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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 200] NEW DELHI, TUESDAY, AUGUST 20,1974/SRAVANA 29,1896

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

MINISTRY OF COMMERCE

PUBLIC NOTICES

IMPORT TRADE CONTROL

New Delhi, the 20th August 1974

SUBJECT.—Licensing conditions under 1974-75 Special French Credit for Deptt- of Atomic

Energy and Space.

No. 121-lTC(PN)/74.—The terms and conditions governing the issuance of import licences under Special French Credit for Department of Atomic Energy and Space, 1974-75, as given in Appendix to this Public Notice are notified for information.

APPENDIX

LICENSING CONDITIONS UNDER 1974-75, SPECIAL FRENCH CREDIT FOR DEPARTMENT OF ATOMIC ENERGY AND SPACE

1. The import licence will be issued on OIF basis, with initial validity period of four months for contracting and twelve months for completing shipments.

2. Each import licence will bear a superscription, "Special French Credit, 1974-75". The two suffixes in the licence code classification number will be for project "S/FE" and for non-project "S/FN",

3. Within a fortnight of the receipt of the import licence, the importer should inti- mate to the Department of Economic Affairs (WE-I Section) the fact of receipt of the import licence indicating the number, date and value of the import licence and likely date by which the contract documents would be furnished.

(1195)

4, The condition regarding contracting will not be deemed to have been complied wilh unicss complete contract documents, as provided in para 26 beiow, aru lurnisnea within the stipulated period of four months.

5, Where this stipulation is not complied within four months, che import licence will be deemed to have become invalid, fhc import licence may, however, be rcvuiuia- ted on aa application by the party alongwith the licence in original, to the licensing authority giving reasons for noncompnnnee with the provisions of the import licence.

6, The request for invalidation would be considered by the licensing authority on merits, in consultation with the Department ot Economic Affairs, and it accepted, the licence will be re-validated for contracting tor a further period not exceeding three months.

II. Contracting

1. One contract, on the basis of firm prices has to be entered into with a French supplier for the whole amount of the licence.

8. However, more than one contract may be entered into subject lo the permission specifically obtained from the Department of Economic Alfairs, giving reasons tor doing so, before placing orders.

9. Once a. contract has been notified, in accordance with the procedure laid down in Section V below, no amendments to the contract, by way ot additions thereto ex- ceeding fO per cent of the value of the main contract will be entertained.

if, in any case, the Indian importer apprehends that there will be need to enter into amendments to the maid contract resulting in the enhancement of its value by more, than 10 ptr cent, he should immediately inform the CCI&E and the WE-l Section of the Department ot liconomic Affairs, Ministry of Finance of the full facts ol the case and seek their guidance.

10. A contract will normally comprise an Agreement signed by both the parties viz., .the Indian importer and French supplier ur it may comprise the order placed by the Indian importer and the letter of acceptance thereof, in unequivocal teiins by the French supplier.

11. A contract comprising a series of correspondence between the two parties frequently amending/revising the various provisions will not be accepted. 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.

12. Under the Fiencb Credit Agreement, Government of India have the option to substitute Buyers' Credit by suppliers' credit, granted by French banks for the Project portion. It has, tlieicfore, been considered necessary that Indian importers who had allocations of and above FF 5 million (Rs. 71.1 lakhs) from the Project portion of the French Credit should invite quotations from French suppliers for the supply of equip- ment on the basis of normal suppliers' credit, according to the conditions as deter- mined at that time. The Indian importer should also invite quotations on Ihe basis of payment terms as indicated in paras 19 to 22 below. On the basis of this data, Government of Jndia will decide the manner of financing the imports and advise the importer of the same.

TH, Terms of Contract

General

13. The contract should be placed only cm C&F basis and should clearly indicate F.O.B. price and freight charges separately in French currency. If any importer desires to enter into a contract on f.o.b. basis, he should seek prior permission of the Depart- ment of Economic Affairs (WE-I Section), Ministry of Finance, New Delhi giving sufficient reasons for doing so.

14. If any commission is to be paid to the Indian agent of the French supplier, it will be shown separately from the value of the contract. The Indian agent's coinmis sion will be paid in Indian rupees but will be set against the total value of the import licence.

15. The value should be reckoned at present at the central rate of one French Franc = Rs. 1.422. The above rate of exchange is, however, subject to revision.

Value Limits of Contracts

16. The value of each contract should not be less than FF 2,00,000 or Rs 2.844 lakhs at the current central rate of exchange referred to above,

O/igin of Goods

17. The goods should be of French origin. A stipulation as to the origin of Goods should be incorporated in the contract. Wherever a part of the goods is permitted to be of non-Ircnch origin, a letter evidencing approval of the French authorities to the third country imports should accompany tho contract.

