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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 230] NEW DELHI, WEDNESDAY, NOVEMBER 26, 1975/AGRAHAYANA 5, 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 26th November, 1975

SUBJECT —Licensing conditions for the U.K./India Sectoral Grants, 1975 dated

27-6-1975.

No. 120-ITC(PN)/75.—The terms and conditions governing the issuance of import licences under U.K./India Sectoral Grant, 1975, as given in Appendix to this Public Notice, are notified, for information.

APPENDIX

Licensing conditions for the UK/India Sectoral Grant, 1975, dated the 27th

Juno, 1975

I, GENERAL

1 The import licence will bear the superscription "UK/India Sectoral Grant 1975". In addition to the licence number and the licence code with "R/KSG" or "S/KSG", as suffixes, it will bear the allocation number Known as the Identification Suffix the symbol "SEC" indicating the Sectoral Grant; followed by a letter "A" which stands for the Power Sector for which the Grant Is intended, followed by a number indicating the year in which the allocation is

(1499 )

made, and followed by an allocation number;—for example

SEC/A/72/14(GOI)

i.e. Sectoral Grant/Power/Year/Allocation number.

(b) In the case of allocations made with the prior approval of the British Government, the symbol "(GOI)" will not appear in the identification suffix, es is evident from the following example:

"SEC/A/72/14."

(c) One allocation—Multiple, licences.—When there is more than one import licence against an allocation, the licensing authorities will ensme, at the time of issue of the import licence that each licence pertaining to an allocation, will bear a further identification mark, for example:

(1) SEC/A/72/14 (GOI)/I (first licence)

(ii) SEC/A/72/14 (GOI)/2 (second licence).

i.e. Sectoral Grant//Power/Year/Allocation Number/Serial Number of licence.

(d) Owe licence—Multiple contracts.—When there is more than one pur- chase order/contract against an import licence, it is the responsibility of the licensee to ensure that each purchase order/contract under that import licence is given a further identification mark i.e. (1), (2), etc, in brackets after the identification mark for the licence.

for example: for contracts against the first SEC/A/72/14 (GOI) / H I) import licence issued against SEC/A/72/14 (GOI) /I (2) the allocation.

i.e. Sectoral Grant/Power/Year/Allocation number/serial number of import licence (serial number of the Purchase order). Similarly for the contracts against the second Import licence issued against an allocation, it will be—

SEC/A/72/14 (GOI) /2(1) SEC/A/72/14 (GOI) /2 (2)

NOTE.—The identification suffixes indicated above or anywhere in these conditions are only illustrative to enable the licensing authority and the licensee to understand the procedure and are not to be used. The actual identification suffix will be indicated by the Ministry of Fin- ance, Department of Economic Affairs, in respect of each and every allocation tobe inscribed by the licensing authority on the omport licence at the time of its issue.

2. Validity period of licence.—The import licence will be issued on CIF basis with an initial validity period of 4 months for contracting and 12 months for completing the uhipments. Where however the deliveries are expected to mate- rialise over a longer period the initial validity of the licence could be 18 months.

Within a fortnight of the receipt of the import licence, the importer should furnish to the Ministry of Finance. Depaitment of Economic Affairs (WE II Section), New Delhi, a photo-stat copy of the import licence. A copy of this should also be sent to the Controller of Aid Accounts and Audit (CAA&A), Ministry of Finance, Department of Economic Affairs, UCO Bank Building Parliament Street, New Delhi.

3. Ordering—Firm orders on CIF or C&F basis must be placed on the UK suppliers within a period of four (4) months from the date of issue of the import licence. Firm orders means purchase orders placed bv the Indian licensee on the U.K. supplier duly supported by confirmation from the latter or purchase contract duly uigned toy both the Indian importer and U.K. suppliers. The prices should generally be firm for the duration of the contract.

Whenever insurance is taken out on an Indian Company, the premium should be paid in India in Indian Rupees.

4. Extensions in ordering' period.—If firm orders cannot be placed within the prescribed period of 4 months, the import licence should be submitted t" the h'cence issuing authority immediately, indicating reasons for delay in

placement of firm orders and seeking extension in the period of ordering as considered necessary. Such requests wiJi be considered by the licensing authorities who may grant extension upto a maximum period of two months. If, however, extension is sought for a period exceeding 6 months commencing from the date of issue oi the import licence, such proposals will invariably be referred by the licensing authorities to the Department of Economic Aft'aira, (WE II Section) Ministry oi Finance, North Block, New Delhi, who will com- municate the orders.

5. Mode of payment.—For the purpose of payments under UK/India Sectoral Grant 1075, the imports have been divided in the following two categories:

(i) (a) Items which are financed from the working capital of first users e.K. materials components, spares and other consumable stores acquired other than for the purpose of increasing production capacity of the first user: [First user is the firm or organisation (other than trading organisations) which first acquires the goods and services to be provided from out of the Grant. The firm may for instance, be a manufacturer of plant equipment and components for the electricity supply industry or an enterprise of the electricity supply industry itself].

