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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 137] NEW DELHI, WEDNESDAY, JUNE 14,1973/JYAISTHA 24,1894

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 8th May 1972

SUBJECT.—Licensing conditions for Public and Private Sector for the "Eleventh

Yen Credit".

No. 65-ITC(PN)/72,—The conditions govering the issuance of Import licences for Public and Private Sector for Eleventh (11th) Yen Credit from Japan as given in Appendix I & II to this Public Notice are notified for the information of the trade.

(1083)

APPENDIX I

Conditions for Licensing &¹/ Public Sector Imports under the Eleventh Yen Credit.

1. The import licence will be issued on CIF basis with an initial validity period or jour monthn for ordering and twelve months for completing shipments. Within a fortnight of the receipt of the import licence, the importer should inti- mate the Department of Economic Affairs the "particulars thereof and furnish the import contract within the validity of the licence for ordering. This condition, will not be deemed to have been complied with unless complete contract docu- ments reach the Department of Economic Aflairs in time.

2. Orders on the basis of firm prices in Yen currency must be placed on the Japanese suppliers within four months of issue of the import licence. If necessary, the licence may be presented to the CCI&E/JCCI&E for revalidation for ordering giving reasons why orders could not be placed within four months. The request will Be considered on merits in consultation with the Department of Economic Affairs and, if accepted, the licence will be revalidated for ordering for a further period not exceeding three months.

3. The icontract should be on C&F basis and clearly indicate the value of

'OB cost and freight amounts separately.

f oods in Yen currency, exclusive of Indian Agent's Commission, if any, showing

The contract has to be approved by the Government of India and the Govern- ment of Japan for financing under Eleveth Yen Credit.

4. The value of each contract falling in different categories mentioned below should not fall below the amounts indicated against each category:

Amount {Yen Million) Category

30 (i) Capital Goods

iel, chemicals 10 (ii) Rolls, Steel includinR special steel and alloy ste

2 (iii) Indo-Japanese Joint Venture

2 (iv) The National Small Industries Corporation Ltd.

5. Only one contract should be entered into against the full value of the import licence. In exceptional cases, two contracts may be permitted for which prior approval of the Department of Economic Affairs may be obtained within one month of the issue of import licence.

6. The contracts should provide lor payment on cash basis i.e. on presenta- tion of shipping documents. The contracts under non-project loan should also provide for the period of delivery of goods as follows:

"Within months after the receipt of letter of Authority but to be

completed latest by the end of June 1974".

No payments can be permitted beyond the 30th June, 1974 and 31st December, 1976 for contracts relating to non-project and project imports respectively.

7. Three copies of the contract between the Indian importer and the Japanese suppliers, signed by both the parties, aldngwith a copy of the valid import licence, should be forwarded to the Ministry of Finance, Department of Economic Affairs (WEI—Section) North Block, Central Secretariat, New Delhi. Besides, a state- ment, in triplicate, containing the following information should accompany the request for financing of the contract under the Eleventh Yen Credit:

(iii) Name and address of the suppliers bank in Japan and of the Importer's bank in India. Telegraphic address of the Importer's bank should also be indicated.

(iv) Value of the contract in Japanese Yen and Indian rupees converted at the composite rate of exchange, indicating P.O.B. value and freight charges separately.

(v) Short description of the goods to be imported.

(vi) A schedule indicating the probable dates and amount-: oi payments to be made to the supplier under the contract. The presumptions on which the schedule is based may also be indicated.

(vii) Number and date of the import licence.

(viii) Indicate if the project is an Indo-Japanese Venture. If so the follow- ing particulars _pf the collaboration agreement, whether financial or technical should be given in a note clearly indicating if the collabora- tion agreement is still valid.

1. Name and address of Japanese collaboration.

2. Date of collaboration agreement.

3. Item of manufacture.

4. Nature of collaboration.

5. Upto what period collaboration valid.

6. Any other information.

(ix) For development projects to be financed under the Eleventh Yen Credit (Project portion) additional information as in Annexure II is to be furnished (in triplicate) before finalising a contract, for obtaining approval of the project by the concerned Japanese authorities.

el?roAC

TiT-5 F⁰T ?r$e c ts financed under the Eleventh Yen Credit (Project portion) Mimstry of Finance Department of Economic Affairs, WE I Section, in thefirst wee n ^ ^ J* have to send a progress report (in triplicate) to the week of January and July of each year for the preceding six-monthly period.