Port of Shipment

18. Goods, if necessary, can be shipped from non-French ports.

Payment Terms

19. The Special French Credit does not provide for deferred payments, Full payment will, therefore, be made to the French supplier against shipments, completion of erection or on commissioning of tho plant as indicated in the following paragraphs,

Advance Payments

20. An advance payment of a 5 per cent of the F.O.H. price of the supplies to be paid at the time of the contract coming into effect must he provided, Other terms are settled between the buyers and the sellers, in accordance with the normal international commercial practice in this matter, for the particular type of goods concerned.

21. However, where an amount higher than 5 per cent is to be provided for pay- ment as an advance, prior approval of the Deportment of Economic Affairs should be obtained with full justification, before any commitments arc made.

Other Payments

22. (a) Industrial Projects.—Apart from the umounl of down payment, it is per- missible to pay the balance amount at the time of lasl shipment of equipment under the contract, or at the time of completion of erection, or on commissioning of the plant.

Where the nature of supplies/services covered by the contract requires a performance guarantee, necessitating a provision to the eifcet that the last instalment of 10 per cent shall not fall due prior to the end of an adequate period after completion of tho deliveries of goods or of the project, the importers should alternatively, agree to tlie provision for making hundred per cent payment at the time of last shipment subject to the condition that a performance guarantee of an approved bank is furnished by the French supplier to the Indian importer; such a guarantee should be discharged at the end of an adequate period after the delivery of the last shipment as agreed mutually between tho Indian importer and French supplier.

However, depending on the type of project, the payment for contracting for industiial projects rrmy also be provided for, as for the commodities, referred to in sub-paragraph (b) below.

(b) Commodities.—\n the contract? for commodities (light equipment, spnres, com- ponents, chemicals, fertilizers, other raw materials, etc.") the amount left after down payment will be payable pro-ratir according to the value of goods covered by each shipments, on the basis of the shipping schedule.

Other Conditions

23. To make a contract eligible for financing under the special French Credit, it should suitably incorporate the following provisions, apart from those indicated above as also any others considered necessary by the contracting parties:

(i) The two contracting parties agree that tbe contract is subicct to the approval of the Tndian and French authorities for fmnncine under the Special French Credit in terms of the Indo-French Fiirinci.il Protocol and the licensing conditions issued thereunder bv the Government of India.

(ii) The French supplier agrees that in the case of imnorts of enriched uranium he will be paid from the French Treasury Credit upto 25 per ccr.i of the value of the contract and the naynwnt of the remaining 75 per cent \vill be made from the hanK credit in accordance with para 2<> of licensing conditions; and in ihe case of (he imports other than enriched uranium, the ratio between the Treasury credit and banVs loan will bo 45:55 respec- tively.

(iii) The Indian importer and the French supplier agree to furnish such informa- tion and documents as may be required under the French Credit arrange- ments between [he Governments of India and France.

24. It should be emu red that the terms of payments, e-g, amount payable on the contract becoming effective, and that payable against shipments/completion of project etc., are set out in precise terms, with details showing the schedule uf deliveries/pay- ments etc. The value of the contract should invariably be broken down into F.O.B. value and freight elements.

Customary Guarantees

25. The importer may arrange and provide for in the agreement customary guaran- tee^) which may be necessary for safeguarding his interest.

IV, Submission of Contract Documents

26. Within 20 days of the conclusion of the contract, the importer should send a letter accompanied by the following documents to the Ministry of Finance Depart- ment of Economic Affairs (WEI Section), North Block, New Delhi:

(i) Ten certified copies of the contract and of any further amendment(s) duly executed in English language and signed by both the Indian importer and the French supplier.

(ii) Two photo copies of import licence valid for contracting on the date of execu- tion of the contract/acceptance by French supplier of (he order placed on him by the importers.

(iii) Other particulars stipulated in Annexurc-1 in duplicate.

The contract will be processed further only after all these documents have hcen furnished by the importer.

j

V. Notification of Contract

27. The contract will be notified by the Department of Economic Affairs, to the Counsellor for Economic Affairs, Embassy of France, New Delhi, if it is complete, the documents, arc in order, the import licence is valid for contracting nnd is considered eligible for financing under the Special French Credit.

28. The contract will be deemed to have become effective 20 dfiys after its Notification sis above by the Department of Economic Affairs, provided no objection is raised by the Embassy of France within that period.

VT, Methods of Payments

29. Payments aie made to the supplier from the French Treasury loan and the banks credit, on presentation of documents listed in annexure IT to the Banaue National de Paris, on the basis of a ''letter of instruction" to be issued by the Controller of Aid Accounts & Audit, Department of Economic Affairs, Ministry of Finance, Jeevan Deep Building, Parliament Street, New Delhi, on effectuation of the contract

30. No remittances from India are permissible under the import licence issued under the French Credit, except in terms of condition 32 below.

