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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 146] NEW DELHI, TUESDAY, JUNE 20,1972/JYAISTHA 30, 1894

Separata 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 20th June, 1972

SUBJECT:—Conditions for licensing private/public sector imports/under the Fourth Danish

Loan, 1972.

No. 90—irC(PN)/72.—The terms and conditions governing the issuance of import licences for Private Sector and Public Sector under the Fourth Danish Loan, 1972" as given in Appendix I and II to this Public Notice are notified for the information of the trade.

(1191)

APPENDIX I

Conditions for Licensing Private Sector I-nyports under the Fourth Danish

Loan, 1972

The licence will be issued with a validity period of twelve, months but 4km orders oa C.I.F./C, & (v. basis must be placed on the Panish Suppliers and, copit:3 of the same furnished to the Ministry of Finance, Department o£ Economic Affairs within fcur monihs from the date of issue of tftc import licence. In cases whete orders Jiavc not been placed within the period of four months, the licensees should apply to the Chief Controller of Imports and Exports for suitable extension in. the period of altering giving adequate justification, for 4elay in placing, orders Such acquests veill be considered on merits by Chief Controller of Imports and Exports in consultation with Ministry of Finance, (Deptt. of Economic Affairs). However, no import licence shall be made valid or revalidated beyond the 31st December, 1974, The licence codes "S" and "BB" should be indicated in the first and second suffix after the licence number. The correct licence code should be used in all the shipping documents as well as in the "S" form icquired to be furnished to the Ipdian Bank at the tirpe of rupee deposits.

2. Only goods of Danish origin as pet HSt at Annexure I are eligible for being financed under this loan. The minimum value of a contract to be eligible for financing under this loan is Danish Kroner 50,000 in resj>e,ct of Capital Equipment and/Danish Kroner 25,000 in respect of spares.

3. The licence will not be valid for remittances from India. Payments to the Donii!:) Suppliers can be made only .-in accordance with. (Ije prq

4. The contract of .supply, between the Indian; .imp"rt" #pd 4fee Danish Suppliers should provide for the import being financed out of the Fourth Danish Loan in accor- dance with, the procedures:., se,t forth in. thqse L|cej*jing' conditions, spA should also be made subject to approval by the Government of India. Importers •should lafc: special care to. inform the Suppliers about this -condition and also Incorporate "• elauxe to thit effect in the Supply contract. Moreover approved orders should not be cancelled wirhout prior concurrency.

N,B. Licences issued before the. Credit Agreement between Government of India and Denmark for 1972 is signed will be subject to the following further conditions:—

(a) Contracts between the Jnciian Importers and the Panish exporters against the prospective Danish Credit w lr bV subject 'to the approval of the Government of India and the Government of denmark.

(b) Contracts against the prospective credit between Indian importers and Danish exporters would be treated as prbVisional and would become final only after the loan agreement is actually signed;

(c) a copy each of the contracts will be forwarded by the Government of to the Government of Denmark, as soon as India the contracts are signed; and

(d) payments against t ne s a'd contracts will normally be made only ajfter the loan agreement is • signed and necessary funds are credited td Government of Tndia's account with the Denmarks National' Bank.

5. The value of the contract should be expressed in Danish Kroner. The contract should normally provide for cash payment out of the Fourth Danish Loan on presentation of shipping documents, For any customary performance guarantee, the Suppliers could be asked to furnish a bank guarantee.

•. As soon as possible after the contracts are concluded, the importer should request *he Ministry of Finance, Department of Economic Affairs, W.E. Ill Section to obtain the .approm! of the Danish authorities to the contract. This request should be accompanied by four phatestat/certified copies of the Contract/Supply Order and Bank Guarantee as required in paragraph 8 hereunder. The following information should also be sent to the Department of Economic Affairs along with the contracts/supply order—

(i) Details of the Import Licence-—

(a) Number

(ii) Name and Address of the Importer

(iii) Name and Address of the Danish Suppliers

(iv) Value of the contracts/order in Danish Kroner

(v) Short description of the goods to be imported

Cvi) Time Tor delivery (A schedule indicating probable dates and amounts of payments to the supplier may also be given).

Oii) Detailed list of shipping documents, like. Bill of lading, Invoices, Certificate of Origin, etc., which the Denmarks National Bank should demand from the Suppliers before making payment, together with the Number of copies of each document required

,

.

(•iii) Indian Agent's Commission, if any, included in the contract (Amount or percentage to be indicated), which will have to be deducted from the contract value while issuing a Letter of Authority. Such commission vill be payable by the Importers direct to the Agents in rupees.

(ix) Special instructions, if any

7. On receipt of the copies of the contract/supply order, the Bank Guarantee and the information required in paragraph 6 above, the Department of Economic Affairs will for- ward a copy of the contract to the Danish authorities through Embassy of Tndia in Denmark. A Letter df Authority to the Denmarks National Bank (in the form nt Annexnre-II) authorising payment to the suppliers against shipping documents will be issued •only after the Danish approval to the contract has been received,

8. The importers will have to deposit: —

(i) the rupee equivalent of the payments to the suppliers in Danish Kroner at the composite rate prescribed in public notice No 15-ITC(PN)/72 dated the 28th January 1972 and such other Public Notices on this subject which may be issued from time to time

(ii) interest at the rate Of six per cent per annum on the amounts required to be deposited at item (i) above from the date of actual payment to the supplier hy (he Denmarks National Bank to the date of actual deposit of the rupee equivalent by the importer in the State Bank of Tndia, Tis Hazari, Delhi or equivalent by the Reserve Bank of India, New Delhi.

The importers will be required to furnish a bank guarantee from an approved scheduled foanlt in the form attached (Annexure-TII) agreeing to deposit the amounts specified in paragraph ^ above. The foot note under the Bank Guarantee form should be noted for strict compliance.

