REGISTERED No. D.(D)-72
The Gazette of India
EXTRAORDINARY
PART I—Section 1
PUBLISHED BY AUTHORITY
No, 199] NEW DELHI, TUESDAY, OCTOBER 19, 1976/ASVINA 17, 1898
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 19th October 1976
SUBJECT,—Licensing conditions applicable to import licences issued under 1976-77 Special French Credit for the Department of Atomic Energy and Space.
No. 105-ITC(PN)/76.—The terms and conditions governing the issuance of import licences under 1976-77 Special French Credit 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
The import licence will be issued in CIF basis, with initial validity period of four months for contracting and twelve months for completing shipments. The initial validity period of the licence for completing shipments will be twenty four months from the date of issue.
(1533)
j OA T HE GAZETTE OF INDIA EXTRAORDINARY PABT I—SBC.1
2. Tho 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 by the CC1&E, which also enjoin that the Customs Authorities and the authorised dealers in foreign exchange will make debits to the value of the licence(s) at the exchange rate specified on the import licenced).
3. Each import Hence will bear n superscription, "Special French Credit, 1976-77". 4. Within a fortnight of the receipt of the impot licence, the importer should intimate to the Department of Economic Affairs (WE-I Section) the fact of receipt of the import licence indicating the number, date and value of the import licence and likely date by which the contract documents would be furnished.
5. The condition regarding contracting will not be deemed to have been complied with unless complete contract documents, ais provided in Para 2.5 below, are funished within the stipulated period of four months,
G.Whcrc this stipulation is not complied with within four months the import licence will be deemed to have become invalid. The import licence may, however, be invalidated •on an application by the party alongwith the licence in original, to the licensing authority giving reasons for noncomplinnpe with the provisions of the import licance.
7. Such request for revalidation would be considered on merit by the I icencing author- ities who may grant extension upto a further maximum period of 4 months. If, however, extension is sought beyond 8 months from the dated of issue of the import 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 the 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 exceeding 10 per cent of the value of the main contract will be entertained.
If, in any caae, the Indian importer apprehends that 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 CCI&E and the WE-I 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 as Agreement signed by both the parties viz., the Indian Importer and French Supplier or it may comprise the order placed by the Indian Importer and the letter of acceptance thereof, in unequivocal terms by the Frencli Supplier.
12. A contract comprising a scries of correspondence between the two parties fre- quently amending/revising the various provisions will not be accepted. In such cases, It ishall be necessary to prepare a final document including therein the terms agreed to by both the parties and signed as suc'n. Orders on Indian Agents of Overseas suppliers and/or order confirmation by such Indian Agents are not acceptable.
HI. TERMS OF CONTRACT
General:
13. The contract should be placed on CTF basis. 'If insurance is paid to an India insurance company in Indian rupees, the contract can be placed on C&F basis, which is in My 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 C.I.F. 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 (WB-T Section), Ministry of Finance, tNew Delhi giving reasons for doing so.
1534
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 trench francs. The Indian agent's commission will bo paid in Indian rupees but will be charged to the total value of the impoil licence.
15. The rupee value ol th© contract will be determined in accordance with the raie ol exchange applicable to the import licence vide para 2 above.
Value Limits of Contracts:
16. The value ol each contract should not be less than FF 60,000.
Origin of Goods:
17. The goods should be of French origin, A stipulation as to the origin of goods should be incorporated in the contiact. Wherever a pait oi the goods in permitted to be of non-French origin, a lettei evidencing approval of the French authorities to the third country imports should accompany the contract. Ports of Shipment:
18. Goods, if necessary, can be shipped, from non-French ports.
Payment 'terms:
19. The Special French Credit does not provide for deferred payments. 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 be provided. Other terms are settled between the buyers and the sellers, in accordance with the normal international commercial practice for the particular type of goods concerned.
21. Howevei, 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 the 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, necessitating a povision 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 deliveries of goods or of the project, the importers should alternatively, agree to the provision for making hundred per cent payment at the time of last shipment subject to the condition that a peformancc guarantee of an approved bank is furnished by the French supplier to the Indian importer; such a guarantee should be discharged at the end of an adequate period after the delivery of the last shipment as agreed mutually between the Indian importer and French supplier.
Other Conditions:
23. To make a contract eligible for financing under the Special French Credit, it .should suitably incorporate the following provisions, apart fiom those indicated above as also any other conditions considered necessary by the contracting parties:
(i) The two contracting parties agrcp that the contract is subject to the approval of the Indian and French authorities For financing under the Special French Credit in terms of the Tndo-French Financial Piotocol and the licensing conditions issued thereunder by the Government of Tndia.
(ii) The French supplier agrees that in the case of imports of enriched uranium he will be paid from the French Treasury Ciedti npto 25 per cent of the value of the contract and the payment of the remaining 75 per cent will be made from the banks credit in accordance with para 30 of licensing conditions; and in the case of imports other than enriched uranium, 1he ratio between the Treasury Credit and banks loan will be 50:50 respectively.