(b) Items which are additions to a first user's fixed capital e.g. plant or other goods and services acquired for the purpose of increasing the production capacity of a first user, costing less than £,500,000 in foreign exchange,

(c) All types of itcms required by the ultimate users like Electricity

Boards.

(ii) Items which are additions to a first users' fixed capital, involving sterling expenditure of £.500,000 or above.

Payments to the suppliers lor items covered under para (1) (a), (b) & (c> can be arranged through normal banking channel by establishing letters of credit, but a special authorisation for doing so should be obtained from the Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, Parliament Street, New Delhi, In the manner detailed in Section III (A) below.

For items covered under item (II) ti'iovc prior approval of the Government of India and the Government of the UK. is necessary and the procedure detailed in Section III(B) should be followed.

It should be noted that unless ordering is complete within the initial period of four months or the extended period, and the special authorisation (as indi- cated in the above paragraph¹) is obtained the authorised dealers in foreign exchange will not permit establishment of letters of credit.

6. Indian Agent's Commission.—Any payment towards the Indian Agents' Commission should be made in Indian rupees to the Agent in India. Such payments will however, form port of the import licence and will, therefore, be charged to it.

7. Orders should be placed on cush basis and all the payments must be com- pleted within the validity period of the import licence. Individual payments must be arranged on shipment of goods. No credit facility of any kind will be allowed.

It. SPECIAL POINTS TO BE INCORPORATED IN THE ORDERS/CONTRACTS OR OTHERWISE KEPT IN VIEW

8. While placing orders/contracts which must be placed only on the suppliers In the United Kingdom (which expression In this connection, includes the Channel Islands

9. Non-UK content criteria.—(a) The import licence will be valid only for goods and/or materials procured and produced or manufactured in the United Kingdom.

(b) The Indian Importer is advised in his own interest that hie should ascertain *om the UK suppliers before hand whether the proposed imports contain any non-UK element, and If so, the percentage thereof. When on such an enquiry it ts revealed that thei goods proposed to be imported have the non-UK element, the matter must be brought to the notice of the Ministry of Finance, Department of Economic Affairs (WE H Section! New Delhi for confirmation whether the importer should proceed with the nnalisation of his order/contract with the prospective UK supplier. In exceptional cases, a non-UK element upto a limit of 20 per cent of the FOB value of the contract may be accepted, with the prior permission of the Ministry of Finance, Department of Economic Affairs.

10. The documentation requirements mentioned in Section III and V below and the payment procedure laid down in Section IV below should be kept in view an

1U. NOTIFICATION OF CONTRACTS, CONTRACT ACCEPTANCE AND AMENDMENTS THERETO

(A)—In respect of Imports covered by Pa^a 5(1) above

11. Within a fortnight of placing of orders, the licensee should forward three copies of the contract or notification of contract (In. the form attached as Annexure I) accompanied by two copies of the contract certificate [In the form attached as An- nexure II or Annexure IIB] (as is appropriate) duly signed by the UK supplier. to Controller oJ AM Accounts & Audit In the Ministry of Finance, Department or Economic Affairs, N''w Delhi. A copy of the notification! of contract (Annexure I) may also be endorsed to Shri C. L, Grover, Deputy Director, Ministry ol Finance. Department of Economic Affairs, New Delhi.

12. While forwarding the above documents to the CAA&A New Delhi (as stated in para 11 above), it must be ensured by the licensee that complete number and date of the import licence and the title of the Grant (UK/India Sectoral Grant 1975) fire clearly noted on the documents. The licensee must also ensure that the Identification Suffix of the import licence has been indicated on all the documents viz. the forwarding letter; the contract; the contract notification; tho contract certificate, etc. hJltiT^iZ¥' i?r

(I) First Import Licence— SEC/A/75/12(GOI)/l

First contract under it. SEC/A/75/12(GOI)/l (I) Second contract under it SEC/A/75/12(GOI)/l(2) and so on-

(ii) Second Import Licence— SEC/A/75/12(GOI)/l

First contract under it. SEC/A/75/12(GOI)/l(l) Second contract under it. SEC/A/75/12(GOI)/2(2) and so on

The licensee, while forwarding- the contract documents to the CAA&A, New Delhi, must give the relevant details of the number of contracts placed under the relevant import licence. The importer will be solely responsible for the accuracy of these details.

13. If at any time, a contract is amended or if liability thereunder Is to be incurred for a greater or lesser amount than the amount specified in the contract certificate, the licensee should within a fortnight of the date of the amendment of the contract, forward the supplementary or revised documents including copies of amendments to contracts and the revised contract certificate to? CAA&A in order to enable him to, notify the same to the U.K. Govt.

14. If, the contract is with tho Indian Agent of the UK supplier, it should indicate the name of the UK supnller to whom payment is to be- made for the sterling portion of the contract which alone- will qualify for payment under the Grant. Copies of such contracts (of contracts placed by Indian Apent with the UK supplier, If there are such separate contracts) should be sent as prescribed above.

(B)—In respect of Imports covered by para 5(11) above.

