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REGISTERED No. D-(D)-72

TheGazetteof India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 253] NEW DELHI, SATURDAY, DECEMBER 27, 1975/PAUSA 6, 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 27th December 1975

SUBJECT.—Licensing conditions for imports from U.K. under UK/India Mixed

Project Grant, 1975.

No. 132-ITC(PN)/75.—The terms and conditions governing the issuance of import licences under UK/India Mixed Project Grant, 1975, as given in the Appendix to this Public Notice, are notified for information,

APPENDIX

LICENSING CONDITIONS FOR IMPORTS FROM THE U.K. UNDER UK/ INDIA MIXED PROJECT

GRANT, 1975.

I. General Conditions

1. Super Scription and Code.—The import licence will bear the superscription "UK/India Mixed Project Grant 1975" In addition each import licence will also bear the Code "S/KK".

2. Intimation of Import Licence Particulars.—Within a fortnight of the receipt of the import licence, the importer should intimate to the Department of Econo- mic Affairs (Section Officer—WE/II Section) the details of the import licence viz. complete number and date; its value, and the superscription thereof together with a photostat copy of the import licence. A copy of the intimation

(1665)

alongwlth a photostat copy of the import licence should also be endorsed to the Controller of Aid Accounts and Audit (CAA&A)^ Ministry of Finance, Depart- ment of Economic Affairs, UCO Bank Building, New Delhi.

3. Validity of the Import Licence.—The import licence will be issued with an Initial validity period of 24 (twenty-four) months, This period can be further extended if there is adequate justification to do so.

4. (a) Remittances.—No remittance of foreign exchange will be permitted against the import licence. However, the U.K. Bank charges may be remitted through the normal banking channels,

(b) Indian Agents* Commission.—Any payment towards the Indian Agent's Commission should be made only in Indian Rupees to the Agents in India, bucfc payments will, however, form part of the licence value and will, therefore, be cnarged to the import licence.

5. (a) Ordering period.—Firm orders on CIF or C & F basis must be placed within a period of four (4) months from the date of issue of the import licence

(b) If firm orders cannot bo nlaced within four months for valid reasons, the licence should be submitted to the Licensing Authority immediately during xne fifth month giving the reasons for the delay in placing firm orders and indicating the date by which the firm orders would be placed and seeking extension in the period for ordering, as necessary. Such requests will be consi- dered on merits by the Licensing authorities who may grant extension upto a further maximum period of two months. If however, extension is sought beyond six months from the date of issue of this import licence, such proposals will invariably bo referred by the Licensing authorities to the Department of Econo- mic Affairs (WE II Section), Ministry of Finance, North Block. New Delhi.

NOTE,—The Firm, Orders in this context mean, placement of orders on the UK Suppliers, and the letter's confirmation in writing therefor within the ordering period.

(c) It should be noted that unless ordering is completed within four months or the extended period allowed 'by the licensing authority, as the case may be, the Authorised Dealers in foreign exchange will not permit the establishment of Letter of Credit, or deposit of rupee equivalent. {See Section IV below).

6. Payments.—All payments must be completed within the expiry of the Import licence. Indiviaual payments must be arranged upon shipment of xoods. No credit facility of any kind will be permitted.

II. Special Points to be incorporated in the Orders, Contracts or otherwise kept in view.

7. (a) Origin of Goods,—While placing orders/contracts which must be placed only on the suppliers in the U.K. (which expression in this connection includes the Channel Islands and the Isle of Man), the licensee must ensure by a provi- sion in the same that the goods purchased are or will be wholly produced or manufactured in the United Kingdom, or in the case of Chemicals and Allied Products are declared to be of U.K. origin on the form attached as ANNEXURb 1KB).

(b) Works and Services—When the Contract also provides for works and services in connection with the purchase of such goods, it must similarly be ensured by a suitable provision therein that such works and services are or will be provided by persons ordinarily resident or carrying on business in the U.K^

(c) (i) Non-UK Content Criteria.—Import licences under the UK/India Mixed Project Grant will normally be valid only for goods and/or materials procured and produced or manufactured in the United Kingdom.

