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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 32] NEW DELHI, FRIDAY, FEBRUARY 9, 1973/MAGHA 20, 1894

Separate paging is given to this Part in order that it may be filed as a separate compilation.

MINISTRY OF COMMERCE

PUBLIC NOTICE

IMPORT TRADE CONTROL

New Delhi, the 9th February 1973

SUBJECT,—Licensing conditions for Public and Private Sector Imports under the Dutch Credit.

No. 20-ITC(PN)/73.—The conditions governing the issuance of import licences for Public and Private Sector imports under the Dutch General Purpose Credit as given in Appendices I & 11 to this Public Notice are notified for the informa- tion of the trade.

APPENDIX I

Effective from 15th November, 1973

CONDITIONS FOR LICENSING PUBLIC SECTOR IMPORTS UNDER THE DUTCH GENERAL PURPOSE CREDIT

1. The licence will generally be issued with a validity period of twelve months. Within a fortnight of the receipt of the import licence, the importer should intimate to the Department of Economic Affairs, the fact of receipt of the import licence indicating the number, date and value of the import licence.

( 119 )

2. Firm order on C.&.F. basis must be placed on the Dutch Suppliers and copies of the contracts furnished to the Ministry of Finance, Department of Economic Affairs within six months from the date of allocation or tour months from the date of issue of the import licence. In cases where orders are not placed within this stipulated period of 4 months, the licencees should apply to the Chief Controller of Imports & Exports, endorsing simultaneously a copy to the Department of Economic Affairs, for suitable extention in the period of ordering, giving adequate justification for delay in placing orders. Such requests will be considered on merits by the Chief Controller of Imports & Exports in consulta- tion with Ministry of Finance (Department of Economic Affairs). The extension of time limit for finalising contracts, if agreed to, would be for another 3 months.

3. The contract of supply between the Indian importer and the Dutch Sup- plier is subject to the approval of the Government of India only if the value of the contract is below Dutch Guilders 50,000. However, if the value of the con- tract exceeds this amount, it is subject to the approval of both the Government of India and De Nederlandse Investerings bank Voor Ontwikkeiings-landen N. V. (The Netherlands Investment Bank for developing Countries, N. V.), The Hague, for financing under the Dutch Credit (General Purpose) arrangement.

4. The value of the contract should be expressed only in Dutch Guilders. The contract should normally provide for cash payments on presentation of shipping documents. For any customary performance guarantee where requir- ed, the suppliers should be asked to furnish a bank guarantee/warranty.

5. Only goods of Dutch origin are eligible for being financed under this Credit, Non-Dutch components to the extent of 10 per cent in respect of chemicals and 20 per cent in respect of other imports can, however, be considered for being financed under the Credit. The minimum value of a contract eligible for financ- ing under this Credit is 25,000 Dutch Guilders (Rupees 57,000 approximately).

6. The licence codes "S" and "NE", as indicated in the first and second suffix after the licence number, should be mentioned 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.

7. While concluding a contract the importers should ensure that the follow- ing provisions/clauses are included in their contracts: —

(i) "The contract Is subject to the approval of the Government of India (if the value of the contract is Dutch Guilders 50,000 or below) and subject to the approval of both the Governments of India and of the Netherlands" (if the value of the Contract exceeds Dutch Guilders 50.000).

(11) "The goods are of Dutch origin/manufactures."

(Hi) "This contract will be governed by the 'direct payment system' of the Dutch General Purpose Credit and will become effective after the Government of India's approval to this effect has been received".

8. Immediately after the contracts are concluded, the importer should furnish five photostat or certified copies of the contracts/supply orders accompanied by a photostat copy of the Import Licence to the Ministry of Finance, Department of Economic Affairs. He should also furnish the following information:

(a) Name and address of the Indian importer and/or Project authority

where necessary.

(b) Name and address of the Dutch supplier.

(c) (i) Name and address of the Supplier's bank in the Netherlands, If

any, and (ii) the importers' bank in India.

(d) Value of the contract order in Dutch Guilders and in Indian Rupees.

