The Gazette of India
EXTRAORDINARY
PART I—Section 1
PUBLISHED BY AUTHORITY
No. 95] NEW DELHI, THURSDAY, JUNE 9, 1977/JTAISTHA 19, 1899
Separate paging is given to this Part in order that it may be filed as a separate compilation
M1NISTRY OF COMMERCE
PUBLIC NOTICE
IMPORT TRADE CONTROL
New Delhi, the 9th June 1977
SUBJECT.—Licensing conditions for private sector imports and public sector imports under the Yen Credit {Commodity Aid) ID-C2 for 1976-77 extended by the Overseas Economic Co-operation Fund (OECF),
No. 36-ITC(PN)/77.—The conditions governing the issuance of import licence!
for private sector imports and public sector imports under the Yen Credit (Com- modity Ald) ID-C2, for 1976-77 as given in Appendices I & II to this Public Notice are notified for Information
APPENDIX I
LICENSING CONDITIONS IN RESPECT OF PRIVATE SECTOR IMPORTS UNDER THE YEN CREDIT (COMMODITY AID) ID-C2 FOR 1976-77 EXTENDED BY THE OVERSEAS ECONOMIC COOPERATION FUND (OECF)
Section I—General Conditions
I(i). The Yen Commodity Credit for 1976-77 extended by the Overseas Economic Cooperation Fund of Japan (OECF) is united in favour of development countries. Accordingly the commodities and services incidental thereto to be procured under
(407)
4O8 THE GAZETTE OP INDIA EXTRAORDINARY PART I—SEC. 1thin credit can be imported from Japan and all countries enumerated in the list at Annexure—I which will be the eligible source countries under the credflf' However, If commodities imported under the licence contain components originat- ing fromw non-eligible source country or countries, it should be ensured by the Impo. yr, while negotiating a supply contract, that the total c i,f. cost, includmg impt • duties, of such components imported into the country of the supply contract is le , than 80 per cent of the i o.b. value of the supply contract. In such a case, a certificate to this effect should be obtained from suppliers and attached to the supply contract.
I(ii). Tiie licence will bear the superscription "Japanese Yen Credit No. ID-C2", The licence code for the first and second suffix will be "S/JN". These will also be repeated in the letter from the CCI&E forwarding the. import licence.
l(v.i). No remittance of foreign exchange will be permitted against the import licence, except bank charges which may be remitted through normal banking channels. Any payment towards Indian Agents commission should be made in Indian rupees to the agents in India Such payments however, will form part of the licence value and will, therefore, be charged to the licence.
I(iv). The import licence will be issued on CIF basis) with an initial vali- dity of 12 months. For extension of the validity of the licence, the Licensee should approach the licensing authority concerned who shall consult the Depart- ment of Economic Affairs (WE-I Section) m the matter,
I(v). Firm order must be placed either on CIF or on C&F basis on the over- seas suppliers located in Japan or in other eligible countries mentioned In Annexure,—I and sent to the Under Secretary, Department of Economic Affairs (WE-I Section), Ministry of Finance. North Block, New Delhi within 4 months from the date of issile of the import licence. "Firm orders" means purchase orders placed by the Indian licensee on the overseas supplier duly supported by order confirmation, by the latter or purchase contract duly signed by both the Indian importer and the overseas supplier. Orders on Indian Agents of overseas suppliers and/or order confirmation hy such Indian Agent* are not acceptable.
I(vi). This condition of the placement of contracts witbjn 4 months period vrill be treated as not having been complied with unless complete contract documents reach the Ministry of Finance, Department of Economic Affairs, WE~I. Section within four months from the date of issue of the import licence. If firm orders* as explained in para I(v) above cannot be placed Within four months for valid reasons, the licensee should submit the import licence to the concerned licensing authorities giving reasons whv ordering could not be com- pleted within four months. Such requests for extension in the ordering period will be considered on merits by the licensing authorities who may grant exten- sion upto a further maximum period of 4 months If however, extension 13 sought beyond 6 months from the date of issue of this import licence euch pro- posals will invariably be referred by the licensing authorities to the Department of Economic Affairs (WE-I) Section, Ministry of Finance, North Block, New Delhi who will consider such extension on the merits of each case -and commu- nicate their decision to the licensing authorities for communication to the licensee.
Only on production by the licensee of a letter from the licensing authorities sanctioning such extension will be authorised dealers an3 departmental autho- rities permit the facility of bank guarantee, letter of authority for the establish- ment of letter of credit, acceptance of deposits of rupee equivalent, etc., in respect of supply contracts entered in^° under the import licence.
I(vii). All payments must be completed within one month from the expiry of the import licence. Individual payments must be arranged upon shipment of goods. The contract should provide for payment on cash basis £ e. on i>resen- tation of shipping documents No credtf facility of any Mnd will be permitted to be availed of by the Indian importer from the Overseas Supplier. The contract should provide for the period ot delivery of goods as follows: —
"Months after the receipt of Letter of Credit but to be completed latest by the end of • ".
In fixing the terminal date for shipment it should be noted that this datt should not be beyond 30th November, 1978.
409
Section II—Special points to be kept In view while negotiating a Supply Contract
II(i). (a) The value of the contract should be expressed in Yen (Fraction of Yen should be omitted) and should exclude Indian Agent's commission, if any, which should be paid in Indian rupees In no circumstances the contract value should be expressed m Indian rupees or in any other currency The FOB cost, insurance and freight amount may be shown separately but it should be clarified in the contract whether the freight charge^ will be payable on actual basis or whether the freight charges indicated m the contract would be the amount payable irrespective of the actual charges.
(b) The purchase order and supplier's order confirmation should be in English only,
'.
II(n), For individual imports not exceeding Yen 800 mtMiqn in value (exclu- sive of Indian agents commission) the licensee, is free to effect purchases directly from the suppliers without recourse to international tender enquiries from the countries listed in Annexure—I.
Il(ili). Where, however, the supply contracts exceed Yen 300 million in.
value (exclusive of Indian Agents Commission), any one of the following procedures for procurement should be rigidly followed.—
(a) Foimal Open International Tendering; (b) Formal selective International Tendering; (c) Informal International Competitive Procurement.
The above procedure may be relaxed in favour of Informal Competitive procurement or direct purchases where.—
1 a member of qualified suppliers exist in one particular country or in a limited number of countries,
2, purchase of a commodity bv reference to a particular specification,, trade name or designation is necessary in. order to assure the inter- changeability or standardisation of equipment or because of special design requirements
3 purchases are in the category of emergency procurement
The licensee is therefore advised that in case where the procedure at (a) and (b) of para II(lh) above cannot be taken recourse to, a reference to the Department of Economic Affairs shall have to be made, who will consider each such case on merits R
II dv). Where Formal Open International Tendering is resorted to, the following points should be borne in mind: —
(a) Investigations to bid shall have to be, advertised in at least one
newspaper of general circulation in India.
(b) Bid bonds or bidding guarantees are a usual requirement but they
should not be set so high as to discourage suitable rldders.
(c) Bid bonds or guarantees should be released to unsuccessful bidders
os soon as possible after the bids have been opened.
II (v). The payment to the overseas supplier should be arranged through an irrevocable letter of credit to be opened by the Importer's Bank in their favour •which will be routed through the Bank of India, Tokyo under the OECF Yen Credit (Commodity Aid) for 1976-77 the details of which are given in Section VI below.
II (vi) The minimum value of a contract will be Yen 2 million
Il(vii). Only one contract should be entered into for the full value of the Import licence In exceptional cases, more than one contract may be permitted to be entered into for which prior approval of the Department of Economic Affairs, Ministry of Finance, should be obtained soon after the date of issue of the import licence
Il(vin). Eligibility of Supplier—The Supplier shall be a national of the eligible source countries, or a juridicial person governed substantially by
. 10 THE GAZETTE OF INDIA EXTRAORDINARY PART I—Sir. )nationals of the eligible souice countries. In case the Supplier shall be jundicial person, the Supplier shall satisfy the following conditions.—
(a) that a majority of the shares of the juridical person shall be held by
nationals of the eligible source countries;
(b) that a majority of directors of the jundicial Tjerson t,hall be nationals
of the eligible souice country
(c; that a jundicial peison has been registered under thP relevant laws
and regulations m the eligible source countries,
(d) The following gtatement of eligibility by the Supplier shall be added
to each contract:
"I (we) hereby state that my (our) company is an eligible supplier.
as ———percent {%) of the shares are held by nationals of ___. (eligible source country), and — •—• -per cent C7r) of the directors are nationals of — • —(eligible source country), and my (our) company has been registered In—-—
(eligible source country)".
Section HI—Conditions to be incorporated In the Supply Contracts
III(i). The following provisions should be specifically embodied in the supply contract —
III (a) The Contract is- arranged in accordance with the Loan Agreement Vtween the Government of India and the Japanese Overseas Economic Cooperation Fund (OECF), dated the 3rd March, 1977, concerning the Yen Credit No ID-C2. (Commodity Aid) and will be subject to the approval of the Government of India for financing it under the said credit
III(b) Payments to the suppliers shall be made through an irrevocable Letter of Credit to be issued under the Loan Agreement dated 3rd March, 1977 between the Government of India and the' Japanese Overseas. Economic Cooperation Fund (OECF) concerning the Yen Credit No. ID-C2, (Commodity Aid).
III(c) The Overseas Supplier would agree to furnish, such information and documents as miay be required under the Yen Credit arrange- ments by the Government of India on the one hand and the OECF - on the other,
III(d) A certificate in the form indicated in II (viii) (A) above.
Ill(ii). Where the, suppliers are located in Japan, the supply contract should contain a specific clause to the effect that the Japanese Supplier should furnish & report to the Embassy of India, Tokyo immediately after completion of ship- pine arrangement alongwith one copy of the invoice and one copy of the Bill of Lading.
Section IV—Detailed Procedure fer procurement and fljialisatioa of Supply Contract
has been Indicated In Annexure—n
Section V—Contract Approval toy Government of India
V(i). Within the stipulated peiiod for placement of firm orders the licensee should forward to the Under Secretary, (WE-I Section), Department of Econo- mic Affairs, Ministry of Finance, North Blork, New Delhi 4 copies of the contract duly signed by both parties or purchase order hv the Indian importer placed on the Overseas Supplier ^imported bv order rnnSxmntmn in writing by the Overseas Supplier oi their photocopies, complete in all respects, together with two photocopies of the relevant valid import licence and also' with an application (in duplicate) in the form attached a, Annexure—III requesting for issue of Letter of Authorisation for opening Letter of Credit accompanied by a Bank Guarantee in the form prescribed m Annexure—IV duly adjudicated by the Collector of Stamps under Section 31 of the Indian Stamp Act
Wh"re supply contract is based on formal Open International Tendering or Formal selective International Tendering, a certificate t* the following effect should be furnished in duplicate: —
(i) Name of the Newspapers in which the bid specification was published; (ii) Name of parties who quoted against the tender enquiry;
4 ii
(ill) the reason for selecting a particular offer indicating whether it is the lowest technically suitable bid.
V(it). Bank Guarantee—Amount for which a should be executed-—The Bank Guarantee should be for an amount representing the rupee equivalent of the Yen amount for which the Letter of Authority/Letter of Credit is sought plus interest and other charges as mentioned in Annexure—IV The rate of conver- sion shall be at the exchange rate, notified bv the Department of Revenue and Banking and prevailing on the date of issue of the import licence as per para 2 of the Public Notice No 78-ITC(PN)/74, dated the 6th June, I$74 issued by the CCI&E. This rate is meant only for the purpose ot arriving at the value of the Bank Guarantee to be furnished by the Licensee For the purpose of making rupete deposits into Government account iowaids the cost of imports, the rupee equivalent will have to be worked out in the manner indicated in, Section VII below.