(ii) The Indian Importer is advised in his own interest to a ^³*" tt,°r£ the UK suppliers beforehand whether the proposed imports contain any non-UK Element and if so, the percentage thereof. Under no circumstances should he entS into a firm commitment or contract with a UK supplier without specifically ascertaining this point.

i-iii) When nn such an enquiry it ii revealed that the goods proposed to be Imported have some Aon im element, the matter must be brought to the notice

of the Ministry of Finance, Department of Economic Affairs, (WE II Section), JNew Delhi, for confirmation whether the importer should proceed with the flnalisation of his order/contract with the prospective UK supplier. In excep- tional cases a non-UK element upto a limit of 20 per cent of the FOB value of the contract may be accepted for financing under the UK/India Mixed Project Grant and may be allowed by the Government of India.

(d) Provision for Contract Approval.—A clause should, specifically be included m the contract to the effect, that the contract is subject to and will become effective only on approval by the Government of India and the Government of the United Kingdom.

(e) Documevtation and Payment Procedure 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 and should be appropriately incor- porated in the contract. HI. Contract Acceptance

8. (a) Notification of Contracts and Amendments.—Immediately on placement of orders on the UK supplier, the importer should furnish copies of the contract to the Administrative Ministry and the Ministry of Finance, Department of Economic Affairs, New Delhi.

(Ib) Within a fortnight of approval of contract by the Government of India in respect of each order placed on the foreign supplier, the licensee should forward four 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 1KB)) (as is appro- priate) duly signed by the U.K. supplier, to C.A.A. & A:, UCO Bank Building, Parliament Street, New Delhi-1.

NOTE.—As no payments can be made unless the contract Is duly approved by the U.K. Government, it is most Imperative for the licensee to ensure that copies of contract/notification of contract along with supplier's contract certificates are forwarded to the Ministry of Finance (C.A.A. & A.) in the manner stated above at the earliest.

9 (a) Contract Approval.—While forwarding the above documents to the Ministry of Finance, it must be ensured by the licensee that the number and date of the import licence and the name of the U, K. Grant are clearly noted In the documents.

(b) The CAA&A, Ministry of Finance, will arrange through the Chief Account- ing Officer, High Commission of Ind'a. London (CAO, London) to file a set of the documents with the U.K. Government for obtaining their approval and acceptance to the payments under the contract to be financed under the U.K. Grant. As soon as possible after the decision of the U.K. Government is known, the U.K. Suppliers as well as the licensee will be informed of the same direct by the CAO, London under advice to the Ministry of Finance.

10. Amendment to Contract.—If. at any time, a contract (being a contract in respect of which acceptance of the UK Government has been obtained or is pend- ing) is amended, or if liability is to be incurred thereunder to a greater or lesser amount than the amount specified in the contract certificate, the licensee should obtain the approval of the Government of India and thereafter promptly forward the relevant supplementary or revised documents, copies of amendments to the contracts and revised Contract Certificate¹ to C.A.A. & A., New Delhi in order to enable him to notify the same to the U.K. Government and to obtain their accep- tance. As soon us the acceptpnee of the amendment to contract/order is received from the U.K. Government, the licensee and the Ministry of Finance will be notified by the CAO, London in the same manner as for the original contract.

11. When a Contract is with Indian Agents—If the contract is with the Indian a^ent of the foreign suppliers, it should indicate the names of the U.K. suppliers to whom payment is to be made for the ^terlinc; portion of the contract, which alone will qualify for payment under the U.K. Grant, Copies of such contracts (or of contracts olaeed by the Indian Agents with the UK Suppliers, if there are such separate contracts) should be sent as prescribed above.