(iii) The Indian importer and the French supplier agree to furnish such information and documents as may be required under the French Credit arrangements between the Government of India and France,
153$ THE GAZETTE OF INDIA EXTRAORDINARY PAHT I—SK, 1
Cwrfomar? Gmnubtm
24. The importer may arrange and provide for in the agreement customary guarantees) which may be necessary for safeguarding his 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, (W&T 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 him 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 Coun- sellor for Economic Affairs, Embassy of France, New Delhi, provided the contract js complete, the 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 notification as above by the Department of Economic Affairs, provided no objection is raised by the Embassy of France within that period.
VI. METHODS OF PAYMENTS
28. Payments are made to the supplier from the French Treasury Loan and the banks credit, on presentation of documents listed in Annexure—II to the Banque Nationale de Paria on the basis of a "Letter of Instruction" to be Issued by the Controller of Aid Accounts & Audit, Department of Economic Affairs, Ministry of Finance UCO Bank Building, Parliament Street, New Delhi, on effectuation of the contract.
29. No remittances from India are permissible under the import licence issued under the French Credit, except in terms of condition 31 below.
30. immediately after payments have been effected in accordance with the letter of instruction referred to above, the original set of documents (negotiable) along with details of bank charges (l/8th of the one per cent documentation charges, plus tax @ 17.60 per cent thereon) and expensos "n posting etc. will be sent by the Bfmque Nationale de Paris to the importer's Bank mentioned in the Letter of Instructions,,
31 Within 10 days, at the maximum, of the receipt of the documents mentioned in para 30 supra, the importers bank will arrange the deposit of rupee equivalent of the FF payments made to the foreign suppliers as Indicated in the invoices together with commission and incidental charged @ I per cent ad valorem, on the payments made to the suppliers. The rupee equivalent will be calculated at the composite rate arrived at on the basis of the formula given in Public Notice No. 15-ITC(PN)/72 dated 28-1-72 as amended by the Public Notice No. 108-ITC(PN)/72 dated 21-7-72 and 8-ITC(PN)/7& dated 17-1-76, or as may be notified by Government of India from time to time; through Public Notices of the Chief Controller of Imports & Exports.
Deposits may be made oither at the RBI, New Delhi, or the S.B.I., Tis H m r i, Delhi-6, or remitted by means of a DD from the Local Branch of the S.B.I, or its subsidiaries, drawn on and payable to the S.B.I. Tis Hazari Branch Delhi-fi (Drawee & Payee> for credit to Central Government account in terms of Ministry of Commerce Public Notice No. 184-ITC(PN)/68 dated 30-8-1968 and Public Notice No. 233-ITC(PN)/68 dated 14-10-68 as modified vide Public Notice No. 74-ITC(PN)/74 dated 31-5-74. The- latest format of the Treasury challan which should invariably be used for making the deposits is enclosed as Annexure—III. All columns of the Treasury challan must be- completed carefully and correctly. The Principal amount, the Incidental charge @ 1 per cent ad valorem should be shown separately. The Demand Draft should be sent direct
1537
to the S.B.I,, Tis Hazari Branch, Delhi with Treasury Challan (duly filled in arid signed by the remitter) in quadruplicate. The Head of account to be credited is 'K-Deposits & Advances (b) Deposits not bearing interest—843-Civil Deposits—Deposits for purchases from abroad under FF 50 million Special French Credit, 1976-77.'
One copy of the treasury challan form evidencing the rupee deposits duly leccipted by the R.B.J., or the S.B.I., Tis Hazari Delhi-6 or information regarding the furnishing of demand draft to S.B.I. Tis Hazari-* should be sent by Registered Post by Bank con- cerned to the Controller of Aid Accounts & Audit indicating reference to the letter of instructions issued by him and also enclosing copies of invoices and shipping documents.
It will be obligatory for the importer to make the requsite rupee deposits through Authorised Dealers only. The Indian Bank will also endorse the amount of rupee depo- sits on the exchange control copy of the import licence and send the requisite 'S' form to the R.B.I., Bombay.
Review of Rupee deposits by the Importers:
32. As soon as the shipments are completed, but not later than one month after the last shipment is cleared, a statement in the form given in Annexurc—>IV will be rendered by the Importers bank to the Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, Parliament Street, Now Delhi, under a registered cover, under advice to the importer. It will be obligatory on the part of the importer to ensure that Anncxure—IV is correctly prepared by the Bank concerned and is rendered to the CAA&A within one month of the completion of shipments author- wed in the relevant letters of instructions.
Any short deposits coming to notice of the importers bank or pointed out by the CAA&A will be immediately made good and a copy of the relevant receipted treasury challan forwarded to the Controller of Aid Account* & Audit for closing the importers account.
33. The Government of India will not undertake any responsibility for disputes, if any which may arise, between the Indian importer and the French tfappBera.