15. Within a fortnight of placement of the contract, the licensee should forward lour copies of the contract or notification of contract (in the form attached as

Annexure I) accompanied by five copies of the contract certificate [in the form attached as Annexure II or Annexure II(B)] (as may be appropriate) duly signed toy the UK supplier, to CAA&A, New Delhi. A copy of Annexure I should also b" endorsed to Shri C. L. Grover, Deputy Director, Ministry of Finance, Department of Economic Affairs, New Delhi.

NOTE.—As no L/C can be established or payments made to the suppliers unless the contract is duly proved by the UK Government, it is imperative tor the licensee to ensure that copies of contract/notifica- tion of contract along with contract certificate, duly signed to the UK supplier are forwarded to CCA & A at the earliest,

16. While forwarding the above documents (para 15 above), it must be ensured by the licensee thut the number and date of the import licence, the title of the Orant are clearly noted on the documents. The licensee must also give the identi- fication suffix in each contract against the import licence (please see illustration under para 12 above).

17. The CAA&A will arrange through the Chief Accounts Officer, High Com- mission of India, London (CAO, London) to file a set of the documents to the U.K. Government for obtaining the;r approval and acceptance of the payments under the contract beinw made out of the U.K. Grant, As soon as possible, after the decision of the U.K. Government is known, the CAO, London will inform the UK supplier as also the licensee direct, under advice to the Ministry of Finance (CAA&A).

18. If, at the time, a contract (being a contract in respect 01 which acceptance of the UK Government has been obtained or is pending) is amended, or if liability is to be incurred thereunder for a greater/lesser amount than the amount specified In the contract certificate, the licensee Should forward the supplementary or revised documents, copies of amendments to the contract and the revised con- tract certificate to CAA&A, in order to enable him to notify the same to the UK Government for obtaining their acceptance. As soon as acceptance of the amendment to the contract is received from the UK Government the CAO, London will inform the licensee and the Ministry of Finance (CAA&A) in the same manner as for the original contract.

19. If the contract is with the Indian Agent of the UK supplier, para 14 above- should also be complied with. IV. PAYMENT TO THE UK SUPPLIERS—LETTER OF CREDIT PROCEDURE. 20. (a) The licensee should, while forwarding the documents [fide Section III (A) "I. or after the receipt of intimation regarding approval of the contract by the UK Government (vide para 17), apply to CAA&A, New Delhi for a letter of authorisation to any authorised bank dealing in foreign exchange for opening a letter of credit in favour of the UK supplier with one of the correspondent banks in the U.K. The request for the letter of authorisation should be in the form set out at Annexure III, accompanied by a photostat copy of the import licence for verification of the exchange rate.

(b) In the case of contracts covered by Section III(B) the importer should also enclose the Bank Guarantee (in the form given in Annexure IV) dbtained from the authorised dealer in foreign exchange. The Bank Guarantee should be for an amount representing the rupee equivalent of the sterling amount for which the Letter of Authority/Letter of Credit is required to be issued plus interest and other charges as mentioned in Annexure IV, The rate of conver- sion shall be at the exchange rate notified by the Department of Revenue and Insurance from time to time.

NOTE.—No Bank Guarantee is required from public sector projects, In such cases the letter of credit will be opened through any branch of the State Bank of India (including its subsidiaries) or any Branch of any of the Nationalised Banks.

21. If the application is found to "be in order, the CAA&A in the Miniatrv ot Finance, Department of Economic Affairs. New Delhi will issue a letter of autho- risation for the requisite amount to the Indian Exchange Bank concerned. In either of the cases whether falling under section HI(A) and III(B) the letter of Authorisation will refer to the identification suffix of the contract/purchase nrder, which should figure iri the letter of credit to foe opened and on all the documents to be furnished under the letter of credit In the case of contracts

covered by Section III(B) above, the Contract Approval number of the UK Government will also be incorporated In the Letter of Authority and Letter of Credit. The CAA&A will also advise the UK Bank and the CAO, London suitably about the Letter of Authority issued. The advise to the UK Bank will, however, be sent to the Indian Exchange Bank concerned, along with a copy of the letter of authorisation, who would in turn, transmit it to the UK Bank while opening the letter of credit.

22, The letter of credit should be opened within a period of one month from the date of Issue of the letter of authorisation, failing which the authorisation will lapse,

23. The letter of credit should detail the conditions to which the licence is suibject; should provide for payment to the UK supplier on submission of all the documents detailed in Section V below; should contain adequate instructions regarding the despatch of documents after payment and should be opened sub- ject to the condition that the Corresponding Bank in U.K. would, after makirijj payments to the beneficiaries initially out of their own funds, obtain reimburse- ment from the concerned Bank in India [in case covered by Section III(A)] or from the State Bank of India, London through the CAO, London [m case covered by Section IIKB)]. The Indian Exchange Bank's instructions regarding the opening of letter of credit must accord completely with the authorisation issued by the Ministry of Finance. There should be no discrepancies in any respect. The- letterl of credit should contain the superscription "UK/India Sectoral Grant 1975", the Import Licence No. & date, the Identification gufflx and where neces- sary the UK Govt.'s contract approval number.

24, While opening Letter of Credit the Authorised Exchange Bank in India should, on behalf of the importer, make care to incorporate necessary conditions In the letter of credit and ensure that the documentation requirements are noted and complied with by the UK supplier.