V(ni) If the contract documents, Request for issue of letter of authorisation, the Bank Guarantee and other connected documents are found to be wt order, the Ministry of Finance Department of Economic Affairs, WE-I, Section will approve the contract and notify the same to the OECF for their information that contract will be financed under the Yen Credit (Commodity Aid) and simultaneously, forward one set of documents to the Controller of Aid Accounts & Audit, Ministry of Finance, UCO Bank Building 1st Floor, Parliament Street, New Delhi, for issue of necessary letter of authorisation A copy of this com- munication will also be endorsed to the licensee for information.
The above procedure of approvinfi contracts will vpso facto apply to each contract amendment,
Section VI—Payment to the Overseas Supplier—Letter of Credit procedure
VI (i) On receipt trom WE-I Section, Ministry of Finance, Department of Economic Affairs, North Block, New Delhi, the documents mentioned in para v(ui) above, the Controller of Aid Accounts & Audit (.CAAA), Department of Economic Affairs, Ministry of Finance, UCO Bank Building, Parliament Street, New Delhi (hereinafter referred to as CAAA for convenience) will issue a letter of authorisation as in the form attached as Annexure-V to the Indian bank that has furnished the Bank Guarantee for opening the irrevocable letter of credit as in the form attached as Annexure-VI in favour of the Overseas Supplier A copv of this Letter of Authority will be endorsed by, the CAAA to OECF, the Bank of India, Tokyo, Embassy of India in Japan and the WE-I Section, Depart- ment of Economic Affairs, Ministry of Finance,
VI (ii) On the basis of this letter of authority, the Indian bank concerned will establish an Irrevocable letter of credit in favour of overseas supplier con- cerned, and forward the original letter of credit (alongwith four copies thereof) to the Bank of India, Tokyo requesting them to add their confirmation and for- ward it to the overseas supplier (It should be noted that the letter of credit issued on the suppliers bank in respect of private sector imports should be routed invariably through the Bank of India, Tokyo who will add its confirmation). The Bank of India. Tokyo will forward a copy of the letter of credit to the OECF and the CAAA,
The above procedure of opening letter of credit on the basis of letter of authority from the CAAA would ipso-facto apply to all such amendments to letters of authority/letters of credit as may become necessary due to contract amendment
Vl(ni) The overseas supplier shall, after effecting shipment of the goods, present through his bankers, thf. documents specified In the letter of credit to the Bank of India, Tokyo for payment If "the documents are found to be in order, the Bank of India, Tokyo will release the amount specified in the docu- ments to the overseas supplier through his bankers ann will thereafter obtain the reimbursement of the cost of imports from the OECF,
VKIvi Banking charges payable to the Bpnk of India, Tokyo for adding this confirmation to the letter of credit, for negotiations thereunder, and charges if any. of overseas supplier's banker and mtei^st charges pav ble to the Bank of India Tokyo for the period counting fI om the date of nayii^nt bv them of the cost of imports to the overseas supplier to the datp of reimbursement bv the OECF, shall be settled by remittance by the concerned Importer's bank in India
, I2 ^E GAZETTE OF INDIA EXTRAORDINARY PART I—SEC. 1to the Bank of India, Tokyo through normal banking channels without affecting the Government of India.
Section VII—Responsibility of Rupee deposit
VII(i). The original negotiable shipping documents will invariably be for warded by the Bank of India, Tokyo to the concerned importer's bank in India who should release these negotiable set of documents to the licensee only after ensuring that the rupee equivalent of the Yen payments made to the overseas supplier alongwith interest charges thereon calculated at the rate of 9 per cent per annum for the first thirty days and at 15 per cent for the period m excess thereof, reckoned from the date of payment by the Bank of India, Tokyo to the overseas supplier to the date of actual rupee dejposrt, is deposited into Govern- ment of India account in terms of the Public Notice No 46-ITC(PN)/76, dated 16-G-76 The interest is payable for both the days i.e. the day on which payment is made to the overseas supplier and also the day on which rupee deposit is made into Government account vide Public Notice No, 74-ITC(PN)/74, dated 31-5-74 as modified under Public Notice No 103-ITC(PN)/76, dated 12-10-76 The ex- change rate to be adopted for computing the rupee equivalent of the Yen pay- ments will be the composite rate of exchange as laid down in CCI&E Public No- tice No 8-ITC(PN)/76 dated 17-1-76 or as may be notified by Government from time to time through Public Notices of the CCI&E or through Exchange Control Circulars of the Reserve Bank of India Any change in this regard as also In regard to the rate of inicrest will be notified as and when necessary It null be the responsibility of the Indian Bank concerned to ensure that the amounts due 0-re correMti deposited into Government Account before the import docu- ments are handed ojier to the importers'. The licensee should also ensure that the amounts due are correctly deposited into Government Account before taking delivery of the documents from their bankers The Head of Account to which the above Rupee deposit should be credited is "K-Deposits and Advances-843 Civil Deposits—Deposits for purchases etc. abroad Purchases under credit/loans Agreements—credits from the Government of Japan under the detailed head Yen Credit fCommodity Aid) No. ID-C2 for 1976-77 from Japan"
Vll(il) The amount referred to above should be deposited in cash to the credit of the Government either In the Reserve Bank of India, New Delhi or State Bank of India, Tis Hazari, Delhi, or, if this is not feasible, should be remit- ted by means of a demand draft obtained from any branch of the State Bank of India or Its subsidiaries or any one of the nationalised Banks (drawee) drawn on and made payable to the State Bank of India, Tis Hazari Branch, Delhi-8 (drawee and payee), for credit to the Government account as contemplated in Public Notices No 184-ITC(PN)/68, dated 30-8-1M8, No 233-ITC(PN)/88 dated 24-10-1M8, No 132-ITC(PN)/71, dated 5-10-1971, No. 74-ITC(PN)/74 dated 31- 5-74 and No 103-ITC(PN)/76, dated 12-10-1976
VIT(iii) The concerned bank m India shall also furn)sli sur-h additional deposit In the same manner silpulatpd nbove as may be requested by the Government of India on Recount of service charges within seven days after such a demand Is made bv the Government While filling m the various columns in the- challan, It should be ensure^ bv the importors/their bankers that the information prescribed in cam 2 nE Public Notice NO 132-TTC(PNV71, dated 5th October, 1971 and alt.0 in Public Notice No 74-ITO(PN1/74. doled 31st May, 1974 rend with Public Notice No 103-ITCfPN)/76, dated 12th October, 1976 H invanablv indicated in the column "lull particulars of remittance and authority (if any)" of the challan, The following particulars should invariably be furnished in the Treasury Challans —
(a) Ministry of Finance Letter of authority No and date.
(b) Amount of Yen currency in respect of which deposits arc Lo be made
together with rate of conversion adopted.
(&) Date of payment to the overseas supplier,
(d) The amount of Interest paid and the period for which it has been
calculated
(e) Total amount deposited
Thereafter the Treasury challans evidencing the rupee deposit should be sent by Registered post tc> CAAA indicating reference to the letter of authorisation Issued by him and also enclosing copies of invoice and shipping documents,
4i*
"NOTE,—Importer's Banks in India should ensure that the rupee deposits are invariably made within 10 daya of the receipt of the advice of payments and negotiable shipping documents from the Bank of India, Tokyu and that the CAA&A, Ministry of Finance (DEA), New Delhi is kept informed of the fact immediately thereafter"
"VII uv) The concerned bank in India should endorse the amount o£ rupee deposits on the exchange control copy of the licence and send the requisite 'S' form to the Reserve Bank of India, Bombay
VII (v,). After the obligations In terms of the Bank Guarantee and the k'tter of authorisation issued by tht, CAAA m the Ministry of Finance are fuliilled, Lhe concerned Bank m India can apply to the CAAA for the release of hank guarantee. The application for this purpose must be made in the form laid down In Annexure—VII.
Section VIII—Miscellaneous provisions
VIII(l) The impoiter should send a monthly report, after the letter of credit has been openc i, lejiauimg shipments and payments made there aSamst and nhtJiit the balance left, to the CAAA
VIIl(]i), Notifying Supi>hcrs u} Special Conditions —The licensee should apprise the supplier of any special provisions in the import licence which may affect the suppliers in carrying out the transaction
VUI(iij) Deputes— It should be understood thai the Government of India will not undertake any responsibility for disputes, if any, that may arise between the licensee and the suppliers Provisions dealing with settlement o£ disputes should be Included in the condition of the contract,
VIII(IV) Future Instructions—The licensee shall promptly comply with any directions, instructions or orders issued by the Government of India, from time to time regarding any and all matte) s arising from or pertaining to the import licence and for meeting all obligations under the Yen Credit Agreement (Commodity Aid) with the Japanese authorities.
VIII(v). Breach or violation "--Any breach or violation of conditions set forth in the above clauses will result in appropriate action under the Imports and Expurls (Control) Act.
VIII(vi) List of Annexures
Annexure I—List of eligible source countries Annexure II-—Procedure for procurement and fmalisation of supply contract. Annexure IIT— Form of Request for issue of the Letter of Authority for
opening the Letter of Credit
Annexure IV—Bank Guarantee Form. Annexure V—Letter of Authority Form Annexure VI—Form of Letter of Credit Annexure VII -Form of Application for release of Bank Guarantee.
ANNEXURE I
[Re/. Section I—Para I(v)l
LIST OF ELIGIBLE SOURCE COUNTRIES
A. Developing Countries and Territories
(al) Non-OP.E.C. Developing Countries
AFRICA, North of Sahara
I
Egypt Morocco Tunisia
. AFRICA, South of Sahara
II
Burundi Cameroon Cape Verde Islands Central African Ftep Chad Comoro Itilands Congo, People's Republic of Dahomay
Angola
Botswana
AT A THE GAZETTE OP INDIA EXTRAORDINARY PART I—Smc. 1Nicaragua Panama St. Pierre & Miquelon Trinidad and Tobago West Indies (Br.) v i e.
(a) Associated States (4) (b) Dependencies (5)
IV, AMERICA, South Argentina Bolivia Bra7il Chile Colombia Falkland Islands French Guiana Guyana Paraguay Peru Surinam Uruguay
V ASIA, Middle East
Bahrain Israel Jordan Lebanon Oman Syrian Arab Republic United Arab Emirates (6) Yemen Arab Republic Yemen, People's DR. (7) Equatorial Gulnea(l) Ethiopia Gambia Ghana Guinea Ivory Coast Kenya Lesotho Liberia Malagasy Republic Malawi Mali Mauritania Mauritius Moozambique Niger Portuguese Guinea Reunion. Rhodesia Rwanda St Helena and dep.(2) Sao Tome and Principe Senegal Seychelles Sierra Leone Somalia Sudan Swaziland Terro. Afars and Issas Tago Uganda Un. Rep oil Tanazanla Upper Volta Zaire (Republic Zambia
VI. ASIA, South
HI. AMERICA, North and Central
Afghnmtsan Bangladesh Bhutan Burma Maldivis Nepal Pakistan Sri Lanka
VII ASIA, Far East
Bahamas Barbodoes Belize Bermuda Costa Rica Cuba Dominican Republic El Salvador Guadeloupe Guatemala Haiti Honduras Jamaica Martinique Mexico Netherlands Atillea
Brunei Hong Kong Khmer Republic Korea, Republic of Laos Macao Malaysia
(1) Formerly the territory of Spanish Guinea, including the island of Fernando
Po
(2) Including the following islands- Ascension, Tristan da Inaecessibles,
Nightingale, Gough.
(3) Mam islands • Aruba, Bonaire, Curacao, Saha, St. Eustacit, St Martin
(Southern Bart)
(4) Main islands, Antigua, Dominica, Grenada, St Kilts (St Caristephe).
Nevj^-AnRUjlla, St. Lucia and St. Vincent.
(4) Mam islands Antigua, Dominica, Grenada, St Kilts (St. Caristephe),
Islands
(5) Main islands' Montserrant, Gayman, Turks and Caicos, and British Virgin (7) Including Aden and various sultanates and emirates.
41$.