ANNEXURE—I
(In Triplicate)
[Para 25 (iii)]
To
The Secretary, Ministry of Finance, Department of Economic Affairs, WE-I Section, North Block, New Delhi.
Sun.TECT:—Import under the Special French Credit 1976-77.
Sir,
In connection with the import of. . . . —„ — -—-
(short description of tl"e goods or services)
from Fiance under the above credit, we furnish the following particulars:—
(a) Name and Address of the importer—
(b) Import Licence:
(j) Number
(ii) Date (iii) Amount
(c) Name and Address of the French suppliers;
OR
Date of supplier's final letter of acceptance of the order.
fe) Percentage of goods of non-French origin, if any (non-manufactured in France).
j - gg THE GAZETTE OF INDIA EXTRAORDINARY PART ] ~ SE C. f
(f) Value of the contract in French Francs FOB, Price.
Less Indian agent's commission if a n y— -— -^_ . _.
Net FOB Price
plus Freight
C&F Price
plus Insurance if paid in French Franca —.. • , 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 accep- tance) and of the amendment (if any), and two photostat copies of the import licence are enclosed.
3. Debit relating to the transactions are adjustable in the books of —
(Designation and complete postal address of the Accounts Officer) and we shall assure that they are adjusted as soon as 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 1976-77 and issue necessary authorisation to the French authorities to arrange for payments to the suppliers or their bankers.
Yours faithfully,
Licensee.
ANNEXUHE—II
Illustrative List of Documents
(Para 28)
1. Commercial invoice for the value of the equipment shipped and for details of any down payments, as the case may be.
2. Complete set of clean-on board ocean or charter party bills of lading or air way bills, as the case may be, with packing lists where applicable; certificate, if any prescribed in the contracts.
3. Written attestation from the suppliers alongwith necessary customs documents, certifying that the French suppliers have complied with tbe percentage of non-French, expenses authorised by the French Government.
4. Any other documents.
ANNHXDBE—ill
(Para 30
(To be prepared in quadruplicate)
[Format oftheChailan as revised vide para 3 of the Public Notice No. 74- ITC (PN)/74 dated 31-5-1974]
Challan for remittance of Cash (including Demand Drafts) into the State Bank of India, Tis Hazari or Reserve Bank of India, New Delhi for deposit-
ing rupee equivalent of foreign currency payments made out of loan credits received from foreign countries under the direct payment procedures.
To be filled by remitter :
Full particulars of the remittance and authority, if any
r Total Description of loan: credit
Head of Accounts account Officer Whom Ordered
Interest amount deposited
Date of payment to the sup-
Period fo which in- terest is
by whom
plier
paid
amount deposited (Col. 8 + 9)
adjustable
Compo- site rate - adopted for con- version
Ministry ] of Fin. letter of authority No Letter of f Instruction - No&Date
Rupee equivalent of the foreign currency + 1% inci
Name designatioi and ad-3 dress of the person on whose behal money is de- posited
dental charges
Amount in foreign currency in respect of which rupee de- posits are being made
6
8
2
1
II
12 13
10
3
7
9
4
5
Here eater **K-Depos'tsand Advances 843 Civil Deposits—Deposits for purchases etc* abroad— Accountant Genera] Central RevenueSj importer'.; name&address purchases under crediMoan A. New Delhi. **InWords and figures.
Received payment(in words) Rs.
Treasurer Accountant T.O./Agent
1 5 3 9
ANNBXDKB— IV
1 ^ 0
(Para 32)
Formto besabmirted by Importer's Bank immediately after tke completion of Shipments financed under French Credit forKF—<—•
• -dated —for
(i) Name of Importer (ii) Import Licence No.
(iii) B.G. No. date Amount
(To be completed
:
by private sector importer).
T H
f f (iv) Ministry of Finance Letter of Instruction No. dated
(v) Amount ofLetter of Instruction FF
Date of pay- Rupee equiva- 1% Incidental
SBI/Tis**Haza-
S. No.
Amount pa;d by French
lent of the charges
ment by the
Amount of interest
Total deposit actually made
amount in Col.
Amount autho- rised bnt not utilised and
G A Z E T T E
2
Banks to French Supp-
lapsed [Diffe- French Bank to supplier
liers F.F.
ri, RBI New Delhi Trea- sury Challan No. & Date
O F
rence (v)& Col. 2]
I
N D
I
No. of days > intervening between the date of pay- ment to supp- lier to the date of rupee deposits (both- days inclusive)
A
1
6
2
8
10
5
7
4
9 3
E X T R A O R D
I (0 (ii) (iii) (iv) Total
N A R Y
(i) The above information bas been checked fj cm our records and found correct.
P A R T (ii) All Miscellaneous banking charges of the French Banks under the above LI have been remitted direct to them. '•Li) As all obligations in terms of our B.G. No. dated have been discharged the B.G. rcay please be released.
t
—
Signature of Anthoiised Officer of the Bank
A. S. GILL,
S E C
Chief Controller of Imports & Experti.
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