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REGISTERED NO. D. 221

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 48] NEW DELHI, TUESDAY, MARCH 19, 1968/PHALGUNA 29, 1889

Separate paging is given to this Part in order that it may be filed

as a separate compilation.

MINISTRY OF COMMERCE

PUBLIC NOTICE

IMPORT TRADE CONTROL

New Delhi, the 19th March 1968

SUBJECT: —Issue of import licences to established importers against the fifth U.K.

Kipping Loan.

No. 44-ITC(PN)/68.—Attention is invited to the Ministry of Commerce Public Notice No. l-ITC(PN)/68, dated the 1st January, 1968 on the above subject. The terms and conditions which will be applicable to the licences issued against the above mentioned loan are given in Annexure II to the Public Notice mentioned above.

2- The revised schedule of conditions to be attached to the import licences issued under the U.K. Kipping Loan of £ 5 million (UK/India Non-Project Loan 1967) is published for the information of trade

( 205 )

UK/INDIA NON-PROJECT LOAN—1967

(Fifth Kippjng Loan—£ 5 Mill.)

Revised Schedule of conditions arrached to the import licences issued under the U.K. Kipping Loan of £ 5 Million (UK/INDIA NON-Project Loan, 1907.) Licence No. —— — — KQ(67), Dt- —

1. The licence is issued with an initial validity period of twelve months only, and can be revalidated only on the basis indicated under conditions 2 below,

2. Ordering-—Firm orders for the tul] value of the licence must be placed on ihe suppliers in the United Kingdom, the Channel Islands or the Isle of Man with- in three months from the date of Issue of the import licence.

The licence may be submitted to the Chief Controller of Imports and Exports lor revaluation only after firm orders for the full value have been placed and On the basis of dates of delivery (Shipment) of goods indicated by the supplier.

3. Special points to be looked into while placing orders.

(1) Organ of Goads.—While placing flrm orders, the licensee must ensure by & provision in the contract that the goods purchased are or will be wholly produced or manufactured in the United Kingdom, the Channel Islands or the Isle of Man. Where the contract also provides for works and Services, in connection with the purchase of such goods, it must be ensured by a suitable provision In the contract that such works and services are or will be provided by persons ordinarily resident or carrying on business m the United Kingdom, the Channel Islands or the Isle of Man.

NOTJL;— If, in any case, contract is placed on the Indian Agent oi the foreign supplier the contract with the Agent should Indicate the name and address of the U-K. Supplier to whom payments would be made by the C A.O. London directly out of U-K. Credit. In such cases only the sterling portion of the contract will qualify for payment out of U.K. Credit. Copies of such contracts (or of contracts placed by Indian Agents with U.K. Supplier if there are such separate contracts) should be sent to the Ministry of Finance, in the manner indicated in para 5 below: —

12) Pay menu— Payments to the U.K., Channel Islands or Isle of Man suppliers against the import licence are to be effected in sterling, directly out of the UK- Credit, through the Chief Accounting Officer, High Commission of India in London- The licence will not therefore, be valid for making remittance to the supplier from India. The licensee should therefore, mention in the contract that payments to the U.K., Channel Islands or Isle of Man contractor are intended to be made in sterling, out of the U.K. Credit by production by the licensee of the documents prescribed In para 6 below to the Chief Accounting Officer, High Commission of India in London,

A clause should be included In the contract to the ejfjfect that the contract it sub- ject to and will become effective with the approval of the Ministry of Ovtrseas Development of the U-K. Government to the payments being met out of the U.K- Credit-

(3) Bank Guarantee—While placing orders, and where the suppliers require, the importers may furnish suitable Bank Guarantees? to their suppliers- See the concluding sub-paragraph of para 7(2) on page 5 find the Bank Garanto" form in Appendix IV.

All payments must be co?n,pleted by 30th June 1969.

