REGISTERE

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. 1

thin 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

should

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

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;

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

the

Department of Economic Affairs shall have to be made, who will consider each

such case on merits

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.

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

the

eligible source countries, or a juridicial person

governed

substantially

. 1 0

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.

———percent {%) of

the

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

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

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 i i

(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

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

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

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

, I 2

^ E GAZETTE OF INDIA EXTRAORDINARY

PART I—SEC. 1

to 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 b e 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 2ⁿE 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

Egypt

Morocco

Tunisia

. AFRICA, South of Sahara

Angola

Botswana

Burundi

Cameroon

Cape Verde Islands

Central African Ftep

Chad

Comoro Itilands

Congo, People's Republic of

Dahomay

AT A

THE GAZETTE OP INDIA EXTRAORDINARY

PART I—Smc. 1

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

HI. AMERICA, North and Central

Bahamas

Barbodoes

Belize

Bermuda

Costa Rica

Cuba

Dominican Republic

El Salvador

Guadeloupe

Guatemala

Haiti

Honduras

Jamaica

Martinique

Mexico

Netherlands Atillea

Nicaragua

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)

VI. ASIA, South

Afghnmtsan

Bangladesh

Bhutan

Burma

Maldivis

Nepal

Pakistan

Sri Lanka

VII ASIA, Far East

Brunei

Hong Kong

Khmer Republic

Korea, Republic of

Laos

Macao

Malaysia

(1) Formerly the territory of Spanish Guinea, including the island of Fernando

(2) Including the following

islands-

Ascension, Tristan

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

Singapore

Taiwan

Thailand

Timer

Viet-Nam, Rep. of

Viel-Nam Dem. Rep.

VIII OCEANIA

Cock Islands

FIJI

Gilbert & Elllce Is.

French Polynesia (8)

Nauru

New Caledonia

New Hebricoh (Br and Fr.)

Hieu

Pacific Islands (US) (9)

Popua New Guinea

Solomon Islands (Br.)

Tongo

Walhs and Futuna

Western Samoa

IX EUROPE

Cyprus

Gibraltar

Greece

Malta

Spain

Turkey

Yugoslavia

(a2) Member or Associate Countries of

OPEO

Algeria

Bolivia

Libyan Arab Republic

Gabon

Nigeria

Ecuador

Venezuela

Iran

Iraq

Kuwait

Qatar

Saudi Arabia

Abu Dhabi

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

—

> 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 1 6

THE GAZETTE OF INDIA EXTRAORDINARY

PART I - SEC 1

eligible 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

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

contract

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

^ I 8

THE GAZETTE OF INPIA EXTRAORDINARY

PART I-SEC. 1

Hi—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

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.

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 b P 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

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,-

•• —dated——

—-—-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

admce

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. 1

Tokyo, 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, ^- e i _ 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

—

(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, ie., 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

•

19 .

for

—— —

(Bank)

Accepted for and on behalf of the

President of India by Shri

— —

—

— —

(Name and Designation)

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

421

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

(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

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

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

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 2 2

T H E GAZETTE OF INDIA EXTRAORDINARY

PART I—SEC. I

excess 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

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

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

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 the agreement dated 30th

October, 1976 entered into with your Bank, we hereby authorise you to confirm

the Letter of Credit

opened by (Indian Bonk) favouring

(Overseas

supplier) for Yen—

—

—covering the import of-

aguinst contract entered into by

(Iruhan Importer), to be forwarded to the

beneficiary and to pay the amount under the 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

the amounts

paid

furnishing

necessary documents to the O E C F

As and when any payment is m* ^de t>y

you and reimbursement is made to you, an advice in the prescribed

form

should be sent to this Ministry

3. Your banking charges and charges if any of overseas Supplier, bankera

and interest charges under the 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

— — i n 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-SEC. 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)

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

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)

(Authorized Signature)

ANNEXUHE VII

IRef. Section VII—Para VII (v)]

FORM OF APPLICATION FOR RELEASE OF BANK GUARANTEE

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

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.

(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

No letter of credit was opened under the authorisation (s) and the

authorisation (s) lapsed.

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. 1

APPENDIX 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 fob. 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

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

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

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

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

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.

