Chidambaram)
Minister of State for Commerce
For the Government of India.

# Modified and Extended by the Letters of Exchange between His Majesty’s Government of Nepal and Government of India at Kathmandu on Dec3, 1996.

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6th December 1991
New Delhi

Excellency,

In the course of discussion that led to the signing of the Treaty of Transit between our two Governments today, the Government of India agreed to provide necessary overland transit facilities through Radhikapur and such other routes as may be further agreed upon for the conduct of Nepal’s trade with and through Bangladesh in order to help Nepal develop and diversify her foreign trade.

The transit procedures prescribed in Nepal’s Treaty of Transit with India would apply mutatis mutandis in respect of such traffic-in-transit.

I shall be grateful if you could kindly confirm that the above sets out correctly the understanding reached between our two Governments.

Please accept, Excellency, the assurances of my highest consideration.

(Gopal Man Shrestha)
Minister of Commerce
For His Majesty’s
Government of Nepal

P. Chidambaram
Minister of State for Commerce
For the Government of India.

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6th December 1991
New Delhi

Excellency,

I write to acknowledge the receipt of your letter of today’s date which reads as follows:

"In the course of discussion that led to the signing of the Treaty of Transit between our two Governments today, the Government of India agreed to provide necessary overland transit facilities through Radhikapur and such other routes as may be further agreed upon for the conduct of Nepal’s trade with and through Bangladesh in order to help Nepal develop and diversify her foreign trade.

The transit procedures prescribed in Nepal’s Treaty of Transit with India would apply mutatis mutandis in respect of such traffic-in-transit.

I shall be grateful if you could kindly confirm that the above sets out correctly the understanding reached between our two Governments."

I confirm that the foregoing correctly sets out the understanding reached between us.

Please accept, Excellency, the assurances of my highest consideration.

(P. Chidambaram)
Minister of State for
Commerce
For the Government of India.

Shri. Gopal Man Shrestha
Minister of Commerce
His Majesty’s Government of Nepal.

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6th December 1991
New Delhi

Excellency,

Our two delegations have today signed the Treaty of Trade, the Treaty of Transit and the Agreement on Co-operation between His Majesty’s Government of Nepal and the Government of India to control unauthorized trade.

In the light of the provisions for consultation as envisaged in each of the Treaties and the agreement, officials designated by the two Governments shall meet separately at the appropriate levels as and when necessary and determine procedures as may be appropriate to discuss and resolve any problem that may arise in the effective and harmonious implementation of the issues relating to trade, transit and unauthorized trade.

It is further agreed that there shall be an Inter-Governmental Committee consisting of the senior representatives of the two Governments to promote trade, facilitate transit and control unauthorized trade between the two countries as envisaged in the Treaties and the Agreement. The Committee shall meet at least once in six months alternately in Kathmandu and New Delhi. If any questions remain unsolved in the meetings of the official groups referred to in the foregoing paragraph, they shall be referred to this Committee which will find solutions thereof. The Committee may also deal with any matters on its own in order to further the purposes envisaged in the said treaties and the Agreement.

I shall be grateful if you would kindly confirm that the above sets out correctly the understanding reached between the two Governments.

Please accept, Excellency, the assurances of my highest consideration.

(Gopal Man Shrestha)
Minister of Commerce
For His Majesty’s
Government of Nepal.

Shri. P. Chidambaram
Minister of State for Commerce
Government of India.

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6th December 1991
New Delhi

Excellency,

I write to acknowledge the receipt of your letter of today’s date which reads as follows:

"Our two delegations have today signed the Treaty of Trade, the Treaty of Transit and the Agreement on Co-operation between His Majesty’s Government of Nepal and the Government of India to control unauthorized trade.

