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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No 203] NEW DELHI, THURSDAY, OCTOBER 13, 1977/ASVINA 21, 1899

Separate paging is given in this Part in order that it may be filed as a separate compilation

MINISTRY OF COMMERCE

PUBLIC NOTICES

IMPORT TRADE CONTROL

New Delhi, the 13th October 1977

SUBJECT,—Terms and conditions for licensing of private sector and public

sector imports under the Sixth Danish Loan, 1977.

No 89-ITC(PN)/77—The terms and conditions governing the issue of import licences financed under the Sixth Danish Loan, 1977, as given in Appendices I & II to this Public Notice, are notified for information

APPENDIX I

Conditions for Licensing Private Sector Imports under the Sixth Danish Loan, 1977.

I(1) —The Sixth Danish Loan extended in 1977 by the Government of Den- mark car be used, for financing import, from Denmark of such Danish Capital goods, components and spare parts as are listed in Annex I The loan can also be used to pay for Danish services required for the implementation of the development projects in India including in particular. pre-investment studies preparation of projects, provisions of consultants during the implementation of projects, assembly or construction of plants or buildings and technical and ad- ministrative assistance during the initial period of undertakings established by means of the loan

1(2) —Only goods of Danish origin are eligible for being financed under this Credit

SUCTION II—ISSUE OF IMPORT LICENCES

1K1) —The import licence will be issued on CIF basis with an initial validity period of 12 months For extension of the validity of the licence, the Licensee should approach the licensing authority concerned within the validity period of the licence, who shall consult the Department of Economic Affairs, (W E 111 Section) in the matter.

11(2).—Firm order on CIF/C&F bauis must be placed on the suppliers in Denmark and sent to the Department of Economic Affairs (W.E III Section) within 4 months from the date of i!=sue of the import licence If firm ordeis cannot be finalised within the time limit of 4 months the Licensee should sub- mit to the Chief Controller of Imports and Exports, New Delhi or other licensing authorities, as the case mav be, a proposal seeking an extension in the ordering period, furnishing justification und explanation as to why ordering could not be completed within t'ie initial validity period Such requests for extension in thja ordering- period, wiL be considered on the merit of each case by ihe UreiMirn! authorities, who may grant extension upto a further period of 4 months If, however, extension is sought beyond 8 months from the data ol issue of nTiDort licence, such proposal .should invariably be referred by the licensing authorities to the Department oi Economic Affairs, (W E III Section), Ministry of Finance

11(3).—The licence will bear the superscription, Sixth Danish Loan 1977 and indicate the Pullic Notice number under which these licensing conditions arc issued. The licence code for the first and second suffix will be "S'V'DN". Thie licence code will be mentioned in all the shipping documents as well as m the "S" form required to be furnished to the Reserve Bank of India at the time oi rupee deposit.

11(4) —As soon as the importer receives the import licence, he should send a photostat copy of the Import licence to the Ministry of Finance, Departmeni of Economic Affairs, (W E III Section) alonj? with the following information.—

(I) No and Date of Import Licence (ii) Value. (lii) Exchange rate, if any, indicated on import licence. (lv) Date by which copies of contract are expected lo be furnished to Department of Economic Affairs.

11(5).—The licence will not be valid for remittance from India Payments tc the Danish Suppliers can be made only in accordance with the procedure set forth in the Section V.

SECTION III —FINALISATION OF CONTRACT

III (l).—-The minimum value of contract eligible for being financed under the credit is Danish Kroner 50,000 in respect of Capital Equipment and Component! and Danish Kroner 25,000 in respect of spares.

IIK2),—Only one contract should normally be entered into against an impnri licence In exceptional cases more than one contract will be permitted to b< entered into, foi which prior approval of the Department of Economic Affairs Ministry of Finance (W E III Section) should be obtained s °on after the date oi issue of the import licence.

111(3) —The term "Firm Orders" referred to in Section 11(2) means purchase order placed bv the Indian licensee on the Danish supplier duly supported bv order confirmation by the latter or purchase contract duly signed by both the Indian importer and the Danish supplier. Orders on Indian Agents of Danish suppliers and/or order ronflrmation of such Indian Agents are not acceptable

111(4).—The CIF/C&F value of the contract should be expressed in Danish

Kroners.

171(5) —The contract must provide for payment on cash basis le on presenta- tion of shipping documents. No credit facility of any kind will be permitted to be availed of by the Indian importer from the Danish suppliers.

HI(fl) The contract of supply between the Indian Importer and the Danish Supplier should provide for the import heine financed nut of the Sixth Danish Loan m accordance with the procedures set forth in these Licensing Conditions, ani should also be made subiect to the approval by the Government of India. Importers should take special care to inform the Suppliers about this condition

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and also incorporate a clause to ihu effect in the Supply Contract Moreover approved orders should not be cancelled without prior concurrence of the Minis- try of Finance, Department of Economic Affairs, (W,E, III Section).

111(7).—The amount of Indian Agent's Commission payable, if awy, and in- cluded in the value of the contract should be specifically indicated Any pay- ment on this account, should be made in Indian rupees to the Agent in India. No remittance of foreign exchange will be permitted for this purpose. Such pay- ments, however, will form part of the licence value and will, therefore be charged to the licence

111(8) —The purchase order and the supplier's order confirmation should be

in English only.

