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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 252] NEW DELHI, THURSDAY, NOVEMBER 16, 1972/KARTIKA. 25,1894

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 10th November 1972

SUBJECT.—Terms and conditions governing the issuance of import licences financed

under International Development Association Credit No 327-IN (Industrial

Imports).

No. 162-ITC(PN)/72.—The terms and conditions governing the issuance of Import licences financed under the I.D.A. Credit No. 327-IN dated 26th September, 1972 (Seventh Industrial Imports Project) given in Appendix to this Public Notice are notified for the information of the trade.

(1837)

APPENDIX

Terms and conditions governing the issuance of import licences financed under

International Development Association Credit No. 327-IN (Seventh Industrial

Imports Project).

I. The Import licence is issued with an initial validity period upto 30th September, 1U73.

II. The goods imported must fall under the approved list ol goods as per Armexure I.

III. The goods must be purchased from member countries of the World Bank or Switzerland (a list of member countries is attached at Annexurc II) but exclud- ing South Africa and South West Africa. Shipments must be arranged in vessels registered in countries, who are members of World Bank or in Indian Flag "Vessels (with ocean freight payable in Eupees in India on India Flag Shipments). It is moat essential that the goods must be produced in a member country, and not merely transhipped through a member country.

IV. Ordering: —

(a) Firm orders must be placed on the suppliers within four months from the date of issue of the import licence. If orders cannot be placed within four months for valid reasons, the licence should be submitted to the licensing authorities during the 5th month giving the reasons for the delay in placing orders and indicating the date by which orders would be placed and extension In the period for ordering is neces- sary. Such requests will be considered on merits by the C.C.I. & E., in consultation with the Ministry of Finance (Department of Economic Affairs) where necessary.

(b) A statement of orders in the form attached, vide Annexure n i, should be sent on the first of each month to the Department of Economic Affairs, Economic Aid Accounts. Branch, Ministry of Finance Jeevan Deep Building, No. 10, Parliament Street, New Delhi (Attention Shri T, M. Narasimhan, Senior Accounts Officer), Dy. Economic Adviser, Ministry of Industrial Development (Attention Shri R. S. Nakra) and to the concerned Industrial Adviser, in the Directorate General of Technical Development, New Delhi. Such reports should Include particulars of all eligible licences and Imports.

Important Note.—It is necessary that ordering is completed within 4 months •or the extended period allowed by the licensing authority in any case. The authorised dealers in foreign exchange will not permit establishment of letters of credits, or remittance for payment to foreign suppliers unless this require- ment is complied with.

V. Payment against I/L by remittance through Banks.—(1) Payment of the cost of goods acquired should be made, according to procedure described in sub- para (6) below. Contracts concluded with foreign suppliers, should specify the mode of payment and also the documents required vide para VI below.

(2) Payment for the cost of goods and services acquired shall be made In the currency of the country from which such goods and services are acquired, that is, in the currency of country of origin Of goods and services. To cite an example if the goods are produced or originated Jn country A, but are shipped from a different country B or the supplier is located In country B or another country C the payment has to be made in the currency of country A and bot repeat not that of country B or country C.

3. Payment of ocean freight charges on Indian flag vessels shipments should he mad" in Rupees in India.

(4) Payment of Indian Agent's commission should be made ^n Indian Rupees to the agents in India. Such payments will, however, form part of the licence valu" and will, therefore, be charged to t he licence.

(5) Expenditure incurred in Indian Currency for goods procured In (Including services supplied from) India and also from countries who are not members of World Bank (vide Annexure II) is not reimbursable under the I.D.A. Credit arrangement. Ocean freight charges on vessels belonging to non-member countries of World Bank is also ineligible for financing under I.D.A. Credit arrangement. Hence importers should ensure that shipment is arranged only in vessels belong- ing to member countries of the World Bank. Foreign exchange dealers should also ensure that payment in foreign exchange is not made towards ocean freight for shipment made in vesse's 01 non-member countries of World Bank.

