TREATY OF TRADE BETWEEN THE

GOVERNMENT OF NEPAL AND THE

GOVERNMENT OF INDIA
 GROUP ASSIGNMENT
SUBJECT-PUBLIC INTERNATIONAL LAW
ASSIGNMENT TOPIC-TREATY MAKING

SUBMITTED TO
Mr.Keshab Bhattarai
Teaching faculty,National Law College,
Lalitpur, Nepal
Date-Dec 13,2022.

SUBMITTED BY
 Yashoda Kumari Chand
 Sabina Ghising
 Suruchee Sharma
 Rakshya Jaishi
 Amshu wagle
 Samasti Budha
 Aashansa Aryal
 Aruna Limbu
 Bijaya Lama
 Soheb Khan
 Subash Adhikari
 Mukesh Kumar Shah
 Isha Raut
 Apara Neupane
Preamble
The Government of India and the Government of Nepal
(hereinafter referred to as the Contracting Parties), Being
conscious of the need to fortify the traditional connection
between the markets of the two countries, have decided to
conclude a Treaty of Trade in order to expand trade between
their respective territories and to encourage collaboration in
economic growth and development through their respective
representatives by standing on the principle of Pacta Sunt
Servanda.
Who, having exchanged their full powers and found them
good and in due form have agreed as follows:

Article I: Definition
1. "Treaty" refers to "The Treaty Of Trade Between The
Government of India and The Government of Nepal"
2. "Trade" here refers to "All form of transactions of goods
and services as allowed by this agreement".
3. "Traditional routes" refers to mutually accepted routes
by contracting parties.
4. “Compensation” refers to “amount of loss need to be paid
by other party”.
5. “Quantitative Restrictions” refers to “specific limits on
the quantity or value of goods”.
Article II: Objectives
1. The trade between the two contracting parties shall be
conducted through the mutually agreed routes as are
mentioned in the Article III.
2. Both Contracting Parties will facilitate cross-border flow
of trade through all trade related procedures and
development of border infrastructure.
3. The Contracting Parties shall undertake measures to
reduce or eliminate non-tariff, para-tariff and other
barriers that affect promotion of bilateral trade.
4. Both parties shall take measures to exchange trade
related data with each other from time to time, with a
view to facilitate the flow of trade and transport.
5. All the goods of Indian or Nepalese origin shall be
allowed to move to Nepal or India respectively without
being subjected to any quantitative restrictions,
licensing or permit system.
6. The Contracting Parties shall take appropriate measures
and co-operate with each other to prevent unauthorized
import and export of goods which are prohibited or
restricted from the territory of the other Contracting
Party.
7. In the process of imports under the Treaty, if the way or
quantity is seem to cause threat or serious injury to the
domestic industry, investigation for application of
safeguard measures may be initiated and in such case the
party shall immediately deliver written notice to the
other Party relating to serious injury or threat and the
reasons for it.
Article III: Agreed Routes
1. As per the provision of Article II sub-article 1 agreed
routes for mutual trade are as below :
i. Biratnagar/Jogbani
ii. Setobandha/Bhimnagar
iii. Rajbiraj/Kunauli
iv. Siraha,Jankapur/Jaynagar
v. Birgunj/Raxaul
vi. Prithvipur/Sat(Kailali)/Tikonia
vii. Dhangadhi/Gauriphanta
viii. Mahendranagar/Banbasa
ix. Mahakali/Jhulaghat (Pithoragarh)
x. Darchula/Dharchula
xi. International Airports connected by Direct Flights
between Nepal and India (Kathmandu/Delhi,
Mumbai, and Chennai)
Article IV: Restrictions
The commodities subject to restrictions/prohibitions are as
below:
a. Alcoholic Liquors/Beverages (*) and their concentrates
except industrial spirits, Perfumes and cosmetics with
non-Nepalese/non-Indian Brand names,
b. Cigarettes and Tobacco

Note: Government of India may, in consultation with the

Government of Nepal can modify the above list.