111(9) — VOT any customary performance guarantee, where required, the sub- pliers should be asked to furnish a bank guarantee/warranty.

SECTION IV—APPROVAL OF CONTRACT

IV (1)—Immediately after the contract is concluded, the importer should burnish 4 photostat or certified copies of the contract/supply orders accompanied by a photostat copy of the Import Licence and Bank Guarantee from an approved scheduled bank m the iorm attached (Annexure IV) to the Ministry of Finance, Department of Economic Affairs (WE. Ill Section). In addition, the importer is also required to furnish the information as per details in Annex II

IV(2),—If the contract documents, the request for issue of letter of authorisa- tion import lioence and the Bank Guarantee are found to be in order, the Ministry of Finance, Department of Economic Affairs, (WE. Ill Section) will forward copies of the contract to the Danish authorities through the Embassy of India, Copenhagen for approval

SECTION V—PAYMENT TO THE SUPPLIERS

-v"(l)_A Letter of Authority to the Denmarks National Bank (In the form at Annex III) authorising payment to the suppliers against shipping documents •will be issued only after the Danish approval to the contract is received.

V(2) —The validity of the Letter of Authority will be determined keeping in view the delivery schedule indicated in the contract In no case will be Letter of Authoirty be made valid beyond the validity of the Import licence

V(3) —Since the payments to the suppliers under the credit are generally made by the Denmarks National Bank against the production of shipping docu- ments, the grace period facility will not normally be applicable to import? financed under thjs credit.

V(4) In case the shipment/payments to the suppliers are not completed within the validity period of the Letter of Authority, the Importer should ap- proach the Ministry of Finance, Department of Economic Affairs (W.E III Sec- tion) for suitable extension of the Letter of Authority well before the expiry period of the Letter of Authority. Such a request should be accompanied by a photostat copy of the revahdated Import Licence if the period of extension sought for is beyond the original validity of the Import Licence

V(0).—If the request for extension in the period of validity of the Letter of Authority is not received within a period of six months from the validity date of the Letter of Authority the un-utihsed balance in the Letter of Authority -will be deemed to have been surrendered and the Letter of Authority will stand lapsed automatically.

V(6) —The original negotiable shipping documents will be invariably for warded bv the Denmarks National Bank tn the concerned importer's bank In India, which would be a branch of any of the nationalised Bank, who should release these negotiable set of documents to the importer concerned onlv after ensuring that the importer has deposited —

d) the rupee equivalent of the payments to thP supplier.) in Danish Kroner at the prevailing composite rate nf exchange to be calculated In the manner JS prescribed in Chief Controller of Imports and Exports's Public Notice No, 8-ITC(PN)/76, dated 17-1-1976 and ag

mav be notified by the Government from time to time through Pub- lic Notices ol the C C I & E. gr through Exchange Control Circulars of the Reserve Bank of India;

(u) interest calculated at the rate of 9 per cent per annum for the first 30 days and at 15 per cent per annum for the period in excess of 30 days in termb of Public Notice No 4G-irC(PN)/7G dated l6-b-197b on the amount required to be deposited vide item (i) above, recken- ed from the date of actual payment to the bupplier by the Denmarks National Bank, to the date of actual deposit of the rupee equivalent by the importer in the State Bank ol India, Tis Hazari, Delhi or Reserve Bank of I;idia, New Delhi.

V(7) —It shall be the responsibility of the Indian Bank concerned, to ensure that the amounts due are received from the importer and correctly deposited into Government Account before the import documents are handed over to the importers, and at any date not later than 10 days after receipt of negotiable documents The licensee should also ensuie that the amounts due arc correctly- deposited into Government account before taking delivery of the documents from their bankers Failure to adhere to thit, will be treated as a violation of the Licensing Conditions, I T.C Act and Foreign Exchange Control Regulations.

V(8) —It will be obligatory for the importers to make the requisite rupee depr< only through Authorised Dealers in foreign exchange and also get the Exchange Control copy of the Licence endorsed bv them as required in Public Notice No. 184-ITC(PN)/68 dated the 30th August. 1968 The requisite 'S' form will be bent by the concerned bank to the Reserve Bank of India, Bombay,

V(9) —The moneys specified in Section V(8) should be deposited in cash either with the Reserve Bank of India, New Delhi or the State Bank of India, Tis Hazari, Delhi or the amount mav be remitted through a Demand Draft drawn and in favour of Agent, State Bank of India, Tia Hazari Branch, Delhi, Or the Reserve Bank of India, New Delhi to the credit of the Central Government Account under the head of Account "K—Deposits and advances—Deposit not bearing interst—848—Civil deposits—Deposits for purchases etc abroad—Purchases etc under Sixth DaniEh Loan for 1977".

