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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 85] NEW DELHI, TUESDAY, APRIL 10, I973/CHAITRA 20, 1895

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 10th April, 1973

SUBJECT :—Licensing conditions for Public Sector and Government Imports and Private Sector

Imports for the "Twelfth Yen Credit".

No. 54-ITCCPN)/73.—The conditions governing the issuance of import licences for Public Sector and Government Imports and Private Sector Imports for Twelfth (12th) Yen Credit from Japan as given in Appendices I & II to this Public Notice are notified for information.

APPENDIX I

CONDITIONS FOR LICENSING OF IMPORTS BY PUBLIC SECTOR UNDER- TAKINGS AND GOVERNMENT DEPARTMENTS UNDER THE T W E L F TH

YEN CREDIT

Section I.—General Conditions

I(i) The licence will bear the superscription "Japanese XII Yen Credit" and also an indi- cation whether it relates to the Project or non-Project Segment of the Credit. The licence codes for the first and second suffix will be " X / J N ".

I(II) NO remittance of foreign exchange will be permitted against the import licence, except bank charges in Japan which may be remitted through normal banking channels. Any pay- ment towards Indian Agent's commission should be made in Indian rupees to the agents in India Such payments, however, will form part of the licence value and will, therefore, be charged to the licence.

(427)

I("M) The import licence will be issued on C.I.F. basis with an initial validity period of 4 months for ordering and 12 months for completing the shipments. After receipt of the import licence, the importer should intimate the Ministry of Finance, Department of Economic Affairs, W.E. I Section the particulars thereof within a fortnight from the date of issue of the import licence.

i(iv) Firm orders must be placed on C&K basis on the Japanese Suppliers within four months from the date of issue of the import licence. For import licence issued after 1-9-73 the period allowed for contracting will be reduced suitably so as to ensure that contracting is done not later than 1-1-1974. The value of the contract should be expressed in Yen (fraction of Yen should be omitted) and should exclude Indian Agent's commission, if any, which should be laid in Indian Rupees. The FOB cost and freight amount should be shown separately. This condition of placement of contracts within 4 months period will be treated as not having been complied with unless complete contract documents reach the Ministry of Finance, Department of Economic Affairs, W.E.I. Section, within four months from the date of issue of the import licence. If orders cannot be placed within four months for valid reasonSj the licence should be submitted to the CCI&E for revalidation for ordering giving reasons why orders could not be placed within four months. Such requests will be considered on merits by the CCI&E in consultation with the Department of Economic Affairs and, if accepted, the licence will be revalidated for ordering foi a further period not exceeding three months.

i(v) AU payments must be completed within one month after expiry of the licence. In- dividual payments must be arranged upon shipment of goods. The contract shold provide for payment on cash basis, i.e. on presentation of shipping documents. No credit facility of any kind will be permitted to be availed of by the Indian importer from the ] apanese Supplier. The contracts under non-Project and Project Segments should provide for the period of delivery of goodB as follows :—

"months after the receipt of Letter of credit/but to be completed latest by the end of ."

In fixing the terminal date for shipment, it should be noted that this should not be beyond 31-12-74 in the case of non-Project Segment and 31-12-75 in the case of Project Segment.

Section II.—Special points to be kept in view wfrile contracting

2(0 The payment to the Japanese Suppliers should be arrrnged through un imvccable letter of credit to be opened in their favour through the Bank of India, Tokyo, under the Japanese Twelfth Yen Credit, the details of which are given in Section V below,

2(tt) Only one c o ntract should be entered into for the full value of the import licence. In exceptional cases, two contracts may be permitted for which the prior approval of the Department of Economic Affairs, Ministry of Finance, should be obtained within one month of the issue of import licence.

2("M) The value of an individual contract to be placed under the non-Project Segment of the Twelfth Yen Credit should not be less than Yen to million except for the following two categories where a lower minimum value could apply as indicated against each of them :—

Category

Amount

(0 Indo-Japanese Joint Ventures Yen 2 million

(u) Contracts of National Small Industries Corporation (NSIC) . Yen 2 million

For the project Segment of the Twelfth Yen Credit, the value of each contract should not be less than Yen 30 million.

Section III.—Special points to be incorporated in the contracts

3(0 The contract should contain a specific provision to the effect that the contract is arranged in accordance with the Loan Agreement between the Government of India and the Japanese Exim Bank dated 2nd February, 1973, concerning the Twelfth Yen Credit and will be subject to and become effective on approval of the Government of India and the Japanese Exlm Bank for financing it under the Twelfth Yen Credit.

3(w) The contract should contain a specific clause to the effect that the Japanese Supplier would agree to make shipping arrangements in consultation with the Embassy of India, Tokyo, and that for this purpose he would keep the Embassy of India, Tokyo, informed of the delivery schedule of the goods involved and notify the Embassy of India at least four weeks in advance of the shipping required so that suitable arrangements could be made. In exceptional cases, where the Indian importers require it, this period of notice may be rerduced. The Japanese Supplier should also agree to send a cable advice to the Importer after each shipment giving the necessary details and a copy thereof should be sent to the Embassy of India, Tokyo.

3(iiJ) The contract should also contain a specific provision to the effect that the Japanese Supplier would agree to furnish such information and documents as may be required under the Yen Credit arrangements by the Government of India on the one hand and the Japanese Exim Bank/participating Japanese Banks on the other.

•Section XV.—Contract approval by Exim Rank

Within a fortnight of placement of contracts, the licensee should forward four copies of the contract with the Japanese Supplier, signed by both the parties, together with a photo copy or an attested copy of the relevant valid import licence to WE I Section, Department of Economic Affairs, Ministry of Finance, North Block, Central Secretariat, New Delhi,alongwith a statement in Jquadruplicate covering the following :—

(a) Name, postal and telegraphic address of the Indian Importer, (ft) Name and address of the Japanese Supplier. (c) Name and address of the importer's bank in India. This should be any branch of State Bank of India or any branch of any of the nationalised banks.

(d) Value of the contract in Japanese Yen and Indian rupees converted at the composite rate of exchange, indicating F.O.B. value and freight charges separately.

ie) Short description of the goods to be imported. (/) A schedule indicating the probable dates and amountB of payments to be made to the supplier under the contract. (The presumptions on which the schedule is based may also be indicated.)

