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REGISTERED .No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 233] NEW DELHI, THURSDAY, DECEMBER 1, 1977/AGRAHAYANA 10, 1899

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

as a separate compilation

MINISTRY OF COMMERCE

PUBLIC NOTICE

IMPORT TRADE CONTROL

New Delhi, the 1st December 1977

SUBJECT.— Terms and conditions for beaming public sector and private sector imports under the Belgian

Government Credit, 1976-77.

No. 108-ITG (PN)/77.—The terms and conditions governing the issuance of import licences financed under the Belgian Credit, 1976-77, as given in Appendices I and II to this Public Notice are notified, for information.

APPENDIX I

CONDITIONS FOR LICENSING PUBLIC SECTOR IMPORTS UNDER THE BELGIAN GOVERNMENT CREDIT, 1976-77.

I(i) The Belgian Goverment Credit extended in 1976 by the Government of Belgium can be used for financing import from Belgium of capital goods, components, raw materials and spare parts. The loan can be also used to pay for Belgian services required for the implementation of the development projects in India

I (2) Only goods and services of Belgian origin are eligible for being financed under this Credit.

(1429)

Section II—IBNUC of Import licences

II (i) The import licence will be issued on CIF basis with an initial validity of ia monthi For extension of the validity of the licence, the Licensee should approach thr licensing authority con- cerned within the validity period of the licence, who shall consult the Department of Economic Affairs, (W E III Section) in the matter.

II(a) Firm order on CIF/C&F basis must to placed on the suppliers in Belgium and sent to the Department of Economic Affairs (W E III Section) within 4 months from the date of issue of the import licence If firm orders cannot be finalised within the time limit of 4 months, the Licensee should, submit to the Chief Controller of Imports and Exports or other licensing authorities, as the case may be, a proposal seeking an extension in the ordering period, furnishing justification and explanation as to why ordering could not be completed withm the initial validity period Such re- quests for extension in the ordering period will be considered on the merits of each case by the li- censing authorities who may grant extension upto a further period of 4 months If, however, ex- tension ia sought beyond 8 months from the date of issue of import licence, such proposal should in- variably be referred by the licensing authorities to the Department of Economic Affairs, (W.E.III Section), Ministry of Finance

11(3) The licence will bear the superscription, X I t l¹ Belgian Government Credit, 1976 and Indicate the Public Notice number under which these licensing conditions are issued The hcenre code for the first and second suffix will be "S"/"BN". 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 deposits.

11(4) As "oon as the importer receives the import licence, he should send a report to thit effect to the Ministry of Finance, Department of Economic Affairs, (W.E. Ill Section) alongwith the following information :—•

(I) NQ and date of Import Licence.

(II) Vaiue.

(ill) Exchange rate, If any, indicated on import licence

(1V) Date by which copies of contract are expected to be furnished to Department of Economic Affairj.

11(5) The licence will not be valid for remittance from India. Payments tc the Belgium Suppliers can be made only m Accordance with the pro_edure set forth in Section V.

Section HI—Flnallartion of Contract

III(i) Only one contract should be entered imto against the import licence In cxcepttnal 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 should be obtained soon after the date of ijaue of the Import licence.

F III(a) The term "Firm Orders" referred to in Section II(a) means purchase order placed by i u- Indian licensee on the Belgian Supplier duly Supported by order confirmation by the latter or pur- chase contract duly signed by both the Indian Importer and the Belgian Supplier. Orders to Indian Agents of Belgian Suppliers and/or order confirmation of such Indian Agents are not acceot- able.

111(3) The CIF/C&F value of the contract should be expressed in Belgian Francs.

111(4) The contract must provide for payment on cash basis, 1 e. on presentation of shipping documents No credit facility of any kuid will be permitted to be availed of by the Indian importer from the Belgian Suppliers

111(0 The contract of supply between the Indian Importer and the Belgian Supplier should provide for the import being financed out of the Xlth Belgian Credit in accordance with the procedures set forth in these Licensing Conditions, and should also be made subject to the approval by the Government of India. Importers should take special care to inform the Suppliers about this condition and also incorporate a clause to this effect m tht Supply Contract.

111(6) The amount of Indian Agent's Commission included m the value of the contract should \>$ ipecificaUy indicated. Any payment 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 payments, however, will form part of the licence value and will, therefore, be charged to the licence.