4 Report on Ordering:—Within a week of the placing of contract, a report, in triplicate, should be sent by the licensee to the Econnmic Aid Accounts Section (Shri P- C Jain) Ministry of Finance, Jeewan Deep Building, Parliament Street, New Delhi with a copy to the Ministry of Industrial Development and Company Affairs (Deptt of Industrial Development, Foreign Exchange Section), Udyog Bhavan, New Delhi, IN THE FORM set out in APPENDIX I to these conditions, duly signed.

[PART I - S I C, I] THE GAZETTK OF INTHA EXTRAORDINARY ^37

S. Notification of contracts and amendments therptn.—Within a fortn'cht of placing of contracts, and in anv event sufficiently In advnncp OF the expected date nf delivery nf the goods, the licensee should forward (include? their complete addresO 3 (Three) copies of the contract to the Economic Aid Accounts Branch CRhri P C. Jain, Asstt. Accounts Officer¹). Dentt, of Economic Affairs, Ministry of Finance, Jeewan Deep Buildine. Parliament Street New Delhi aecornpaine'l by 3 conies of the "Cnvtrart Certificate" from the U. K Channel Islands or Isle of Man Contractor IN THE FORM ATTACHED (APPENDIX IT) duly signed bv him. The Dentt. of Economic Affairs in the Ministry of Finance will arrange through the Chief Accounting OflWr High Commission of India in London to file ft copy of the same with the Ministry of Overseas Development of the U.K Government for obtaining their approval to the payments under the contract being made out of the U K. Credit As soon as possible after the approval of the TT. K. Government to the contract i<9 obtained or. in case, iuch approval j"> pot wanted by TT. K. Government the Licen=pp and also the U.K. ffunplier will he informed of tVu* same dirpetiv hv the Chief Accounting Officer Hieh Commission of Indifr London, and nn further advice of contract apnroval/reiection will be issued by the Economic Affairs Deptt of the Ministry of Finance

The contract ai accepted by the Ministry of Overseas Development of U. K Government will then be eligible foi Direct payments out of the Credit. Aa 'no payments can be mad" unless the contrart Is approved by the TT. K Government, If is most imperative for the licensee to ensure that copies of contracts/notifications alonirwith supplier** "Contract Certificate" are forwarded to the Ministry of Finance at the earliest aid, In anv ease, well in advance of the initial payment For this purpose, the "Contract Certificate" should be arranged to be obtained from the Suppliers promptly at the time of acceptance of each contract

If at any time a contract ("being a contract in respect of which approval of U.K. Govt has been obtained or is pending) U amended, or 1f liability Is incurred or Is to be incurred thereunder to a greater or lesser amount than the amount specified m the "Contract Certificates", the licensee should promptly forward to th" Economic Aid Accounts Section of the Department, of Economic Affairs in the Ministry of Finance the relevant supnlementarv or revised documents—copies of amendment? to contracts and revised "Contract Certificates"—so is to enable them to notify the same to the UK Govt. for obtaining their approval Notifications of such amend- ments is very important, because the U.K. Govt will make payments under a con- tract from time to time, only to the extent the contract has been approved by them

As soon as approval to an amendment to the contract/order is obtained from the U.K. Govt., the importer will be notified of the same in the same manner as was done for the contract

Important Note.—While forwarding the above documents to the Ministry of Finance It must be ensured that the complete number of the relative Import licence including the suffix "K Q(67)" is clearly indicated on each document

fi. Documental on.—As and when payments to the U K, Channel Islands or Isle of Man Contractor fall due in respect of a Contract duly approved in the manner indicated in para B above, the licensee should promptly arrange to collect the following documents and forward the same direct to the Chief Accounting Officer (C.A.O ). High Commission of India, 55 Jermun Street, London, for arrang- ing necessary payments to the supplier out of the UK. Credit: —

(i) Two copies of the original invoice of the concerned U.K., Channel Islands or the Isle of Man Contractor or three photostat copies or duplicates of such invoice, duly signed by the supplier;

(11") A specific authority from the Importer to the C.A.O.. High Commission of India, London authorising him to make payment of the said Invoice; (HI) Two copies of a "Payment Certificate" in respect of each invoice from the concerned U.K.. Channel T-rtandi or the Isle of Man Contractor TN THE FORM ATTACHED (APPENDIX III); and