V(10).—The advice of rupee deposits referred to above, should be sent to tho Controller of Aid Accounts and Audit, Ministry of Finance, Department of Economic All airs, UCO Bank Building, Parliament Street, New Delhi by enclos- ing original receipted treasury challan ni the proforma prescribed under Public- Notice No. 74-ITC(PN)/74, dated 31-5-1974 as amended vide Public Notice No. 103-ITC(PN)/76 dated 12-10-1976 The Information in regard to Ministry jf Fmarice, (Department of Economic Affairs)\ Letter of Authority No, amount of foreign currency for which rupee deposit is made together with rate of conver- sion, adopted, date of payment to the Danish supplier, amount of interst and period for which it is calculated and the total amount deposited should in- variably be indicated in the challan form

SECTION VI —MISCELLANEOUS

VI (1) —After the obligations in terms of the Bank Guarantee and the letter of authorization issued by the Ministry of Finance, Department of Economic Affairs are fulfilled, the importers' bank can apply to the C.A.A.& A,, Ministry of Finance (Department of Economic Affairs), UCO Bank Building, Parliament Street, New Delhi for the release of Bank Guarantee, giving necessary particu- lars of deposits In the Proforma prescribed at Annexure V

VI (2) —The importer should also furnish a quarterly report, as In Annexure VI. showing the utilisation status of the licences to the Ministry of Finance, De- partment of Economic Altair-, (WE III Section) and the Controller of Aid Accounts and Audit, Department of Economic Affairs, Jeevan T)eep Building, Parliament Street New Delhi-110001

VI (3) —It should be understood that the Government of Iudia will not under- take any responsibility for dispute, if any that may arise between the licensee and the supplier. The eruditions to be fulfilled by the supplier before payment could be effected to him must be clearly spelt out to the supplier by the Importer and a provision dealing with settlement of disputes may be included in the con- tract Itself.

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Vl(l)—The licensee shdll promptly comply with any directions, instructions, or ordeis issued by the Government of India from time to time regarding any and all matle;s dn^ln^ from or pertaining to import licence mid for meeting all obligations under Danish Credit

VI(5) ---Any breach or violation of the condition$ set forth in the above clauses will result in apnropnate action under the Imports antf Exports (Con- trol) Act

ANNEXUH? I

Items ehgit>le for import under the Sixth Danish Loan

(1) Survev Vessels, Trawler and Miscellaneous Equipment for the develop- ment of Fisheries and Fishery Industry

(2) Refrigeration equipment C.i) Machinery and equipment for the Cement industry (4) Machinery and equipment for development of the Agricultural and Live- stock industries.

(5) Machinery and equipment for the dairy industry (6) Equipment for Research and Technical institutions (7) Scientific, medical, optical, measuring and controlling instruments (8) Equipment for wood-working, crankshaft grinding machines and other Machine toolg required m the small scale industry sector,

(9) Machine Tools for the medium and large scale industries (1(1) Spare parts for Danish Capital Equipment (11) Machinery and equipment for the Fertilizer and Petro-chemical indus- tries.

(12) Machinery and equipment for Spray Drying Plants (13) Machinery and equipment for the Plastic, Rubber and Chemical indus- tries

(14) Catalysts (15) Equipment for the processing, drying and storage of food products. (16) Electrical and electronic equipment, (17) Components for the capital goods production and other manufacturing programmes in India.

(ia) Such other equipment as may be decided upon by mutual agreement between the two Governments

ANNEXURE II

(1) Details of the Import Licence—

(a) Number (b) Date of issued (c) Value,.

(A photostat copy of the Import Licence may also be furnished).

(ii) Name and Address of the Importer (iii) Name and Address of the Danish Supplier (lv) Value of the contract /order in Danish 'Kroners , (v) Short description of the goods to be imported (vi) Time for delivery (A schedule indicating probable dates and amounts of payments to the supplier may also be given).

(vii) Detailed list of shipping documents, like Bill of Ladine, Invoices, Certificate of Origin, etc, which the Denrnarks National Bank should demand from the Suppliers before making payment, together with the number of copies of each document required

(viii) Indian Agent's Commission, if any, whether included in the contract (exact amount t0 be indicated) (The Indian Agents' Commission will be payable by the Importers in rupees and will not be included in the value of the Letter of Authority).

(Ix) Name of the Importer's Bank m India

(x) Date upto which Letter of Authority should be valid (xi) Particulars of the Bank Guarantee, indicatinE the period upto which it is valid.

(xii) Special instructions, if any .. , ,

ANNKXURK III

No.

Government of India (Bharat Sarkar)

Ministry of Financ^ (Vitta Mantralaya.)

Department 0/ Economic Affairs (Arthik Kurya Vibhaa}

New Delhi, the

To

The Danmarks National Bank, Copenhagen

Dear Sirs,

Sixth Danish-Indian Loan Agreement

Letter of Authority No.

In accordance with the terms and conditions of the above Credit Agreement we hereby authorise you irrevocably to pay an amount of Danish Kroner —.. . _ „ _. . __ (Danish Kroner) • —•— —— to- against the delivery of the following documents.—

Invoice .. Bill of landing . ,.

copies copies

Insurance Policy, if any, . copies, etc

covering the import of against Contract No . .. approved by the Danish Ministry of Foreign Affairs on . .. * .

2. After payment, the original set of the above documents may kindly be forwarded direct to the (Name of the Indian Bank)

3 The amount paid plus your charges, if any, may be debited to our Account with you designated "Government of India Loan Account" and necessary debit advice (in duplicate) along with one set of documents forwarded to the Controller of Aid Accounts and Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, Parliament Street, New Delhi-110001.

4, One copy each of the above debit advices including the bank charges, if any, may also be sent to the Importer in India

5 This authority will remain valid upto the

day of

Yours faithfully.