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111(7' The T'urchasr nrdir and thf Mipplifr's order confirmation should be in English (inly.

111(8') For any rustomaty pirfoiniancc guaianter, where rcoiiired. thf suppliers should be asked to furnish a hank guarantee/warranty.

Section IV—Approval of Contract

IV(j) Immediately after the contract is concluded, thr importrr should furnish G photostat

IV(a) If thr contract documents, the request for issue of letter of authorisation and the import licence found to be in order, the Ministry of Finance, Deprtment of Economic Affairs, -will approve fh e contract and issue the Letter of Authority in the form at Annex. II.

Section "V—Payment to the Suppliers

V(i) Payment to the suppliers will be made on the strength of Letter of Authority mentioned in IV(a) above against presentation of Shipping Documents.

V(2) The validity of the Letter of Authority will be determined keeping in view the delivery schedule indicated in the contract. In no cise will the Letter of Authority be. made valid beyond the validity of the import hcen.ee.

V{$) Since the payments to the suppliers under the credit are made by the National Bank of Belgium on the production of shipping documents, the grade period facility will not normally be a'iplicale 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 approach the Ministry of finance. Depart- ment of Economic AfFaira, (W.E.III Section) tor suitable extension of the Letter of Authority we before the expiry period of the Letter of Authority. Such a request should be accompanied bv a photostat copy of the revahdated Import Licence if the period of extension sought for is bevond me validity of the original Import Licence.

V(5) If the request for extension in the period of validity of the Letter of Authority is not re- served within a period of six months, from the validity date of the Letter of Authority the un-utilised balance in the Letter of Authority will be deemed to have been surrendered and the Letter of Au- thority will stand lapsed automatically.

V(o) The original negotiable shipping documents will be invariably forwarded by the National Bink of B-lgium to the concerned lmoorter's bank in India, which would be a branch of the State B^nk of India oranr ijfth-nationalised bank? who should release these negotiable set of documents to the importer concerned only after ensuring that the importer has deposited :

(I) the rupee equivalent of the payments to the suppliers in Belgian Francs at the prevailing composite rate of exchange to be calculated in the manner as 'prescribed in Chief Con- troller of Imports & Exports' Public Notice No. 8-ITC(PN)/7G, dated 17-1-10.76 a"d as may be notified by the Government from time to time through Public Notices of the C C I.&E 01 through exchangi Control Circulars of the Reserve Bank of India

(II) Interest calculated at therate of 9% per annum for the first 30 days and at 15% per annum for the period in excess of 30 days in terms of Public Notice No 46-ITC(PN;/76 dated lft-G-iyyG on the amount required to be deposited vide item (1) above, reckoned from the date of actual payment to the supplier by the National Bank of Belgium to the date of actual deposit of the rupee equivalent bv the importer in the State Bank of India, Tis Hu^an, Delhi or Reserve Bank oi Inda, New Delhi.

V(7) It shall be the responsibility of the Indian Bank concerned, to ensure that the amounts •due are correctly deposited into Government Account bifoie the import documents are handed over to the importeis. The licensee should also ensure that the amounts due arc eotrectly deposited into Government account before taking elelivcy of the documents from their Bankers

/(8) Public Sector importers (including Departments of the Centra^ Government) should make t he requisite rupee deposit only through Authorised Dealers in foreign exchange and also get the Exchange Control copy of the Licence endorsed by them as required in Public Noicc No 184- ITC(PN)/6H dated the 30th August, 10.6R. The requisite 'S' form wdl be sent by the eonceined bank to the Reserve Bank of India, Bombay.

y~tQ.) The moneys specified in Section V(G) abive are to b* deposited in cash cither at the Reserve Bank of India, New Delhi or at the State Bank of India, Tis Hazan, Delhi or if this is not feasible the amounts may be remitted bv means of a demand draft obtained from any branch of the

Statr Bank of India or its subsidarirs or any our of thr Nationalise] Banks drawn on and madr pav- ablf- to the Statr Bank of India, Tis Hajari Branch, Delhi G (drawee and Pavee¹) For credit to Go vernment account under the head of account "K Deposits and Advancrs-Drposits not brarmg intrrrst—'843 Civil Drposits—Deposits for purchases, rtc , abroad Purchasrs under Xlth Belgium Credit 1976-77" as contemplated in Public Notices No 74-ITC(PN)/74 dated si-rriQ74 and No. IO3-ITC(PN)/7G dated 12-10-1976 It will be ensured that the rupee deposits are invariably rr_d<" withm 10 days of the receipt of thr negtiable set of shipping documents from the National Bank rf Belgium by thr importer's bank in India