31. Imjnediatelv after payments have been effected in accordance with the letter of instruction referred to above, the orieinal set of documents (negotiable) nloncwith rletnils of bank charges (1 /8th of one per cent documentation charpe, plus tax at the rate of 17-60 per cent thereon) nnd expenses on posting etc. will be sent bv the Banque National de Park to the importer direct.

32. The importer will intimate to his Accounts Officer the neeessarv details of pnv- ments and ensure that the latter fAccounts Officer) promptly accepts the debit fc- ihe rupee equivalent nf the pavrnenls made to the French suppliers, as and when raised bv thi- Accountant General Cfntrni Revenue*. New Delhi on ihc bn"i<; of the relevant nrfviccs issued bv the Controller of Aid Accounts & Audit, who also receives debit advice from the French bank concerned.

"iniiiarlv the lmik charges (1 /Rth of one per c nt n. chares nliK t-ix P* 17^0 ppr cent Ihcrennl, expenses on postage nnd r-nWp fee will he notified *"' 'h** French Bank ron^mci to \be Controller of Aid Account' gr Audit fr"- pavmfnt of these charges in free foreign exchange. The Controller of Aid Accounts A Audit will

authorise Chief Accounts Officer, High Commission for India, London to make the pay- ment of the above charges and raise debit against Accountant General, Central Revenues, through O.L.A.C. for passing on the same to the Additional Accountant General (Scientific Departments'), Bombay. Advance intimation of such debits will also be sent to the Additional Accountant General (Scientific Departments), Bombay for facility in adjustment. Such debit should also be promptly reported to Accountant General, Central, Bombay.

VII. Miscellaneous

33. The Government of India will not undertake any responsibility for disputes, if any. which may arise, between the Indian importer and the French suppliers,

ANNEXURE I

{In Duplicate)

[Para (Hi)]

To

The Secretary, Ministry of Finance, Department of Economic Affairs, WE-I Section, North Block, New Delhi 1.

SUBJECT.—Import under the Special French Credit 1974-75

Sir.

In connection with the import of—• • • — ————

(short description of the goods or services) from France under the above credit, we furnish the following particulars;—

(a) Name and Address of importer— (b) Import Licence:

(i) Number

(ii) Date (iii) Amount

(c) Name and Address of the French suppliers:

(d) Date of the contract:

Or

Date of Supplier's final

fe) Short description of goods to be imported: (f) Value of the contract; FOB Price

Freight

TOTAL

(g) The different dates on which the equipment will be shipped or services per- formed the value of each shipment, or service performed, based on the (Jelivry schedules as stipulated in the contract:

(h) The date on which payments under the contract will fall due—

(i) In respect of advance payment:

(ii) Other payments:

2. Ten certified copies of the contract (or each of the order and the letter of accept- ance) and of the amendment (if any), and two photostat copies of the import licence arc enclosed.

3. Debits relating to the transactions arc adjustable in the books of

(Designation & complete postal Address of the Accounts Officer).

and we shall ensure that they are adjusted as soon as they are raised in terms of the licensing conditions.

4. You are requested to get the contract approved for financing under the Special French Credit 1974-75 and issue necessary authorisation to the French authorities to arrange tor payments to the suppliers or their bankers.

Yours faithfully,

Licensee

ANNEXURE II

Illustrative List of Documents

(Para 29)

1. Commercial invoice foi the value of the equipment shipped and for details of any down payments, as the case may be.

2. Complete set of clean-on board ocean or charter party bills of lading or air ways bills, as the case may be, with packing lists where applicable; certificate, if any prescribed in the contract.

3. Written attestation from the suppliers alongwith necessary customs documents, cer- tifying that the French suppliers have complied with the percentage of French expenses authorized by the French Government.

4. Any other documents.

tldd ft*** GAjffiTUfc Ot INDIA EXttlAGRDlNARY ifAM I - B I T. n

SUBJECT.—Licensing conditions for French General Credit 1974-75

No. 122-ITC(PN)/74.—The terms and conditions governing the issuance of import

licences under French General Credit 1974-75 as given in the Appendix to this Public

Notice are notified for information.

APPENDIX

LICENSING CONDITIONS UNDER 1974-75 FRENCH GENERAL CREDIT

I. Import Licence

1. The import licence will be Issued on CIF basis, with initial validity period of tour

months for contracting and twelve months for completing shipments.

2. Each, import licence will bear a superscription, "French Credit—Project Portion" or

"French Credit Non-project Portion" as the case may be. The two suffixes in the licence

code classification number will bo—for project—"S/FE" and for non-riroject "S/FN".