9. The special clauses mentioned in Annexure I should be incorporated in the

ohJrO0^lk?wXntl }£ *e s-uPplief u n dlr the contract, including the handling r &™ ™Y ^ $ **ll i nTc.et- v^u e' w h e re n e c e^ a r y, would be made in the Government of India, through the Embassy of India, Tokyo. No remittance from India will be permitted against this import licence.

should be deposited by the concerned branch of the State Bank of India selected ^ l A P w i i i ? ^^{0 1}^ Importers in terms of Ministry of Finance letter No F. 32(1) ECA(A3/66(P), dated 20/24-10-66, with the Reserve Bank of India, New Delhi or State Bank of India, Tis Hazari, Delhi, or remitted by means of a demand n^V- n a.wn on a nd in f a v o ur of the Agent State Bank of India, Tis Hazari, Delhi-6, for credit to Government account as contemplated in Public Notices No. 184-ITC(PN)/68 of 30-8-1968 and No. 233-ITC(PN)/68 of 24-10-1968 under intimation to the Controller of Aid Accounts, Ministry of Finance, Department •of Economic Affairs, Jeevan Deep Building, Parliament Street, New Delhi. The

head of Account to be credited is "T-Deposits and Advances—Part II Deposits not bearing interest-Civil Deposits for purchases abroad under direct payment proce- dure under foreign loans/credits" under the detailed head "Deposits for cost of equipment etc. obtained under the Eleventh Yen Credit from Japan". While filling up the various columns in the challan, it will be ensured by the importers/ their bankers that the information prescribed in para 2 of Public Notice No. 132- ITC(PN)/71 dated 5-10-1971 is invariably indicated in. the column "Full parti- culars or remittance and authority (if any)" of the challan. Thereafter the treasury challan evidencing the deposit should be sent to the Controller of Aid Accounts, Ministry of Finance, Department of Economic Affairs, New Delhi, indi- cating references to the approval No. of the Eximbank. The Indian Bank con- cerned shall also arrange to deposit in the same manner any short deposits pointed out by Government of India. The concerned branch of the State Bank, of India should release the negotiable set of documents only after arranging the deposits as Indicated above into the Government accounts. They should also endorse the amount of deposit on the exchange control copy of the licence and send the requisite "S" form to the Reserve Bank of India, Bombay.

NOTE.—The above condition is not applicable to Hindustan Steel Ltd. who maintains a revolving deposit account with A. G. Bihar to whom necessary debits will be raised as indicated in para 13 below.

13. In the case of imports by the Departments of Central State Governments (including State Electricity Boards, etc.), the debits for the rupee equivalent will be raised against the A. G. concerned by the A.G.C.R., on the basis of advices Issued by the Department of Economic Affairs-Economic Aid Accounts Section, New Delhi.

14. The importer should send a monthly report after the L/A has been estab- lished, regarding shipments made and payments made there against to the tup- pliers and the balance left to the Controller of Aid Accounts, Department of Economic Affairs, Jeevan Deep Building, Parliament Street, New Delhi, along with a spare copy for use of WE-1 Section.

15. In case a major change is to be made in connection with the contract, the same procedure as for the main contract is to be followed and three copies of the amendments to contract duly signed by both the parties should be sent to the Ministry of Finance (Department of Economic Affairs), (WE-I Section), North Block, New Delhi.

APPENDIX I

Special clause to be incorporated in the public sector contracts to be financed

under the Eleventh Yen Credit.

(a) This export import contract is arranged in accordance with the Loan Agreement dated the 1st February, 1972, concerning the Eleventh Yen Credit to India.

(b) This export import contract shall become effective upon the approval

of the Government of India and the Government of Japan.

(c) Payments in Yen under this contract will be made to the ^ p o r t er by the Embassy of India in Japan, through the Bank of India Ltd., Tokyo against presentation of the required documents drawn under and lii accordance with the terms of this contract. The Counsellor (Economic) or the first Secretary or the Second Secretary (Economic) in the Embassy of India m Japan, will issue a Letter or Authority as in the form attached.