V(io"l The provisions regarding the rccovfry of interest rharpes on the rupee equivalents due will nut, however, apply in the rase of imports bv thr Central and State Government Dr- partmrnts [vide Government of India, Ministry of Finance, Departments of Economic Affairs cir- cular letter No F 45f3o)-ECA(A)/73 dated ai-t-i97fi]

V ( n) The advicr of rupee deposits referred to above, should be sent to the Controller of Aid Accounts and Audit, Ministry of Finance, Department of Economir Affairs, UCO Bank Building, Parliament Street, New Delhi by enclosing original r(ce, ipud treasury chatlan m the proforma pi LV nb( d under Public Notice No. 74-ITC(PN)/74, dated 'ji-5-iQ74 as amended by Public Noticr No 103- ITCfPN)/7fi, dated 13-10-1976 The information in regard to Letter of Authority No., amount of foreign currency for which rupee deposit is made, date of payment to the Belgian supplier, amount of interest and period for which it is calculated should invariably be indicated m the challan form.

Section VI—Miscellaneous

VI(i) The importer should furnish a quarterly report, aa in Anncxure IV showmjr thr utilisa- tion status of the licence to the Ministry of Finance, Department oflEconomic Affairs, (W E. Ill Section).

VI (a) It should be understood that the Government of India will not undrrtake any respon- sibility for dispute, if any, that may arise between the licensee and the mpphrr The. conditions to be fulfilled by the supplier before payment could be effected to him must be clrarly spelt out to th" supplier by the importer and a provision dealing with settlement of disputes may be included in the contract itself.

VI (3) Approved contracts should not be canrrllrd wishout prior concurrence of the Ministry of Finance, Department of Economic Affairs, (WE. I ll Section).

ANNEXURE I

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(x) Date upto whirh thr Letter of Authority to the National Bank of Belgium could be valid (KI) Special instructions, if any,. . . . ..

ANNEXDKE II

No F. 3( )-\VElII/

GOVERNMENT OE INDIA

Bharat Sarkar MINISTRY OF FINANCE (VITTA MANTRALAYA)

Deptt. of Economic Affair* (Arthlk Karya Vibbagi

New Delhi, the

To

The National Bank of Belgium, Brussels (Belgium).

Agreement between the Governments of India and Belgium dated-—— — —for the Credit of-

Belgian Francs

LETTER OF AUTHORITY NO.

Sir,

In accordance with the terms and conditions of the above Credit Agreement, we hereby request •you irrevocably to pay an amount of BP •— —(Belgian Francj • •

, , M , ,^ ^_^, . . ^_ ^ _ _^ \ to M/s — • — — _ _ — ._ _ against the delivery of the following documents •—

rov=rmg the value of tliL contract (ropy attached), dated— with M/s —-—•—•—-— —

i After piym*nt, the original set of the above documents mav kindly be forwarded direct to the

S The a-munt paid mav please be d'.bited to our Account opened m the frame of the above mentioned Credit Agreement and necessary dfbit advice ("in duplicate) forwarded to the Ministry of Finance, Department of Economic Affairs, Economic Aid Accounts Branch, New Delhi duly in- dicating this letter of Authority number -

4 This authorisation will remain valid uptn—• •—*

Yours faithfully,

Copy to the ——— • — •

They should ensure that the rupee equivalent calculated at the composite rate prescubed Public Notice No 8-ITC(PN)/76, dated 17-1-1976 and such other Public Notices that maybe issued from time to time together with interest thereon (as prescribed in Public Notice No 46-ITG (PN)/76 dated 16-6-1976 and such other Public Notices that may be issued from time to time) from the date of payment to the supplier! to the date of deposit of the amount into Government Account' both days inclusive is deposited before releasing the onginal documents to the importer.

