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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 168] NEW DELHI, SATURDAY, JULY 10,1974/ASADHA 29, 1896

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 20th July 1974

SUBJECT.— Licensing conditions for Public Sector and Government Imports and

Private Sector Imports under the "THIRTEENTH YEN CREDIT (COM-

MODITY AID)".

No. 100-ITC(PN)/74.—The conditions governing the issuance of import licences for public sector and Government Imports and private sector imports under the "Thirteenth Yen Credit (Commodity Aid)'' from Japan as given in Appendix I and Appendix II to this Public Notice are notified for information.

APPENDIX I

LICENSING CONDITIONS IN RESPECT OF IMPORTS BY PUBLIC SECTOR UNDERTAKINGS AND GOVERNMENT DEPARTMENTS UNDER, THE THIRTEENTH YEN CREDIT—COMMODITY AID

Section I: General Conditions

1. (i) The licence will bear the superscription "Japanese Yen Credit—Com- modity Aid". The licence code for the first and second suffix will be "S/JN". These will also be repeated in the letter from the CCI&E forwarding the import licence.

(949)

1. (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 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 licence.

1. (iii) The import licence will be issued on CIF basis with an initial validity period of 4 months for contracting and 12 irwnths for completing the shipments. •Within a fortnight from the date of issue of the import licence, the importer should intimate the particulars of import licence to the Ministry of Finance, Department of Economic Affairs, W.E.I. Section, North Block, New Delhi,

1. (iv) Firm orders must be placed on C&F basis on the Japanese Suppliers within 4 months from the date of issue of the Import licence. By firm orders it is meant purchase order placed by the Indian licensee on the Japanese supplier duly supported by confirmation from the latter cr purchase contract duly signed by both the Indian importer and th Japanese Supplier,

1. (v) For the purpose of arriving at the value in Yen upto which import commitments can be entered into the licensee against this, import licence, the value of the import licence should be computed at the Central exchange rate of 1 Yen=Rs. 0.024 (This rate of exchange is however, subject to revision from time to time). This rate is only for the limited purposes of determining the maximum amount upto which Import commitments can be entered into against this import licence. For the purposes of making rupee deposits 'into Government account towards the cost of imports, the rupee equivalent will have to be worked out in the manner indicated in Section VI below.

1. (vi) The value of the contract should be expressed in Yen (Fraction of Yen should be omitted) and should exclude Indian Agents' commission if any. which should be paid in Indian rupees. In no circumstances should the contract value be expressed in Indian rupees. The FOB cost and freight amount may be shown separately but it should however be dart/led whether the freight cocharges will be payable QU actual basis or whether the freight charges indicated in the contract would be the amount payable irrespective of the actual charges.

1 (vii) 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 firm orders cannot be placed within four months fcr valid reasons, the licence should be submitted to the CCI&E by the licensee for revalidation for ordering Riving reasons why orders could not be placed within four months. Such requests for extension in the ordering period will be considered on merits by the licensing authorities who may grant extension upto a further maximum period of 2 months. If. however, extension is sought beyond fi months from the date of issue of the import licence such proposals will invariably be referred by the licensing authorities to the Department of Economic Affairs (W.E.I. Section), Ministry of Finance, North Block New Delhi.

1 (viii) All payments must be completed within one month after expiry of the licence Individual payments must be arranged upon shipment of goods. The contract should 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 bv the Indian Importer from the Japanese Supoller. The contracts should provide for the period of delivery of goods as fellows: —

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 date should

not be beyond 31-3-1976.

Section II: Special points to be kept in view while contracting

2 (i) The payment to the Japanese Suppliers should be arranged through an Irrevocable letters of credit to be opened In their favour through the! Bank of India, Tokyo under the Japanese Thirteenth Yen Credit (Commodity Aid) the details of which are given in Section V below.

2 (ii) Only one contract should be entered into for the full value of the import licence In exceptional cases, two contracts may be permitted for which prior

approval of the Department of Economic Affairs, Ministry of Finance, should bo obtained within one month from the date of Issue of the import licence.

2, (iii) The value of an individual contract to be placed under the Thirteenth Yen Credit (Commodity Aid) against which thi^ Import licence has been issued should not be less than Yen 2 million.

Section III: Special points to be incorporated in the contracts

3. (i) The contract should contain a specific provision to the effect that the contract is arranged in accordance with the Loan Agreement between the Govern- ment of India and the Japanese Exim Bank dated 19th April, 1974, concerning the Thirteenth Yen Credit (Commodity Aid) and will be subject lo the approval of the Government of India for financing it under the Thirteenth Yen Credit (Commodity- Aid).

3. (li) The contract should contain a specific provision to the effect that pay- ments to the Japanese Suppliers shall be made through an. irrevocable Letter of Credit to be issued under the Loan Agreement dated l&tto April, 1974 between the Government of India and the Japanese Exim IJank concerning the Thirteenth Yen Credit (Commodity Aid).

3. (iii) The contract should contain a specific provision to the effect that the goods supplied by the Japanese Supplier will be of Japanese origin and should also stipulate that a Certificate of Origin (in the prescribed from attached as Annexure I) issued by the competent Chamber of Commerce and Industry in Japan providing the origin of the goods should bo one of the required documents to be furnished by the Japanese Supplier in terms of the Letter of Credit referred to in Section 2(i) before receiving payments from the Bank of India, Tokyo.

3. (iv) 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, and¹ 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 reduced. 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. (v) The contract should also contain a specific provision to the effect that the Japanese Supplier would agree to furnish such information and documents ns may be required under the Yen Credit arrangements by the Government of India on the one hand and by the Japanese Exim Bank on the other.

Section IV: Contract Approval by Government of India

4. (i) Within four months from the date of issue of the import licence, the licensee should forward five copies of the contract with the Japanese Supplier, signed by both the parties and complete in all respects, together with two photo copies or attested copies of the relevant valid Import licence, to W.E.I, Section, Department of Economic Affairs, Ministry of Finance, North Block, New Delhi along with a letter (in duplicate) in the form attached as Annexure II duly completed in all respects requesting for Issue of Letter of Authorisation for opening Letter of Credit in favour of the Japanese Supplier.

