REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 29]

NEW DELHI, SATURDAY, FEBRUARY 3. I973/MAGHA 14, 1894

Separate paging is given to this Fart in order that it may be filed

as a separate compilation

MINISTRY OF FOREIGN TRADE

PUBLIC NOTICE

IMPORT TRADE CONTROL

New Delhi, the 3rd February 1973

SUBJECT.—Licensing conditions pertaining

French Special Credit for Fast

Breeder Test Reactor Project of the Department of Atomic

Energy,

1972-73.

No. 9-ITC(PN)/73.—The condition governing the issuance of import licences

pertaining to French Special Credit for Fast Breeder Test Reactor Project of the

Department of Atomic Energy, 1972-73 as given in Appendix to this

Public

Notice are notified for the information of the trade.

APPENDIX

PREAMBLE.—This Special Credit of the value of FF 35.00 million has been

given for the requirement of the Department of Atomic Energy for its Fast

Breeder Test Reactor Project, the total foreign exchange cost of which is esti-

mated at FF 55.00 million. The balance of FF 20,00 million will be imputed

against the normal annual French Credit (Project portion).

1. Import Licence-—One

Import

licence on CIF basis will be

issued for

the whole amount, of FF 35.00 million, except the amount to be utilised under

the French Suppliers' Credit, vide, para 2 below. The licence will be valid for

placement of order for 3 years. It may be revalidated, if so requested, for a

very limited time on the basis of justification that has to be forwarded by the

project authorities.

(101)

X⁰²

THE GAZETTE OE INDIA EXTRAORDINARY

[PAST I—SiiC^i

2. Ordering.—Orders may be placed on the French suppliers on the basis

of jirm prices according io ihe requirements of ihe project witnin the vaiiauy

period 01 the import licence referred to in para 1 above.

Under the Credit Agreement, Government of India have the option to substi-

tute Buyers' Credit by Suppliers' Credit if such a course Is found to be more

beneficial. It has, thereiore,

been

considered

necessary that .Department

Atomic Energy should invite quotations* irom French

suppliers tor supply of

equipment on credit terms mentioned below: Down payment upto 6 per cent

of the contract value; repayment of the balance over u period ol 10 years com-

mencing six months aHcr the completion ol the shipments and interest rate of

6 per cent, per annum, free of Indian income tax, inclusive of financing charges

if any. The Department of ALomic Hinergy should, also mviie quotations on tne

basis of payment terms, indicated in para 6 below. On the basis of this data,

tiovernment of India will decide Lhe mode of financing the imports, and advise

the importer on the mode ha may adopt. In the event of electing for Suppliers'

Credit, licensing conditions pertaining to such credit arrangement will be issued

separately,

ii. Terms of Contracts.—A contract should be placed in French Francs on a

C & F basis and should clearly indicate FOB price and Freight of the contract

value separately lor each element-

The insurance will be taken out with any

Indian Insurance Company and the payment for insurance will be made enly

in rupees. The ocean ireight can be covered under French Credit only if tb.3

goods have be^n shipped on a French Hag vessel. The value of import should be

lockoned at present at the Central rate of one French Franc=fls. 1.4U2.

The above rate of exchange is, however, subject to revision if and when the

IMF lixes a dillerent parity between the Indian .Rupee and French Franc

4. Orlgrln of goods.—The goods should be of

French origin

unless a part

thereol is permuted by the rrcneh authorities to be of non-French

origin. A

stipulation as to the origin of goods should be invariably incorporated to the

contracts entered into with the French Suppliers and wherever necessary a

letter evidencing approval of the French authorities to the third country im-

ports should accompany the contract. However, if considered necessary, goods

can be permitted to be shipped from

non-French ports. If such a course of

Action is considered advisade the reasons therefor should be clearly explained

while forwarding the •-•ontracts to the Department of Economic Affairs for approval.

5. Payment

terms.— (i)

Advance

Payments.—An

advance

payment

of 5

per cent of the price of the supplies can be provided at the time of the contract

coming into eltect, unless any 'other terms are settled between the buyers and 1h©

sellers, in accordance with '.he normal international commercial practice in this

matter, for the particular type of &o<jris concerned.

