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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 95] NEW DELHI, THURSDAY, MAY 22, 1975/JYAISTHA 1, 1897

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 22nd May 1975

SUBJECT.—Terms and conditions governing the issuance of import licences financed

under International Development Association Credit No. 528-IN (Industrial

Imports)-

No. 37-ITC(PN)/75.—The terms and conditions governing the issuance of import licences financed under the IDA Credit No. 528-IN, dated the 14th February, 1975 as amended on 7th March, 1975 (Tenth Industrial Imports Project) as given in Appendix to this Public Notice are notified for information.

APPENDIX

TERMS AND CONDITIONS GOVERNING THE ISSUANCE OF IMPORT LICENCES FINANCED UNDER INTERNATIONAL DEVELOPMENT ASSOCIATION CREDIT NO. 588-IN (TENTH INDUSTRIAL IMPORTS PROJECT)

I. The import licence is issued with a initial validity period of Twelve months. II. The goods imported must fall under the approved list of goods as per Annexure I. III. The goods must be purchased from member countries of the World Bank or Switzerland (a list of member countries is attached at Annexure II) but excluding South

(429)

Africa and South West Africa. Shipments must he arranged in vessels registered in countries, who are members of World Dank or in Indian Flag Vessels (with Ocean freight payable in Rupees in India on India Flap: Shipments) or in the vessels of th" Members Lines of India-Pakistan Conference (list of Member Lines is attached at Annexure V7I) re

TV. Ordering.—.(a) Firm orders must be placed on the suppliers within four months pom the date of issue of the import licence. If orders cannot be placed within four months for valid reasons, the licence should be submitted to the licensing authorities during the 5th month giving the reasons for the delay in placing orders and indicating the date by which orders would be placed and extension in the period for ordering is necessary. Such requests will be considered on merits by the CCT&E in consultation with the Ministry of Finance (Department of Economic Affairs) where necessary.

(b) A statement of orders in the form attached, vide Annexurc III, should be sent on the first of each month to (i) the Department of Economic Affairs, Economic Aid Accounts Branch, Ministry of Finance, UCO Bank Building, No. 10, Parliament Street, New Delhi (Attention Shri S'. Subramanian, Senior Accounts Officer), (ii) Additional' Economic Adviser, Ministry of Industrial Development (Attention Shri N. K, Das) and (iii) to tho concerned Industrial Adviser, in the Directorate General of Technical Development, New Delhi. Such reports should include particulars of all eligible licences and imports.

IMPORTANT NOTE.—It is necessary that ordering is completed within 4 months or the extended period allowed by the licensing authority in any case. The authorised dealers in foreign exchange will not permit establishment of letters of credits, or remittance for payment to foreign suppliers unless this requirement is complied with.

V. Payment against f/L by remittance through Banks.—(1) Payment of the cost of Koods acquired should be made, according to procedure described in sub-pan (6) below. Contracts concluded with foreign suppliers, should specify the mode of payment and also tho documents roquired vide para VI below.

(2) Payment for the cost of goods and services acquired shall be made in the currency of country of origin of goods and services. To cite an example, if the. goods are produced or originated in country A but are shipped from a different country B or the supplier is located in country B or another country C, the payment has to be made in the currency of country A and not repeat not that of country B or country C.

(3) Payment of Ocean, freight charges on India Flag Vessels shipments should be made in Rupees in India.

(4) Payment of India Agent's commission should be made in Indian Rupees to the agonts in India. Such payment* will, however, form part of the licence value and Will, therefore, be charged to the licence,

(5) Expenditure incurred in Indian currency for goods procured in (including services- supplied from) India and also from countries who arc not members of World Bank (.vide Aimexure II) is not reimbursable under the l.D.A. Credit arrangement. Ocean freight charges on vessel belonging to non-member countries of World Bank is also ineligible for financing under l.D.A. Credit arrangement unless the vessel belongs to a Member Liue of India-Pakistan Conference in which case the Ocean freight is re-imburscable by l.D.A. Hence importers should ensure that shipment is arranged only in vessels belonging to member countries of the World Bank, or in the vessels of Member Lines of India-Pakistan Conference. Foreign exchange dealers should also ensure that payment in foreign exchange is not made towards Ocean freight for shipment made in the vessels of non-member countries of World Bank except when tho same belongs to Member Lines of India-Pakistan Conference.

