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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 307] NEW DELHI, WEDNESDAY, DECEMBER 18, 1974/AGRAHAYANA 27, 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 18th December 1974

SUBJECT—Licensing conditions relating to 5th Danish Loan, 1974

No. 189-ITC(PN)/74.—The terms and conditions governing the issuance of import licences financed under the 5th Danish Loan, 1974, as given in Appendices I & II to this Public Notice are notified, for information.

APPENDIX I

CONDITIONS FOR LICENSING PUBLIC SECTOR IMPORTS UNDER THE FIFTH DANISH LOAN, 1974.

1 The licence will be issued with a validity period of twelve months but firm orders on C.I.F/C & F basis must be placed on the Danish suppliers and copies tit the same furnished to the Ministry of Finance, Department of Economic Affairs within six months from the date of allocation or four months from the date of issue of the import licence (whichever is earlier). The term firm order means purchase orders placed by the Indian licensee on the foreign supplier duly supported by confirmation from the latter or purchase contract duly signed by both the Indian Importer and the foreign supplier. If firm orders cannot be finalist within the time limit of four months the licensee should submit to the Chief Controller of Imports, Exports (C.C.I. & E.) or other licensing authorities as the case may be a proposal seeking an extension in the ordering period alongwith justification and explanation as to why ordering could not be completed within the initial validity period. Such requests for extension in the ordering period will be considered on the merit of each

case by the licensing authority who may grant extension upto a further maximum period (1871)

jSfl t f lj

of 2 months. If, however, extension is sought beyond 6 months from the date of issue of import licence, such proposal should invariably be referred by the licensing authorities to the Department of Economic Affairs, (W.E. 111 Section), Ministry of Finance. The lioenc* code "S" land "BB" should be indicated in the first and second suffix after the licence number. The correct licence code should be used in all the shipping documents as well as in the "S" form required to be furnished to the Indian Bank at the time of rupee deposits,

2 Onlv eoods of Danish origin as per list at Annexure-I are eligible for being financed under fhtacSttt The minimum vaWe of a contract to be eligible for financing under this S is m 2h Kroner 50,000 in respect of capital Equipment and Components and Danish Kroner 25,000 in respect of Spares.

3 The licence will not be valid for remittances from India. Payments to the Danish auppiiers can bT made only in accordance with, the procedure set forth in paragraph 6—10 below.

4. The contract of supply between the Indian Importer bnd the Danish Supplier should provide for the import being financed out of the Fifth Danish Loan in accordance with the procedures set forth in these Liaeisiag Con1 of dhipptftg doouments. For any customary pditformance guarantee, the Suppliers could be asked to furnish a bank guarantee,

6. As soon as possible after the contracts are concluded, the importer should lequest the Ministry of France, Department of Economic Alfaiis, W.E. Ill Section to obtain the approval of the Danish authorities to the contract. This request should be accompanied by four photostat/certified copies of the Contract/Supply Order and a photostat copy of the Import Ikence. The following information should also be sent to the Department ot Economic Affairs atong with the contracts/supply order—

(i) Details of the Import Iicertce—

-—

•—•

(a) Number—• (b) Date of Issue (c) Value ——

(ii) Namej and |Address of the Importer— —— •

(iii) Name and Address of the Danish Suppliers •—— (Iv) Value of the contract/order in D'anish Kroners (v) Short description of the goods to be imported (vi) Time for delivery (A schedule indicating probable dates and amounts of payments

to the supplier may also be given).

(vii) Detailed list of shipping documents, like Bill of Ladin" Invoices, certificate of Origin, etc., which the Danmarks National B'ank should demand from the Suppliers before making payment, together with the number of copies of each document required —— — ——

(vlii) Indian Agents' Commission, if any, included in the contract (Amount or percen- tage to be indicated). (The Indian Agents Commission will be payable by the. Importer in rupees and will not be included in the value of the Letter of Authority),

fix) Branch of any Nationalised Bank to which the original documents (negotiable)

should be sent by the Danm'arks National Bank,

(x) Date upto which the letter of authority to the Danmarks National Bank should

be valid,

(xl) Special instructions, if any

7. On receipt of the copies of the contract/supplvoKlM and the information required

Ing payrnentS the suppliers against shinning documents will be issued only after the Danish approval to the contract has been received.