4, (il) If the contract documents and request for issue of letter of authorisation ace found to be In order, the Ministry of Finance, Department of Economic Affairs, W.E.I. Section will approve the contract and notify the same to the Japanese Exim Bank for their information to the effect that the contract will be financed under the 13th Yen Credit, (Commodity Aid). They will forward two sets of the documents to the Controller of Aid Accounts & Audit, Ministry of Finance, Jeevan Deep Building, 10, Parliament Street, New Delhi for issue of the necessary Letter of Authorisation, A copy of this communication will also be endorsed to the licensee for information.

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

5. (I) The Controller of Aid Accounts & Credit Department of Economic Affairs, Mlri'stry of Finance. 10, Parliament Street, New Delhi (hereinafter referred to as the CAAA for convenience) will, on receipt of the documents mentioned in para

4(ii) above, and if these are found to be in order, issue a Letter of Authorisation addreswed to the Tokyo Branch of the Bank of India for opening an irrevocable Letter of Credit in favour of the Japanese Supplier concerned and will endorse a copy thereof to the Japanese Exim Bank, the Embassy of India, Tokyo, the Importers¹ bank in India and W.E.I. Section, Department of Economic Affairs, Ministry of Finance. (It should be noted that as per the Yen Credit arrangements the letters of credit in respect of public sector imports State Governments and Electricity Boards would be opened only through the Tokyo Branch of the Bank of India.)

5- (ii) On receipt of the Letter of Authority, the Bank of India, Tokyn will establish an irrevocable Letter of Credit in favour of the Japanese Supplier con- cerned and will also forward a copy of the same to the Japanese Exim Bank, Embassy of India, Tokyo,, the Importers' bank in India and the CAAA. The Letter of Authority issued by the CAAA will be in the form attached as Annexure III and the Letter of Credit that will be issued by the Bank of India, Tokyo will be In the form attached as Annexure IV. The above procedure of approving contracts and opening of letters of credit on the basis of letters of authority from the CAAA 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, after effecting shipment of the goods present through his bankrs th documents specified in the Letter of Credit including the Certificate Of Origin referred to in para 3(11) above to the Bank of India, Tokyo. If the documents are found to be in order the Bank of India, Tokyo will release the amount specified in the documents to the Japanese Supplier through his bankers and will thereafter obtain reimbursement of the cost of imports from the Jnpanese Exim Bank.

5. (iv) As regards banking charges payable to the Bank of India, Tokyo, for openlns Letter of Credit, for negotiations thereunder and charges, if Rny. of Japanese Suppliers' banker and as regards interests charges payable to the Bank of India, Tokyo for the period counting from the date of payment of the cost of imports by Ihem to the Japanese Supplier to the date of reimbursement by the Japanese Exim Bank, these charges should be settled by the concerned Importer's bank in India by remittances 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 negotiable shipping documents will "be invariably forwarded by the Bank of India, Tokyo to the concerned Importers' bank in India which would be a branch of the State Bank of India or any of the nationalised banks (as men- tioned in (I) in Annexure II) who should release these negotiable set of documents to the public sector projects. State Governments and Electricity Boards concerned only after ensuring that the rupee equivalent of the Yen payments 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 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 payment will be the prevailing composite rate of exchange as laid down in Ministry of Commerce Public Notice No 15-TTC(PN)/72 dated 28th January, 1972 as amended bv No. 108-ITC(PN)/7? dated 21st July, 1972 or as may be notified by Government from time to time through Public Notices of the Min of Commerce or through Exchange Control Circulars of the Reserve Bank of India. Any change in this regard will be* notified as and when necessary. It will be the responsibility of the Indian Bank concerned to ensure that the amounts due are correctly deposited into Government Account before the import documents are handed over to the Importers. The licence should also ensure that the amounts due are correctly deposited Into Government Account before taking delivery of the documents from their bankers. The Head of Account to which the above rupee deposits should be credited is "K-Deposlts and Advances—843 Civil Deposits— Deposits for purchases etc., abroad—Purchases under credits/Loans Agreements" under the detailed head "the Thirteenth Yen Credit (Commodity Aid) from Japan".

fi. (il) The amount referred to above should toe deposited in cash to the credit oi the Government either In the Reserve Bank of India, New Delhi, or State Bank of India, Tis Ilazari Delhi or if this is not feasible, should be remitted by means of a demand draft obtained from any such 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, Delhi-6 (drawee and payee) for credit to Government account as contemplated in Public Notices No. 184-JTC(PN)/68, dated 30th August, 1986, No 233-ITC(PN)/68, dated 24th October, 1968 and No. 132-ITC(PN)/71, dated, 5th October, 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 days after such a demand is made by the Government. While filling in the various columns In the challan it should be ensure by the importers/their bankers that the information prescribed In para 2 of Public Notice No. 132-ITC(PN)/71, dated 6th October 1971 fe invariably Indicated in the column ''full particulars of remittances and authority (if any)" of the challan. The following particulars should! invariably be furnished in the Treasury Challans: —

(a) Ministry of Finance letter of authority No. and date. (b) Amount of foreign currency In respect of which deposits are to be

made together with rate of conversion adopted,

(c) Date of payment to the foreign supplier. (d) The amount of interest paid and the period for which it has been

calculated.

(e) Total amount deposited. (Interest is to be calculated for the period from the date of payment to the foreign supplier upto the date of deposit of rupee equivalent into Government Account).

Thereafter the Treasury Challans evidencing the rupee deposit should be sent by registered post to the CAAA 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 oJ; the licence and send the requisite "S" Form to the Reserve Bank of India, Bombay.