However, where an amount higher than 5 per cent Is to be provided for pay-

ment as an advance, pridr approval of the Department of Economic Affairs should

be obtained, with full justuication, before any commitments are made.

(ii) Other payment.':.—Apart from the amount of down payment, it is per-

missible to pay the balance amount at the time of last shipment of equipment

under the contract, or at the time of completion of erection, or on commission-

Ing of the plant, or pro rata according to the value of

goods covered by each

shipment, on the basis of the shipping schedule.

6. Condition to be stipuliUed i,i the contract.—The contract should suitably

incorporate the terms and conditions set out below, apart from those considered

necessary by the contracting parties, to make it eligible for being financed under

the French Credit:-—

(1) That the contract is subject to the approval of the Indian and French

authorities for iinancing under the French Credit in terms ol the

Indo-French Financial Protocol according

which the French

Credit would be a combination

of a French Treasury loan ar.d ^ •

Buyer's Credit. Each contract will be financed to the extent of 45 per

cent from the Tieasury Loan and 55 per cent from the Buyers' Credit

or Bank Credit.

(ii) That the suppliers, or their banks will be paid from the French Treasury

loan upto the first 45 per cent of the value of the contract and for

[PART I—SEC. 1]

THE GAZETTE OF INDIA EXTRAORDINARY 1O3

the remaining 55 per cent, payment to them will be made from the

Buyer's Credit, in accordance with condition 12, below.

(iii) That the suppliers should present the payment documents in quadrup-

licate, Cthis may be increased if the imnorter needs more than one set

to the Banque National de Paris. 16, Boulevard Des Italians

Paris

or the Banque Francaire du Commerce Exterieur, 21,

Boulevard

Hussaman, Paris (se me), as the case may be, which will arrange

for making the necessary payment

itself,

or" through any other

agency in France. The presentation of payment

documents bv

the Franch suppliers should be prescribed in each contract. An

illustrative list of the documents is given in the Annexure I.

(iv) That the

contract value is broken down into FOB cost and Freight

elements, sc parately.

(v) That the terms of payment, e.g. amount payable on the contract becom-

ing- effective, and that payable against ' '•

• ' ' • " " • of pro-

ject etc., are set out in precise terms, -. • , , • .

:•., . :• : ; l e sche-

dule of deliveries/payments.

7¹- Customary Guarantee.—The Importer may

arrange for

'obtaining any

customary guarantee (s) which may be necessary for safeguarding his interest.

8. Submission of Contract

Documents.—Within 20 days of the placing or

ord"r-;, the importer should sera a letter accompanied by the following docu-

ments to the Ministry of Finance, Department of Economic

Affairs

(WEI)

Section), North Block, New Delhi.

(i) Ten certified comes of th« contract and any further amendment<s} dniv

executed in English larrup™ and signed bv both the Indian importer

and the French supplier. The order placed by the importer will not

^p construed to cor^titute a contract without it⁵! acceptance bv the

French suppliers.

Where the Suppliers' acceptance

letter is in

^rer -h ar~l Evf]; h translation of the letter fhoulr< be provide^.

In case, where a contract has not been

executed, as a single

rlo"iri?^r't. 10 esi'+i^ed conies of hnthJkhe importer's order and S'lopli-

ers'

acceptance thereof, alongwith amendment(s), if any, should be

inttp-.-j, ovbpnari '->otween the importer and the ^lmplief. a oonsoli-

dated contract shciM b« entered into in substitution. The contract

en" ' P nroceswl nnly if all the documents are complete, alongvith

thOF"; populated below.

(ii) Photo fODy of import licence valid for contracting on the date of exe-

cutir- of the conti-act/acceDtance of French supplier of the

ordei

placed on him by the importer.

(iii) Other particulars stipulated in Annexure-II in duplicate.

The contract will he proceed a? per condition 9 below, only after all these

documents hive been furnished.

X?^^eprS*75o'*7=ct'o» i s ' S f b y .he Embassy' o, Fr»cl, within that

period.

H.RemUtance from In«a-M«. J^!^%TanX°c^te^t

i^termfof

und»r the import licence issued

under

the

Franch cieou, exLe.ji.

condition 14 below.

