REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART I—Section I

PUBLISHED BY AUTHORITY

No.

25a]

NEW DELHI, THURSDAY, FEBRUARY 1, 1973/MAGHA 12, 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 1st February 1973

SUBJECT.—Schedule of conditions relating to the issue of licences for imports under

the UK/India Maintenance Loan, 1972.

No. 14-ITC(PN)/73.—The terms and conditions

governing

the issuance of

licences under the UK/India Maintenance Loan, 1972. dated 0th November 1972

as given in the Appendix to this Public Notice are notified for information of

the trade.

APPENDIX

Licensing conditions governing import licences for imports under UK/India

Maintenance Loan, 1972 dated 9th November, 1972.

The import licence will be valid for imports only from the UK of goods or

materials wholly or mainly produced or manufactured in the UK. It should be

ensured while placing a contract against the licence that the non-UK element, if

any, does not exceed 20 per cent of the F.O.B. value of the contract as otherwise

the payments arising out of such a contract may become ineligible for financing

under the U.K. Loan. Where the non-U.K. element in any contract is likely to

exceed this limit, the importer should refer the case

(giving complete details

including a copy of the certificate of origin or other communication indicating the

percentage) to the Controller of Aid Accounts, Ministry of Finance, Department

of Economic Aflairs and his approval obtained before entering into a firm commit-

ment or contract with the foreign supplier.

(92A)

9^2B

THE GAZETTE OF INDIA EXTRAORDINARY

[PART I—Sue. l\i _

2. Within a fortnight of the receipt of the import licence, the importer should

Intimate to the Department of Economic Affairs,

(WE II Section) the details of

the import licence viz, No. and date etc. A copy of this communication should

also be sent to the Controller of Aid Accounts, Department of Economic Affairs,

Jeeven Deep Building, 10-ParUament Street, New Delhi. The licence will be valid

for a period of tweleve months. All payments must be completed within a month

of the expiry of the licence. Individual payments must be arranged upon ship-

ment of goods. Credit facilities, when offered by suppliers can be availed of upto

90 days from the date of shipment provided no interest charges are payable for

the credit extended (directly or indirectly) and all payments are completed within

the period indicated herein.

3. Each import licence number will contain a suffix "ML" and the full licence

number including this suffix and the date of the licence should be entered in all

the documents¹ required to be submitted to the Government In connection with

the imports under the licence. However, where an Import licence is issued with

reference to the sum of £ 1.5 million earmarked within the UK/India Maintenance

Loan 1972 for allocations under the import policy for Established Imports, the

licence will be affixed with the rubber-stamp "UK/India Maintenance Loan 1972,

1.5 million Segment for Established Importers." (This will be in addition to the

suffix "ML" mentioned above),

N.B.—The payment procedure and the documentation laid down in paragraph

5 and 6 below will apply to allocations under the ^ 1,5 million Segment also.

4. Firm orders on C.I.F. or C & F basis (FOB/FAS If so desired by Govern-

ment Departments, public sector undertakings) must be placed on the supplier

In the U.K. (which expression includes the Channel Islands and the Isle of Man)

within four monihs from the date of issue of the import licence. The authorised

dealers in foreign exchange will n't allow

remittances or facility to establish

letters of credits unless satisfactory documentary evidence is produced by the

licensee indicating that orders have been placed within the prescribed period of

four months. In coses wheie orders could not be placed within this period, the

licensee should approach the licence issuing authority with detailed justification

for getting the prescribed period for ordering suitably extended. Only on produc-

tion of a letter from the license issuing authority, indicating the extension of the

period for ordering, should the authorised dealers iti foreign exchange rllov; the

facility of remittance or establishing letters of credit in cases where orders have

not been jjlaced within the first four months. The same drill will apply to cases

for Subsequent extensions also.

5- Payments to ths U.K. Supplier?, can b,a arranged

through normal banking

channels, by makint,' remittances. Any payments towards Indian ngent's commis-

sion ehould be n-ade Jn rupees in Indlf^- Such payments, however will form part

of the licence value and will, therefore, be charged to the licence.