(d) The exporter hereby agrees to furnish such information and documents as may be required under the Yon Credit arrangement by the Gov- ernment of India and the Japanese participating BAN Kb.

(e) The exporter hereby agrees to make the arrangements for shipping in consultation with the Emabssy of India, Tokyo. For this purpose the exporter would keep the Embassy of India, Tokyo informed of the delivery schedule of the goods involved and notify the Embassy of India at least four weeks in advance of the shipping required so that suitable arrangements could be made. In exceptional cases, where the Indian importers require it, this period of notice may be reduced.

(f) The exporter agrees to send a cable advice to the importer after each shipment giving necessary details and a copy of the cable advice will be furnished to the Embassy of India, Tokyo, along with the other documents at the time of claiming payment. (This clause will be inserted only in cases where insurance is to be arranged by the importer).

ENCLOSURE TO ANNEXURE I.

DATE:

(The Japanese sponsoring Bank)

Irrevocable Letter of Authority No.

For amount Yen:

Expiring on

pursuant to Japanese Foreign Exchange We hereby request you to advise this Irrevocable Letter of Authority to (exporter) and irrevocably undertake to pay you lor account of {Exporter) through the Embassy of India in Tokyo a sum or sums not exceeding Yen (Say Yen regulations on presentation to the Embassy of India in Tolf^ro of two-sets of non- negotiable copies of the following documents;

(1) Signed invoices quoting L/A No dated

Import Licence No dated , contract No dated , entered between (Exporter) and (Importer), Regis- tration No of the Government of India and Notice of Approval No of the Export-Import Bank of Japan:

(2) Full set, clean, shipped "on Board" Ocean Bills of Lading dated not later than marked "Freight Paid'VFreight Payable at desti- nation", made out to the order of (Importer), notify ; and

(3) (To be completed if other documents are required under the contract) covering shipment of (Goods) from to Trans- shipment is allowed/not allowed. Partial shipments are allowed/not allowed.

The above-mentioned documents plus full sets of negotiable copies must be presented (to the Japanese sponsoring bank) not later than All Negotiable documents must be airmailed directly to (Importer, or his banker as the case niay be name and address) by you.

NOTK.—In the case of iziibhr vector projects, all negotiable documents are to

be sent to the nominated Branch of the State Bank of India and not

to the. -importer directly.

ANNEXURE II

Information to be furnished in respect of Projects td be financed under the

Eleventh Yen Credit (Project Portion)

I. Amount applied for financing:

1. Total project amount applied for financing. 2. Contract amount applied for financing.

II. Description of Enterprise:

1. Name. 2. Location. 3. Brief history. 4. Principal owner or share holder and management. 6. Financial Statement (Balance Sheet, Profit and Loss Statement) for 3 years.

6. Number of Employees.

III. Description of Project:

1. Location (site, area, etc.). 2. Planned capacity. 3L Transportation facilities. 4. Power and water supply. 5. Supply of raw materials. 6. Labour potential. 7. Installation schedule. 8. Marketability. 9. Anticipated sales price and monthly turnover during initial period u id after attainment of full production.

10. Capital requirement and financing. 11. Terms and conditions of sub-loan agreement.

APPENDIX II

Conditions for Licensing of Private sector Imports under the Eleventh Yen

Credit

1. The import licence will be issued on GIF br-sis with an initial validity -period of four months for ordering and twelve months for completing ship parts. Within a fortnight of the receipt of the import licence, the importer should intimate the Department of Economic Affairs, the particulars thereof and furnish the import contract within the validity of the licence for ordering. This condition will not be deemed to have been complied with unless complete contracr documents reach the Department of Economic Affairs in time.

2. Orders on the basis of firm prices in Yen currency must be placed on the Japanese suppliers within four months of issue of the import licence. If neces- sary, the licence may be presented to the CCI&E/JCCI&E for revalidation for ordering giving reasons why orders could not be placed within four months. The request will be considered on merits in consultation with the Department of Economic Affairs and, if accepted, the licence will be revalidated for ordering for a further period not exceeding three months.

3. The contract should be on CIF or C&F basis and clearly indicate the value of goods in Yen currency, exclusive of Indian Agent's Commission, if any, show- ing FOB cost, freight and insurance amounts separately.