25. If a letter of authorisation already issued is to be amended on account of enhancement in the import licence value, the request of the importer should bo accompanied by the Import licence or photostat copy thereof, showing the ex- change rate applicable for the amount of increase in import licence value.

V. DOCUMENTATIONS

20. The importer is responsible to see that the UK supplier completes and •ubmits the documents detailed below t0 the UK Bank at the time of claiming payment for the goods supplied:

(i) The original invoice, with four photo copies or copies by any othep process. The invoice should show the name and address of the importer, quantity and detailed description of each item supplied the basis of delivery (C&F or CIF) and the sterling cost of any incidental services including delivery services or marine or trans- portation insurance.

(ii) One copy (or photostat) of ocean of charter Bill of Lading or airway- Bill or parcel post receipt. (The Bill of lading should either indU cate or be accompanied ft>v the carriers statement of charges in whatever currency it is paid).

(lii) Four copies of the payment certificate In the form #ivcn as Annexure V [not required in respect of contracts for which contract certifi- cate (chemicals) in the form given as Annexure IKB^ has been provided]. For this purpose five blank forms of the payment certificate in the prescribed form should be attached to the letter of credit for completion by the supplier at the time of obtaining payment,

(iv) Three copies of the contract certificate prescribed in Annexure II or Annexure II(B).

Each of the above documents must show the grant title, the Identification suffix, the details of import licence, and the particulars of the letter of credit autho- risation issued by the Ministry of Finance. (The Bill of lading may not carry the details of import licence, if it is not found possible t0 mention these details by the clearing agents).

27 After the payment ia made to the UK supplier, the UK correspondent Bank will send by fast air mail the original negotiable set of documents to the Indian Bank concerned.

28. (a) For cases, falling under Section III (A), the Indian Bank will re- imburse the UK Bank by remittance, the payments made by it to the UK sup- pliers akmi? with Vf bank charges. The recovery of corresponding rupee equi- valent by the Indian Dank from the importer for such foreign exchange remit- tances will be as per the arrangements agreed to between them. The UK Bank should alt,o send a non-negotiable copy of the completed payment certificate to CAA&A. New Delhi.

For cases, falling under Section III(B), the Indian Bank, would on receipt of documents, remit the Bank charges to the UK Bank and recover the same from the importer.

(b) The UK Bank will, in cases covered under Section III(B) simultaneously claim reimbursement from the CAO London and for this purpose will submit all the documents. The CAO London will arrange payments fn the UK Bank through the State Bank of India, London.

VI. INDIAN BANK'S RESPONSIBILITY TO ENABLE THE GOVERNMENT OF INDIA TO OBTAIN REIMBURSEMENT UNDER THE U K GRANT/FOR RUPEE DEPOSITS

(A)—In. cases coming under Section III(A)

29. After reimbursing the UK Bank of the sterling payments made by it to the UK suppliers along with the bank charges [see para 28 (a)] the Indian Bank should, within 10 days, send the necessary documents to CAA&A, New Delhi to enable the Govt. of India to dbtain reimbursement under the UK Grant. The documents to be furnished are,:

(i) Contract certificate in the form set out in the AnnexUre II or Annexure 1KB), as is appropriate, duly signed by the UK suppliers and a copy of the relevant letter of credit.

(ii) Payment certificate in the form given in Annexure V duly signed by the UK supplier.

(iii) The invoice and Bill of lading as mentioned in Section V where there is more than on" payment to be made to the UK supplier under a contract, the contract certificate and a copy of the letter of credit need be supplied only for the first payment. For the subsequent invoices need to be sent to the CAA&A, New Delhi, but the identi- fication suffix in the relevant contract certificate and the letter of credit should be quoted.

(B)—In the cases coming under Section III(B)

30. Within seven (7) days of the receipt of the advice of payment alone with shipping documents from the UK Bank, the Indian Bank concerned shall collect from the importer the cost of imports in rupees plus interest charges at the rate of 6 per cent per annum or at any other rate as may be prescribed from time to time for the period from the date of payment to the UK Suppliers, by the UK Bank, to the date of deposit of the rupee equivalent into the Govt, account.

31. Deposit of rupee equivalent—The amount referred to above should be deposited by the Indian Bank to the credit of t he Government of India in the Reserve Bank oi¹ Indut, New Delhi or the State Bank of India, Tis Hazari Branch, Delhi or if this is not, feasible, should be remitted toy means of a Demand draft drawn on and in favour of the State Bank of India, Tis Hazari Branch, Delhi. Rupee deposit should be made in the revised form of the treasury Challan, Published as Annexure to Public Notice No. 74-ITC(PN)/74, dated 31-5-74. Thereafter the treasury challan evidencing the deposit should be sent by Regis- tered Post to the CAA&A, New Delhi indicating references to and enclosing copies of the invoice, shipping documents and the Authorisation of that Depart- ment to which the transaction relates.

The Indian Bank concerned shall also arrange to deposit in the same man- ner such additional amounts on account of service charges as may be demanded by the Government of India within 7 (seven) days after such demand.