[PART I—SIC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 137

8. Within 10 days of receipt of shipping and other documents from the Danmarks National Bank, the importers' Bank shalL arrange to deposit into Government account as indicted in; para " below, the rupee equivalent or the amount disbursed to the Suppliers

fiiS ?h ⁶^r cmSl fOr the viT¹^ itotA tlic date °f Pav^nttothe Danwh Supphers upto the date on whick rupee equivalents are deposited. For thin purpose ^t tJ^menU m a^* in D a m sh Kr°n?n> *ai have t0 be Convened into 'Rupees aTper instructions contained in Public Notice No. l5-ITC(PN)/72 dated 28th January 1972 and Public. Notice No. 1084TQPNV72 dated 21st July, 1972. Any X ii tothis rate or conversion wiU be notified through Public Notice as and when necessary, it will bo the responsibility of the bankers to ensure that ths amounts due are correctly deposited into" Government Account before the import documents are handed over to the parties. T^e importer should also ensure that the amounts are corrfectly deposited into Government account before taking delivery of the documents from their bankers.

1874 TOE GAZETTE OF INDIA EXTRAORDINARY [PARF I—SEC. 1]

furnished to the Ministry of Finance, Department of Economic Affairs within four months from the date of issue of the import licence. The term firm order means purchase orders placed by the Indian licensee on the foreign 9uppLier duly supported by confirmation from the latter or purchase contract duly signed by both the Indian Importer and the foreign supplier. If firm orders cannot be finalised within the time limit of four months tho licensee should submit to the Chief Controller orimports & Exports (CCI&E) or other licensing authorities 'as the case may be,, a proposal seeking an extension in the' orde"nS period alongwith justification and explanation as to why ordering could not be completed within the initial validity period. Such requests for extension in the ordering period will be considered on the merit of each case by the ticens.ng authorities who may grant

to the Indian Bank at the time of rupeo deposits.

2. Only goods of Danish origin, as per list at Annexure I are eligible for being financed under this credit. The minimum value of a contract to be eligible for financing under this Loan is Danish Kroner 50,000 for Capital Equipment and Components and Danish Kroner 25,000 for Spares.

t5t r a pt of *uPp.lv be^een the Indian Importer and the Danish Supplier should 3. The licence will not be valid for remittances from Indfa. Payments to the Danish Suppliers can be made only in accordance with the procedure set forth in paragraphs 6—10 below. " ™;^T I? c o provide for the import being financed out of tho Fifth Danish Loan in accordance with the procedures set forth in these Licensing, Conditions, and should also be made subject to approval by the Government of 'India. Importers should take special care to inform the Suppliers about this condition and also incorporate a clause to this effect in the supply contract. Moreover, approved orders should not bo cancelled without prior concurrence of the Ministry of Finance, Department; of Economic Affairs.

A ⁶™— soon as possible after the contracts are concluded, the importer should request the Ministry of Finance, Department of Economic Affairs, W. E. Ill Section to obtain the approval of the Danish authorities to the contract. This request should be accompanied by four photostat/certified copied of tho contract/Supply Order; a photostat copy of the Import Licence and Bank Guarantee from an approved scheduled bank in the form attached (Annexure III) agreeing to deposit the amounts specified in paragraph 8 below. The foot note under the Bank Guarantee form should be noted for strict compliance. The following information should also be sent to the Department of Economic Affairs (W.E. HI Section) along with the contract/Supply Order:—

(i) Details of the Import Licence—

(a) Number (b) Date of issue— — . —— — .-

(c) Value & —— —— .—

.-——

(ii) Name and address of the Importer (iii) Name and address of the Danish Supplier—• ——— — (iv) Value of the contract/order inl Danish Kroners—— — -~ . (v) Short description of the goods to be imported- — —^- (vi) Time for delivery (A schedule indicating probable dates and amounts of pay- ments to the supplier m'ay also be given).

(vii) Detailed list of shipping documents, like Bill of Lading, Invoices, certificate of Origin, etc., which the DanmaAs National Bank should demand from the Suppliers before making payment, together with the number of copies of each document required —— ~—— -~— ——

(viii) Indian Agents' Commission, if any, included in the contract (Amount or per- centage to be indicated). (The Indian Agents' Commission will be payable by the Importers in rupees and will not be included in the value of the Letter of Authority).

[PAHT I—SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 1875

(ix) Name of the Importer's Bank in India —— (x) Special instructions, if any • •

. 7. On receipt of the copies of the contract/supply older, the Bank Guarantee and the information required in paragraph 6 above, the Department of Economic Affairs, (W.E. i ll Branch) will forward a copy of the contract to the Danish authorities through Embassy of India in Denmark. A letter of Authority to the Danmarks National Bank (in the form at Anncxure II) authorising payment to the suppliers against shipping docu- ments will be issued only after the Danish approval to the contract has been received.