(g) Number and date of the import licence. (K) Indicate if the project is an Indo-Japanese Venture. If so, the following particulars of the collaboration agreement, whether financial or technical, should be given in a note clearly indicating if the collaboration agreement is still valid :—

(i) Name and address of Japanese collaborator,

(u) Date of Collaboration Agreement. (iii) Item of manufacture, (iv) Nature of collaboration. (v) Upto what period collaboration is valid. (ft) Any other information.

4(u") In case of allocations under Proiect Segment additional information should oe furnished (4 copies as in Anncxure I) alongwith copies of the Contract for obtaining the approval of the Japanese Authorities to the allocation besides their approval to the contract. In these cases, the Importer has also to send a progress report (in triplicate) regarding utilisation of the foreign ex- change to the Ministry of Finance, Department ol Economic Affairs, W.E. I Section in the first week of January and July of each year pertaining to the preceding six-month period.

4(i") Ministry of Finance,Dcpartment of Economic Affairs, W.E.I. Section,would arrange to send copies of the contract to the apanese Exm Bank (through t he Embassy of India, Tokyo) for their approval for financing it under the XII Yen Credit.

4(i") On receipt of intimation of contracs approval from the Japanese Exim Bank the licen- see will be informed of the same by Ministry of Finance, Department of Economic Affairs, W.E.I. Section, who will also forward one set of the documents to the Controller of Aid Accounnts, Department of Economic Affairs, Ministry of Finance, Jeevan Deep Building, 10, Parliament Street New Delhi. (The Japanese Exim Bank will send a copy of their Notice of Approval of the contract to the Bank of India Tokyo, also)

Section V.—Payment to the Japanese Supplier—Letter of Credit procedure.

5(1) Within three weeks from the issue of letter of intimation of contract approval from Minis- try of Finance, Department of Economic Affairs, W.E.I. Section,the licensee should approach the Controller of Aid Accounts, Department of Economic Affairs, Ministry of Finance 10 Par- liament Street, New Delhi (hereinafter referred to as the CAA for convenience) for issue of a letter of authorization to be addressed to the Tokyo Branch of the Bank of India for opening ah irrevocable letter of credit in favour of the Japanese Supplier concerned. (It should be noted that the letters of credit in respect of public sector imports would have to be opened onlv through Bank of India, Tokyo)

S(K) If the request is found in order, the CAA will issue a letter of authority to the Bank o" India, Tokyo, (as per Anncxure II) and endorse a copy thereof to the Japanese Exim Bank, Tokyo 1 the Embassy of India, Tokyo and the concerned Bank in India (referred to in Section IV(c) above) On receipt of letter of authority, Bank of India, Tokyo, will establish an irrevocable letter of credit In favour of Japanese Supplier concerned and forward the original letter of credit (along with a

copy thereof) to the Japanese Sponsoring Bank which will be designated by the Japanese Exim¹ Bank in their Notice of Approval to the contract) with the request to hand over the original letter of credit to the Japanese Supplier concerned. The Bank of India, Tokyo, will also fcrward a copy of letter of credit to the Exim, Bank Tokyo; Embassy of India, Tokyo; concerned Bank in India and the CAA. The above procedure of approving contracts and opening of letters of credit on the basis of letters of authority from the CAA would apply to each of contract amendment and corresponding amendment to letter of authority /letter of credit that may become necessary

S(iV() The Japanese Supplier shall present, after effecting shipment of the goods, the docu- ments specified in the letter of credit to the Japanese Sponsoring Bank. The latter will scrutinise the documents and after endorsing the relative draft, present them for payment to the Bank of India, Tokyo. If the documents are found in order, the Bank of India, Tokyo, will release the amount specified in the documents to the Japanese Sponsoring Bank for payment in turn to the Japanese Supplier. The Bank of India, Tokyo, will also pay the Japanese Sponsoring Bank their banking charges which presently are i/20th of i% of the invoice value. The Bank of India} Tokyo, will thereafter obtain reimbursement of the cost of imports from the apanese Exim Bank.

5(iy) As regards banking charges payable to the Bank of India, Tokyo, for opening of letter of credit, negotiation thereunder, etc. the banking charges of the Japanese Sponsoring bank which are initially paid by the Bank of India, Tokyo, and interest charges for the period counting from the date of payment of the cost of imports by the Bank of India, Tokyo, to the Japanese Sponsor- ing Bank to the date of reimbursement from the Japanese Exim Bank. These charges should be remitted by the concerned bank in India to th; Hank of India, Tokyo, through normal banking: channel without affecting the Government of India's Account,

Section VI.—Responsibility for rupee deposit.

6(j) The original shipping documents will be Invariably forwarded by the Bank of India, Tokyo, to the concerned bank In India which would be a branch of the State Bank of India or any of the nationalised banks (as mentioned in para 4(i)(c) above) who should release these negotiable set of documents to the public sector project concerned only after ensuring that the rupee equi- valent of the Yen payment made to the Japanese Supplier, along with interest charges thereon calculated at the rate of 6% per annum for the period from the date of payment by the Bank of India, Tokyo, to the Japanese Sponsoring Batik/Japanese supplier to the date of rupee deposit is deposited into the Government Account. The exchange rate to be adopted for computing the rupee equivalent of the Yen payments will be the composite rate of exchange as laid down in CCI&E's Public Notice No. i5-ITC(PN)/72, dated 28-1-72 as amended by No. 108—ITC(PN)/72 dated 21-7-72 or as may be notified by Government from time to time through Public Notice of the CCI&E or through Exchange Control Circulars of he Reserve Bank of India. The Head of Account to which the above Rupee deposits should be credited is "T—Deposits and Advances— Part II Deposits not bearing interest—Civil Deposits—Deposits for purchases abroad under direct payment procedure under foreign loans credits" under the detailed head "Deposits for cost of equipment, etc. obtained under the Twelfth Yen Credit from Japan".