The Licensee should also fill in, in duplicate the Form 'S' Incorporated as Annexure II to Public Notice No. 184-ITC(PN)/58, dated 30th August 1968 and present the same to their bank while arranging for rupee deposits in accord- ance with tho procedure prescribed in the said Public Notice.

32. Head of account for rupee deposit.—The amounts including interests charges to be deposited to the Credit of Government of India shall toe credit- able under the following Head of Account:

"K— DEPOSITS AND ADVANCES*— 843 CIVIL DEPOSITS—DEPOSITS FOR PURCHASES etc, ABROAD—DEPOSITS UNDER UK/INDIA SEC- TORAL GRANT, 1975."

Accounts Officer

and the Accounts General, Central Revenues, New Delhi shall be shown as the Accounts Officer who will adjust these credits.

33. Release of Bank Guarantee.—After the obligations in terms of the Bank Guarantee and the Letter of Credit Authorisation issued bv the Ministry of Finance are fulfilled, the Indian Bank concerned can apply to the CAA&A, New Delhi for the release of t he Bank Guarantee. The application should be made by the Indian Bank concerned (not by the importer) and should be in the form laid down as Annexure VI.

VII. REPORT ON THE UTILISATION OF THE IMPORT LICENCE

34. Reporting.—A quarterly report, in the form attached as Annexure VII showing the utilisation status of the licence should (be furnished on the 15th of month following the quarter to which it relates to the Ministry of Finance De- partment of Economic Affairs (WE II SECTION), New Delhi with a copy to the Controller of Aid Accounts & Audit, Ministry of Finance Department of Economic Affairs, UCO Bank Building, New Delhi.

VIII. MISCELLANEOUS

35. Refunds from U.K. Suppliers,—If any money is received by the licensee from the UK suppliers or a Guarantor (insurance company etc.) as a refund or settlement of insurance claim or otherwise, such amounts should be re- funded by the supplier to the concerned correspondent bank in the U,K. (from which the payment waa initially made to the U.K. supplier) with the instruc- tion-s to refund the amount immediately, in turn, to CAO London for crediting to the Grant Account, After the Grant Account is so credited, an equivalent amount in rupees will be arranged to be refunded to the importer by the Min- istry of Finance, upon receipt of a claim therefore from the importer. If any refund is received after the closure of the loan, the same will have to be made by the supplier direct to the importer.

36. Reportinjf of Refunds.—As and when any such refund is received, a report thereof should be made to the Ministry of Finance with a copy to the CAA&A in the form set out on Annexure VIII.

37. Notification of Special Conditions Provisions to Supplier,—The licensee should apprise the Supplier of any special provisions in the import licence which may affect the suppliers in carrying out the transaction.

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

39. Future Instructions.—The licensee shall promptly comply with any direc- tions, instructions or orders issued by the Government regarding any and all matters arising from or pertaining to the import licence and for meeting all obligations under this .grant Agreement.

40. Breach or Violation.—Any breach or violation of the conditions set forth in the above clauses will result in appropriate action under the Imports and Exports (Control) Act, 1947 and the orders issued thereunder.

IX. LIST OF ANNEXURE

1. Annexure I.—Notification of Contract, 2. Annexure II.—Contract Certificate.

3. Annexure II (B).—Contract Certificate (Chemicals).

4, Annexure III.—Form of application for Letter of Credit Authorisation. 6. Annexure IV.—Form of Bank Guarantee. 6. Annexure V.—Payment Certificate. 7. Annexure VI.—Form of application for the release of Bank Guarantee. 8. Annexure VII.—Form lor reporting Ordering and Utilisation of the import licence.

9. Annexure VIII.—Form of reporting Refunds.

ANNEXURE I

UNITED KINGDOM/INDIA SECTORAL GRANT 1975 NOTIFICATION OF CONTRACT

To

The Crown Agents for Overseas Governments and Administrations, 4, Millbank, London, SW1.

Notification of Contract No

Identification Suffix

The following are details of a contract under which it is proposed that pay- ments shall be made in accordance with the terms and conditions of the above grant.

1. Name and address of

United Kingdom Contractor:

2. Date of Contract: 3. Name of Indian Purchaser: 4. Short description of goods and/or works or services:

5. Value of Contract: £, 6. Terms of Payment:

Signed on behalf of the Government of India. Date

,

Copy for information to Ministry of Finance (DEA) (WE II Section, New Delhi.

ANNKXURE II

UNITED KINGDOM/INDIA SECTORAL GRANT 1975

Contract Certificate

Particulars of Contract

1. Date of Contract 2(a) Contract No

(b) Identification Suffix ,

3. Description of goods or services to be supplied to the purchaser

{If a number of items are to be supplied, a detailed list should be appended to this certificate)

4. Total contract price payable by purchaser (state CIFj C & F or FOB)

IF GOODS ARE TO BE SUPPLIED THE FOLLOWING SECTIONS MUST BE COMPLETED

(7/ the contractor is exporting agent only, the information requested should be obtained from

manufacturer)

5. D.-bcription of goods to be Price UK/TARIFF/TRADE supplied to Purchaser. " CODH NO.

6. Esrimated % of the FOB value of the goods not origiiurting in the United Kiiigdrm, bi puichased by the Contractor directly from abroad, i.e. % of imported raw material or irrrpe nent used in manufacture.