IV. Payment to U.K. Suppliers—Letter of credit procedure

12. Special Payment Procedure.—The payment procedure normally applicable is laid down below. In special cases a different payment procedure may be laid

down by the Ministry of Finance, Department of Economic Affairs, New Delhi and in that case the import licence will be issued subject to such special procedure.

13. Application for Letter of Authorisation.-—After receipt of intimation re- garding contract acceptance from CAO, London (see Section III above), the licensee should apply to the C.A.A.&A., New Delhi, for a Letter of Authorisation to any of the Authorised Bank dealing in foreign exchange for opening a Letter of Credit in favour of the U.K. Suppliers with one of the Correspondent Banks In the U.K. The request for the letter of authorisation should be in the form given as ANNEXURE III and should be accompanied by a bank guarantee (in the form given in ANNEXURE IV) obtained from an authorised dealer in foreign exchange in India. The first request for Letter of Authorisation should be accompanied by a photostat copy of the Import licence.

14. (a) Bank Guarantee.—The Bank Guarantee should be for an amount not less than the rupee equivalent of the value in sterling of the proposed letter of authority.

(b) The rate of exchange to be applied for the rupee equivalent, will be calculated at the Composite Rate of Exchange, as notified by the Chief Controller of Imports and Exports, New Delhi through Public Notice from time to time and by the Reserve Bank of India through the Exchange Control Circulars issued from time to time to the Authorised Dealers in Foreign Exchange.

NOTE.—No Bank Guarantee is required from Public Sector Projects. In such cases the Letters 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).

15. Letter of Authorisation.—If the application is found to be in order, the Ministry of Finance, Department of Economic Affairs, New Delhi, will issue an Authorisation for the requisite amount to the Indian Exchange Bank concerned, with a copy to the importer and Section Officer, WE II Section incorporating inter- alia the Contract Approval number of the U.K. Government. The Ministry of Finance will also advise the U.K. Bank concerned and the CAO, London suitably. The advice to the U.K. Bank will, however be sent to the Indian Exchange Bank concerned alongwith their copy of the Authorisation Letter, who should then transmit it to the U.K. Bank while opening the Letter of Credit.

16. (a) Validity of Letter of Authorisation.—The Letter of Authorisation will be valid for a period of one month from the date of its issue Therefore, the Letter of Credit should be opened within a period of one month from the date of issue of the Authorisation, under intimation to the Ministry of Finance, failing which the Authorisation will lapse.

(b) Letter of Credit.—The letter of credit should detail the conditions to which the licence is subject; should provide for payment to the suppliers on the sub- mission of all the documents detailed in Section V below; should contain adequate instructions regarding the despatch of documents after payment and should be opened subject to the condition that the Correspondent Bank in the U.K. after making payments to the beneficiaries initially out of their own funds, obtain reimbursement therefor from the State Bank of India, London, through the CAO, London. 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.

(c) The Letter of Credit should be clearly marked with the UK Grant title and with the UK Government's Contract approval number.

(d) Responsibility of Indian Exchange Bank.—While opening letter of credit, the Authorised Exchange Bank In India should, on behalf of the Importer also, take care to Incorporate necessary conditions in the Letter of Credit and ensure that the requirements of documentation detailed in para 17 (below) are noted and complied with by the UK supplier. V. Documentations

17. Documents.—The importer is responsible to see that the UK supplier com- pletes and submits the documents detailed below to 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 other process. (The invoice should show the name and address of the im- porter, quantity and detailed description of each item supplied, sales price for each item reflecting all trade discounts, the basis of delivery

(FOB, C&F, CIF and P&A) and the sterling cost of any incidental services including delivery services or marine or transportation insurance.)

(ii) One copy (or photostat) of ocean or charter Bill of Landing or airway Bill or parcel post receipt (The Bill of Lading should either indicate or be accompanied by the carrier's statement of charges in whatever currency it is paid).

