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REGISTERED NO. D. (D)-72

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 35] NEW DELHI, MONDAY, FEBRUARY 9, 1976/MAGHA 20, 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 9th February 1976

SUBJECT.-—Licensing conditions applicable to import licences issued under French Special

Credit 1975-76 for the Department of Atomic Energy and Space.

No. 15-ITC(PN)/76.—The terms and conditions governing the issuance of import licences under the French Special Credit, 1975-76 for the Department of Atomic Energy and Space, as given in the Appendix to this Public Notice, are notified for information.

APPENDIX

I. IMPORT LICENCE

1. The import licence will be issued on CIF basis, with initial validity period of four months for contracting and twelve months for completing shipments. However, in the case of capital goods imports, the initial validity of the licence will be twentyfour months from the date of issue.

2. The rupee value of the import licence shall be determined with reference to the exchange rate notified by the Department of. Revenue (Customs) and prevailing on the date of issue of the import licence and indicated in the body of the import licence(s) as per para 2 of the Public Notice No. 78-ITC(PN)/74 dated the 6th June. 1974. issued

(143)

by the Min. of Commerce which also enjoin that the Customs Authorities and the autho- rised dealers ia foreign exchange will make debits to the vaiuc 01 tne licence^) at ine exchange rate specilied on the unport hcence(s).

3. Each import licence will bear a superscription, "Special French Credit, 1975-76''. The two suffixes in the licence code classification number will be for project a/tE,' and for non-project "S/FN". ' I

4. Within a fortnight of the receipt of the import licence, the importer should inti- mate to the Department of Economic Affairs (WE-1 Section) the fact of receipt of lhe unport licence indicating the number, date and value of the import licence and likely date by which the contract documents would be furnished,

5. The condition regarding contracting will not be deemed to have been complied with unless complete contract documents, as provided in para 27 below, are furnished within the stipulated period of four months.

6. Where this stipulation is not complied within four months, the import licence will be deemed to havo become invalid, The import licence may, however, be revalidaied on an application by the party alongwith the licence in original, to the licensing authority giving reasons for non-compliance with the provisions of the import licence.

7. Such request for revalidation would be considered on merit by the Licensing Authorities who may grant extension upto a further maximum period of two months. If, however, extension is sought beyond upto a further maximum period of two months, licence, such proposals will invariably be referred by the licensing authorities to the Department of Economic Affairs (WE-I Section), Ministry of Finance, North Block, New Delhi. , [

II. CONTRACTING

8. Against the import licence issued under French Credit only one contract on the basis of firm price has to be entered into with the French supplier.

9. However, more than one contract under one import licence may be entered into subject to the permission specifically obtained from the Department of Economic Affairs. giving reasons for doing so, before placing orders.

10. Once a contract has been notified, in accordance with the procedure laid down in Section V below, no amendments to the contract, by way of additions thereto exceed- ing 10 per cent, of the value of the main contract will be entertained.

If, in any case, the Indian importer apprehends tha,t there will be need to enter into amendments to the main contract resulting in the enhancement of its value by more than 10 per cent., he should immediately inform the CCE&E and the WE-l Section of the Department of Economic Affairs, Ministry of Finance of the full facts of the case and seek their guidance.

11. A contract will normally comprise an Agreement signed by both the parties viz., the Indian Importer and French Supplier or it may comprise thc order placed by the Indian importer and the letter of acceptance thereof, in unequivocal terms by the French Supplier. 1

12. A contract comprising a series of correspondence between the two parties frequent- ly amending/revising the various provisions will not bo accepted. In such cases, it shall be necessary to prepare a final document including therein the terms agreed to by both the parties and signed as such.

TIT. TERMS OF CONTRACT

13. General.—The contract should be placed on CIF basis. Tf insurance is paid to an Indian insurance company in Indian rupees, the contract can be placed on C&F basis, which ia in any case compulsory for contracts signed by a government agency or a public sector undertaking. The contract should clearly indicate FOB price, freight and insurance charges separately in the case of CIF contracts and the FOB price and freight charges in the case of C&F contracts.

If any importer desires to enter into a contract on FOB basis, he should seek prior permission of the Department of Economic Affairs (WE-T Section), Ministry of Finance, New Delhi, giving reasons for doing so.

[PART I—SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 145

14, If any commission is to be paid to the Indian agent of the French supplier, it will be shown separately from the value of the contract in French Francs. The Indian agent's commission will be paid in Indian rupees but will be charged to the total value of th" import licence,

15. The rupees value of the contract will be determined in accordance with the rate of exchange applicable to the import licence vide para 2 above.