(t!) Detailed procedure for payment.—Payments against the import licence, may be made by the Importers through authorised dealers in foreign exchange in India by remittance in the normal mannei. i'ho importers shall indicate in their con- tracts with suppliers that ceitain documents required by the I.D.A. ha\e to be submitted by the suppliers to the impoiters. These documents are described in para (VI) below and in Annexure V and should be sent alongwith a prolorma as lndifdted in Annexure IV. Two tets of documents are required, one lot' payment purposes and the other ior purpose oi ooUiining reimbursement from I.D.A. The authorised dealers in foreign pxchtuicp, while opening letter of credit against Such import licence would alLo call ior lac locumouts from the supplier. When bills dravn under the letters til cr*il!t are pu J by the drawee and the amount remitted to the principal suppliers ab-Vad, these documents would be separated anil pinned together and forwarded by the dealers 1:1 foreign exchange direct to the Ministry of Finance, DEA, .Economic Ai 1 Accu'ints Branch, Jeevan Deep Building, No. 10, Parliament Street, New Delhi. (Attention. Shri T. M, Narasimhan, Senior Accounts Officer), with the particulars of relative :nport licence duly noted on each of these documents. In the cases whore bills are received by the uuthorised dealers in foreign exchange on collection basis to cover imports, tha proceeds of the bill would not be remitted unless the dr

(7) All payments must be completed within one month after expiry of licence, i.e. by 31st October, 1973 (shipments by .;0th September, 1073, including one month grace period). Individual payments mi'st be arranged upon shipment, of goods, except in case of credit facilities, which will be permitted subject to the following conditions:—

(a) The Credit facility should not extend beyond 90 days from date of

shipments;

(b) No interest charges are payable by the Importers for the credit extended,

directly or indirectly; and

(c) All payments are completed by the terminal date specified above. VI. Documentation.—After payments, the importers must arrange to furnish Immediately the various prescribed documents (Annexure V in complete shape) to the Ministry of Finance, Department of Economic Affairs, Economic Aid Accounts Branch, New Delhi to enable them to claim reimbursement from I.D A. As pay- ments will usually be made through the importer's Bank in India arrangement should be made by the importers with their Bankers to send the documents direct to the Ministry of Finance within a week after each foreign exchange remittance with the proforma indicated in Annexure IV. This will expedite the utilisation to the I.D.A. Credit by the Government of India. This arrangement will however not absolve the importers from the responsibility of submission of proper docu- ments and the importers should obtain confirmation from their bankers that they have submitted the documents to the Ministry of Finance towards foreign exchange remittances made by them and indicate that fact in the monthly report of order- ing and paymtnts (vide Annexure III). The Ministry of Finance'will approach the importers for relevant documents if and when necessary.

NOTE.—It should be noted very carefully that the documents for reimburse- ments are to be forwarded by the Indian Banks immetiately after payments and Th^T n°A r i r c"™s t,a n c e s> s h o u ld any delay occur in transmitting these documents, womntiv u S °nT n Ti re that applications for withdrawal should be made &* ™ fe {?re T-D-A- c an decline reimbursements if claims for amounts ,,re K ir r ,i *? T!T fssentiQl t h at *e Ministry of Finance, Deptt. of Econo- S a w S t t p r^ T f ^¹ • 1tS B r a n°h' i n v a r i a b le r e c e^e the documents with- in a weel after each foreign exchange payment.

VII. Maintenance of Bodks and Records.—The importers shall maintain books and records adequate to identify the goods acquired out of the proceeds of the credit to disclose the use thereof in the project and to record the progress of the project. Such records and books shall be maintained for a period of five years after the date of acquisition of the goods. Importer shall enable the authorised representatives of I.D.A- to inspect the relevant records and documents related to the Project, the goods acquired out of the proceeds of the credit and shall aiiord oil reasonable opportunity and assistance to them for such examination where they propose to carry out such inspections.

VIII. End-Use of Goods.—All goods imported against the licence will be used exclusively for the purpose of production for the domestic civilian market and for export.