N. B.—-Imports should note that after payment to the Danish Suppliers, the Denmarks National Bank will send the documents to the Bank from which the Importer* produce the Bank Guarantee find that that bank will not have authoritv to release trie documents tro ITie importer until the rupees have been deposited B" Indicated above.

9. It will bo obligatory for the importers to mate requisite rupee deposit only through Authorised Dealers in foreign exchange and also to get the Exchange Central Copy of the Licence endorsed by them as required in Public Notice No. 184-ITC(PN)/68 dated the 30th August, 1968. They should also fill Jn the requisite 'S' Form, as prescribed by the Reserve Bank of India.

10. The moneys specified in paragraph 8 above shall be deposited with the State Bank of India, Tis Hazari Branch, Delhi, or the Reserve Bank of India, New Delhi for credit to the Central Government Account under the head of account—

"T—Deposits and Advances—Part II. Deposits not bearing interest—(c) Other deposit Accounts-Departmental and ludicial Deposits-Civil Deposits. Deposits (br pur- chases abroad-Purchases under Credits/Loan Agreements-Deposits for cost' of equipment etc., obtained under the Fourth Danish Loan 1972."'

ANNKXURE I

Items eligible for import under the Fourth Danish Loan

<1) Equipment for the Fishery industry, e.g. Marine Diesel Engines, etc.

(2) Refrigeration equipment.

(3) Machinery and equipment for the Cement Industry.

(4) Machinery and equipment for development of the Agricultural and Live-stock industries.

<5) Machinery and equipment for the dairy industry.

(6) Equipment for Research and Technical institutions. <7) Equipment for wood-working, crankshaft grinding machines and other machine tools required in the small scale industry sector.

<8) Machine Tools for the medium and large scale industries.

(9) Sparc parts for Danish Capital equipment.

(10) Machinery and equipment for the Fertilizer and Petro-chemical industries.

{11) Machinery and equipment for Spray Drying Plants.

(12) Machinery and equipment for the Plastic, Rubber and Chemical Industries, <13) Catalysts.

(14) Equipment for the processing, drying and storage of food products.

(15) Electrical and electronic equipment.

(16) Components for the capital goods production and other manufacturing programmes in India.

(17) Such other equipment as may be decided upon by mutual agreement between the two Governments.

ANNEXURE II

No.

GOVERNMENT OF INDIA (BHARAT SARKAR) MINISTRY OF FINANCE (V1TTA, MANTRALAYA) DEFTT. OF ECONOMIC AFFAIRS (ARTHlK.

KARYA VIBHAG)

New Delhi, the

To

The Denmarks National Bank,

COPENHAGEN

Vau bin,,

FOURTH DANISH-INDIAN LOAN AGREEMENT LETTER OF AUTHORITY NO.

eutworise you irrevocably to puy an amount of Danish Kroner

In accordance with the terms and conditions of the above Credit Agreement, wo bcreby „

to

against the delivery of the following documents:—

Invoice

copies

Bill of Lading

copies

Insurance Policy, if any,

copies, etc

covering tbc import of

„ against Contract No

• approved by the Danish Ministry of Foreign Affairs on

_

2. After payment, the original set of the above documents may kindly be forwarded direct to the (Name of the Indian Bank)

3. The amount paid plus your charges, if any, may be debited to our Account with you designated "Government of India Loan Account" and necessary debit advice (in- duplicate) along with one set of documents forwarded to the Ministry of Finance, Deport- ment of Economic Affairs, Economic Aid Accounts Branch, New Delhi.

4. One copy each of the above debit advice including the bank charges, if any, flaoy abw" be sent to the Importer in India

5. This authority will remain valid upto the day of

Youra faithfully

Copy to

(The importers' Bank). They should ensure that the topees equivalent calculated at the composite rate prescribed in Public Notice No. 15-lTC(PN)/72 dated 28th lanuary 1972 and such other Public Notices that may be issued from time to time together with the interest thereon from the date of payment to tnc suppliers to the date of deposit of the amount into Government Account is deposited before releaiing the original documects to tho Importer.

ANNEXUIiE III

GUARANTEE BOND

(To be furnished by Banks under the procedure for the import of goods under the

Fourth Danish Loan. 1972).

To

'I he President of India, In consideration of the President of India (hereinafter called 'the Government¹) having

agreed to arrange for payment in Danish Kroncrs for ihe import of

.,

.

,

* " a " " J "d

issued on

by (hereinafter called the Importers) under the terms and conditions of the Fourth Danish Loan, 1972 and in pursuance of Import Licence in favour of the No Importer against the above agreement, we (Bank) at the request of the importer hereby undertaken to arrange to deposit the amounts of the disbursements made by the Denmarks National Bank and their commission and postal charges, converted at the rate of One Danish Kroner equivalent to 1.043 Indian! Rupee within ten days of the receipt of advice of payment for credit to the Government account in the manner and against the appropriate Heads of Account as indicated by Govern- ment of India under the said loan together with interest iat the rate of six per cent per annum on the amounts disbursed to the supplier from the date of payment to the Danish supplier to the date of payment of rupee equivalent for Loan to the Government Account. The negotiable set of import documents received from the Denmarks National Bank will be released to the importer only after the rupee deposits contemplated above have been made.

2. We the

(Bank) also undertake to indemnify and keep indemnified 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 nt such place and in such manner as the Government may from time to time direct such sums not exceeding Rs.—-— •—— or any part thereof for the time being due and payable by the Importer together with interest thereon at the rate of six per cent per annum from the date of payment to the Danish Supplier out of the Fourth Danish I oan, 1972. The decision of (he Government as to any default in the said payment by the Government by us ———-—(Bank), shall be final and binding on us — (Bank).

