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

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

)

120

THE GAZETTE OF INDIA EXTRAORDINARY

[PART I—SEC. 1],

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.

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.

\PAKI 1—SEC. 1]

THE GAZETTE OF INDIA EXTRAORDINARY

121

(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<conomic Affairs will forward

a copy of the contract to the Dutch authorities through the Embassy of lnoia at

the Hague; and a Letter of Authority to the Netherlands Investment bank for

Developing Countries, the Hague (in the form at Annexure I) autnoriswg pay-

ment to the suppliers against shipping documents will be issued.

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

j22

THE GAZETTE OF INDIA EXTRAORDINARY

[PAHT I—SEC. 1].~

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

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.

~[PAIIT J—SMC. 1)

THE GAZETTE OF INDIA EXTRAORDINARY

123

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

j2A

THE GAZETTE OF INDIA EXTRAORDINARY

[PART I—SEC. 1]

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.

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-

ters will hn.ve the option to adont the Re-Imhursement Procedure provided no

payments are required to bp withheld for performance etc. Under this system

t*ie importers will not be renuired to furnish the Bnnk Guarantee but their con-

tract will ha.ve to Indicate that the mod" of pavment will be by re-imhurpemeTit

system. The importers will need to open a Letter of Credit on receipt of the

approval of their contract bv the Government of India. Payment? against the

T.etter of Credit will be made bv th^imoorter on the strentrth of the Exchange

Control Conv of the Import Licence. The importer will furnish to t^e Controller

Aid Accounts, Department of Economic Affairs Parliament Street. New Delhi-1.

within lf> dqvs of the shipment of (roods a certificate from his Bank of payment

mad=> to the supplier and also two copies of the invoice bearing a certificate from

the Dutch supplier to the effect that he received a sum of

Dutch

Guilders amounting to 100 tier cent of the invoice vRhie on shipment of (roods.

Ariv omission ov the rMTf. of thi imnnrter;! fo Fend the reimbursement documents

TYrn^lrr>T,t¹v to the Den"rfment of Economic Affnir" IPW be v^;eiLierl ,spri<w.cTi/ and the

C C.I &.E. mav be asked to suspend all import licences in the name of the impor-

ter. Tp ffme the Importer persists in hip dffnult his ra^e may he recommended

to the CC.I&.E for being blacklisted. The importer will in addition be liable

to penalties'/punishment under the law governing Import Control etc.

[PART I—SEC. 1]

THE GAZETTE OF INDIA EXTRAORDINARY

125

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

oniv through Authorised Dealers in foreign eTchantre and al>7o to get tVio Ex^insre

Control Conv of th° Licence endorsed nv them as squired In Pub¹^ Notice

No. lR4-ITCrPN)/68 dated the 30th Au<m< 19RR. Thev ^ould also fill in the

requisite 'S' Form as prescribed by the Reserve Bank of India.

15. The moneys srjpHfled in rwraeranh 13 nbove shall be denoted with the

RMe Bank of India. Tis Hazfiri Branch. Delhi, or the Re^ervp Bank of Tndia.

New Delhi for credit to the Central Government Account under the head of

account—

"T—DfTiO'Hts^3TI^ Ad^fin^S. P=rt TT, Dpniwits nnt Ti°nriri? 'nte'pst—tC\

Other deposit Accounts—Departmental nnd JiTli^ini Detiocitn—CMl

DeT>osttK—Dp.noBiti for riurchnses shroud—Purrha^es under Credit/

Loan Agreements—Denosits for rn*t of equipment etc., obtained under

the Dutch General Purpose Credit.".

ANNEXTJRE I

No. F.

Government of India fBhorat Sarkar)

Ministry of Finance (Vitta Mantralaya")

Department of Economic Affairs (Arthik Karva Vibhag)

New Delhi, the

The "Netherlands Investment Bank for Developing Countries,

The Haeue,

Netherlands.

Agreement for the loan of...

million Netherlands Guilders-

Request for direct payment.

Dear Sirs.

Lettnr of Authority No

With refprpnce to our application of today's dat° as to the flnancirif of the

transaction between M/s

India and M/s

Holland,

12.6

THE GAZETTE OF INDIA EXTRAORDINARY

LPART I—SEC. *T

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)

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

(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,

(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.

[PART I—SEC. 1]

THE GAZETTE OF INDIA EXTRAORDINARY

127

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

(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.