(6) Detailed procedure for payment.—Payments against the import licence, may be made by the importers through authorised dealers in foreign exchange in India by remittance in the normal manner. The importers shall indicate in their contracts with suppliers that certain documents required by the l.D.A. have to be submitted, by the suppliers to the importers. These documents are described in para (VI) below and in Annexure V and should be sent alongwith a proforma as indicated m Annexurc TV- Two sets of documents arc required, one for payment purposes and the _ other lor purposes of obtaining reimbursement from T.DA. The authorised dealers in foreign exchange while opening letter of credit against such import licence would also call for the document, from the supplier. When bills drawn under the letters of credit are paid

[PART I - ~ SE C. J] THE GAZETTE OF INDIA EX I R A O ^ N A RY • —rrri. -__ — . „___

43 *

exchange direct to the Mm ^ o f ' f ^e p E T ^t V ^ ,d c a l c ni m t o r e^ U.C.O Bank Building, Parliament SUeef N™ "n^, 7' A lU A c w u n L* "r^, •Senior Accounts Officer) wrthThe oartkiul ™ nf I r ^Attention 3. suwauumiun,

w Fw A/U p a y m c l lU H¹U⁸,t be completed wirtiw one month after expiry of licence

facilities, which will be permitted subject to the following conditions: —

(a) The credit facility should not extend beyond 90 days from the date of

shipments;

(b) No interest charges are payable by the importers for the credit extended,

directly or indirectly; and

(c) All payments are completed within one month after expiry of licence.

The above credit facility is not automatic. Permission of Ministry of Finance is necessary for the same.

VI. Documentation.—After payments, trc importers must arrange to furnish imme- diately the various prescribed documents (Annexure V in complete s/nape) to the Ministry of l-mance, Department of Economic Affairs, Economic Aid Accounts Branch U.CO Bank Building, Parliament Street, New Delhi to enable them to claim reimbursement from I.D.A. As payments will usually be made through the importers Bank in India, arrangement should be made by the importers with their Bankers to send the document* direct to the Ministry of Finance daily 'after each foreign exchange remittance with the proforma, indicated in Annexure IV. The proforma with documents should in no case be delayed for more than a week. This will expedite the utilisation of I.D.A. Credit by the Government of India, This arrangement will, however, not absolve the importers! from the responsibility of submission of proper documents and the importers should obtain confirmation from their bvmkers that they have submitted the documents to the Ministry of Finance towards foreign exchange remittances made by them and indicate . that facts in the monthly reports of ordering and payments (vide Annexure III). The Ministry of Finance will approach the importers for relevant documents if and when necessary.

NOTE.—It should be noted very carefully that the documents for re-imburscment are to be forwarded by the Indian Banks immediately after payments, and under no circumstances, should any delay occur ,in transmitting these documents. The I.D.A. regulations require that 'applications for withdrawal should be made promptly. Therefore, I.D.A. can decline re-imburscments if claims for amounts are delayed. Hence it is very essential that the Ministry of Finance (Department of Economic Affairs, Economic Aid Accounts Branch), invariably received the documents within a week after e'ach foreign . , exchange payment. VII Maintenance of Books and Records.—The importers shall maintain books and records adequate to identify the goods acquired out of the proceeds of the credit to disclose file use thereof in the project and to record the progress of the project, bucn records and books shall be maintained for a period of five years •after the date ot acquisition of the goods. Importer shall enable the authorised representatives o! I DA to inspect the relevant records and documents related to the Project the goods acquired out of the proceeds of the credit and shall afford all reasonable opportunity and assistance to tneni tor such examination wnerc mcy propose to carry out sucn inspections.