Copy forwarded to- — 9% per annum for the first 30 days and at the rate of 15% per annum for the period excess thereof reckoned for the period between the dato of pay- ment to the supplier and the date on which rupee equivalent are deposited into Government account (both days Inclusive) is also resuired to be deposited into Government account In terms of Public Notice No. 46-ITC (PN) /76, dated

H57

]6,6-1976 It should be ensured that these deposits are mode before the original el J H ?¹'! d o c u™e l l ls a" han10 d a vs a f t er t he ^ceipt of negotiable docu- ments Failure in this behalf will be regarded as a violation of ForCir,n Exchange Control Regulations

ANNEXURE IV

GUARANTEE BOND

(To be furnished by Banks under the procedure for the import ot gooas under the Sixth Danish Loan, 197Y).

To

The President of India,

fn consideration of the President of India (hereinafter called 'the Govern- ment") having agreed to arrange for payment in DKr for the import of

(hereinafter called the 'impoyter') under terms and conditions by (hereinafter called the 'importer') under terms and conditions of the Sixth Danish Loan, 1977 and in pursuance of Import Licence No — •—" issued on- in favour of the Importer against the above agree- ment we • .— (Bank) at the request of the importer by the Denmark National Bank converted at the prevailing composite rate of exchange calculated as per instructions issued by the Government in Chief Controller of Imports & Exports Public Notice No 8-ITC(PN)/76 dated 17 11076 or as notified from time to time through Public Notices/AD Circulars within ten days of the receipt of jadvice of payment for credit to the Government account in the manner and against the appropriate Heads of Account as indi- cated bv Government of India under the said Credit tocether with interest there- on at the rate of 9 per cent per annum for the first 30 davs and at the rate of 15% per annum for the period in excess thereof (as prescribed in Public Notice No. 46-ITC(PN)/76, dated 16-6-1976) reckoned from the date of pavment to the Danish supplier to the date of pavment of runce equivalent for Credit to the Government Account, The negotiable

2 W>v the

(Binki also undertake to indemnify and keep Indemnified the Government against anv default in payment bv th° importer of any sum that may be due and pavable from time to time by th" Importer to the Government at such place and m such manner as the Government may from time to time direct such sums not exee-ding Rs —

.—- or any part thereof for the time being due and pavable by the Importer together with interest hereon at the rate of 9% per innu"i for the first 30 days and at the rate of 159? per annum in excess thereof reckoned from the date 'of payment to the overseas sunpber The decision of th" Govern- ment as to any default in the said payment by the Importer or on his part and in regard to the amount pavable to the Government by us (Bank), shall he final and binding on us

(Bank)

3 \\re , . •_. -(Bank) further agree that in case of increase in the value of import or increase in the value of unfulfilled deliveries under the contract as a result oC chanee in the composite rate of eHaii'jf mentioned in para 1 above, the amount of this guarantee bond will be adiusted as on the date when the change takes place in proportion to this change

4 we

(Bank) 'further agree that the guarantee herein contained shall remain m ftril force and effect during the period that would be taken for the performance of the said agreement/contract and that it shall con- tinue to be enforceable till all the dues to the Government undei or by virtue of this guarantee have been fully paid and its claim satisfied or disehaic;ed

•5 The guarantee herein contained shall not be effected by any change in the constitution of the Importer or the — (Bank), and the Government shall have the fullest liberty without affecting the guarantee to postpone for any time and from time to time any of the powers exerclsable bv it against the importer and either to enforce payment by the importer of anv of the amounts the payment whereof is intended to be hereby secured nnd he— 03ank) shall not be released from its liability under the guarantee by any exercise by the Government of the liberty with reference to the matter aforesaid

giv e^to t he ImP °r t er or any other forbearance, act or ™, ™ ™ " ir h?ng* + or omission on the part of the Government or any indulgence by the Govern- ment, to the Importer or by any matter or thing whatsoever which under the law relatmgto smietie, shall but for this provision, have the effect of so releas- ing the -(Bank), from its such liability

⁶ W e' ~ (Bank), undertake not to revoke this guarantee during

Its currency except with previous consent of the Government m writing

7 Our hablhtv under this guarantee it, restricted to Hs ,—^-^ (Plus interest and commission charges, if any, not expected to exceed one per cent of the guaranteed amount) and this guarantee sliall remain in force till l hp — d ay °f* ~—- (month), 19 .. Unless claims under this guarantee are made in writing within six months of this date and unless a -uit or action to enforce these claims is commenced within another six months there- after, JC, upto , all Government's rights under this guarantee shall be forfeited and we shall be relieved und discharged from all liability thereunder.

Dated, the •- day of

For Bank Accepted for and on behalf of the President of India by Shn . — Name and Designation Signature

NOTE —The value of the stamped paper on which thi=; guarantee is to be exe- cuted is to be adjudicated by the Collector of Stamps under Section 31 of the Indian Stamps Act

ANNEXUHE V

PROFORMA

1. Name and full address of the importer/licensee on whose behalf the bank guarantee was furnished

2 The amport licence number and date and value.

3 Number, date and amount of the guarantee furnished

4, Particulars of the Letter of Authority for opening Letter of Credit obtained from the Ministry of Finance.

(a) Number and date of the Letter of/Authority (b) Amount of the Letter of/Authority (in Danish Kroncrs)

5 Particulars of Imports effected and rupee deposits made

(a) Name of supplier (s) (b) Amount in Danish Kroner actually paid to the supplier(s) mentioned at (a) above.

