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REGISTERED No. D.(D)-72

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 218] NEW DELHI, SATURDAY, NOVEMBER 20, 1976/KARTIKA 29, 1898

Separate paging is given to this Part in order that it may be filed

as a separate compilation

MINISTRY OF COMMERCE

PUBLIC NOTICES

IMPORT TRADE CONTROL

New Delhi, the 20th November 1976

SUBJECT.—-Facilities to export-oriented industries for the import of machinery.

No. 114-ITC(PN)/76.—Attention is invited to the Press Note dated 30th September and 25th October, 1976 issued by the Ministry of Industry, announcing Government's decisions to liberalise import of capital goods by export-oriented industries.

2. It has been decided that industrial undertakings which have been exporting more than 20 per cent of their total production during the past three years and undertake to continue to export more than 20 per cent of their total enhanced production for the next five years, will be allowed to import machinery freely upto a total value 0f Rs. 1 crore in a year. This is, however, subject to the condition that where an industrial undertaking has been licensed with an initial export obligation of higher than 20 per cent they will have to maintain that higher level of exports and give an undertaking to that effect.

3. Installation of imported machinery under this facility is likely to result in increased productive capacity of the industrial undertaking. If in respect of any item such capacity is likely to exceed by 25 per cent or more of its licensed capacity as a direct consequence of the import of equipment under the aforesaid liberalised policy, it will be necessary for the industrial undertaking to get its industrial licence endorsed for higher capacity. Where the capacity is not likely to exceed by 25 per cent of its licensed capacity, the endorsement of industrial licence for higher capacity will not be necessary.

(1701)

4. The procedure to be followed for submission of applications for obtaining import licences according to the above-mentioned docision of Government will be as follows :

Intending applicants should submit applications to the Chief Controller of Imports and Exports (C.G. Cell) in the form and with enclosures prescribed for application:, for import of capital goods, that is to say, in Form 'B' (CG), giving all the required infoi- rnation/documents. In addition, the following shoulj be furnished:—

(i) Full details of the goods to be imported including the origin of goods. If a number of itemi are to be imported, a detailed list (7 copies) should be attached.

(ii) Documentary evidence in the nature of industrial licence duly endorsed lor higher capacity, in case the productive capacity of the industrial undertaking in respect of any item is likely to exceed bj 25 per cent or more of its licensed capacity, as a direct consequence of the import of the equipment.

(iii) Certificate from a Chartered Accountant certifying the total production and exports (year-wise) during the past three years,

(iv) Declaration about the import licencc(s) already applied for/obtained during the year in question in terms of this liberalised policy.

(v) Declaration to the effect that the machinery to be iinpoited will be used for the manufacture of end-products for which the applicant is licensed or re- gistered, or which he is otherwise permitted to manufacture.

(vi) An undertaking to continue to export annually more than 20 per cent of its total enhanced production for the next five years. Wheic the industrial undei- taking has been licensed with an initial expoit obligation of more than 20 per cent, the declaration should specify that the higher level of exports would be maintained. It should also be indicated whither the party will execute a bond with bank guarantee or a legal agreement in fulfilment of the futuie export obligations,

(vii) Information may be ^iven whether the applicant ilesirjs to avail of the foreign exchange loan facilities from one of the term financial institutions, viz. IDB1, TCIC1, 1FCI and/or the State financial corporations. If such institutions have already approved of -such arrangements, a copy of the approval may be attached.

5. Import of items which arc not normally permissible under the existing import policy will be allowed under this liberalised policy. Applications will be considered either againsc free foreign exchange, foreign exchange loans/sub-allocations from term financial institution^, or bilateral credits. In considering these applications, the procedures of scrutiny from the angle of indigenous availability and clearance of Capital goods committee will be dispensed with.

6. It is clarified that the capital goods bo imported would be required to be actually installed in the industrial undertaking and will not be transferred to other parties,

7. Tt is also notified for the information of the tridc that the balance requirements of such export-oriented industrial units for the import of capital goods, in excess of the prcs cribed limit of Rs. 1 crore in a year, if any, will continue to be consideied, as hitherto, in terms of the existing import policy.

8 The existing provisions contained in Chapters VI to VTTI of the I.T.C. Hand Book of Rules and Procedure 1976-77 may be deemed to have been amended accordingly.

I703

No. 115/ITC(PN)/76.—Appendix 80 of the Import Trade Control Policy (Red

Book—Vol. I) for April 1976—March 1977, contains list of machine tools and machinery—

general, in respect of which it is not necessary to follow the advertisement procedure,

while making applications for import thereof. It has now been decided that import of these

items will be licensed directly by Chief Controller of Import, & Exports without going

through the procedure of Indigenous clearance and reference to Capital Goods Committee.

2. The procedure to be followed for submission of applications for the import of

machine tools and machinery under this liberalised policy will be as follows:

Intending applicants should submit applications to the Chief Controller of Imports and

Exports (Capital Goods Cell), Udyog Bhavan, New Delhi in the form and with the en-

closures prescribed for application for Import of capital goods, that Is, in form 'E1 (CG),

giving all the required Information/documents. In addition, the following information

should be given :—

1705

(U) Information may be given whether th" applicant dMirsa to avail of the foreign exchange loan facilities from one of the term financial institutions viz. 1DBI, ICIC1, IFCI and/or the State Financial Corporation. If such institu- tions have already approved of such arrangement, a copy of the approval may be attached.