3, We ——• (Bank) further agree that in case of increase in the value of import or increase in the value of unfulfilled deliveries under the contract as a result of change in the composite rate of exchange mentioned in para 1 above, the amount of this guarantee bond will be adjusted (is on the date when the change takes place in proportion to this change.

4 we •—-(Bank), 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 ihall continue to be enforceable till all the dues to the Government under or by virtue of this guarantee have been fully paid and its claims satisfied or discharged.

5 The guarantee herein contained shall not be affected by any change in the constitution of the Importer or the • —- (Bank) and the Government shall have the fullest liberty without affecting the guarantee to postpone for any time and from time to time any of the powers exercisable by it against the importer and either to enforce payment by the importer of any of the amounts the payment whereof is intended to he hereby secured and tho — • — -— (Bank), shall not be released from its liability nnder this guarantee by any exercise by the Government of the liberty with reference to the matters aforesaid or by reason of time being given to the Importer or any other for-mearance, act or omission on the part of the Government or any indulgence by the Government to the Importer or any matter or thing whatsoever which under the law relating to sureties shall, but for this " i ^ ™ ™. have the effect of so releasing the (Bank) from its such liability.

6. \f"

(Bank), undertake not to revoke this guarantee during its currency except with previous consent of the Government in writing.

7. We

(Bank), hereby undertake to make additional deposits in terms of Public Notice No. 15-ITC(PN)/72 dated 28th January 1972 and such other Public Notices that may be issued from time to time hereafter.

8. Our liability under this guarantee is restricted to Rs. (plus interest and cernmijsion charges, if any, not expected to exceed one per cent of the guaranteed amount) and this guarantee shall remain in force till the day* of (month), 19 ). Unless claims under this guarantee are made in writing within gix months of this date and unless a suit or action to enforce these claims is commenced within anothei six months thereafter i.e. upto , all Government's rights under this guarantee shall be forfeited and we srall be relieved and discharged from all liability thereunder.

Dated the dsy of

for

(Bank)

Accepted for and/on behalf of the

President of India by Shri

(Nam* and Designation).

Signature

*This date shall be arrived at by adding one month to the date by which all payments to the Suppliers are expected to be finalised.

Note : The value of the stamped paper on which this guarantee is to be executed is to be adjudicated by the Collector of Stamps.

APPENDIX II

Conditions for Licensing Public Sector Imports under the Fourth Danish

Loan 1972

The licence will be issued with a validity period of twelve months but firm orders on C.I.F./C. & F. basis must be placed on tne Danish Suppliers and copies of the same furnished to the Ministry of Finance, Department of Economic Affairs within six months from the date of allocation or four months from the date of issue of the import licence (whichever is earlier). In cases where orders have not been placed within the period of 4 months, the licensees should apply to the Chief Controller of Imports and Exports for suitable extension in the period of ordering giving adequate justification for delay in placing orders. Such requests will be considered on merits by Chief Controller of Imports .and Exports in consultation with Ministry of Finance, (Deptt. of Economic Affairs). However, no import licence shall be made valid or revalidated beyond the 31st December, 1974. The licence codes 'S' and 'BB' should be indicated In the first and second suffix after the licence number. The correct licence code should be used in all the shipping documents as well as in the 'S' form required to be furnished to the Indian Bank at the time of rupee deposits.

2. Only goods of Danish origin as per list at Annexure—I are eligible for being financed under this loan. The minimum value of a contract to be eligible for financing under this loan is Danish Kroner 50,000 in respect of Capital Equipment and Danish Kroner 25,000 in respect of Spares.

3. The licence will not be valid for remittances from India. Payments to the Danish Suppliers can be made only in accordance with the procedure set forth in paragraph 6-10 below.

4. The contract of supply between the Indian Importer and the Danish Supplier should provide for the import being financed out of the Fourth Danish Loan in accordance with the procedures set forth in these Licensing Conditions, and should also be made subject to approval by the Government of India. Importers should take special care to inform the Suppliers about this condition and also incorporate a clause to this effect in the Supply contract. Moreover approved orders should not be cancelled without prior concurrence of the Ministry of Finance, Department of Economic Affairs.

N.B. Licences issued before the Credit Agreement between Government of India and Denmark for 1972 is signed will be subject to the following further conditions:—

(a) contracts between the Indian Importers and the Danish Exporters against the prospective Danish Credit will be subject to the approval of the Government of India and the Government of Denmark;

(b) contracts against the prospective credit between Indian importers and Danish exporters would be treated as provisional and would become final only after the loan agreement is actually signed;

(c) a copy each of the contracts will be forwarded by the Government of India to the Government of Denmark, as soon as the contracts are signed; and

(d) payments against the said contracts will normally be made only after the loan agreement is signed and necessary funds are credited to Government of India's account with the Denmarks National Bank.)

5. The value of the contract should be expressed in Danish Kroner. The contiact should normally provide for cash payment out of the Fourth Danish Loan on presentation of shipping documents. For any customary performance guarantee, the Suppliers could be asked to furnish a bank guarantee.

6. Ai soon as possible after the contracts are concluded, the importer should request the Ministry of Finance, Department of Economic Affairs, W.E. Ill Section to obtain the approval of the Danish authorities to the contract. This request should be accompanied by four photostat/certified copies of the Contract/Supply Order. Th" following information should also be sent to the Department of Economic Affairs along with the contracts/supply order:—

(i) Details of the Import Licence—

(a) Number

(b) Date of issue

(c) Value

(ii) Name and Address of the Importer

(iii) Name and Address of the Danish Suppliers

(iv) Value of the contract/order in Danish Kroner

(v) Short description of the goods to be imported

(vi) Time for delivery (A schedule indicating probable dates and amounts of payments to the Supplier may also be given).