(e) Short description of goods to be imported.

(f) Time for delivery (A schedule indicating probable dates and amounts oi payments to be made to the supplier under the contract may also be given).

(fi) Detailed list of shipping documents, like Bill of Lading, Invoices. Certificate of Origin, etc., which the Netherlands investment bank for Developing Countries should demand, from the Suppliers before making payment, together with the member of copies 01 each docu- ment required.

(h) 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, tiucn com- mission will be payable by the Importers direct to the Agents in, rupees.

(i) Name and address of the Importers' Bank to whom the original docu- ments (negotiable) should be sent by the Netherlands investment bank for Developing Countries N.V., the Hague.

(i) Date up to which the Letter of Authority should be made valid, (k) Special instructions, if any. (1) Departments of Central/State Governments and State Electricity Boards will also give full particulars of tne Accounts Ufncera tnrough wnom deoits are to be raised,

9. On receipt of the copies of the contract/supply order, and the information required in paragraph 8 above, the Department oi i

In respect of contracts valued at DG 50,000 or below approval of Dutch autho- rities is not required. The approval of the Government of India, therefore, will be communicated to the Indian importers while forwarding tne copies oi their contracts/supply orders to the Netnerlands Investment bank for Developing Countries, AS for the contracts valued at DG 50.000 or above, as soon as the ap- proval of the Dutch Bank to the financing of the contract under the Dutch Credit is received, the importer will be informed that their contract has become etfective.

10. A monthly report, as in Annexure II, showing the utilisation status of the licence, should also be furnished to the Ministry of Finance, Department of Eco- nomic Affairs.

11. The importers will have to deposit: —

(i) the rupee equivalent of the payments to the suppliers in Dutch Guilders at the composite rate as 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 Netherlands Investment bank for Developing Countries N.V. The Hague, 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.

12. It will be obligatory for all importers except the Departments of Central/ State Governments and the State Electricity Boards to make requisite rupee deposit only through Authorised Dealers in foreign exchange and also to get the Exchange Control Copy of the Licence endoreed by them as required in Public Notice No. l84-ITC(PN)/68, dated the 30th August, 1968. They should also full in the requisite 'S' Form as prescribed by the Reserve Bank of India.

13. The moneys specified in paragraph 11 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 Judicial Deposits-Civil Deposits-Deposits for purchases abroad-Purchases under Credit/Loan

Agreements. Deposits for cost of equipment etc., obtained under the Dutch General Purpose Credit."

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.

14. In 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 Revenues, on the basis of advices issued by the Department of Economic Affairs-Economic Aid Accounts Branch.

ANNEXORE I

No. F.

Government of India (Bharat Sarkar)

Ministry of Finance (Vitta Mantralaya)

Department of Economic Affairs (Arthik Karya Vibhag)

New Delhi, the

To

The Netherlands Investment bank for Developing Countries, The Hague, Netherlands. Agreement for the loan of million Netherlands Guilders'— Request for direct payment.

Dear Sirs,

Letter of Authority No

With reference to our application of today's date as to the financing of the transaction between M/s India and M/s Holland, out of the loan made by your Bank to India, we hereby request and authorise you unconditionally and irrevocably to pay in accordance with the terms and conditions of the above mentioned contract to the supplier in Holland the amount of N.F1 ( only). It is requested that the invoices. shipping and other documents presented by the Dutch supplier be despatched direct to the

(Importer's Banker),

Kindly forward the debit advice to the Government of India, Ministry of Finance, Department of Economic Affairs, (Economic Aid Accounts Branch), Jeevan Deep, Parliament Street, New Delhi, This letter of Authority will remain valid upto

For the President of India

Copy to (The importer's 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.

ANNEXURK II Form of Utilisation, Report in respect of Dutch Credits (to be furnished separately in respect of each Licence).

1. Name of the Importer. 2. Number and Date of Import Licence. 3. Value of the Import Licence. 4. Value of orders placed. 5. Value of orders yet to be placed. fi. Payments made against the orders already placed. 7. Payments yet to hv made (with a quarterly estimate of payments with values and anticipated dates of payment).