Copy also forwarded for information to.—

1, Shri • ,Embassy of India, Brussels, Belgium, along with two copies of the order. One copy of the order may please be forwarded to the Belgian authoi Hies for their Information. The relevant information to be communicated to the Belgian authorities is as follows'—

No. & date of Import Licence:] Nature of goods to be supplied:]]

a Economic Aid (Accounts) Branch (Shri • • ) along with a copy of the order, together with Bank Guarantee No.—— dated — from the

for Rj. valid upto (duly adjudicated).

3 The Royal Belgium Embassy, 7, Golf Links, New Delhi-110003

4- M/..

• —with reference to their letter No datrd • —————'We have approved the order placed by them on M/s.

(foreign suppliers) for the supply of— — —valued at BF (Belgian Franco¹)-—

inclusive of Indian Agents Commission to the extent of BF which will be paid by them dirrct to the Indian Agents m Rupees. The order has been approved for being financed under the Belgian Government Credit.

5. Guard file

STATEMENT SHOWING QUARTERLY REPORT ON UTILISATION UNDER

BELGIAN CREDIT

1. Name of Importer 3. 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 quartri B F. g. Total amount utilised B F.

10. Total Amount deposited 'into Government Accounts, Rs. 11. Payment expected to be made during the subsequent quarters [givefigures—Quarter wiir]. 1 a Surrenders, if any.

CONDITIONS FOR LICENSING PRIVATE SECTOR IMPORTS UNDER THE BEL- GIAN GOVERNMENT CREDIT FOR 1976-77

I(i) The Belgian Government Credit extended in 10,76 by the Government of Belgiumi ran he u"ed for financing import from Belgium of capital goods, components, raw materials, and apare parts The loan can be also used to pay foi Belgian services required for the implementa- tion of the development projects in India

1(2) Only goods and services of Belgian origin are eligible foi being financed under this Credit.

gection II—Isaac of Import Licence*

II(i) The import licence will be issued on C I F. basis with an initial validity of 13 months. For txtension of the validitv 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. I ll Section) m the matter.

II (2) Firm order on CIFfC&P basis must be placed on the suppliers in Belgium and sent to the Department of Economic Affau-s (W.E. I ll Section) within 4 months from the date of issue of the import licence. If firm orders cannot be finalised within the tune hunt of 4 months, the Licensee should submit to the Chief Controller of Imports and Exports or other licensing authorities, as tho ca>e may te, a proposal seeking an extension in the ordering period, furnishing justification and explanation as to why ordering could not be completted within tic initial validity period. Such requests fur extension m the ordering period will be considered on the merits of each case by the licensing authorities who may grant rxtensirn upto a further pent d of 4 months If, however, extrnainn is sought beyond 8 months firm the date of issue of import licence, such proposal should invariably be referred by the licensing authorities to the Department of Economic Affairs, (W.E III Section), Ministry of Finance.

Il('j) The licence will bcai the lupericnptioii, Xlth Belgian Government Credit 1976 and indicate the Fublir Notice number under which these licensing conditions aie issued. The licence code for the first and second suffix will he " S" /"EN" This 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 of rupee deposits.

J-^J

11(4) A" loon at the importer receive* the import licence, he "hould "end a report to that effect to the Ministry of Finance, Department of Economic Affturi, (W.E.III Soct loh) along with the following Information :—

(1) No. and Date of Import Licence; (ii) Value;

(iii) Exchange rate, if any, indicated on import licence ; (IV) Date by which copies of contract are expected to be furnished to Department of Eco-

nomic Affairs.

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

•ctfon m—FlaallBatioii of Contract

III(l) Only one contract should be entered into against the import licence. In excep- tional cases, more than one contract will be permitted to be entered into, for which prior approv- of the Department of Economic Affairs, Ministry of Finance should be obtained soon nfter the date of issue of the import licence.

Ill(2) The term "Firm Orders" referred to in Section II(a) means purchase order placed by the Indian licensee on the Belgian Supplier duly supported by order confirmation by the latter or purchase contract duly signed by both the Indian importer and the Belgian supplier. Orders on Indian Agents of Belgian suppliers and/or order confirmation of such Indian Agents are not ac- ceptable.

111(3) T nc CIF/C&F value of the contract should be expressed in Belgian Francs.

111(4) The contract must provide for payment on cash basis i.e. on presentation of shipp- ng documents. No credit facility of any kind will be permitted to be availed of by the Ind-*"- im- porter from the Belgian Suppliers.