VIII. End-Use of G W . — AH goods imported against the licence will be u a* exclusively for the purpose oi production for ihc domestic civilian market and for utpoU. IX Quarterly Report, on estimated payment.—1.DA. requires I^rterly reP^ta

February, 1975 isflucd under I.D.A, Credit should be included.

X. Notifying'supplier,—The importer should apprise the supplier of any special provision in the import licences which affect the suppliers in carrying out the transactions,

XI. Disputes.—It should be understood that Government of India will not undertake any responsibility for disputes, if any, that may arise between the importers and suppliers.

XIT. Future Instructions.—The importers shall promptly comply with any directions, instructions, or orders issued by the Government regarding any and all matters arising from or pertaining to the import licences and for meeting all obligations under .tho agreement.

XIII, Breach or Violation.—Any breach or violation of the conditions set forth in the above clauses will result in appropriate action under the Imports & Exports (Control) Act.

XIV. List of Annexures by Title:

Annexure I List of Goods. Annexure II List of World Bank Member countries. Anriexure III Monthly report on ordering land payments. Aunexure IV Proforma for sending documents. Annexure V Documents required after payment. Annexure VI Quarterly statement of estimated payments,

Annexure VII List of Member Lines of India-Pakistan Conference.

ANNEXURE I

List of Goods Raw and Semi-finished materials, components and spare parts and Miscellaneous items of manufacturing and construction equipment

(a) Agricultural

1. Tractors and Power Tillers.

2. Fertilisers.

3. Pesticides.

(b) Electrical

4. Motors, Transformers, Switchgears and Magnetic Steel Stampings, Cables and Wires (upto 66 K.V.).

5. power Generating Equipment and Spare Parts and Boilers.

6. Aluminium Smelting.

(c) Transport

7. Commercial Vehicles. 8. Automotive Ancillaries.

(d) Metal Working

9. Machine Cutting and Small Tools, Abrasives, Ball and Roller Bearings.

10. Castings and Forgings.

(e) Constructions

11. Heavy Construction Equipment and spare parts.

ANNEXURE II

Members of the I.B.R.D. and I.D.A.

(As of Juno 30, 1972)

Name of the Country

S.No.

Name at the Country

S.No.

1.   Afghanistan.                                  6.   Belgium.
2.   Algeria.                                      7.   Bolivia.
3.   Argentina.                                    8.   Botsawana.
4.   Australia.                                    9.   Brazil.
5.   Austria                                      10.   Burma.
5A.  Bahrain.                                           Burundi.
5B.  Bangladesh.                                  n.12. Cameroon.