8. Surrenders, if any.

Signature of the authorised officer of the Importer.

APPENDIX II

Effective from 15th November 1972

CONDITIONS FOR LICENSING PRIVATE SECTOR IMPORTS UNDER THE DUTCH GENERAL PURPOSE CREDIT

1. The licence will generally be issued with a validity period of twelve months. Within a fortnight of the receipt of the import licence, the importer should inti- mate to the Department of Economic Affairs, the fact of receipt of the import licence indicating the number, date and value of the import licence.

2. Firm orders on C.I.F./C:&:F: basis must be placed on the Dutch Suppliers and copies ol' the contracts furnished to the Ministry 01 Finance, Department of Economic Affairs within four months from the date of issue of the import licence. In cases where orders are not placed within the stipulated period of four months, the licencees should apply to the Chief Controller of Imports & Exports, endorsing simultaneously a copy to the Department of Economic Affairs, for suitable exten- sion in the period of ordering, giving adequate justification for delay in placing orders, Such requests will be considered on merits by the Chief Controller of Imports & Exports in consultation with Ministry of Finance (Department of Economic Affairs). The extension of time limit for finalising contracts, if agreed to, would be for another 3 months.

3. The contract of supply between the Indian importer and the Dutch Supplier is subject to the approval of the Government of India only if the value of the contract is below Dutch Guilders 50,000. However if the value of the contract exceeds this amount, it is subject to the approval of both the Government of India and De Nederlandse Investerings bank Voor Ontwikkelingslanden N.V. (The Netherlands Investment Bank for Developing Countries, N.V.) The Hague, for financing under the Dutch Credit (General Purpose) arrangement.

4. The value of the contract should be expressed only in Dutch Guilders. The contract should normally provide for cash payment on presentation of shipping documents. For any customary performance guarantee, where required, the sup- pliers should be asked to furnish a bank guarantee/warranty.

5. Only goods of Dutch origin are eligible for being financed under this Credit. Non-Dutch components to the extent of 10 per cent in respect of chemicals and 20 per cent in respect of other imports can, however, be considered for being financed under the Credit. The minimum value of a contract eligible for financ- ing under this Credit is 25,000 Dutch Guilders (Rupees 57,000 approximately).

6. The licence codes "S" and "NE" as indicated in the first and second suffix after the licence number are applicable in the case of direct payment procedure. These codes should be mentioned 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.

In cases of imports under re-imbursement procedure, the Code words would be "R" "NE" and these numbers should be given on both the Import Control and Exchange Control copies.

7. While concluding a contract the importers should ensure that the following provisions/clauses are included in their contracts: —

(i) "The contract is subject to the approval of the Government of India (if the value of the contract # Dutch Guilders 50,000 or below) and subject to the approval of both the Governments of India and the Netherlands" (if the value of the contract exceeds Dutch Guilders 50,000).

(ii) "The goods are of Dutch origin/manufacture."

(iii) "This contract will be governed by the 'direct payment system' of the Dutch General Purpose Credit and will become effective after the Government of India's approval to this effect has been received".

(iv) In cases where the importer wishes to adopt the reimbursement system, the words 'direct payment¹ indicated in (iii) above, will be substitu- lod by the words "re-imbursement system"; but in such cases, the vulue of the contract will not exceed Rs. 1 lakh. In such cases it

will not be necessary to send to Government of India a Bank guaran- tee but the parties may have (will need) to open Letters of Credit, if required by the Suppliers.

8. Immediately after the contracts are concluded, the importer should furnish five photostat or certified copies of the contracts/supply orders to the Ministry of Finance, Department of Economic Affairs, along with the following documents: —

(i) A photostat copy of the Import Licence. (ii) A bank guarantee from an approved scheduled bank, duly adjudicated in the form attached (Annexure HI), agreeing to deposit the amount specified in para 13 below (the footnote in the Bank Guarantee form should be noted for strict compliance).

N.B.—Importers should note that after payment to the Dutch Suppliers, the Netherlands Investment Bank for Developing Countries, N.V., The Ha^ue will Rend 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.