(c) Date of payment to the supplier by the Danmarks National Bank (d) Amount of rupee deposit: —

(i) Rupee equivalent of Danish Kroner amount paid to the supplied (u)

Danish Kroner=Rs.

(ii) Interest paid. (m) Period for which the interest has been calculated from to dv) Total deposit made, (v) Date and place of deposit. (vi) Number and date oi the Treasury Challan (to be enclosed) If the Treasury Challan has alreadv been sent, reference to the letter number and date with wltfch it was sent may be quoted

•This^t7~shall^beVrived at by adding one month to the date by which all payments to the Suppliers are expected to be finalised,

1159

(vii) If the rupee deposit mentioned in (d) (iv) above was made by means of Demand Draft, the number, date, and amount of the draft and particulars of your letter with which it was sent to the Accountant General, Central Revenues, to be indicated.

6 Amount utilised and balance unutilised (m Danish Kroner) against each Letter of Authority —

7 A certificate that the balance indicated m 6 above, has not been utilised and no shipment has been made thereof, and the same may be tieat^d as lapsed.

(Authorised signatures)

ANNEXUHE VI

STATEMENT SHOWING QUARTERLY REPORT ON UTILISATION UNDER SIXTH DANISH LOAN

1. Name of Importer. 2 No and date of Import Licence, 3 Value of Import Licence. 4. Letter of Authority No. and date ' 5 Amount of Letter of Authority. 6 Date of validity of Letter of Authority. 7 Value of orders placed 8 Amount utilised during the quarter D Kr 9 Total amount utilised. D Kr.

10 Total Amount deposited into Government Account 11 Payment expected to be made during the subsequent quarters (give

figures-—Quarter-wise).

12 Surrenders, if any

APPENDIX II

Conditions for Licensing Pubhc Sector Imports under the Sixth Danish Loan 1977

Id)—The Sixth Danish Loan extended in 1977 by the Government of Den- murk can be used lor nnancinc imports from Denmark of such Danish capital goods, components and spare parts as are listed in AnnexUre I The loan can also be used to pay for Danish services required for the implementation of the development projects in India including, m particular, pre-Investment studies preparation of projects, provisions of consultants during the implementation -of pfoiects assembly or construction of plants or building and technical and ad- ministrative assistance during the Initial period of undertakings established by means of the loan.

1(2)—Only goods of Danish origin are eligible for being financed under this Credit

SECTION II.—ISSUE OF IMPORT LICENCES.

11(1 )j—The import licence will be Issued on CI.F. basis with an initial validity period of 12 months For extension of the validity of the licence, the Licensee should approach the licensing authority concerned within the validity period of the licence, who shall consult the Department of Economic Affairs (WE III Sec- tion) in the matter.

IIC) Firm orders on C I.F /C&F basis must be placed on'-the suppliers in Denmark and sent to the Department of Economic Affairs (W.E. Ill Section) within 4 months from the date of issue of the import licence. If firm orders cannot be finalised withm the time limit of 4 months the Licensee should submit to the Chief Controller of Imports and Exports. New Delhi or other licensing authorities as the case may be a proposal seeking an extension m the ordering period furnishing justification and explanation as to why ordering could not be completed within the initial validity period. Such requests for extension fa the ordering period, will be considered on the merit of each case bv the licensing authorities who may grant extension upto a further period of 4 months If,

however, extension is sought beyond 8 months from the dale oi issue or import licence, such proposal should invariably be referred by the licensing authorities to the Department oi Economic AtTan., (W E III Section), Ministry ol Finance

11(3).—The licence will bear the superscription "Sixth DamshiLoan 1977" and indicate the Public Notice number under which these licensing conditions are issued. The licence codesifor the first and second suffix will be "S"/"DN". This licence code will be mentioned in all the shipping documents as well as in the " S' form required to be furnished to the Reserve Bank of India at the time of rupee deposit

11(4)—As soon as the importer receives the import licence, he should send a photostat copy of the Import Licence to the Ministry of Finance, Department of Economic Affairs, (WE III Section) along with the following information'—

!

(i) No. and Date of Import Licence, (ii) Value; (ui) Exchange; rate, if any, indicated on import licence; and (iv) Date by which copies of contract are expected to be furnished to

Department of Economic Affairs

11(5).—The licence will not be valid for remittance from India Payments to the Danibh Suppliers can be made only in accordance with the procedure set forth in Section V.

SECTION III — FINALISATION OF CONTRACT

III(l) —The minimum value of a contract eligible for being financed under the credit is Danish Kroner SO,000 In respect of Capital Equipment and Compo uents and Danish Kroner 25,000 in respect of spares.

111(2) —Only one contract should normally be entered Into against the im- port licence In exceptional cases, more than one contract will be permitted to be entered into, for which prior approval of the Department of Economic Affairs, Ministry of Finance, (W E. III Section) should be obtained soon after the date of issue of the import licence.