(tv) Evidence in the form of Treasury Challan that rupee equivalent of the sterling amount to be paid to the U.K., Channel Islands or Isle of Man Contractor has already been deposited into the Govt. of India's account in the Reserve Bqnk/State Bank/Government Treasury. The rupee equivalent should be calculated at the rate of Rs. 18.18 per £ sterling and the head of account to which the runees ore to be deposited win be- "Section T—Deposits and Adyancps—Part IT Deposits—Deposit not

bearing interest—C. Other Deposits account—Civil Deposits-Deposits for Purchases abroad—Purchases under U.K. /India Non-Pro1eet Loan Agreement of £ 7 Million (Fifth klpotng Loan of £ 5 million.)¹'. In me ireasury Challan, The Accountant General Central Revenue, New Delhi, should be shown as the Accounts Officer who will adiust the Credit.

NOTES: 1. In case where rupee deposits are made outside Delhi/New Delhi one copy of the Treasury Challan should also be forwarded to the Accountant General Central Revenue, New Delhi

2. It should be noted very carefully that the Exchange ra+e Indicated above Is the prevailing composite rate of exchange and anv change In the same, as and when decided upon by the Govt. of India will be notified to the Importers.

3. While forwarding these documents, the number and date of the letter of C.A O . High Commission of India, London, advising contract approval of the U.K. Govt should be Indented in the forwarding letter.

The Chief Aoounting Officer, High Commission of India, London, will arrange to make payments accordingly to the U K , Channel Islands or the Isle of Man Con- tractor and advise the licensee and Economic Aid Acounts Section in the Daptt. o£ Eron jrnie Affairs of the Ministry of Finance of the sarrc.

7 Speonl and Important Conditions-—(1) As paymp-ils to U-K , Channel Island-, or isle nf FVTRn Suppliers are dependent upon timely s ibrmssion of the above men Uonei documents to the Chief Accounting Officer, High Cnpi-nisslon of India, London, il is verv mvessary 1hat these documents are collected and submitted iu completi shape ti the Ministry of Finance or to the I hict Accounting Officer as the case mav be. with Ihc utmost expedition, so that Ihe Suppliers may IJP paid pronpily nnd are not put io any difficulty on this ai count. All possible steps, including such special steps as may be deemed necessary, should be taken in this regard to follow promptly and carefully the detailed procedure set out above so as to elimin ite all delays In making payments to Suppliers Although necessary steps are already beln'

o (2) With reference to iten 6 above, it is clarified that as payments to the con- tractors would fall due only upon shinment of the goods, the documents referred to therein should be collected only after the goods have been shipped by the foreign shippers- Thus in the contracts placed with the suppliers it can be stipulated thai one set of documents—copies of the original Invoices, the "Payment Certificate" in the prescribed form and also one copy Of the Ocean Bill of Lading should be airmailed to the importer in India direct without delay to enable the latter to arrange payments through the C-A.O , London, after mal-ing necessary rupee deposits in favour of the Govt. For this purpose copies of the invoices and Bill of Lading will suffice and the original shipping documents arc not required. The original shipping documents should, therefore, be arranged to be collected by the importer from the shippers directly so as to enable them to tike delivery of the goods If necessary, and where the U.K Suppliers so insht, the importer can make arrangements with the UK. suppliers for receiving original shipping documents thiough an Indian Bank to be released to the importer apainst proof of deposit of (he ripee equivalents of the Invoice value and of transmission of those documents tf, the CA O-, London for making payments to the U-K Suppliers out of the V-K.. Cr-dit. This arrangement will serve as a sufficient guarantee of payment to the U K Suppliers at the time of release of original shipping documents. In cases where the UK. Suppliers require a Bank Guarantee by the importers. 1 he latter mav furnish such a guarantee from his banker (in the specimen form indicated in Appendix IV) and forward it to their suppliers at the time of conclusion of theii purchase orders- with them. This bank guarantee will be issued by the i ™o r t^s bank (any authorised dealer in foreign exchange) Ruaranteeins thst withm the specified period of 7 days after the receipt of shloping documents, they shall arrange to deposit the necessary rupee equivalent and forward the documents to C-A.U-. London for arranging payment to the UK. Supplier.