T^ *™ "y?llle L l m i fs of Contracts.—The value of each contract should not be less than tb 60,000.

17. Origin of Goods.—The goods should be of French origin. A stipulation as to the origin of goods should be incorporated in the contract. Wherever a part of the goods is permitted lo be of non-French origin, a letter evidencing approval of the French authorities to the third country imports should accompany the contract.

18. Ports of Shipment—Goods, if necessary, can be shipped from non-French ports.

19. Payment Terms.—The Special French Credit does not provide for deferred pay- ments. Full payment will therefore be made to the French Supplier against shipments, completion of erection or on commissioning of the plant as indicated in the following paragraphs.

20. Advance Payments—An advance payment of at least 5 per cent, of the FOB Price of the supplies to be paid at the time of the contract coming into effect must bo provided. Other terms are settled between the buyers and the sellers, in accordance with (he normal international commercial practice for the particular type of goods concerned.

21. However, where an amount higher than 5 per cent, is to be provided for payment as an advance, prior approval of the Department of Economic Affairs should be obtained with full justification, before any commitments are made.

22. Other Payments.—Apart from the amount of down payment, the balance amount will have to be paid pro-rata according to the value of the goods covered by each ship- ment, on the basis of the shipping schedule; or plants, the balance amount will have, to be paid at (he time of completion of erection or on commissioning of the plant, or pro- rata according to the value of the goods covered by each shipment.

Where the nature of supplies/services covered by the contract requires a performance guarantee, necessitatinc: a provision to the effect that the last instalment of 10 per cent, shall not fall due prior to the end of an adequate period after completion of the deli- veries of goods or of the project, the importers should alternatively, agree to the provision for mating hundred percent payment at the time of last shipment subject to the condi- tion tTnt a performance guarantee of an approved bank is furnished by the French sup- plier to the Indian importer: such a jmarantce should be discharged at the end of an ndealuate period after the delivery of the last shipment as agreed mutually between the Indian importer and French supplier.

23. Other Conditions.—To make a contract eligible for financing under the Slpecial French Credit, it should suitably Incorporate the following provisions, apart from those indicated above as also any other conditions considered necessary by the contracting parties :

(i) The two contracting parties agree that the contract is subject to the approval of the Tndian and French authorities for financing under the Special French Credit in terms of the Tndo-French Financial Protocol and the licensing conditions issued thereunder by the Government of India.

fii) The French supplier atrrees that in the case of imports of enriched uranhim hf will be p^id from (he French Treasurv Credit upto 25 Per cent, of the) value of the contract and the payment of the remaininc 75 per cent, will be- made from the banks credit in accordance with warn 30 of Ticensfnn conditions: and in the case of imnorts other than enriched uranium, the ratio between the Treasury Credit and bnnks loan will be 50 : 50 respectively.

fiii) The Indian importer and the French supplier acree to furnish such informai- tion and documents rut mav be reouireri under the French Credit Arrange- ments between the Government of Tndra and France.

24. Customary Gnnrante.es.—The importer mav arnnce nnd provide fiv the agree- ment customary pnarantcefs) which may he necessary for safeguarding Tils interest.

IV. SUBMISSION OF CONTRACT DOCUMENTS

25. 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-I Section), North Block, New Delhi:—

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

(ii) Two photo copies of the import licence valid for contracting on the date of execution of the contract/acceptance by French supplier of the order placed on Mm by the importers.

(iii) Other particulars stipulated in Annexure—I in triplicate,

The contract will be processed further only after all these documents have been furnished by the Importer.

'

V. NOTIFICATION OF CONTRACT

26. The contract will be notified by the Department of Economic Affairs, to the Counsellor for Economic Affairs, Embassy of France. New Delhi, nrnvided the contract is complete, and documents are in order, the import licence is valid for contracting and is considered eligible for financing under the Special French Credit.

27. The contract will be deemed to have become effective 20 days after its notifica- tion us above by the Department of Economic Affairs, provided no objection is raised by the Embassy of France within that period.

VT. METHODS OF PAYMENTS

28. Payments arc made to the supplier from the French Treasury lonn -.nd (Tie banks credit, on presentation of documents listed in Annexure-TT to the BRTHWC. Franra'se du-Commerr-e Exterleur Paris on the basis of n "Letter of Instruction" tn tv- issued bv the Controller of Aid Accounts and Audit. Department of Rcr>nom;c Affairs Ministrv nf Finance. UCO Bank Building, Parliament Street. New Delhi, nn effectuation of the contract.