(a) %FOB value

(b) Description of items and buef specificatio ns

7. If any raw material or components ustd or'ginattd fri m [brc^d, c g. cc prc rJ £; ri M (' <-<-ik 1 wood pulp, etc., but have been purchased in ihe Uni:cd Kir&t't IV }y ihe c c i u t c ni ii 1 1 ; cc tract, specify:—

(a) %FOB value

(b) Description of items and brief specifications

IF SERVICES ARE TO BE SUPPLIED THE FOLLOWING SECTION SHOULD ALSC BH COMPLETED.

8. State the estimated value of any wort; to be done or services performed in the purchaser' country by

(a) Your firm (site engineers, charged, etc.)

(b) Local Contractor

^."Qualifying remaiks as necessary in respect of paragraphs 6, 7 or 8 above

10, I hereby declare that I am employed in the United Kingdom by the Contract*.r ntnud bdei and have the authoriry to sign this certificate. I hereby under eke ihat in ptrff in (nu cf the ccn tract no goeds or services which are not of United Kingdom origin will be supplied by tl e ccntrsctc other than those specified in paragraphs 6, 7, 8 and 9 above.

Signed

Position held

Name & Address of Contractor

Date

HOTB.—Fcr the purpose of this declaration the United Kingdem includes the Chsmicl Islsn ' and the Isle cf Man.

Contractors should note that goods slunild not be manufactured until acceptance has been notified.

FOR OFFICIAL USE ONLY

PAYMENTS Name cr number of Project

PA. Date Amount No. Initials

Amount Date of Entry Acceptance

committed — •*—J *—•—— —. ——•.——. • -,

Date Initials.

ANNEXUEE II (B)

UNITED KINGDOM/INDIA SECTORAL GRANT 1975

Contract Certificate for Chemicals and Allied Products only

T . Dn te u f Contract Contract No Import Licence No

Date

Identification, Suffix

2. Description of Product(s)to be f, UK Tariff Is the product supplied to Purchaser Price Classification No. ofUKcrigin?

(See note C)

State 'Yes' or 'No'.

:.Nute A)

(Note B)

3- Total (Estimated) Contract Price payable by Purchaser in Sterling—£

4. (Declaration) I hereby declare that I arn empk ytd in the United Kingck m ty the cc ntiattc r learned below ar.d have the authority to sign this ccrtificutc urd that the ttive infi in :.ri n is, a m e t.

Signed Position held Name & Address of contractor

Date

NOTES

A. This form is only to be used for chemical and allied products, most of which are ccvcicd by the appropriate sub-headings of Chapters 15, 25, 26-35 and 37-40 cf the UK Tariff.

B. SEE :—

(i) HM Customs and Excise Tariff HMSO.

(ii) Classification of Chemicals in Brussels Ntrrfnclaurc HMEO.

C. (i) A product is regarded as cf 'UK Origin' if made either wholly fern indigenous UK materials OR according to the appropriate EFTA qualifying process using impcrttd materials wholly or in part.

(ii) The EFTA qualifying processes are set out in Schedule I of the 'EFTA Ccmncndium for the use of Exporters', HMSO.

(iii) For the purposes of this declaration it is to be emphasistd that the 'Alternative Perec ntngc criterion' DOES NOT APPLY.

(iv) 1'he words "Area Origin" where they appear in the above Schtdulc must be token to mean "UK Origin" only.

(v) For the purposes of this declaration, the "Basic Materials, Liii" (Schtc'uic III cf the EFTA Ccmpendium) does not apply.

(vi) If a qualifying process is not listed for the material in question, advice should be sought from the Crown Agents for Overseas Governments and Administrations, 4> Willtankj - London, SW 1.

D. For the purpose of this declaration of the United Kingdom includes the Channel Island and the Isle of Man,

ANNEXURE III

Form of Application 1or Letter of Credit Authorisation

Identification Suffix

To

The Controller of Aid Accounts & Audit, Economic Aid Accounts Section, Ministry of Finance (Department of Economic Affairs), United Commercial Bank Building, Parliament Street, New Delhi.

• S U B J E C T . —I m p o rt of

f r om U . K. u n d er V . K . / I n d ia S e c t o r al G r a n t, 1 9 75

Sir,

In connection with the import of

from UK ajjainst the above UK/India Sectoral Grant, 1975, we furnish the following particulars to enable you to issue us authorisation for opening a Letter of Credit through our bankers on the U.K. Bank designated by you:—

(a) Particulars of Import Licence,

Full No. and Date Value (Rs.) Date upto which valid

(b) Sterling value of licence.

(Calculated at the rate of exchange indicated in the import licence by the licensing authorities),

(c) Progressive Sterling value of the orderg already placed for which L/As have been obtained (A statement of LA Nos. and Sterling amount to be enclosed).