The contract has to be approved by the Government of India and the Govern- ment of Japan for financing under Eleventh Yen Credit.

4. The value of each contract falling in different categories mentioned below should not fall below the amounts indicated against each category:—

Amount (Yen Million)

30 Category (i) Oapital Goods.

eel, chemicals 10 (ii) Rolls, Steel including special steel and alloy sti

2 (iii) Indo-Japanese Joint Venture.

5. Only one contract should be entered into against the full value of the im- port licence. In exceptional cases, two contracts may lie permitted fqr which prior approval of the Department of Economic Affairs may be obtained within. one month of the issue of import licence.

A single L/C has to be opened for the full amount of the approved contract.

6. The contracts should provide for payment on cash basis i.e. on presenta- tion of shipping documents. The contracts under non-project loan should also provide for the period of delivery of goods as follows: —

"Within months after the receipt of letter of credit but to be

completed latest by the end of June 1974".

No payments can bo permitted beyond the 30th June, 1974 and 31st December, 1976 for contracts relating to Non-project and Project imports, respectively.

7. Three copies of the contract between the Indian importer and the Japanese suppliers, signed by both th parties, alongwith a copy of the valid import licence, should be forwarded to th" Ministrv of Finance, Department of Economic Affairs (WE-I Section), North Block, Central Secretariat, New Delhi, alongwith a letter (Annexure I) from a bank authorised to deal in foreign exchange through which the letter of credit in favour of the supplier will be opened. Besides a statement, in triplicate, containing the following information should accompany the request for financing of the contract under the Eleventh Yen Credit: _

(1) Name, postal and telegraphic *adress of the Indian Importer,

(ii) Name, and address of the Japanese suppliers.

(iii) Name and address of the suppliers' bank in Japan and of the Importer's bank in India. Telegraphic address of the Importer's bank should also be indicated.

(iv) Value of the contract in Japanese Yen and Indian rupees converted at the Composite rate of exchange, indicating F.O.B. value, freight charges and insurance separately.

(v) Short description of the goods to be imported.

(vi) A schedule indicating the probable dates and amounts of payments to be made to the supplier under the contract. The presumptions on which the schedule is based may also be indicated.

(vii) Nmber and date of the import licence.

(viii) Number and date of the bank's Letter of Undertaking (Annexure I).

(ix) Indicate if the project is an Indo-Japanese venture. If so the follow- ing particulars of the collaboration agreement, whether financial or technical should be given in a note clearly Indicating if the collabora- tion agreement is still valid.

1. Name and address of Japanese collaboration.

2. Date of collaboration agreement.

3. Item of manufacture.

4. Nature of collaboration.

5. Upto what period collaboration valid.

6. Any other Information.

(x) For development projects to be financed under the Eleventh Yen Credit (Project portion) additional information as in Annexure V is to be furnished (in triplicate) before finalising a contract, for obtaining approval of the project from the concerned Japanese authorities.

8. For projects financed under the Eleventh Yen Credit (Project portion), the project authorities have to send progress report (in triplicate) to the Ministry of Finance, Department of Economic Affairs, WE-I Section in the first week of January and July of each year for the proceeding six-monthly period.

9. The special clauses mentioned in Annexure II should be incorporated in the

contract.

10. As soon as the approval of the EXIM Bank to the financing of the contract under the Yen Credit arrangement is received, the importer will be advised to furnish a bank guarantee (with a copy thereof) in the form prescribed as at Annexure 111 to the Ministry of Finpnrp U^irtmpni nf T'^onomic Affairs (WE-I Section North Block, New Delhi to enable them to permit the opening of an irrevocable .letter of credit on the Japanese bank. The guarantee should be furnished within fifteen days after the receipt of a letter from the Department of Economic Affairs intimating the approval of the Export-Import Bank of Japan to the contract.

11. If the bank guarantee is found in order, the Indian Bank furnishing the bank guarantee will be authorised to open a letter of credit as in Annexure IV. No freight exchanqe remittance from India will be nermittprt under this licence. The letter of credit would provide for payments to the suppliers or their bankers, by the specified Japanese Bank against the Eleventh Yen Credit.