(vii) Detailed list of shipping documents, like Bill of Lading, Invoices, Certificate of Origin etc., which the Dcnmarks National Bank should demand from the Suppliers before making payment, together with the number of copies of each document required.

(viii) Indian Agents' Commission, if any, included in the contract (Amount or percentage to be indicated) which will have to be deducted from the contract value while issuing a Letter of Authority. Such commission will be payable by the Importers direct to the Agents in rupees.

(ix) Date upto which the letter of authority to the Denmarks National Bank should be made valid.

(x) Branch of any Scheduled Bank in India to which the original documents (negotiable) should be sent by the Denmarks National Bant.

(xi) Special instructions, if "ny.

7. On receipt of the copies of the contract/supply order, and the information required in paragraph 6 above, the Department of Economic Affairs will, forward a copy of the contract to the Danish authorities through Embassy of India in Denmark. A letter of authority to the Denmarks National Bank (in the form at Annexure If) authorising payment to the supplier* against shipping documents will be issued only after the Danish approval to the contract has been received.

8. The importers will have to deposit—

(i) the rupee equivalent of the payments to the suppliers in Danish Kroner at the composite rate prescribed in Public Notice No. l5-ITC(PN)/72 dated the 28th January 1972 and such other Public Notices on this subject which may be issued from time to time.

(ii) interest at the rate of six per cent per annum on the amounts required to be deposited at item (i) above from the date of actual payment to the supplier by the Denmarks National Bank to the date of actual deposit of the rupee equivalent by the importer in the State Bank of India, Tis Hazari, Delhi or Reserve Bank of India, New Delhi.

NB — Importers should note that after payment to the Danish Suppliers the Denmarks ' ' National Bank will send the documents to any Branch of the Nationalised Banks in Indja indicated in their application and that Bank will not have autnorlty to release tfi" documents to the importer until the rupees have been deposited as indicated above.

t it will be obligatory Tor the Importers to maVe me requisite rupee deposit through rtUhorised Dealer. In forcipi exchange only and also to get the Exchange Control copy ot me- License codomed by them "s requited in Public Notice No 184TTC(PN)/68,dated (I* 30th August 1968. They should also Wl in the requiwii -S' Form aw prescribed-by itw Ktscrvc Bank ot India.

10. The moneys specified in paragraph 8. above shall be- deposited under the head, of Account—

"T-Deposits and Advances—Part II. Deposits not bearing interest—(C) Other deposit Accounts—Departmental and Judical Deposits—Civil Deposits—- Deposits for purchases abroad—Deposits for cost of equipment, etc., obtained! under the Fourth Danish Loan, 1972.""

The advice of these deposits should be sent to the Controller of Aid Accounts, Ministry of Finance, Department of Economic Affairs, Economic Aid Accounts Branch',. New Delhi.

Tn the case of imports by the Departments of Central/State Governments and the State Electricity Boards the debits for the rupee equivalents will be raised against the Accounts Officer concerned by Accountant General, Central Revetuic* on the basis of advices issued by the Department of Economic Affairs—Economic Aid AccountB Branch

ANNEXUHE I

Items eligible for import under the Fourth Danish Loan

(1) Equipment for the Fishery industry, e.g. Marine Diesel Engines, etc.

(2) Refrigeration equipment

(3) Machinery and equipment for the Cement industry.

(4) Machinery and equipment for development of the Agricultural and Livestock industries.

(5) Machinery and equipment for the dairy industry.

(6) Equipment for Research and Technical institutions. *(7) Equipment for wood-working crankshaft grinding machines and other Machine Tools required in the small scale industry sector. ,(8) Machine Tools for the medium and large scale industries. (9) Spare parts for Danish Capital equipment.

(10) Machinery and equipment for the Fertilizer and Petro-Chcmical industries. ,(11) Machinery and equipment for Spray Drying Plants. (12) Machinery and equipment for the Plastic, Rubber and Chemical industr;e3- (13) Catalysts. (14) Equipment for the processing, drying and storage of food products, (15) Electrical and electronic equipment, (16) Components for the Capital goods production and other manufacturing programmes in India.

(17) Such other equipment as may be decided upon by mutual agreement between the two Governments.

No.

GOVERNMENT OF INDIA (BHARAT SARKAR) MINISTRY OF FINANCE (VITT*. MANTRALAYA) DEPTT. OF ECONOMIC AFFAIRS (ARTHIK

KARYA VIBHAG)

New Delhi, the

To

^he Denmarks National Bank,

COPENHAGEN.

.Dear Sirs,

FOURTH DANISH-INDIAN LOAN AGREEMENT

LETTER OF AUTHORITY NO.

In accordance with the terms and conditions of the above Credit Agreement, we hereby authorise your irrevocably to pay an amount of Danish Kroner

against the delivery of the following documents:—

to following documents:—

Invoice

copies

copies

Bill of Lading Insurance Policy, if any copies, etc.

<;overing the import of against Contract No approved by the Danish Ministry of Foreign Affairs on

2. After payment, the original net of the above documents may kindly be forwarded direct to the (Name of the Indian Bank)

- 3. The amount paid plus your charges, if any, may be debited to our Account with -you designated "Government of India Loan Account" and necessary debit advice (in. duplicate) along with one set of documents forwarded to the Ministry of Finance, Depart- ment of Economic Affairs, Economic Aid Accounts Branch, New Delhi.

4. One copy each of the above debit advices including the bank charges, if any, may also be sent to the Importer in India

5. This authority will remain valid upto the day of

Yours faithfully,

Copy to

(The importers' Bank). They should ensure t h at the rupees equivalent calculated at the composite rate prescribed in Public Notice¹ No. 15-ITC(PN)/72 dated 28th January 1972 and such other Public Notices that may be issued from time to time together with the interest thereon from the date of payment to the suppliers to the date of deposit of the amount into Government Account is deposited before releasing the original documents to the Importer.

