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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 196] NEW DELHI, WEDNESDAY, OCTOBER 1, 1975/ASVINA 9, 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 1st October 1975

SUBJECT.—Terms and conditions applicable to import licences issued under Indo-

Swedish Development Co-operation Agreement, 1975.

No. 103-ITC(PN)/75.—The terms and conditions governing issuance of import licences under Indo-Swedish Development Co-operation Agreement, 1975, as given in Appendix to this Public Notice are notified for information.

APPENDIX

Swedish Assistance under the Indo-Swedish Development Co-operation Agreement, 1975, consists of two segments (i) general imports; and (ii) imports from Sweden. In the case of first segment, imports can be effected from anywhere in the world on the basis of competitive global tendering but in the case of the second segment, the imports can be effected services can be obtained only from Sweden i.e. the goods must be manufactured in Sweden.

IMPORT LICENCE

1. The import licence will be issued on CIF basis, with an initial validity period of four months for contracting and twelve months for completion of shipments as well as payments. All shipments must be completed within a month from the expiry of the licence.

(1291)

2. Each import licence will bear a superscription, ''Indo-Swedish Development Co-operation Agreement, 1975—General Imports" or, "Indo-Swedish Development Co-operation Agreement, 1975—Imports from Sweden" as the case may be. The suffixes in the licence code classification number will be "R/SW". These will also be repeated in the letter from the Chief Controller of Imports and Exports forwarding the import licence.

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 shall not be deemed to have been complied with

unless complete contract documents, as provided in para 21 below, are furnished within

the stipulated period of four months.

5. Where this stipulation is not complied with within four months, the Import licence will be deemed to have become invalid.

6. The import licence, may, however, be revalidated on an application by the party, alongwlth the reasons for not complying with the) requirement in time. The request for revalidation would be considered by the licensing authority on merits and the licence will be revalidated for contracting for a further period not exceeding two months. Any revalidation beyond the period will require the prior approval of the Department of Economic Affairs (WE-I Section).

CONTRACTING

7 A contract will normally comprise an Agreement signed by both the parties, viz^ the Indian importer and foreign supplier or it may comprise the order placed by the Indian importer and the letter of acceptance thereof in unequivocal terms by the foreign supplier.

8 A contract comprising a series of correspondence between the two parties frequently amending/revising the various provisions will not be generally accepted. In such cases it is necessary to prepare a final document including therein the term8 agreed to by botn the parties and signed as such.

9. Normally, one contract, on the basis of firm prices, has to be entered into with the foreign supplier for the whole amount of the licence. However, if for special reasons, conclusion of more than one contract becomes necessary, prior permission of the Department of Economic Affairs should be obtained, giving reasons for doinR so.

TERMS OF CONTRACT

General

10. The importers in the private Sector are required to place the °mrt™*" °J &* or C&F basis. They should clearly indicate FOB price, insurance charges and freight leparately.

Contract must be entered only on C&F basis, by a Government agency or a public

sector undertaking.

*££ KT4SU A 1 S .S SHAS& ftSWfcS

New Delhi giving reasons for doing so.

licence.

of the import licence.

Value Limits of Contracts

13. The value of each contract should not be less than for an amount equivalent to Rupees seventy-five thousand.

Origin of Goods

14. (i) In the case of first Segment, i.e., general imports segment, referred to in the preamble, imports can be made from any country without restriction and should as far as practicable, bo on the international competitive basis. The licensee should while, fcubmitting the contract documents, referred to in- para 21(iii) below, furnish a statement of the bids received and the reasons for selecting the particular supplier and goods.

(ii) Under the second segment i.e. imports from Sweden, referred to in Ihc preamble, the goods should be the goods manufactured in Sweden or the services to be rendered should be of; Swedish origin. A stipulation as to the Swedish manufacture of goods or Swedish origin of services shall be incorporated in the contract.

Shipments

15. The contract should spell out delivery/shipping schedules in specific terms indicating the month of eac'n such delivery/shipment, 'as closely as possible.

Any subsequent deviation from the shipping schedule should be promptly notified to the Ministry of Finance, Department of Economic Affairs, WE-I Section, North Block, New Delhi.

Payment Terms

.

16. The Swedish Credit does not provide for deferred payments. Full payment will therefore be made to the foreign supplier in cash against shipments as indicated in the following paragraphs. Advance Payments

17 An advance payment upto a maximum of 10 per cent of the FOB price of the supplies can be provided at the time of the contract coming into force. In the case of any deviation in this regard, prior approval of the Ministry of Finance, Department of Economic Affairs (WE-I Section) should be obtained.

Other Payments

18 The amount left ofter the above payment will be payable pro-rata according to the value of goods covered by each shipment, on the basis of the shipping schedule.

19 It should specifically be ensured that the terms of payment, e.g. amount payable on the contract becoming effective and that payable against shipm.-ms ojc. are set out in pr-cis- terms in the contract with details showing the schedule of deliveries/payments ' " ' etc. " Customary Guarantee

20 The importer may arrange and provide for in the agreement customary guarantee(s) which may be necessary for safeguarding his interest.