IX. Quarterly Reports on Estimated Payment—I.D.A. requires quarterly reports indicating the rato at which withdrawals are expected to be made throughout the disbursement period of the credit. A statement in form in Annexure VI should, therefore, be sent by importers at the end of each quarter i.e. quarter ending December 1972, March 1973, June. 1973 and September 1973 by the 10th of the month following the reporting period. In this report all import licences i.e. licences having balances outstanding on 8th June, 1972 and fresh licences issued on or after 8th June, 1972 issued under I.D.A Credit should be included.

X. Notifying supplier.—The importer should apprise the supplier of any special provision in the import licences which allect the suppliers in carrying out the transactions.

XI. Disputes.—It should be understood that Government of India will not under- take any responsibility for disputes, if any, that may arise between the importers and suppliers.

XII Future Instructions The importers shall promptly comply with any directions instructions, or orders issued by the Government regarding any and all matters arising from or pertaining to the import licences and for meeting all obliga- tions under the agreement.

XIII. Breach or Violati&n.—Any breach or violation of the conditions set forth in the above clauses will result in appropriate action under the Imports & Exports (Control Act).

XIV. List of Annexures by Title.—

Annexure I List of goods.

Annexure II List of World Bank member countries.

Innexure III Monthly report on ordering & payments.

Annexure IV Proforma for sending documents.

Annexure V Documents required a-ter payment.

Annexure VI Quarterly statement of estimated payments.

ANNEXURE I

List of (/clods

Raw and Semi-finished mateiialt, components and spare parts for the manufacture of Agricultural

1. Ti actors and Power Tillers.

2. Fertilisers.

3. Pesticides.

Electrical

4. Motors, Transformers, Switchgears and Magnetic Steel Stampings.

5. Aluminium Smelting.

Transport

(j. Commercial Vehicles.

7, Automotive Ancillaries.

Metal Working

8. Machine, Cutting and Small Tools, Abra.isives. Ball and Roller Bearings.

ANNEXURB II

S. No. Name of the Country,

Afghanistan.

1 2. Algeria.

3

4

5

§

7

8

9

10

11

12,

13.

:. Argentina. :. Australia. '. Austria. , Belgium. . Bolivia. . Botswana. . Brazil. . Burma, . Burundi. , Cameroon. , Canada.

14.

15.

Central African Rep Ceylon.

16, , Chad. . Chile.

17.

18.

19.

20.

21.

22.

23.

24.

25.

26.

27.

28.

29.

30.

31.

32.

33.

34.

35-

36.

37.

38.

39.

40.

41.

42.

43.

44.

China. Colombia. Congo, People's Rep. Costa Rica. Cyprus. Dahomey. Denmark. Dominican Rep. Ecuador. Egypt, Arab Rep. of El Salvador. Equatorial Guinea. Ethoipia. *Flji. Finland. France. Gobon. Gambia, Th" Germany. Ghana. Greece. Guatemala. Guinea. Guyana. Haiti. Honduras. Iceland. India.

45.

Name of the country

£. No.

4tf. 47.

48.

49. 50-

M. 52.

53. 54.

35.

96. 57.

58. 59.

HO. 61.

62. 63.

64. 65.

66. 67.

68. 69. 70, 71. 72.

73. 74.

75. 76.

77. 78.

79, 80.

81. 82.

83. 84,

85. 86. 87.

88.

89. 90.

91. 92.

Indonesia. Iran. Iraq. Ireland. Israel. Italy. Ivory Coast. '•'Jamaica, Japan. Jordan. Kenya. Khmer Republic, Korea, Kuwait, Laos. Lebanon. Lesotho. Liberia. Libyan Arab Republic. Luxembourg. Malagasy Republic, Malawi. Malaysia. Kali. Mauritania. Mauritius. Mexico. Morocco. Nepal. Netherlands New Zealand. Nicaragua. Niger. Nigeria, Norway. Oman. Pakistan. Panama, Paraguay. Peru. Philippines. -Portugal. Rwanda. South Arabia. Senegal. Sierra Leone. ¹ Singapore.