6. (v) In the ense of imports by the Central Government Departments the original shipping documents need not "be routed through importer's bank, but should be sent by Bank of India, Tokyo, to the Department concerned direct. For the cost of imports the Bank of India, Tokyo will make the payments to the Japanese Suppliers through his bankers initially out of their own resources and obtain reimbursement thereof from the Japanese Exim Bank in the same manner as stipu- lated in para 5 (Iii) above. As regards banking charges and interest charges for the period counting from the data of payment to the Japanese Supplier to the date of reimbursement by the Japanese Exim Bank, the Bank of India, Tokyo will recover the name from the Embassy of India, Tokyo. On receipt of details of reimburse- ment made to the Bank of India, Tokyo by Japanese Exim Bank and by the Embassy of India, Tokyo, respectively as detailed above the CAAA will raise debits for the rupee equivalent of the Yen amounts against the Accountant General concerned through the A.G.C.R., New Delhi.

Section VII: Miscellaneous provisions

7. (1) Reports on the utilisation of the import licence.—The importer should send a monthly report, after the letter of credit had been opened regarding ship- ments and payments, made their against and about the balance left, to the Con- troller of Aid Accounts and Audit, Department of Economic Affairs, Ministry of Pinanee, 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. The conditions to be fulfilled by the supplier before payment by the Bank of India, Tokyo must be clearly spelt out by the importer in Annexure II under "Terms of Payment".

7. (lv) Future Instructions.—The licensee shall promptly comply with any directions, instructions or orders issued bv 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 Thirteenth Yen Credit Agreement (Commodity Aid) with the Japanese authorities.

7. (v) Breach or violation.—Any breach or violation o fthe conditions set forth in the above clauses will result in appropriate action under the Imports and Exports (Control) Act.

7. (vi) List of Annexures:

Annexure I—Format of Certificate of Origin.

Annexure II—Form of Request for issue Of Letter of Authority for opening the Letter of Credit.

Annexure III—Form of Letter of Authority.

Annexure IV—Form of Letter of Credit.

ANNEXURE I

CERTIFICATE OF ORIGIN

Issued by

THE CHAMBER OF COMMERCE AND INDUSTRY

Consigned to: —

Quantity Description

Marias and Numbers

ofgoods

Place of Manu- fictiTe for Production

The undersigned, duly authorised by the company, swears that the above mentioned coods have been produced or manufactured in Japan.

Signed at on the

Shipper's name

Signature

Title

The Chamber of Commerce & Industry hereby certifies on the basis of relative invoice and other supporting documents that the above mentioned Roods are of Japanese origin to the best of its knowledge and belief.

Signed at on the

THE CHAMBER OF COMMERCE AND INDUSTRY.

ANNEXURE II

Request for issue of the Letter of Authority.

To

The Controller of Aid Accounts and Audit, Ministry of Finance, Department of Economic Affairs, Jeevan Deep Building, Parliament Street, New Delhi-110001.

SUBJECT.—Import of

from Japan under the 13th Yen Credit

(Commodity Aid) for 1973-74.

Sir,

In connection with the import of from Japan under the above mentioned 13th Yen Credit (Commodity Aid), we furnish the followlnu particulars

to enable you to issue the authority to the Tokyo Branch of the Bank of India for opening a letter of credit in favour of Japanese supplier concerned; —

(a) Name and Address of the Indian Importer. (b) Number and date and value of the import licence, and the date upto which valid.

(c) Name and Address of the Japanese supplier. (d) Number and date of the contract with the Japanese supplier and also the value of the contract in Japanese Yen (Rupee equivalent at the Central exchange rate of 1 Yen=Rs. 0.024 may also be indicated).

(e) Short description of the goods to be imported. (f) Details of the Indian Agent's commission, if any, payable in Indian Rupees and the net value in Yen payable to the Japanese supplier.

(g) Payment terms (To be clearly spelt out). (h) Documents to be presented at the time of payment to Bank of India, Tokyo indicating number of sets of each and their disposal.

(i) Name and address of the Indian Bank to whom all negotiable sets of documents are required to be despatched after payment who will be responsible for depositing the rupee equivalent of the Yen disburse- ments into the Government of India's account (Thig should be any branch of State Bank of India or any branch of the nationalised banks).

(.1) Shipment instructions (Indicate if transhipment/part shipment permitted or not permitted).

(k) Amount in Yen for which the Letter of Authority is requested. (1) Expected date of completion of deliveries and a schedule showing pro- bable dates on which payments under the contract will fall due.

(m) The name of Accounts Officer against whom debit to be raised through the A.G.C.R., New Delhi (in the case of Central Government Depart- ments).

Yours faithfully

Licensee,

Copy forwarded to; —

bank [referred to in (i) above for Information], Licensee.

ANNEXURE III

No. —

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(Department of Economic Affairs)

New Delhi, the

To

The Bank of India, Tokyo Branch, TOKYO (JAPAN).

SUBJECT.—Import Under Thirteenth Yen Credit (Commodity Aid)—Issue of Letter

of Authority for opening Letter oi Credit.

Dear Sirs,

In accordance with the terms and conditions of the agreement dated the 9th January, 1973 entered into with your Bank, you are hereby authorised to open irrevocable Letter of Credit for an amount not exceeding Yen favouring M/s

as per the attached details.

A copy each of the letter of credit opened bv your Bank may be endorsed to the importer's bank, to the Exim Bank, Embassy of India, Tokyo and to us.

Payments to the suppliers In terms of the letter of credit will be made initially out of your own funds. After payments, you must claim immediately reimbursements of the amounts paid by furnishing necessary documents 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 reimbursement by the Exim Bank of Japan, you will be paid interested as per terms of the above agreement directly by the importers' bank. The other banking charges including charges for handling documents, if any, and charges of Japanese supplier's bankers, if any will also be settled directly by the importers' bank. As such no reimbursement of such charges is to be claimed from the Exim Bank of Japan.

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.

This letter of Authority is intended for opening an 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 remain valid upto

Yours faithfully,

Accounts Officer. For public Sector Imports excluding Govt. Departments*

Copy forwarded to': — 1. Importer with reference to their letter

No dated 2. Importers' Banker

They are requested to arrange to deposit the rupee equivalent of the Yen payment to the Japanese suppliers on receipt of documents from the Bank of India, Tokyo Branch. The rupee equivalent of amounts disbursed to the suppliers will have to be calculated by applying the composite rate of conversion ?s prevailing on the date of payment to Japanese suppliers in acocrdance with the Public Notice No. 15-ITC(PN)/72, dated 28th January. 1972 as amended by Public Notice No. 108-ITC(PN)/72, dated 21st July. 1972 or such other Public Notices as may be issued from time to time Interest @ 6% p.a. for the period between the date of payment to the supplier/date of reimbursement to bank of India and the date on which the rupee equivalents are deposited into Government account, is also required to be deposited into the Government, of India account. (Any change in this rate will be intimated if and when made). It should be ensured that these deposits are made before the original set of import documents are handed over to the ijnporter for Customs clearance.