111(5) The contract of supply between the Indian Importer and the Belgian Supplier should provide; for the iropoit being financed out of the Xlth Belgian Credit in accordance with the pro- cedures set forth in these Licensing Conditions, and should also be made subject to the approval by the Government of India. Importers ihould take special care to inform the Suppliers about this condition and also incorporate a clause to this effect m the Supply Contract.

111(6) The amount of Indian Agent's Commission included in the value of the contract ihould b<_ specifically mdicafd. Anv payment on this account, should be made in Indian rupee! to the Agent in India. No remittance of foreign exchange will be permitted for this purpose. Such payments, however, will form part of the hctnte value and will, therefore, be charged to the licence.

111(7) The purchase ordci and the supplier's order confirmation should be in English only,

111(8) For any customary performance guaranter, where required, the suppliers should be asked to furnish a bank guai antee/warranty.

Section IV—Approval of Contract

IV(t) Immediately after the contract is concluded, the importer should furnish 6 photo- itat or certified copies of the contract 'supply orders accompanied by a photostat copy of the Import Licence to the Ministiv of Finance, Department of Economic Affairs (W.E III Section) In addi- tion, the importer is also required to furnish the information as per details in Annex I.

IV(a) The importer should furnish a bank guarantee from an approved scheduled Bank in the form prescribed in (Annex II) duly adjudicated by the Collector of Stamps. The Bank Guarantee should be for the amount of contract for which letter of authority is sought plus inter- est and other charges. The rate of conversion shall be at the exchange rate notified by the De- partment of Revenue 03 prevailing on the date of issue of import licence. This rate is meant only or the purpose of arriving of the value of the Bank Guarantee to be furnished by the Licensee. For he purpose of making payments into Government account towards the cost of imports, the rupee jquivalent will have to be worked out in the manner indicated in Section V(6) below.

IV (3) If the contract documents, the request for issue of letter 5f authorisation and the import licenco are found to be in order, the Ministry of Finance, Department of Economic Affaiw will approve the contract and issue the Letter of Authority in the form at Annex II.

Section V — Payment to the Suppliers

V(i) Payment to the mppliers will be made on the strength of Letter of Authority issued by this Ministry as mentioned at IV(3) above against presentation of shipping documents.

V(a) The validity of the Letter of Authority will be determined keeping in view the deli- very schedule indicated in the contract. In no case will the Letter of Authoritybe made valid be- yond the validity of the import licence.

V(3) Since the payment* to the suppliers under the credit are generally made by the Na- tional Bank of Belgium against the production of shipping documents, the grace period facility will not normally be applicable to imports financed under this credit.

V(4) In rase the shipment/payments to the suppliers are not completed within the validity period of the Letter of Authority, the Importer should approarh the Ministry of Finance, Depart- ment of Economic Affairs (W E, III Section) for suitable extension of the Letter of Authority wej] 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 validity of the original Import Licence together with a ktter from the Bankers extending the Validity of the relevant Bank Guarantee.

V(<5) If the request for extension in the period of validity of the Letter of Authority 11 no rceived within a period of six months from the validity date of the Letter of Authority the un-uti- Hicd 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 ducuments will be invariably forwarded by the National Bank of Belgium to the concerned importer's bank in India who should release these nego- tiable set of documents to the importer concerned only after ensuring that the importer has deposited i

(l) the rupee equivalent of the payments to the suppliers in Belgian Francs at the pre- vailing composite rate of exchange to be calculated in the manner as prescribed in Chief Controller of Imports and Exports' Public Notice No- R-ITG(PN)/76, dated 17-1-1976 and as may be notified by the Government from time to time through Public Notices of the C C I. & E. or through Exchange Control Circulars of the Reserve Bank of Indiai

(u) interest calculated at the rate of 9% per annum for the first 30 days and at 15% per annum for the period m excess 0/30 days in terms of Pubhr Notice No. 46-ITC(PN)/ 76 dated 16-6-1976 on the amount required to be deposited mde item (i) above, reckoned from the date of actual payment to the supplier by the National Bank of Belgium to the date of actual deposit of the rupee equivalent by the importer m the State Bank of India, Tis Hazari, Delhi or Reserve Bank of India, New Delhi (both days inclusive).