Philippines IX EUROPE
Singapore
Taiwan Cyprus
Thailand Gibraltar
Timer Greece
Viet-Nam, Rep. of Malta
Viel-Nam Dem. Rep. Spain
Turkey
Yugoslavia
VIII OCEANIA (a2) Member or Associate Countries of
OPEO
Cock Islands Algeria
FIJI Bolivia
Gilbert & Elllce Is. Libyan Arab Republic
French Polynesia (8) Gabon
Nauru Nigeria
New Caledonia Ecuador
New Hebricoh (Br and Fr.) Venezuela
Hieu Iran
Pacific Islands (US) (9) Iraq
Popua New Guinea Kuwait
Solomon Islands (Br.) Qatar
Tongo Saudi Arabia
Walhs and Futuna Abu Dhabi
Western Samoa Indonesia
(8) Comprising 1he Society Islands (including Tahiti) The Austral Islands,
the Tuamotu-Garobier Group and the Marquesas Islands
(9) Tru^t Territory of the Pacific Islands, Caroline Islands, Marshall Islands,
and Marina Islands (except Guam).
ANNEXURE II
{Ref Section IVI
MAIN GUIDELINES FOR PROCUREMENT OF COMMODITIES UNDER TH& COMMODITY LOAN AS FORMULATED BY O.E.C F
I Advertising
On all contracts subiect to Formal Open International Tendering invitations to bid shall be advertised in at least one newspaper of general circulation m India
II Bidding Documents and Contracts II—i, Bid Bonds or Guarantees
Bid bonds or bidding guarantees are a usual requirement, but they should not be set so high as to discourage suitable bidders
Bid bonds or guarantees should be released to unsuccessful bidders as soon as possible alter the bids have been opened.
II—2. Conditions of Contract
It is required that any contract to be financed under the Fund's loan shall fulfill the following conditions
0") Conditions of Commodities—The subject items of the Contract shall be produced in the eligible source countries and to be shipped to an Indian port from the eligible source countries If the imported portion from non-eligible source countries is less than thirty per cent (30%) of the following formula, Listed Commodities will be financed even if the Imported portion from non- eltfilble source countries is included as a part of the Listed Commodities in the items of the contract
Formula mentioned abov*:
Imported Price + Import Duty
. L — > 100
Supplier's FOB Price
(2) Conations of Supplier—The Supplier shall be a national of the eligible source cuuriines. or a juridical person governed substantially by nationals Of the
4 16 THE GAZETTE OF INDIA EXTRAORDINARY PART I- SEC 1eligible source countries In case the Supplier shall be a juridical person the Supplier shall satisfy the following conditions,—
(a) that a majority of the charts of the juridical person shall be held by nitionals of the eligible source countries,
fb) lhai a majority of Directors of the juridical person shall he nationals of the eligible source countries, and
(c) that a juridical person has been registered under the relevant laws and regulations In the eligible source eountiios
O) Denomination of currency —The Contract shall be fixed and payable m Japanese Yen without any fraction less than One Yen (Y1.00)
(4) Date of Eligible Contract—The eligible contract to be financed is the one which Is concluded on or after the dale of this Loan Agreement,
(f>) Standard Form of Eligible Contract—(a) The following items shall be inserted in eligible crmiract to be concluded on and after tho date of Loan Agree- ment No. ID-C2 and to be financed by the Fund
(1) Name and Nationality of Supplier and Importer (2) Number and Date of the Contract (li) Name and Origin of Commodities (4) ConLract Price and Quantity (5) Payment terms (fi) Delivery and Shipment Schedule (7) Other General (Regulations
(b) The contract duly signed by both parties or purchase order by the Indian Importer placed on the overseas supplier supported by order confirmation m writing "by the overseas supphci, or their photo copies, are also acceptable to 1he Fund
(c) The following statement of eligibility by the supplier shall be added to each contract
"I We) hereby state that my (our) company is an eligible supplier, as— • per cent (%) of the shares are held hv nationals of——- (eligible source cQuntry), and per cent (%) of the directors are nationals of — (eligible source country), and my (our) company has been registered in- (eligible source country)"
II—n Payment
The full amount of a thipment shall be paid to the Supplier at each time of presentation of the relative shipping docurnents under an irrevocable Letter of Credit
11,-4 Standards
If national standards to which equipment or materials must comply are cited, the specifications should state that commodities meetmtr Japan Industrial Standard or other internationally accepted standards, which ensure an equal or higher quality than the standards mentioned, will also be accepted
11-^5, Use of Brand Namen
Specifications should be based on performance capability and should only pres- cribe brand names, catalogue numbers or products of specific manufacturer if specific ypare parts are required or it has been determined that a degree of stan- dardization la necessary to maintain certain essential features
In the latter case the specifications should permit offers of alternative commo- dities which have similar characteristics and provide performance and quality at least equal to those specified
II—6 Giinrantees and. Performance Bonds
Bidding documents should require some form of surety to guarantee, If neces- sary This surety can be provided either by a bank guarantee or by a -oerformance bond.
4i?
H^-7. Liquidated Damage
Liquidated damage clauses, if necessary, should be included in bidding docu- ments when delays in delivery will result in extra expenditure, loss o± revenues or loss of other benefits to the Importer.
II—8 Force Majeure \
The conditions of the Contract included in the bidding documents should con- tain clauses, when appropriate, stipulating that a failure on Ih* part of the partial to perform their obligaliong under the Contract shall iot be considered u deiault under the Contract if such failure is the result of an event of force majeure 'to be defined in the conditions of the Contract)
Ur-T-D. Settlement of Disputes
Provisions dealing with the settlement of disputes should be included in the con- ditions of the Contract It is desirable that the provisions should be based on "Rules of Conciliation and Arbitration" which have been prepared by the Inter- national Chamber of Commerce or on such other arrangements as may be mutually- acceptable to the Indian importer and the Overseas supplier
II^IO. Language Interpretation
Bidding documents should be prepared in English if other language should be used in the bidding documents, English should be added to such documents and it is required to specify which is governing
HI Bid Opening, Evaluation and Award of Contract
III—1 Time Interval bmween Invitation and Submission of Bids
The time allowed for preparation of bids will depend to a large extent upon the magniiude and complexity ol the contract Generally not less than 30 days should be allowed for international bidding The lime allowed, however, should be govern- ed by 1he circumstances relating to each contract
III—2 Bid Opening Procedures
The date, hour and place for the Latest receipt of bids and for the bid opening should be announced In the invitations to bid and all bids should be opened publicly at the stipulated time Bids received after this time should be returned un- opened The name of the bidder and the total amount of each bid and of any alter, native bids. If they have been requested or permitted, should be read aloud and recorded
III—3 Clarifications or Alteration of Bids
No bidder should be permitted to alter his bid after the bids have been opened. Only clarifications not changing the substance of the bid may be accepted The importer may ask any bidder for a clarification of his bid but should not ask any bidder to change the substance or the price of his bid.
Ill—4. Procedures to? be confidential
Except as may be required by law, no information relating to the examination clarification and evaluation of bids and recommendations concerning award should be communicated after the public opening of bids to anv persons not officially con- cerned with these procedures until the award of a contract to the successful bidder is announced
III—5 Examination of Bids
Following the op-eninc;, it should be ascertained whether material errors In com- putation have been made in the bidt, whether the bids are fullv responsive to -the bidding documents, whether the renuiwd sureties have been provided whether documents have been properly signed and whether the bids are otherwi"ie generally In order If a bid does not substantially conform to the specifications or contains inadmissible reservations or Is not otherwise substantially responsive to the bidding documents, it should be rnec*ed A techmc il analysis should then be made to evaluate each responsive bid and to enable bids to be compared
^ I8 THE GAZETTE OF INPIA EXTRAORDINARY PART I -S E C. 1Hi—S- Post qualification of Bidders
In the absence of prequaliflcations, Me Importer should determine whether the bidders whose bid has been evaluated the lowest has the capability and financial resources effectively to carry out the Contract concerned If the bidder does not meet that test, his bid should be rejected.
Ill—7. Evaluation and Comparison of Bids
Bids evaluation must be consistent with the terms and conditions wst forth in the bidding documents In addition to the bid price, adjusted to correct arithmetical errors, other factors such as the time of delivery, the efficiency and compatibility of the equipment or the availability of spare parts, should be taken into consideration. To the extent possible, these factors should be expressed in monetary terms accord- ing to criteria specified In the bidding documents The amount of escalation for price adjustments, if any, included in the bids, should not be taken Into consideration,
A detailed report on the evaluation and comparison of bids setting forth the specific reasons on which the determination of the lowest evaluation bid Is based should be prepared by the Importer
III—8. Rejection of Bids
Bidding documents usually provide that Importers may reject all bids How- ever, all bids should not be rejected and new bids invited on the same specifications sulely for the purpose of obtaining lower prices In the new bids, except in casea where the lowest evaluated bid exceeds the cost estimates by a substantial amount. Rejection of all bids may also be justified when (a) bids are not responsive to the intent of the bidding documents, or (b) there is a lack of competition If all bids" are reacted, the borrower should review the cause or causes justifying the rejec- tion and either consider revisions of the specifications or modification in the com- modities (or amount of the commodities on items called for m the original invita- tion to bids) or both In Special circumstances, after consultation with the Borro- wer, the importer may negotiate with one or two of the lowest bidders to try to obtain a satisfactory contract.
IIIi—-9 Award nf Contract
The award of a contract should be made to the bidder whose bid, has been deter- mined to be the loweit evaluated bid and who meets the appropriate standards of capability and financial resources Such bidder should not be required as a condi- tion of award, to undertake responsibilities on commodities not stipulated In the specifications or to modify his bid
ANNEXTTRE III
[Ref. Section V--Para V(i)]
REQUEST FOR ISSUE OF THE LETTER OF AUTHORITY
No. Date
To
The Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs. TT C O Bank Building, 1st Floor Parliament Street, New Delhi-110001
SUBJECT—Import ot from Japatn under the Yen Credit (Com-
moditu Aid) for No. 1D-C2 for 1976-77.
Sir,
In connection with the import of from Japan under the above- mentioned Yen Credit CCommoditv Aid) (Loan Agreement No, ID-C2) we fur- nish the following particulars to enable you to issue the Letter of Authority to the (name of the Bank which should be the same as given in (n) below for o^eninf; a letter of credit in favour of the Overseas Supplier concerned).
(a) Name and Address of the Indian Importer
419
(b) Number, date and value of the import licence and DatP up to which
it is valid.
(c) Method of procurement—whether it is based on direct purchase or Formal Open International tendering in which case it should be indicated whether the contract has been awarded on the basis of lowest technically suitable offer with reasons, if any.
(d) Brief description of the goods. (e) Origin of tho goods. (f; Percentage of the import components from non-eligible sourca coun- tries, if any.
(g) Value of contract (in Yen)—It should be clearly indicated whether it is C&F or CIF.
(h) Amount of Indian agents commission (in Yen), if any, payable in Indian rupees and the net value in Yen payable to Overseas Sup- pliers.
(i) Value (in Yen) for which the Letter of Authority is requested. (j) Number and date of the contract with Overseas Suppliers. (k) Name and Address of the Overseas Supplier
(i) Nationality (li) Percentage of the shares held by Nationals of the eligible source
countries.
(hi) Nationality of the representative and/or President of the Supplier. (iv) Percentage of Directors who are Nationals of eligible source countries (1) Payment terms and probable dates on wheh payments under the con-
tract will fall due.
(m) Expected date of completion of deliveries, (n) Name and address of the importer's Bank in India (which will bP the bank that has furnished Bank Guarantee),
(o) Number, date and value of the Bank Guarantees indicating the period
up to which it is valid
(p) Whether a contracts) under the same licence has been placed and notified to the O.E.C F and If so, the name, date and value of each such contract and the reference of the Ministry of Finance under which it has been notified to the O.E.C.F.