It is further agreed that there shall be an Inter-Governmental committee consisting of senior representatives of the two Governments to promote trade, facilitate transit and control unauthorized trade between the two countries as envisaged in the Treaties and the Agreement. The committee shall meet at least once in six months alternately in Kathmandu and New Delhi. If any questions remain unsolved in the meetings of the official groups referred to in the foregoing paragraph, they shall be referred to this Committee which will find solutions thereof. The Committee may also deal with any matters on its own in order to further the purposes envisaged in the said treaties and the Agreement.

I shall be grateful if you would kindly confirm that the above sets out correctly the understanding reached between the two Governments."

I confirm that the foregoing correctly sets out the understanding reached between us.

Please accept, Excellency, the assurances of my highest consideration.

(P. Chidambaram)
Minister of State for Commerce
For the Government of India.

Shri Gopal Man Shrestha
Minister of Commerce
His Majesty’s Government of Nepal.

6th December 1991
New Delhi

Excellency,

In the course of the discussion that led to the signing today of a Treaty of Transit between our two Governments, it was agreed that for the movement of goods from one part of Nepal to another through Indian territory, the procedure prescribed for export of goods from Nepal to third countries shall apply mutatis mutandis. Further, as regards the movement of baggage accompanying a person traveling from one part of Nepal to another through Indian territory, the Government of India shall prescribe a simplified procedure in respect of such articles of baggage as the Government India may specify as being likely to be retained in India having regard to the difference in prices in Nepal and India and other relevant factors. For other articles of baggage accompanying a passenger, movement shall be freely allowed.

I shall be grateful if you could kindly confirm that the foregoing correctly sets out the understanding reached between us.

Please accept, Excellency, the assurances of my highest consideration.

(Gopal Man Shrestha)
Minister of Commerce
For His Majesty’s
Government of Nepal.

Shri P. Chidambaram
Minister of State for Commerce
Government of India.

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6th December 1991
New Delhi

Excellency,

I write to acknowledge the receipt of your letter of today’s date which reads as follows:

"In the course of the discussion that led to the signing today of a Treaty of Transit between our two Governments, it was agreed that for the movement of goods from one part of Nepal to another through Indian territory, the procedure prescribed for export of goods from Nepal to third countries shall apply mutatis mutandis. Further, as regards the movement of baggage accompanying a person traveling from one part of Nepal to another through Indian territory, the Government of India shall prescribe a simplified procedure in respect of such articles of baggage as the Government of India may specify as being likely to be retained in India having regard to the difference in prices in Nepal and India and other relevant factors. For other articles of baggage accompanying a passenger, movement shall be freely allowed.

I shall be grateful if you could kindly confirm that the foregoing correctly sets out the understanding reached between us.

I confirm that the foregoing correctly sets out the understanding reached between us.

Please accept, Excellency, the assurances of my highest consideration.

(P. Chidambaram)
Minister of State for Commerce
For the Government of India.

Shri Gopal Man Shrestha
Minister of Commerce
His Majesty’s Government of Nepal.

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Commerce Secretary
Government of India
New Delhi
6th December, 1991

Excellency,

In the course of the discussions that led to the signing today, inter-alia, of the Treaty of Trade between our two Governments, it has been agreed that the initial grant of the facility of preferential entry for Nepalese manufactured articles under Protocol V para 1 with reference to Article V of the Treaty of Trade shall be for a period of five years. Further extension of the validity after the expiry of five years shall be subject to re-certification of the material composition of the articles by His Majesty’s Government of Nepal. Such extension of the validity shall also be for five years or till the validity of Treaty of Trade, whichever is earlier. The Performa clearance will be given within a period of four months from the date of submission of the Performa on best effort basis.

It has also been agreed in principle that the question of inclusion of the labor added in Nepal in manufactured articles for the purposes of Protocol V para 1 of the Treaty of Trade will be considered, subject to the formulation of a negative list of manufactured articles under Protocol V by mutual consultations between out two Governments. Articles which are not on the negative list will be given preferential access to the Indian market in accordance with Protocol V of Treaty of Trade.

I shall be grateful if you would kindly confirm that the foregoing correctly sets out the understanding reached between our two Governments.

Please accept, Excellency, the assurances of my highest consideration.