DETAILS OF CONTRACT DOCUMENTS REQUIRED TO BE SUBMITTED

21 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, Department of Economic Affairs (WE-T Section), North Block, New Delhi :—

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

"T"°o£S srs.-*r j - s an Ts&sszsstf&z

supplier of the order placed on him by the importer,

(iii) In the case of general imports segment, the statement mentioned in para 14© above.

(iv) Other particulars stipulated in Annexure I, in duplicate.

The contract will be processed only after all these documents have been furnished

by the importer.

LETTER OF AUTHORITY

22. If the contract is complex, th; documents etc. are in order, the import licence is valid for contracting and is considered eligible for financing under the Indo-Swedish Development Co-operation Agreement, 1975, Ministry of Finance will issue d letter of authority as in Annexure II.

METHOD OF PAYMENTS

23. (i) Payments to the foreign suppliers are arranged through normal banking channels by establishing a letter of Cicdit or on collection basis.

(ii) Tho Indian importer will establish a letter of credit only after tho letter of authority referred to in the preceding paragraph has been issued by the Ministry of Finance and such letter of credit will strictly be in accordance with such letter of authority.

(iii) The authorised dealer in foreign exchange (India bankers) will not provide facilities for establishing a letter of credit to any Indian importer¹ unless a letter of authority in this regard has been received by it direct from the Ministry of Finance ana the Indian banker will provide such facilities or allow remittances only in accordance with the instructions contained in such a letter of authority.

24 It will be the responsibility of the foreign banker with whom the letter of credit has been established to forward to the Controller of Aid Accounts and Audit, Muustry of Finance UCO Bank Building, Parliament Street, New. Delhi, one set of non-negotiable invoices/shipping documents 'at *he same time as the foreign banker forwards such sets oi X r a S a S to tf£ Indian banker which opened tho totter of credit. It " n ^ ' * ^ * £5 Indian Banker to include a provision to this effect in the letter of credit to be "*"MMhed by him. The fact that one set of non-negotiabk sh.pping document!.has been so forwarded Sdl be noted down by rV.e foreign bankers m the covering letter to the 'Indian banker The latter (Indian banker) will check this point in particular before taking further action on the documenti.

25 (1) The Indian importer will, at the time of arranging payments, fill in an

the credit and segment under which the import licence was issued.

(ii) Both the Indian importer and Indian banker will ensure that all the requisite intomationiailven correctly?fully and in specific terms against the relevant columns.

(iii) Form 'A' will further bear the signature of the authorised officer of the Indian

banker and stamped with its official seal

NOTE-These arrangements do not absolve (he licensee of his r ef ° " ^f ^; f ™ '^ that all forms "A" aie despatched promptly by his bank to the Ministry of Finance.

Refunds

t r ,, , - ,.„..;, d K i]-- TnJ'.n 'mpvters 'iran the foiekn supplier or

form yz-cri in Annexure TTI

Kepo'tw nf Actual PcvmraU. ch ^ ihr M ,-n Imp" ten

contract +"i be-A- b ^^ -'" ' " , VV ,U 1( of Econom.c Affairs VCO Bank ^S £ r S n ' sS SJrtV* V!th"n on, v,eek OC the actral pavm^ts h.vm, been made.

— — — —•

" A p p l i c a t i on foTm prescribed by the Reserve Bank of India for remittance..

MISCELLANEOUS

28. Tho goods imported under the licence should be used with, due diligence and efficiency. For a. minimum period of four years from iVie date of delivery of the goods imported under the licence, the impoitin- shall (i) ma nuin till t'ne relevant recrords neces- sary to identify such goods and their use, (ii) furnished or cmse to be furnished to the Gov- ernment of Tndia such information as may be requested, concerning the expenditure of the proceeds of the Credit and the goods and services acquiied out of such proceeds, and (iii) enable representatives at t'ne Government of India and the Swedish International Development Authority to study the use of such goods and services if they so request.

29. The Government of India will not undertake 'any icspcmsibility for disputes, if any, which may arise between the Indian imports and the foreign supplier.

30. The Indian importer shall promptly comply with any directions, instructions or orders issued by the Government from time to time regarding any and all matters 'arising from or pertaining to the import licence and for meeting alf obligations under the credit agreement with, the Swedish Authorities.

31. Any break or violation of any of the condition prescribed 'nerein will result in appropriate action under the Imports and Exports (Control Act, 1947), and orders issued thereunder.

ANNEXURC I

[In duplicate!

[P'aifi 2I(iv")l

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

SUBJECT.—Indo-Swedish Development Cooperation Agreement 1975—Import under

the

Sir,

In connection with the import of

under

(short description of the goods or services)

the above credit, we furnish the following particulars :—

(a) Name and Address of importer;

(b) Import Licence:

(i) Number

(ii) Date

(iii) Amount

(iv) Valid upto

(a) for contracting

(b) for shipment

(c) Name and Address of the foreign supplier;

(d) Date of the contract;

OR

Date of Suppliers final letter of acceptance

of the order.