Signature
ANNEXURE IV
IHef. Section V—Para V(ii)]
GUARANTEE BOND
To
The President of India
In consideration of the President of India (hereinafter culled 'the Govern- ment') having agreed to arrange foi payment m Yens for the import of— — . -by— —(hereinafter/called the 'importer') against the import licence No,- •• — d a t e d —— —-—-issued under the terms and conditions of Yen Credit (Commodity Aid) No ID-C2, we " —-— Bank, at the request of the importpr hereby undertake to arrange to depost, the amounts of disburements made bv the Bank of India, Tokyo converted at ihe prevailing composite rate of conveision laid down in CCI&K's Public Notice No. 8-ITC (PN) /7fi dated 17th January, 1976 or as notified from time to time In Public Notices/AD, Circulars within ten days of the receipt of admce of payments for credit to the Government account in the manner and against the appropriate Heads of Account as indicated bv the Government of India under the said credit together with interest thereon at the rate of 9 per cent per annum for the first thirty days and at the rate, of 15 per cent r>er annum for the period excess thereof reckoned from the date of payment to the overseas supplier to the date of deposit of Rupee equivalent for credit to the Government account. The negotiable set of import documents received from the Bank of India,
420 THE GAZETTE OF INDIA EXTRAORDINARY PART I—SEC. 1Tokyo, will be released to the Importer only after the rupee deposits contem- plated above have been made.
2- We> the— ~ —-(Bank), also undertake to indemnify and keep indemnified the Government against any default m payment by the importer of any sum that may be due and payable from time to time by the Importer to the Government at such place and in such manner as the Government may from time to time direct, such sums not exceeding Rs , or any part thereof, for the time being due and payable by the importer, together with interest tJiereon at the rate of 9 per cent per annum for the first 30 days and at rate of 15 per cent per annum for the period excess thereof reckoned from the date of payment to the overseas supplier. The decision of the Government as to any default in the said payment by the importer, or on. hjs part and In regard to the amount payable in the Government by us-—• (Bank), shall be final and binding on us (Bank).
3 We,- ——(Bank), further agree that in case of increase in the value of imports or increase in the value of unfulfilled deliveries under the contract as a result of change in the composite rate of exchange mentioned in para 1 above, the amount of this guarantee bond will be adjusted as on the date when the change takes place, m proportion to this change.
4. We -— —,— (Bank), further agree that the guarantee herein contained shall remain in full force and effect during the period that would be taken for the performance of the said agreement/contract and that it shall continue to be enforceable till all the dues to the Government under or by virtue of this guarantee, have been fully paid and its claims satisfied or dis- charged.
5. The guarantee herein contained shall not be affected by any change in the constitution of the importer or the (Bank), and the Govern- ment shall have the fullest liberty with out affecting the guarantee to postpone for any time and from time to time of the powers exerclsable by it against the Importer and th& — (Bank) shall not be released from Its liability under this guarantee bv anv exercise of the Government of the liberty with reference to the matter aforesaid or by reasons of time being given to the Importer or any other forebearance, act or omission on the part of the Govern- ment or any matter or thing the Government to the importer or by any other matter or thing whatsoever which under the law relating to sureties shall, but for this provision have the effect of so releasing the (Bank) from its such liability.
0, ^ -ei _T_ _r. — _. _ (Bank), lastly undertake not to recoke this guarantee during its currency except with previous consent of the Government In writing.
7 Our liability under this bond/guarantee is restricted to Rs. • (plus interest and all banking charges, not expected to exceed 1 per cent of the guarantee amount), and this guarantee shall remain In force till*• the date of — (month) —19 Unless claims under this bond/guarantee are made in writing within six months of this date and unless suit or action to enforce these claims is commenced within another six months thereafter, i e ., upto -all Government's rights under this bond/ guarantee shall be forefleted and we shall be relieved and discharged from all liability thereunder
Date the —day of • 19 .
for —— — (Bank)
Accepted for and on behalf of the President of India by Shri — — — ——
(Name and Designation)
Signature
Signature
•*ThIs date shall be arrived at bv adding one month to the date up to which the Letter of Credit is required to be kept valid
NOTE. The value of the stamped paper on which this guarantee Is to b" executed is to be adjudicated by the-Collector of Stamps under Section 31 of the Indian Stamps Act
4 21
ANNKXURE V
[Ref. Section VI—Para VI (i)]
FOR PRIVATE SECTOR IMPORTERS (LETTER OF AUTHORITY FROM)
No. F.
GOVERNMENT OP INDIA
MINISTRY OF FINANCE
(Department of Economic Affairs)
New Delhi, the
To
(Indian Importers' Bank)
SUBJECT.—Import .under Yen Credit (Commodity Aid) Loan Agreement No.
ID-C2 Issue of Letter of Authority for opening Letter of Credit—
Imptin Licence No— dated
Dear Sirs,
With reference to your Bank Guarantee No — dated
and letter No dated . from M/s. (Importer) in which they have requested permission for opening a letter of credit through your Bank under the Yen Credit (Commodity Aid) No. ID-C2, I am to enclose the Department of Economic Affairs Letter of Authority (format attached as Appendix I to this Annexure V) No. dated issued to the Bank of India, Tokyo with one spare copy authorising them to arrange payments upto Yen —to the overseas suppliers. This letter of authority should be sent by you to the Bank of India, Tokyo Branch alongwith the letter of credit opened by you
2. You are hereby authorised to open the Letter of Credit for an amount not exceeding Yen within a period of thirty days from the date of this letter under intimation to this Department In terms of para 10 Section VTT of Exchange Control Manual, you are required to ensure thatt he date of expiry of the Letter of Credit is not later than 45 days after the final date for shipment as stated in the relative import licence or the date indicated in the Letter of Authority whichever Is earlier. Before opening the Letter of Credit, it may please be ensured that the importer^ are in possession of valid import licence
3. The Letter of Credit opened by you will incorporate a clause that it will be effective only after it has been confirmed by the Bank of India, Tokyo. The Letter of Credit will, therefore, have to be routed through that Bank requesting them to add their confirmation to the effect that they undertake to pav on presentation of documents in terms of the Yen Credit (Commodity Aid) No ID-C2 Bank of India, Tokyo, will forward the letter of credit after adding its confirmation to the overseas supplier through his bankers.
4. The amount of the Letter of Credit should not exceed without a specific authorisation from this Ministry
5 The banking charges and interest charges of the Bank of India, Tokyo and charges if any of overseas suppliers bankers will on demand to remitted by you direct to the Bank of India, Tokyo, through the normal banking channels,
6. You are requested to arrange to deposit the rupee equivalents of the Yen payments to the overseas suppliers in terms of the Guarantee furnished by you, within 10 days of the receipi of domucents from the Bank of India. Tokyo. The rupee equivalent of amonuts disbursed to the suppliers will have to be calculated by applying the composite rate of conversion as prevailing on the date of payment to suppliers in accordance with the Public Notice No, 8-ITC(PN)/76 dated 17th January, 1976 or such otter Public Notices, which may be issued from time to time. Interest at the rate of 9 per cent per annum for the first thirty days and at the rate of 15 per cent per annum for the period
4 22 T HE GAZETTE OF INDIA EXTRAORDINARY PART I—SEC. Iexcess thereof reckoned for the period between the date of payment to the supplier and the date on which the rupee equivalents are to be deposited into Government account m terms of Public Notice No. 46-ITC(PN)/76 dated 16th June, 1070, will also have to be credited alongwith the above amount to the Government of India's account. The Interest is payable for both the days i.e. the day on which payment is made to the overseas supplier and also the date on which rupee deposits is made into Government account (Any change in this rate will be intimated if and when made). It will be your respoiiswility to arrange for the DEPOSIT OF THESE AMOUNTS correctly, before the import documents are HANDED over to the importer.
7. These amounts should be deposited either with the Reserve Bank of India, New Delhi, or the State Bank of India, Tis Hazari, Delhi or remitted by means of a demand draft obtained by you from any Branch of the State Bank of India or its subsidiaries or any one of the nationalised banks (drawer drawn on and made payable) to the State Bank of India, Tis Hazari Branch-Delhi-G (drawee and payee) In this connection your attention is also invited to the provisions of the Public Notices No 233-lTC(PN)/68 dated 24th October, 1968 and No. 184-ITC(PN)/68, dated 80th August, 1968 No. 132-ITC(PN)/71, dated 5th October, 1971, -No 74-ITC(PN)/74 dated 31st May, 1974 and No. 103-ITC(PN)/76 dated 12th October, 1976 The Head of Account to be credited is "K-Deposit and Advances-843-Civil-Deposits-Deposits for purchases etc from abroad-Purchases under credit/Loan Agreement-Credits from the Government of Japan under detailed head Yen Credit (Commodity Aid) No. ID-C2 for 1976-77 from Japan".
8. One copy of the challan in original, in cases where the rupee equivalents are credited in cash at the Reserve Bank of India, New Delhi, or the State Bank of India, Tis Hazari, Delhi as prescribed in Public Notice No 132-ITC(PN)/71 dated 5th October, 1971, and Public Notice No 74-ITC(PN)/74, dated 31st May, 1974 should be sent by you to the address given below alongwith a forwarding letter giving deposit and citing reference to this communication.-—
The Controller of Aid Accounts and Audit, Ministry of Finance, Depart- ment of Economic Affairs, 1st Floor UCO Bank Building, Parlia- ment Street, New Delhi-110001.
In case where the rupee equivalents are remitted by means of demand drafts as laid down in the Public Notice No. 233-ITC(PN)/68 dated 24th October, 1968, mentioned above, intimations thereof should be sent to the address given above. In all cases, full particulars of the rupee equivalents deposited alongwith the amount of interest paid and the period for which interest has been calculated should be furnished to this Department
The receipt of this letter may please by acknowledged.
Yours faithfully,
Accounts Officer.
Copy forwarded to: —
1 M/fi. (Importer) for information, with reference to their letter quoted above. A copy of the Letter of Authority is also enclosed
2. Bank of India, Tokyo, for information and necessary action m terms of their Agreement with the Government of India dat^d 30th October, 1976
3 The Director, Loan Department II, Overseas Economic Cooperation Fund, lino Building, 1-1, Uchisaiwai-cho, 2Chome-Ch7yoda-ku, Toftvo.
4. Embassy of India, Tokyo, for Information.
5. Under Secretary (WE-I Branch), Department of Economic Affairs, alongwith a copy of Letter of Authority with reference to their letter No.
dated
Accounts Officer.
4*3
APPENDIX I TO ANNKXUBE V
LETTER OF AUTHORITY NO.
No. F.
GOVERNMENT OF INDIA.
MINISTRY OF FINANCE
(Department of Economic Affairs)
New Delhi, the
To
Bank of India, Tokyo Branch, Tokyo (Japan)
SUBJECT.—Import under Yen Credit (Commodity Aid) Loan Agreement Wo. ID-C2—Issue of Letter of Authority for confirmation of Letter of Credit
Dear Sir,
' In accordance with the terms and conditions of t he agreement dated 30th October, 1976 entered into with your Bank, we hereby authorise you to confirm the Letter of Credit to be opened by (Indian Bonk) favouring (Overseas supplier) for Yen— — —covering t he import of- aguinst contract entered into by (Iruhan Importer), to be forwarded to t he beneficiary and to pay t he amount under t he said Letter of Credit on presenta- tion of the requisite documents thereunder.
2 After each payment, the shipping and other documents (negotiable) may be forwarded direct to (Indian Bank) alongwith a payment advice and you must claim immediately reimbursement of the amounts paid by furnishing necessary documents to the O E CF As and when any payment is m*de t>y you and reimbursement is made to you, an advice in t he prescribed form should be sent to this Ministry
3. Your banking charges and charges if any of overseas Supplier, bankera and interest charges under t he above Letter of Credit will be settled directly with you by the (Indian Bank)
4. This authority will remain valid upto —•—•
Yours faithfully,
Accounts Officer.
ANNEXUHE VI
[Eef Section VI—Pare VI (ill]
IRREVOCABLE TETTER OF CREDIT
Date
L /C No.
ITo • . This Letter of Credit has been issued pursuant to Loan • ~r— Agreement No —-———, dated *———— .—
TName 3id Arld™ss of hetweer (borrower) and THE OVERSEAS ECONOMIC the Advising Bank) COOPERATION FUND, Tokyo, Japan.