(iii) Four copies of the payment certificate in the form of ANNEXURE V (not required in respect of Contracts for which a contract cerltflcate (Chemicals) in the form given as ANNEXURE II(B) has been pro- vided). 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. Each document must show the Grant title, details of import lience and if possible, the particulars of the letter of Credit Authorisation issued by the Ministry of Finance.

18. Despatch of Documents.—After the payment is made to the UK Supplier, the correspondent Bank in the UK will send by fast air mail the original negoti- able set of documents to the Indian Exchange Bank concerned.

19. UK Bank Charge.—The Indian Exchange Bank will remit the Bank charges to the UK Bank and recover the same from the importer.

20. Reimbursement to UK Bank.—The UK Bank will, simultaneously, claim t he reimbursement of the nmount(s) paid by it to the UK supplier, from CAO London and will submit for this purpose, invoices received from the supplier and payment certificate as in ANNEXURE V, where required. The CAO London will arrange payments to the UK Bank through the State Bank of India, London.

VI. Indian Bank's reaponadblllty for Rupee Deposits

21. Recovery from Importer.—Within 7 (seven) days of the receipt of the advice of payment along with shipping documents from the UK Correspondent Bank, the Indian Exchange Bank concerned shall collect from the importer, the cost of imports in rupees at the "composite rate of exchange" (see para 14(b) above) plus interest charges at 6 per cent per annum 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 Government account.

22. Deposit of the Rupee Equivalent The amount referred to above should, be deposited by the Indian Exchange Bank to the credit of the Government of India In the Reserve Bank of India, New Delhi or the State Bank of India, Tiz Hazari Branch, Delhi or if this is not feasible, should be remitted by 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 annexpre to Public Notice No. 74—ITC(PN)/74 dated 31-5-1974. Thereafter the Treasury challan evidencing the deposit should be sent by Regis- tered Post to the C.A.A.&A., New Delhi indicating references to and enclosing copies of the invoice shipping documents and the Authorisation of that Department to which the transaction relates.

The Indian Exchange Bank concerned shall also arrange to deposit in the same manner such additional amounts on account of service charges as may bp demand- ed by the Government Df India, within 7 (seven) days after such demand.

The licensee should fill in, in duplicate, the Form 'S' incorporated as Annexure II to Public Notice No. 184-ITC(PN)/68, dated 30th August, 1968 and present the same to their bank while arranging for rupee deposits in accordance with the procedure prescribed in the said Public Notice.

23. Head of Account for Rupee Deposit—Accounts Officer.—The amounts in- cluding interest charges to be deposited to the Credit of Government of India shall be creditable under the following Head of Account:

"K—Deposits and Advances 843 Civil Deposits—Deposits for Purchases Abroad—Deposits under UK/India Mixed Project Grant 1975."

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

24. Release of Bank Guarantee,—After the obligations in terms of the Bank Guarantee and the Detter of Credit Authorisation issued bv the Ministry of Fin- ance are fulfilled, the Indian Exchange Bank concerned (not the importer) can apply to the CAA&A, New Delhi in the form laid down as ANNEXURE VI for the release of the Bank Guarantee.

VII. Report on the Utilisation of the Import Licence

25. Reporting.—A quarterly report, in the form attached as ANNEXURE VII showinn the utilisation status of the licence should be furnished on the 15th of the month following the quarter to which it relates to the Ministry of Finance, Department of Economic Affairs (WE II Section) New Delhi with a COPY to the Controller of Aid Accounts and Audit (Department of Economic Affair^ UCO Bank Building, Parliament Street, New Delhi,

VIII. Miscellaneous

26. Refunds from UK Suppliers.—If any money is received by the licensee from the UK suppliers or a Guarantor (insurance company etc.) as a refund or in settlement of insurance claim or otherwise, such amounts should be refunded by the supplier to the concerned correspondent bank in the U.K. (from which the payment was initially made to the U.K. supplier) with the instructions to refund the amount immediately, in turn, to CAO London for crediting 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 Ministry of Finance, upon receipt of a claim therefor from the importer. If any refund is received after the closure of the Grant the same will have to be made by the supplier direct to the importer.