6(ii) The amount referred to above should be deposited to the credit of the Government either in the Reserve Bank of India, New Delhi, or State Bank of India, Delhi, or, if this is not feasible, should be remitted by means of a demand draft obtained from any hrBnch of the State Bank of India, or its subsidiaries (drawer) drawn on and made payable to the State Bank of India, Tis Hazari Branch, Delhi-6, (drawee and payee) for credit to Government account as contemplated in Public Notices No. 184—ITC(PN)/68 dated 30-8-68, No. 233-ITC(PN)/68 dated 24-10-68 and No. i32-ITC(PN)/7i dated 5-10-71-

6(iii) The concerned bank in India shall also furnish such additional deposit in the some man- ner stipulated above as may be requested by the Government of India on account of service char- ges within seven days afta| such a demand is made by the Government. While filling in the va- rious columns in the chalEn it should be ensured by the importers/their bankers that the informa- tion prescribed in para 2 of Public Notice No. 132 ITC(PN)/7i dated 5-10-71 is invariably indicated in the column "full particulars of remittance and authority (if any)" of the challan. Thereafter the Treasury Challans evidencing the rupee deposit should be sent by registered post to the CAA indicating reference to the letter of authorisation issued by him and also enclosing copies of invoice and shipping documents.

6(iv) The concerned bank in India should also endorse the amount of rupee deposits on the exchange control copy of the licence and send the requisite " S" Form to the Reserve Bank of India, Bombay.

6(v) In the Case of imports by the Departments of Central/State Governments (includinn Stat* Electricity Boards, etc.) the original shipping documents which need not be routed through a bank, should be sent by Bank of India, Tokyo, to the Departments concerned direct. For the cost of imports the Bank of India, Tokyo, will make the payments initially out of their own resources- and obtain reimbursement thereof from the Japanese Exim Bank in the same manner as stipulated

in para 5(m) above. For their own banking charges and for the banking charges of the Japanese Sponsoring Bank which will be initially paid by them, the Bank of India, Tokyo, will obtain re- imburBement from the Embassy of India, Tokyo. On receipt of details of reimbursement made to the Bank of India, Tokyo, by Japanese Exim Bank and the Embassy of India, Tokyo, respec- tively, as detailed above, the CAA will ruise debits for the rupee equivalent of the Yen amounts against the Accountant General concerned through the A.G.C.R., New Delhi.

NoTp.—This procedure will also supply to the case of Hindustan Steel Limited since they are maintaining a revolving deposit nccount with A.G., Eihar, to whom debits will be raised in the same manner as for Government departmental purchases.

Section.— VII Miscellaneous provisions

7(0 Reports on the utilisation of the import licence

The importer should send a monthly report, after the letter of credit has been opened regard- ing shipments and payments made there against and about the balance left, to the Controller of Aid Accounts, Department of Economic Affairs, Ministry of Finance, Jeevan Deep Building, Parliament Street, New Delhi.

7("V) Notifying Suppliers of Special Conditions

The Hc:ini; should apprise th; supplier of auy special provisions in the import licence which miy afjc: the suppliers in carrying; out the transaction.

7(111) Disputes

It should be understood that the Government of India will not undertake any responsibility for disputes, if any, that may arise between the licensee and the suppliers.

7(j'u) Future Instructions

The licensee shall promptly comply with any directions, instructions or order* Issued by the Gavernmint of India from tlmj to time regarding any and all matters arising from or pertaining to the import licence and for meeting all obligations under the Twelfth Yen Credit Agreement with the Japanese authorities.

7(v) Breach or violation

Any breach of vi Nation of condition¹! s:t forth in th: above clauses will result in appropriate action unier the Imp.irts and Exports (Control) Act.

7(vf) List of Amexures

Ainexure |I—Format for additional information for Project approval.

Annexure II—Letter of Authority Form.

ANNBXURB 1

IMF Ol

RMATION TO BE FURNISHED IN RESPECT OF PROJECTS TO BE FINANCED UNDER THE TWELFTH YEN CREDIT (PROJECT PORTION) J.

Amount applied for financing

I.

1. Total project amount applied for financing. Contract amount applied for financing.

2.

description of enterprise

J

II.

1.

2.

Name Location Brief history

3-

Principal ownic or shareholder and management. Financial Statement (Balance Sheet, Projflt and Loss State .n;nt) for 3 years. Number of employees.

4- 5- 6.

Description of Project

III.

1. X.

3. Transportation facilities 4. Power and Water Supply 5. Supply of raw materials 6. Labour potential 7. Installation schedule 8. Marketability 9. Anticipated sales price and monthly turnover during initial period and after attainment:

of full production

10. Capital requirement and financing. i t. Terms and conditions of sub-loan agreement.

ANNEXURE II

N o. GOVERNMENT OF INDIA

MINISTRY OF FINAKCE

(Department of Economic Affairs)

New£Delhl, the

To

The Bank of India, Tokyo Branch, Tokyo, (Japan)

SUBJECT :—'Import under Twelfth Yen Credit.—Jstw of letter of authority for opening Utter of

credit.

Dear Sirs,

In accordance with the terms and conditions of the agreement dated 9th January, 1973 en- tered into with your Bank you are hereby authorise to open irrevocable letter of credit for an amount not exceeding Yen

favouring M/S

through the

(Sponsoring Bank) as per the attached details.

A copy each of the letter of credit opened by your Bank may be endorse ' to the importers'' Bank, to the Exim Bank, Embassy of India, Tokyo, and to us.

Payments to the suppliers in terms of the letter of creJit will be made initially out of your own funds. After payments, you must claim immediately reimbursements of the amounts paid by furnishing necessary documents aa in the Appendix I to the Exim Bank of Japan.

^For the time lag between the dates of payment by you to the supplier and the date of its re- imbursement by the Exim bank of Japan, you will be pa(d interest as per terms of the above agree- ment directly by the Importers' Bank. The other banking charges including charges for handling documents, if any, and charges payable to the Japanese Sponsoring Bank will also be settled di- rectly by the Importers' Bank. As such no reimbursement of such charges ia to be claimed from the Exim Bank of Japan.

A9 and when any payment is made by you and reimbursement is made to you, an advice in the prescribe! form should be sent to this Ministry.

This letter of authority is intended for opening and L/C favouring the Japanese suppliers. Subsequent amendments to L/C or further fresh L/Cs against this authorisation may not be acted upon in the absence of a specific authority from this Ministry.

This letter of authority will r j main valid upto

Youra faithfully,

Accounts Officer.

F"r Public Sector Imports excluding Oovt. Departments

Copy forwarded to :—

1. Importer

with referece to their letter No- , , , , . . ., , , ,. d a t c f¹ . - . , ,,

2. importers' Banket

They are requested to arrange to deposit the rupee equivalent of the Yen payment to the Japanese suppliers on re- ceipt of documents from the Bank of India, Tokyo Branch. The rupee ehuivalent of amounts disbursed to the suppliers will have to be calculated by applying the prevailing rate of conversion as indicated in Public Notice No. dated . .. and such other Public Notices as may be issued from time to time. Interest (S>6% p.a. tor tno period between the date of payment to the supplier date or reimbursement to Bank of India and the date on which the rupee equivalents are deposited into Government account, ia also required to be deposited into the Government of India account. It should be ensured that these deposits are made before the original set ofimbon documents are handed over to the importer for Customs dta." ranee.