(*) Nepalese beers can be imported into India on payment of

the applicable liquor excise duty.
Article V: Special Provision
1. The contracting parties agrees to exempt from basic
customs duty and quantitative restrictions upon the
import and export of some primary product.
2. The following primary products would be eligible for
preferential treatment:
i. Agriculture, horticulture, floriculture and forest
produce,
ii. Minerals which have not undergone any processing,
iii. Rice, pulses, flour, atta, bran and husk,
iv. Timber,
v. Jagger (gur and shakar),
vi. Livestock, Poultry bird and fish,
vii. Bees, bees-wax and honey,
viii. Raw wool, goat hair, bristles and bones as are used
in the manufacture of bone-meal,
ix. Milk, homemade products of milk and eggs,
x. Ghani-produced oil and oilcakes,
xi. Herbs, ayurvedic and herbal medicines, including
essential oils and its extracts,
xii. Articles produced by village artisans as are mainly
used in villages,
xiii. Akara,
xiv. Yak Tail,
xv. Stone aggregate, boulder, sand and gravel,
xvi. Any other primary products, which may be mutually
agreed upon

3. Both parties shall make provisions so that no-

discrimination will be made in tax, including central
excise and other benefits of trade. This would be made
effective from the date to be mutually agreed to.
Article VI: Dispute Resolution
1. In case of problems arising in clearance of goods at the
customs stations, and when the quality of goods in would
deteriorate or perishes due to delays, such problem shall
be dealt at the joint meeting of the local authorities
comprising of the followings:
(a) Customs officers
(b) Food test officers
(c) Representatives of local chambers
(d) Any other local officials nominated by the respective
Government.
2. However the case will be referred to the respective
Government, if the resolution could not be settled
through local authorities.
3. Issues on other trade related matters will be referred to
an Inter-Governmental Committee (IGC) led by
Secretaries in the Ministry of Commerce of the two
Governments.
4. The Committee shall meet at least once in a six months
alternatively in Kathmandu and New Delhi. An Inter-
Governmental Sub-Committee (IGSC) shall be
constituted at the level of Joint Secretaries of the Ministry
of Commerce of the two countries, which shall meet at
the interval of two IGC meetings. The Inter-
governmental Subcommittee shall be responsible for
 taking up extensive consultation and decisions on trade
and trade related issues with a view to facilitating
bilateral trade.
5. Any disputes related to trade as agreed in this contract
shall be solved by mutual consent of the government of
both states as mentioned in sub-article 2 of Article VIII.
6. In case of blockade by the contracting party, disputes
need to be solved by mutual consent of the state and
proper compensation should be given to the state after
the blockade finish.
Article VII: Termination of the treaty
This treaty shall be terminated only in following condition
a. By the mutual consent of contracting party,
b. In case, if another party violated the contract.
Article VIII: Enforcement
1. Given the mutual consent thereto, the Contracting
Parties shall have the right to make necessary
amendments to this agreement.
2. This agreement shall take effect as of the date of the
latest notification in writing of the fulfilment by the
Contracting Parties of a procedure inside each state
required for this agreement to become effective.
3. The Nepalese parliament ratified this Agreement by its
Federal Law.
4. The Agreement came into force on December 12, 2022.
5. This Agreement shall be valid for a term of 10 years and
shall be automatically extended each time for another
five years' term until either Contracting Party notifies the
other Contracting Party not later than 10 months prior to
the expiration of that effective term of its intention to
terminate this Agreement.
Done in Kathmandu in December 1, 2022 in duplicate, each
one in the Hindi, English and the Nepali languages, all the text
being equally valid.
Have for this purpose agreement party appointed as their
representatives the following persons, namely,

For the Government For the Government

of Nepal of India

(Yashoda Kumari Chand) (Sabina Ghising)

Minister of commerce Commerce and industry
and supplies minister

Signature Signature