H.E. Mr. D.P. Pandey,
Commerce Secretary,
His Majesty’s Government of Nepal,
Camp: New Delhi.

(A.V. Ganesan)

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6th December 1991
New Delhi

I write to acknowledge the receipt of your letter of today’s date which reads as follows:

"In the course of the discussions that led to the signing today, inter-alia, of the Treaty Trade between our two Governments, it has been agreed that the initial grant of the facility of preferential entry for Nepalese manufactured articles under Protocol V para I with reference to Article V of the Treaty of Trade shall be for a period of five years. Further extension of the validity after the expiry of five years shall be subject to re-certification of the material composition of the articles by his Majesty’s Government of Nepal. Such extension of the validity shall be for five years or till the validity of Treaty of Trade, whichever is earlier. The Performa clearance will be given within a period of four months from the date of submission of the Performa on best effort basis.

It has also been agreed in principle that the question of inclusion of the labor added in Nepal in manufactured articles under Protocol V para 1 of the Treaty of Trade will be considered, subject to the formulation of a negative list of manufactured articles under Protocol V by mutual consultations between our two Governments. Articles which are not on the negative list will be given preferential access to the Indian market in accordance with Protocol V of Treaty of Trade.

I shall be grateful if you would kindly confirm that the foregoing correctly sets out the understanding reached between our two Governments."

I confirm that the foregoing correctly sets out the understanding reached between us.

Please accept, Excellency, the assurances of my highest consideration.

(Durga Prakash Panday)
Acting Secretary
Ministry of Commerce
His Majesty’s Government
of Nepal

H.E. Mr. A.V. Ganesan
Commerce Secretary
Government of India
New Delhi.

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16^th February, 1993
Kathmandu

Excellency,

As per the understanding reached between the Rt. Hon'ble Mr. Girija Prasad Koirala, Prime Minister of Nepal, and His Excellency Mr. P.V. Narasimha Rao, Prime Minister of India, as reflected in the Joint Communiqué issued at the end of the official visit of His Excellency the Prime Minister of India to Nepal on October 21, 1992, it was agreed, in accordance with the Treaty of Transit signed between the two Governments on December 6, 1991 that the movement of Nepalese private commercial vehicles from the Nepalese border to Calcutta/Haldia and Previous will be allowed on such vehicles being duly authorized by His Majesty's Government of Nepal or the Nepal Corporation, and the necessary undertaking being given by them to the Indian customs authorities.

I shall be grateful if you could kindly confirm that the foregoing correctly sets out the understanding reached between out two Governments.

Please accept, Excellency, the assurances of my highest consideration.

(Durga Prakash Panday)
Secretary
Ministry of Commerce for
His Majesty's Government of Nepal

His Excellency
Prof. Bimal Prasad
Ambassador Extraordinary & Plenipotentiary
Embassy of India
Kathmandu, Nepal.

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16^th February, 1993
Kathmandu

Excellency,

I write to acknowledge the receipt of your letter of today's date which reads as follow:

"As per the understanding reached between the Rt. Hon'ble Mr. Girija Prasad Koirala, Prime Minister of Nepal, and His Excellency Mr. P.V. Narasimha Rao, Prime Minister of India, as reflected in the Joint Communiqué issued at the end of the official visit of His Excellency the Prime Minister of India to Nepal on October 21, 1992, it was agreed, in accordance with the Treaty of Transit signed between the two Governments on December 6, 1991 that the movement of Nepalese private commercial vehicles from the Nepalese border to Calcutta/Haldia and Previous will be allowed on such vehicles being duly authorized by His Majesty's Government of Nepal or the Nepal Corporation, and the necessary undertaking being given by them to the Indian customs authorities.

I shall be grateful if you could kindly confirm that the foregoing correctly sets out the understanding reached between out two Governments."

I confirm that the foregoing correctly sets out the understanding reached between our two Governments.

Please accept, Excellency, the assurances of my highest consideration.