It is clarified that the above mentioned Bank Guarantee Is not obligatory in all cases, but Is to be executed only in those cases where the suppliers require tho same. Further the guaiantee Is to be given by the Importers direct to their sup- pliers (at the time of placing oiders) and not to the Government of India.

8. Refund from U.K. Suppliers.—li any money is received by the licensee from the U.K. Supplier or a suaranter as a refund then the same should be reported to Shrl P. C- Jain, Assistant Accounts Officer. Department of Economic Affairs, Min- istry of Finance, Jeewan Deep Building, Parliament Street, New Delhi, with a¹ copy to the Ministry of Industrial Development and Companv Affairs, (Doptt. of Industrial Development, Foreign Exchange Section), Udyog Bhavan, New Delhi-11.

9. The licensee should apprise the supplier of any special provlbicn in the i nunrt licence which may affect the sup-oilers in carrying out the transaction.

10. It should be understood that the Government of Tndia will not undertake any responsibility for disputes, if any, that may arise between the licensee and suppliers

11. The licensee shall promptly comply with any directions, Instrrctions or orders issued by the Government regarding any and all matters r/' i>->[* fn m or pertaining to the import licence and for meeting all obligations un lei tbr- credit agreement

12. Tirenrh or Vifl⁷ 1' 111 — A T, Breach or violation of conditions set forth in ihe dbove clauses will r ' 1 in ,>p-t 1 iriate Ration undpr the rmports and F" oort'i 'Control) Act.

APPENDIX 1

NOTIFICATION OF CONTRACT

Umied Kingdom/Indict Now-project I ('an. 1967

To

T'be Ministry of Overseas Development,

F.I and House,

SHse Place,

LoniJnn, S-W.l,

Nolihcatlon nf Contrad No — -

The following ere details of a contract under which it is proposed that pnvnirnts ••-hall be made in accordance with the terms and cordltioris of the above Imn

1 Name and addrpss of U K. Contractor.

2. Pate of Contract.

1 Name of Indian purchaser.

4 Short description of goods and/or works or senicps:

!S. Value of Contract

fi Terms of payment

7. Import Licence No. & Date:

Signed on behalf of importer. -

Date — ————— —

APPENDIX II

United Kingdom/Indid Non-project Loan, 1967

CONTEACT CEftTIFICATE

Particulars of Contract

I.

Import lincence Date Date of contrad

Contractor Nymbe •

Number

2.

United Kingdom

Mon-Unittd Kingdom Origin

Origin

Description of goods works and services to be sup llied to the

Other currtucy, if any.

Sterling

3- Total (Estimated) con- tract price payable by Purchaser

Description

4-

Amount fn respect of non-United Kingdom goods and services.

(a) Goods or materials.

(b) Work to be done or

n

r.

Estimated amounts if anv, paid or to be paid by the contractor in respect of gOod9 or services of non-United Kingdom origin pro- cured or to be procured by the Contractor for the purposes of the con- tract.

services performed I

Purchaser's Countrj

(c) Know-how.

(d) Plans, designs and

a-

technical document tion.

'c) Other services.

•i I hereby declare that I am employed in the U.K. by the Contractor named below and have the uuthortty to sign this certificate on behalf of the Contractor name 1 helow. I hereby undertake that in performance of the Contract, no goods or s^i vices which are not of United Kingdom origin will be supplied by the Con Ira lor other than those specified In paragraph 4 above.