428

BHE GAZETTE OF INDIA EXTHAOHDINAEY

PAHT I - SEC. 1

Il(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,

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)

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

•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 ^

5^f n n v

o^{f 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

(m)

Armexure III]

who

should

430

THE GAZETTE OF INDIA EXTRAORDINARY

PART I - SEC. 1

release 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 a s 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

(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 x e 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. 1

43 ^Z

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

II. AFRICA, South of Sahara.

Angola

Botswana

Burundi

Cameroon

Capo Verde Islands

Central African Rep

Chad

Comoro Islands

Congo, People's Republic of

Dahomay

Equatorial Guinea (1)

Ethiopia

Gambia

Ghana

Guinea

Ivory Coast

Kenya

Lesotho

Liberia

Malagasy Republic

Malawi

Mali

Mauritania

Mauritius

Mozambique

Niger

Portuguese Guinea

Reunion

Rhodesia

Rwanda

St Helena and dep. (Z)

Sao Tome and Pnncipe

Senegal

Seychelles

Sierra Leone

Somalia

Sudan

Swaziland

Terro Afars and Issas

Tago

Uganda

Un Rep of Tanezania

Upper Volta

Zaire Republic

Zambia

III. AMERICA, North and Central-

Bahamas

Barbadoes

Belize

Bermuda

fostq Rica

Cuba

Dominican Republic

El Salvador

Guadeloupe

Guatemala

Haiti

Honduras

Jamaica

Martinique

Moxico

Netherlands A tilles

Nicaragua

Panama

St Pierre & Miquelon

Trinidad and TODQKO

West Indies (Br ) n i,e

(a) Associated States (4)

(b) Dependencies (5)

IV. AMERICA, South-

Argentina

Bolivia

Brazil

Chile

Colombia

Falkland Islands

French Guiana

Guyana

Paraguay

Peru

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

ASIA, Middle East:

Bahrain

Israel

Jordan

Lebanon

Oman

Syrian Arab Republic

United Arab Emirates (6)

Yemen Arab Republic

Yemen, People's DR. (7)

VI. ASIA, South:

Afghanistan

Bangladesh

Bhutan

Burma

Maldivis

Nepal

Pakistan

Sri Lanka

VII ASIA, Far East:

Brunei

Hong Kong

Khmer Republic

Korea, Republic of

Laos

Macao

Malaysia

Philippines

Singapore

Taiwan

Thailand

Timer

Viet-Nam, Rep, of

Viet-Nam Dem. Rep.

VIII. OCEANIA:

Cock Islands

Fiji

Gilbert & Ellice Is.

French Polynesia (8)

Nauru

New Caledonia

New Hcbrices (Br and FT.)

Hieu

Paoilit: I air nds (US) (9)

Papua New Guinea

Solomon Islands (Br,)

Tongo

Waliis and Futuna

Western Samoa

IX, EUROPE-

Cyprus

Gibraltar

Greece

Malta

Spain

Tuikey

Yugoslavia

ia2) Member or Associate Countries

of OPEC:

Algeria

Bolivia

Libyan Arab Republic

Gabon

Nigeria

Ecuador

Venezuela

Iran

Iraq

Kuwait

Qatar

Saudi Arabia

Abu Dhabi

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.

434

T H E GAZETTE OF INDIA EXTRAORDINARY

PART I—SEC. 1

Bid 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

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,

(b) The contract duly signed by both parties or purchase order by the Indian

Importer placer¹ 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.

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'.ii¹ ennirlrsO, and ——-——

percent (%) of the directors are na-

lic-nai" of

(eligible source country), and my (our) com-

panv hcis been re^isterM in——

(eligible source country"

H-3 Payment

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

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

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 le^ 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 a W "me

Bids received after Ibis nmo should be ^ u r n t d unowned

The n w

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 sled 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 <he bid may ^

p-c^ptcd

The

importer may o<l: r,nv bolder for ti rlariflt-nilnn of hU bid Tit :h^l,\ no1 ar -. any

bidder to charge the substanca or the price of his bid

III-4- Procedures to he confidential

Except as mav be required bv law no information relaime to the examination

clariflca ion and evaluation of birls and recommendations concerning ^ar< should

be commnnic"i*Pd otter the public opening of bids to any persons ^

<f^1alh con-

cerned with these procedures until the award of a contract to the successful bidder

Is announced.

436

T H E 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

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,

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

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

—

•

—

•

—

•

—

438

™E GAZETTE OF INDIA EXTRAORDINARY

PART I - S E U 1

A 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.

—

dated— —

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

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

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

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 T O

(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 t V 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

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 —

—"