(Prof. Bimal Prasad)
Ambassador
Extraordinary & Plenipotentiary
Embassy of India
Kathmandu, Nepal.

His Excellency
Durga Prakash Panday
Secretary
Ministry of Commerce for
His Majesty's Government of Nepal

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16^th February, 1993
Kathmandu

Excellency,

As per the understanding reached between the Rt. Hon'ble Mr. Girija Prasad Koirala, Prime Minister of Nepal, and His Excellency Mr. P.V. Narasimha Rao, Prime Minister of India, as reflected in the Joint Communiqué issued at the end of the official visit of His Excellency the Prime Minister of India to Nepal on October 21, 1992, it was agreed to replace the letter exchanged at the time of the signing of the Treaty of Transit on December 6, 1991, relating to the movement of goods from one part of Nepal to another through Indian territory, by a new provision which runs as follows:

In keeping with the provisions of the Treaty of Transit signed by two Governments on December 6, 1991, it was agreed that for the movement of goods and Nepalese vehicles from one part of Nepal to another through Indian territory, the procedure prescribed for export of goods from Nepal to third countries shall apply mutatis mutandis except that there will be no cash deposit or bond system upon the necessary undertaking given by the Nepalese customs authorities. Further, as regards the movement of baggage accompanying a person traveling from one part of Nepal to another through Indian territory, the Government of India shall prescribe a simplified procedure in respect of such articles of baggage as the Government of India may specify as being likely to be retained in India having regard to the difference in prices in Nepal and India and other relevant factors. For other articles of baggage accompanying a passenger, movement shall be freely allowed.

I shall be grateful if you could kindly confirm that the foregoing correctly sets out the understanding reached between our two Governments.

Please accept, Excellency, the assurances of my highest consideration.

(Durga Prakash Panday)
Secretary
Ministry of Commerce for
His Majesty's Government of Nepal

His Excellency
Prof. Bimal Prasad
Ambassador Extraordinary & Plenipotentiary
Embassy of India
Kathmandu, Nepal.

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Prof. Bimal Prasad

Ambassador of India
Kathmandu, Nepal.

16^th February, 1993, Kathmandu

Excellency,

I write to acknowledge the receipt of your letter of today's date, which reads as follows:

"As per the understanding reached between the Rt. Hon'ble Mr. Girija Prasad Koirala, Prime Minister of Nepal, and His Excellency Mr. P.V. Narasimha Rao, Prime Minister of India, as reflected in the Joint Communiqué issued at the end of the official visit of His Excellency the Prime Minister of India to Nepal on October 21, 1992, it was agreed to replace the letter exchanged at the time of the signing of the Treaty of Transit on December 6, 1991, relating to the movement of goods from one part of Nepal to another through Indian territory, by a new provision which runs as follows:

I shall be grateful if you could kindly confirm that the foregoing correctly sets out the understanding reached between our two Governments."

I confirm that the foregoing correctly sets out the understanding reached between our two Governments.

Please accept, Excellency, the assurances of my highest consideration.

(Bimal Prasad)
Ambassador Extraordinary & Plenipotentiary
Embassy of India, Kathmandu
for the Government of India

His Excellency
Mr. Durga Prakash Panday
Secretary
Ministry of Commerce for
His Majesty's Government of Nepal

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December 3, 1996
Kathmandu

Excellency,

Consequent upon the understandings reached between the Commerce Secretaries of His Majesty's Government of Nepal and Government of India during their meeting in Kathmandu on July 4-7, 1996, and subsequent follow-up action thereon, it has been agreed to further liberalize the provisions made in the Treaty of Trade signed between the two Governments on December 6, 1991 by replacing the existing Part V of the protocol to the Treaty of Trade by a new Part V of the protocol enclosed herewith as Annexure 'A'#.