These amounts should be deposited either with the RBI, New Delhi or the SBI, Tis Hazari, Delhi or remitted by means of a Demand Draft obtained by them from any Branch of the SBI or its subsidiaries (Drawee and Payee), drawn on and made payable to the SBI. Tis Hazari, Delhi-6 (Drawee and Payee). In this connection their attention is also invited to the provisions of the Public Notices No. 23^-ITC(PN)/H8, dated 24th October, 1969 and No. 132-ITC(PN)/71, dated 5th October, 197f. The head of account to be credited is "K—Deposits & Advances— 843 Civil Deposits—Deposits for purchases etc. abroad under Purchases under Credit/Loan Agreements—under detailed head Thirteenth Yen Credit (Commodity Aid) from Japan."

One copy of the challan In original, in cases where the rupee equivalents are credited in cash at the RBI, New DelM, or the SBI, Tis Hazari, Delhi, as prescribed in Public Notice No. 132-ITC(PN)/71, dated 5th October. 1971 should be sent by them to the address given below along with a forwarding letter giving full details of the advice notes received from the Bar^k of India, Tokyo Branch.

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

In cases where the rupee equivalents are remitted by means of demand drafts as laid down in the Public Notice dated 24th October, 1968 mentioned above, intima- tions thereof should be sent to the address given above. In all cases, full particulars

of the rupee equivalents deposited along with the amount of interest paid and the period for which interest has been calculated should be furnished to this Depart- ment.

The banking charges, interest and other charges Qf the Bank of India, Tokyo Branch, including charges of the Japanese Suppliers' bankers, if any, should be settled directly between the Indian Bank and the Bank of India, Tokyo Branch.

(3. The Export and Import aBnk of Japan, Tokyo.

4. Embassy of India, Tokyo;

5. The Under Secretary, WE-I Branch, Ministry of Finance, Department of Economic Affairs, New Delhi.

Accounts Officer. For Imports on behalf of Govt. Departments.

Copy forwarded to: —

1

*

(Name and Address of the Importer/Consignee)

It may be noted that the debits for the rupee equivalents of Yen Payments will.

be raised through the A.G.C.H., New Delhi on the

(Accounts Officer)

2

(Accounts Officer)

ANNEXURE IV

Public Sector

BANK OF INDIA

Tokyo, Japan

Beneficiary

Our Principal(s)

IRREVOCABLE CREDIT NO: YG/13th/ dated Expires

This Letter of Credit consists of the pages both of which form an integral part of this Credit. It has been issued pursuant to Section 3 of Annexure I to the Loan Agreement dated 19th April, 1974 concerning the Thirteenth Yen Credit to India (Commodity Aid).

Dear Sir,

We have pleasure in advising you that we have established an IRREVOCABLE LETTER OF CREDIT in your favour for account of OUR PRINCIPAL(S) named above, for a sum not exceeding Yen (say Yen ) available by your Drafts (First and Second of Exchange) drawn at sight on Bank of India, Tokyo for 100% of the Invoice value. Your Drafts must be accompanied by the following documentst: —

1. Signed invoices in

quoting Import Licence No

•.

2, Full set, claim, shipped 'un Board' ocean Bills of Landing dated not later than marked 'Freight paid'/'Freifiht payable at Destination' made out to the order of Bank of India Notify OUR FRINCIPAL(S). Short form Bills of Lading not acceptable Despatch of goods by Post Parcel and/or Air Consignment allowed. Post Parcel Receipts/Air Consignment Notes dated not later than

marked 'Freight Paid'/"Freight payable at Destination', addressed to $ank of India A/C our Principal(s) mentioned above and quoting this Letter of Credit Number.

3. Insurance Policy or Certificate in duplicate for at least CIF value of the goods plus 10% endorsed in blank covering Marine/Air Risks, as per Current Institute Cargo Clauses (All risks Including War Risks as per Current Institute Insurance Is covered by buyers, but you should cable brief details of shipment quoting Cover Note No

4. Certificate of Japanese Origin.

5. Packing and/or Weight Lists.

evidencing current shipment/consignment of the undermentioned goods from

to

t Plus two extra sets of Non-negotiable documents. *And Report of Contract No dated

issued by the Government of India.

SPECIAL INSTRUCTIONS AS PER ATTACHED SHEET

TRANSHIPMENT is PARTIAL SHIPMENTS/CONSIGNMENTS are

Draft(s) must be marked 'Drawn under Bank of India, Tokyo Credit No. YG/ 13th/ dated and must be presented to us through your bankers for negotiation In Tokyo not later than Negotiations must be marked separately on the back hereof and this letter should accompany the draft which exhausts the Credit.

We hereby undertake that all drafts drawn under and in compliance with the terms of this Credit shall be duly honoured on due presentation and delivery of documents to us.

Except as otherwise' expressely stated, this Credi ia subject to the Uniform Customs and Practice for Documentary Credit (1962 Revision), International Chamber of Commerce Brochure No. 22.

Yours faithfully,

Manager, Copy to the Export Sub-Manager,

Export-Import Bank of Japan, Tokyo.

CC: Government of India, New Delhi (Full address). CC: Embassy of India, Tokyo.

APPENDIX II LICENSING CONDITIONS IN RESPECT OF PRIVATE SECTOR IMPORTS UNDER THE THIRTEENTH YEN CREDIT (COMMODITY AID}

Section I: General Conditions

1. (i) The licence will bear the superscription 'Japanese XIII Yen Credit— Commodity Aid'. The licence code for the first and second suffix will be "S/JN". These will also be repeated In the letter from the CCI&E forwarding the import licence.

