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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 212] NEW DELHI, TUESDAY, SEPTEMBER 11, 1973/BHADRA 20, 1895

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

MINISTRY OF COMMERCE

PUBLIC NOTICES

IMPORT TRADE CONTROL

New Delhi, the 11th September 1973

SUBJECT.—Terms and conditions governing the issuance of import licences financ- ed under Internal Development Association Credit No. 402-IN (Indus- trial Imports).

No. 151-lTC(PN)/73.—The terms and conditions governing the issuance of Import licences financed under the IDA Credit No. 402-IN dated the 25th June, 1973 (Eighth Industrial Imports Project) as given in Appendix to this Public Notice are notified for information.

APPENDIX

Terms and conditions governing the issuance of import licences financed under

International Development Association Credit No. 402-IN (Eighth Industrial

Imports Project)

I. The Import licence is issued with an Initial validity period of Twelve months.

II. The goods Imported must fall under the approved list of Roods as per Annexure I.

(1245)

0 C e an f r-ei,ght p a y^b le m R uPe es ^ India on Intta Flag Ship- t

+

III The goods must be purchased from member countries of the World B Af or Switzerland (a list of member countries is attached at Annlxu7e II) b& excluding South Africa and South West Africa. Shipments must be arranged m vessels registered in countries, who are members of World Bank or in I nE f n ^sTe S STetS ( w l t h merits). It 13 most essential that the Roods must be produced in a member country, and not merely transhipped throufih a member country. m e m b er IV. Ordering:

mJ!st be P l a??d on t he ³UPPliers within four months frvrn f

th^lFn^ °r d e rE the date of issue of the import licence. If orders cannot be placed within four months for valid reasons, the licence should be submitted to the licensing autho- rities during the 5th month giving the reasons for the delay in placing orders and indicating the date by which, orders would be placed and extension in the period for ordering is necessary. Such requests will be considered on merits by the C.C.I.&E., in consultation with the Ministry of Finance (Department of Economic Affairs) where necessary.

(b) A statement of orders in the form attached, vide Annexure III, should be sent on the first of each month to (1) the Department of Economic Affairs Economic Aid Accounts Branch, Ministry of Finance, Jeevan Deep Buildinjf" No. 10, Parliament Street, New Delhi (Attention Shri T. M.. Narasimhan Senior Accounts Officer) (2) Dy. Economic Adviser, Ministry of Industrial Development (Attn:—Shri N. K. Das) and (3) to the concerned Industrial Adviser in the Directorate General of Technical Development, New Delhi. Such reports should include particulars of all eligible licences and imports.

IMPORTANT NoTE.™It is necessary that ordering¹ is completed within 4 months or the extended period allowed by the licensing authority in any case. The autho- rised dealers in foreign exchange will not permit establishment of letters of credits, or remittance for payment to foreign suppliers unless this requirement Is com- plied with.

V. Payment against I/L by remittance through Banks

(1) Payment of the cost of goods acquired should be made, according to procedure described in sub-para (6) below. Contracts concluded with foreign suppliers, should specify the mode of payment and also the documents required vide para VI below.

(2) Payment for the cost of goods and services acquired shall be made in the currency of the country from which such goods and services are acquired, that is, in the currency of country of origin of goods and services. To cite an example, if the goods are produced or originated in country A but are shipped from a different country B or the supplier is located in country B or another country C, the payment has to be made in the currency of country A and not repeat not that of country B or country C.

(3) Payment of Ocean freight charges on Indian flag vessels shipments should be made in Rupees in India.

(4) Payment of Indian Agent's commission should be made in Indian Rupees to the agents in India. Surfi, payments, will however form part of the licence value and will, therefore, be charged to the licence.

(5) Expenditure incurred in Indian Currency for Roods procured in (includ- ing services supplied from) India and also from countries who are not members Of World Bank (Vide Anncxure II) is not reimbursable under the I.D.A. Credit arrangement. Ocean freight charges on vessels belontrintr to norumember coun- tries of World Bank is also ineligible for financing under IDA Credit arrange- ment. Hence importers should ensure that shipment is arranged only in ves- sels belonging to member countries of the World Bank. Foreign exchange dea- Jers should also ensure that payment in foreign exchange is not made towards ocean freight for shipment made in vessels of non.member countries of World Bank.