These amoums should be deposited either with the RBt,New Delhi, or th- SBi, Tis Hazari Delhi, or remitted by means of a Demand Draft obtained by them from anv Branch of the SVI, or its subsidiaries (Drawee and Payee) drawn on and made payable to the SBI, Tis Hazari, Deuii-6 (Drawee and Payee). In this connection their attention is also invited to the provisions of trie Public Notices No. 233—ITC(PN)[68 dated 24-10-68 and No. 132—ITC(PN)[7i dated 5-10-71. The head of account to be credited is "T—Deposits & Advances—PT. II Deposit not bearing interest—Civil Deposits- Deposit for purchase abroad under Direct Payment Procedure ^naer the detailed head "Deposit for cost of supnlies and equipment obta ned under Twelfth Yen Crefiit from Japan."

One copy of the challan in original, in cases where the rupee equivalents are credited in caah at the RBI, New Delhi, or the SBI, Tis Hazari, Delhi, as prescribed in Public Notice No. 132- ITC(^N)t7T dated 5-10-71, should be sent by them to the address given below along with a for- warding letter giving full details of the advice notea received from the Bank of India, Tokyo Branch,

The Controller of Aid Accounts, Ministry of Finance (Department of Economicj Affafoi TI Floor, Jecvan Deep Building, Parliament Street, New Delhi-l,

In cases where the rupee equivalent are remitted by means of demand drafts laid down in the Public Notice dated 24-10-tfR mentioned bove, intimations thereof shoul be sent to the address give above. In all cases, full particulars of the rupee equivalents deposited alonir with the amount of interest paid and the period for which interest has been calculated should he fur. nished to this Department.

The banking charges, interest and other charges of the Bank of India, Tokyo Branch, should be settled directly between the Indian Bank and the Bank of India, Tokyo Branch.

3. The Export nand Import Bank of Japan, Tokyo.

4. Embassy of India, Tokvo.

Accounts officer

For Imports on behalf of Govt. Departments.

Copy forwarded to :—

1.

(Name & address of the Importer/Consignee)

the K ^ :^

(Accounts Officer)

2

(Accounts Officer)

APPENDIX II

CONDITIONS FOR LICENSING OF PRIVATE SECTOR IMPORTS UNDER THE TWELFTH YEN CREDIT

Section I.—General Conditions

i(0 The licence will bear the superscription "Japanese XII Yen Credit" and also an indi- cation whether it relates to the project or non-project Segment of the Credit. The licence code for the first and second suffix will be "S/JN".

l(w) No remittance of foreign exchange will be permitted against the import licence, except bank charges in Japan which may be remitted through normal banking channels. Any payment towards Indian Agent's commission should be made in Indian rupees to the agents in India. Such payments, however, will form part of the licence value and will, therefore, be charged to the Icence,

i(t">0 The import licence will be issued on C.I.F. basis with an initial validity period of 4 months for ordering an') 12 months for completing the shipments. After receipt of the import licence, the importer should intimate the Ministry of Finance, Department of Economic Affairs. W.E. I, Section, the particulars thereof within a fortnight from the date of issue of The import licence.

_ l(:V) Firm orders must be placed on CIF or CNF basis on the Japanese Suppliers wltnm fou inonths from the data of issue of the import licence. For import licence issued after 1-Q-1973 the period allowed for contracting will be reduced suitably so aa to ensure that contracting Is done not later than 1-1-1974. The value of the contract should be expressed in Yen (fraction of Yen should be omitted) and should exclude Indian Agent's commission, if any, which should be paid in Indian Rupees and should also exclude the insurance charges if the insurance is done with an lnoiaii InsUrtr In which event the premium must be paid in Indian Rupees. The FOB cost, the height and the insurance element should be shown separately. This condition of placement of contracts within 4 months period will be treated as notliaving been complied with unless complete Contract documents reach the Ministry of Finance Dcptt. of Econoic Affairs, WE I Section within four months from the dateof issue of the import Ucence. If orders cannot be placed within four months for valid reasons, the licence should be submitted to the CCI&E tor revaluation for ordering aivina reasons why orders could not be placed within four months. Such requests w ill je considered on merits by the CCI&E in consultation with the Deptt. of Economic Affairs and, " acepted, tho licence will be revalidated for ordering for a further period not exceeding three nonths.

i(v) All payments must be completed within one month after expiry of the Hecence Indi- vidual payment must be arranged upon shipment of goods. The contract should provide fo* "avment on cash basiB, i.e. on presentation of shipping documents. No credit facility of any kind wiff be permitted to be availed of by the Indian importer from the Japanese SuppHers. T he contracts under non-Project and Project Segment! should provide for the period of delivery of

oods as follows :—

months after the receipt of Letter of credit but to be "completed latest by the end

of

In fixlna the terminal date for shipment, it should be noted that this should not be beyond 1-12-1974 in the case of non-Project Segment and 31-12-1975 in case the of Project Segment.

Station IL—Special points to be kept in view while contracting

am The payment to the Hapanese Suppliers should be arranged through an irrevocable letter of credit to be opened in their favour through the Bank of India, Tokyo, ™der the Japanese Twelfth Yen Credit, the details of which are given in Section V below.

i!ii) Onlv one contract should be entered into for the full value of the import licence. In exceptional cases, two contracts may be permitted for which the prior approval of the Department of Economic:Affairs, Ministry of Finance, should be obtained within one month of the issue of import licence.

i(iii\ The value of an individual contract to be placed under the non-Project Sagmcnt of thi- Twelfth Yen Credit should not be less than Yen 10 million except for the following category where a lower minimum value would apply as indicated below:—

Category Amount

indo-Japanese Joint Ventures Yen 3 million.

For the Project Segment of the Twelfth Yen Credit, the value of each contract should not

be lesB than Yen 30 million.