APPENDIX I

^Conditions for Licensing Private Sector Imports under the Fourth Danish Loan, 1972

1. The licence will b" Issued with a validity period of twelve months but firm orders on C.I.F./C&F. basis must be placed on the Danish Suppliers and copies of the same furnished to the Ministry of Finance, Department of Economic Affairs within four months from the date of issue of the import licence. In cases where ^orders have not been placed within the period of 4 months, the licencees should apply to the Chief Controller of Imports & Exports for suitable extension in the period of ordering giving adequate justification for delay In placing orders, Such requests will be considered on marits by Chief Controller of Imports & Exports in consultation with Ministry of Finance,' (Department of Economic Affairs). How- ever, no import licence shall be made valid or revalidated beyond the ",11st Decem- ber, 1974. x'he licence codes "S" and "BB" should be indicated In the first and second suffix alter the licence number. The correct licence code should be used in all the shipping documents as well as in the "S" form required to be furnished to tne Indian Bank at the time of rupee deposits.

,2. Only goods of Danish origin as per list at Annexure I are eligible for being financed under this loan. The minimum value of a contract to be eligible for financing under this Loan is Danish Kroner 50,000 in respect of Capital Equipment •and Danish Kroner 25,000 in respect of Spares.

3. The licence will not be valid for remittances from India. Payments to the Danish Suppliers can be made only in accordance with the procedure set forth in paragraphs 6—10 below.

4. The contract of supply between the Indian importer and the Danish Supplier •should provide for the Import being financed out of the Fourth Danish Loan in accordance with the procedure set forth in these Licensing Conditions, and should also be made subject to approval by the Government of India, Importers should take special care to inform the Suppliers about this condition and also incorporate a clause to this effect im the Supply contract. Moreover, approved orders should •not be cancelled without prior concurrence of the Ministry of Finance, Department •of Economic Affairs.

(IV.B. Licences issued before the Credit Agreement between Government of 'India and Denmark for 1972 is signed will be subject to the following further con- ditions:—

(a) contracts between the Indian Importers and the Danish exporters against the prospective Danish Credit will be subject to the approval of the Government of India and the Government of Denmark.

(b) contracts against the prospective credit between Indian importers and Danish exporters would be treated as provisional and would become final only after the loan agreement is actually signed;

(c) a copy each of the contracts will be forwarded by the Government of India to the Government of Denmark, as soon as the contracts are signed; and

(d) payments against the said contracts will normally be made only lifter the loan agreement is signed and necessary funds are credited to Government of India's account with the Danmarks National Bank).

5. The value of the contracts should be expressed In Danish Kroner, The con- tract should normally provide for cash payment out of the Fourth Danish Loan on Presentation o* sHpplng documents. For any customary performance guarantee, the Suppliers could be asked to furnish a bank guarantee,

6. As soon as possible after the contracts are concluded, the Importer should reauest the Ministry of Finance Department of Economic Affairs, W.E.III Section to •obtain the approval of the Danish authorities to the contract. This request should Ise accompanied by four photostat/certified copies of the Contract /Supply Order

•and Bank Guarantee as required in paragraph 8 hereunder. The following informa- tion should also be sent to the Department of Economic Affairs alo'rlg with the •contracts/supply order—

(i) Details of the Import Licence—

(a) Number

(b) Date of Issue

(c) Value

(ii) Name and Address of the Importer

(iii) Name and Address 01 the Danish Suppliers

(iv) Value of the contract/order Jn Danish Kroner

(v) Short description of the goods to be imported

(vii) Detailed list of shipping documents, like Bill of Lading, Invoices, Certi- ficate of origin, etc., which the Danmarks National Bank should demand from the Suppliers before making payment, together with the number of copies of each document required

• • • •

{viil) Indian Agent's Commission, if any, included In the contract (Amount or percentage to be indicated), which will have to be deducted from the contract value while assuing a Letter of Authority. Such commission will be payable by the Importers direct to the A"ents in rupees.

(ix) Special instructions, if any

7. On receipt of the copies of the contract/Supply order, the Bank Guarantee and the information required in paragraph 6 above, the Department of Economic AlTalrs will forward a copy; of the contract to the Danish authorities through Embassy of India in Denmark. A Letter of Authority to the Denmarks National Bank (in the form at Annexure-II) authorising payment to the suppliers against shipping documents will be issued only after the Danish approval to the contract has been received.

8. The importers will have to deposit: —

<1) the rupee equivalent of the payments to the suppliers in Danish Kroner at the composite rate prescribed in public notice No. 15-I.T.C.(PN)/72 dated the 28th January 1972 and such other Public Notices on this sub- ject which may be issued from time to time.

(11) Interest at the rate of six per cent per annum on the amounts required to be deposited at item (i) above from the date of actual payment to the supplier by the Danmarks National Bank to the date of actual deposit of the rupee equivalent by the importer in the State Bank of India, Tis Hazari, Delhi or Reserve Bank of India, New Delhi.

The importers will be required to furnish a bank guarantee from an approved scheduled bank in the form attached (Annexure-III) agreeing to deposit the amounts specified in paragraph 7 above. The foot note under the Bank Guarantee form should be noted for strict compliance.

N.B. Importers should note that after payment to the Danish Suppliers, the Denmarks National Bank will send the documents to the bank from which the importers produce the Bank Guarantee and that that bank will not have authority to release the documents to the importer until the rupees have been deposited as indicated above.

D. It will be obligatory for the importers to make requisite rupee deposit oniy through Authorised Dealers in foreign exchange and also to get the Exchange Control Copy of the Licence endorsed by them as required in Public Notice No. 184/ ITC(PN)/68 dated the 30th August. 1968. They should also fill in the requisite 'S' Form as prescribed by the Reserve Bank of India.