(e) Short description of the goods

to be imported:

In foreign currency In equivalent Indian Rupees (f) Value of the contract: FOB price:

Freight: Insurance:

TOTAL:

Date Value of shipment in

foreign currency.

(g) The different dates on which the equip- ment will be shipped or services perform- ed, the value of each shipment, or ser- vice performed, based on the delivery schedules aa stipulated in the contract:

Date Amount in foreign

currency.

contract will fall due.

(() in respect of advance payment

(ii) Other payments.

(i) Name and full address of I'rie dealer/

tank authorised in forolgfi exchange through whom arrangements for opening U letter of credit will be made:

(i) Name and full address of the foreign

banker with whom the letter of credit will be establirfied:

2 Four certified copies of the contract or each of fne order and the letter of w " P^ and of xhe amendment (If any), and two photostat copies of the import licence are enclosed.

3 You are requested to get the contract approved for financing under the I ^ ^* Development Cooperation Agreement, 1975 and issue authorisation tor payments to the •uppHera, through their bankers, mentioned above. ^^ f a i l h f l ] U yi

Licensee.

ANNEXLTRE II

(Para 22)

No, F.

GOVERNMENT OF INDIA.

MINISTRY OF FINANCE

(Department of Economic Affairs)

l.ctt;r of Authority No.

To

(Indian Banker) SUB^CT-Contract entered under JnJo-SM Development Cooperation ARree- ment, 197'5—General Imports,/Swedish Import Segment.

Dear Sirs,

h a vo e n t e rcd

M e S S r S-

(Indian'Imports)

into "a contract with M/s (foreign "supplier")

lor the amount of

) CIF/C&F under th; Incio-Swedish Development Corporation for the supply of ( (in words)

Agreement, 1975, 'against Licence No dated issued thereunder for the value of Rs. ( ) A copy of the contract is enclosed.

(in figures) (in words)

2. Out of the above amount of an amount of

is to be paid as Indian, Agent's commission in Indian currency. The sum to be paid to the supplier in foreign currency which will be financed out of the Swedish Credit will therefore amount to

3. You are authorised to open a letter of credit in favour of M/s

through their banters, vu. M/s

(Foreign banker)

(Foreign supplier)

within a period of thirty days from date of this letter, under intimation to ftie Controller of Aid Accounts & Audit, UCO Bank Building, 10, Parliament Street, New Delhi,

4. Before opening the Letter of Credit, it may please be ensured that the Indian impor- ter is in possession of a valid import licence.

5. In terms of para 10 Section VII of the Exchange Control Manual, you are required, to ensure that the date of the expiry of the Letter of Credit id not later than forty-five (45) d'ays after the final date for shipment as stated in the relative import licence.

6. The Letter of Credit will also provide that M/s

(foreign banker)

•will forward directly to the Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, 10, Parliament Street, New Delhi; one set of non-negotiable shipping document as each payment is made.

7. Receipt of this letter may please be acknowledged,

¹

Yours faithfully,

Under Secretary to the Govt. of India.

1. Copy with a copy of the contract, forwarded to:—

Reserve Bank of India, Exchange Control Department

,

(Name of place)

1. Copy also forwarded for information:—

<1)

(Indian importer)

•with reference to their letter No Dt

,.

(2)

(foreign supplier)

(3)

(Foreign bank)

It is r-quested that on each pavment. one ^t of shipping and other documents inon- negotiublc) alongwith payment advice may be forwarded direct to the Controller of Aid Accounts & Audit, Ministry of Financ:. Department of Economic Affairs, TTCO Baiiic Building. 10, Parliament Street, New Delhi (India).

(4) Controller of Aid Accounts, & Audit with a copy of th" contract und Wat of the import licence.

Under Secretary to the Govt. of Tndh.

ANNbXURE HI

(Para 26)

Report showing details of refunds received from foreign suppliers/shippers/insurers

towards settlement of claims for short landings, damages, etc, in respect of imports

1. Name of the Indian importer.

2. No. & date of import licence.

3. Value of the import licence.

4. No. & date of Lettor of Authority.

5. Amount of refund received,

6. Nature and refund (giv; brief details)

7. Reference to the relative Forms 'A' under which payment was made initially to the foreign suppliers (indicate name of t'nc Indian banker and reference to their letter No. & dato, forwarding form 'A' to Ministry of Finance).

8. Whether or not refunds received 'are to be utilised for replacement, of goods; if not, confirm that amount has been actually received by inward remittance of foreign exch'ange and encashed into rupees.

9. Any other necessary particulars.

Signature of the Authorised

Officer of the importing firm.

To

Thi Controller of Aid Accounts & Audit, Ministry of.Finance, (Department of Economic Affairs), UCO Bank Building, 10, Parliament Street, New Delhi.

B. D. KUMAR,

Chief Controller of Imports and Exports.

PIUNII'D BY THE GENEHAL MANAGEh, GOVERNMi \r OV INUIA Pi