Section III : Special points to be incorporated in the contracts

3(7) The contract should contain a specific provision to the effect that the contract is arranged in accordance with the Loan Agreement between the Government of India and the Japanese Exim Bank dated 2nd February, 1973 concerning the Twelfth Yen Credit and will be subject to and become effective on approval of the Government of India and the Japanese Exim Bank for financing it under the Twcllth Yen Credit.

3(11") The centred should contain a specific clause to the effect that the Japanese Supplier should furnish a report to the Embassy of India, Tokyo, immediately after completion of shipping .arrangements along with one copy of the invoice and one copy of the Bill of Lading.

3(m") The contract should also contain a Rpecific provision to the effect that the Japanese 'Supplier would agree to furnish such information and documents as may be required under the Yen Credit arrangements by the Government of India on the one hand and the Japanese Exirn Dank/participating Japanese Banks on the other.

Section IV : Contract approval by Exim Batik

4(") Within a fortnight of placement of contracts, the licensee should forward four copies of the contract with the Japanese Supplier, signed by both the parties, together with a photo copy or an attested copy of the relevant valid import licence to WE I Section, Deptt. of Economic Affairs, Ministry of Finance, North Block, Central Secretariat, New Delhi, along with a letter of under- taking (Annexure I) from a bank authorised to deal in foreign exchange through which the letter of credit in favour of the Japanese Supplier will be opened. Besides these, a statement in quadru- plicate covering the following Bhould also be sent :—

(a) Name, postal and telegraphic address of the Indian importer, (i) Name and address of the Sapancsc ruppliers. (c) Name and address of the importer's bank in India (which will be the bank that will furnish the letter of undertaking referred to above). •

(d) Value of the contract in Japanese Yen and Indian Rupees converted at the composite rate of exchange, indicating FOB value, freight and insurance charges separately.

(") Short description of the goods to be imported, (/) A schedule indicating the probable dates and amounts of payments to be made to the supplier under the contract. (The presumptions on which the schedule is based may also be indicated),

(?) Number and date of the import licence.

(h) Indicate, if the project is an Indo-Japanese Venture. // so? the following particulars of the collaboration agreement, whether financial or technical should be given in a note clearly indicating if the collaboration agreement is still valid:—

(0 Name and address of Japanese collaborator. (") Date of Collaboration Agreement, (HI) Item of manufacture. (iv) Nature of collaboration,

5 & 7(") Upto what period collaboration is valid,

(it") Any other information.

4(ii) In case of allocation under Project Segment, additional information should be furnished (4 copies) as in Annexure II along with copies of the Contact for obtaining the approval of the Japanese Authorities to the allocation besides their approval to the contract. In these cases, the importer has also to send a progress report (in triplicate) regarding utilisation of the foreign exchange, to the Ministry of Finance, Deptt. of Economic Affairs, WE I Section, in the first week of January and July of each year pertaining to the preceding six-month period.

4(iii) Ministry of Finance, Department of Economic Affairs, WE I Section, would arrange to send copies of the contract to the Japanese Exim Bank (through the Embassy of India, Tokyo) for their approval for financing it under the XII Yen Credit.

4(iv) On receipt of intimation of contract approval from the Japanese Exim Bank, the licensee will be informed ol the same by the Ministry of Finance, Deptt. of Economic Affairs, WEI Section, who will also forward one set of the documents to the Controller of Aid Accounts, Deptt. of Eco- nomic Affairs, Ministry of Finance, Jeevan Deep Building, 10, Parliament Street, New Delhi. (The Japaneacae Exim Bank will send a copy of their Notice of Approval of the contract to the Bank of India, Tokyo, also).

Section ^ —Payment to the Japanese Supplier—Letter of credit procedure

j(i) Within three weeks fitm the date of issue of letter of intimation of contract approval frcm the M mistry of Finance, Dcptt. of Economic Affairs, WE I Section, the licensee should approach, along vnth a Hank Guarantee m the form prescribed In Annexure III, the Controller of />V Accounts, Deptt. of Economic Affairs, MiniRtry of Finance, 10, Jeevan Deep Building P arliarr.ent Street, New Delhi-1 (hereinafter referred to as CAA for convenience) for issue of a letter of authorisation to the Indian Bank that has furnished the bank guarantee for opening an irre- vocable letter of credit in favour of the Japanese Supplier concerned. (It should be noted, the letters oi credit issued on the Japanese Banks in respect of private sector, imports should be routed invari- at ly through the Bank of India, Tokyo, who will add its confirmation).

5(ii) If the request is found in order, the CAA will issue a letter of authority in the form atta- ched as Annexure IVjto the Indian Bank concerned that has furnished the bank guarantee and' endorse a copy thereof to the Japanese Exim Bank, Tokyo, and the Bank of India, Tokyo On the basis of this letter of authority, the Indian Bank concerned, will establish an irrevocable letter of credit in favour of Japanese Supplier concerned and forward the original letter of credit (along with four copies thereof) to Bank of India, Tokyo, requesting them to add their confirmation and forward it to the Japanese Supplier through the Japanese Sponsoring Bank (which will be designated by the Japanese Exim Bank in their Notice of Approval to the Contract). The Bank of India Tokyo, will forward a copy of the letter of credit to the Japanese Exim Bank and the CAA. The above procedure of approving contracts and opening letters of credit on the basis of letters of authot- rity from the CAA would apply to each contract amendment and corresponding amendment to letter of authority/letter of credit that may become necessary.

5(iii) The Japanese Supplier shall present, after effecting shipments of the goods, the docu- ments specified in the lertter of credit for payment to the Japanese Sponsoring Bank. The letter will scrutinise the documents and after endorsing the relative draft, present them for payment to the Bank of India, Tokyo. If the documents are found in order, the Bank of India, Tokyo, will release the amounts specified in the documents to the Japanese Sponsoring Bank for payment in turn to the Japanese Supplier. The Bank of India, Tokyo, will also pay the Japanese Sponsoring Bank their banking charges which presently are i/ioth of i % of the invoice value. The Bant of India, Tokyo, will thereafter obtain reimbursement of the cost of imports from the Japancao- EMm Bank.

5(iv) As regards banking charges payable to the Bank of India, Tokyo, for adding ita confirma- tion to the letter of credit, negotiations thereunder, etc., the banking charges of the Japanese Spon- soring Bank which are initially paid by the Bank of India, Tokyo, andinterest charges for the period counting from the date of payment of the cost of importB by the Bank of India, Tokyo, to the Japa- nese Sponsoring Bank to the t'ate of reimbursement from tile Japaness Exim Bank, these charges should be remitted by the concerned in India to the Bank of India, Tokyo, through normal "banking channel without affecting the Government of India's account.