Ill(3) —The term "Firm Orders" referred to in Section 11(2) means purchase order placed by the Indian licensee on the Danish supplier duly supported by order confirmation by the latter or purchase contract duly signed by both the Indian importer and the Danish •supplier Orders on Indian Agents of Danish suppliers and/or order confirmation of such Indian Agents are not acceptable

HI(4) —The CIF/C&F value of the contract should be expressed m Danish Kroners.

in(5) —The contract must provide for payment on cash basis i.e. on presen- tation of shipping documents No credit facility of any kind will be permitted to be availed of by the Indian importers from the Danish suppliers

111(6),—The contract of supply between the Indian Importer and the Danish Supphet should provide for the import being financed out of the Sirth Dortish Loan in accordance with the procedures set forth in these Licensing Conditions, and Lhould nlso be made tubiect to the approval by the Government of India. Importers should take special care to inform thc Suppliers about this condition and also incorporate a clause to this effect in the Supvlv Contract Moreover, approved orders should not be cancelled Without prior concurranco of the Minis- try of Finance, Department of Economic Affairs, (WE III Section)

in(7) —Thr amount of Indian Agent's Commission Included in the value of the ccntrad should be specifically indicated Any payment on this account, should be made m Indian rupees to the Ageni in India No remittance of foreign exchange will be permitted for this rjumo^e Such payments however, will form part of the licence value and will, therefore, be charged to the licence

ITI(8) The purchase order and the supplier's order confirmation should be

in English only

HI(9) For any customary performance guarantee, where required, the sup- pliers should be asked to furnish a bank guarantee/warranty

Il6i

SICIION IV—APPROVAL OF CONTRACT

IV (1) —Immediately after the contract is concluded, the importer should furnish 4 photostat or certified copies of the contract/supply orders accompanied by a photostat copy of the Import Licence, to the Ministry ol Finance, Depart- ment of Economic Affairs. (WE III Section) In addition, the importer is also required to furnish the information as per details in Annexure II

IV(2).—If the contract documents, the request for issue of letter of authori- sation and the import licence are found to be in order, the Ministry of Finance, Department of Economic Affairs (WE III Section) will forward copies of the contract to the Danish authorities, through the Embassy of India, Copenhagen for approval

SECTION V—PAYMENT TO THE SUPPLIERS

V(l) —A Letter of Authority to the Danmarks National Bank (in the form at Annexure III) authorising payment to the suppliers against shipping docu- ments will be issued only after the Danish approval to the contract is received

V(2) —The validity of the Letter of Authority will be determined keeping in view the delivery schedule indicated in the contract In no case will the Letter of Authority be made valid beyond the validity of the import licence

V(3) —Since the payments to the suppliers under the credit are generally made by the Danmarks National Bank against the production of shipping docu- ments, the grace period facility will not wormallv be applicable to imports financed under this credit

V(4).—In case, the shipment/payments to the suppliers are not completed within the validity period of the Letter of Authority, the Importer should ap- proach the Ministry of Finance Department of Economic Affairs (W.E. Ill Sec- tion) for suitable extension of the Letter of Authority well before the expiry period of the Letter of Authority, Such a request should be accompanied bv a photostat copy of the revalidated Import Licence, if the period of extension sought for is beyond the original validity of the Import Licence

V(5) —If the request for extension in the period of validity of the Letter of Authority is not received within a period of six mccths from the validity date of the Letter of Authority, the un-utihsed balance in the Letter of Authority will be deemed to have h^en surrendered and the Letter of Authority will stand

V(6) —The original negotiable shipping documents will be invariably for- lapsed automatically warded by the Danmarks National Bank to the concerned importer's bank in India which would be a branch of any of the nationalised banks any who should release these negotiable set of documents to the Importer concerned only after ensuring that thf importer has deposited

n k o r s F a i l u r5 *° a d

o

#,t

A

documents The licensee should also ensure that the amoutn=, due are correctly + h K ldvn t⁰ Government account before taking delivery of the documents from K ia h e re *? t h" will be treated as a violation of the Licensing condihons, I T.C Act and foreign exchange Control Regulations.

V(8),—Public SHL lor importers (including Departments of the Cenlr.il Gov.

einment) should make the requisite rupee deposit only through Authorised IJealcrs m foreign exchange and also get the Exchange Control copy of the Licence endorsed by them as required m Public Notice No l84-ITC(PN)/68 dated the 30th August, 1968, The requisite 'S' Form will be sent by the con- cerned bank to the Reserve Bank of India, Bombay.

VC4)— Thp "innevs specified in Section V(b) should be deposited in cash either with the Reserve Bank of India, New Delhi or the State Bank of India, TJS Hazan, Delhi or the amount may be remitted through a Demand Diaft drawn on and in favour of Agent, State Bank of India, Tis Hazan, Delhi-6 to the credit of the Centra] Government Account under the head of Account "K-Depos-its and advances—Deposit not bearing interest—843—Civil deposits—Deposits " for pur- chases etc. abroad—Purchases etc. under Sixth Danish Loan for 1977"

V(10—Thp ruK'icc of rupee deposits referred to above should be sent 1o "the Controller of Aid Accounts and Audit, Ministry of Finance, Department of Eco- nomic Affairs, UCO Bank Building, Parliament Street, New Delhi bv enclosing original receipted treasury challan in the proforma prescribed under Public Notice No 74-ITC (PN)/74 dated 31-5-1974, as amended vide Public Notice No 103-ITC(PN)/76 dated 12-10-1976 The information in regard to Ministry of Finance (Depaitment of Economic Affairs' Letter of Authority No, amount of foreign currency for which rupee deposit is made together with rate of conver- sion adopted, date of payment to the Danish supplier, amount of interest and period for which it Is calculated and the total amount deposited should invariably be indicated in the challan form