3. Applications will be considered either against free foreign exchange, foreign ex- change loans/sub-allocations from term financial institution or bilateral credits. In con- sidering these applications, the procedure of scrutiny from the angle of indigenous availability and clearance of Capital Goods Committee will be dispensed with.

4. It is clarified that the capital goods "o imported would be required to be actually installed in the industrial undertaking and will not be transferred to other parties.

5. The existing provisions contained in Chapters VI to VIII of the Import Trade Con- trol Hand Book of Rules and Procedure 1976-77 may be deemed to have been amended

SUBJECT.—Liberalisation in import of capital equipment.

^ H6/ITC(PN)/76—Attention is invited to The Press Note dated 30th September iy/6 issued by the Ministry of Industry, announcing Government'-, decision regarding liberalisation of policy regarding import of capital goods. It has been decided that entre- preneurs who intend to set up new industrial capacity (including expansion of the existing capacity) will be permitted to import freely capital equipment upto the value of 10 per cent of equipment procured indigenously, subject to a ceiling of R.s. 1 crorc.

2. The procedure to be followed for submission of applications for import of capital equipment under this liberalised policy will be as follows:

Intending applicants should submit applications to the Chief Controller of Imports and Exports (C. G; Cell), Udyog Bhavan, New Delhi, in the form and with the enclosures prescribed for applications for import of capital goods, that is to say, in Form '£' (CO), giving all the required information/documents. Tn addition, the following information should be given:—

(i) Full details of the goods to be imported including origin of goods. If a number of items are to be imported, a detailed list (7 copies) should be attached.

(ii) In cases where a State level or an all-India financial institution has been approached for loan or other assistance, a certificate by that financial insti- tution indicating the value of equipment which is likely to be procured from indigenous sources for the establishment of new industrial capacity (including expansion of the existing capacity) should bo furnished,

(iii) Where no loan or assistance is sought from n financial institution but import is to be financed out of the applicant's own resources, a certificate from the applicant's bank of having placed orders for machinery and of having opened irrevocable letters of credit through the bank on the indigenoxis suppliers, should be furnished,

3. Import of items which are not normally permissible under the existing import policy, will be allowed under this liberalised policy. Applications will be considered either against free foreign exchange or against bilateral credits as may be appropriate in each case. In case where a foreign exchange line of credit is available with a financial insti- tution, and that financial institution certifies that they would provide necessary foreign exchange out of their Hne of credits, an import licence will be issued against the foreign exchange available with financial institutions. In considering these applications, the proce- dures of scrutiny from the angle of indigenous availability and clearance of Capital Goods Committee will be dispensed with.

4. It is clarified that the capital goods so imported would be required to be actually installed in the industrial undertaking and will not be transferred to other parties.

5. It is aho notified for the information of the trade that the balance requirements of entrepreneurs for the W o rt of canital equipment "r" excess of the above-said value i.e. equal to 10 tier cent of the value of indigenous machinery, will continue to be considered, as hitherto, in terms of the existing import policy.

6. The existing provisions contained in Chapters VT to VTIT of the I.T.C. Hand Book of Rules and Procedure 1976-77 may be deemed to have been amended accordingly.

1707

No. 117/TrC(PN)/76.—Attention is invited to the provisions contained in para 131(3) of the Import Trade Control Hand Book of Rules and Procedures 1976-77 in

term* of which applications for a valuo below Rs. 10 lakhs for imports from countries other than rupee payment countries or below Rs. 20 lakhs for imports from rupee pay- ment countries are required to be made direct to the Chief Controller of Imports and Exports (Capital Goods Cell), Udyog Bhavau, New JJelhi.

2. It has now been decided that with immediate effect all applications for import of capital goods by D.G.T.D. Units for a value not exceeding Rs. 2J,000/- for import from countries other than rupee payment countries and U.K. and upto Rs, 50,000/- for import from rupee payment countries and U.K. should be made direct to the regional licensing authorities concerned, under whose jurisdiction the applicant unit is located. Such appli- cations will bo considered by the regional licensing authorities without reference to D G.T.D with regard to the essentiality angle, but import will be allowed only of such items as are permissible in terms of the Import Trade Control Policy. This will mean that for purposes of licensing of import of capital goods within these limits, the procedure that the applicants have to adopt and the powers of the regional licensing authorities would be the same for D.G.T.D. Units as well as for S.S.I. Units.

3 The existing provisions contained in para No. 131(3) of the I.T.C. Hand Book of Rules and Procedure 1976-77 may be deemed to have been amended accordingly.

A. S. GILL,

Chief Controller of Imports & Exports.

WUHTBD BY THE GENERAL MAHAGBR, GOVERNMENT OF INDIA PRESS, MINTO ROAD,

NEW DELHI AND PUBLISHED BY THB CONTROLLER OF PUBLKATIONS, DELHI, 1 9 76