Subject NOT available

click here for IIIF manifest

REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 385] NEW DELHI, TUESDAY, NOVEMBER 27,1973/AGRAHAYANA 6, 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 27th November 1973.

SUBJECT:-Terms and conditions governing the issuance of import licences financed 'under Interna-

tional Development Association Credit No. 356 IN(IDFl)(SEC~~IDA Line of Credit)

No. 200-ITC(PN)/73 The terms and conditions governing the issueance of import licences financed under the IDA Credit No. 356-IN(IDBI)(SFC-IDA Line of Credit) as given in appendix to this Public Notice are notified for information,

APPENDIX

Condition to be stipulated in the Import Licencefinancedunder International Development Associa-

tion Credit No. 356'IN (IDFD~(SBC-IDA Line of Credit).

1. These conditions will be applicable to import of goods and services which have been approved by the Capital Goods Committee of the Government of India in respect of appli- cations placed before it by the industrial concerns in the medium and small scale sector. A list- of industries which are reserved exclusively for development in the Small Scale sector is given at Annexure I. This list is subject to the changes that may be made by the Govt. of India from time to time.

3. The import licence can be issued only after a sub-loan under the Credit has been sanc- tioned by the State Financial Corporation (SFC) of the State in which the applicant unit is situated.

(1707)

The application for import licence should bear the stamp of the SFC to which the industrial unit has applied for a sub-loan and the number of the application for such sub-loan. A copy of the import licence application should be forwafded by the applicant to the New Delhi Regional Office of the IDBL Bank of Barcda Buildirg, Post Box"No. 231, New Delhi-i.

3. Identification

Each import licence will bear the identification mark "IDA IDBI Credit No. 356-IN" follow- ed by the year in which the licence is issued and then followed by a Serial number which is to be given consecutively.¹

4. The goods and servipe" to be financed under the import licence must be acquired from the member countries of the World Bank or Switzerland. A list of such countries is given in Annexure II.

5. The value of the import licence should be determined with reference to the rate of ex- change notified by the Government of India.

6. Orders must be placedf on c.i.f. or C & F basis.

If mere than cne purchase order contract is placed under the import licence, each such purchase order contract should contain an identification mark, for example IDA IDBI Cr. \ No. 356-IN 3 I(i), IDA IDBI Cr. No. 356-IN/73 I(ii) and so on.

1. The import licence will be issued with an initial validity period of 12 months within which shipments shculd be completed. The licence must impress on the foreign suppliers to ad- here strictly to the premised delivery date.

8.(i) Him orders (Fmchase Order supported by Suppliers' order confirmation or Purchase Contract signed by both parties) must be placed within four months from the date of issue of the import licence.

(ii). If orders are not placed within four months, the licensee should apply to licensing authori- ties immediately thereafter (i.e. in the first v eek of fifth month) with the adequate justification for suitable extension in the pericd of ordering. The licensing authorities will extened the validity period for ordering up tp a suitable date, after considering the application on merits, in consulta- tion with the Department of Economic Affairs, Ministry of Finance (FB-I Section), if necessary.

(iii). Incases where orders have rot been placed for the full value of thelicence within4month, extension in the period of ordering will have to be obtained for the balance value which is not covered by orders placed within the prescribed period of four months.

(iv) It will be in the interest of the licensee himself to ensur that ordering is completed with- in the prescribed period of 4 months. In cases where this does not become possible for valid rea- sons, he should, of his own, approach the licensing authorities for suitable extension in the period of ordering as per procedures indicated in (ii) & (iii) above.

(v) The authorised dealers in foreign exchange will exercise necessary checks to ensure that the licensee complies with the requirement of placing orders within four months (or any extended period allowed by the licensing authorities) before any letter of credits is opened by them in this behalf.

9. Payments under the Licence

(i) Payments for goods and services should be made in accordance with the procedure ex- plained in para 10 below. Contracts concluded with foreign suppliers must specify the mode of payment and also the documentation required to be furnished by the suppliers to the licensee as per procedure described in para 10 below.