Further, in terms of Article XII, this Treaty is due to expire on December 5, 1996. It has been agreed that the existing Treaty be extended by modifying the present provision of renewal in Article XII to Treaty of Trade to read as below:-

ARTICLE XII

This Treaty shall remain in force up to December 5, 2001 and shall be automatically extended for further periods of five (5) years at a time, unless either of the parties gives to the other a written notice, three months in advance, of its intention to terminate the Treaty.

This Treaty may be amended or modified by mutual consent of the parties."

This letter and your Excellency's confirmation shall constitute an Agreement between our two Governments, which shall enter into force from the date of your reply.

It is requested that these understandings may kindly be confirmed.

Please accept, Excellency, the assurance of my highest consideration.

Yours sincerely,
(Mohan Dev Pant)
Secretary

H.E. Tejendra Khanna
Commerce Secretary,
Government of India
New Delhi, India.

# Annexure "A" to the protocol to the Treaty of Trade duly incorporated as a new part V of the Protocol.

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Kathmandu
December 3, 1996

Excellency,

I have the honor to acknowledge the receipt of your letter dated December 3, 1996, which reads as follows:

"Consequent upon the understandings reached between the Commerce Secretaries of His Majesty's Government of Nepal and Government of India during their meeting in Kathmandu on July 4-7, 1996, and subsequent follow-up action thereon, it has been agreed to further liberalize the provisions made in the Treaty of Trade signed between the two Governments on December 6, 1991 by replacing the existing Part V of the protocol to the Treaty of Trade by a new Part V of the protocol enclosed herewith as Annexure 'A'#.

ARTICLE XII

This Treaty may be amended or modified by mutual consent of the parties."

This letter and your Excellency's confirmation shall constitute an Agreement between our two Governments, which shall enter into force from the date of your reply.

It is requested that these understandings may kindly be confirmed.

I have further the honor to confirm on behalf of the Government of the Republic of India the foregoing understandings and to agree that Your Excellency's letter and this letter of confirmatory reply shall be regarded as constituting an agreement between our two Governments and shall enter into force from the date of this reply.

Please accept, Excellency, the assurance of my highest consideration.

(Tejendra Khanna)
Commerce Secretary,
Government of India

H.E. Mohan Dev Pant
Commerce Secretary
His Majesty's Government of Nepal
Kathmandu, Nepal

# Annexure "A" to the protocol to the Treaty of Trade duly incorporated as a new part V of the Protocol in page 27

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December 3, 1996
Kathmandu

Excellency,

In terms of Article VIII of the Agreement of Cooperation to Control Unauthorized Trade between His Majesty's Government of Nepal and the Government of India, this Agreement is due to expire on December 5, 1996. Consequent upon the understanding reached between the Commerce Secretaries of His Majesty's Government of Nepal and Government of India during their meeting in Kathmandu on July 4-7, 1996, and subsequent follow-up action thereon, it has been decided that this existing Agreement be extended by modifying the existing Article VIII to read as below:-

ARTICLE VIII

This Agreement shall remain in force up to December 5, 2001. It may be renewed for further periods of five years, at a time, by mutual consent subject to such modifications as may be agreed upon."

Further, it has been agreed that the existing Article III of the Agreement be amended and replaced by a new Article III, enclosed herewith as Annexure 'A'.

This Agreement and the amendments to Article III shall enter into force from the date of confirmation.

It is requested that these understandings may kindly be confirmed.

Please accept, Excellency, the assurance of my highest consideration.

Yours sincerely,

(Mohan Dev Pant)
Secretary

H.E. Tejendra Khanna
Commerce Secretary,
Government of India
New Delhi, India.

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Kathmandu
December 3, 1996

Excellency,

I have the honor to acknowledge the receipt of your letter dated December 3, 1996, which reads as follows:

"In terms of Article VIII of the Agreement of Cooperation to Control Unauthorized Trade between His Majesty's Government of Nepal and the Government of India, this Agreement is due to expire on December 5, 1996. Consequent upon the understanding reached between the Commerce Secretaries of His Majesty's Government of Nepal and Government of India during their meeting in Kathmandu on July 4-7, 1996, and subsequent follow-up action thereon, it has been decided that this existing Agreement be extended by modifying the existing Article VIII to read as below:-

ARTICLE VIII

This Agreement shall remain in force up to December 5, 2001. It may be renewed for further periods of five years, at a time, by mutual consent subject to such modifications as may be agreed upon."