Section VI —Responsibility for Rupee deposit

6(i) The original shipping documents will invariably be forwarded by the Bank of India, Tokyo, to the concerned bank in India who should release these negotiable set of documents to the licensee only after ensuring that the rupee equivalent of the Yen payment made to the Japanese Supplier, alongwith interest charges thereon calculated at the rate of 6% per annum for the period from the date of payment by the Bank of India, Tokyo, to the Japanese Sponsoring Bank/Japanese Supplier to the date of rupee deposit, is deposited into the Government Account. The exchange rate to be adopted for computing the rupee equivalent of the Yen payments will be the composite rate of exchange as laid down in CCI & E's Public Notice No. i5-ITC(PN)/72 dated 28-1-72, as amended by Public Notice No. io8-ITC(PN)/72 dated 21-7-72 or as may be notified by Govern- ment from time to time through Public Notices of the CCI&E or through Exchange Control Cir- culars of the Reserve Bank of India. The Head of Account to which the above Rupee deposits should be credited is "T—Deposits and Advances—Part II Deposits not bearing interest—Civil Deposits- Deposits for purchases abroad under direct payment procedure under foreign loans/credits" under the detailed head "Deposits for cost of equipment etc., obtained under the Twelfth Yen Credit from Japan".

6(ii) The amount referred to above should be deposited to the credit of the Government either in the Reserve Bank of India, New Delhi, or State Bank of India, Delhi, or, if this ja not feasible, should be, remitted by means of a demand draft obtained from any branch of the State Bank of India or its subsidiaries (drawer) drawn on and made payable to the State Bank of India, Tis Hazari Branch, Dclhi-6 (drawee and payee), for credit to Government account as contemplated in Public NoticeB No. 184-ITC (PN)/68, dated 30-8-68, No. 233-ITC(PN)/68 dated 24-10-68 and No. i32-ITC(PN)/7i dated 5-10-1971-

6(iii) The concerned bank in India shall also furnish such additional deposit in the same- manner stipulated above as may be requested by the Government of India on account of service charges within seven t ays after such a demand is made by the Government. While filling in the various columns in the challan, it should be ensured by the importers/their bankers that the infor- mation prescribed in para 2 of Public Notice No. i32-ITC(PN)/7i dated 5-10-1971 is invariably-

indicated in the column "full particulars of remittance and authority (if any)" of the challan Thereafter, the Treasury challans evidencing the rupee deposit should be sent by Registered post tb CAA indicating reference to the letter of authorisation issued by him and also enclosing copies of invoice and shipping documents.

6(iv) The concerned bank in India should endorse the amount of rupee deposits on the ex- change control copy of the licence and send the requisite " S" form to the Reserve Bank of India, Bombay.

6(v) After the obligations in terms of the bank guarantee and the letter of authorisation issued by the CAA in the Ministry of Finance are fulfilled, the concerned bank in India can apply to the CAA for the release of bank guarantee. The application for this purpose must be made in the- form laid down in Anncxure V.

Section VII—Miscellaneous provisions

7(i) Reports on the utilisation of the import licence

The importer should send a monthly report, after the letter of credit has been opened, regarding shipments and payments made thereagainst and about the balance left, to the Controller of Aid Accounts, Dcptt. of Economic Affairs, Ministry of Finance, Jeevan Deep Building. Parliament Street, New Delhi.

7(ii) Notifying Suppliers of Special Conditions

The licensee should apprise the supplier of any special provisions in the import licence which may affect the suppliers in carrying out _the transaction.

7(iii) Disputes']

It should be understood that the Government of India will not undertake any responsibility for disputes, if any, that may arise between the licensee and the suppliers.

7(iv) Future Instructions

The licensee shall promptly comply with any directions, instructions or orders issued by the Government of India from time to time regarding any and all matters arising from or pertaining to the import licence and for meeting all obligations under the Twelfth Yen Credit Agreement with the Japanese authorities..

7(v) Breach or violation

Any breach or violation of conditions set forth in the above clauses will result in appropriate action under the Imports and Exports (Control) Act.

7(vi) List ofAnnexures

Annexure I Form of Letter of Undertaking from a bank. Anncxure II Format for Additional information for Project Approval. Annexure III Bank Guarantee Form, Annexure IV Letter of Authority Form. Annexure V Form of Application for Release of Bank Guarantee.

ANNEXURE I

LETTER OF UNDERTAKING FROM THE BANK

The Secretary, Ministry of Finance, Department of Economic Affairs, North Block, New Delhi.

SUBJECT :—Import of goods from Japan under the Twelfth Yen Credit—Import Licence

dated

No for Ra

issued in favour of M/s

Dear Sir,

We hereby undertake to furnish a bank guarantee envisaged in Section V of the Licensing Conditions regarding XII Yen Credit, in your favour, within 15 days of intimation of the approval of the contract by you.

2. We also undertake tn establish ivithin (5 Jays of the authorisation from you the necessary Letter of Credit favouring the Japanese Supplier through the Bank of India. Tokyo, for the lull-value.

\ fthe authorised amount and to provide you a copy thereof.

Yours faithfully,

ANNEXURE II

.[INFORMATION TO BE FURNISHED IN RESPECT OF PROJECTS TO BE FINANCED UNDER THE TWELFTH YEN CREDIT (PROJECT PORTION)

I. Amount applied for financing

1. Total project am aunt applied for financing 2. Contract amount applied for financing.

II. Description of enterprise

1. Name 2. Location 3. Brief history 4. Principal owj;r or shareholder and muiagemsnt 5. Financial Statement (Balance Sheet, ProSt & Loss Statement) for 3 yean 6. Number of employees,

III. Description of Projtct 1

1. Location (site, areaj etc.) 2. Planned capacity 3. Transportation facilities 4. Powers and Water supply 5. Supply of raw materials 6. Labour potential 1 7. Installation schedule 8. Marketability