6. For obtaining reimbursements under the loan, the

Government of India,

have to furnish to tho U.K. authorities a copy of the Form 'A' (Reserve Bank

Application form for remittance in foreign currency) duly completed and bearing

the signature of a bank in Indifi certifying the payments that have been athorised

by that bank, and supported by a copy of a certificate of origin from the contrac-

tor in the U.K. dulv signtd by hirn^ in the form

set out in Appendix 'B'

or Appendix B (Chemicals) whichever is appropriate. Specimens of these

certificates are attached

as Annexure

and Annexure IT respectively. The

licensee should a/ranRe to obtain from the supplier in the U.K. adequate number

of copies or photostat copies of the appropriate certificate of origin so that eoch

time a payment is arranged copy of the certificate of origin duly siened can be

attached to the Form 'A' which, together with a copy of the appropriate certificate

of origin, will be sent to the Ministry of Finance by the authorised dealer. As

soon as the payment is made, the authorised dealer will ensure that in respect

of each payment the Form 'A' dulv completed and a copy of thp supporting

certificate to origin 'duly siened by U K. contractor) are sent to the Controller of

Aid Accounts, Ministry of Finance (Department of Economic Affairs), Economic

Aid Accounts-Branch, Jeevan Deep Building. 10, Parliament Street, New Delhi-1

under

advice to th,e Importer. It must be ensured that

all the

appropriate

columns In Form 'A' are filled in correctly and completely. The full licence num-

ber including the suffix 'ML' and an indication whether tho licence relates to

the •£ 1.5 million segment and the date Ihereof should appear on each Form 'A'

without fail. The certificate by the Authorised dealer should clearly brin? out

the name cf the foreign bank through which the payment has heen livide In the

supplier ar.d the date oh which tho payment has been made authorised. None

. [PART I--SEC. 1]

THE GAZETTE OF INDTA EXTRAORDINARY

92C

of the important columns in Form 'A' or the certificate of origin should be left

blank.

NOTE.—These arrangements do not absolve the licensee of his responsibility to

eiisure that all Forms 'A' are forwarded from time to time by the banks to the

Ministry of Finance as indicated above duly completed in all respects and duly

supported by the relevant certificate of origin.

7. A quarterly report, as in Annexure III showing the utilisation status of the

licence, should be furnished to the Controller of Aid Accounts,

Ministry of

Finance (Department of Economic Affairs),

Economic Aid

Accounts Branch,

(CAA), Jeevan Deep Building, 10, Parliament Street, New Delhi-1, until the

licence is fully utilised with a copy each to WE II Section, Ministry of Finance

(Department of Economic Affairs), North Block, New Delhi and foreign exchange

credit section of Department of Industrial Development.

8. If any refunds are received by the licensee from the Supplier, the shipper

or the insurer, a full report showing the amounts received together with other

relevant particulars, should be sent to the Ministry of Finance at the address

indicated in para 7 above, as and when such refunds are received. The report

regarding refunds should be as in the proforma in Annexure IV.

». It should be understood that the Government of India will not undertake

any responsibility for disputes, If any, which may arise between the licensee and

the suppliers.

10. The licensee 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 licence and for meeting all obligations under the credit

agreement.

11. Any breach or violation of the above conditions will rgsult in appropriate

action under the Import and Exports (Central) Act.

ANNEXURE I

APPENDIX B

UNITED KINGDOM/INDIA MAINTENANCE LOAN, 1972

CERTIFICATE OF ORIGIN

Particulars of Contract

1, Date of Contract

2. Contract No

3. Import licence No

4. Date

5. Description of goods or services supplied to the purchaser

(If a number of items have been supplied a detailed list should he appended to this certificate).

6. Total contract price paid by purchaser (state CIF, C & For FOB)

IP GOODS HAVE BEEN SUPPLIED THE FOLLOWING SECTIONS MUST BE COM-

PLETED

(If the contractor is exporting agent only, the information requested should be obtained from

manufacturer).

7. Estimated % of the FOB value of the goods not originating in the United Kingdom, but

purchased by the Contractor directly from abroad, i.e. "„ of imported raw-material or components

used in manufacture.

(a) % FOB Value

(b) Description of items and brief specifications

8. If any raw material or components used orginated from abroad, e.g. copper, asbestos, cotton,

wood pulp etc. but have been purchased in the United Kingdom by the contractor for this contract

specify:—

(a) FOB VALUE

(b) Description of items and brief specifications

9.2D

THE GAZETTE OF INDIA EXTRAORDINARY

[PART I—SEC.

IF SERVICES HAVE BEEN SUPPLIED THE FOLLOWING SECTION SHOULD

ALSO BE COMPLETED

9. State the estimated value of any work done or servicc8 performed in purchaser's country by:—

(a) Your firm (site engineers charges, etc.)

(b) Local contractor

10.

Qualifying remarks as necessary in respect of paragraphs 6, 7 or 8 above.

I hereby declare that I am employed in the United Kingdom by the Contractor named below

and have the authority to sign this certificate.