SECTION VI - MISCELLANEOUS

VK1)—The importer should also furnish a quarterly report, as in Annex IV, showing the utilisation status of the licence to the Ministry of Finance, Depart- ment of Economic Affairs, (WE III Section") and the Controller of Aid Accounts and Audit, Department of Economic Affairs, Jecvan Deep Building, Parliament Street, New Delhi 110001

¹ VI(2)—It should be understood that the Government of Indm will not under- take any responsibility for disputes, if any, that may arise between the licensee and the supplier The conditions to be fulfilled by the supplier before payment could be effected to him must be clearly sjbejt out to the supplier by the importer and a provision dealing with settlement of digputes may be included in the con- tract itself

VI(H)—The license? .shall promptly comply With any directions, instructions, or orders issued by the Government of India from time to time regarding any and all matters arising from or pertaining to import licence and for meeting all obligations under the Vlth Danish Credit.

VI(4)—Any breach or violation of the conditions set forth In the above clauses will result in appropriate action under the Imports and Exports (Control) Act.

ANNEXTTRE I

Items eligible for import under the Sixth Danish Loan

(1) Survey Vessels, Trawler and Miscellaneous Equipment for the deve-

lopment of Fisheries and Fishery Industry

(2) Refrigeration equipment (3) Machinery and equipment for the Cement industry. (4) Machinery and equipment for development of the Agricultural and

Live-stock industries

(5) Machinery and equipment for the dairy industry (6) Equipment for Research and Technical institutions

1163

(7) Scientific, medical, optical, measuring and controlling Instruments (8) Equipment for wood-working, crankshaft grinding machines ond other Machine tools required m the small scale industry sector

(9) Machine Tools for the medium and large scale industries.

(10) Spare paits for Danish Capital Equipment

(11) Machinery and equipment tor the Feitillzer and Petro-chemical indus- tries,

(lli) Machinery diid equipment for Spray Drjmg Plants. (VA) Machinery and equipment for the Plastic, Rubber and Chemical indus- tries

(14) Cataljbts

(15) Equipment for the processing, drying and storage of food products.

(16) Electrical and electronic equipment.

(17) Components for the capital goods production and other manufacturing programmes in India

(18) Such other equipment as may be decided upon by mutual agreement between the two Governments

ANNtxURE II

(I) Details of the Impoit Licence—

(a) Number

(b> Date of issue

(c) Value

(A photostat copy of the Import Licence may also be furnished) (ji) Name and Address of the Importer

(lii) Name and Address of the Danish Suppliers

~(iv) Value of the contract/order In Danish Kroners

(v) Short description of the goods to he imported

(vi) Time for delivery (a .schedule Indicating probable dates and amounts of payments to the supplier may also be given),

(vn) Detailed list of shipping documents, like Bill of Lading, Invoices, Certi- ficate of Origin, etc, which the Dwimarks National Bank should demand from the Suppliers before milking payment, together with the number of copies of each document required

(viii) Indian Agents' Commission, if any, and whether included in 'he contract (exact amount to be indicated) (The Indian Agents' Commission will be payable by the Importers in rupees and will not be Included In the value of the Letter of Authority)

(IX) Name of the Importer's Bank In India

(x) Date upto which Letter of Authority should be valid

(xi) Special Instructions, if any,

ANNfXURl', I II

No.

Government of India (Bharat Sarkar)

MINISTRY OF FINANCE (Vitta Maniralaya)

Depti of Economic Affairs (Arthik Karya Vlbhag)

New Delhi, the

To

The Denmarks National Bank, Copenhagen,

Dear Sirs.

Sixth Damsh-IndLav Lnav Agreement

Letter of Authority No.

In accordance with the terms ard conditions of the above Credit Agieement, we herejy authorise you Irrevocably to pay an amount of Danish Kroner

. . to . .

ix>

(Danish Kroner , to ) to to against the delivery of the following documents:—

Invoice copies Bill of Lading copies Insurance Policy, if any, copies, etc.

• —

to——• •—

covering the import of against Contract No approved by the Danish Ministry of Foreign Affairs on

.

1 Alter payment, the original set of the above documents may kindly be for- warded direct to the (Name of the Indian Bank)

3, The amount paid plus your charges, if any, may be debited to our Account with you designated ' Government of India Loan Account" and necessary debit advice (in duplicate) jlong with one set of Documents forwarded to the Controller of Aid Accounts and Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, Parliament Street, New Delhi-110001.

4. One copy each of the above debit advices including the bank charges, if any, may also be sent to the Importer in India

5 This authority will remain valid upto the . day of

Yours faithfully,

Copy forwarded to¹—

(The Importers' Banker) They are requested to arrange to deposit the rupee equivalent of amounts disbursed to the Danish supplier by applying the composite rate of exchange (prevailing on the date of payment) which 1B to be calculated in the manner prescribed in Public Notice No 8-ITC(PN)/74 dated 17 1 1976 or nuch other Public Notice as may be issued from time to time. Interest @ 9 per cent per annum for the first 30 days and at the rate of IB per cent per annum for the period excess thereof reckoned for the period between the date of pay- ment to the supplier and the date on which rupee equivalent are deposited into Government accqunt (both days inclusive) is also required to he deposited into Government account In terms of Public Notice No 46-ITC(PN)/76, dated 16 6 1976. It should be ensured that these deposits are made before the original set of import documents are handed over to the importer for custom clearance, etc., and at any rate, not later than 10 days after the receipt of negotiable documents Failure in this behalf will be regarded as a violation of Foreign Exchange Control Regulations.