Dear Sirs,
We request you to advise (Name avd address of the Supplier) that we have opened our irrevocable credit No — — in their favour for account of (Name of the purchaser) for a sum or aims not exceeding an aggregate amount of •
fax THE GAZETTE OF INDIA EXTRAORDINARY PART I -S E C. 1(say Yen ) available by beneficiary's drafts at sight lor full invoice value drawn on (the designated foreign exchange bank in Tokyo),
To be accompanied by the following documents'
£ ^ned commercial invoice In P.,.'king list in Certificate of Origin in Full set of clean on board ocean bills of lading made out to order and blank endorsed and marked "Freight " and "Notify (Other documents)
to
evidencing shipment of (Brief description of goods referring to Contract No from Partial shipments are permitted. Transhipment if permitted. Bill of lading must be dated not later than , 19 Drafts must be presented to the drawee not later than , 19
"Drawn undpr (Name of the Issuing Bank) irrevocable credit No. dated 19 and Import Reference no. (s) (ifany)"'-
This credit JS not transferable
We hereby undertake that all drafts drawn under and In compliance with the terms of this credit, shall be duly honoured on due presentation and delivery of. documents to the- drawee
Unless otherwise expressly stated, this credit is subject to "Uniform Customs and Practice for Documentary Credits (1974 Revisions), International Chamber oi Commerce, Publication No. 290"
Special instructions to the negotiating bank
1, This credit shall become effective when (the designated foreign exchange bank In Tokyo), acknowledged receipt of the Letter of Commitment from THE OVERSEAS ECONOMIC COOPERATION FUND under the aforementioned Loan Agreement.
After obtaining the reimbursement from THE OVERSEAS ECONOMIC CO- OPERATION FUND in accordance with the provisions of the Letter of Commit- ment (the designated foreign exchange bank in Tokyo) undertakes to remit the amount of the drafts in accordance with Instructions issued by you.
2 You must forward the drafts and one complete set of documents to (the designated forelgn exchange bank in Tokyo) together with the certificate stating that the remaining documents have been airmailed direct to us.
3. All banking charges under this credit are for account of (the Imported under the said Loan Agreement.
Yours faithfully,
(Name of the Issuing Bank)
By
(Authorized Signature)
ANNEXUHE VII
IRef. Section VII—Para VII (v)]
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, 1st Floor, Parliament Street, New Delhl-1.
Sir
We are furnishing below detailed information on the rupee deposits made by us in discharge of our obligations under Bank Guarantee No.
425
dated for an amount of He. "• —— with the request that the same may be released and returned to us.
1 The name and full address ol the importer/licensee on whose behalf the Bank Guarantee was furnished
2 The import licence No , date, value, brief description of the equipment and/or commodities allowed for import thereunder.
3 Particulars of the authorisation (s) for opening Letters of Credit obtained from the Minibtrj o£ Finance (to be given separately for each letter of authorisation).
(a) Letter No and date.
(b) Amount of Authorisation
(c) Japanese Yen Credit No.
4 Particulars of impolU and rupee deposits made (to be given separately for each Letter of Credit Authorisation)
(a) Particulars of Letters of Credit opened (No, date, value, the sup-
plier's name).
(b) Invoice No and date relative to each Letter of Credit.
(c) Amount of Invoice (Net) in Yen
(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 No. and date of the Letter with which tne draft wag sent to the State Bank of India, Delhi.
5 Amount utilised and balance unutilised (Yen) in each Letter of Credit Authorisation
II. We certify that.—
(1) • The balance amount of Yen " .— —available in the authorisation (s) given by the Ministry of Finance has not been uti- lised/will not be utilised
OR
No letter of credit was opened under the authorisation (s) and the authorisation (s) lapsed.
OR
The letter of credit was opened against the authorisation letter (a) expired unutilised, and
(2) Our obligations under the bank guarantee In question have been fully discharged.
III. We confirm that the interest and banking charges of the Bank of India, Tokyo and charges if any, of overseas suppliers Bankers relative to this transac- tion have been remitted by us to the Bank of India, Tokyo.
IV 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.
^5 THE GAZETTE OF INDIA EXTRAORDINARY PART I—SEC. 1APPENDIX II
LICENSING CONDITIONS IN RESPECT OF PUBLIC SECTOR IMPORTS UNDER •THE YEN CREDIT (COMMODITY AID) ID-C2 FOR 1976-77 EXTENDED BY
THE OVERSEAS ECONOMIC CO-OPERATION FUND (OECF)
Section I—General Conditions
I(i). The Yen Commodity Credit for 1976-77 extended by the Overseas Econo- mic Coopeiation Fund of Japan (OECF) is untied m favour of developing countries. Accordingly the commodities and services Incidental thereto to be procured under this credit can be imported from Japan and all countries enumerated in the list at Annexure I which will be the eligible source countries under the credit. However. If commodities imported under the licence contain components originating from a non-ehgible source country or countries, It should be ensured by the importer, while negotiating a supply contract, that the total c,i f. cost, including import duties, of such components imported Into the country of the supply contract is less than 30 per cent of the f o b. value of the supply contract In such a case, a certificate to this effect should be obtained from suppliers and attached to the supply contract.
I(ii) The licence will hear the superscription "Japanese Yen Credit No. ID-C2". The licence code for the first and second suffix will be "S/JN". These will also be repeated in the letter from the CCI&E forwarding the Import licence.
I (Hi) No remittance of foreign exchange will be permitted against the import licence, except bank charges which may be remitted through normal banking channels. Any payment towards Indian Agent's commission should be made in Indian rupees to the agents m India Such payments however, will form part of the licence value and will, therefore be charged to the licence
I(iv) The import licence will be issued on CIF basis with an initial validity of 12 months For extension of the validity of the licence, the Licensee should approach the licensing authority concerned who shall consult the Department of Economic Affairs (WE-I Section) (n the matter.
I(v) Firm older must be placed on C&F basis on the overseas suppliers located in Japan and in other eligible countries mentioned In Annexure-I and sent to the Under Secretary, Department of Economic Affairs (WE-I Section), Ministry of Finance, North Block, New Delhi within 4 months from the date of Issue of the import licence "Firm orders" means purchase orders placed by the Indian licensee on the Overseas supplier duly supported by order confirmation by the latter or purchase rontract duly signed bv both the Indian importer and the overseas sup- plier Orders on Indian Agents of overseas suppliers and/or order confirmation of such Indien Agents are not acceptable.
Ifvi) This condition of the plnrement of contracts within 4 months period will be treated as not having been complied with unless complete contract documents reach the Ministry of Finance, Department of Economic Affairs, WE-I Section, within four months from the date of issue of the import licence If firm orders as explained m para 1 (v) above cannot be placed within four months for valid reasons the licensee should submit the import licence to the concerned licensing authorities giving reasons why ordering could not be completed within four months. Such requests for extension in the ordering period will be considered on merit by the licensing authorities who may '{rant extension rnfo A further maximum period of A m'v^hs If however, e\tension is sought beyond 8 months from the date of issue of Ibis import Hcprico, p.irh rror>osnlE will invariably be refprrpd by the licens- ing anthoT-ifiPS to tbe Df"inrtmeif of "Economic ^flairs (WE-I Section), Ministry ol Finance North Hlo^k New Delhi who will consider such extension on the merits of each case and communicate their decision to the HcenFlnsj authorities for com- mun^c-Hoi to the licensee
Or>lv ni production of the licensee of a letter from the licensing anihorlties sanctioning such extension will the authorised dealers and departmental authori- ties permit the facility oi lr>tte" of authority for the establishment of letter of credit, aeeentanee of departs of nroee equivalent, etc in respect of supply eon- tracts entered into under the import licence.
I(vii) 411 payments must be completed within one month from the expiry of the Import licence Individual naymenls must be arranged upon shipment of goods. The con' i\iet should provide for payment on cash basis I.e. on presentation of shipping documents. No credit facility of any kind will be permitted to be availed
427
of by the Indian importer from the Overseas Supplier. The contract should provide the period of delivery of goods as follows
" Months after the receipt of Letter of Credit but to be completed
latest by the end of "
In fixing the terminal date lor shipment it should be noted that this date should not be beyond ISO 11 10T8.
Section II—Srerial points, to be kept m view while negotiating a supply contract
II (1). (a) The C&F value of the contract should be expressed in Yen (Frac- tion of Yen should Le omitted) and should exclude Indian Agent's commission, if any, which should be paid in Indian rupees In no circumstances the contract value should be expressed in Indian rupees or in any other currency The FOB cost and freight amount mav be shown separate! v but it should be clarified vn th" contract whether the fraglit Onug^s will L>c jju>/'iJ:|le on actual basis or whether the jieight charges indicated m the contract would be the amount payable irres- pective of the actual charges,
(b) The purchase order and the supplier's order confirmation should bo In English only.
11(11) For individual imports not exceeding Yen 300 million in value (exclusive of Indian agents, commission) the licensee is free to effect purchases directly from the suppliers without recourse to International tender enquiries from the countries listed m Annexure I.
II(ill) Where however, the supply contracts exceed Yen 300 million in value (exclusive of Indian Agents Commission), the following procedure for procure- ment should be rigidly followed'
(a) Formal Open International Tendering (b) Formal selective International Tendering (c) Informnl International Competitive Procurement
The above procedure may be relaxed in favour of Informal Competitive pro- curement or Direct Purchases where
1. a number of qualified suppliers exist in one particular country or in a limited number of countries,
2 purchase of a commodity by reference to a particular specification, trade name or designation is necessary in order to assure the interchangeabi- lUy or standardisation of equipment or because of special design re- quirements.
" Where purchases are m the category of emergency procurement.
The licensee is therefore sdvhed that In case where the procedure at (a) and (b) of para Il(iiJ) above cannot be taken recourse to a reference to the Department of •Economic Affairs shall have to be made who will give necessary approval on merits of each case
II(iv). Where Foimal Open International Tendering 1a resorted to the following' points should be borne in mind —
(a1) Invitations to bid shah have to be advertised m at least one newspaper of general circulation in India
(b) Bid bonds or bidding guarantees are a usual requirement but they should not be set yo high as to discourage suitable bidders
(O Bid bonds or guarantees should be released tn unsuccessful bidders as soon as possible after the bids have been opened.
II fv) The payment to th- overseas supplier should he arranged through an Irrevocable letter of credit to be opened by the Bank of India, Tokyo in their favour under the TECT Yen Credit fCimmnditv Aid) No ID-C2 for l<)7fi-77 tho details of which are given in Section Vl below
II (vi). The minimum value of a contract will Yen 2 million.
4 28 BHE GAZETTE OF INDIA EXTHAOHDINAEY PAHT I- SEC. 1Il(vii) Only one contract should be entered into against the import licence. In exceptional cases, more than one contract may be permitted to be entered into, r xr which puor approval of the Department of Economic Affairs Ministry of Fmariife should be obtained soon after the date of issue oi the import licence.
Il(vhi). Eligibility of Supplier,—The Supplier shall be a national ol the eligible source countries, or a juridical person governed substantially by nationals ol the eligible source countries, In case the Supplier shall be juridical person, the Sup- plier shall satisly the following conditions
(a) that a majority of the shares of the juridical person shall be held hv
nationals of the eligible source countries,
(b) that a maiority of directors of the juridical person shall be nationals
of the eligible source country,
(c) that a juridical person has been registered under the relevant laws and
regulations in the eligible source countries
(d) The following statement of eligibility by the Supplier shall be added to
each contract,
"I(We) hereby state that my (our) company is an eligible supplier, as——
•— per cent {c'c) of the shares are held by national of *— ——— (eligible source country), and • —per cent (%) of the direc- tors are nationals of —-—-(eligible source country), and my (our) company has been registered m —• •* -'(Eligible source country )"
Section HI—Condition^ to be Incorporated In the Supply Contracts
III(i). The following provisions should be specifically embodied in the sup- ply contract:
(a) The contract is arranged m accordance with the Loan Agreement bet- ween the Government of India and the Japanese Overseas Econo- mic Cooperation Fund (OECF) dated the 3rd March, 1<)77, concerning the Yen Credit No ID-C2, (Commodity Aid) and will be subject to the approval of the Government of India for financing it under the said credit
(b) Payments to the supplier shall be made through an irrevocable Letter of Credit to be issued by the Bank of India, Tokyo, under the Loan Agreement No ID-C2 dated 3rd March, ]977 between the Govern- ment of India and the Japanese Overseas Economic Cooperation Fund, (OECF)
(c) The Overseas Suppliers agrees to furnish such information and docu- ments as may be required under the Yen Credit arrangements by the Government of India on the one hand and the OECF on the other,
(d) A certificate (triplicate) m the form indicated in II (viii) (d).
irt(ii) In case the supplier is located in Japan, the supply contract should contain a clause that the Japanese supplier oer^os t0 make shipping arrangements In consultation with the Embassy of India Tnkv0 and that for this purpose he •would keep the Embassy of India, Tokyo informed of the delivery schedule of the goods involved and n"tifv the Embassy of India atleast four weeks in ad- vance of the shipping required RO that suitable arrangements could be made. In exceptional caset>, where the Indian importers require It, this period of notice may be reduced. The Japanese supplier should also agree to send a cable advice to the importer after each shipment giving the necessary details and a copy there- of should be sent to the Embassy of India, Tokyo.