S. No Name of the country

 9U. Somalia.
 94. South  Africa.
 PS. Spain.
 96. Sudan.
 97. Swaziland.
 08. Sweden.
 99. Syrian  Arab.  Republic.
100, .  Tanzania.
101. Thailand
102. Togo.
103. ^Trinidad  & Tobago.
104  Tunisia.
105  Turkey.
108. Uganda.
107. U.K.
108. U.S.A.
109. Upper  Volta.
110. ^Uruguay.
111. ' Venezuela.
112. Vietnam.
113. Yemen  Arab  Rep.
114. Yemen,  People's  Dem.  Rep.  of
115. Yugoslavia.
116. Zaire.
117. Zambia.

•Not members of the I.D.A.

ANNEXBHE III

Preforms Report—One for each import licence umler I.D.A. Credit No,

REPORT AS ON 1ST OF EACH MONTH

1. Import Licence No., date and value.

2. Ordering Position;

(a) Total value of orders placed so far (in Rs.). (b) Balance value of orders yet to bo placed (in Rs.).

(cj Phasing of balance orders.—Indicate when these would 1-e completed and confirm that thesp would be completed within four months from the date of Import Licence.

3. Payment position:

(a) Total value of payments made so far: Amount:

fi) Payments made prior to Foreign In R.s. 8-6-1972. Currency:

(ii) Payments made on or after

8-6-1972 8-6-1972 to 30-B-1972 October, 1972 November, 1972 etc.

(Please confirm after checking with Bank that documents therefor have been sub- mitted to this Deptt. by them in all cases).

Cb) Balance value of payments yet to be made (in Rs.).

(c) Phasing of balance payments:

(i) During November, 1972. (li) During December, 1972, (iii) During January, 1H73. (Iv) During February, 1973. (v) During March, 1973. (vl) During April—June, 1973. (vii) During July—September, 1973.

r

4. Remarks, if any, particularly regarding any special difficulty experienced in complete utilisation of licence i.e., payments by 31st October, 1073.

S d /- Authorised Representative on, behalf of importer.

ANNEXURE IV

(Referred to in Para V, V(6) and (VI)

Proforma for sending documents under the I.D.A.

Credit (Seventh Industrial Imports Project):

Currency in which Applicable category

Date of foreign

S.NO.

Impart Hccnco

No. and date

of goods.

exchange remi- payment U made and the amount In foroignj currency

ttance by the Bank.

2

I

4

5

3

ANNKXURE V

(Referred to in Para V & VI)

Documents required In connection with each application for reimbursement, under I.D.A. Credit.

(a) Supplier's invoice, describing the goods or services (original or legible copy), (b) Evidence of payment, in the form of—•

(1) Receipted Invoice or formal receipt of the foreign supplier, or

(2) Cancelled bank cheque or draft or photostatic copy thereof; or

(3) Commercial Bank's report of Payment IDA form 1—1 (Copy attached; may be used when payment has been made under a commercial letter of credit; or

(4) Other evidence satisfactory to the I.D.A.

(c) Evidence of shipment, in the form of;

(1) A copy of ocean or airway bill of lading (this need not be a signed

copy); or

(2) A statement of the supplier or forwarded that the goods have been shipped. This statement should include the approximate date of shipment, the method of transportation (i.e. air, rail or sea) and the destination of the ship/aircraft, the name and flag of the vessel or aircraft (if known) and amount of ocean/air freight should be given.

NOTK 1.—If shipment has not been made at the time of the application is submitted or If the application relates to a down or progress payment on a contract, evidence of shipment should be furnished to the IDA as soon as possible after shipment. This evidence of shipment should be accompanied by a copy Of the supplier's final invoice in cases where the application relates to a down or pro- gress payment.