29. No remittances from Tndia arc permissible under the import licence issued under the French Credit, except in terms of condition ?1 below.

30. Tmmcdiateiv after payment"! hav- been effected in nccnrdanri- wi tn rtie. Ww of Instruction referred to above, the original set of documents (neeoHabVI nloni"witTi details of bank charges 0 / 8 th of one per cent documentation chorees rtius tax ^f> 17.fin ner rent thereon) and expense on postinc etc will h* sent by the Banque Francnisp du Commerce Exterieur. Paris to the Importer direct.

31. The importer will intimate to his Accounts Officer fne necessary details of payments and ensure that the Tatter (Accounts Officer¹! nromrttiv ncc.-r>ts th<" debit for the rupee equivalent of the riavments mnde to the French Siirmlicrs. as and when raised bv thr Accountant General. Central Revenues, New Delhi on the basis of the relevant 'advices Issued by the Controller of Aid Accounts & Audit, who afeo receives debits advice from the French bank concerned.

Similarly fhc bank charges (1/Rth of one per cent documentation charges plus tax nt 17 60 per cent thereon"), exnemes on TX5stnaes and cable fee will be notified by the French Bank concerned to the Controller nf Aid Accounts nnd Audit for navment of these charges in free foreien exchnnce. The Controller of Aid Accounts and Audit will autho- rise Chief Accounts Officer, Hiirh Commission for Tndi", London to mak™ th" payment of the above charces and raise debit anainst Accountant General. Central Revcm.Ks. fhroiuzh O.L.A.C. for passing on the samr to the Additional Accountant General (Scientific De- rartmenf), Bombay Advance intimatir-n of such deWts will ^Iso be sent to th- Addi- tional Accountant General (Sci-ntific Departmrnfsi. Bombav for facilltv ir, VnHustment. Snch debit should also be promptlv reported to Accountant General. Ccnfrpi Revenues, Bombay.

VTT MISCELLANEOUS

32. The Government of Tndia win not undertake nnv r-snonsibiiitv for disputes, if any, which mav arise, between the Tndian importer 'and fhc French suppliers,

ANNEXURE I

(In duplicate)

[Para 25 (iii)l

To

The Secretary, Ministry of Finance, Department of Economic Affairt, (WE-I Section), North Block, New Delhi.

SUBJECT:—Import under the Special Credit 1975-76.

Sir,

In connection with the import of — _ — —. — . . __J

(short description of the goods or services) from France under the above credit, we furnish the following particulars:—

(a) Name and Address of the importer— (b) Import Licence:

(i) Number

(ii) Date (iii) Amount

(c) Name and Address of the

French Suppliers;

(d) Date of the contract;

OR Date of supplier's final letter of acceptance of the order

(e) Percentage of goods of non-French

origin, if any (non-manufactured in France).

(f) Value of the contract in

French Francs FOB, Price Less Indian agent's commission if any—— — —

Net FOB Price

Plus Freight — _

C&F Price

plus Insurance if paid in French Francs

Total CIF price to be —— financed under the Credit.

(g) (i) Dates of shipment or on which

services will be performed (ii) Value of each shipment or service performed, as stipulated in the contracts.

(h) The date on which payments under the contract will fall

(i) in respect of advance payment

(at least 5 per cent of FOB Value)

(ii) Other payments.

2. Ten certified copies of the contract (or each of the order and the letter of acceptance) and of the amendment (if any), and two photostat copies of the import licence arc enclosed.

3. Debits relating to the transactions are adjustable in the books of — (Designation & complete postal

and we shall ensure that trney are adjusted as soon as address of the Accounts Officer) they are raised in terms of the licensing conditions.

4. You are requested to get the contract approved for financing under the Special French Credit 1975-76 and issue necessary aiithorisation to the French authorities to arrange for payments to the suppliers or their bankers.

Yours faithfully,

Licensee,

ANNEXURE II

Illustrative List of Documents

(Para 28)

1. Commercial invoice for the value of the equipment shipped and for details of "an;

down payments, as the case may be.

2. Complete set of clean-on board ocean or charter party bills of lading of air wa; bills, as the case may be, with packing lists where applicable; certificate, if any prescribe! in the contracts.

3. Written attestation from the suppliers alongwith necessary customs documents, certi fying that the French suppliers have complied with the percentage of non-French expense authorised by the French Government.

4. Any other documents.

| P. K. KAUL,

Chief Controller of Imports & Export!

£PART I—SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 151

HIT I—SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 153

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NEW IWLHI AND PUBLISHED BY THE CONTROLLER OV PUBLICATIONS. M L H I. 1fl7fl