    S. No.       Name  of  the  Country          S.No.        Name  of  the  Country
13.   Canada.                                     69.    Mali.
14,   Central  African  Republic.                 70.    Mauritania.
15.   Deleted.                                    71.    Mauritius.
16.   Chad.                                       72.    Mexico.
17.   Chile.                                      73.    Morocco.
18.    China,  Republic  of.                      74.    Nepal.
19.   Colombia.                                   75.    Netherlands.
20.   Congo,  People's  Rep.                      76.    New  Zealand.
21.   Costa  Rica.                                 77.   Nicaragua.
22.   Cyprus.                                      78.   Niger.
23.   Dahomey.                                    79.    Nigeria.
24.    Denmark,                                    80.   Norway.
25.    Dominican  Dep.                             81.  *Oman,
26.    Fouador.                                    82.   Pakistan.
27.   Egypt,  Arab  Rep. of-                       83.   Panama.
28.    El  Salvador.                               84.   Paraguay.
29.    Equatorial  Guinea.                         85.   Peru.
 30.   Ethiopia.                                   86.   Philippines.
 31.  *Fiii.                                       87.  * Portugal.
 32.   Finland.                                    87A.  Qatar.
 33.   France.                                     87B.  Romania.
 34.   Gabon.                                      88.   Rwanda.
 35.   Gambia, The.                                89.   South  Arabia.
 36.   Germany.                                    90.   Senegal.
 37.   Ghana.                                      91.   Sierra  Leone.
 38.   Greece.                                     92.  •Singapore.
 39.   Guatemala.                                  93.   Somalia.
 40.   Guinea.                                     94.   South  Africa.
 41.    Guyana,                                    95.    Spain,
 42.   Haiti.                                      95A.   Sri  Lanka.
 43.   Honduras.                                   96.   Sudan.
 44.   Iceland.                                    97.    Swaziland.
 45.   India.                                      98.    Sweden,
 46,   Indonesia,                                  99.    Syrian  Arab  Republic,
 47.    Iran.                                     100.   Tanzania.
 48.   Iraq.                                      101.    Thailand.
 49.   Ireland.                                    102.   Togo.
 50.    Israel.                                   103.   '"Trinidad  and  Tobago.
 51.   Italy.                                      104.   Tunisia.
 52.    Ivory  Coast.                              105.   Turkey.
 53.   •Jamaica.                                   106.   Uganda.
 54.    Japan.                                     106 A .  United  Arabs  Emirates
 55.    Jordan.                                    107.   U.K.
 56.    Kenya,                                     108.   U.S.A.
 57.   Khmer  Republic.                            109.   Upper  Volta.
 58.    Korea,  Republic  of.                      110.  *Uruguay.
 59.    Kuwait.                                    111.  "Vcnazuela.
  60.   Laos.                                      112.   Vietn'am.
  61.   LeWanon.                                   112A .  Western  Samoa.
  62.   Lesotho.                                   113.   Yemen  Arab Rep,
  63.   Liberia.                                   114.   Yemen,  Peoples  Dem.  Rep.
 64.    Libyan  Arab  Republic.                    115.   Yugoslavia.
  65,   Luxembourg.                                116.   Zaire.
  66    Malagasy  Republic.
                                                    117.   Zambia,
  67    Malawi.
  68    Malaysia.

*Not members of the T.D.A.

ANNEXURE III

Proforma Report—One for each import licence under I.D.A. Credit

Report as on 1st of each month

I. Import licence No., date and value

2. Ordering Position:

(a) Total value of orders placed so far (in Rs.) (b) Balance value of orders yet to bo placed (in Rs.)

(c) Phasing of balance orders:—Indicate when these would be completed and confirm that these would bo completed within four months from the date of Import licence.

3. Payment position :—

Amount

(a) Total value of payments made so far : - —— — _

Foreign in Rs, Currency.

(i) Payments made prior to 14trn

February, 1975.

(ii) Payments made on or after 14th

February, 1975.

14th February, 1975 to 30th

April, 1975.

May, 1975. June, 1975 July, 1975. August, 1975. September, 1975., October, 1975. November, 1975, etc.

(Please confirm after checking with Bank that documents therofor have been submitted to this Department by them in all cases).

(b) Balance value of payments yet to be made (in Rs,) (c) Phasing of balance payments :—

(i) During May, 1975..

(ii) During June, 1975,

(iii) During July, 1975. (iv) During August, 1975. (v) During September, 1975. (vi) During October, 19r75. (vii) During November, 1975. (viii) During December, 1'975.

(ix) During January, 1976 to March, 1976.

(Please confirm that payments will be completed by 31st May, 1976).

4. Remarks, if any, particularly regarding any special difficulty experienced in complete utilisation of licence i.e., payments by 31st May, 1976.

(Sd.) Authorised Representative

on behalf of importer.

ANNF.XURE IV

[Referred to in Paras V, V(6) and VI] Proforma for Sending Documents under the l.D.A. Credit {Tenth Industrial Imports Project)

Dl.tC Cf

Importlicerce No. and date

Applicable category of goods

SI. No.