I hereby undertake that in performance of the

contract no goods or services which arc not of United Kingdom origin have been supplied by the

Contractor other than those specified in paragraphs 6,7,8 and 9 above.

Signed

Position held

Name & Address of Contractor

Date

NOTE .—For the purpose of this declaration the United Kingdom includes the Channel

Island and the Tslc of Man.

ANNEXURE

APPENDIX B (CHEMICALS)

UNITED KINGDOM/INDIA MAINTENANCE LOAN 1972.

CERTIFICATE OF ORIGIN FOR CHEMICAL AND ALLIED PRODUCTS ONLY

1. Date of Contract

Contract No

Import licence No

Date

z. Description of Product(s)supplied UK Tariff Classification

Is the product of UK Ori-

toPurchaser (Note A)

No. (Note B)

gin? (See Note C) State

'Yes' or -No'.

Total conratct Price payable by Purchaser in sterling £

(Declaration)-—I hereby declare that I am employed in the United Kingdom by the Con-

tractor named below and have the authority to sign this certificate, and that the above information

is correct.

Signed

Position held

Name & Address of Contractor

Date

NOTES

NOTE A.—This form is only to be used for chemicals and allied products, most of which are

covered by the appropriate sub-headings of chapters 15,25,28,35 and 37-40 of the

UK Tariff.

NOTE B.—Sec. (i) H. M. Customs & Excise Tariff H.M.S.O.

(ii) Classification of Chemicals in Brussels Nomenclature H.M.S.O.

NOTE C—(i) A product is regarded as of 'UK origin' if made either wholly from indigenous

UK materials or according to the appropriate EFTA qualifying process using impor-

ted materials wholly or in part.

(ii) The EFTA qualifying processes arc set out in Schedule I of the 'EFTA

Compendium for the useof Exporters', H.M.S.O.

(iii) For the purpose of this declaration it is to be emphasised that the 'alternative

percentage criterion' DOES NOT APPLY.

(iv) The words "Area Origin" where they appear in the above Schedule must be

taken to mean 'UK Origin' only.

(v) For thepurpose of this declaration, the'BasicMaterials List' (Schedule Til of

the EFTA Compendium) does not apply.

(vi) If a qualifying process is not listed for the material in question advice should

be sought from the Government of the United Kingdom.

NOTE D.—For the purpose of this declaration the United Kingdom includes the Channel

Islands and the Isle of Man.

,[PART I--SIX, 11

THB GAZETTE OF TNDTA EXTRAORDINARY

92E

ANNEXURE

III

FORM OF QUARTERLY UTILISATION REPORT IN RESPECT OF U, K. CREDITS

(To be furnished separately in respect of each licence).

I. Name of the Importing firm.

2. Particulars of U. K. Credit.

3. No. and Date of the Import licence.

4. Valueofthe Import licence.

5. Value of orders placed,

6. Value of orders yet to be placed.

7. Payments made to the U.K. suppliers (upto-date).

8. Paymentsyettobemadewithaquarterly cstimateof payments (with

values and anticipated dates of payment).

9. Value of the complete documents (Form 'A') forwarded so far to the

Ministry of Finance.

Name of Bank by whom forwarded and the

Value of the Form 'A'

No. & date of their communication under

in rupees,

which Form 'A' sent.

(ii)

(iii)

10. Surrenders, if any.

Total form 'A' sent

Signature of the authorised officer of the Importing firm.

ANNEXURE

REPORT SHOWING DETAILS OF REFUNDS RECEIVED FROM SUPPLIERS/

SHIPPERS/INSURERS (TOWARDS SETTLEMENT OF CLAIMS FOR SHORT

LANDINGS, DAMAGES ETC.) IN RESPECT OF IMPORTS FROM UK UNDER

UK/INDIA MAINTENANCE LOAN, 1972.

(only for claims settled in foreign exchange)

1. Name of importing firm.

2. Particulars of U. K. Credit.

3. No. and date of import licence.

4. Value of import licence.

5. Amount of refund received.

6. Nature of refund,

(give brief details),

7. Reference to the relative forms 'A' under which

payment was made initially to the U.K. Sup-

pliers ^Indicate name of Indian bank and reference

to their letter No. & date, forwarding

form 'A' to Ministry of Finance),

8. Whether or not refunds received are to be utili-

sed for replacement of goods, if not, confirm

that amount haB been actually received and

encashed into rupees,

9. Remarks.

K. S. NARANG,

Chief Controller of Imports and Exports,