9 While forwarding¹ the above documents, the following information should also be furnished to the Department of Economic Affairs; —

(a) Name and address of the Indian importer and/or Project authority

where necessary.

(b) Name and address of the Dutch supplier. (c) (1) Name and address of the Supplier's bank in the Netherlands, if

any. and (ii) the importers' bank in India.

(d) "Wue of the contract order in Dutch Guilders and In Indian Rupees. (e) Short description of goods to be imported. (f) Time for delivery (A schedule indicating probable dates and amounts of payments to be made to the supplier under the contract may also be Riven).

(g) Mode of payment (i.e. direct pavment through a Letter of Authority

or re-imbursement procedure through a Letter of Credit).

(h) Detailed list of shipping documents, like Bill of Ladine. Invoices. Certificate of Oritrln etc.. which the Netherlands Investment bank for Developing Countries should demand from the Supplier? before making payment, together with 1he number of copies of each docu- ment required.

(1) Indian Agent's comminsion. if any included in the contract (Amount or percentage to be indicated), which will havn 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.

0) Special instructions, if any.

REIMBURSEMENT PROCEDURE

10. Tn cases of Import licences -where the value is below Rs. 1 lakh, the Impor-

11. On receipt of the copies of the contract/supply order, the Bank Guarantee and the information required in paragraph 9 above, the Department of Economic Affairs will forward a copy of the contract to the Dutch authorities through the Embassy of India at the Hague, and a Letter of Authority to the Netherlands Investment b"nk for Developing Countries, The Hague (in the form at Annexure I) authorising payment to the suppliers against shipping documents will be issued except in cases processed under the Re-imbursement procedure as outlined In para 10 above.

In respect of contracts valued at D.G. 50.000 or below approval of Dutch autho- rities is not required. The approval of the Government of India, therefore, will be communicated to the Indian importers while forwarding the copies of their contracts/supply orders to the Netherlands Investment bank for Development countries. As for the contract valued at DG 50,000 or above, as soon as the approval of the Dutch Bank to the financing of the contract under the Dutch Credit Is received, the importer will be informed that the contract has become effective.

12. A monthly report, as in Annexure II, showing the utilisation status of the licence, should also be furnished to the Ministry of Finance Department of Eco- nomic Affaira.

13. The importers will have to deposit: —

(if) the rupee equivalent of the payments to the sup-oilers in Dutch Guilders st the composite rate as prescribed in Public Notice No. 15-ITC(PN)/ 72 dated the 28th January 1972 and such other Public Notices on this subiect, which may be issued from time to time. The latest Public Notice on the subject is 108-ITC (PN) /72, dated 21st July 1972.

(ii) interest at the rate of six ner cent annum on th" amounts rpoulred to be denoMtPd at item (i¹) abov= from the date of actual rjivnent to the SUUPHPT by the Netherlands Investment bank for Developing Coun- tries N.V., The Hairue. to the date of n^tual denosrt of the ruisee equivalent by the importer in the State Bank of India, Tis Hazari, Delhi or Reserve Bank of India. New Delhi.

14. It will be oWifntnrv for the imnorters to make reairsH*" n w= rlpoos't ANNEXTJRE I

out of the loan made by your Bank to India, we hereby request and authorise you unconditionally and irrevocably to pay in accordance with the terms and conditions of the above mentioned contract to the supplier in Holland the amount of N.F.I only), It is requested that the invoices, shipping and other documents presented by the Dutch supplier be despatched direct to the

(Importer's Banker).

Kindly forward the debit advice to the Government of India, Ministry of Finance, Department of Economic Affairs, (Economic Aid Accounts Branch), Jeevan Deep, Parliament Street, New Delhi. This letter of Authority will remain valid up to

For the President of India

Copy to (The importer's Bank). They should ensure that the rupees equivalent calculated =-it the Composite rate prescribed in Public Notice No. 15-ITC(PN/l/72, dated 2ftth 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.