3. Within a fortnight of the receipt of the import licence, the Importer should intimate

to the Department of Economic Affairs (WE-I Section) the fact of receipt of the Import

licence indicating the number, date and value of the import licence and likely date by

which the contract documents would be furnished,

4. The condition regarding contracting will not be deemed to have been complied with

unless complete contract documents, as provided in para. 26 below, are furnished within

the Stipulated period of four months.

5. 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 revulidstod on

an application by the party, alongwlth the licence In originals to the licensing authority

giving reasons for not complying with the requirement in time-

6. The request for revalidation would be considered by the licensing authority on

merits, In consultation, with the Department of Economic Affairs, and if accepted, the

licence will be invalidated for contracting for a further period not exceeding three months.

II. Contracting

7. One contract, on the basis of firm prices has to be entered into with a French

supplier for the whole amount of the licence.

8. However, more than one contract may be entered into subject to the permission

specifically obtained from the Department of Economic Affairs, giving reasons for doing

so, before placing orders.

9. Once a contract has been notified, in accordance with the procedure laid down In Section V below, no amendments to the contract, by way of additions thereto exceeding 10 per cent of the value of the main contract will be entertained.

I*t in any case, the Indian importer apprehends that there will be need to enter into amendments to the main contract resulting in the enhancement of its value by more than 10 per cent, he should immediately inform the CCI&E and WE-I Section of the Depart- ment of Economic Affairs, Ministry of Finance of the full facts of the case and seek their guidance.

10. A contract will normally comprise an Agreement signed by both the parties v/z., the Indian Importer and French supplier or it may comprise the order placed by the Indian importer and the letter of acceptance thereof in unequivocal terms by the French supplier.

11. A contract comprising a series of correspondence between the, two parties frequently amending/revising various provisions will not be accepted. 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.

12. Under the French Credit Agreement, Government of India have the option to substitute Buyers' Credit by suppliers' credit, granted by French banks for the Project Portion. It has, therefore, been considered necessary that Indian importers who had allocations of and above FF. 5 million (Rs. 71.1 lakhs) from the Project portion of the French credit should invite auotations from French suonlicrs fir the supp'y of eauipment on the basis of normal suppliers' credit, •acenrdina to the conditions us determined at that time. The Tndian importer should also invite quotations on the bas's of pavment terms as indicated in paras 19 to 22 below. On the basin of this data. Government of Tndia will decide the manner of financing the imports and advise the importer of the same,

n i. Terms of Contract

General

11 The contract should be nlaced on a C.I.F. or C. & F basis and should clearly indi- cate F.O.B. price, freight and insurance charges separately. All of th-se should be indicated in French currency. Contract pinst be ^nWed onW on C #F basis, bv 'a Government agency or a public sector undertaking. If any irmv"rter d"sircs to enter into a c o n t ra on f.o.b. basis, they should seMc prior rermiss;on of the DePKrtnr-nt of Economic Affairs

14. If any commission is to be paid to the Tndian 'arent of the French sunpHer^ it will be shown separately from the value of the contract. Th" Tndmn aunts' commission will be paid in Indian rupee but will be set against the total value of the import licence,

15. The va'ue should be reckoned st present nt the cenirni rate of one French Franc = Rs. 1.422. The above rate of exchange, is, however, subject to revision,

Value of Limits of Contracts

16. The value of each contract should not fall below the amounts indicated against

each category as under:

(Rs./lBkhs)

FF Million

5'O0

C7i IOO)

5-00

(1) my (no

o'5O

0'2O

(71- ioo) (7* no) O 844) (0711)

o 05

I ^e IndniHai project PrriVf*ft>Theavy equipment Fe^ti'izc-s Cioltftl £inds Oth"T goof's

(Iv) (v)

Origin of Goods

17. The goods should be of French oriqiti. A stipulation las to the origin of goods should fcf Incorporated in the contract. Wherever a pirt of th": Roods in permitted to be of non-French orioin. a letter evidencing npnroval of the French authorities to the thtnj country imports should accompany the contract

[PART 1—SEC. 1] THE GAZETTE OF INDIA BSEtRAOttlHNAiiV 1AO9

Port of Shipment

18. Goods, if necessary, can be shipped from non-French port*.

Payment Terms

19. The French Credit does not provide for deferred payments. Full payment will, therefore, be m'ade to the French supplier against shipments/completion of erection/com- missioning of the plant as indicated in the following paragraphs.

Advance Payments

20. An advance payment of a 5 per cent of the FOB price of the supplies to be paid at the time of the contract coming into cflect, must be provided. Other terms as settled between the buyers and the sellers, in accordance with the normal international commer- cial practice in this matter, for tho particular type of goods concerned could also be pro- vided.