Cvrrticyii which pa merit is msc'-c r.r.d the amount in forcigr currency.

foreign exchange remittance

by the Bank

i

2

4

5

3

ANNEXURE V

(Referred to in Paras V and VI)

Documents requited in connection with each application for reimbursement,

under I.D.A. Credit

(a) Supplier's invoice, describing the goods or services (Original or legible copy).

(b) B/idence of payment, in the form of—

(1) Receipted invoice or formal receipt of the foreign supplier; or

(2) Cancelled bank cheque or draft or photostatic copy thereof; or

(5) Commercial Bank's report of Payment T.D.A. Form 1-1 (copy attached) m'ay be used -when payment has been made under a commercial letter of credit; or

(4; Other evidence satisfactory to the I.D.A.

(c) E/idcnce of shipment, in the form of:

(1) A copy of ocean or airway bill of lading (this need not be a signed copy); or

(2) A sfatement of the supplier or forwarder that the goods have been shipped. This statement should include the approximate date of shipment, the method of transportation (i.e. air, rail or sea) and the destination of the ship/aircraft, the name and flag of the vessel or aircraft (if known) nnd amount of ocean/air freight should be given.

NOTE 1.-—If shipment has not been made at t'hc time of the application is submitted or if the application relates to a down or progress payment on a contract, evidence of shipment should be furnished to the I.D.A. as soon as possible after shipment. This evidence of shipment should be accompanied by a copy of the suppliers' final invoice In cases where the application relates to a down or progress payment,

NOTE 2.—When commercial letters of credit are used, no evidence of shipment is required if the Bank's report of payment indicates that documents evidencing shipment were produced to the commercial bank at the time payment was made; otherwise evidence of shipmont as described in (c)(l) or (2) above would be required.

NOTE 3.—Please note carefully that items (1) to (3) under (b) 'and (1) to (2) under (c) above are the various alternatives and what is needed is any one of these and not at all.

(d) If the withdrawal, is to reimburse the Borrower for a down or progress payment, U copy of the contract or purchase order is required, tt is of course only necessary to submit Miis document once. Tf payment has been made on a contract on the basis of work performed, in addition to a copy of t'ne contract, the Borrower should furnish an engineer's certificate or progress report showing that the payment was due.

(e) Information regarding applicable category of the list of goods as approved by the T.D.A. vide Annexure I.

NOTE 4.—Requirement at (e) above means that the importer himself or hfs bank should, while forwarding the documents to fhe Ministry of Finance (Department of Economic Affairs), indicate the applicable category of the approved list of goods under which the import h'as been made. This list of goods is indicated in Annexure I and the licence itself would indicate the applicable category in each case. Tf not, the description of the goods imported would enable the item being classified under one of the approved category of Roods. Tn any case, it is for the importer to furnish this information and h e or his bank must not require the supplier to indicate such information in his documents to he submitted to the nc.ROtralins bank under the Letter of Credit. The importers should, therefore, note carefully that no such requirement should be included in their orders or the Letters of Credit.

— — -— ^—

IDA F O R M —I ~ I.

Bank's Report of Psyment Serfol No.

(Name of Commercial Bank)

Date of payment: , Licence No,

. . •

To —

(Name of the Borrow er or Borrower's Representative )

(Address)

We report having paid the sum of

to

. under licence No. , .

(Name of supplier)

established by .—. .

.

(Name and address of buyer)

Our payment commission amount a to

,

.

