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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 221 NEW DELHI, FRIDAY, SEPTEMBER 21, 1973IBHADRA 30, 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 21st September 1973

SUBJECT.—Conditions for Licensing imports under the Italian Supplier's Credit.

No. 156-ITC(PN)/73.—The terms and conditions governing the issuance of import licences under the Italian Supplier's Credit—(effective from the 1st September, 1973)—as given in the Appendix to this Public Notice are notified for information.

APPENDIX

Conditions for Licensing imports under the Italian Suppliers' Credit—Effective from

the 1st September, 1973

INTRODUCTION

1. Imports under the Italian Suppliers' Credit financing arrangement are neces- sarily on deferred terms of payment spread over a minimum period of ten years No contract envisaging payment over a lesser period will he considered as a valid contract under this Credit. No remittance or opening of a Letter of Credit is permitted except in accordance with the provisions of paragraphs 23 and 24 below.

(1289)

IMPOHT LICENCE

2. The Import Licence will be issued on C.LF./C.&F, basis with initial validity of four months for contracting and twelve months for completing shipments.

3. Each Import Licence will bear a superscription—

"ITALIAN SUPPLIERS' CREDIT". The two suffixes in the licence Code classification number will be "D/IE".

4. Within a fortnight of the receipt of the import licence, the Importer should intimate to the Ministry of Finance, Department of Economic AlTairs (W.E. Ill Branch) the fact of receipt of the import licence indi^atinif the number, date and value of the Import licence and likely date by which the contract documents would be furnished.

5. The condition regarding contracting will not be deemed to have been com- plied with unless complete contract documents, as. provided in paragraph 20 below, are furnished within the stipulated period of four months.

6. Where this stipulation Is not complied within four months, the import licence will be deemed to have become invalid. The import licence may, however, be revalidatcd on an application by the party, along with the licence in original to the licensing authority giving reasons for not complying with the requirement in time. A ropy of this application will also be forwarded simultaneously to the Ministry of Finance, Depariment of Economic Affairs (W.E. Ill Branch), New Delhi for Information,

7. The request for rcvalidation would be considered by the licensing authority, on merits, in consultation with the Department of Economic Affairs, and if accept- ed, the licence will be revalidaled for contracting for a further period not exceed- ing three months.

8. For revalidation of import licence lor completion of shipments, due regard will be given to the delivery schedule Indicated in the contract,and the subsequent amendments thereto as per procedure indicated in paragraph 18(iv) below. A strict view will, however, be taken in cases where the revalidation sought i^ for a period beyond three (3) months from the date of release of foreign exchange for rcmittin the second down payment.

NOTE.—Only the two down payments aggregating to 8—10 per cent of the c tract value and the principal instalments of the deferred portion of the contr / '• value will be debitablc to the Exchange Control Copv of the Import Licence. Ti interest accrued on the instalments, and payable by the Importers will not K debitable to the Exchange Control Copy,

CONTRACTING

9. A contract will normally comprise an agreement signed by both the parties viz. the Indian importer and the Italian Supplier or it may comprise the order placed by the Indian importer and the acceptance/confirmation thereof in equivocal terms by the Italian Supplier.

10. A contract comprising a series of correspondence between the two parties frequently amending/revising the various provisions will not normally be accept- ed. In such cases, it is advisable to prepare a: final document Including therein the terms agreed to by both the parties and signed as such.

GENERAL TERMS OP CONTRACT

11. The contract should be placed on C.I.F, or C & F. basis: The value should be expressed in Italian currency.

12. If any commission is to be paid to the Indian agent of the Italian Supplier, it will be shown separately from the value of the contract. The Indian Agents' Commission will be paid in Indian rupees by the importers but will be set against the total value of the Import Licence

13: The value should be reckoned at the Central rate of one Italian Liro= Rs. 0.013. The above rote of exchange Js, however, subject to revision.

VALUE LIMITS OP CONTRACTS

14. The value of each Individual contract should not be below Rupees Sixty-five thousand (65,000/-).

ORIGIN OF GOODS

15. The goods should be of Italian origin. A stipulation as to the origin of goods should be Incorporated in the contract.

PAYMKNT TERMS

16. The following payment terms are eligible under this financing arrange- ments :—-

(a) Payment of three (3)¹ to five (5) percent of the C.T.F./C.&F. value (ex- cluding Indian Agents Commission, if any) on order becoming effective;

(b) Payment of flVe(5) per cent on completion of shipment; (c) The balance, namely ninety (90) to ninety two (02) percent spread over in equal instalments, annual or half yearly, over a period "I ten (101 years—first instalment commencing one year after the completion of shipment in the' case of annual instalments and six months after the completion of shipment in the case of half yearly instalments-".

(d) The rnle of interest on outstanding balances of principal, including credit

insurance charge;;, if any, should not exceed six (G) per cent per annum.

The conditions indicated at (a), (b). (c) and (d) above should Invariably be in- corporated fn the contract.,

J7. A Bank Guarantee from a first class bank may have 1o be furnished by the Indian importer to the satisfaction of the Italian Supplier in respect ol the deferred payment portion of the value of the contract.

OTUEU CONDITIONS

1H. To make a contract eligible for financing under the Italian Suppliers Credit, the following provisions, apart from the conditions stipulated above as also any others considered necessary by the contracting parties, should also be incorporated in the contract—

(a) the two contracting parties agree that the contract is subject to the approval of both the Indian and Italian authorities for financing under the Italian Suppliers' Credit.

