REGISTERED No. D. 221
The Gazette of India
EXTRAORDTNARY
PART I—Section 1
PUBLISHED BY AUTHORITY
No. 26] NEW DELHI, TUESDAY, FEBRUARY 23, 1971/PHALGUNA 4, 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 23rd February 1971
SUBJECT.—Imports from U.S.A. under U.S. AID Commodity Programmer
Assistance—AID Loan No. 386-H-207.
No. 20-ITC(PN)/71-—Imports are aware that import licences granted under the U. S. AID Commodity Programme Assistance were hitherto subject to the condition that no order can be placed on a U. S. Supplier if it involved opening of a letter of credit or an individual shipment of value less than Rs. 41,250/- ($5500) (CIF).
In order to meet certain small-value requirements of industry, particularly in regard to spare parts, components etc, the matter has been reviewed, and it has been decided, with the concurrence of the U. S. AID authorities, to waive the minimum value limit for licensing (Rs. 82,500) as well as the minimum value-
( 359)
360 THE GAZETTE OF INDIA EXTRAORDINARY [PART I—SEC. 1]limit for an individual order or letter of credit and shipment under AID Loan No. 207 in respect of a limited number of items where the import requirements are considered to be generally and genuinely of a small value. The procedure of jpayment to the U. S. Supplier agreed to in respect of such small-value transactions is that of reimbursement (by U. S- AID) of payments made directly by Indian importei's to U. S. Suppliers as against the letter of commitrnent-cum-letter-of- credit procedure prescribed fQr transactions under the U. S, AID Programme, Because of this difference in payment procedure the import of small-value requirements in the said categories of items will be permitted only under separate licences granted under the reimbursement procedure.
Ministry of Foreign Trade Public Notice No. 19-ITC(PN)/71, dated the 22nd February, 1971 announces the selected list of items eligible for import under U. S- AID Loan No. 207, which qualify for Import in small value (hereinafter referred to as qualifying items) as well as the details of the reimbursement procedure of payment which would govern the import. The import of all other items eligible under U. S- AID Loan No. 207 will continue to be subject to the existing minimum value limit of % 5500 (CIF) in respect of each shipment and will be governed by the Letter of Commitment procedure as usual. The terms and conditions governing the import of these other items are laid down in Ministry of Foreign Trade Public Notice No 17-ITC(PN)/71, dated the 8th February, 1971-
Large Scale Units who have to apply through the sponsoring authorities may indicate to the sponsoring authorities, wherever the geographic source of the materials or past practice indicates the possibility of licensing under U S. AID Loans, the total value of imports of the qualifying items for which they need a separate licence under the reimbursement procedure. This value should be kept down to the minimum possible level. Units in the priority Sector who are required to separately apply for import of spare parts' on an annual basis, and who have the flexibility of Importing spare parts upto 25 per cent of the faice value against their import licences for raw materials and components, should take into account these special feature while indicating the values for which they need separate licences.
Units in the small scale sector and other units, who are required to apply direct to the licensing authorities concerned, should indicate, on the basis of the pattern of licences earlier obtained by them, the value (out of the actual value likely to be licensed under U. S. AID Loans) of the qualifying items for which they nee'l a separate licence under the reimbursement procedure, keeping this value down to the minimum possible level- Units belonging to the priority groups who are required to separately apply for import of spare parts on an annual basis and who have the flexibility of importing spare parts upto 25 per cent oi the face value against their licence for raw materials and components should take into account the?" special features while working out the values for whirh they need separate licences.
The option once exercised will be final and no request for changes in the value will be entertained at a later stage.
The facility of importing under U. S. AID Loans requirements of qualifying items valued at less than S 5500 (CIF) under the reimbursement procedure, will come into force from 10th March, 1971 on which date the licensing under the U S AID Commodity Programme Assistance will commence to be under Loan No 207. Importers holding licences issued prior to thii date who wish to be considered for this facility and importers who wish to be considered for this facility for their emergency requirements for non-auallfying items may talte up •the matter with the Department of Industrial Development (AID Section).
P. K. SAMAL,
Chief Controller of Imports and Exports.
IPART I—SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 361 ?62 THE GAZETTE OF TNDTA EXTRAORDINARY [PART I—SEC- 1}PRINTED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD NEW DELHI AND PUBLISHED BY THE MANAGER OP PUBLICATIONS, DELHI, 1 9 71