ANNEXUBF IV

Statement showing Quarterly Report on Utilisation under Sixth Danish Loan

1 Name of Importer, 2 No and date of Import Licence 3 Value of Import Licence 4 Letter of Authority No and date. 5 Amount of Letter of Authority. G Date of validity of Letter of Authority 7. Value of orders placed 8, Amount utilised during the quarter DKr, 9 Total amount utilised D Kr.

10 Total Amount deposited into

Government Account Rs.

11 Payment expected to be made during the subsequent quarters (give figures—Quarter-wise).

12. Surrenders,'if any.

n65

1167

n69

1171

1173

1175

H77

1179

II8I

rr83

1185

SUBJECT.—Import Policy for April, 1977—March, 1978.

No. 90-rtC (PN)/77.—Attention is invited to import policy as contained in the Import Tjade Control Policy Book (Volume I) for April, 1977—March, 197R

2. The following amendments may be made at the appropnart place in the Import Trade Control Policy Book (Volume I) for the period April 1977—March, 1978 :—

Reference

Detailt of amendments

Page No. of Policy Book (Volume I)

( 1)

(i)

(3)

119.

The description of this item may be amended ag under •—

Section V, App. 3i Item No. 3 under heading turning ma- chines.

"Horizontal Boring machine of Spindle dia

above 160 mm.

The description of these items may be amended e" 119.

under :—•

"19. Bevel gear checking machine" "35. Automatic Horizontal Spindle surface

grinding machine wilh Rotary tab'e" Section V, App. 3, Item Nos. 19 & 35 under the heading ge"r cutting, generating, fimihJng arid tefting ma- chinei.

1 20 Section V, App. 3, Item No. The description of this item may be amended as

39-

under •— "Vickers Hardness tester".

The description of this item may be amended as

under •—•

Section V, App. 3, item No. 4 under the heading II. T. machine screws and bolts. "High speed flat die thread rolling machine."

125.

The description of these items may be anunded as

under : — "4 Spring and grinding machine with dust

collector "

Section V, App. 3, item Nos. 4 & 10 un^cr the heading plant and machinery for the manufacture of industrial sprihgs.

"10. Internal chambi-r grinding machine

with du^t collector "

125.

(1) This entry may be deleted. (a) The sub-item (u) may be re-numbered Section V, App. 3, item No. 18(1) under the head Pres- ses,

as sub-item (1)

This item may be deleted.

133- Section V, App. 3, item "hole through spindle : 300mm" under the heading pipe latho (pipe threading ma- chine), specification.

163. Section V, App. 11

The following additional ittm may be Inserted

at the appropiiatc place :—• "17A Piano Milling mahine—

2 metre width x 10 mt. length".

163 • Section V, App. n

The following additional items ma) be mf-eried

at appropriate places .—

"20A. NC 2 Axis Contouring NC Lad c

(Centre ht, 240mm)"

"20B. NC 2 Axis NC Milling machine

(Ram type Turret Milling Machine"

. Section V, App. ri, Item No

163.

22(11).

The description of this item may be amended as under :

"Hydraulic presses including Forging preisesj Extrusion presses and Portable

hydraulic presses

164. Section V, App. 11

The following additional irem may be inserted

at the appropriate place •—

"42A, Electric Lamps (GLS) making machi-

nery."

ti87

SUBJECT.— Import Pohcy for April, i977~March, 1978 : Amendment of. No. 9i-rrC(PN)/77.—Attention is invited to the import policy as contained in the.

Import Trade Control Policy Book (Volume I) for the period 1977-78

z. On a review of the position^ it has been decided that colour raw film (positive) mede fiom imported jumbo rolls shall also be released to the actual users under the policy ol direct alloiment Conaequentally, the following cmcndmeni¹ may be made at the appropriate plactb in ll L J1C Policy Book (Volume I) for Apr 1, 1977—March, 1978 :—

Details of amendments

Page No. of ITC Policy Reference Book(Vol I)

(3)

(">

(a)

Section II, S. No. 37.01/08, The existing entry may be substituted by the 34-

sub. S. No. (3).

following :

"Requirement of actual users for (a) black and white (negative"); (b) ORWO colou raw film (negative); and

(3)

w

(c) colour film (positive) made from imported

jumbo rolls ,

will be met through ihe public sector agency-

Please sec Section III of this book.

Section III, Group Aj Item The existing entry may be substituted by the No. 5

following .— "(a) Black and White (negative) j (bj ORWO colour raw film (negative) ; and (c) colour film (positive) made from imported

jumbo rolls "

S3. Seqtion III, Group B, Item The existing entry may be substituted by the No. i.

following :— "Clnematog'raph colour film, Dot exposed (.other than those covered by Group A)."

' K. V SESHADRI. Chief Controller of Imports and Expons.

n89

™, ""-i"-"¹¹- ' "u™t". UUYHNNMKINT OF INDIA PRESS, MINTO ROAD NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI, 1977