21. However, where an amount higher than 5 per cent is to be provided for payment as an advance, prior Approval of the Department of Economic Affairs should be obtained with full justification, before any commitments are made.

Other Payments

22. (a) Industrial Project.—Apart from the amount of down payment, it is permissible to pay the balance amount at the time of last shipment of equipment under the contract, or at the time of completion of erection or on commissioning of the plant.

Where the nature of supplies/services covered by the contract requires a performance guarantee, necessitating a provision to the effect that the last instalment of 10 per cent shall not fall due prior to the end of an adequate period after completion of the deliveries of goods or of the project the importers could alternatively, agree to the provision for making hundred per cent payment at the time of last shipment subject to the condition that a performance guarantee of an 'approved bank is furnished by the French supplier to the Indian importer; such a guarantee should be discharged at the end of an adequate period iafter the delivery of the last shipment as agreed mutually between tho indian importer and French supplier.

However, depending on the type of project, the payment for contracts for industrial pi-oie-ts may also be provided for, as for the commodities, referred to In sub-paragraph (b) below.

(b) Commodities.—In the contracts for commodities (light equipment, spares, compo- nents, chemicals, fertilizers, other raw materials etc.) the amount left after down payment will be payable prv-rata according to the value of goods covered by each shipment, on the bans of tho shipping schedule.

Other Conditions

23. To make a contract eligible for financing under the French Credit it should suitably incorporate the following provisions, apart from those indicated above as also any other considered necessary by the contracting parties:

(i) The two contracting parties agree that the contract is subject to tho approval of the Indian and French authorities for financing under the French Credit in terras of the Indo-French Financial Protocol and the licensing conditions issued thereunder by the Government of India.

fii) The French supplier agrees that ho will be paid from the French Treasury credit upto the first 50 per cent of the value of the contract and the payment of the remaining 50 per cent will be made from the Buyers' (Bank) credit in accordance with para 29 of licensing conditions.

(iii) The Indian importer and the French supplier agree to furnish such information and documents as may be required under the French Credit arrangements between the Government of India and France.

24 It should be. ensured that the terms of paymnets, e.g. 'amount payable on the contract becoming effective, and that payable against shipments/completion of project etc.. are set out in precise terms, with details showing the schedule of deliveries/payments etc The value of the contract should invariably be broken down into F.O.B. value, freight and Insurance elements.

Customary Guarantee

25. The importer may arrange and provide for in the agreement customary guaranteed) which may be necessary for safeguarding his interest.

IV. Submission of Contract Documents

26. Within 20 days of the conclusion of the contract, the importer should send a lotter accompanied by the following documents to the Ministry of Finance, Department of Economic Aflairj, (WE-I Section), North Block, New Delhi:—

(i) Ten certified copies of the contract and of any further amendment (s) duly executed in English language and signed by both the Indian importer and the French supplier.

(ii) Two photo copies of import licence valid for contracting on the dat" of execu- tion of the contract/acceptance by French supplier of the order placed vn him by the importer.

(iii) A bank guarantee (as in Annexure I) obtained from a schedule bank authorised by the Reserve Bank of India to deal in foreign exchange. This bank guarantee is not to be furnished by the Government departments and public undertakings.

(iv) Other particulars stipulated in Annexure-Il in duplicate.

The contract will be processed further only after all these documents have been fur- nished by the importer.

V. Notification of Contract

27. The contract will be notified by the Department of Economic Affairs, to the Coun- sellor of Economic Affairs, Embassy of France, New Delhi, if it is complete, the docu- ments, including the bank guarantee, etc. are in order, the import licence is valid for con- tracting and is considered eligible for financing under the French Credit.

28. The contract will be deemed to have become effective 20 days after its notification as above by the Department of Economic Affairs, provided no objoction is raised by the Embassy of France within that period.

VI. Methods of Payments

29. Payments are made to the supplier from the French treasury loan and the banks credit, on presentation of documents listed in Annexure-III to the Banque National de Paris, on the basis of a "letter of instruction" to be issued by the Controller of Aid Accounts and Audit, Department of Economic Affairs, Ministry of Finance, Jeevan Deep Building, Parliament Street, New Delhi, on effectuation of the contract.

30. No remittances from India are permissible under the import licence- issued under the French Credit, except in terms of condition 32 below.

31. Immediately after payments have been effected in accordance with the letter of intruction referred to above, the original set of documents (negotiable), alongwith details of bank charges (l/8th of one per cent documentation charge, plus tax (g> 17,60 per cent thereon) and expenses on postages etc. will be sent by the Banque National de Paris, to:—

CO the importer's bank in India, which has provided the bank guarantee in the C*M of Importers in the private sector; or

(il) to the nominated branch of the State Bank of India, or of any one of the fourteen nationalised banks in the case of public sector undertakings, State Govern- ments Including State Electricity Board; or

(ill) to the importer direct, in the case of the departments of Central Government.