(ii) Payments for the cost of goods and ervices acquired shall be made in the currency of the country from which such goods and services are acquired, i.e. in the currency of the country of origin of goods, and not with reference to the country of shipment or the country in which the supp- lier is located.

The licensee should, therefore, clearly specify the country/countries from which goods are to be acquired (i.e. the country of the origin of the goods) and should not indicate the currency area i n vague terms. He should also furnich this information to the concerned SFC for applying for sub-loan under the credit for import of machinery and equipment.

(iii) Payments on account of I ndian Agents Commission and freight charges in respect of goods carried by Indian flag vessels are to be made in Indian rupees. Such charges will however form part of the value of import licence and will therefore be charged to the import licence.

(iv) The ocean freight charges for shipment in vessels belonging to non member countriei of the World Bank is inelighiblc for financing under IDA Credit, Hence the licensee should ensure that shipment is arranged by the supplier only in vessels belonging to member-countries of the World Bank. The licensees should specify this in their contract with the suppliers.

10. Detailed Payment Procedm

(i) Payments In foreign currency under the licence will be made through normal banking channel i.e. through Authorized Dealers in foreign exchange In India.

(ii) The prescribed documents are detailed in Annexure-IV and should be sent along with a proforma as in Annexure-V by the Licencee's Bank opening the Letter of Credit.

(iii) The licensee should specify in their contract with the suppliers that the documents speci- fied in; Anneanire-IV are required to be furnished to the Licencee'B Bank.

(iy) The Bank in India while opening the Letter of Credit on behalf of the Licensee should also stipulate in the Letter of Ctedit that the said documents are required to be furnished to the Bank at the time the bills are drawn under (U* letter of Credit.

(v) These documents, after receipt will be tftparared and pmn"d together and forwarded by the Licensee's Bank to the concerned SFC with particulars of the relative import licence duly noted in each of these documents as indicated in Annexure-V. SFC will retain these documents for a minimum period of 3 years in its custody.

(vl) The licensee should note that though the Bank opening the letter of Credit is required to furnish the prescribed documents to the concerned SFC, he is to be treated as equally responsi- ble for ensuring submission of these documents to the concerned SFC. He is therefore advised that he should check promptly with the Bank that the documents have been furnished in time to the concerned SFC. The concerned SFC may approach the licensee for relevant documents if and when necessary.

NOTE-—It should be clearly understood that the concerned SFC invariably receive the docu- ments after the payments have been remitted.

11. All payments under the licence must have to be completed within the validity period of the import licence including 30 days grace period normally permitted under the licence,

12.(1) A statement of orders in the form attached (Annejcure-III) should be sent to the con- cerned SFC indicating the progress of utilisation of licence by way of orders placed letter of Credits opened, actual imports and remittances made and also expected dates of future shipment. The first report should be sent after 4 months from the date of issue of licence or earlier if the ordering is completed and thereafter on the 1st of every month.

(ii) As on the 28th February and 3m August each year, licensees shall OIBO furnish to the Director of Statistics, Office of CCI&E, Udyog Bhavan, New Delhi a half-yearly return (with a copy to the Foreign Exchange Section of the Ministry of Industrial Development) indicating the progress in utilisation of licence by way of orderB placed letter of credit opened, actual imports and remittances made and also expected dates of future shipment.

13. Maintenance 0 Books and Records

The importi rs Bhall maintain books and records adequate to identify the goods acquired out of the proceeds of the credit to disclose the use thereof in the project and to record the progress of the project. Such records and books shall be maintained for a period of five years after the date ot acquisition of the goods. Importer shall enable the authorised representatives of Ministry of Finance, (Department of Economic Affairs) SFC IDBI IDA to inspect the relevant records and < l o5u m e n t⁸ r c I a t cd t⁰ t ne Project, the goods acquired out of the proceeds of the gredit and shall afford all reasonable opportunity and assistance to them for such examination whenever such an occasion arises.

14- End-use of goods :

Such goods and sercices acquired against the licence granted under this credit shall be uaii exclusively in the carrying out of the Investment Project.

15. Notifying suppKtn

The importer should apprise the supplier of any special provision In the import licences which,

affect the supliers in carrying out the transitions.