27. Reporting 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 Ministry of Industrial Development, Foreign Exchange Section, Udyog Bhawan, New Delhi and CAA & A.

28. Notification of special conditions provisions to supplier.—The licensee should apprise the Supplier of any special provisions in the import licence which may effect the suppliers in carrying out of the transaction.

29. 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.

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

31. 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 Ex- ports (Control) Act, 1947 and the orders issued thereunder.

IX. List of Annexures

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.

5. 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 for reporting Ordering and Utilisation of the Import

licence.

ANNEXURE I

UNITED KINGDOM/INDIA MIXED PROJECT GRANT 1975

Notification of Contract

To: The Crown Agents for Oversea Governments and Administrations, 4-Mill- bank, London SW 1.

PROJECT

Notification of Contract No

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 Payments:

Signed on behalf of the Government of India

Date

ANNEXUKE II

UNITED KINGDOM/INDIA MIXED PROJECT GRANT 1975

Contract Certificate

Particulars of Contract

1, Date of Contract 2. Contract No

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

{If a number of items are to he supplied n detailed list should be appended to

this certificate) 4. Total contract price payable by purchaser (State CIF, C & F or FOB) £

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

5. Description of goods to Price UK Tarnf/TRADE be supplied to Purchaser CODE NO.

• • -•

"**winiaEin"i v" [""•"*'fc'roi

6. Estimated per cent of the FOR value of the coods not originating in the United Kingdom, but purchased by the Contractor directly from abroad, i.e. per cent of imported raw material or components used in manufacture.

(ai) per cent FOB value (b) Description of items and brief specifications

7. If any raw material or components used oricinated from abroad, e g copper, asbestos, cotton, wood pulp etc. but have been purchased in the United Kingdom by the Contractor for this contract, specify:—•

(a) per cent FOB value (b) Description of items and brief specifications

IF SERVICES ARE TO BE SUPPLIED THE FOLLOWING SECTION SHOULD

ALSO BE COMPLETED.

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

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

,.-.-,.."

(b) Local contractor

9. Qualifying remarks as necessary in respect of paragraphs 6, 7, or 8 above

10. I hereby declare that I am employed in the United; Kingdom bv the Con- tractor named below and have the authority to sign this certificate. I hereby undertake that in performance of the contract no goods or services which are not of United Kingdom origin will be supplied by the Contractor other than those specified in paragraphs 6,7,8 and 9 above.

Signed Position held Name and Address of Contractor

Date

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

Contractors should note that goods should not be •manufactured until acceptance:

has been notified.

FOR OFFICIAL USE ONLY Name or number of Project PAYMENTS

~ " " PA ~~ ~ ~~

Date Amount No. Initials

Amount Date of __ Acceptance Committed Entry Date Initials

ANNEXUHE II (B)

UNITED KINGDOM/INDIA MIXED PROJECT GRANT, 1975

Contract certificate for Chemicals and Allied Products only

1. Date of Contract Contract No Import Licence No.

Date

2 Description of Product (s) £ UK Tariff Is the product to bp supplied to Purchaser PRICE Classification No. of UK Origin (Note B) (See Note C) (Note A)

State 'Yes'

or 'No.'

3. Total (Estimated) Contract Price payable by Purchaser in Sterling—&

4. (Declaration) I hereby declare that I am employed in he United Kingdom by the Contractor named, below and have the authority to sign this certificate, ano! that the above information is correct.

Signed Position held Name and Address of Contractor

• ^

Date

"~

NOTES

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

B. SEE; —

(i) HM Customs and Excise Tariff HMSO. (ii) Classification of Chemicals in Brussels Nomenclature HMSO

C. (i) A product is regarded as of 'UK' Origin' if made either wholly from indigenous UK materials OR according to the appropriate EFTA qualifying process using imported materials wholly or in part. (ii) The EFTA qualifying processess are set out in Schedule I of the 'EFTA Compendium for the Use of Exporters', HMSO.