8. Within 10 days of receipt of shipping and other documents from the Danmarks National Bank the importers' Bank shall arrange to deposit into Government account as indicated in para 9 below, the rupee equivalent of the amount disbursed to the Sup- pliers together with interest at 6 per cent p.a. for the period from the date of payment to the Danish Suppliers upto the date on which rupee equivalents are deposited. For this purpose the payments made in Danish Kroners will have to be converted into Rupees as per instructions contained in Public Notice No. 15-ITC(PN)/72, dated the 28th January. 1972 and Public Notice No. 108-ITC(PN)/72, dated the 21st July, 1972- Any change in this rate of convrsion will be notified through Public Notice as and when necessary. The importer should furnish a bank Guarantee from an approved scheduled bank in the form in Annexure I1T agreeing to deposit the amount. The rate of exchange to be adopted for working out the amount of the Bank Guarantee should be the same as indicated on the impart licence. The foot note under the bank guarantee form should be noted for strict compliance. It will be the responsibility of the bankers to ensure that the amounts due are correctly deposited into Government Account before the import docu- ments are handed over to the parties- The importer should also ensure that the amounts are correctly deposited into Government account before taking delivery of the documents from their bankers.

9, The deposit envisaged in para 8 may be made in cash either at the Reserve Bank of India, New Delhi or the State Bank of India., Tis Hazari, Delhi or the amount may be remitted through a demand draft drawn on and in favour of the Agent, State Bank of India, Tis Hazari, Delhi-6 for credit to Government account as contemplated in Public Notice No. 233-ITC(PN)/68, dated the 24th October, 1968 and Public Notice No. 132-ITC (PN)/7t, dated the 5th October, 1971. The head of account to be credited is "K-Deposits and advance (b) Deposits not bearing interest—843—Civil Deposits—Deposits for pur- chases etc. abroad—Purchases under Fifth Danish Loan for 1974."

In the treasury challans, the following particulars should invariably be furnished [vide also Public Notice No. 74-JTC(PN)/74, dated the 31st May, 1974] prescribing the revised challan form which should invariably be used for these remittances:—

Fifth Danish Loan, 1974.

(b) Amount of foreign currency in respect of which rupee deposits are to be

made together with the rate of conversion adopted.

(c) Date of payment to the foreign suppliers:.. (d) The amount of interest paid and the period for w"nich it has been calculated. (e) Total amount deposited.

(Interest is to be calculated for the period from the date of payment to the suppliers upto the date of deposit of rupee equivalents into Government Account).

10 One copy of the Challan from the Reserve Bank of India, New Delhi or the State Bank of India, Tis Hazari, Delhi-6 or intimation rfKFding the S^V jZ Oemand Draft to the State Bank of India, Tis Hazan, Delhi-6 should be sent by im-_ g r t e r" Bank, which Z issued the bank guarantee to the Controller of Aid Account and Audit, Department of Economic Affairs, Ministry of Finance Jeevan Deep Building, Parliament Street, New Delhi-110001 alongwith a forwarding letter, eiving full details of the Advice Notes received from the Danmarks National Bank.

Reserve Bank of India.

.

l87& 1HB GAZBTTp OF INDIA gXTRAORDINAfcY {PAKT I—SEC. 1]

profonna prescribed In Annexur© IV to enable the MJniutry of Finance to verify and arrange for release of the bank guarantees furnished by the importers wherever necessary. The importers will also be responsible to furnish a utilization report in the form in Annexure V quarterly to the Ministry of Finance, Department of Economic Affairs, W.E,in Section and the Controller Of Aid Accounts and Audit, Ministry of Finance, Department of Economic Affairs, New Deflii-110001.

13- 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 supplier.

14. The licensee shall promptly comply with, any directions, instructions, or order issued by the Government of India from time to time regarding any and all matters prising from or pertaining to the import licence and for meeting all obligations under the Fifth Danish Loan. They will also furnish a qjiaterly report (in duplicate) to the Ministry of Finance, Department of Economic Affairs, W.EIII Branch as per An- nexure V attached.

15. Any breach or violation of conditions set forth in the above clauses will result in appropriate action under the Imports and Exports (.Control) Act.

ANNEXURE I

Items, Eligible foi\ Import Under the Fifth Danish Loan

(1) Equipment for the Fishery industry, e-g. Marine Diesel Engines, etc. (2) Refrigeration equipment. (3) Machinery and equipment for the Cement industry.

'(i4) Machinery and equipment for development of fne Agricultural and Live-stock industries.