16. Disputes

It ihould be understood that Government of India IDBI SFQi will not undertake any respond

ability for disputes that may arise between the Importers and suppliers.

17- Futur* Instructions

The Importers shtU promptly comply with any directions, instructions, or orders Issued by

the Government regarding any and all matters arising from or pertaining to the Import licences and

•nd for meeting all obligations under the Agreement for the IDBI-IDA,

18. Bnaah or violation

Any breach or violation of the conditions set forth above will result in approriate actfofunder

the Imports and Biportt (Control) Act.

ANNBXunt I

List ofmdustms whkh art rtstrwi txclusivtfy for dmitiolmmt in tht Small Scah S<^U-..

As of February, 1970

1. Absorbent Cotton.

2. Automobile Radiators (except for expansion on merits).

3. Barbed Wire.

4. Beam Scale.

5. Bichromates (except for exports).

6. Bolts and Nuts (except High Tensile and other special type).

7. Conduit Pipes—Metallic.

8. Domestic Electric Appliances and Accessories such as electric iron, roasters, heaters, washing

machines etc., other than vacuum cleaners, indstrial washing and dry-cleaning machines etc.

9. Dyes—1) Azo Dyes (Directs and Acids) and (ii) Basic Dyes.

10. (a) Electrical Wiring Accessories;

(b) Electrical Light fittings (such as chockes, Btarters, reflectors etc).

ir. Expanded Metal.

12. Fireworks,

13. Formulated Perfumery Compounds.

14. Full P.V.C. Footwear (Chappsls, Sandals and Shoes), except for export by predominantly

export-oriented units.

15. Glass holloware by semi-automatic process.

16. Gun Metal Bushes.

17. Hand Numbering Machines. <

18. Hand Stapling Machines.

19. Hurricane Lanterns.

20. Hypodermic Needles.

21. Inscctidide Dusters and Sprayers (Manual),

22. Laundry Soap.

23. Leather Footwear (except for expansion of the existing units for exports anu new units Jfot

exports).

34. Machine Screws (except for Socket Head and Special Types).

25. Machine Shop Vices.

26. Metal Clad Switices. upto 30 Amps.

27. Miniature Bulbs :

(a) Miniature Vacuum Bulbs.

(b) Torch Bulbs. (c) Radio Panel Bulbs. (d) Cycle Dynamo Bulbs; and (e) Decoration Bulbs.

28. Paints and Varnishes-Dry Distempers, Red Lead, Red Oxide, Aluminium Paints, Bitumen Paints to IS Specification, Wagon Blocks, Graphite Paints, all Paste Paints.

29. Palm Rose Oil 30. Paper Conversion Products. 31. Pine Oil (except for composite schemes). 32. PlaBter Boards. 33. Plastic Processed Products :—

(i) Bottle Caps, Buttons, Lamp-shade etc., produced by the compression moulding tech- nique.

(ii) Plastic Articles manufactured from plastic sheets, Rods or Tubes by the fabrication technique excluding the technique of vacuum forming.

(Hi) Polyethelene Films (Films with a thickness of less than G.ipiftm) and products fromtho, Film such as Bags etc. (excluding heavy duty Bags and Multi-coloured printed flhh and Bags).

(iv) Blow-moulded Containers and other similar products manufactured by the blow moulding technique (except for captive use, IVC containers and changeover bj existing units manufacturing Metal Containers to Plastic Containers.)

54. Rivets of all types (including Bifurcated).

35. Rolling Shutters. 36. Roofing, Flooring and Glazed Tiles (except plastic and ceramic tile of sizes 4" X 4* and above).

37. Safety Matches. 38. Steel Wool. 99. Student'* Microscopes. 40. Surgical Gloves (except plastic). .41. Tclescop: Aerials (for Radio Receivers). 43. Thermometers (upto I5O°C.) 43. Water Meters. 44. Welded Wire Mesh (except for expansion of existing units.) 45. Wire Brushes and Fibre Brushes. 46 Wire Products-all Wire products such as Wire Nails, Hob Nails, Panel Pins, Horse [Shoe NallB.