(d) Sterling value of the orders placed for which authorisation is required specifying the name and address of the UK supplier/suppliers and the amount/s of authorisation required separately against each supplier (copy of orders placed and UK suppliers' acceptance thereof to be attached).

(e) Name of UK Correspondent Bank on whom the Letter of Credit is to be established.

(f) Name of the Indian Bank which has furnished the Bank Guarantee and which will open the Letter of Credit in cases where section I1I(B) of this Public Notice is applicable.

The Bank Guarantee furnished by and which has been

(Name of Bank)

duly adjudicated "by the Collector in accordance with the provisions of Section' 31 of the Stamps Act, 1899, is attached.

Yours faithfully,

(Signature of Licencee and

full address).

NOTE.—Item (f) is not

applicable to cases falling under Section III (A).

ANNEXUBE IV

Form of Bank Guarantee

To

The President of India, Through Secretary to the Govt. of India, Ministry of Finance, Department of Economic Affairs, New Delhi.

Sir,

In consideration of the President of India hereinafter referred to as t he Government having agreed to' arrange for payment in foreign currency of the price of goods to be imported by

1. • (i) , individual/partners (ii) working under the name (iil) and style of M/s name(s) and dress(es>

a company having its regis- in the State of hereinafter referred

hereby •Messrs tered office at to as the Importers' under Import Licence No dated granted for , Rupees, We, guarantee that we shall arrange deposit to the credit of the Government in the Reserve Bank of India. New Delhi/State Bank of India, Tis Hazari Banch, Delhi or by means of Demand Draft Drawn on and in favour of State Bank of India, Tis Hazari Branch, Delhi (for credit to the Central Government Account) to be forwarded to the said Tis Hazari Branch—

(i) within seven days of the receipt of advice of payment with shipping documents, from the UK Banks, of rupee equivalent of the invoiced price representing the sterling disbursements made by the UK Banks, under the letter of credit authorisation issued by Ministry of Finance, at the composite rate of txchange prescribed for this purpose by the CCI&K. which vide Public Notice No. 15-ITC(PN)/ 72 dated 28th January, 1972 read with Public Notice No 108, ITC(PN)/72 dated 21st July, 1972 at present Is £ 1 = Rs. 19.06 until further notified through Public Notice, or by Reserve Bank of India through Exchange Control Circulars to the Authorised Deal- ers in foreign exchange, alongwith interest thereon at six per cent per annum, or at any other rate as may be prescribed from time ti> time from the date of payment to UK suppliers to the date Q* deposit of rupee equivalent and UK bank charges.

(ii) Within seven days of the demand Iby the Government of such addi- tional amount as may be demanded by the Government a9 being due on account of service charges.

2 we

undertake to pay to the Government on demand and' without demur such sum not exceeding . • • . • rupees (plus interest and service charges as aforesaid) as may be demanded by the Government in the event of the importers failing or neglecting to make any or the above mentioned said payments and the decision of the Government as- to such failure or neglect on the part of Importerg and as to the amount payaoie- to the Government by us hereunder shall be final and binding on' us.

3 We

. agree and undertake not to release shipping documents'to the Importers until after the rupee equivalent a9 foresaid and the other dues, if any. as demanded by Government are deposited to the credit of the Government.

agree arid" undertake not to revoke- 4 -^e

this 'Guarantee 'during 'its' currency except with the previous consent of the Government in writing.

5. The guarantee herein contained shall not be affected by any change in the constitution of the Importers or of our Bank.

6. The Government shall have, the fullest liberty without affecting this guarantee to vary any of the terms of the import licence detailed above or to

extend the time for payment by the importers from time or to postpone for any time and from time to time any of the powers exercised by the Government on the liberty with reference to the amount of aforesaid or any reason of any fcuch variation or extension of time beinB given to the Importers of any forbear- ance, act or ommission on the part of the Government of any indulgence by the Government to the importer or by any of the matters or things whatsoever which under the law relating to sureties shall but for this provision have the effect of so releasing us Bank from our such liability.

Our liability under this bond/guarantee is restricted to Rs

(plus interest and service charges as aforesaid) and It will remain in force till the Ministry of Commerce day of (month) 197 . We also undertake to make such additional deposits as may bo necessary in terms of Ministry of Commerce **Public Notice No. 15-ITC(PN)/.72 dated 28-1-72 read with Public Notice No. 108-ITC(PN)/72 dated 21-7-72 or as notified from time to time. Unless claim under the bond/guarantee are made in writing within Bix months of this date and unless a suit op action to enforce these claims is commended within another six months,. thereafter i.e. upto all Government's rights under 1rng bond/ guarantee shall be forfeited ,and we ehall be relieved and discharged irom all liability thereunder.

Place

Yours faithfully.

Date

,

Signature of the Authorised Officer of the Bank and Bank's full address. (The Bank Guarantee Is to be executed on a non-judicial stamp paper, the value of the stamp being adjudicated by the Collector in accordance with the provisions of Section 31 of the Indian Stamp Act, 1899).

•Strike out which is not applicable.

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

ANNEXUHE V

UNITED KINGDOM/INDIA SECTORAL GRANT 1975 Payment Certificate

Identification Suffij.