V(7) It shall be the responsibility of the Indian Bank concerned, to ensure that the amount due are correctly deposited into Government Account before the import documents are handed over to the importers. The licensee should also ensure that the amounts due are correctly deposit- ed into Government account before taking delivery of the documents from their bankets.

V(8) It will be obligatory for the importers to make the requisite rupee deposits Ihrough the authorized dealers only and also to get the Exchange Control Copy of the Licence endorsed by them as required in Public Notice No. iO4-ITC(PN)/68 dated the 30th August, 1968, The re- quisite 'S' form will be sent by the concerned bank to the Reserve Bank of India, Bombay.

V(q) The moneys specified in Section V(6) above arc to be deposited in cash either at the Reserve Bank of India, New Delhi or at the State Bank of India, Tis Hazari, Delhi or if this is not feasible the amounts may be remitted 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 drawn on and made payable to the State Bank of India, Tis Hazari Branch, Delhi-6 (drawee and Payee) foi credit to Government account under the head of account "K-Deposits and Advances-Deposits not bearing interest-843 civil Deposits-Deposits for purchases, etc, abroad-Purchases under Xlth Belgian Credit 1976-77" as contemplated in Public Notices No. 74~ITC(PN)/74 dated 31-5-1974 and No 103- ITC (PN)/76 dated 13-10-76. It will be ensured that the rupee deposits are invari.ibl\ made within 10 days of the receipt of the negotiable set of shipping documents from the National Bank of Belgium by the importer s banks in India.

V(io) The advice of rupee deposits referred to above, should be sent to the Controller of Aid Accounts and Audit Ministry of Finance, Department of Economic Affairs, UCO Bank Buil- ding, Parliament Street, New Delhi by enclosing original rictipted traasury challan in the proforma pres- cribed under Public Notice No. 74-ITC (PN) /74 dated 31-5-1974 as amended by IO^-ITC(PN) /76 dated 12-10-76. The information in regard to Letter of Authority No , amount of foreign cur- rency for which rupee deposit is made, date of payment to the Belgian supplier, amount of interest and period for which it is calculated should invariably be indicated in the challan form.

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^Section VI—'Miscellaneous

Vlfi) Thr importer should furnish a Quarterly report, as in Annex. IV showing the uti- lisation status of the hcrncr to the Ministry of Finance, Department of Economic Affairs, (W E. Ill Section).

VT(a) It should be understood that the Government of India will not undertake any responsibility f'jr dispute, if any, that mav arise brtwern the licensee and the supplier. The conditions to br fulfilled by the supplier brfore payment could h~ effected to him must be clearly Bpelt out to the supplier bv the importer and a provision dealing with settlement of disputes may be included in the contract itself.

VI(y) Approved contracts should not be cancelled without prior concurrence of the Minis- try of Finance, Department of Eronomic Affairs (W,E III Section),

VI(4) The licensee shall promptly om^ly with any directions, intrusions, or niders uiii'd by the Government of India from tim" to t m- regirdinj and and all matterj arum? from or per- taining to import htrnce aid for m^etinc; all obligations u i l - r- B l^ian Gwernm-nt Credit.

VI(j) Anv breach or violation of the conditions set forth in the above clauses will result in ^appropriate action under the imports and Exports (Control) Act.

VI(6) After the imports unler a li-*Te i-e r>yn\etri i ll thr importer's bankers have drpnsir-J into Gjvernm-nt V"onnt all the runee amounts due, details of the imports effected and the runee deposits midr sh viM b^ furniihrd to the Controller of Aid Accounts and Audit, Ministry of Finance, D.-partm-tH of Economic Affairs, UCO Bank Building, Parliament Street, New Delhi Iioooi in the proforma prescribed in Annex V to enable the Ministry of Finance to verify and arrange for release of the bank guarantee furnished by the importers wherever necessary.

ANNBKUHE I

(i) Details of the Import Licence:—

(a) Number

(b) Date of issue

((,) Value

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

(li) Name and Address of the Importer

(iu) Name and Address of the Belgian Suppliers

(iv) Value of the Contract/Order in Belgian Franc*

(v) Short description of the goods to be imported————.—.—. .—

^vi) Time for delivery (A schedule indicating probable dates of shipment and amounts of payment* to the suppliers may be given). . .. ....