47. Wood Screws. 48. Cycle tyres ane tubes. 49. Electric hornB. 50. Hydraulic jacks below 30 tonnes capacity.

51. Tooth paste.

Additions made to the list in February 1971

52. Pressure Die Castings (upto 4 Kg.)

53. Drums and Barrels (upto 50 litre capacity). 54. Tin Containers-unprlnted (other than CITs) Cans upto 18 litre capacity. 55. Flash light torch"caBes;(Plastic). 56. Truck Body Building (Wooden Structure). 57. Battery Cell Tester. ^8. Pressure Gauges (upto 50 lbs per sq. inch).

59. Low Tension Insulators. 60. A. A. & A.C.S.R. Conductors (upto and including 19 strands). 61. Electric Transmission Line Hardware (other than those manufactured in malleable castirgs). 62. Grease Nipples and Grease Guns. 63. Exhaust Mufflers. 64. Zinc Oxide. 65. Auto Leaf Springs. 66. Chaff Cutter Blades. 67. PVC and VIR Wires of Domestic Type. 68. Metal Fittings for garments and leather goods. 69. Weights. 70. Sodium Silicate. 71. Fuel Tank Caps. 72. Fuel Lines. 73. WMng Harness. 74. Tail Lamp Assembly. 75. Side Lamp Assembly. 76. Stop Lamp Assembly. 77. Spot Lamp Assembly. 78. Horn Butttths. 79. Bulb Horn. 80. Seats for bus and trucks. 81. Ornamental fittings. 82. Rear View Mirrors. 83. Sun Shades. 84. Sun Visor. 85. Luggage Carrier. 86. Tyre Inflators (both hand and foot-operate< 87. Ash trays. 88. Hub Caps. 89. Wind Shield Wippers (Arms and Blades Only). 90. Electrical fuse boxes. 91. Electrical fuses. 92. Battery Cables and fittings. 93. Spokes and nipples. 94. Steering Wheels. 95. Armature tester. 96. Battery Terminal Lifters. 97. Condensors and Resistance Testers. 98. Fender Spoons and hammers. 99. Feeler Gauges. 100. Flaring Tools. 101. Gear Flushers. 102. Puller of All types. 103. Ring Expander*. 104. Ring Compressors. 105. Screw Extractors.¹¹ 106. Spark plug tester and cleaners* 107. Toe 1" Gauges.

108. Stund Remover* (extractor*)

4|l, Tyw vifre pull out tool*.

no. Tube Cutters, i n. Flanging Tools. 112. Valve Lifters. 113. Valve Replaciug Resetting Tools. 114. Camber Testing Equipment. 115. Domestic Utensils (other than stainless steel). 116. Steel Measuring Tapes. 117- Cashew Shell Oil. 118. Room Ccolers (Desert Type). 119. Cotton Measuring Tapes. 120. Rubberised Cloth. 121. Household Knitting Machines. 122. Para-Dichlore Benzene Balls. 123. Pottassium Silicate. 124. Calcium Silicate.

ANNEXURE—II

List of member countries of the World Bank

France Gabon

Ghana

Afghanistan Algeria Argentina Gambia, The Australia German, Federal Republic of Austria Bangladesh Greece Belgium Geutemala Bolivia Guinea Botswana Guyana Brazil Burma

Haiti Honduras

Icelard India Indonesia Iran Iraq Ireland Israel Italy Ivory Coast

Burundi Cameroon Canada Central African Republic Ceylon Ched Chile China, Republic of Colombia Congo, People's Republic of Jamaica Japan Costa Rica Cyprus Jordan Dahomey Kenya Denmark Khmer Republic Dominican Republic Korea Ecuador Kuwait Egypt, Arab Republic of Laos El Salvador Lebanon Equatorial Guinea Leosothp Ethiopia Fiji Finland

Liberia Libyana Arab Republic Luxembourg

United Kingdom

Zaire Zambia

Malagasy Republic Singapore Somalia Malawi South Africa Malaysia Spain Mali Sudan Mauritania Swaziland Mauritius Sweden Mexico Syriad Arab Republic Moroco Tanzania Nepal Thailand Netherlands Togo New Zealand Trinidad and Tobago Nicaragua Tunisia Niger Nigeria Turkey Norway Uganda Oman Pakistan United States Panama Upper Volta Paraguay Uruguay Peru Venezuela Philippines Viet Nam Portugal Yemen Arab Republic Romania Yemen, People's Democratic Republic of Rwanda Yugoslavia Saudi Arabia Senegal Serra Leode

ANNBXUKB—III

Proforma Report showing ordtring and payment position in respect of tacit import licence'^

granted against loan by tht concerned S.F.C.