Further, it has been agreed that the existing Article III of the Agreement be amended and replaced by a new Article III, enclosed herewith as Annexure 'A'.

This Agreement and the amendments to Article III shall enter into force from the date of confirmation.

It is requested that these understandings may kindly be confirmed."

Please accept, Excellency, the assurance of my highest consideration.

Yours sincerely,

(Tejendra Khanna)
Commerce Secretary,
Government of India

H.E. Mohan Dev Pant
Commerce Secretary
His Majesty's Government of Nepal
Kathmandu, Nepal

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December 3, 1996
Kathmandu

Excellency,

Consequent upon the understanding reached between the Commerce Secretaries of His Majesty's Government of Nepal and Government of India during their meeting in Kathmandu on July 4-7, 1996, and subsequent follow-up action thereon, the Government of India agreed to implement the following new simplified procedures for Nepalese containerized traffic in transit to and from Nepal so as to ensure the smooth and expeditious movement of Nepalese transit cargoes through the Indian customs authorities at Sea ports and Borders of India. Notwithstanding anything contained in the measures set out in the existing Protocol to the Treaty of Transit and Memorandum attached there to signed between His Majesty's Government of Nepal and the Government of India on December 6, 1991, it was agreed that the following new procedures set out in this letter of exchange shall be applied in the clearance of Nepalese containerized traffic in transit to and from Nepal and these procedures shall come into force on and from date of confirmation. These measures set out in this letter of exchange shall be appended as Annexure "A" to the protocol to the Treaty of Transit signed between our two Governments on December 6, 1991, as given below:-

Annexure "A" to the protocol to the Treaty of Transit

1. i. On arrival of the Nepalese containerized traffic-in transit, the Indian customs authorities posted at Seaports/Border Land Customs Stations, as the case may be, shall merely check the 'one time lock' of the container put on by the shipping agent or the carrier authorized by the shipping company and if found intact, shall allow transportation of the containerized cargoes, without examination of cargo unless there are valid reasons to do otherwise.

ii. In cases where the 'one time lock' on the container arriving at Seaports/Border Land Customs Stations in India are found broken/defective, the Indian customs authorities shall make due verification of the goods to check whether the goods are in accordance with the Customs Transit Declaration and shall put fresh 'one time lock' and allow of the new 'one time lock' shall be endorsed in the Customs Transit Declaration.

iii. The procedures set out in paragraph 1(i) and (ii) above shall be applicable to Nepalese containerized export and import cargoes moving to and from Seaports and Border Land Customs Stations in India.

2. The transit procedures in respect to the Nepalese containerized export and import cargoes as set out in para 1 above shall be continued and further streamlined for the expeditious movement of the containerized traffic in transit to and from the Inland Container Depots.

3. For Nepalese transit cargoes other than the containerized ones, the usual measures mentioned in the protocol to the Treaty of Transit and Memorandum attached thereto shall be applicable.

I shall be grateful if you could kindly confirm that the foregoing correctly sets out the understanding reached between our two Governments.

I have further the honor to convey the confirmation on behalf of the Government of the Republic of India of the foregoing understanding and to agree that Your Excellency's letter and this letter of confirmatory reply shall be regarded as constituting an agreement between our two Governments and shall enter into force from date of this reply.

Please accept, Excellency, the assurance of my highest consideration.

Yours sincerely,

(Mohan Dev Pant)
Secretary

H.E. Tejendra Khanna
Commerce Secretary,
Government of India
New Delhi, India.