1. (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 payment towards Indian Agent's commission should be made In Indian rupees to the Agents in India. Such paymentg, however, will form part of the licence value and will, therefore, be charged to the licence.

1. (Hi) The import licence will be issued on CIF basis with an initial validity period of 4 months for contracting and 12 months for completing the shipments. Within a fortnight from the date of the issue of the import licence, the importer

should intimate the particulars of the import licence, to the Ministry of Finance, Department of Economic Affairs, W.E.I. Section, North Block, New Delhi.

1. (iv) Firm orders must be placed either on GIF or on C&F basis on th& Japanese suppliers within 4 months from the date of issue of the import licence. By firm order it is meant purchase orders placed by the Indian licensee on the • Japanese supplier duly supported by confirmation from the latter or purchase contract duly signed by both the Indian Importer and the Japanese supplier. Whenever Insurance is taken out on an Indian company, the premium should be paid in India in Indian rupees.

1. (v) For the purpose of arriving at the value of Yen upto which import commitments can be entered into by the licensee against this import licence, the value of the import licence should be computed at the Central exchange rate of ] Yen=Rs. 0.024. (This rate 01 exchange is, however, subject to the revision from time to time). This rate is only for the limited purposes of determining the maximum amount upto which import commitments can be entered Into against this import licence. For the purposes of making rupee deposits into Government account towards the cost of imports, the rupee equivalent will have to be worked out in the manner indicated in Section VI below.

1. (vl) 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. In no circumstances the contract value should be expressed in Indian rupees. The FOB cost, Insurance and freight amount may be shown separately but it should, however, be clarified whether the freight charges will be payable on actual basis or whether the freight charges indicated in the contract would be the amount payable irrespective of the actual charges.

1. (vii) This condition of the placement of contracts within 4 month? period' will be treated as not having been complied with unless complete contract docu- ments 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 firm' orders cannot be placed within four months for valid reasons the licence should be submitted by the licensee to the CCI&E for revalidation for ordering giving reasons why orders could not be placed within four months. Such requests for extension in the ordering period will be considered on merits by the licensing authorities who may grant extension upto a further maximum period of 2 months. If, however, extension is sought beyond 6 months from, the date of issue of the- import licence, such proposals will invariably be referred by the licensing autho- rities to the Department of Economic Affairs (WE-I Section^ Ministry of Finance, North Block, New Delhi. Only on production by the licensee of letter of the CCI&E sanctioning such extension, will the authorised dealers and departmental authorities permit the facility of bank guarantee, letters of authority, for the establishment of letter of credit, acceptance of deposits of rupee equivalent, etc.

1. (viii) All payments must be completed within one month from the expiry of the licence. Individual payments must be arranged upon shipment of goods. The contract should 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 Japanese Supplier. The contracts should provide for the period of delivery of goods 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 date should not be beyond 31-3-1976.

Section II: Special points to be kept in view while contracting.

2. (i) The payment to the Japanese Supplier should be arranged through an irrevocable letter of credit to be opened in their favour which will be routed through the Bank of India, Tokyo under the Thirteenth Yen Credit (Commodity Aid), the details of which are given in Section V below.

2. (ii) Only one contract should be entered into for the full value of the import licence. In exceptional cases, two contracts may be permitted for which prior approval uf the Department of Economic Affairs, Ministry of Finance should, be obtained within one month from the date of Issue of the import licence

2. (iii) The value of an individual contract to be placed under the Thirteenth¹ Yen Credit (Commodity Aid) against which this import licence has been issued should not be less than Yen 2 million.

Section III: Special points to be incorporated in the Contracts.

3. (i) The contract should contain a specific provision to the effect that the contract is arranged in accordance with the Loan Agreement between the Govern- ment of India and the Japanese Exim Bank dated the 19th April, 1974 concerning the Thirteenth Yen Credit (Commodity Aid) and will be subject to the approval of the Government of India for financing it under the Thirteenth Yen Credit (Commodity Aid).

3. (li) The contract should contain a specific provision to the effect that pay- ijnents to the Japanese supplier shall be made through an Irrevocable Letter of Credit to be issued under the Loan Agreement dated 19th April, 1974 between the Government of India and the Japanese Exim Bank concerning the Thirteenth Yen Credit (Commodity Aid).

3. (iii) The contract should contain a specific provision to the effect that the Eoods supplied by the Japanese Supplier will be of Japanese origin and a CertL flcate of Origin (in the prescribed form, attached as Annexure I) issued by the competent Chamber of Commerce and Industry in Japan proving the origin of the goods should be one of the required documents to be furnished by the Japanese Supplier In terms of the letter of credit referred to in Section 2(i) before receiving •payments from the Bank of India, Tokyo.

3. (iv) The contract should contain a specific clause to the effect that the Japanese supplier should furnish a report to the Embassy of India, Tokyo imme- diately after completion of shipping arrangements alongwith one copy of the invoice and one copy of the Bill of Lading.

3. (v) The- contract should also contain a specific provision to the effect that the Japanese Supplier would agree to furnish such information and documents ag may be required under the Yen Credit arrangements by the Government of "India on the one hand and by the Japanese Exim Bank on the other. Section IV; Contract Approval by Government of India

4- (i) Within four months from the date of issue of the import licence, the licensee should forward five copies of the contract, with the Japanese Supplier, signed by both the parties and complete in all respects, together with two photo copies or attested copies of the relevant valid import licence, to W.E.I. Section, Department of Economic Affairs. Ministry of Finance, North Block, New Delhi, -alongwith a letter (in duplicate) In the form attached as Annexure II requesting 'for issue of letter of authorisation for opening letter of credit, accompanied by a Bank Guarantee in the form prescribed in Annexure III duly adjudicated by the Collector of Stamps under Section 31 of the Indian Stamp Act.

4. (11) If the contract documents and request for issue of letter of authorisation and the Bank Guarantee are found to be in order, the Ministry of Finance, Department of Economic Affairs, W.E.I, Section will approve the contract and notify the same to the Japanese Exim Bank for their information that contract will be financed under the 13th Yen Credit (Commodity Aid). Thereafter, they will forward two sets of documents to the Controller of Aid Accounts and Audit, Ministry of Finance, Jeevan Deep Building, 10, Parliament Street, New Delhi for issue of the necessary letter of authorisation. A copy of this communication will be endorsed to the licensee "for information.