32. Within a week of receiving the intimation about bank charges, from the Banque National de Paris, the Indian bank will remit the amount of banking ch'arges and postage mclndinit coble charges directly to the French bank concerned without affecting Govern- ment of India's account.

33. For this purpose, necessary rupees will be collected by the Indian bank from the Indian Importer, in addition to the amount required under their guarantee.

34 In respect of imports bv Central Government Departments the remittances of bank- ing charges and postage including cable charges will be arranged by the Controller of Aid

uunts and Audit, by debit (o the authority concerned. For this purpose those autho- 5 should intimate the details of the charges to be paid, promptly to the Controller of Accounts and Audit.

VII. Effecting Rupee Deposits

35. (i) Private Sector importers, public sector undertakings and State Government •artmentx including State Electricity Boards.—Within ten days, at the maximum, of receipt of the documents mentioned in condition 31 supra, the bank which has issued guarantee, or the nominated branch of the State Bank of Tndia or one of the fourtcon ionalised banks in Indi'a, will arrange the deposit equivalent of the payment made to foreign suppliers as indicated in the invoice together with commission and incidental rges @ 1 per cent ad valorem, on the payments made to the suppliers, Tn addition, :rcst at 6 per cent per annum, for the actual period between the date of payment to foreign suppliers and the date of deposit of rupee equivalent, or any other amounts, may be required by the Government of Tndia shall also be paid into the Government ount, The rupee equivalent will be Calculated at the composite rate arrived at on the basis a formula given in Public Notice No. 15-ITC(PN)/72, dated 28th January 1972 as iended by the Public Notice No. 108-TTC(PN)/72, dated 21st July, 1972, or as may be tifled by Government from timo to time through Public Notices of tho Ministry of immerce.

(ii) Central Government Departments,—Tn respect of imports made by the departments Central Government the documents will be sent direct to the importers, who will ensure it their respective accounts officers promptly accept the debits, as and when raised bv e Accountant General, Central Revenues, New Delhi, on tho basis of the advices issued the Controller of Aid Accounts and Audit. The above procedure of making deposits

II not apply in their case.

36 Tt will be the responsibility of the concerned bank in Tndia which has given the tarantce or the State Bank of India or one of the fourteen nationalised banks, as the case ay bo, to arrange for the timely deposits of these amounts, before handing over the •iginal shipping documents to the importer.

inte7c st,.h"!I *e™ ^t

T

37. Deposits may be made either at the Reserve Bank of India, New Delhi, or the State ank of India, Tis Hazari Branch, Delhi-6 or remitted by mc'ans of a demand draft from le local branch of the State Bank of India, or its subsidiaries, drawn on and made pay- ble to the State Bank of India- Tis Hazari Branch, Delhi-6 (drawee and payee) for credit > Central Government account in terms of Ministry of Commerce Public Notice No. 184- • rC(PN)/68, dated 30th August, 1968 and Public Notice No. 233JTC(T-N)/68, dated the 4th October 1968. The challan should, inter alia indicate letters of instructions No. nd date the amount of foreign exchange, the composite rate applied, the date on which he supplier was paid and the date of rupee deposit and all other essential particulars Scribed in Public Notice No. 132-TTC(PN)/71, dated 5th October, 971 TTie: pnncipal mount, the incidental charge & 1 per cent ad valorem and the interest payment at 6 per ™t should be shown separately along with the period for which v -dated. The demand draft should be sent direct to the State Bank °f Jndia. Tis Hazari fcanch Delhi-6 with treasury chall'an (duly filled in and signed by remitter) m quadruph- aT The Head of Account to be credited is "K-Deposits and Advances (b) d g o g t o no faring intcrest-843—Civil deposits for purchases from abroad under 214m. V? General

Bank of India, Bombay.

Rel^r^7^L sector ^^^^S^^^^T^all the obligations in terms of the bank S ^ ^ n cl g ^ ^ rele £ ^

gS gtrlntec™⁷ ^ a ^ S t i o nt toward *11 be made b, the form given in

Annexure IV.

Vill. Miscellaneous

41. The Government of India will not undertake any responsibility for disputes, if any, which may arise, between tho Indian importer and the French suppliers.

42. The Indian importer shall promptly comply with any directions, instructions or orders issued by Government from time to time regarding any and 'all matters arising from or pertaining to the import licence and for meeting all obligations under tho credit agree- ment with the French Government and French banks.