Payment was effected against delivery of the documents as specified ir./and in accordance with the terms and condidtions of the letter of Credit mentioned above cvidertceir.g shipment of

(General description of the merchandise including the Quantity etc. )

per S.S. — or R.R. .

from

to

, (Point of shipment Destination)

oc storage or manufacture of the goods described at

The documents have been disposed of as follows :— Ocean documents have been forwarded to our above mentioned correspondent Bank. The rail-road bill of lading, warehouse receipt of certificate of manufacture have been

(Description made)

(Copy of Supplier's invoice h attached )

Very truly yours,

ANNETURE VI (Referred to in Para VT of licensing conditions) Dated

International Development Association Quarterly Report of Estimated Payments (Expressed in thousands of U.S. $) at the rate of exchange 1 $ = Rs. 7.279.

Cvmr.cy

Category of goods

Svrpiy-;rF ccuntry SI. No.

of payment

Import licence No. & Dftc

Total value of I/L

Value of I/L out- standing on I4-2-I975

6

7 i

4

2

3

5

Calendar Quarters Ending

1976 rrd befcrtf 30th

December

June

Beyond March June, 1976

March 1976

1975

September 1975

1975

11

12

10

8

9

NOTES:

1. The value of utilisation upto end of the quarter to which the report relates

should be actuals and for the balance estimated payments to be furnished.

2 Figures in Columns 8 (o 13 should indicate only the foreign currency payable to the foreign supplier (excluding agency commission etc. payable in Indian Rupees).

ANNEXURE VII

The particulars of the member lines, with their nationality of the India-Pakistan Conference (in U.K.-lndia/Pakistan East Bound Conference and Continent/India-Pakiatan East Bound Conference).

I. U.K./India-Pakistan East Bound Conference

1. Anchor Line Ltd. 2. British India Steam Navigation Co. Ltd. 3. Bibby Line Ltd. 4. Thomos & Jno. Brocklebank (owners of the Anchor)

Calcutta Service).

5. Brocklebank & Brocklebank's Well Lines. I U.K. 6. The City Line Ltd. 7. The Clan Line Steamers Lid. 8. Penisular and Oriental Steam Navigation Co. Ltd. 9. Hall Line Ltd.

10. Ellerman's Wilson Line Ltd.

11. India Steamship Co. Ltd. ~] 12. Scindia Steam Navigation Co. Ltd. Y India 13. The Shipping Corporation of IndiU Ltd. J

14. National Shipping Corporation of Karachi, \ 15. Pakistan Shipping Line Ltd. / Pakistan

16. Bangladesh Shipping Corporation. Bangladesh

II. Continent/Indta-Pakistan East Bound Conference

1. British India Steam Navigation Co. Ltd. ")

2. Brooklebank's Well Line. \ U.K. 3. The Clan Line Steamers Ltd. J

4. Compagnie Maritime Beige (Lloyd Royal) S.A. Belgium 5. A/S Dct Ostasiatiske Kompagni (East Asiatic Co. Ltd.)] Sweden 6. Duetsche Dampfschiffahts-Gesellschaft "HANSA".

of Germany) 7. Hall Line. U.K. 8. Koninklijke Nedlloyd N.V. Denmark France 9. Cie des Messageries Maritimes,

10. India Steamship Co. Ltd. 1 11. Scindia Steam Navigation Co. Ltd. y India 12. The Shipping Corporation of Indra Ltd. J

13. National Shipping Corporation of Karachi. 1 .. , 14. Pakistan Shipping Line Ltd. J Famstan

15. Peninsular and Oriental Steam Navigation Co. Ltd. U.K.

16 A/B Svenska Ostasiatiska Kempaniet.

Sweden (Swedish East Asia Co, Ltd.)

Norway 17. Wilh Wilhelmsen. 18. VEB Deutsche Seereederei, East Germany 19. Bcngladesh Shipping Corporation. Bangladesh

B. D. KUMAR,

Chief Controller of Imports & Exports.

PRINTED BY THE GENERAL MANAOEH, GOVERNMENT OF INDIA PRESS, MtNTO JROAD,

NEW DELHI AND PUBLISHES BY THE CONTROLLER OF PUBLICATIONS, DELHI, 197{(