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 to be placed (in Rs.).

(c) Phasing of balance orders :—Indicate when these would be completed,

3. Payment position.

(a) Total value of payments made so far (in Rs.).

(Please confirm after checking with Bank that documents therefor havejbeen submitted to the concerned S.F.C. by them in all cases).

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

(c) Phasing of balance payments,

(Please confirm that payments will be completed within time limit).

4. Remarks, if any, particularly regarding any special difficulty experienced in complete utilization of licence.

Sd./- Authorised Represe&tytire'

on behalf of importer,

XPutrism. u rm" GAaarrTE OF INDIA EXTRAOHJDINABT 17I<

AxmxuRElv

Documents required to be sent by the authorised Bank in India to the concerned S.F.C. in

rtspect of importation of goods by the entrepreneur under each loan sanctioned by the

concerned S.F.C.

(a) Supplier's invoice describing the goods or services

(Original or legible copy).

(b) Evidence of payment.

a. Receipted Invoice or fcrmal receipt of the foreign supplier, or 2. Cancelled bank cheque or draft or photostat ccpy thereof; or .3. Other satisfactory evidence.

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

1. A copy of ocean or airway bill of lading (this need not be a singed copy) or -2. A certificate of the supplier or forwarder that the goods have been shipped. This certi- ficate should include the approximate date of shipment, the method of transportation ("."., air, rail or sea) and the destination of the sh.ip/aircreft, the name and flag of the vessel or aircraft (if known) and amount of ocean/air freight should be given.

"NOTE.—If shipment has not been made at the time of the application is submitted or if the appli- cation relates to down or progress payment on a contract, evidence of shipment should be fur- nished as soon as possible after shipment. This evidence of shipment should be accompanied by -a copy ofthe supplier's final invoice In cases where the application relates to a down or progress payment.

ANNBXUKBV

Bank's Report of payment Serial No. • • —- • •• •

(Name of Commercial Bank)

Date of payment • — Licence No. •• • . , , To

(Name of Borrower or Borrower's Representative).

(Address) *~

We report having paid the sum of— 1 • .

to 1 •

• under licence No. . —

(Name of supplier)

established by . . • — ^—— . —

(Name and address of buyer),

Our payment commission/amounts to • • •

Payment was affected against delivery of the documedts as specified in/end in accordance -with the terms and conditions of the letter of credit mentioned above evidencing of

(General description of the merchandise including the

per S.S. or R.R.

(Quantity etc.).

rom

to

• (Point of shipment)

(Destination)

or storage or manufacture of the goods described at •

The connected documents have been forwarded to the State Financial Corporation.

(Copy of supplier's invoice Is attached)

Vefy truly yours,

S. I7i6 THE GAZETTE OF INDIA EXTRAORDINARY [PAR* I—SEC. 1]

[PABT I—Sic. 1] THE G A Z E M T O ^ l N D lA BXTRAG*CDlN"AftV 1717

fl³A*fc I—SEC. 1] THB OA^^TT^ OF IN]MA EXTRAQB$>I£iARY ^72$

[Fterftt^eic, ij TSB GJ4ZETTK &*^K"IA'EMBMaffiBaHrT 1^5*

tn6 tm QMIBrtX At WDIA eXTRAGRtttrtAftY [ftwr WSte. 1}

[PtaT T-SEC. 11 TIffl GA3BTTO OF INDIA BJCTOAORDWlAfHY i7a ^r

PRINTED BY THE MANAGER, GOVERNMENT OP INDIA PRESS, MINTO ROAD, KBW BELHJ AND PUBLISHED BT THE CONTROLLER OF PUBLICATIONS, DELHI, 1978