(0) Delated procedure for payment.—Payments against the import licence, may be made by the Importers through authorised dealers in foreign exchange in India by remittance in the normal manner. The importers shall indicate in their con- tracts with suppliers that certain documents required by the I.D.A. have to De submitted by the suppliers to the importers. These documents are described in para (VI) below and in Annexure V and should be sent alongwith a proforma as Indicated in Annexure IV. Two sets- of documents are required, one for payment

IX. Quarterly Reports on estimated payment:

I.D.A. requires quarterly reports indicating the rate at which withdrawals are expected to he made' throughout the disbursement period ol the credit. A statement in form in Annexure VI should, therefore, be sent by importers at the -end of each Quarter i.e. quarter e'ldiryj September 1973, December 1P73, March 1974, June, 1974 and September 1974 by the 10th of the month following the reporting period. In this report all import licences i.e. licences having balances outstanding on 25th June, 1973 and fresh licences issued on cr after 25th June 1973 issued under I.D.A. Credit should be included.

X. Notifying suppliers

The importer should apprise the supplier of any special provision in the im- port licences which affect the suppliers in carrying out the transactions.

XI. Disputes:

It should be understood that Government of India will not undertake any- responaibility for disputes, if any, that any arise between the importers and suppliers.

XII. Future Instructions:

The importers shall promptly comply with anv directions, instructions, or orders issued by the Government regarding any and all matters arising torn or pertaining; to the import licences and for meeting all obligations under the agreement.

XIII. Breach or Violation:

Any breach or violation of the conditions set forth in the above clauses will result in appropriate action under the Imports & Exports (Control) Act. XIV. List of Annexures by Title:

Annexure L—List of Goods. Annexure II.—List of World Bank Member countries. Annexure III.—Monthly report on ordering and payments. Annexure IV.—Proforma for sending documents. Annexure V.—Documents required after payment. Annexure VI.—Quarterly statement of estimated payments.

ANNEXURE I

List of Goods

Baw and Semi-finished materials, components and spare parts for the manu- facture of:

(a) Agricultural

1. Tractors and Power Tillers, 2. Fertilisers. 3. Pesticides.

(b) Electricals

4. Motors, Transformers, Switchgears and Magnetic Steel Stampings. 5. Aluminium Smelting.

(c) Trans-port

6. Commercial Vehicles. 7. Automotive Ancillaries.

(d) Metal Working

8. Machine Cutting and Small Tools. Abrasive, Ball and Roller Barings.

^ T e a v f t n s t r u c t i on and Earth Moving Eauipment including Road Roller* Engines and components.

10. Spare Parts for heavy construction and Earth Moving equipment for atoclr "nd sales.

ANNEXURE II

S. N 0. Name of the country

S, No. Name of the Country

60.  ] Laos.
61. ; Lebanon.
62. : Lesotho.
63. Liberia.
64. : Libyan  Arab  Republic.
65. Luxembourg.
66. Malagasy  Republic.
67. Malawi.
68. Malaysia.
69. Kali.
70. : Mauritania.
71. Maurltus.
 72. Mexico.
•73 Morocco.
 14. Nepal.
 75. Netherlands.
76. New  Zealand.
 77. Nicaragua.
 78. Niger.
 79. Nigeria.
 80. Norway.
 81. ' O m a n.
 82. Pakistan.
 83. Panama,
 84. Paraguay.
 85. Peru,
 88. Philippines.
 87. •Portugal.
 88. Rwanda.

South Arabia. Senogal. SieTa Leone. •Singapore. Somalia. South Africa. Spain. Sudan. Swaziland. Sweden. Syrian Arab Republic.

Tanzania.

. Thailand.

Togo.

1. 2. 3. 4. 5. fi. 7. ". 9. 10. 11. 12. 13. 14, 15. 16. 11. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 2". 29, 30. 31. 32. 33. 34. 35. 36. 37. 38, 39. 40. 41. 42, 43. 44. 45. 46, 47. 48. 49. 50, 51. 52.