Sectio i IV Contract Apjroval by Government of India
rV(l) Within the stipulated period for placement of firm orders the licensee should forward to the Unaer Secretary (WE-J Section), Department of Economic Affairs Ministry of Finance, North Block, New Delhi, 4 copies of the contract duly sinned by both parties or purchase order bv the Indian importer placed on the Overseas Suppliers supported by order confirmation in writing by the Overseas SUPPIIPI o 'heir photo copjes complete m all respects, together with two photo- copies ol the relevant valid import licence, .il o with an application fin duplicate) in the fur n attached as Annexure—III requesting for issue of Letter of authorisa- tion for t pening Letter of Credit.
429
Where supply contract is based on foimal Open International Tendering or formal selective International Tendering u certificate to the following effect should be furnished in duplicate —
(i) Name of th^ Newspaper (s) m which the bid specification was published;
(n) Name of parties who quoted against the tender enquiry; (m) the reason for selecting a particular offer indicating whether it is the
lowest technically suitable bid
IV (ii). If the contract documents, the request for issue of letter of authori- sption and the import licence are fuund to be m order, the Ministry of Finance, Department of Economic Allaire, WE-I Section will approve the contract and notify the same to the OECF for their information that contract will be financed. under the Yen Credit (Commodity Aid) anri simultaneously forward, one set of documents lo the Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, 1st Floor, Parliament Street, New Delhi, for issue of necessary letter of authorisation A copy of this communication wnl also be endorser! to the licence for information.
The above procedure of appioving contuct will lpho-facto apply to each con- tract amendment
Section V—Payment to the overseas suppliei—Letter of Credit procedure
V(i) On receipt of the documents, .mentioned in para IV(n) above thr> Con- troller of Aid Accounts ?-. Audit D'i33rt'"i°it of Economic Affairs, Ministry of Finance, UCO Bank Building, 1st Floor, Parliament Street, New Delhi (herein- after referred to £>s the CAAA for convcniivje) -""ill iSauc a letter of authorisa- tion as in the form attached ft Annexure-lV addressed to the Tokyo Branch of the Bank of India for openme an irrevocable letter of credit as in the form, attached as Annexure-V m favour of tb - overseas supplier concerned and will endorse a copy thereof to the OECF the Embassy of India, Tokyo, the importer's Bank in India and WE-I Section, Department of Economic Affairs, Ministry of Finance.
V(il), On receipt of ihe letter of authority, the Bank of India, Tokyo, will establish an irrevocable letter of credit in favour of the overseas supplier con- cerned and will also forward a copy of the same to the O E C F, Embassy of India, Tokyo; the importer's bank in Indin and the CAAA (It should be noted that as per the Yen Credit arrangements the letters of credit in respect of public Sector imports Central Government Departments, State Governments and Electri- city Boards would be opened only by thp Tokj/o Branch of the Bank of India')
The above procedure of opemnc of letters of credit on the basis of letters of authoritv from the CAAA woulH ipso-facto npnlv to all such amendment^ to letters of authority/letters of credit as may become necessary due to contract amendment
V(iii) The overseas supplier shall after affecting shipment of goods, present through his bankers the documents specified in the letter of credit to the Bank of India, Tokyo If the documents are found to be m order the Brink of India, Tokvo will release the amount specified T the d^umentt; to the overseas supplier through hi"! bankers and will thereafter obtain reimbursement of the said amount from the OECF
V(iv) Banking; charges payable to the Bank of India, Tokyo, for opening the letter of ct^dit, for negotiation'; t^oronndpp and r h ^ n^ 5f n nv of overseas sup- plier's banker and interest chargeg payable to the Bank of Tndia, Tokyo, for the period ro'intinit from the date of pavment of the cost of imports by them, lo the overseas supplier to the date of reimbursement h-.- 1ho OECF .shall be settled bry the concerned importer's bank m India by remittances to the Bank of India, Tokyo through normal banking channel without affecting the Government of India's account. In respert of imporis bv Central Government Departments, the Bank of India, Tokyo will, however, recover these charges from the Embassy of India. Tokyo,
Section VI—Responsibility for rupee deposit
VlfO The onoin n negotiable shipping documents will be invariably for-
warded Dy the Bank of India Tokvo ti the con^rnpd importer's bank |n India which would be a branch of the State Bank of India or any of the nationalised banks [as mentioned in (m) in Armexure III] who should
430 THE GAZETTE OF INDIA EXTRAORDINARY PART I- SEC. 1release these negotiable set of documents to the public sector projects} State Governments and Electricity Boards, Concerned only after ensuring that the rupee equivalent of the Yen Payments made to the overseas supplier alontf- with interest charges thereon calculated at the rate of 9 per cent per annum lor the first thirty days and at 15 per cent for the period m excess thereof, reckoned from the date of payment by the Bank of India, Tokyo to the overseas supplier to the date of actual rupee deposit, m deposited into Government of India account in terms of the Public Notice No 4(U:TC(PN) I'td dated 16-G-76 The interest la payable for both the days i.e the dav on which payment is made to the overseas Supplier and also the day on which rupee deposits is made into Government account Vide Public Notice No 74-lTC(PN)/76, dated 31-5-1974 as modified under Public Notice No. 103-ITC (PN)/76, dated 12-10-1976. The exchange rate to be adopted for computine the rupee equivalent of the Yen payment will be the pie- vaillne composite rate of exchange as laid down in CCI&J5 Public Notice No 3- ITC(PN)/76 dated 17-1-1976 or as may be nutilied by Government from time to time through Public Notices of the CCI&E or through Exchange Control Cir- culars of the Reserve Bank of India Any change in this regard as also m regard to the rate of interest will be notified as and when necessary. It will be the responsibility of the Indian bank concerned u> ensure that the amounts due are correctly deposited into Government Account be-fore the impmt documents are handed over to the importers. The licensee should nLso ensure that the amounts due are correctly deposited into Cnv^rnnvent acoumt before taking delivery of the documents from their bankers The Head of Account to which the above rupee deposits should be credited Is "K-Depomts and Advancea-843-Civll De- posits Deposits for purchases etc , abroad—Purchase under Yen Credits/Loan Agreement Credits from the Government of Japan' under the detailed head "the Yen Credit No. ID-C2 for 1976-77 (Commodity Aid) from Japan".
VI (ii). The amount referred to above should be deposited in cash to the credit of the Government either in the -Reserve Bank of India, New Delhi or State Bank of India, Tip Hazan, Delhi, or if this not feasible, should be remitted by means of a demand draft obtained from any such branch of the State Bank of India or Its subsidiaries or any one of the Nationalised Banks (drawee) drawn on and made payable to the State Bank of India, Tis Hazan Branch, Delhi:6 (drawee and payee) for credit to Government account as contnrnplated in Public Notices No 184-ITC (PN)/68 dated 30-6-1968. No 233-ITC(PN)/68 dated 24-10-1968 and No 132-ITC(PN)/71, dated 5-10-1071, No. -ITC(PN)/74, dated 31-5-1974 and No. 103-ITC (PN) /76 dated 12-10-1976.
VKiii) The concerned Bank in India shall also furnish such additional de- posit m the same manner stipulated above as may be requested by the Govern- ment of India on account of service charges within seven days after such a de- mard is made by the Government While filling in the various columns in the chaUen itshould be ensured by the Importers/their bankers that the information prescribed in para 2 of Public Notice No 132-ITC(PN)/71 dated 5-10-1971 and llso m Fubl£ Notice No. 74-ITC(PN)/74, dated 31-5-1974 read with Public Notice No io\ irC(PNV76 dated 12-10-1076 is invariably indicated in the column "full particulars of remittances and authority (if any) of the challan The following particulars should invariably be furnished in the Treasury Challans (a) Ministry of Finance letter of authority No and date (b) Amount of Yen currency m respect of which deposits ara to be made
together with rate of conversion adopted
(c) Date of payment to the overseas supplier. (d) The amount of merest nnvi and the period for which it has been cal-
culated.
(e) Total amount deposited
(Interest is to be celr ilated for the period from, the date of payment to the overseas supplier uvto the date of deposit of rupee equivalents into Government Account).
Thereafter the Treasury Challansj evidencing the rupee deposit should be sent by roistered cost to the CAAA mdi-vting reference to the letter of autthori- saUon Issued by him and also enclosing copies of invoke and shipping documents.
NOTE- Importer's Banks in India should ensure that th,. rupee deposits are invariably made within 10 davs nf thn receipt of the "dvico of Pay- ments and negotiable shipping documents from the Bank of India,
431
Tokyo and that the CAA&A, Ministry of Finance (DEA), New Delhi Is kept informed of the fact immediately thereafter.
VI (iv). The concerned bank in India should also endorse the amount of rupee deposits on the exchange control copy of the licence and send the requisite "S" Form to the Reserve Bank of India, Bombay
VI(v). (a) In the case of imports by the Department of the Central Govern- ment, the Bank of India, Tokyo will forward the negotiable shipping documents to their accredited bankers m India, as indicated In the Appendix to the relevant letter of Authority, and the bankeis will m turn ensure that the Departments make the rupee deposits at RBT New Delhi or SBI, Tis Hazari, Delhi in the man- ner laid down in the other paras of this section The provisions iegarding the re- covery of interest 'chargei on the rupee equivalents due will not however apply in the case of imports by the Central Government Departments (vide Govt of India, Ministry of Finance Circular Lettci No F 45(30>-ECA( A)/7S dated 21-4-78 extending the procedure of settlement of rupee deposits through Bunk to the Departments of the Central Government)
(b) The rupee equivalents of Yen payments on account of banking and litei ost charges, etc , made by Embassy of Tndia, Tokvo, will also be calculated in the above manner and deposited m favout oF the Punrnpal Accounts Officer, in the Ministry of External Affairs, New Delhi, for which purpose, CAA&A will be issuing suitable advices "
Settion VII -Miscellaneous provisions
VII(i) Reports on the utilisation of the Import licence—The importer should send a monthly report, after the lottrr of credit Vus be^n opened regarding ship- ments and payments made therc against and about the balance left, to the Con- troller of Aid Accounts & Audit Department of Economic Aifairs Ministry oi Fin- ance, UCO Bank Building, Parliament Street, New Delhi
VIIKii) No-niying Suppliers of Special Conditions.—The licensee shou^l ap- prise the supplier of any special provisions m the import licence which may affect the suppliers m carrying out the transaction
VII(in). Disputes.—It should be uderstood that the Government of India will not undertake anv responsibility for dispute if ativ that may arise between the licensee and the suppliers. The conditions to be fulfilled by the supplier before payment by the Bank of India, Tokyo must be clearly Spelt out by the importer in Annexurc-III under "Term_s of Payment" Provision dealing with a settlement of disputes be included m the condition of contract
VII (iv) Future Instructions. —The licensee shall promptly comply with any directions, instructions or orders issued by the Government of India from time to time regarding any and all matters amm^ from or pertaining to the taport licence and for meeting an oblations under the Yen Credit Agreement (Com- modity Aid) No ID-C2 with the Japanese authorities
VII(v) Breach or Violation—Any breach or violation of the conditions set forth in the above clauses will result m appropriate action under the Imports ar-* Exports (Control) Act
VII (vi) List of Annexures-
Annrxure I—List of eligible source countries.