CUSTOMARY GUAHANTEE

SUBMISSION OF CONTRACT

NOTIFICATION OF THE CQNTKACT

2J.. If the contract is complete, the documents etc. aro in order and the Import licence is valid for contracting, the same will be notified by the Department 0f Economic Affairs to the Italian authorities through Embassy of India, Homo.

22. The contract will be deemed to have become effective only when the Depart- ment of Economic Affairs after receiving the approval of the Italian authorities, has issued a letter to that eilect.

PAYMENTS TO SUPPLIERS

23. The first 3-5 percent down payment will be authorised simultaneously with the issue of the Jetter making the contract effective.

24. For the second down payment of 5 percent, the importers will approach, the Department ot Economic Affairs a month or so in advance of the date of shipment. In any case, the sap between the release of the second do wn payment and the date of shipment should not exceed three months.

SUBMISSION OP REPORT

25. A monthly report, as in Annexure III showing the utilisation status of the licence should be furnished to the Ministry of Finance, Department of Economic Affairs, North Block, New Delhi—One copy addressed to F.E.P Branch and another to W.E. Ill Branch.

MISCELLANEOUS

26. The Government of India will not undertake any responsibility for dispute, if any, which may arise, between the Indian Importer and the Italian Suppliers.

27. The Indian importer shall promptly comply with anv direction, instructions, or orders issued by Government from time to time regarding any and all matters arising or pertaining to the import licence.

28. Any breach or violation of any of the conditions prescribed herein will result in appropriate action under the Imports and Exports (Control) Act, 1947, and orders Issued, thereunder.

ANNEXURE I

Illustrative Deferred Poyment Schedule

[Reference Para 18(111)1

Re; Supply of

,

(short description of goods or services).

by

under Italian Suppliers Credit against Import (Name of Suppliers)

Licence. No dated

No. and date of the contract Total amount of Supply Lit First payment of 3/5 per cent Lit Second payment of 5 per cent. Lit Balance to be paid in Ten yearly instalments Lire

Twenty half yearly-

Rate of Interest

S. No. Due Date

Principal Instalment It. Lire

Interest It. Lire

Total It. Lire

u . - *• , ,

.

. .

1. 2. 3. 4. 5. 8. 7. 8. \ 0. nzz.

TOTAL :

ANN"EXURE II

(In duplicates

(Reference Pfira 20)

To

The Secretary, Ministry of Finance, Department of Economic Affairs, W.E. Ill Branch. North Block, Central Secretariat, New Delhi.

SUBJECT.—Import under the Italian Suppliers Credit.

Sir,

In connection with the Import of from Italy under Short description ot the goods or services.

the Italian Suppliers Credit, wo furnish the following particulars: —

(i) Details of the import licence-

fa) Number (b) Date of issue and date of revalidatlon, if any, and period of validity. (c) Value.

(ii) Whether contract finalised within the validity period of the import licence, If not, reasons for the same.

(ili) Name and address of the Indian importer, (iv) Name and address of the Italian suppliers. (v) Value of the contract in Italian Lire (vl) Short description of {?oods to be Im-oorted. (vlf) Terms of delivery (e.g. c.i.f. or c.&f: etc:); (vlil) Schedule for deliveries-expected date of completion of deliveries, (ix) Indian Agent's Commission, if any, included In the contract. (x) Branch of the iRes°rve Bank of India having jurisdiction over the place where Importer functions.

2. Six certified copies of the contract (or continuation of the order and the letter of acceptance/confirmation from the suppliers) and of the amendment (if any), and a photostat copy of the Import licence are enclosed.

3. You arp requested to forward fhn roniract to the Ttallan authorities for approval for being financed under the Italian Suppliers Credit.

Yours faithfully,

Licensee.

ANNRXURE III

(Reference para 25)

(To be furnished separately in resoect of each licence).

The Secretary, Ministry of Finance, Department of Economic Affairs, F.E.P. Branch North B'ock, Central Secretariat, New Delhi.

SUBJECT.—Italian Suppliers Credit—Form of Utilisation Report.

Sir,

In connection with the import of

from Italy under

short description of goods or services)

Department of Economic Affairs letter No dated the .. we furnish the report of utilisation in the prescribed form for the month ending 197 : —

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—

Amount

Lire Rupees Date

(a) (b)

(c)

First Down Payment Second Down payment Principal instalments 1. of deferred portion 2. of the contract value. 3. etc.

(a)

7. Source of remittance i.e. whether through Governmental channels abroad (like ISM, Washington or ISM London) or through an authorised dealer in foreign exchange in India.

(V) If through an authorised dealer: — (0 Name and address of the Banker; (il) Reserve Bank of India, Exchange Control Department approval No and date (If known").

8, Payments yet to be made (with a quarterly estimate of payments with values and anticipated dates of payment),

f). Surrenders, if any.

Signature of the authorised officer of the Importer.

Copy forwarded for information to the W.E. ITI Section, Ministry of Finance, Department of Economic Affairs, Nurlh Block, Central Secretariat, New Delhi.

SiRnature of the authorised officer of the Importer.

S. G. BOSE MULLICK.

Chief Controller of Imports and Exports.

,P*PT 1—SEC. 1] THE GAZETTE OF ittDlA EfcTRAOItDlNAkY n $$

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DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI, 1 9 73