NOTE 2.—When commercial letters of credit are used, no evidence of ship- ment is required if the Bank's report of payment indicates that documents evidencing shipment were produced to the- commercial bank at the time payment was made; otherwise evidence oJ! shipment as described in (c)(l) or (2) above would be required.

NOTF 3.—Please note carefully that item (1) to (3) under (b) and (1) to (2) under (c) above are the various alternatives and what Is needed is any one of these and not all.

(d) If the withdrawal, is to reimburse the Boriower for a down or progress payment, a copy of the contract or purchase order is required. It is of course only necessary to submit this document once. If payment has been made on a contract on the basis of work performed, in addition to a copy of the contract, the Borrower should furnish an engineer's certificate or progress report showing that the payment was due.

(e) Information regarding applicable category of the list of goods as approved by the I.D.A. vide Annexure I.

NOTE 4.—Requirement at (e) above means thaj; the importer himself or his bank should, while forwarding the documents to the Ministry of Finance (Deptt. of Economic Affairs), indicate the applicable category of the approved list of goods under which the import has been made. This list of goods Is Indicated in Annexure I and the licence itself would indicate the applicable category in each case. If not, the description of the goods imported would enable the item being classified under one of the approved category of goods. In any case, it is for the importer to furnish this information find he or his bank must not require the supplier to Indicate such information in his documents to be submitted to the negotiating bank under the Letter of Credit. The importers should therefore, note carefully that no such requirement should he Included in their orders or the Letters of Credit.

ANNEXUHE V

IDA. Form—I—I

JJank's Report of payment Serial No. .—

(Name of Commercial Bank) Date of payment: —— —— Licence No. • 1

To — —• .

(Name of Borrower or Borrower's Representative)

(Address)

We report having paid the sum of —— • • —

to — — •— —i—— under licenoe No.

(Name of supplier)

established by (— •—— • —

(Name a nd address of buyer)

O ur p a y m e nt commission a m o u n ts to • -.— —

P a y m e nt w as effected against delivery of t he documents as specified i n / a nd in accordance with t he t e r ms a nd conditions ol t he letter of Credit mentioned above evidencing shipment of

(General description of t he merchandise Including t he i

—.per S,S. —— —or R.R. — • -•••—

(quantity etc.)

from — > to .—

(Point of shipment) (Destination)

or storage or manufacture of the goods described at •

The documents have been disposed of as follows:— Ocean documents have been forwarded to our above mentioned correspondent Bank.

The rail-road bill of lading, warehouse receipt of certificate of manufacture have been •

(Description made)

(.Copy of supplier's invoice is attached)

Very truly yours,

ANNEXURE VI

(Referred to in Para VI of licensing conditions)

Date :•————___,_. _

International 'Development Association quarterly Report of Estimated Pay-

ments (Expressed in thousands of U.S. $) at the rate of exchange 1 $=Rs. 7.279.

Total

Import Licinc;

S.No.

No. &dato.

Value of I/L outstanding

value of

Currency of payment.

Supplying country.

Category of goods.

on 8 .6.72.

I / L.

1

2

6

7

3

4

5

Calendar quarters ending

Beyond September, September, 1973

December, 1972

1973

June, *973

Maich, 1973

September, 1973

11

12

10

a

9

NOTE:—1. The value of utilisation upto end of the quarter to which the report relates should be actuals and for the balance estimated payments to be furnished.

2. Figures in Column 8 to 13 should Indicate only the foreign currency payable to the foreign supplier (excluding agency commission etc. payable in Indian Rupees).

M. M. SEN,

Chief Controller of Imports & Exports.

IU-L - „. 1] 1 E A ^ IE 1. A E 1R, AK I _,5

3858 I t G A ^ l l li OF INDIA tAlKAt-JJLiAKi [FA . I—. „, lj

PRINTED BY THE GENERAL MANAGED, GOVERNMENT OV INDIA PBESB, MINTO HOAD, NEW DELHI AND PUBLISHED BY THE MANAGER OF PUBLICATIONS, DELHI, 1972