9. Anticipated ulei tmc: a il m.nt'ily w i a v jr d-irinj initial period a ii aft;r attai-i- ment of full production^)

10. Capital requirement and financing 11. Term3 ani cai-litinn¹) of sub-loan agreement

ANNBXURE III

GUARANTEE BOND

To

The President of India

In caniisrarion of the PraU-at of lalia (Hereinafter called 'the Government') having agreed to arrange for payment in Yens for the import of by (hereinafter called the 'importer') against the import licence No dated

issued under the terms and conditions of Twelfth Yen Credit, we

Bank, at the request of the importer hereby undertake to arrange to deposit the amounts of the disbursements made by the Bank of India, Tokyo, converted at the composite rate of conversion laid down in CCI&E's Public Notice No. l5-ITC(PN)/72 dated 28-1-72 as amended by Public Notice No. 108-ITCCPNV72 dated 21-7-72 or as notificil from time to time in Public Notices/A.D. Circulars within ten d ap of the receipt of advice of payments for credit to the Government account in the manner and against the appropri- ate Heads of Account as indicated by the Government of India under the said credit together with Interest thereon at the rate of 6 per cent per annum, from the date of payment to the Japanese Supplier to the 'late of payment of Rupee equivalent for credit to the Government account. The negotiable set of import documents received fro n the Bank of India, Tokyo, will be released to the Importer only after the rupee deposits contemplated above have been made.

2. We, the

(Bank), also undertake to indemnit y and keep indeminified the Government against any default in payment by the importer of an y sum that may be due and payable from time to time by the importer, to the Government at such place and in such manner us the Government may from time to time direct such sums not exceeding Rs , or any part thereof, for the time being due and payable by the im porter, toge- ther with interest thereon at the rate of interest mentioned in preceding paragraph firm the date of payment to the Japanese 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 onus

(Bank).

3. We

(Bank), further agree that in case of increase in the value of imports or increase in the value of unfulfilled deliveries under the contract 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 tho change takes place, in proportion to this change.

4. We

(Bank), further agree that the guarantee herein contained shall remain in full force and effect during the period that would be taken for the per- formance 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 satis- fied or discharged.

5. The guarantee herein contained shall not be affected by any change in the constitution

(Bank), and the Go- of the importer or the vernment shall have the fullest liberty without effecting the guarantee to postpone for any time and from time to time any of the powers exercisable by it against the importer and the

(Bank) shall not be released from its liability under this guarantee by any exercise of 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 indulgence by the Government to the Importer or by any other matter or thing whatsoever which under the law relating to sureties shall, but for this provision, have the effect of jo releasing the

(Bank¹) from its Buch liability.

6. We

(Bank), lastly undertake not to revoke this guaran- tee during its currency except with previous consent of the Government, in writing.

7. Our liability under this bond/guarantee is restricted to Rs

(month) 19

(plus nterest and all banking charges, not expected to exceed 1 % of the guarantee amount) and this guarantee shall remain in force till* *the date of Unless claims under this bond/guarantee are made in writing within six months of this date and inless suit or action to enforce these claims is commenced within another six months thereafter, :,e. upto all Government's rights under this bond/guarantee ihall be forfeited and we shall be relieved and discharged from all liability thereunder.

Dated the day of 19

for

(Bank).

Accepted for and on behalf of the President of

India by Shri

(Name and designation)

Signature

Signature.

•"•This date shall be arrived at by adding one month to the date upto which the Letter of Credit Is required to be kept valid

NOTE—The value of the stamped paper on which this guarantee is to be executed is to adjudicated by the Collector of Stamps under Section 31 of the Indian Stamps Act

ANNEXURE IV

FOR PRIVATE SECTOR IMPORTERS

No.

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(JDcpaitment of Economic Affairs)

New Delhi, the

To

(Indian Importers' Bank)

SUBJECT :—Import under TwelfthYen Credit—Issue of Letter of Authority for opening Letter

of Credit—Import Licence^— dated —-

Dear Sirs,

With reference to our Bank guarantee No dated

and letter No dated from M/s. ——(Importer) in which they have requested permission for opening a Letter of Credit through your Bank under the Twelfth Yen Credit, I am lo enclose the Department of Economic Affairs Letter of Authority (form attached as Appendix I to this Annexure IV) No,— dated issued to the Bank of India, Tokyo (with one spare copy) authorising . them to arrange payments upto Yen—— —to the Japanese suppliers. This Letter of authority should be sent by you to the Bank of India, Tokyo Branch alongwith the Letter of Credit opened by you.

2. You are hereby authorised to open the Letter of Credit for an amount not exceeding Yen widiin a period of thirty days from the date of this letter under Intimation to this Department. In terms of para 10, Section VII of Exchange Control Manual, you are required to ensure that the date of expiry of the Letter of Credit is not later than 45 days after the final date for shipment as stated in the relative import licence or the date indicated in the Letter of Authority whichever is earlier. Before opening the Letter of Credit, it may please be ensured that the importers are in possession of valid Import Licence.

3. The Letter of Credit opened by you will incorporate a clause that it will be effective only after it has been confirmed by Bank of India, Tokyo. The Letter of Credit will, therefore have to be routed through that Bank requesting them to add their confirmation to the effect that they undertake to pay on presentation of documents in terms of the XII Yen Credit. Bank of India, Tokyo, will forward the Letter of Credit after adding its confirmation to die Japanese Supplier through the Japanese Sponsoring Bank, which will be indicated by the Japanese Exim Bank.

4. The amount of the Letter of Credit should not exceed without a specific authorisation from this Ministry.

5. Tlie Banking and interest charges of the Bank of India, Tokyo, including the banking charges of the Japanese Sponsoring Bank which will be initially paid by the Bank of India Tokyo, will on demand be remitted by you direct to the Bank of India, Tokyo, through the normal banking channels.

6. You are requested to arrange to deposit the rupee equivalents of the Yen payments the Japanese suppliers in terms of the Guarantee furnished by you, within 10 days of the receipt of documents from the Bank of India Tokyo. The rupee equivalent of amounts disbursed to the suppliers will have to be calculated by applying the composite rate of conversion as prevailing on the date of payment to suppliers in accordance with the Public Notice No. I S - I T C ( P N ) / 72 dated 28-1-72 as amended by Public Notice No. 108-ITC (PN)/72 dated 21-7-72 or such other Public Notices, which may be issued from time to time. Interest at the rate of 6 per cent p, a. for the period betwen the date of payment to the supplier and the date on which the rupee equivalents are to be depsitcd into Government account will also have to be credited along will the above amount to the Government of India's account. (Any change in this rate will be intimated if and when made). It will be your responsibility to arrange for the DEP0SI1 OP THESE AMOUNTS correctly before the import document! are HANDED over to the importer.