10. The moneys specified In paragraph 8 abov= shall be deposited with the State Bank of India, Tis Hazari Branch, Delhi, or the Reserve Bank of India, New Delhi for credit to the Central Government Account under the head of account—

"T—Deposit and Advances—Part II. Deposits not bearing interest—(C> Other deposit Accounts—Departmental and Judicial Deposits—Civil De- posits—Deposits for purchases abroad—-Purchases under Credits/Loan Agreements—Deposits for cost of equipment etc., obtained under the Fourth Danish Loan 1972."

ANNEXUBB-I

Items eligible for import under the Fourth Danish Loan

(I) Equipment for the Fishery Industry, e.g. Marine Diesel Engines, etc. (2) Refrigeration equipment

(3) Machinery and equipment for the Cement industry.

(4) Machinery and equipment for development of the Agricultural and dive- stock Industries.

(B) Machinery and equipment for the dairy industry.

(6) Equipment for Research and Technical institutions.

(7) Equipment for wood-working, crankshaft, grinding machines and other Machine Tools required In the small scale industry sector.

(8) Machine Tools for the medium and large scale industries.

(9) Spare parts for Danish Capital equipment.

(10) Machinery and equipment for the Fertilier and Petrochemical industries.

(II) Machinery and equipment for Spray Drying Plants.

(12) Machinery and equipment for the Plastic, Rubber and Chemical Industrie*.

(13) Catalysts.

(14) Equipment for the processing, drying and storage of food products.

(15) Electrical and electronic equipment.

(16) Components for the capital goods production and other manufacturing programmes In India.

(17) Such other equipment as may be decided upon by mutual agreement bet- Ween the two Governments.

ANNEXURI II

No.

GOVERNMENT OF INDIA (BBARAT SARKAR)

MINISTRY OF FINANCE (VITTA MANTRALAYA)

DEPTT. OF ECONOMIC AFFAIRS (ARTHIK KARYA VIBHAH)

New Delhi, the

To

The Denrnarks National Bank, COPENHAGEN.

Dear Sirs,

FOURTH DANISH-INDIAN LOAN AGREEMENT

LETTER OF AUTHORITY No.

In accordance with the terms and conditions of the above Credit Agreement, we hereby authorise you irrevocably to pay an amount of Danish Kroner

to >

against the delivery of the following documents: —

Invoice copies

Bill of Ladinjg , copies

Insurance Policy, if any, copies, etc.

covering the Import of

against Contract No

approved by the Danish Ministry of Foreign Affairs on

2. Alter payment, the original set of the above documents may kindly, be lor- warded direct to the (Name of the Indian Bank)

3. The amount paid plus your charges, ii any, may be debited to our Account with you designated "Government of India Loan Account" and necessary debit advice (in duplicate) along with one set of documents forwarded to the Ministry of Finance, Department of Economic Affairs, Economic Aid Accounts Branch, New

4. One copy each of the above debit advices including the bank charges If any, may also be sent to the Importer in India ,

5. This authority will remain valid upto the—— — day of -.

Yours faithfully,

< )

Copy to (The importers' Bank). They should ensure that the rupees equivalent calculated at the composite rate prescribed In Public Notice No. 15-ITCfPN)/72 dated 28th January 1972 and ouch other Public Notices that may be issued from time to time together with the Interest thereon from the date of payment to the suppliers to the date of deposit of the amount Into Government Account Is deposited before releasing the original documents to the Importer.

AOTTEXUUE I II

Guarantee Bond

(To be furnished by Banks under t he procedure for t he import of goods under the Fourth Danish Loan, 1972),

To

The President of India,

issued on

in favour of t he In consideration of t he President of India (hereinafter called 'the Govern- ment') having agreed to arrange for payment in Danish Kroners for the Import of by (hereinafter called t he Importers) under the terms and conditions of the Fourth Danish Loan, 1972 and hi pursuance of Import Licence No Importer against the above agreement, we (Bank) at the r e- quest of the Importer hereby undertake to arrange to deposit the amounts of t he disbursements made by t he Danmarks National Bank and their commission and postal charges, converted at the rate of One Danish Kroner equivalent to 1.043 Indian Rupees within ten days of t he receipt of advice ot payment for credit to the Government account in the manner and against the appropriate Heads ol Account aa indicated by Government of India under t he said loan together with interest at t he rate ot six percent p er annum on t he amounts disbursed to t he supplier from t he date of payment to the Danish Supplier to t he date of p a y- ment of rupee equivalent for Loan to the Government Account. The negotiable eet of import documents received from t he Danmarks National Bank will be released to t he importer only after t he rupee deposits contemplated above have been made.

2. We t he

(Bank) also undertake to indemnify and keep indemnified t he Government against any default in payment by the Importer of any sum that m ay be due and payable from time to time by the Importer to the Government at such place and in such manner as the Government m ay from time to time direct such sums not exceeding Rs or any part thereof for t he time being due and payable by the Importer together with interest thereon at t he r a te of ste p er cent p er annum from t he date of payment to t he Danish Supplier out of the Fourth Danish Loan, 1972. The decision of t he Government as to any default in t he said payment by the Government by us

3. We

(Bank) further agree that in case of Increase In t he value of import or increase in the value of unfulfilled deliveries under the con- tract aa a result of change in the composite rate of exchange mentioned In para 1 above, the amount of this guarantee bond will be adjusted as on the date when t he change takes place in proportion to this change.

4. We

(Bank), further agree that t he guarantee herein con- tained shall remain in full force and effect during the period that would be taken for the performance of the said agTeement/contract and that it shall continue to be enforceable till all the dues to the Government under or by virtue of this guarantee have been fully paid and its claims satisfied or discharged.