12. A copy of the letter of credit should be sent by the Bank concerned to:

(i) The Ministry of Finance. Department of Economic Affairs (WE-I Sec- tion). Room No. 270, North Block, New Delhi, and

(ii) The Counsellor (Economic, Embassy of India, Tokyo, Japan).

13. As and when payments are made against this licence, the importers through rtheir banters will have to deposit the rupee equivalents of Yen Amounts paid along with other amounts as indicated below":—

(i) Rupee equivalent of the Yen payment to the supplier or their bank in Japan, by applying the composite rate of conversion as per for- mula laid down in Public Notice No. 15-ITC(FN)/72, dated 28-1-72 or as may be notified from time to time in public Notices/A.D. Circulars.

(ii) Interest at 6 per cent per annum for the period between the date of payment to the suppliers, or bank in Japan and the actual date of deposit of the rupee equivalents for credit to the Government ac- count. {Any change in this rate will be intimated if and when made).

14. The amount specified in condition 12 above shall be deposited with the State Bank of India, Delhi, or the Reserve Bank of India, New Delhi, or remitted by meani of a demand' draft drawn on and in favour of the Agent, State Bank of India. Tls Hazari, Delhi-6 for credit to Government account as contemplated in Public notices No. 184-ITC"(PN)/68 of 30-8-1968 and No. 233-ITC(PN)/68 of 24-10-1968 under intimation to the Controller of Aid Accounts, Ministry of Finance, Department of Economic Affairs, Jeevan Deep Building, Parliament Street, New Delhi. The head of account to be credited Is "T—Deposits and Advances—Part II Deposits not bearing interest—Civil Deposits—Deposits for pur- chases abroad under direct payment procedure under foreign loans/credits" under the detailed head "Deposits for cost of equipment etc., obtained under the Eleventh Yen Credit from Japan." While filling up the various columns in tho challan, it will be ensured by the importers/their bankers that the information prescribed in para 2 of Public Notice No. 132-ITC(PN)/7l dated 5-10-1971 is -invariably indicated in the column "Full particulars of remittance and authority (if any)" 01 the challan. Thereafter the treasury challan evidencing the deposit should be sent to the Controller of Aid Accounts, Ministry of Finance, Depart- ment of Economic Affairs, jeevan Deep Building, Parliament Street. New Delhi indicating references to the approval No. of the Exim Bank. The Indian Bank •concerned shall also arrange to deposit in the same manner any short deposits pointed out by Government of India, The Bank giving the guarantee should re- lease the negotiable set of import documents to the importers only after arranging the rupee deposits as indicated above. They should also endorse the amount of the deposit on the exchange control copy of the licence and send the requisite •"3" form to the Reserve Bank of India, Bombay.

15. On completion of the payments against the letter of credit and deposit of rupee equivalents against the Bank guarantee uarticulars of deposits made should be sent to the Controller of Aid Accounts, Ministry of Finance, Depart- ment of Economic Affairs, Jeevan Deep Building. Parliament Street New Delhi by the bankers requeseting for release of the Bank Guarnn1ec in the form repro- duced as Annexure VI to these conditions.

16. The importer should send a monthly report after the L/C has been opened, regarding shipments made and payments made there against to the suppliers and the balance left to The Controller of Aid Accounts, Department o[ Economic Affairs, Jeevan Deep Building, Parliament Street, New Delhi, alongwith a spare copy for use of WE-I Section.

17. In case a major change is to be made in connection with the contract, the same procedure as for the main contract is to be followed and throe copies of the amendment to contract duly signed by both the mrties should ha sent to the Ministry of Finance (Department of Economic Affairs) (WE-I Section) "North Block, New Delhi.

' '

AinraxUHE I

The Secretary,

MinistiT of Finance,

Department of Economic Affairs,

North Block,

New Delhi.

Subject;—Import of goods from Japan under t he Eleventh Yen Credit—Import Libence No dated for Ra issued in favour of M/s.

Dear Sir,

We hereby undertake to furnish a bank purantee equivalent to the value of the above mentioned import licence in your favour within 15 days of intimation of the approval of the contract by you.

2, We also undertake to establish within 15 days of the authorisation from you the necessary Letter of Credit on the Japanese Bank for the full value of the authorised amount and to provide you a copy thereof.