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

5. (i) The Controller of Aid Accounts and and Audit (CCAA), Department of Economic Affairs, Ministry of Finance, 10, Parliament Street, New Delhi (herein- after referred to as CAAA for Convenience) will, on receipt of the documents mentioned in para 4(ii) above and if these are found to be in order, issue a letter of authorsiation to the Indian Bank that has furnished the Bank Guarantee for opening the irrevocable letter of credit in favour of the Japanese supplier. (It should be noted that the letter of credit issued on the Japanese banks in resoect of private sector imports should be routed invariably through the Bank of India, Tokyo, who will add its confirmation). The letter of Authority issuedd by the 'CAAA will-be In the form attached as Annexure IV and the letter of credit to be

opened by the Indian bank, concerned shall be In the form attached as Annexure- V. A copy of this will be endorsed by the CAAA to Japanese Exim Bank, Tokyo, the Bank of India, Tokyo, Embassy of India in Japan and the WE-I Section, Department of Economic Affairs, Ministry of Finance.

5. (iil On the basis of this letter of authority, the Indian bank concerned, •will establish an irrevocable! letter of credit in favour of Japanese supplier con- cerned, and forward the original letter of credit (alongwlth four copies thereof) to the Bank of India, Tokyg requesting them to add their confirmation and for- ward it to the Japanese supplier. The Bank pf India, Tokyo will forward a copy of the letter of credit to the Japanese Exim banks and the CAAA. The above procedure of approving contracts and opening letter of credit on the basis of letter of authority from the CAAA would apply to each contract amendment and corresponding amendment to letter of authority/letter of credit of ttiat may become necessary.

5. (iii) The Japanese Supplier shall, after effecting shipment of the goods, present through his bankers, the documents specified in the letter of credit includ- ing the Certlflcnte of Origin referred to in para 3(il) above to the Bank of India. Tokyo for payment. If the documents are found to be in order, the Bank of India, Tokyo will release the amount, specified in the documents to the Japanese Supplier through his hankers and will thereafter obtain the reimbursement of the cost of imports from the Japanese Exim Bank.

5. (iv) As regards banking charges payable to the Bank of India, Tokyo for pdding this confirmation to the letter of credit, for negotiations thereunder, and charges, if any, of Japanese supplier's banker and as regards Interest charges payable to the Bank of India, Tokyo for the period counting from the date of' payment by them of the cost of imports to the Japanese Supplier to the date of reimbursement by the Japanese Exim Bank, these charges; should be settled by remittance by the concerned importer's bank in India to the Bank of India,. Tokyo through normal banking channels without affecting the Government of India's account.

Section VI: Responsibility jar Rupee deposit

6. (i) The original negotiable shipping documents will invariably be forwarded by the Bank of India, Tokyo to the concerned importers bank in India who should release these negotiable set of documents to the licensee only after ensuring that the rupee equivalent of the Yen payments made to the Japanese Supplier along with interest charges thereon calculated at the rate of 6 per cent per annum for the period from the date of payment by the Bank of India, Tokyo, to the 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 CCT&E's Public Notice No. lS-ITC(PN)/72 dated 28-1-1972 as amended by Puhlic Notice No. 108-ITC(PN)/72 dated 21-7-1972 or as may be notified by Government from time to time through Public Notices of the CCI&E or through Exchange Control Circulars of the Reserve Bank of India. Any change In this regard will be notified OB and when necessary. If will be the responsibility of the Indian Bnv.1t: concern- ed to ensure that the amounts due are correctly deposited into Government Ac- count before the import documents are handed over to the importers. The' licensee should also ensure that the amounts due are correctly deposited into Government Account before taking delivery of the documents from their ban- kers. The Head of Account to which the above Rupee deposit should be credited is "K-Deposits and Advances 843 Civil Deposits—Deposits for purchases etc. abroad Purchases under credit/loans Agreements under the detailed head Thirteenth Yen Credit (Commodity Aid) from Japan."

6. (ii) The amount referred to above should be deposited in cash to thei credit of the Government either in the Reserve Bank of India, New Delhi or State Bank of India Tis Hazari. Delhi, or, if this is not feasible should be remitted by nrrcans 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, Delhi 6 (drawee and payee), for credit to Government* account as contemplated in Public Notice No. 184-ITC(PN)/68, dated 30-8-1963; No, 233-ITC (PN)/68 dated 24-10-1968 and No. 132-ITC(PN)/71 dated' 5-10.1971.

6. (iii) The concerned bank In India shall also furnish such additional de- posit in the same manner stipulated above as may be requested by the Govern- ment of India on account of service charges within seven days 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 information pres- cribed in para 2 of Public Notice No. 132-rTC(PN)/71, dated 5-10-1971 is invari- ably indicated in the column "full particulars of remittance and authority, If any" of the challan. The following particulars should invariably be furnished in thff Treasury Challans:-—

(a) Ministry of Finance letter of authority No. and Date. (b) Amount of foreign currency in respect of which deposits are to be

made together with rate of conversion adopted.

(c) Date of payment to the foreign supplier,

(e) Total amount deposited.

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

Section VII; Miscellaneous provisions.

7. (i) The importer should send a monthly report, after the letter of credit has been opened, regarding shipments and payments made there against and about the balance left, to the CAAA.

7. (ii) Notifying Suppliers of Special Conditions.— The licensee should apprise the supplier of any special provision in the import licence which may affect the suppliers in carrying out the transaction.

7. (ill) Disputes.—It should be understood that the Government of India wiJl not undertake any responsibility for disputes, if any, that may arise between the licensee and the suppliers.