(5) Machinery and equipment for the dairy industry. (6) Equipment for Research and Technical institutions.

(7) Equipment for wood-working; crankshaft grinding machines and other Machine Tools required in the small scale industry sector.

(8) Machine Tools for the medium and large scale industries!

(9) Spare parts for Danish Capital Equipment.

(10) Machinery and equipment for the Fertilizer and Petro-Ohemlcal industries. (Jl) Machinery and equipment for Spray Drying Plants.

(12) Machinery and equipment for the; Plastic, Rubber and Chemical industries.

(13) Catalysts. (14) Equipment for the processing, drying and storage of food Products. (15) Electrical and electronic equipment. (16) Components for the capital goods production and other manufacturing pro- grammes in India.

(17) Such other equipment as may be 4ecided upon by mutual agreement between th" two Governments.

ANNEXtTRE II

No.

GOVERNMENT OF TNDW

MINISTRY OF FINANCE (Department of Economic Affairs)

New pelhi, ftov

To

The Danmarks National Bank,

COPEN HAGEN.

Dear Sirs, FIFTH DANISH-INDIAN LOAN AGREEMENT

Letter of Authority ftp.

In accordance with the terms and conditions of the above Credit Agreement, we here- by authorise you irrevocably to pay an amount of Danish Kroner

[PARE E^tee. " TO* flASKT^ W WW>Jtf S$I"*q*p]"T4*X I $ 77

to against the delivery of the following documents:—

copies copies

Invoice Bill of Lading Insurance Policy, if any, copies, etc.

covering the import of agajnst Contract No. . . . . . . . . .. . , . .. , . . . . . , „ . . , . . „ . . . . , , . . . " . ' . ' . . ' . " . ' ." approved by the Danish Ministry of Foreign AifaiiB on

2. After payment, thjs original set of the above documents may kindly be forwarded direct to the (Name of the Indian Bank)

3. The amount paid plus your charges, if any, may be debited to our Account with you designated "Government of India Loan Account" and necessary debit advice (in duplicate) along with one set of documents forwarded to the Ministry of Finance, De- partment of Economic Affairs, Economic Aid (Accounts) Branch, New Delhi.

4. One copy each of the above debit advices including the bank charges, if any, may also be sent to the Importer in India ,

5. This authority will remain valid upto the

day of

,

.

Yours faithfully,

( )

Copy to (The importers' Banks). Tjhey should ensure that the rupees equivalent calculated at the composite rate prescribed in Public Notice No. 15-ITC(P*N)/ 72, dated 28th January, 1972 and Public Notice No. 108-rrC(PN)/72, dated 21st July, 1972 and such other Public Notices that may be issued from time to time together with the interest thereon at 6 per cent from the date of payment to the suppliers-to the date of deposit of the amount into Government Account is deposited before releasing the original documents to the Importer.

ANNEXURE III

GUARANTEE BOND

(To be furnished by Banks under the Procedure for the import of goods under the

Fifth Danish Loan. 19^4)

To

The President of India,

In consideration of the President of India (hereinafter called 'the Government') having

issued on

agreed to arrange for payment in Danish Kroners for the import of by (hereinafter called the 'importer') under the terms /and conditions of the Fifth Danish Loan, 1974 and in pursuance of Import Licence No. in favour of the Importer against the above agreement, we —' (Bank) at the request of the importer hereby undertake to arrange to deposit the amounts of the disbursements made by the Danmarks National Bank converted at the prevailing composite rat© of exchange cal-^ culated as per instructions issued by the Government in lile matter from time to time within ten days of the receipt of advice of payment for , credit to the Government account in the manner and against the appropriate Heads of Account as indicated by Government of India under the said credit together wrtfa faifM-est at the rate of six per cent per annum on the amounts disbursed to the supplier from the date of payment to the Danish supplier to the date of payment of rupee equivalent for credit to the Govern- ment Account. The negotiable set of import documents received from the Danmarks National Bank will be released to the Importer only aft"r the rupee deposits contemplated above have been made.

2 We the (Bank) also undertake to indemnify and lfee.p indemnified the Government against any default in payment by the importer 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 from time to time direct .such sums not exceeding Rs or any part thereof for the time -b"in.g due and payable by the Importer. The decision of the Government as to any default in the said payment by

1878 THE GAZETTE OF INDIA EXTRAORDINARY [PART I —S EC lj

the Importer or on his part and in regard to the amount payable to th

3. We, (Bank) further agree that in case of increase in the value of import 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 I above, the amount of this guarantee bond will be adjusted as on the dat" when the change takes place in proportion to this change.