ANNEXURE II

Form, of Utilisaiicto Report in reaped of Dutch Credits

(to be furnished separately in respect of each Licence).

1. Name of the Importer.

2. Number and Date of Import Licence, 3. Value of the Import Licence. 4. Value of orders placed. 5. Value of orders yet to be placed. 6. Payments made against the orders already placed. 7. Payments yet to be made (with a quarterly estimate of payments with

values and anticipated dates of payment).

8. Surrenders^ if any.

Signature of the authorised officer of the Importer.

ANNEXUHE III

GUARANTEE BOND

(To he furnished by Banks under the procedure for the import of goods under the Dutch General Purpose Credit)

To

The President of India,

In consideration of the President of India ("hereinafter called 'the Govern- ment') having agreed to arrange for payment in Dutch Guilders for the import of by (hereinafter called the Importers) against the import licence number dated the issued under the terms and conditions of the Dutch Genernl Purpose Credit and in pursuance of Import in favour of the Importer against the above mentioned agreement, we (Bank) at the request of the importer hereby undertake to arrange to deposit the amounts of the disbursements made by the Netherlands Investment bank for Developing Countries, The Hague nominated by the Impor- ter converted at the prevailing rate of exchange calculated as per Public Notices issued by the Government in the matter from time to time Within ten days of the receipt of advice of payments for credit to the Government account, in the manner and against the appropriate Head of Account an indicated by Govern- ment of India under the said Credit together with interest thereon at the rate of six per cent per annum from the dateof payment to the Dutch supplier to the date of payment of rupee equivalent for Credit to the Government Account. The negotiable set of import documents received from the Netherlands Investment bank for Developing Countries, The Hague will be released to the importer only after the rupee deposits contemplated above 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 at such place and in such manner as the Government may from time to time direct such sums to 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 Dutch Supplier. The decision of the Government as to any default in the said payment by the importer, or on his part and in regard to the amount payable to the Government by us (Bank), shall be final and binding on us (Bank).

3. We (Bankf), further agree that in case of increase in the value of import or increase in the value of unfulfilled deliveries under the con- tract 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 as on the date when the change takes place in proportion to this change.

4. We (Bank, further agree that the guarantee herein con- tained shall remain in full force and effect during the period that would be taken for the performance of the said agreement/contract and that it shall 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 impor- tei and the (Bank), shall not be released from its liability under 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 forbearance, act or omission on the part of the Government or any indul- gence by the Government to the Importer or by any other matter or thing what- soever which under the law relating to sureties shall, but for this provision, have the effect of so releasing the (Bank¹) from its such liability,

6. We (Bank), lastly undertake not to revoke this guarantee during its currency, except with previous consent of the Government, in writing. 7- We (Bqnk), herebv undertake to make additional deposits in terms of Public Notice No. 15-ITC(PN)/72 dated 2,8th January 1972 and No. 108-ITC(PN)/72 dated 21st July 1972 and suoh other Public Notices that may be issued from time to time hereafter.

8. Our liabilitv under this guarantee is restricted to Rs

(plus interest and other charges if any. not expected to exceed one per cent of the guarantee amount) and this Guarantee shall remain in force till the day* of (month): 19 ). Unless claims under this guarantee are made in writing within six months of this date and unless a suit or action to enforce these claims is commence within onnther six months there- after i.e. urrf.o all Government's; rights under this guarantee shall be forefeited and we shall be relieved and discharged from all liability there- under.

Dated the day of for

(Bank) Accented for ntid on behalf of the President of India by Shri

(Name and Designation)

Signature

*Thi<; date shfill bp arrived st by addini? ortp month to the date by which all payments to the Suppliers: ar? expected to be finalised.

NOTE.—The value of thp •.-tnmnod nan^r nn which thin niiHrFiritpr' is to be executed is to be ndiudioated by the Collector of SHmps under Section 31 of the Indian Stamps Act.

K. S. NARANG,

Chief Controller of Imports & Exports.

PRINTED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO fiOAD,

NEW DELHI AND PUBLISHED BY THE MANAGEH OF PUBLICATIONS, DELHI, 1 9 73