7. (ivO Future Instructions.—The licensee shall promptly comply with any directions, instructions or orders issued by the Government of India from time tp time regarding any and all matters arising from or pertaining to the import licence and for meeting all obligations under the Thirteenth Yen Credit Agree- ment (Commodity Aid) 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 of Annexures:

Annexure I—Format of the Certificate of origin. Annexure II—Form of Hequest for issue of the letter of Authority for opening the Letter of Credit',

Annexure III — Bank Guarantee Form. Annexure IV — Letter of Authority Form. Annexure V — Form of Letter of Credit. Annexure VI — Form of Application for release of Bank Guarantee.

ANNEXURE I

CERTIFICATK OF ORIGIN

Issued by

THE CHAMBER OF COMMERCE AND INDUSTRY

Consigned to;—

Quantity Description

Marks & Numbers

of goods

Place (.f Manufacture of pro dilution

The undersigned, duly authorised by the company, swears that the above men- tioned goods have been produced or manufactured In Japan,

Signed at on the

Shippers's name Signature

Title

The Chamber of Commerce & Industry hereby certifies on the basis of relative invoice and other supporting documents that the above mentioned goods are of Japanese origin to the best of its knowledge and belief.

Signed at on the

The Chamber of Commerce and Industry.

ANNEXURE II

Request for issue of the Letter of Authority

To

The Controller of Aid Accounts and Audit, Ministry of Finance, Department of Economic Affairs, Jeevan Deep Building, Parliament Street, New Delhi—110001.

SUBJECT.—Import 0/

from Japan under the 13th Yen Credit

(Commodity Aid) jtfr 1973-74.

Sir,

In connection with the import of from Japan under the above mentioned 13th Yen Credit (Commodity Aid) we furnish the following particulars to enable you to issue the Letter of Authority to the [name of the Bank which should be the same as given in (ii below] for opening a letter of credit in favour of the Japanese Supplier concerned:—

(a) Name and Address of the Indian Importer, (b) Number and date and value of the import licence and the date upto which valid.

(c) Name and adrlress of the Japanese supplier. (d) Number and date of the contract with the Japanese supplier and also the value of the contract in Japanese Yen (Rupee equivalent at the Central exchange rate of 1 Yen— Rs. 0,024) may also be indicated.

(e) Short description of the goods to be imported.

(f) Details of the Indian Agent's commission, if any, payable in -Indian.

Rupees and the net value in Yen payable to the Japanese supplier.

(g) Amount in Yen for which the letter of authority is requested. (h) Expected date of completion of deliveries and a schedule showing prob- able dates on which payments under the contract will fall due. (i) Nt.'Tie and address of the Importer's bank in India (which will be the bank that will furnish the .guaruntee referred to above and will be responsible for crediting the rupee equivalent of the Yen disburse- ments into the Government of India's account).

Yours faithfully,

Licensee Copy forwarded to (referred to in (i) above) bank for information.

Licensee

ANNEXURE III

GUARANTEE BOND

To

The President of India.

In consideration of the President of India (Hereinafter called 'the Govern- ment') having agreed to arrange for payment in Yens for the import °f by , (hereinafter called the 'importer') against the import licence No; dated issued under the terms and conditions of Thirteenth Yen Credit '(Commodity Aid), we , , Bank, at the request of the importer hereby undertake to arrange to deposit the amounts of the disburse- ments made by the Bank of India, Tokyo converted at the prevailing composite rate of conversion laid down in late Ministry of F.T. Public Notice No. 15-ITC (PN)/72 dated 28-1-1972 as amended vide Ministry of F.T. Public Notice No 108- ITC(PN)/72 dated 21-7-1972 or as notified from, time to time in Public Notices/ AD, Circulars within ten days of the receipt of advice of payments for credit to the Government account in the manner and against the appropriate 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 pay- ment to the Japanese supplier to the date of deposit of Rupee equivalent for credit to the Government account. The negotiable set of import documents received from 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 indemnify and keep indemnified the Government against any default in payment by the importer of any sum that may be due and rjayable from time to time bv the importer to the Government at such place and in such manner as 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 importer, together with Interest thereon at the rate of six per cent per annum from 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 (Bank), shall be final and binding the Government by us on us

(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 as a result of change in the composite rate of exchange mentioned in para 1 above, the amount of this guarantee bond will be adjusted as on the date when the change takes place, in proportion to this change.

4. We

(Bank), further agree that the guarantee herein contained shall remain in full force and effect during the period that would be taken for the performance of the said agreement/contract and that it shall continue to be enforceable till all the dues to the Government under, or by virtue of this guarantee, nave been fully paid and it's claims satisfied or dis- charged.

5 The guarantee herein contained shall not be affected bv any change in the constitution of the importer or the • • (Bank), the Government

shall have the fullest liberty without affecting the guarantee to postpone for any time and from time to time any of the powers exercisable by it against the im- (Bank) shall not be released from its liabi- porter and the lity under this guarantee by any exercise of the Government' of the liberty with reference to the matters aforesaid or by reasons of time being given to the im- porter or any other for bearance, 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 provi- (Bank) from its sion, have the effect of so releasing the. such 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

(Plus interest and all banking charges, not expected to exceed 1 per cent of the guarantee amount) and this guarantee shall remain in force till** the date of (month) 19 Unless claims under this bond/guarantee are made in writing within six months of this date and unless suit or action to enforce these claims is commenced within another six months thereafter, i.e. upto, all Government's rights under this bond/guarantee shall be forefeited and we shall be relieved and discharged from all liability thereunder.

Dated the day of 19

for

. . . . ( B a n k ).

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 up to 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 execu- ted is to be adjudicated by the Collector of Stamps under Section 31 of the Indian Stamps Act.

ANNEXURE IV

For Private Sector Importers

No.

GOVERNMENT or INDIA MINISTRY OF FINANCE Department of Economic Affairs

New Delhi, the

To

(Indian Importer's Bank)

SUBJECT.—Import under Thirteenth Yen Credit (Commodity Aid)—Issue of Letter

of Authority for opening Letter of Credit—Import Licence

dated

Dear Sirs,

With reference to your 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 Thirteenth Yen Credit (Commodity Aid), I am to oncluie thp Department of Economic Affairs Letter of Authority (form) attached 115 Appendix I to this Annexure IV) No . • • • .dated issued to the Bank of India, Tokyo (with one spare copy) authorising them to to the Japanese suppliers. This arrange payments upto Yen

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 within 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 (lays after the final date for shipment as stated in the relative import licence or the date indicated in the Letter of Autho- rity 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 XIII Yen Credit (Company Aid). Bank of India, Tokyo, will forward the Letter of Credit after adding its confirmation to the Japanese supplier through his bankers.