7. These amounts should be deposited either with the Reserve Bank of India, New Delhi, or the State Bank of India, Tis Hazarl, Delhi or remitted by means of a demand draft obtained by you from any Branch of the State Bank of India or its subsidiaries (drawer; drawn on and made payable to the State Bank of India, Tis Hazari, Branch Dclhi-6 (drawee & payee

In this connection your attention is also invited to the provisions of the Public Notices N o. 233-ITC (PNV68 dated 24-10-1068 and No. 184-ITC (PN)/68 dated 30-8-68 and No. 132-ITC (PN}/7i dated 2-TO-71. The Head o(" Account to he credited is "T-Deposits and Ad- vances—Part II—Deposits not bearing interest—Civil Deposits—Deposits for purchases abroad under Direct Payment Procedure " under the detailed head " Deposit for cost of suppliers and equipment obtained under Twelfth Yen Credit".

8. One copy of the challan in original in cases where the rupee equivalents are credited in cash at the Reserve Bank of India, New Delhi, or the State Bank of India, Tis Hazari, Delhi, as prescribed in Public Notice No. 132-ITC (PN)/7i dated 5-10-71, should be sent by you to the address given below alongwith a "forwarding letter giving deposit and citing reference to this communication:—

The Controller of Aid Accounts, Ministry of Finance (Department of Economic Affairs), 2nd Floor, Jeevan Deep Building, Parliament Street, New Delhi-1.

In case where the rupee equivalents are remitted by means of demand drafts as laid down in the Public Notice No. 233-ITC (PN)/68 dated 24-10-1968, mentioned above, intimations thereof should be sent to the address given above. In all cases, full particulars of the rupee equivalent deposited alongwith the amount of interest paid and the period for which interest has been calculated should be furnished to this Department.

The receipt of this letter may please be acknowledged.

Yours faithfully, Accounts Officer.

•Copy forwarded to :—

1. M/s. Importer for .information, with reference to their letter

quoted above, A copy of the letter of authority is also enclosed,

2. Bank of Tokyo, for information and necessary action in terms of their Agreement with the Government of India dated 9-1-73.

3. Export Import Bank of Japan, Tokyo.

4. Embassy of India, Tokyo, for information.

APPENDIX I TO ANNEXURE IV

LETTER OF AUTHORITY NO.

No. F.

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(Department of Economic Affairs)

New Delhi, the

To

Bank of India, Tokyo Branch, Tokyo, (Japan).

SUBJECT :—Import under TwelfthYen Credit—Issue of letter of authority for conjirmation of

Letter of Credit.

Dear Sirs,

In accordance with the terms and conditions of the agreement dated qth January' 73 entered into with your Bank, we hereby authorise you to confirm the Letter of Credit to be opend by {Indian Bank) favouring Japanese Supplier for Yen covering the import of against contract entered into by (Indian Importer), to be forwarded to the beneficiary through (Japanese Sponsoring Bank) AND to pay the amount under the said Letter of Credit together with charges of the Sponsoring Japanese Bank, on presentation of the requisite documents, thereunder.

2. After each payment, the shipping and other documents (negotiable) may be forwarded direct to {Indian Bank) alongwith a payment advice and you must claim immediately reimbursement of the amounts paid by furnishing necessary documents to the Exim Bank of Japan /partici- pating City Banks. As and when any payment is made by you and reimbursement is made to you an advice in the prescribed form should be sent to this Ministry. "

3. Your banking charges including the banking charges ot the Japanese Sponsoring Bank Initially paid by you ana interest charges under the above Letter of Credit will be settled directly with you by the (Indian Bank).

4. This authority will remain valid upto the

Yours faithfully, Accounts Officer.

ANNEXORE V

FORM OF APPLICATION FOR RELEASE OF BANK GUARANTEE To

The Controller of Aid Accounts, Ministry of Finance, Department of Economic Affairs, Jcevan Deep Building, 10, Parliament Street, New Delhi-i.

Sir,

We are furnlshng below detailed information on the rupee deposits made by us in discharge of our obligations under Bank Guarantee No. • dated for an amount of Rs with the request Tthat the same may be released and returned to us.

1. The name and full address of the importer/licensee on whose behalf the Bank Guarantee was furnished.

2. The import llcenc No. date, value, brief description of equipment and/or commodi- ties allowed for import thereunder.

3. Particulars of the authorisation's) for opening Letters of Credit obDiined from the Ministry of Finance (to be given separately for each letter of authorisation).

(a) Letter No. and date. (*) Amount of authorisation, (c) Japanese Yen Credit No.

4. Particulars of imports and rupee deposits made (to be given separately for each Letter of Credit authorisation).

(a) Particulars of Letters of Credit opened (No., date, value, the supplier's namel (b) Invoice No. and date relative to each Letter of Credit. (c) Amount of invoice (net) in Yen. M) Amount of Rupee deposit. (e) Relative challan No. and date and the name of Treasury/Bank. (f) If by demand draft, No. and date of the demand draft and No. and date ot the Letter with which the draft was sent to the State Bank of India, Delhi. 5. Amount utilised and balance unutilised (Yen) in each Letter of Credit Authorisation.

II. We certify that :—

(1) "The balance amount of Yen available in the authorisation(s) given by the Ministry of Finance has not been utilised/will not be utilised.

OR

No letter of credit was opened under the authorisation(s) and the authorisation(s) lapsed.

OR

The letter of credit was opened againBt the authorisation letter(s) expired unutilised, and

(2) Our obligations under the bank guarantee in question have been duly discharged.

I ll We confirm that the interest and banking charges of the Bank of India, Tokyo including the banking charges of the Japanese Sponsoring Bank relative to this transaction have been remitted by us to the Bank of India, Tokyo.

IV. We request that the bank guarantee may please be released and returned to us for can-

C c l l a t i o n-'

Yours faithfully,

Authorised Agent for and on behalf of the Bank.

•* hichover is applicable.

g ^ B Q SE M U L L I C Kj

Chief Controller of Imports & Expo rts.

I* ART I—SEC.1] . . . GA . OF INDIA . ... AORDLNA . . 447

WONTED BY THB MAKAQKR, GOVERNMENT OF INDIA PRB88, MINTO BOAD, MXW DELHI AND PUBLISHED BY THE MANAGER OF PUBLICATIONS, DELHI, 1973