Yours faithfully,

ANNEXURE .II

Special clauses to be incorporated in the Private Sector contract to be financed

undvr the Eleventh Yen Credit (a) This export-import contract is arranged, in acordance with the Loan agreement dated the 1st February, 1972 concerning the Eleventh Yen Credit to India.

(b) This export-import contract shall become effective upon the approval of the Government of India and the Government of Japan.

(c) Payments in Yen under this contract to the exporter will be made under a confirmed irrevocable letter of credit opened in the form attached on a Japanese bank designated for the purpose through the importer's Bank in India.

(d) The exporter hereby agrees to furnish such information and documents as required under the Yen Credit arrangement by the Government of India and the Japanese participating banks.

(e) The exporter hereby agrees to furnish a report to the Embassy of India, Tokyo, immediately after completion of the shipping arrangements along- with one copy of the invoice and one copy of the Bill of Lading.

ANNEXUHE in

Guarantee Bond

To

The President of India,

In consideration of the President of India (Hereinafter called 'the Govern- ment¹) having agreed to arrange for payment in Yens for the import of t>y (hereinafter called the 'importer') under the terms and condi- tions of Eleventh Yen Credit, we Bank Ltd., at the request of the importer hereby undertake to arrange to deposit the amounts of the dlsburements made by the Japanese Bank converted at the composite rate of conversion laid down in Public Notice No. 15-ITC(PN)/72, dated 28th January, 1972 or as notified from time to time in Public Notice A.D. Circulars within ten days of the receipt of advice of payments for credit to the Govern- ment account in the manner and against the appropriate Heads of Account as indicated by the Government of India under the said credit together with in- terest thereon at the rate of 6 per cent, per annum, from the date of payment to the Japanese supplier to the date of payment of Rupee equivalent for credit to the Government account. The negotiable set of import documents received from the Japanese Bank will be released to the Importer only after the rupees * deposits contemplated above have been made.

2. We, the Bank Ltd., also undertake to indemnify and keep ln- • demnified the Government against any default in payment by the importer of any sum that may be due and payable from time to time by the importer to the Government at such place and in such manner as the Government may from time to tim.e direct, such sums not exceeding Rs or any part thereof, for the time being due and payable by the importer, together with interest at the rate of interest mentioned in preceeding paragraph from the date of payment to the Japanese suppliers. The decision of the Govern- ment as to any default in the said payment by the importer, or on his part and in regard to the amount payable to the Government by us Bank . Ltd., shall be final and binding on us Bank Ltd.,

3. We Bank Ltd., further agree that in case of increase in the value of imports or increase in the value of unfulfilled deliveries under the contract as a result of change in IMF the parity rate of exchange, the amount of this guarantee bond will be adjusted as on the date when the change takes place, in proportion to this change as may be notified from time to time.

4. We Bank Ltd., further agree that the guarantee herein contained shall remain in full force and effect during the period that would be taken for the performance of the said agreement/contract and that it shall conti- nue to be enforceable till all the dues to the Government under, or by virtue of this gu.ironte? have been fully pnid and its. claims satisfied or discharge.

7. Our liability under this bond/guar-ntees is restricted to Rs

(plus interest and commission charges, not expected to secured 1 per cent of the guarantee amount and thia guarantee shall remain in force till**....day of.... Unless claims under this bond/guarantee are made in writing within six months: of this date and unless suit or action to enforce these claims is commenced within another six months thereafter i.e. upto all Government's rights un- der this bond/guarantee shall be forfeited and we shall be relieved and d i s- charger from all liability thereunder.

dated the day of 19*

Accepted for aid on behalf for Bank Ltd.

of the President of India by

Shri

(Name and designation)

Signature

Signature

**This date shall be arrived at by adding one month to the date up to which, the Letter of Credit is required to the be kept valid.

Note:—The value of the stamped paper on which this guaranted is to be ex-, ecuted is to be adjudicated by the Collector of Stamps under Section 31 of the: Indian Stamps Act.

ANNEXURE IV

(Name of issuing Bank in India!

To: —

(Designated Japanese Bank)

(Date)

This letter of credit has been issued pursuant to Articles VIII of the Loan Agreement dated the 1st February, 1972 concerning the Eleventh Yen Credit (Non-Project Aid) to India and in accordance with the Notice of Approval No Issued by the Export-Import Bank of Japan.