Signed. — „ _

Position held- —„ .—. —

For and on behalf of •—• —

(Nqme and address of

Contractor — —~

Datp. • —

NOTF.—For the purposes of this declaration the United Kingdom includes the

Channel Inlands and the Isle of Man

APPENDIX III

TTvited Kingdom /India Nov-Project Loan, 19fl7

PAYMENT CERTIFICATE

I hereby certify that—

(D the payments referred to in the invoices listed below, which or copies of which accompany this payment certificate, fall due and are to be made in respect of Contract No dated — between the contractor named below and—— (Purchaser) ••• and are In accordance with the particulars of this contract notified W

[PART I-JiFf.. 1] l'HE GAZElllv Ot INDIA E\ IRAORDJNARY 211

the contract certificate signed on behalf of the said contractor on- —

Amount Short debwipuon DA\.H Name and address

of Contractor

Contractor's Invoice No.

oi goods works imd/or jcrvicet.

fill there are included in the above mentioned invoices the following amount*, in respect of the non-United Kingdom goods or services specified in paragraph 4 of the contract certificate:

(a) £ (d) £ (b) £ (e) £ (c; £

(Ui) aoart from the amounts specified in paragraph (ii) all the amounts speci- fled in paragraph (i) are payable in respect of goods and services ot United Kingdom origin.

(!„) I have the authority to sign this certificate on behalf of the Contractor

named below.

Signed —

Position held -— ~~

for and on behalf of — —• '—~

Name and address of Contractor — —

Date —

N O T E- F or the purpose of this declaration the United Kingdom includes the

Channel Iilands and the Isle of Man.

APPENDIX IV

FORM OF BANK GUARANTEE

To ' (Suppliers name and address)

In consideration of M/s. hereinafter called 'Suppliers,', laving agreed to ship goods as described in the contract bearing No. -oncluded on between the said suppliers and M/s. hereinafter referred to as 'importers', without insisting upon prior opening of a etter of credit, we, as bankers to the said importers, hereby guarantee as follows:

As and when payments fall due to the suppliers' under the said contract, tho juppliers should forward original shipping documents including invoices and Bills of Lading to us for transmission to importers. On receipt of sucli documents, we shall arrange to deposit within 7 days thereafter the rupee equivalent of the in- voiced amount into the account of the Govt. of India with the R.B.I./SB,I /Govt Treasury under the head of account indicated in para JSlo. 6(iv) of the licensing .-onditions for U.K. India Non-Project Loan 1967- The deposit will be made at the rate of Rs- 18.18 per £ Sterling. We shall also arrange to forward within 7 days of the making of the deposit the relative documents and the treasury challan evid- encing the said deposit to the Chief Accounting Officer, High Commission of India, 65, Jermyn Street, London for arranging payments in pound sterling to the above mentioned suppliers-

We agree and undertake not to lelease the original documents (invoice and Bill of Lading) to the importers until the deposit as aforementioned is made into the Govt- Account.

We agree and undertake not to ievoke this Guarantee unilaterally during its currency

The Guarantee contained herein shall not be affected by any change in the constitution ot the said importers or our bank.

Our liability under this guaiantee shall not exceed Rs. •.

Tnis guuiantee will remain valid upto ——- . If no action is brought against us within a period of one year from the date of expiry of this guarantee, we shall stand released from all liabilities under this guarantee.

Place

Signature of the authonsed officer

Udte:

of the Bank and Bank's full address.

NOTE I- The rate ot exchange adopted for calculation of rupee equivalent in the present composite rate which is subject to change as .and when notified by Govt-

2 The Bunk Guarantee is to be executed on a non-Judicial stamp paper, the value of stamp being adjudicated by the Collector of Stumps in accord anie with the provisions oi Section 31 oi Indian Stamp Act, 1899

.',. The period of validity of the yuaruntee should be as negotiated between the supplier and the impoiter to suit individual circumstances.

4 In case the importers./bunk fulfil their obligations under this guarantee earlier than tin- validity date or other circumstunces prevail under which the necessity for this guaiantee no longer exists, it is open to the impottei/bank, with the concurrence from the supplier obtained in writing to have the guarantee released at any time earlier than the expiry of the guarantee.

P. D. KASBEKAR,

Chief Controller of Imports & Exports.

PHINTED IN INDIA BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESb, NICW DELHI AND PUBLISHED BY THE. MANAGER Of" PUBLICATIONS, DELHI. 1 0 68