I hereby certify that

(i) the payments referred to in the invoices listed below, which or copies tff which accompany this payment certificate have been made or fall due and are due to be made in lehpect of Contract No dated... between the contractor named below and

(Purchaser) . . .. and are in accordance with the particulars of this •contract notified m the contract certificate signed on behalf of the said con- tractor on

Contractor's Date Amount Short description of goods, works and/ Invoice No. £ or services.

(il) The amounts specified in paragraph 1, do not Include any additional foreign content to that declared in paragraph 5, 6 or 7 of the contract certificate. (iii) I have the authority to sign this certificate on behalf of the contractor named below.

• Signed • . . . .• '

Position held For and on behalf of Name and Address of Contractor . . ..

D a te '".'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.

NOTE.—For the purpose of this declaration the United Kingdom includeg the 'Channel Islands and the Isle of Man,

ANNEXURE VI

Form of Application for release of Bank Guarantee

Identification Suffix

.0

The Controller of Aid Accounts and Audit. Ministry of Finance, Department of Economic Affairs, "United Commercial Bank Building, Parliament Street, New Delhi,

-if,

We are furnishing below detailed information on the rupee deposit made

for an amount of Rs with the jy us in dischii-RC of our obligations under Bank Guarantee No aated ~equest that the same may be released and returned to us

1. The name and full address of the importer/licensee on whose behalf the Dank guarantee was furnished.

2. Th,e import licence No, and Date Value and brief description of the com- tiodities allowed for import thereunder.

3. Particular.* of the authorisation (s) for opening Letters of Credit obtained "rom the Ministry of Finance. (a) Letter No. and Date. Ob) Amount of authorisation, (c) U.K. Grant.

4. Particular? of Imports and rupee deposits made (to be Riven separately for each Letter of Credit Authorisation).

(a) Particulars of Letters of Credits opened (No., date, value and the supplier's name).

(b) Invoice No. and date relative to each Letter of Credit, (c) Amount of Invoice (net in sterling), (d) Amount of rupee deposit,

(f) If by demand draft, No. and date of the demand draft and the No. and date of the Letter with which the draft was sent to the State Bank of India, Delhi.

5. Amount utilised and balance unutilised (sterling) in each Letter of Credit Authorisation.

II, "We certify that:

(1) 'That balance amount of £ available in the authorisation(s) given by the Ministry of Finance has not been utilised/will not be utilised.

or

No letter of credit was opened under the auihorisation(s) and the authori- "ation(s) lapsed.

or

The letter of Credit wag opened against the authorisation letter (s) expired, unutilised and

(2) Our obligations under the bank guarantee in question have teen duly discharged, 1

III. We request that the bank guarantee may please be released and returned to us Jor cancellation.

Yours faithfully,

Authorised Agent for and on

behalf of the Batik, •whichever is applicable.

ANNKXUHH VH

(Form of utilisation Report)

UNITED KINGDOM/INDIA SECTORAL GRANT 1975

Identification Suffix (i) report to be sent for each quarter i.e. April—June, July—September, October—December, January—March (by the 15th of month following the quarter.)

(ii) rentirt to be furnished separately for each licence.

("both in Rs. & £s.) 1. Name of the importer (Licensee).

2. Complete No. & dated of Import

Licence.

3. Value of the import licence.

4. Date & value of the firm orders placed against the above licence and phasing of the balance ordering.

5. Whether the contract documents have been sent to CAA&CA in accordance with relevant stipulation in the licensing con- ditions (No. & Date of communication to be quoted).

6. Details of the value of Letters of Credit opened in favour of the U.K. Suppliers.

7. Phasing of payments:

(a) actual payments made (I) July 1075—September 1975.

(ii) October 1975—December 1975. (iil) January I97ff—March 1976.

(and so on)

(b) Estimate of payments to be made:

(i) April 1976—June 1970.

(if) July 1976—September 1970. (lii) October 1976—December 1976. (Av) January 1977—March 1977.

(and so on)

8. Indicate specifically the portion¹ ol the licence not covered by firm orders and i& thus surrendered.

Sljmatur*

Address

ANNKXDBE VTII

Report showing details of refunds received from supplier/Shippers/insurera

(towards settlement of claims for short landings, damages, etc.) in respect of

imports from the U.K. under U.K. /India Sectoral Grant, 1975,

Identification Suffix No

(only for claims settled in £ sterling)

[PART I—Sl-C. 1] THF GAZ12TTF OF INDIA IIX I RAUKDINARY 1515

2. Particulars of U.K. Grant. 3. No. & date of the import licence. 4 Value of import licence. 6. Amount of refund received. 6 Nature of refund (give brief detuils).

7. Reference to the relative documents under which payment was made initially to the U.K. suppliers (indicate name of Indian Bank and reference to their letter No. & date forwarding the documents to the Ministry of Finance).

8. Whether or not refunds received are Ui be utilised for replacement at goods, if not confirm that amount hat; been actually received and encashed into rupees.

9. Remarks

Signature of the authorised ofHer of thP importing firm.

B. D. KUMAR.

Chief Controller of Imports & Exports.

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NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI, 1 9 75