Kathmandu
December 3, 1996

Excellency,

I have the honor to acknowledge the receipt of your letter dated December 3, 1996, which reads as follows:

"Consequent upon the understanding reached between the Commerce Secretaries of His Majesty's Government of Nepal and Government of India during their meeting in Kathmandu on July 4-7, 1996, and subsequent follow-up action thereon, the Government of India agreed to implement the following new simplified procedures for Nepalese containerized traffic in transit to and from Nepal so as to ensure the smooth and expeditious movement of Nepalese transit cargoes through the Indian customs authorities at Sea ports and Borders of India. Notwithstanding anything contained in the measures set out in the existing Protocol to the Treaty of Transit and Memorandum attached there to signed between His Majesty's Government of Nepal and the Government of India on December 6, 1991, it was agreed that the following new procedures set out in this letter of exchange shall be applied in the clearance of Nepalese containerized traffic in transit to and from Nepal and these procedures shall come into force on and from date of confirmation. These measures set out in this letter of exchange shall be appended as Annexure "A" to the protocol to the Treaty of Transit signed between our two Governments on December 6, 1991, as given below:-

Annexure "A" to the protocol to the Treaty of Transit

1. i. On arrival of the Nepalese containerized traffic-in-transit, the Indian customs authorities posted at Seaports/Border Land Customs Stations, as the case may be, shall merely check the 'one time lock' of the container put on by the shipping agent or the carrier authorized by the shipping company and if found intact, shall allow transportation of the containerized cargoes, without examination of cargo unless there are valid reasons to do otherwise.

The transit procedures in respect to the Nepalese containerized export and import cargoes as set out in para 1 above shall be continued and further streamlined for the expeditious movement of the containerized traffic in transit to and from the Inland Container Depots.

For Nepalese transit cargoes other than the containerized ones, the usual measures mentioned in the protocol to the Treaty of Transit and Memorandum attached thereto shall be applicable.

I shall be grateful if you could kindly confirm that the foregoing correctly sets out the understanding reached between our two Governments."

Please accept, Excellency, the assurance of my highest consideration.

Yours sincerely,

(Tejendra Khanna)
Commerce Secretary,
Government of India

H.E. Mohan Dev Pant
Commerce Secretary
His Majesty's Government of Nepal
Kathmandu, Nepal

5^th March, 2002

Excellency,

Consequent upon the understandings reached between the Commerce Secretaries of the Government of India and His Majesty's Government of Nepal during their meetings in Delhi from 27^th February to 2^nd March 2002, it has been agreed to extend the validity of all the eight articles of the Agreement of Cooperation between Government of India and His Majesty's Government of Nepal to Control Unauthorised Trade in their present form for a period of five years with effect from 6^th March 2002.

This letter and your Excellency's confirmation shall constitute an Agreement between our two Governments.
I shall be grateful if you could kindly confirm that the foregoing correctly sets out the understanding reached between our two Governments
Please accept, Excellency, the assurances of my highest consideration

Dipak Chatterjee
Commerce Secretary
Government of India

H.E. Mr. B.P. Acharya,
Secretary, Ministry of Industry, Commerce and Supplies,
His Majesty's Government of Nepal

5^th March, 2002

Excellency,

I write to acknowledge the receipt of your letter of today's date which reads as follows:

"Consequent upon the understandings reached between the commerce Secretaries of the Government of India and His Majesty's Government of Nepal during their meetings in Delhi from 27^th February to 2^nd March 2002, it has been agreed to extend the validity of all the eight Articles of the Agreement of Cooperation between Government of India and His Majesty's Government of Nepal to Control Unauthorised Trade in their present form for a period of five years with effect from 6^th March 2002.

This letter and your Excellency's confirmation shall constitute an agreement between our two Governments.
I shall be grateful if you could kindly confirm that the foregoing correctly sets out the understanding reached between our two Governments".

I confirm that the foregoing correctly sets out the understanding reached between us.

Please accept, Excellency, the assurances of my highest consideration.

(B.P. Acharya)
Secretary

H.E. Mr. Dipak Chatterjee
Commerce Secretary
Government of India

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Agreement of Co-operation, 1991 - India