Dear Sirs,

We request you to advise that we have opened our irrevocable credit No in their favour for account of for a sum or sums not exceeding a total of available by beneficiary's draft(s) at si^ht for invoice value drawn on your (Designated Japanese Bank), covering shipment from , to of to be accompanied by the following documents:

All documents must indicate import licence No and the Import- Export Bank of Japan Notice of Approval No Partial shipments are permitted/not permitted. Trans-shipment is permitted/not permitted. Ship- ment must bt effected not later than Draft must be presented to "the draweo not later than

All draft drawn hereunder must be marked "Drawn under

Irrevocable Credit Dated , . ..

We hereby undertake that all drafts drawn under and in compliance with the terms of the credit shall be duly honoured on due presentation and delivery of documents to the drawee.

All negotiable documents must be airmailed directly to us by your bank.

Special Instructions:

Special Instructions

1. This Letter of Credit does not become available unless the issuance of Letter of Undertaking as provided for in Article VIII of the Loan Agreement dated the 1st February, 1072 concerning the Eleventh Yen Credit (Non-.Project Aid) is confirmed and certified by you to that effect on the face of your advice of this Credit to the beneficiary.

2. Simultaneously with the payment of draft (s) under this Letter of Credit, reimbursement shall be obtained by you in accordance with Article VIII of the said Loan Agreement.

3. All banking charges in connection with this Letter of Credit are to be paid by us,

4. The terminal date for making payments under this Letter of Credit will be

Yours faithfully,

Note:-—The issuing Bank in India should notify the Department of Economic Affairs, (WE. I Section) of the opening of the Letter of Credit, with a copy of the Letter of Credit opened.

ANNEXUHE V

Inforviation to be furnished in respect of Projects to be financed under the Eleventh Yen Credit (Projection Portion)

I. Amount applied for financing

1. Total project amount applied for financing

2. Contract amount applied for financing

II. Description of enterprise

1. Name

2. Location

3. Brief history

4. Principal owner or shareholder and management

5. Financial Statement CBalance Sheet, Profit & Loss Statement) for 3 years

6. Number of Employees

III. Description of Project

1. Location (site, area, etc.)

2. Planned capacity

3. Transportation facilities

4. Power and Water supply

5. Supply of raw materials

6. Labour potential

7. Installation schedule

8. Marketability

9. Anticipated sales price and monthly turnover during initial period and after attainment of full production.

10. Capital requirement and financing

11. Terms and conditions of sub-loan agreement.

.. ANNEXURE VI

Form of Application for Release of Bank Guarantee

The Controller of Aid Accounts, Ministry of Finance, Department of Economic Affairs, Jeevan Deep Building, Parliament Street, New Delhi.

Sir,

1. We are furnishing below detailed information on the rupee deposits made- by us in discharge of our obligations under Bank Guarantee No dated for an amount of Rs which is valid upto with the request that the same may please be released and returned to us: —

(A) Name and full address of the importer/licensee on whose behalf the-

Bank Guarantee was furnished.

(B) Kxim Bank of Japan Notice of Approval No. and Date.

(C) Particulars of imports and rupee deposits made (to be given sepa- rately) for each payment/shipment:

(i) Yen payments made to Japanese supplier and the dates of payment. (ii) Rupee deposits made, indicating the Nos. and dates and amounts of deposits and name of Treasury/Bank through which deposited.

(iii) Xf deposit is made by way of Demand Draft, No. and date of the- Demand Draft and the No. and date of the letter under which the Draft was sent to the State Bank of India, Tis Hazari, Delhi.

NOTE.—Information at (ii) to (iii) above should be given in a tabular form if more than one transaction is involved.

(D) Amount utilised and balance un-utilised (Yen).

2. (a) We certify that balance amount of Yen in the approval cited above has not been utilised/win not be utilised.

(b) Our obligations under the Bank Guarantee in question have been duly discharged,

3. We request that the Bank Guarantee may please be released and returned to us for cancellation.

Yours faithfully

(Authorised Agent for and on behalf of the Bank).

M. M. SEN,

Chief Controller of Imports & Exports-

' ( • P A RT I —S E C. 1] " T HE G A Z E T TE OF I N D IA E X T R A O R D I N A RY mj

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