(iii) For the purpose of this declaration it is to be emphasised that the "alternative percentage criterion" DOES NOT APPLY,

(Iv) The words "Area Origin'¹ where they appear in the above Schedule must be taken to mean "UK Origin" only,

(v) For the purposes of this declaration, the "Basic Materials List" (Schedule III of the EFTA Compendium) docs not apply, (vi) If a qualifying process is not listed for t he material in question, advice should be sought from the Crown Agents for Overseas Governments and Administrations, 4 Mill-bank, London SWI.

D. For the purpose of this declaration the United Kingdom includes the- Channel Islands and the Isle of Man.

ANNEXURE III

Form of Application for Letter of Credit Authorisation

To

The Controller of Aid Accounts and Audit, Economic Aid Accounts Section, Ministry of Finance, (Deptt, of Economic Affairs), UCO 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 UK/India

Mixed Project Grant 1975.

Sir.

In connection with the import oi ~ from UK against the above UK Grant we furnish the following particulars to enable you to issue us; authorisation for opening a Letter of Ciedit 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 orders already placed for which L/As have been obtained (A statement of L /A 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 Guarantee¹ and which will open the Letter of Credit.

The Bank Guarantee furnishied b y — — —— and which has been duly

(Name of Bank)

.adjudicated by the Collector in accordance with the provisions of section 31 of the Stamp Act, 1899, is attached.

Yours faithfully,

(Signature of Licensee and

full address)

ANNKXURE IV

JPorm of Bank Guarantee

To

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

Sir,

In consideration of the President of India hereinafter referred to as 'the Government' having agreed to arrange for payment in foreign currency of the price of goods to be imported by

*(i) —• — individual/partners

(ii) -— • —— working under the name

(111) — and style of M/s. — —— - —

name(s) & Address(s).

"Messrs a company having its registered office at . in the State of hereinafter referred to as 'the Importers' under Import Licence No. dated • — Rranted for _-_ Rupees, We, hereby guarantee that we shall arrange deposit to the credit of the Government in the Reserve Bank of India, New Delhi/State Bank of India, Tig Hazari Branch, 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 exchange prescribed for this pur- pose by the C.C.I. & E., which vide Public Notice No. 15-ITC(PN)/ 72, dated 28th January, 1972 read with Public Notice No 308- ITC(PN)/72, dated 21st July, 1972 at present is £ 1 — Rs, 19.06 until further notified through Public Notice, or by the Reserve Bank of India through Exchange Control Circulars to the Authorised Dealers in foreign exchange, along with interest thereon at six per cent per annum from the date of payment to UK suppliers 1o the date of deposit of rupee equivalent and UK bank charges (both dates Inclusive).

(ii) Within seven days of the demand by the Government of such addi- tional amount as may be demanded by the Government as 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 mav be demanded bv the Govern- ment in the event of the importers failinc or neglecting to make anv of the .-ihove mentioned said payments and the decision of the Government as to ?"ch failure or neclect on the part of Importers and as tn the amount payable to the Government "by us hereunder shall be final and bindinc on us.

³- We, — —- agree and undertake not to release shipping documents to the Importers until after the rupee equivalent aB aforesaid and the other dues, if any, as demanded by Government are deposited to the credit of the Government.

4. We, •—-— — agree and undertake not to revoke 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 to time or to postpone for any time and from time to time any of the powers exercised by the Govern- ment of the liberty with reference to the amount of aforesaid or any reason of any such variation or extension of time being given to the Importers of any forbearance, act or omission on the part of the Government of any indulgence by the Government to the importer or by any of the matters or things whatso- ever 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 day of (month) • 197 . We also undertake to make such additional deposits as may be necessarv in terms of CCI&E's Public Notice No. 15-ITC(PN)/72 dated 28-1-1972 read with Public Notice No. 108-ITC(PN)/72, dated 21-7-1972 or as notified from time to time. Unless clHim under the 'bond/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 —— —_ a ll G o v e r n- ment's rights under this bond/guarantee shall be forfeited and we shall be relieved and discharged from all liability thereunder.