5. T he guarantee herein contained shall not be affected by any change In the constitution of t he Importer or the (Bank) and t he Gov- ernment shall have the fullest liberty without affecting the guarantee to postpone for any time and from time to time any of the powers exerciseable by it against the importer and either to enforce payment by the importer of any of the amounts the payment whereof is intended to be hereby secured and t he (Bank), shall not be released from Its liability under this guarantee by any ex- ercise by the Government of t he liberty with reference to t he matters aforesaid or by reason of time being given to t he Importer or any other for-bearance, act or omission on t he part of t he Government or any indulgence by the Government to the Importer or by any matter or thing whatsoever which under the law relating to seureties shall, b ut for this provision, have the effect of so releasing th" (Bank) from Its such liability.

⁶- We

(Bank), undertake not to revoke this guarantee

during its currency except with previous consent of the Government in writing.

?• We

(Bank), hereby undertake to make additional de- posits in terms of Public Notice No. 16-ITC(PN)/72, dated U8th January, 1072 and such other Public Notices that may be issued from time to time hereafter.

8. Our liability under this guarantee is restricted to Rs (plus in- terest and commission charges, if any, not expected to exceed one per cent of the guaranteed amount) and this guarantee shall remain in force till the day* of (month), 19 ). Unless claims under this guarantee jure made in writing within six months of this date and unless a suit or action to enforce these claims is commenced within another six months thereafter, i.e., upto. w. . . . . " . j r .. , all Government's rights under this guarantee uhall be forefefted and we shall be relieved and discharged from all liability thereunder.

Dated the day of

For

(Bank).

Accepted for and on behalf of the President of India by Shri

(Name and designation).

Signature

•This date shall be arrived at by adding one month to the date by which all payments to the Suppliers are expected to be finalised.

NOTE: The value of the stamped paper on which this guarantee is to be executed is to be adjudicated by the Collector of Stamps.

APPENDIX II

Conditions for Licensing Public Sector Imports under the Fourth Danish Loan,

1972

1. The licence will be Issued with ft validity period of twelve months hut firm orders on C.I.F./C.&F. basis must be placed on the Danish Suppliers and copies of the same furnished to the Ministry of Finance, Department of Economic Affairs within six months from the date of allocation or four months from the date of issue of the Import licence (whichever is earlier). In cases where orders, have not been placed within the period of 4 months, the licencees should apply to the Chief Controller of Imports and Exports for suitable extension in the period of ordering giving adequate justification lor delay in placing orders. Such requests will be considered on merits by Chief Controller of Imports and Exports In consultation with Ministry of Finance, (Department of Economic Affairs). However, no im- port licence shall be made valid or revalidated beyond the 31st December, 1974. The licence codes "S" and "BB" should be indicated in the first and second suffix after the licence number. The correct licence code should be used in all the shipping documents as well as in the "S" form required to be furnished to the Jndian Bank at the time of rupee deposits.

2. Only goods of Danish origin as per list at Annexure I, are eligible for being financed under this loan. The minimum value of a contract to be eligible for financing under this Loan is Danish Kroner 50,000 in respect of Capital Equip- ment and Danish Kroner 25,000 in respect of Spares.

3. The licence will not be valid for remittances from India. Payments to the Danish Suppliers can be made only in accordance with the procedure set forth in paragraphs 6—10 below.

4. The contract of supply between the Indian Importer and the Danish Sup- plier should provide for the import being financed out of the Fourth Danish Loan in accordance with the procedures set forth in these Licensing Conditions, and should also be made subject to approval by the Government of India. Importers should take special care to Inform the Suppliers about this condition and also incorporate a clause to this effect in the Supply contract. Moreover, approved orders should not be cancelled without prior concurrence of the Ministry of Finance, Department of Economic Affairs.

(N.B.—Licences issued before the Credit Agreement between Government of India and Denmark for 1972 is signed will be subject to the following further conditions:—

(a) contracts between the Indian importers and the Danish exporters against the prospective Danish Credit will be subject to the approval of the Government of India and the Government of Denmark;

(to) contracts against the prospective credit between Indian importers and Danish exporters would be treated as propisional and would become final only after the loan agreement is actually signed;

(c) a copy each of the contracts will be forwarded by the Government of India to the Government of Denmark, as soon as the contracts are signed; and

(d) payments against the said contracts will normally be made only after the loan agreement is signed and, necessary funds are credited to Government of India's account with the Danmarks National Bank.)

5. Tile value of the contract should be expressed in Danish Kroner. The con- tract should normally provide for cash payment out of the Fourth Danish Loan on presentation of shipping documents. For any customary performance guarantee, the Suppliers could be asked to furnish a bank guarantee.

6. As soon as possible after the contracts are concluded, the importer should request the Ministry of Finance, Department of Economic Affairs, W.E. III. Sec- tion to obtain the approval of the Danish authorities to the contract. This re- quest should be accompanied by four photostat/certified copies of the Contract/ Supply Order. The following information should also be sent to the Department pf Economic Affairs along with the contracts/supply order—

(i) Details of the Import Licence—

(a; Number

(b) Date of Issue

(c) Value

(ii). Name und Address of the Importer

(Hi) Name and Address of the Danish Suppliers

(iv) Value of the contract/order in Danish Kroner

(v) Short description of the goods to be imported

(vi) Time for delivery (A schedule indicating probable dates and amounts of payments to the Supplier may also be given).

(vii) Detailed, list of shipping documents, like Bill of Lading, Invoices, Certi- ficate of Origin, etc., which the Danmarks National Bank should de- mand from the Suppliers before making payment, together with the number of copies of each document required

(vili) Indian Agents' Commission, if any, included in the contract (Amount or percentage to be Indicated), which will have to be deducted from the contract value while issuing a Letter of Authority. Such com- mission will be payable by the Importers direct to the Agents in rupees.