4. We, (Bank) further-agree that tho guarantee herein contained snail remain in full force and effect during the period that would be taken for the perform- ance 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 have been fully paid and its claims satisfied or discharged.

5. The guarantee herein contained shall not be effected by any change in the cons- titution of the Importer of the (Bank), and 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 exercisabbj by it against the importer and either to enforce payment by the importer of any of the amounts the payment where of is intended to bo hereby secured and the (Bank), shall not be released from its liability under the guarantee by any exercise by the Government of the liberty with reference to the matters aforesaid or by reason of time being given to the Importer or any other forbearance, act or omission on the part of the Government or any indulgence by the Government, to the Importer or by any matter or thing whatsoever which under the law relating to suritios shall, but for this provision, have the effect of so releasing the (Bank), from its such liability.

6. We, (Bank) undertake not to revoke this guarantee during its

currency except with previous consent of the Government in writing.

7 We (Bank), hereby undertake to make additional 'deposits in terms of Public Notices No. 15-TTC(PN)/72, dated the 28th January, 1972 and No. 108-1TC (PN)/72, dated the 21st July, 1972 and Buch other Public Notices that may be issued from time to time hereafter.

I

8. Our liability under this guarantee is restricted to Rs. (plus in- terest and commission charges, if any, not expected to exceed one per cent of tho guaranteed amount) and this guarantee shall remain hi force till the day* of (month), 19 Unless claims under this guarantee are 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 Govern- ment's rights under this guarantee shall be forfeited and we shall be relieved and dis- charged from all liability thereunder.

Dated, the • day of

For (Bank)

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

Name & Designation

Signature ,

•This date shall be arrived at by adding one month to the date by which all payments to the Suppliers are expected to be finalised.

NOTE-—The value of the stamped paper on which this guarantee is to be executed Is to be adjudicated by the Collector of Stamps.

ANNEXURE IV

Proforma

1. Name and full address of the importer/licensee on whose behalf the bank guarantee was furnished.

2. The import licence number and date and value. 3. Number, date and amount of the guarantee furnished. 4. Particulars of the Letter of Authority for opening Letter of Credit obtained from

tho Ministry of Finance. (a) Number and date of the Letter of Authority. (b) Amount of the Letter of Authority (in Danish K-oners).

flBMff I ^ J K C. 13 THS GAZETTE OF INDIA EXT^QRDIJ*AflY 187?

j. Particulars of Imports effected and rupee deposits made.

(a) Name of supplier(s)

(b) Amount in Danish Kroner actually paid to the supplier(a) mentioned at (a) above.

(c) Date of payment to the supplier by the Danmarks National Bank.

(d) Amount of rupee deposit:—

(i) Rupee equivalent of Danish Kroner amount paid to the supplier

@ 1 Danish Kroner—Rs.

(ii) Interest paid.

(iii) Period for which the interest has been calculated from

to

(iv) Total deposit made.

(v) Date and place of deposit

(vi) Number and date of the Treasury Challan (to be enclosed). If die Treasury Challan has already been sent, reference to the letter number and date with which it was sent may be quoted.

(vii) If the rupee deposit mentioned in (d) (iv) above was made by means of Demand Draft, the number, date, and amount of the draft and par- ticulars of your letter with which it was sent to the Accountant General, Central Revenues, to be indicated.

6. Amount utilised and balance unutilised On Danish Kroner) against each Letter/ of Authority:—

7 A certificate that the balance indicated in 6 above, has not been utilised and no shipment has been made thereof, and the same may be treated as lapsed.

(Authorised signatures)

ANNEXURE V

Statement Showing Quarterly Report on utilisation under Fifth Danish Loan

1. Name of Importer.

2. No. and date of Import Licence.

3. Value of Import Licence.

4. Letter of Authority No. and date.

5. Amount of Letter of Authority,

6. Date of validity of Letter of Authority.

7. Value of orders placed.

8. Amount utilised during the quarter D. Kr.

9. Total amount utilised D. Kr.

10. Total Amount deposited into Government Account Rs.

11. Payment expected to be made during the subsequent quarters

(give figures—Quarter-wise).

12. Surrenders, if any.

B. D. KUMAR,

Chief Controller of Imports and Exports.

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[PART I—Sac. 1] THE GAZETTE OF INDIA im&AORDINARY I*8r

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[PART I—SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 1883

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'K1WT7ID BY THE MANA01R, GOVERNMENT Or INDIA PRESS, MINTO ROAD, NltW

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