Annexurc II—Detailed procedure for procurement.
A n n e xe IH—Form of Request for issue of Letter of Authority for open- ing the Letter of Credit
Annoxuro IV—Form of Letter o-f Authority
Annexnrp V—Form of Letter of Credit,
._-, THE GAZETTE OF INDIA EXTRAORDINARY PART I—SEC. 14 3Z
ANNEXUKE I
[Ref Section I—Para I ( v )]
A. Developing: Countries and Territories
(a!) Non-O.PE.C. Developing Countries
I. AFRICA, North of Sahara:
Egypt Morocco Tunisia
Uganda Un Rep of Tanezania Upper Volta Zaire Republic Zambia
II. AFRICA, South of Sahara.
III. AMERICA, North and Central-
Angola Bahamas
Botswana Barbadoes
Burundi Belize
Cameroon Bermuda
Capo Verde Islands fostq Rica
Central African Rep Cuba
Chad Dominican Republic
Comoro Islands El Salvador
Congo, People's Republic of Guadeloupe
Dahomay Guatemala
Equatorial Guinea (1) Haiti
Ethiopia Honduras
Gambia Jamaica
Ghana Martinique
Guinea Moxico
Ivory Coast Netherlands A tilles
Kenya Nicaragua
Lesotho Panama
Liberia St Pierre & Miquelon
Malagasy Republic Trinidad and TODQKO
Malawi
Mali
Mauritania West Indies (Br ) n i,e
Mauritius
Mozambique (a) Associated States (4)
Niger (b) Dependencies (5)
Portuguese Guinea
Reunion IV. AMERICA, South-
Rhodesia
Rwanda Argentina
St Helena and dep. (Z) Bolivia
Sao Tome and Pnncipe Brazil
Senegal Chile
Seychelles Colombia
Sierra Leone Falkland Islands
Somalia French Guiana
Sudan Guyana
Swaziland Paraguay
Terro Afars and Issas Peru
Tago Surinam
Uruguay
;(1) Formerly the territory of Spanish Guinea, including the island of Fernando Po.
(2) Including the following islands: Ascension, Tristan da Inaccessibles, Nightin-
gale, Gouffh
(3) Main islands, Aruba, Bonaire, Curacao, Safw, St Eustacit St Martin
(Southern Part).
;(4) Main Islands- Antigua, Dominica, Grenada, St Kitts (St. Caristepha), Nevia- Anguilla, St. Lucia and St. Vincent.
'(5) Mam islands- Montserrant, Gayman, Turks and Caicos, and British Virgin Islands.
433
V. ASIA, Middle East:
Gilbert & Ellice Is.
Bahrain French Polynesia (8)
Israel Nauru
Jordan New Caledonia
Lebanon New Hcbrices (Br and FT.)
Oman Hieu
Paoilit: I air nds (US) (9)
Syrian Arab Republic Papua New Guinea
United Arab Emirates (6) Solomon Islands (Br,)
Yemen Arab Republic Tongo
Yemen, People's DR. (7) Waliis and Futuna
VI. ASIA, South: Western Samoa
Afghanistan
Bangladesh IX, EUROPE-
Bhutan
Burma Cyprus
Maldivis Gibraltar
Nepal Greece
Pakistan Malta
Sri Lanka Spain
Tuikey
VII ASIA, Far East: Yugoslavia
Brunei
Hong Kong
Khmer Republic ia2) Member or Associate Countries
Korea, Republic of of OPEC:
Laos
Macao Algeria
Malaysia Bolivia
Philippines Libyan Arab Republic
Singapore Gabon
Taiwan Nigeria
Thailand Ecuador
Timer Venezuela
Viet-Nam, Rep, of Iran
Viet-Nam Dem. Rep. Iraq
Kuwait
VIII. OCEANIA: Qatar
Saudi Arabia
Cock Islands Abu Dhabi
Fiji Indonesia
(6) Ajman, Dubai, Fujairah, Ras al Khajmah, Sharjah and Umm al Quaiwain (7) Including Aden and various sultanates and emirates (8) Comprlsmg the Society Islands (including Tahiti), The Austral Islands the Tuamotu-Gambier Group and The Marquesas Islands
(9) Trust Territory of the Pacific Islands- Caroline Islands, Marshall Islands and Manna Islands (except Guam).
ANNEXURE II
[Re/. Section IV)]
MAIN GUIDELINES FOR PROCUREMENT OF COMMODITIES UNDER THE COMMODITY LOAN AS FORMULATED BY C.E C F.
I. Advertising
On nil contracts subject to Formal Open International Tendering, invitations to bid shall be advertised in at least one newspaper uf general circulation in India,
n Bidding Documents and Contracts
II-l. Bid Bonds or Guarantees
Bid bonds or bidding ffuarantees are a usual requirement, but they should not.
be set so high as to discourage suitable bidders.
4 34 T HE GAZETTE OF INDIA EXTRAORDINARY PART I—SEC. 1Bid bonds or guaiantecs should be released to unsuccessful bidders as soon as possible afier the bids have been opened
II-2. Conditions of Contract
It is- required that any contract to be financed under the Funds loan shall fulfill the following conditions.
(1) Vonditiony o] Commodities—The tubject items of the Contract shall be pro- duced In the eligible sour re countries and to be shipped to an Indian p°rt flom ihe eligible source countries If the imported portion i'rom non-eligible source countries is less than ihirt> per cent <;-iO•',', > of Ihe following formula, Listed Commodities will be financed even if the Imported portion from non-eligible source countries is included as a purl ti the Listed Commodities in the items of. the contract.
Formula, merrhnnrd above
Imported Price 4- Impoit Duty x 100
Supplier's FOB Price
(2) Condif}")!;, o) Supplier—The Supplier shall be a national of the eligible source countries, or a mndlcjl person governed substantially by nationals of the eligible source countries In case the Supplier shall be a juridical person, 1he Supplier shall SJtirf t the following renditions,
(a) that a maiomv of the shares of the juridical person shall be held by nationals ot the eligible source countries,
(b) that a niuioiity of Dirertnr'? of the juridical person shall be nationals of the eligible source countries*, and
(c) that a iiinrticul person has been registered under the relevant laws and regulaLops in the eligible source countries
(3) Denom;"i(tior> u} Currency—The Contract shall be fixed and payable in Japanese Vcn without any fraction Jejs than One Yen (VI.00).
(4) Date of Eligible Contract—The eligible contract to bo financed is the one- which lg concluded on ot after the date of this loan Agreement.
(,T) Standard Forrr of Eligible Contract—(a") The following items shall be in- serted in eligibl" coniracl to be concluded on and after the date of Loan Agreement No. ID-C2 and to be financed by the Fund.
(1) Name and Nationality of Supplier and Importer (2) Num1 er and Date of the Contract (3) Name ami Origin of Commodities (4) Contract Price and Quantity (5) Payment terms (6) Delivery and Shipment Schedule (7] Olher General Regulations,
H-3 Payment
435
or other internationally accepted standards,, which ensure an equal or higher quality than the standards mentioned, will also be accepted.
II-5. Use of Brand Names
Specihcations should be based on performance capability and should only pres- cribe brand names catalogue numbers, or products of specific manufacturer if specific spare parts are required or it has been -ietet mined thut a degree of stan- dardization is necessary to maintain certain essential features.
In the latter ca?o 1he specifications should permit oilers of alternative commo- dities which have similar characteristics and provide performance and quality at least equal to those specified.
JI-6. Guarantees and Performance Bonds
Bidding documents should require some -form of surety io guarantee, If neces- sary. This surety can be provided eilher by a bank guaranttc or by a performance bond. II-7. Liquidated Damage
Liquidated damage clauses, if necessary should be included m bidding docu- ments when delays in delivery will result in extra expenditure, loss of revenues or loss of other benefits to the Importer.
II-8. Force Majeur^
The conditions of the Contract included in the bidding riouimenK should contain clauses, when appropriate, stipulating thai a failure on the part of the parties to perform Iheir obligations under the Contract shall not be con side rod a default under the Contract if such failure is the result of an event of force maieure (to be defined In the conditions of the Contract).
II-9. Settlement of Disputes
Provisions dealing with the settlemem of disputes should bo included In the conditions of Iho Contract It is desirable that the provls,loiih should be based on "Rules of Conciliation and Arbitration" which have been prepared by the [ n t e r- national Chamber of Commerce or on such other arrangements a? may bo mutuauy acceptable to the Indian importer and the Overseas supplier.
11-10. Language Interpretation
Bidding documents should be prepared m Enylibh, Tf other language should be used m the bidding documents, English should be added to surh documents and it is required to specify which la governing
HI Bid Onenlnp, Evalution and Award of Contract III-l. Time Interval Between Invitation and Submission of Bids
The tune allowed for preparation of bids will depend to a large extent upon the magnitude and complexriy of the contract Generally not l e^ than 30 to should be allowed fo- international bidding The time allowed, however, should be- gov- erned bv the circumstances relating to each contract III-2. Bid Opening Procedures
The date, hour and place for the latest, receipt of bids and for the bid opening should ho announced In. Ihr inviHhnns to bid and all hid* sbruid bo ooened public]v $"tt!° ^ u l aW " me Bids received after Ibis nmo should be ^ u r n td unowned The nw f the bidder onn the Iota! amount of each bul fnd • ,1 rmy alfernai,vc bids, if thry n"ve been requested or permitted, should be r^ad s l ed and recorded.
III-3 Clarifications or Alteration of Bids
Wo b r.uer should be pormitt^i to rll-r h'= bid aftrr the bids have b^en opened Only clnnn-aLnrr, nnt chRnjwW Ihe suh-1?nce of
Except as mav be required bv law no information relaime to the examination clariflca ion and evaluation of birls and recommendations concerning ^ a r< should be commnnic"i*Pd otter the public opening of bids to any persons ^ 4 36 T HE GAZETTE OF INDIA. EXTRAORDINARY PART I—SEC. 1
III-5. Examination of Bids
Following the opening, It should be ascertained whether material errors in computation have been made in the bids, whether the bids are fully responsive to the bidding documents, whether the required sureties have been provided whether documents have been properly signed and whether the bids are otherwise gener- ally in order If a bid does not substantially conform to the specifications, or con- tains inadmissible xeservations or ii not otherwise substantially responsive to the bidding documents, it should he rejected A technical analysis should then be made to evaluate each responsive bid and to enable bids to be compared
III-6. Postqualiftcatlon of Bidders
In the aDscnce of prequaliflcatlons, the Importer should determine whether the bidder whose bid has1 been evaluated the lowest has the capability and financial resources effectively to carry out the Contract, concerned. If the bidder does not meet) that test, his bid should be rejected. III-7, Evaluation and Comparison of Bids
Bids evaluation must be consistent with the terms and conditions set forth in the bidding documeni s, In addition to the bid price, adjusted to correct arithmetical errors, other factors siich as the time of delivery, the efficiency and compatibility of the equipment or the availability of spare parts should be taken into considera- fion. To the extent- porsiWo, theso factors should be expressed in monetary terms according to criteria specified m the bidding documents. The ammint of escalation for price adjustments, il .my, included in the bids, should not be taken into con- sideration
A detailed report on thf> evaluation and comparison of bids setting forth the specific reasons on which the determination of the lowest evaluated bid is based should be prepared by the Importer.