43. Any breach or violation of any of the condition prescribed herein will result in appropriate action under the Imports 'and Exports (Control) Act, 1947 and orders issued tnereundcr.

ANNEXURE I

[Para 26 (Hi)]

BANK GUARANTEE BOND

To

Tho President of India,

In consideration of the President of India (hereinafter called the Government) have agreed to arrange for payment in FF for the import of

by

(hereinafter Called

issued on

the importer) under the terms and conditions of the French Credit and in pursuance of Import Licence No. in favour of the importer against the above mentioned credit, we

Bank, at the request of the importer hereby undertake to arrange to deposit within ten days of the receipt of the advice of payment Indian rupees equivalent to FF converted at the composite rate of exchange of FF 1 arrived at on the basis of the formula given in Public Notice issued by the Ministry of Foreign Trade, New Delhi, No. 15- rrC(PN)/72, dated 28th January, 1972 as amended by Public Notice No. 1O8-TTC(PN)/72, dated 21st July, 1972 or as notified from time to time in public notices of the Government of India or A.D. Circulars of the Reserve Bank of India alongwith commission and other charges at 1 per cent ad valorem committed at the above rate 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 fi per cent per annum, from the date of payment to the French supplier to the date; of deposit of rupee equivalent for credit to the Government account. We shall arrange thr deposit to the credit of the Government in the Reserve Bank of Tndia, New Delhi, State Bank of India, Tis Hazaii Branch, Deihi-6. or where this may not be feasible by mean? of a Demand Draft drawn on and made payable to the State Bank of India, Tis Hnzari Branch, Delhi-6 (for credit to Central Government Account). The demand draft shall be sent direct to State Bank of India, Tis Hazari Branch, Delhi-6, alongwilh Treasury Challan (duly filled in and signed by remitter, in quadruplicate).

2. We the

Bank, also undertake th'at the negotiable set of Import documents will be released to tke importer only after the rupee deposits rontcmpluted above have heen made,

3. We the

Bank, also undertake to indemnify and keep indemnified the Government against any default in payment by thejmportcr of any sum that may be due and payable from time to time by the importer to the Government at such place and in such manner as the Government may 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 French Supplier anc commission and other charges @ 1 per cent ad valorem. The decision of the Governmen as to any default in the said payment by the importer, or on his part and 1n regard tc the amount payable to th© Government by us Bank, shall be final and binding on us

Bank.

4 Ve

aiso undertake to remit the banting and postal including cable c h a r ts payable to The trench bank concerned and recover the same irom the importer without affectina the Government of India account.

5. We

B t t n k( further agree that in case of incrciwe in the value of imports or increase in the value of unfulfilled deliveries under the contract as a result of change in composite rate of exchange or otherwise, Hie amount of this guarantee bond will be adjusted as on the date when the change takes place, in proportion to this change.

. ⁶- 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 regarding delivery of the equipment and that it shall continue to be enforceable till all the dues to the Government under, or by virtue of this guarantee have been fully paid and its claims satisfied or discharged.

7. The Guarantee herein contained shall not be affected by any change in the constitu- tion of the Importer or the Bank, and the Government shall have the fullest liberty without the guarantee to postpone for •any time and from time to time any of the powers excrciseable by it against the importer and either to enforce payment by the importer of any of the amount the payment whereof is intended to be hereby secured and the Bank, shall not be released from its liability under this guarantee by any exercise of the Govern- ment of the liberty with reference to the matter aforesaid or by reasons of time being given, to the importer or any other forbearance, act or omission on the part of the Government of any indulgence by the Government to the importer or by any other matter or thing whatsoever which under the law relating to sureties shall, but for this provision, have the effect of so releasing the Bank from its such liability,

8. We

Bank, lastly undertake not to revoke this guarantee during its currency, except, with previous consent of the Government in writing.

9. Our liability under this guarantee is normally restricted to Rs. @

(plus interest charges not expected to exceed one per cent of the guaranteed amount) and this guarantee ahull remain in force till the day* of (Month) 19

10. Wo

, however, undertake to make such additional deposits as may be necessary in terms of Public Notice No. 15-ITC(PN)/72, dated 28th January, 1972, as notified from time to time, Unless claims under this guarantee ate made in writing within six months of this date and unless a suit or action to enforce these claims is commenced within another six months thereafter, i.e. upto , all rights of the Government of India under this guarantee shall be forfeited and we shall be relieved and discharged from all liability thereunder.

Dated the day of

Accepted for and on behalf of the President of India by Shri

(Name and designation)

Signature

©This amount should be worked out by adding 1 per cent to the value of the contract at the Central rate of 1 FF = Rs. 1.422.

*The date shall be arrived at by adding one month to the date by which all payments to the Suppliers are expected to be finalisea.