89. 90. 91. 92. 93, 94. "5. 96. 97. 98. 09. 100. 101. 102. 103, 104. 106. 106 107 108 109 110 111 112 US 114 11E l lf

. 'Trinidad & Tobago, . Tunisia . Turkey. . Uganda. . ILK. . U.S.A. . Upper Volta. . ^Uruguay. . *Venezuela. .. Vietnam. I. Yemen Arab Rep. ;, Yemen, People's Dem. Rep, of. i. Yugoslavia, I. Zaire. '. Zambia.

in

54. 55. 56. 57. 58. 59.

Afghanistan. Algeria. Argentina, Australia. Austria. Belgium. Bolivia. Botswana. Brazil. Burma. Burundi^ Cameroon, Canada. Central African Rep. Ceylon, Chad, Chile. China. Colombia. Congo. People's Rep. Costa Rica. Cyprus. Dahomey. Denmark. Dominican Rep. Ecuador. Egypt, Arab Rep, of El Salvador. Equatorial. Guinea. Ethiopia. •Fiji. Finland. France. Gobort Gambia, The Germany. Ghana. Greece. Guatemala. Guinea. Guyana. Haiti. Honduras. Iceland. India. Indonesia, Iran. Iraq. Ireland. Israel. Italy. Ivory Coast, ^'Jamaica. Japan. Jordan. Kenya. Khmer Republic. Korea. Kuwait.

*Not members of the I.D.A.

ANNEXURE III

Proforma Report—One for each import licence under I.D.A. Credit

Report as on 1st of each month

1. Import licence No., date and value— . .

2. Ordering Position :-

(a) Total value of orders placed so far (In Rs.). (b) Balance value of orders yet t0 be placed (in Rs.). (c) Phasing of balance orders:~Indicate when these would be completed and confirm that these would be completed within four months from the date of Import licence.

3. Payment positions:—

(a) Total value of payments made so far: Amount

(i) Payments made prior to 25.6.1973. Foreign in Rs.

Currency

(ii) Payments made on or after 25.6.73

25.6.73 to 31.7.1973 August 1973 September 1973 October 1973 November, 1973 etc.

(PlCfise confirm after checking with Bank that documents therefore have been submitted to this Deptt. by then in all cases).

(b) Balance value of payments yet to be made (in Ra.).

(oi Phasing of "balance payments:—

(i) During August, 1973. (ii) During September, 1973, (iii) During October, 1973. (iv) During November, 1973. (v) During December, 1973. (vi) During January, 1974 to March 1974, (vii) During April—June. 1974. (viii) During July—September, 1974.

(Please confirm that payments will be completed by 31.10.1974).

4 Remanrks, if any, particularly regarding any special difficulty experienced In complete utilisation of licence i.e. payments by 31.10.1974.

Sd/.Authorised Representative

on behalf of importer.

ANNEXURE IV

[Referred to in Para V, F (6) and (VI)]

Proiorma For Sending Document Under the I.D.A. Credit Eighth Industrial Imports

Project

s.

Date of foreign exchange remittance by the Bank.

Import licence No. and date

Applicable category of of goods.

No.

Currency in which payment is made and the amount in foreign currency.

4

5 i

3

ANNEXUBE V

(Referred to In Para V and VI)

Documents required in¹ conection with each application for reimbursement, under I.D.A. Credit.

(a) Supplier's Invoice, describing the goods or services (original or legible copy).

(b) Evidence of payment, in the form of—•

(1) Receipted invoice or formal receipt of the foreign supplier, or

(2) Cancelled bank cheque or draft or photostatic copy thereof; or

(3) Commercial Bank's report of Payment IDA form 1—1 (copy attached) may be used when payment has been made under a commercial letter" of credit; or

(4) Other evidence satisfactory to the I.D.A.

(c) Evidence of shipment, in the form of;

(1) A copy of ocean or airway bill of lading (this need not be a signed

copy) or

(2) A statement of the supplier or forwarded that the Roods have been shipped. This statement should include the approximate date of ship- ment, the method of transportation (i.e. air, rail or sea) and the des- tination of the ship/aircraft, the name and flag of the vessel or air- craft (if known) and amount ot ocean/air freight should be given.