1?. Metho, of i ^ ^ - P ^ ^ ^ ^ ^ V t; ^ ^ «

^TVvZZl

V^n^l *,u C^m«o; Vr^^, erbv ^{O t}K Ciller

France, on the basis of a "Letter of Instruction" to be issued by tne u

7 04

THE GAZETTE OF INDIA EXTRAORDINARY

[PART I—SEC. 1]

of Aid Accounts, Department of Economic Affairs, Ministry of Finance, on effec-

tuation of the contract,

13. Despatch of Shipping l*<X'unienls—Immediately

after

payments

have

been eifected in accordance with the Litter of Instruction referred to above,

the original set of documents (negotiable), alongwith details of bank charees

(l/8th, of orta p^r cent documentation 'harge, plus tax <a> 17.60 per cent thereon)

and expenses on postage, will he ;jent by Banque Nationals de Paris, or the Banque

Francaise de Commerce Exterieur, as the case may be to the project authorities

direct,

14. Itemittances of Bank Charf.es.—Within

wcok

receiving

the

intimation about bank charges, vide condition 13 supra from the Banque Nationale

de Paris, or the Banque Francaise du Commerce Exterieurs, as the case may be,

the remittances of Bank charges and equivalent rupee deposit will be arranged

by the Controller of Aid Accounts, Department of Economic Affairs, by debit to

the authority concerned. For this purpose the project authorities should intimate

the charges promptly to the Controller of Aid Accounts.

15. Tlme Umit for effecting rupep deposits—On receipt

the

documents.,

mentioned in condition 13 supra, the department of Atomic Energy will ensure

that its Accounts Officer promptly accept the

debits, as and

when raised, by

AGCR. on the basis of advice issued bv the Ministry of Finance.

ANNKXURE I

Illustrative List ttf Documents

[Para G(Iii)]

1. Commercial invoice for the value of the equipment shipped and for details

of any down payments, as the case may be.

2. Complete set of clean-on-board ocean or charter party bills of lading or

air way bills, as the ca=:e may be, with packing lists where applicable; certificate,

if any prescribed in the contract,

3. Written attestation from the suppliers along with necessary customs docu-

ments, certifying that the French Suppliers have complied with the percentage

of french expenses authorised by the French Government,

4. Any other documents.

ANNEXURE II

(In Duplicate)

The Secretary,

Ministry of Finance,

Department of Economic Affairs,

WE-I Section, North Block,

New Delhi-1.

Sir,

SUBJECT.—Import under the Special French Credit.

In connection with the import of

(short description of the goods or services)

from France under the above credit, we furnish the following particulars:,—

(a) Number, date, value and last date of

validity

the

import

licence

for

(I) ordering, anrl (ii) shipments,

fb) Name and address of the French suppliers;

fq) Date of the contract;

Date of Suppliers letter of acceptance

of the orders placed against the licence.

[PART I—SEC. 1]

THE GAZETTE OF INDIA EXTRAORDINARY

105

(d) Value of the contract:

FOB Price:

Freight:

Insurance:

TOTAL:

(e) Short description of the goods to be

imported:

(f) Terms of Payment under the contract.

(g) The date on which

payments

under

the contract will i'all due in respect of

advance payments and other payments:

(h) The dates on which

the equipment

will be shipped or services

performed

together with the value of each ship-

ment, T

service

performed,

based

on the delivery schedules, or stipula-

tions in the contract.

2. Ten certified copies of the contract (or each of the order and the letter of

acceptance) and of the amendment (if any), and a photostat copy of the import

licence are enclosed,

3. Debits

relating to the transactions are adjustable

in the book of

(Designation, and complete postal nddress of the Accounts Officer) and we shall

ensure that they aie adjusted as soon as they are raised in terms of para 15

of the licensing conditions.

4. You are requested to get the contract approved for financing under the

Special French Credit and issue necessary authorisation to the French authori-

ties to arrange for payments to the suppliers oii their bankers.

YourS faithfully,

Licensee.

K. S. NARANG,

Chief Controller of Imports & Exports,