Yours faithfully,

P la ce ~ . . . Signature of the Authorised Dated -— 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. *#Thls date shall be arrived at by adding one month to the date by which all payments are expected to be finalised.

ANNEXURE V

UNITED KINGDOM/INDIA MIXED PROJECT GRANT. 1975

Payment Certificate

I hereby certify that—

(i) The payments referred to in the invoice? listed below, which or copies of which accompany this payment certificate have been made or fall due and are due to be made in respect of Contract No. — date —— between the contractor named below and • — (purchaser) — and are in accordance with the particulars of this contract notified in the contract certificate signed on behalf of the said contractor on — _.

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

(ii) the amounts specified in paragraph I, do not include any additional foreign content to that declared in paragraphs 5. 6, or 7 of the con- tract certificate.

(iii) I have the authority to sign this certificate on ibehalf of the contractor named below.

Signed —_ Position held For and on behalf of Name & Address of Contractor

Date

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

ANNEXURE VI

Form of Application for release of Bank Guarantee

To

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

Sir,

We are furnishing below detailed information on the rupee deposit made by us in discharge of our obligations under Bank Guarantee No. • dated for an amount of Rs. with the request that the same may be released and returned to us.

1. The name and full address of the importer/licensee on who.se behalf the bank guarantee was furnished.

2. The import Licence No., — date, value and brief descrip- tion of the commodities allowed for import thereunder.

3. Particulars of the authorisation(s) for opening Letters of Credit obtained from the Ministry of Finance—

(a) Letter No. and Date.

(b) Amount of authorisation.

(c) U.K. Grant No.

4. Particulars of Imports and rupee deposits made (to be given separately for each Letter of Credit Authorisation) —

(a) Particulars of Letters of Credit 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.

(e) Relative Challan No. and date and the name of Treasury/Bank. (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 authorisation(s) lapsed.

or

The letter of credit was opened against the authorisation letter (s) expired unutilised; and

(2) Our obligations under the bank guarantee in question have been duly discharged.

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

Yours faithfully,

Authorised Agent for and on behalf

of the bank.

•Whichever Is applicable.

ANNEXUHE VII Form of utilisation report In respect of U.R./Iudia Mixed Project Grant, 1975 Utilisation report for the period of 1st April to 30th June

1st July to 30th September 1st October to 31st December 1st January to 31st March

The portion not applicable will be deleted. The report will be rendered and availability at the end of the quarter by the 15 of the month following the quarter.

(to be furnished separately in respect of each licence)

1. Name of the Importing Firm. 2. Particulars of U. K. Credit. 3. N 5. aid Date of the Impo:t Licence No. and Date Value in No. and date

Contract & £ of L/A is- the name of sued by CAA the sup- or of plier

transmis- sion to CA.O

. for ap- proval of

_ ^_ , ODA.

4. Value of the import licence. (Both in rupees and

Sterling).,

5. Value of-th: complete co-Uracting documents for- (i)

warded so far to the Ministry of Finance (Please (ii) giv; details of Cintract Nas. and Value issued by (iii) C ntroller of Aid Accounts). Total

6. Payments made to the U. K. Suppliers (up-to-date) Name of Total amount paid in

suppliers Sterling.

7. Paymitus y;:t to b; mide in respect of the contracts (1) already approved. Tne year and the quarters in (ii) w^iich the payments arc likejy to be made may be (iii) Total indicated, |

-do-

8. Value of further orders intended to be placed" on

U. K. suppliers. 9. SurrenderSj if any.

(MISS) ROMA MAZUMDAR,

Chief Controller of Imports & Exports,

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