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

5. The banking charges and interest charges of the Bank of India, Tokyo and charges if any of Japanese Suppliers' Bankers 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 to the Japanese supplierg 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 bo calculated by applying the composite rate of conversion as prevailing on the date of payment to suppliers in accordance with the Public Notice No. 15-ITC(PN)/72 dated 28-1-1972 as amended by Public Notice No. 108-ITC(PN)/72 dated 21-7-1972 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 between the date of payment to the supplier and the date on which the rupee equivalents are to be deposited into Government account will also have to be credited along with the above amount to the Government of India's account. (Any change in this rate will be intimated it and when made). It will be your responsibility to arrange for the DEPOSIT OF THESE AMOUNTS correctly, before the import documents 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 Hazari, 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, Delhi 6 (drawee and payee). In this connection your attention is also invited to the provisions of the Public Notices No. 233-ITC(PN)/ 68. dated 24-10-1P68 and No. 184-ITC(PN)/68. dated 30-8-1968 and No 132-ITC (PN)/71, dated 5-10-1971. The Head of Account to be credited is "K-Depo-iit and Advances—843 Civil Deposits—Deposits for purchases etc. from abroad—pur- chases under Credit/Loan Agreement under detailed head Thirteenth Yen Credit (Commodity Aid).

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)/71 dated 5-10-1971 should be sent by you to the address given below alongwlth a forwarding letter giving deposit and citing reference to this communications: — The Controller of Aid Accounts and Audit. Ministry of Finance (Depart- ment of Economic Affairs), 2nd Floor Jeevan Deep Building, Parlia- ment Street, New Delhi 11000.

Tn case where the rupee ^riuivalents are remitted bv means of demand drafts as laid down In the Public Notice No 233-lTC(PN)/68, dated 24-10-1968, men- tioned above, intimations thereof should be sent to the address given above. In all cases, full particulars of the rupee equivalents deposited along with the amount oi 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 India, Tokyo, for information and necessary action in terms of their Agreement with the Government of India dated 9-1-1973.

3. Export Import Bank of Japan, Tokyo.

4. Embassy of India, Tokyo, for information. 5. Under Secretary (WE-I Branch), Department of Economic Affairs, along- with copy of Letter of Authority with reference to their letter No. 6( )-SEI/7 dated.

Accounts Officer.

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 Thirteenth Yen Credit (Commodity Aid)—Issue of

Letter of Authority for confirmation of Letter Of Credit,

Dear Sir,

In accordance with the terms and conditions of the agreement dated Bth January, 1973 entered into with your Bank, we hereby authorise you to confirm the Letter of Credit to be opened by (Indian Bank) favouring (Japanese Supplier) lor Yen covering the import of against contract entered into by (India Importer), to be forwarded to the beneficiary and to pay the amount under the said Letter of Credit on presentation of the requisite docu- ments, thereunder.

2. After each payment, the shipping and other documents (negotiable) may -te 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. As and when any payment is made by you and reimbursement is made to you an advice in the prescribed f"rm should be sent to this Ministry.

3. Your hanking charges and charges if any of Japanese Suppliers Bankers and 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.

ANNEXURE V

Private Sector

{Letter of Authority)

(Name of Issuing Bank In India)

To: (Beneficiary)

Date:

This Letter of Credit has been issued pursuant to Section 2, sub-section (1) of Annex 1 to the Loan Agreement dated April 19, 1974, concerning the- Thirteenth Yen Credit (Commodity Aid).

Dear Sirs:

We have opened our irrevocable credit No in your favour for account of for a sum or sums not exceeding a total available by beneficiary's draft(s) at sight for % invoice value drawn on bank of India, Tokyo, covering shipment from to of (name of goods) to be accompanied by the following documents:

1. Beneficiary's signed invoice in quoting Import Licence

issued by th& No and Report of Contract No Government of India.

2. Full set of clean, shipped on broad/ocean bill of lading dated not later than marked "Freight Paid/Fretght payable at Destination¹' made out of order of and notify

3. Insurance Policy or Certificate (If neecssary). 4. Certificate of Origin. 5. Packing List. 6. (Other necessary documents, if any). Partial shipments are permitted. Transhipment is

permitted.

Shipment must be effected not later than , , Praft must be presented to the drawee not later than

All drafts drawn hereunder must be marked "Drawn" under

irrevocable credit No dated

We hereby undertake that all drafts drawn under in compliance with the terme of the credit shall be duly honoured on due presentation and delivery of documents to the drawee.

ANNEXURE VI

Form of Application for release of Bank Guarantee

To,

The Controller of Aid Accounts and Audit, Ministry of Finance, Department of Economic Affairs. Jeevan Deep Building, 10, Parliament Street, New Delhi-1.

Sir,

We are furnishing below detailed information on the rupee deposits made by u* In discharge of our obligations under Bank Guarantee No Dated for an amount of Rs with the request that 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 licence No., date, value, brief description of the equipment and/or commodities allowed for Import thereunder.

1. Particulars of the authorization (s) for opening Letters of Credit obtained from the Ministry of Finance (to be given separately for each letter 01 authorisation),

fa) Letter No. and date. (b) 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 name).

(c) Amount of Invoice (nef) in Yen. (d) Amount of Rupee deposit. (el Relative chailan 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 of 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 utilised/ will not be utilised.

OR

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

OR

The letter of credit was opened against the authorisation letters) expired unutilised, and

(2) Our obligations under the bank guarantee In question have been fully- discharged.

III. We confirm that the interest and banking charges of the Bank of India, Tokyo and charges if any, of Japanese suppliers Bankers relatives to this transac- tion 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 cancellation.

Yours faithfully,

Authorised agent for and on behalf of the Bank.

B. D. KUMAR,

Chief Controller of Imports-Expots.

•Whichever is applicable.

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