NOTE.—The value of the Stamped paper on which guarantee is to be executed is to be

adjudicated by the. Collector of Stamps.

L . A A , u [PART I^SE^. 1]

ANNEXURE U

(in duplicate)

To

The Secretary, Ministry of Finance, Department of Economic Affairs, Wb-I Section, North Block, New Delhi 1.

SUBJECT,-—Import under the French Credit

Sir,

In connection with the import ot

(Short description of the goods or services) from France under the above credit, we furnish the following particulars:—

(a) Name and Address of importer. (b) Import Licence:

(i) Numebr (ii) Date (iii) Amount

(cj Name and Address of the French suppliers; (d) Date of the Contract: OR Date of Suppliers final letter of acceptance- of the order;

(e) Short description of goods to be imported: (f) Value of tho contract. FOB Price

Freight

Insurance Total:

(g) The different dates on which the equipment will be shipped or services per- formed, the value of each shipment, or service performed, based on the deli- very schedule as stipulated in the contract:

(h) The date on which payments under the contract will fall

(i) in respect of advance payment (ii) Other payments.

2 Ten certified copies of the contract (or each of the order and the letter of acceptance) and of the amendment (if any), and two photostat copies of the import licence are enclosed.

*3. A bank guarantee established by — • —

(name and address of the Indian hank, authorised to deal in foreign exchange) and which has been duly adjudicated by the Collector of Stamps, m accordance with Section 31 of the Stamp Act, 1899, is also attached.

(Applicable to importers in private sector)

OR

• 3. The import documents may he sent to

(complete name and postal address of the branch of tho State Bank of India or of any of the fourteen nationalised banks). who will release the documents to us only after making the deposit ot the rupee equivalents into Government account calculated ut the composite rate of exchange arrived at on the basis of tho formula given in Public Notice No l5-lTC(PN)/72, dated 28-1-72 as amended by Public Notice No. 108- lTC(PN)/72 dated 21-7-1972 or as notified from time to time by Public Notices of the Government' of India or by A.D. Circulars of the Reserve Bank of India with interest at 6 per cent per annum from the date- of payment to the French suppliers to the date of deposit of rupee equivalent and commission and incidental charges at 1 per cent ad valorem and after remitting banking charges (1/8th. of one per cent documentation charges plus tax @ 17.60 per cent there- on) and expenses for actual postage charges as required under the licensing conditions (Applicable to tho Public Sector Undertaking and State Government including State yK Electricity Boards)

•Delete whichever is not applicable

OR

i:'3. Debits relating to the transactions and adjustable in the books —- (Designation & complete postal Address of the Accounts Officer.)

and we shall ensure that they are adjusted as soon as they arc raised in terms of the licensing conditions.

(Applicable only to Departments of Central Government)

4. You are icquested to get the contract approved for financing under the French credit and issue necessary authorisation to the French authorities 10 arrange for pay- ments to the suppliers or their bankers.

Yours faithfully,

Licensee

ANNEXURE III

Illustrative List of Documents

Para (29)

1. Commercial invoice for the value of equipment shipped and for details of any down payments, as the case may be.

2. Complete set of clean-on-board ocean or charter paity bills of lading or air way bills, as me case may be, with packing lists where applicable; certificate, if any pres- cribed in the contract.

3. Written attestation from the suppliers alongwith necessary customs documents, certifying that the French suppliers have complied with the percentage of French ex- penses authorised by the French Government.

4. Any other documents.

ANNEXURE IV

Form of Application for release of Bank Guarantee

Para (40)

To

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

Sir,

We are furnishing below detailed information on the rupee deposits made by us in discharge of our obligation under Bank Guarantee No. —— dated • ~ • for an amount of Rs.

(i) The name and full address of the importers/licensee on whoso behalf the bank guarantee was furnished.

(ii) The import licence No., date, value, brief description of the equipment and or commodities allowed for import thereunder.

(iii) Particulars of the Letter of Instruction issued by the Ministry of Finance (to be given separately for each Letter of Instruction).

(a) Letter No. and Date.

(b) Amount for which the instruction had issued.

(iv) Particulars of imports and rupee deposits made:

(a) Invoice No. and date.

(*) Delete whichever is not applicable,

(b) Amount of invoice (net) in French Francs. (c) Amount of rupee deposits.

(d) Relative challan No. and date and the name of Treasury/Bank, (,e) 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 of¹ India, Delhi.

(v) Amount utilised and balance unutilised in French Francs under each Letter of Instruction.

iPAtti I—SKt. 1] THE OAZBZttl OF iMDlA EXfltAORDlNAnY IJJI

PRINTED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, N EW DELHI AND PUBLISHED BY THE CONTROLLER Of PUBLICATIONS, DELHI, 1 9 74