NOTE J.—-If shipment has not been made at the time of the application is sub' mltted or if the application relates to a down or progress payment on contract, evidence of shipment should be furnished to the TDA as soon as possible after shipment. This evidence of shipment should be accompanied by a copy of the suppliers' final invoice in cases where the application relates to a down or progress payment.

NOTE 2.—'When commercial letters of credit are used no evidence of shipment is required if the Bank's report of payment indicates that documents evidencing shipment were produced to the commercial bank at the time payment was made; otherwise evidence of shipment as described in (c)(l'j or (2) above wquld be required.

NOTE 3.—Please note carefully that item (1) to (3) under (b) and (1) to (2) under (C) above are the various alternatives and what Is needed is any one of these and not all.

(d) If the withdrawal, is to reimburse the Borrower for a down or pro- gress payment, a copy of the contract or purchase order is required. It is of course only necessary to submit this document once. If payment has been made on a contract on the basis of work per- formed, in addition to a copy of the contract, the Borrower should furnish an engineer's certificate or progress report showing that the payment was due.

(e) Information regarding applicable category of the list of goods as ap-

proved by the I.D.A. vide Annexure I.

NOTE A,—Requirement at (e) above means that the importer himself of his bank

ANNEXURE V

IDA. FORM-I-I.

Bank's Report of Payment Serial No.

, _ „ __

(Name of Commercial Bank)

Date of payment:

Licence No.

(Name of the Borrower or Borrower's Representative).

(Address)

We report having paid the sum of —

to • —— — —under licence No •—• ——

(Name of supplier)

established by — • 1 ' (name and address of buyer)

Our payment commission amounts; to •—-—•

Payments was effected against delivery of the documents as specified in/and in accordance with the terms and conditions of the letter of Credit mentioned above evidencing shipment of

(General description of the merchandise Including the)

per S.S. or R.R. • "~ (Quantity etc.)

from-——— — to

- (Point of shipment Destination) or storage or manufacture of the gcoda described a t— — —

The documents have been disposed of as follows:—

Ocean documents have been forwarded to our above mentioned correspon- dent Bank

The rail-road bill of lading, warehouse receipt of certificate of manufacture have been •

(Description made)

•(Copy of supplier's invoice is attached.)

Very truly yours,

AwncxuHE VI

(Referred to in Para VI of licensing conditions)

Date —

International Development Association Quarterly Report of Estimated Payments (Expressed id thousands of U.S. Dollai) at the rate of exchange Dollar l = R s. 7.279

Total Value

Import

S.N.

Supplying country

Currency of Payment

Licence Date

No. &

ofl/L

Category'- of goods

Value of I/L outstanding on 25.6.1Q73

6

7

5

i

3

4

CALENDER QUARTERS ENDING

Beyond September September 1973

December 1973

September 1974

1974

March 1974

June 1974

10

11

12

8

13

9

Note:

NOTE 1.—The vaue of utilisation upto end of the quarter to which the report relates should be actuals and for the balance estimated payments to be furnished.

2. Figures in Column 8 to 13 should indicate only the foreign currency payable to the foreign supplier (excluding agency commission etc. payable in Indian Rupees).

SUBJECT.—Issue of licences for raw materials, components and spares to proposed

new units in the small scale sector for the period April 1973—March

1974.

No. 152-ITC(PN)/73.—Attention is invited to the provision made in para- graphs 47 and 49 in Section I of the Import Trade Control Policy (Red Book-Vol. I) for April 1373—March '"•".' • •"'.'• 'hich the sponsoring authorities can recommend the licences . •: •. • •; half year application made by a "proposed unit'" Nonly aftc. • • • . . •• . < •.!. into production.

2. On a review of the position, it has been decided that the second application for raw materials, components and srares made by a "proposed" unit can be considered even though the unit has not gone into production, provided the spon- soring authority ha: certified that the unit has installed the requisite machinery.

3. The existing provisions made in the aforesaid paragraph in Section I of the Import Trade Control FoHcy (Red Book-Vol. I) may be deemed to have been amended accordingly.

S. G. BOSE MULUCK,

Chief Controller of Imports and Exports.

l;..:i'I'ED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW "••CU-1J AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI, i)Vi