REGISTERED No. D. 221
The Gazette of India
EXTRAORDINARY
PART I—Section 1
PUBLISHED BY AUTHORITY
No. 148] NEW DELHI, FRIDAY, SEPTEMBER 4, 1970/BHADRA 13, 1892
Separate paging is given to this Part in order that it may be filed
as a separate compilation.
MINISTRY OF FOREIGN TRADE
PUBLIC NOTICE
IMPORT TRADE CONTROL
New Delhi, the. 4th September 1970
SUBJECT.—Deposit of rupee equivalents by imports under Direct payment procedure as applicable to foreign credits—Revision of composite rate between Canadian Dollar and the Indian Rupee.
No. 133-ITC(PN)/70.—
1. Change in Canadian Dollar par value (I.M.F. Parity rate).—With effect from 1st June 1970, the I.M.F. parity rate (par value) for Canadian dollar ceased to operate, and floating rates were permitted by I.M.F. Since then the floating rates are continuing, and the new par value of the Canadian dollor has not yet been established with I.M.F.
2, Change in composite rate.—Conseguent upon the fluctuations of the Canadian dollar with effect from 1st June 1970, the composite rate between the Canadian dollar and the Rupee, applicable for recovery of rupee equivalents from the impor- ters under the Direct payment procedure under the credits from Canada and IBRD/IDA etc., needs suitable revision. Since the new parity rate of Can. $ is not yet fixed, and meanwhile the rates are fluctuating daily, the revised composite rate also cannot be fixed. The following arrangements ere, therefore, notified for the
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856 THB GAZETTE OF INDIA EXTRAORDINARY [PART I—SEC. ItInformation and guidance of all concerned. These arrangements will be applicable with effect from 1st June 1970 i.e. for disbursements viade in Can. dollarB from 1st June 1970 onwards, and until further orders.
3. Method of Calculation of new composite rate —The rupee equivalents of dis- bursements In Canadian $ should be calculated with reference to the London Daily selling rates for Canadian $ ruling on the date of payment in Canada which are available with all the authorised dealers in foreign exchange. The exact amount payable should be worked out in the following manner.
Since the London rates are expressed in terms of £ sterling only (i.e., Sterling £' l=Canadian $ ) the same should first be converted in terms of rupees, by applying the rate of conversion of sterling Into rupees, which is at a fixed rate of exchange <§> £ 5.5180=Rs. 100, (B.C. Selling Rate for sterling in India). This conversion will give the rate of Canadian $ in terms of rupees 100 (I.e. Rs. 100= Canadian $ ). Thereafter, the rate should be worked out in terms of one Canadian $ (i.e. Canadian $ l=Rs ) anil, to this should be added a margin of 0.70 % to arrive at the applicable rate of recovery of rupee equivalents in question.
4. Responsibility of impoters.—All importers holding import licences are advised to note the above changes in the composite rate carefully and also ensure that the necessary rupee deposits made by thenv, through their banks, are calculated with reference to the above rates In cases deposits have already been made at the old composite rates of Canadian $ l=Rs. 7-01, the importers should take immediate steps to maike good the short deposits through their banks, who have the information regarding the day-to-day London rates.
5. Change in import licence values.—Since the London rates, and consequently the above rates applicable for recovery of rupee equivalents ate higher than the old I.M.F. parity and composite rates, some upward adjustments in the values of import licences would also be necessary to the extent of payments made in Canadian dollars with effect from 1st June 1970. However, since the new rates are not fixed but would vary from day to day, it is not possible to allow any specific increase in the values of the licences and to amend the licences accordingly In advance. It has therefore, been decided, that, as a very special case, the authorised dealers in foreign exchange will allow deposits of such additional amounts, as may be necessary, In terms of the formula indicated in para 3 above, over and above the value of the relative import licence, without insisting upon any formal increase and amendment of the licence value.
6- Change in Bank Guarantee amounts.—The Bank Guarantees would also need to provide that the Banks undertake to make additional deposits @ the new rates However, since the new rates are not fixed but vary from day to day, the Bank Guarantee values cannot be amended for definite amounts. The Importers should therefore, amend their existing Bank Guarantees, where necessary, so as to provide that the Bank undertakes to make such additional deposits as may be necessary in terms of this Public Notice.
7. Change in licensing conditions —The licensing conditions, as announced in Public Notices Issued from time to time/Bank Guarantees governing individual Import licences may be deemed to have been amended In the light of this Public
8. GeneraL—The various authorised dealers in foreign exchanges are being also
gS8 a b°Ve S P 6 d al a r r f l n"e m"nts for their informed "S
R. J. REBELLO,
Chief Controller of Imports & Exports.
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