III-8. Rejection of Bids
Bidding documents usually provide that Importers may reject ail bids How- ever, all bids should not be rejected and new bids invited on the same specifications solely for the purpose of obtaining lower prices in the new bids, except in cases where the lowest evaluated bid exceeds the cost estimates by a substantial amount. [Rejection of aU 'lids may also be justified when (a) bids are not responsive to the intent of the bidding documents or (b) there is a lack of competition If all bids are rejected, the borrower should review the cause or causes justifying the rejection and either consider revisions of the specifications or modification in the commodities (or amounts of th^ commodities gn Items called for In the original invitation to bids), or both. In Special circumstances, after consultation with the Borrower, the Importer may negotiate with one or two of the lowest bidders to try to obtain a satisfactory contract.
III-9. Award of Contract
The award of a contract should be made to the bidder whjose bid has been determined to be the lowest evaluated bid and, who meets the appropriate standards of capability and financial resources! Such bidder should not be required, as a conditicn of award, to undertake responsibilities on commodities not stipulated jn the specifications or to' modify Ma bid.
ANNEXURE III [Ref. Section IV—Para IV(1)] HEQUFST FOR ISSUE OF THE LETTER OF AUTHORITY No. Date
To
The Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs, U CO. Bank Building, 1st Floor, Parliament Street, New Delhi-lOn 001
SUBJECT.—Impoit of -from Japan under the Y&n Credit No. W-C2
(Commodity Aid) for 1976-77.
Sir,
In connection with the import of from — under the above mentioned Yen CrPdlt No ID-C2 (Commodity Aid) we furnish the following
437
particulars to enable you to issue the Letter of Authority to the ••——— (nume of the Bank,) which should be the same as given in (n) below for opening a letter of credit in favour of the overseas supplier concerned:
(a) Name and Address of the Indian importer (b) Number, date and value of the import licence and date upto which it is valid,
(c) Method of procurement—whether it is based on direct purchase or Formal Open Internationa] tendering in which case it should be indicated whe- ther the contract has, been awarded on the basis of technically suitable offer with reasons, if any.
(d) Brief description of the goods (e) Origin of the goods. (f) Percentage of the import components from non-eligible source countries, if any.
(g) C & F value of contract (m Yen). (h) Amount of Indian agent:, commission (in Yen"), if any, payable in Indian, rupees and the net value m Yen payable to overseas suppliers
(i> Value tin Von1) lor which the Letter ot Authority is required (j) Number and date of the contract with Overseas suppliers (k) Name und Address of the Overseas Supplier-
(i) Nationality (il) Percentage of the shares hel"d by Nationals of the eligible sourctt countries.
(in) Nationality of the representative and/or President of the Supplier (iv) Percentage °£ Directors who are nationals of eligible source countries. (1) Payment terms and probable dates on which payments under the contract will fall due
(m) Expected date of completion of deliveries.
(n) Documents to be presented at the time of payment to Bank of India, Tokyo (Indicating No of sets of each and their disposal)
(o) Shipment instructions (indicate if trans-shipment /part-shipment per- mitted or not permitted),
(p) Name and address of the importer's bank in India (q) Whether a contract(s) under the same licence haa been placed and noti- fied to the Japanese authorities, and if so, the No., date and value of each such contract and the reference of the Ministry of Finance under which it has been notified to the O.ECF.
ANNEXUHE IV
[Re/ Section V—Para V(1I)]
No F
GOVERNMENT OF INDIA MINISTRY OF FINANCE (Department of Economic Affairs)
New Delhi, the
To
The Bank of India, Tokyo Branch, Tokyo (Japan)
SUBJECT —Import under Yen Credit (Commodity Aid) Loan Agreement No. ID-C2—Issue of Letter of Authority for opening Letter of Credit.
Dear Sirs,
In accordance with the terms and conditions of the agreement dated 30-10-197* entered into with your Bank, you are hereby authorized to open irrevocable Letter of C r e d it f or OP a m o u nt n ot e x c e e d i ng Y en — • —
• —• f a v o u r i ng M / s.
• • — as p er a t t a c h ed d e t a i l s.
4 38 ™E GAZETTE OF INDIA EXTRAORDINARY PART I - S EU 1A copy each of the letter of credit opened by your Bank may bo endorsed to uif importer's Bank, to the OECF, Embassy o± India, Tokyo and to us
Payments to the suppliers in terms erf the letter of credit will be made initially out of your own funds. After payments, you must claim immediately reimburse- ments of the amounts paid by furnishing necessary documents to the OECF.
For the time lag between the dates of payment by you to the supplier a ad the date of its reimbursement by the OECF, you will be paid interest as per Icims of the above agreement directly by the importer;,' bank The other banking charges including charges for handling documents, if any, and charges of overseas suppliers bankers, if any, will also be settled directly by the importeis' hank As p.ich no reimbursement of such charge;, is to be claimed from the OECF
As and when any payment is made by you t,nd rUmbuibCment is made 1o you, an advice m the prescribed form should be sent to this Mim.,1ry.
This Letter of Authority, is intended for opening of L/C favouring the r>verseas suppliers Subsequent amendments to L/C or further fresh L/Cs agalnet this authorisation may not be acted upon in the absence of a specific authority from this Ministry.
This Letter of Authority will remain valid upto —.
Yours faithfully.
Accounts Officer.
For public Sector Imports including Govt. Departments
Copy forwarded to:—
1 Importer — -• -with reference to their letter No. — —
d a t e d— — .
2. Importer;' Banker - - —• • — •——. They are requested to arrange to deposit the rupee equivalent of the Yen payment to the overseas suppliers on receipt of documents from the Bank of India, Tokyo Branch The rupee equivalent of amounts disbursed to the suppliers wJll have to be calculated by applying the com- posite rate of conversion as prevailing on the date of payment 1o overseas suppliers in accordance with the Public- Notice No 8-ITC(PN)/74 dated 17-1-1976 or such other Public Notices as may be issued from time to time. Interest @9 per cent per annum for the first thirty days and at the rate of IS per cent per annum lor the period excess thereof reckoned for the period between the date of payment to the supplier/date of reimbursements to Bank of India and the date- on which the rupee equivalents arc deposited into Government account, is also required to bo deposited Into the Government of India account In terms oE Public- Notice No, 4fi-ITC(FNV76 dated ifl-fi-197G. The interest is payable, for both the days ie, The dav on which payment made to the Overseas Supplier and also the date on which rupee deposit is made into Government Account. (Any change m this rate "Hill be intimated if and when made). It should be ensured that these deposits .ire made before the original set of import documents are handed over to the importer for Customs clearance.
These nmnunts should be deposited either w11h the PBI, New Delhi or th_- S B.I., Tls Fazari D^lht, or remitled by means of a Demand Draft obtained by thon from any Branch of the SBT or its subsidiaries or any one of tho National! -V Banks (Drawee ond Payee7) diiwn on nnd mode payable to Ihe RBI Tin Hrz^ ', Delhi-6 (Drawee and Pdyee) In this connection their a+tentfon is elsn invited *tn fbp pro- viv.r/ni of +h^ Public Nn+irrs No 233-TTCfPN) /fifl dntel 'M-10-19fif, No ^ - I TO (PN)/7l, dated 5-10-1971, No 74-ITC (PN) /74 dated 31-5-74 nnri 103-ITC (PN)/76 dated 12-10-1976 The head of Account to be credited is "K-Dcpo-its & Ad\Tances— 843—Civil Deposits—Deposit for purchases, etc abioqrl urdri Purch^e^ under Credit/T,o.it) Ak'rfementP—under detailed head Yen Credil (Commodity Aid) No ID-C2 for 1076-77 from Japan-—Credits from the Government of Japan—"
One copy of the challan in original, in cases where the ruree equivalents aie credited in crash at the RBI, New Delhi, or tV SBI, Tis Hizwi, Delhi as described rn Public Notice No 132-ITC(PN)/71 dated 5-10-1971 should be sent by them to the address given below alongwiih a forwarding letter giving full details of the advice notes received from the Bank of India, Tokyo Branch
439
The Controller Of Aid Accounts & Audit, Ministry of Finance (Department of ^ronomlc- Aflairs), 1st Floor UCO Bank. Building, Parliament Street, New Delhl-1.
In cases where the rupee equivalents are remitted by means of demand draftsr at, laid down in the Public Notice dated 24th October, 1068 mentioned above, intlma- lions thereof should be sent to the address given above In ail cases, full parti- culars of the rupee equivalents deposited alongwilh the amount of Interest paid imd the period for which Interest has been calculated should be furnished to thia I>epartment.
The banking charges, interest and other charges of the Bank of India, Tokyo Branch, including charges of the overseas suppliers bankers, if any, should be settled directly between the Indian Bank and the Bank of India, Tokyo Branch,
3. The Director, Loan Department-II, Overseas Economic Cooperation Fund, lino Buildmg-1-1-, Uchisaiwal-Cho, 2-Chome, Chiyoda-ku, 'Tokyo
4 Fmbassy of India, Tokyo
5 The Under Secretary, WEI Branch, Ministry of Finance, Department of Economic Affairs, New D'clhi
Accounts Officer.
ANNEXURE V
[Ref Section V—Para V (h) ]
IRREVOCABLE LETTER OF CREDIT
To r —— •—• •
(Name and Address of the Supplier)
The Letter of Credit has been issued pursu- ant to Loan Agreement No. • dated — • — between (Borrower) and THE OVERSEAS ECONOMIC COOPERA- TION FUND
Bear Sirs,
We advise you that we have opened our irrevocable credit No.——— r——. In vour favour for account of— —— for a sum or sums not exceeding an aggregate amount of——• (Bay Yen ) available by your •drafts at sight for full invoice value drawn on us, to be accompanied by thw iTollowing documents.
Signed commercial invoice in
.Full set of clean on board ocean bills of landinc made out to order "nd- blank endorsed and marked "Freight - and "Notify — —" Other documents
evidence shipment of (brief description of goods to be shipped referring to Contract
to
No ) (if any) From Partial shipments are permitted Transhipment is permitted. Bills of landing must be dated not later than . Drafts must be presented. If>r negotiation not later than
All drafts and documents under this credit must be marked ' Drawn under irrevocable credit No , dated and
import Reference No (s), (If any)"
This credit is not transferable
We hereby undertake that all drafts drawn under and in compliance with the, terms of the credit shall be duly honoured on due presentation and delivery of documents to the drawee
4 40 THE GAZETTE OF INDIA EXTRAORDINARY PART I—SEC. 1Unless otherwise expressly stated, this credit is subject to "Uniform Customs and Practice for Documentary Credits (1974 Revision), International Chamber of Commerce Publication No, 290".
special Instructions to the negotiating bank:
1. After obtaining the reimbursement for our payments from THE OVERSEAS ECONOMIC COOPERATION FUND in accordance with the provisions of ther Letter of Commitment Issued thereby under the above-mentioned Loan Agreement, we undertake to remit the amount of the drafts In accordance with instructions issued by the negotiating bank.
2. The negotiating bank must forward the drafts and one complete set of documents to us together with the certificate stating that the remaining document* Jjave been airmailed direct to • .
3. All banking charges under thia credit are for account of (the importer) under the "aid Loan Agreement.
Yours faithfully,
(a commercial bank)
By.
(Authorised Signature)
A. S. GILlv
Chief Controller of Import fc Exparta,
441
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F'KIN ITD BY THE GENERAL MANAGER, OOVHRNMTNl OF [NDI/V PRESS, MINTO ROAD NEW DELHI *ND PUBLISHFD BY IHF CON I HOT I PR OF PUULICAT IONS, DEI HI, 1977
- on the overseas suppliei supported by order confirmation in writ- Ing by the overseas supplier, or their photo copies, are also acceptable to the Fund. (c) The following statement of eligibility by the supplier shall be added to each contract "I (We) "twi-eh" slate that my (our) company is an eligible supplier, as pe: v \t (",',) of the thares are held by nationals of (eligible wi'.ii ennirlrsO, and ——-—— percent (%) of the directors are na- lic-nai" of n (eligible source country), and my (our) com- panv hcis been re^isterM in—— (eligible source country" The full amount of n shipment shall be paid to the Supplier at each time of presentation of the rel itive shipping documents under an irrevocable Letter of Credit II-1 Standard'; If national standards to whirh. equipment or materials must comply are cited, the spedtlc^lnns should state that commodities meeting Japan Industrial Standard ↩