(ix) Branch of any Scheduled Bank In India to which the original documents (negotiable) should be sent by the Danmarks National Bank.

(x) Date upto which the letter of authority to the Danmarks National Bank should be made valid.

(xl) Special instructions, if any.

7. On receipt of the copies of the contract/supply order, and the information required in paragraph 6 above, the Department of Economic Affairs will forward a copy of the contract to the Danish authorities through Embassy of India in Denmark. A letter of authority to the Danmarks National Bank (in the form at Annexure II) authorising payment to the suppliers against shipping documents will be issued only after the Danish approval to the contract has been received.

8. The Importers will have to deposit—

(i) the rupee equivalent of the payments, to the suppliers in Danish Kroner at the composite rate prescribed in Public Notice No. 15-ITC(PN)/72, dated the 28th January, 1972, and such other Public Notices on this subject which may be issued from time to time.

(ii) interest at the rate of six per cent per annum on the amounts required to be deposited at item (i) above from the date of actual payment to the supplier by the Danmarks National Bank to the date of actual deposit of the rupee equivalent by the importer in the State Bank of India, Tls Hazari, Delhi or Heserve Bank of India, New Delhi.

N.B. Importers should note that after payment to the Danish Suppliers, the Danmarks National Bank will send the documents to any Branch of the Nation- alised Baiiks In India indicated in their application and that Bank will not have authority to release the documents to the Importer until the rupees have bee^ deposited as indicated above.

9. It will be obligatory for the Importers to make the requisite rupee deposit through Authorised Dealers in foreign exchange only and also to get the Ex- change Control copy of the License endorsed by them as required In Public Notice No. 184-ITC(PN)/68, dated the 30th August, 1968, They should also fill in the requisite 'S' Form as prescribed by the Reserve Bank of India.

10. The moneys specified in paragraph 8 above shall be" deposited under the head of Account—

"T-—Deposits and Advances—Part II. Deposits not bearing interest— (C) Other deposit Accounts—Departmental and Judicial Deposits—Civil Deposits—Deposits for purchases abroad—Deposits for cost of equip- ment, etc., obtained under the Fourth Danish Loan, 1972."

The advice of these deposits should be sent to the Controller of Aid Accounts, Ministry of Finance, Department of Economic Affairs, Economic Aid Accounts Branch, New Delhi.

In the case of imports by the Departments of Central/State Governments and the State Electricity Boards the debits lor the rupee equivalents will be raised against the Accounts Officer concerned by Accountant General, Central Revenues on the basis of advices issued by the Department of Economic Affairs—Economic Aid Accounts Branch.

ANNEXURE I

Items eligible for import under the Fourth Danish Loan

(I) Equipment for the Fishery industry, e.g., Marine Diesel Engines, etc. <2) Refrigeration equipment.

<3) Machinery and equipment for the Cement industry.

(4) Machinery and equipment for development of the Agricultural and Live- stock industries.

(5) Machinery and equipment for the dairy industry.

(6) Equipment for Research and Technical Institutions.

(7) Equipment for wood-working, crankshaft grinding machines and olher Machine Tools required in the small-scale Industry sector.

(8) Machine Tools for the medium and large-scale industries.

(9) Spare parts for Danish Capital equipment.

(10) Machinery and equipment for the Fertilizer and Petro-chemical industries. (II) Machinery and equipment for Spray Drying Plants. (12) Machinery and equipment for the Plastic, Rubber and Chemical industries. (13) Catalysts. (14) Equipment for the processing, drying and storage of food products.

(15) Electrical and electronic equipment.

(16) Components for the capital goods production and other manufacturing programmes in India.

(17) Such other equipment as may be decided upon by mutual agreement bet- ween the two Governments.

ANNEXURB II

.No.

GOVERNMENT OF INDIA (BHARAT SARKAR)

MINISTRY OF FINANCE (VITTA MANTRALAYA)

DEPTT. OF ECONOMIC AFFAIRS (ARTHIK KARYA VIBHAG) New Delhi, the

'To

The Danmarks National Bank, COPENHAGEN.

Dear Sire,

FOURTH DANISH-INDIAN LOAN AGREEMENT

LETTER OF AUTHORITY NO.

In accordance with the terms and conditions of the above Credit Agreement, we hereby authorise you irrevocably to pay an amount of Danish Kroner * to against the delivery of the following docu- ments:—

Invoice copies.

Bill of Lading copies.

Insurance Policy, If any, copies, etc.

•covering the import of against Contract No approved by the Danish Ministry of Foreign Affairs on

2. After payment the original set of the above documents may kindly be for- warded direct to the (Name of the Indian Bank)

3. The amount paid plus your charges, if any, may be debited to our Account with you designated "Government of India Loan Account" and necessary debit advice (in duplicate) along with one set of documents forwarded to the Ministry of Finance, Department of Economic Affairs, Economic Aid Account! Branch New Delhi.

'

4. One copy each of the above debit advices including the bank charges, if any, may also be sent to the Importer in India

5. This authority will remain valid upto the day of

Yours faithfully,

Copy to (The Importers' Bank). They should ensure that the rupees equivalent calculated at the composite rate prescribed in Public Notice No 15- ITC(PN)/72, dated 28th January, 1972, and such other Public Notices that may be Issued from time to time together with the Interest thereon from the date of payment to the suppliers to the date of deposit of the amount Into Government Account Is deposited before releasing the original documents to the Importer

M. M. SEN,

Chief Controller of Imports and Exports,

PRINTED BY THE GENERAt M A N \ O n t, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DBLHI AND PUBLISI^D HY illH MANAGr.it OF PUBLICATIONS, DELHI, 1 9 72