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

(viii) Indian Agents' Commission, if any, and whether included in the contract (exact amount to bo indicated).

(The Indian Agents Commission will be payable by the Importer in rupees and will not bo included in the value of the Letter of Authority).

(ix) Branch of any Nationalised Bank to which the original documents (negotiated)should be scnt by the National Bank of Belgium.

(x) Date upto which the Letter of Authority to the National Bank of Belgium sould bo valid, (xi) Particular* of the Bank Guarantee, indicating the period upto which it is valid,

{xii) Special instructions, if any,

ANNFXUEE II

No. F 3 ( ) -WE III/

GOVERNMENT OF INDIA (BHARAT SARKAR)

MINISTRY OF FINANCE (VTTTA MANTRALAYA)

Dcptt. of Economic Affairs (Arthlk Kmrya Vlbh"B)

New Delhi, the

To

The National Bank of Bclgiam, Brussels (Belgium).

Agrttment bitwten the Governmtnts qf India and Belgium dated -for the credit of—

Belgian Francs.

LETTER OF AUTHORITY No.

Sir,

In accordance with the terms and conditions of the above Credit Agreement, we hereby reques) you irrevocably to pay an amount of B F.— — {Belgian Francs— -

to M/s. • — — against the delivery of the following documents:—

covering the value of the contract (copy attached), dated —• with M/s.^ .

a After payment, the original act of the above documents may kindly be forwarded direct to- "hc '• ——

3. The amount paid may please be debited to our Account opened in the frame of the above- mentioned Credit Agreement and necessary debit advice (in duplicate) forwarded to the Ministry of Finance, Department of Economic Affairs, Economic Aid Accounts Branch, New Delhi duly in dicating this Letter of Authority number.

4, This authorisation will remain valid upto •

Yours faithfully,

Copy to the — • — — •— They should ewure that the rupee, equivalent calculated at the composite rate prescribed in Public Notice No. 8-ITC(PN)/y6, dated 17-1-1976 and such other Public Notices that may be issued from tune to time together with interest there on (as prescribed in Public Notice No. 46-ITC(PN) /y6 ddted 16-6-1976 and luth other Public Notices that may be issued frnm time to time) from the date of payment to the suppliers to the date of deposit of the amount into Government Account, both days inclusive, is elej-e&iti d hi foe rtkasirg the original document? to the lmporlei.

Copy also forwarded for information to¹—•

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them on M/i -———. — • them on M/i - — —— — • • — • — —— _ , (foreign suppliers) (foreign suppliers)

for the supply of——•———•———•— —•—— • —Valued at BP.—• ——• (Brltjian Franra ——.—.———- •—•—• •———-— -• •—— • •—• —— inclusive of Indian Agents Commission to the extent of BF • which will be paid by them direct to I he Indian Aijenti in Rupees The order has been approved for being financed under the Belgian Government Credit,

5. Guard file.

ANNEXUHB HI

GUARANTEE BOND

(To be furnished by'Banks under the procedure for the*import of goods under the Belgian, Government Credit, 1976-77.)

To

The President of India,

In consideration of the President of India (herein after called 'the Government' having agreed to arrange for payment in Belgian Francs for the import of ——— — by

issued on •

——(hereinafter called the 'importer') under the terms and conditions of the Belgian Government Credit 1976-77 and in purauancc of Import Licence No. 1 in favom of the Importer against the above agreement, we (Bant) at the request of the importer hereby undertake to arrange to deposit the amounts of the disbursements made by the National Bank of Belgium converted at the prevailing composite rate of exchange calculated as per Public Notices issued by the Government in the matter from time to time wtihm ten i/ays of the re- ceipt of advice of payment for credit to the Government account in the manner and against the app- ropriate Heads of Account as indicated by Government of India under the said credit together with interest on the amounts disbursed to the supplier from the date of payment to the Belgian supp- lier to the date of payment of rupee equivalent for credit to the Government Account at the rates indicated below :—

(1) Cases where deposits are made within 30 days from the date of payment to the foreign supplier—9% per annum'

(n) Cases where rupee deposits are made more than 30 days after the date of payment to .

the Suppliers :—

9% per annum (a) for the first 30 days (b) for period in excess of 30 days 15% Pcr annum

The negotiable set of import documents received from the National Bank of Belgium will be released to the importer only after the rupee deposits contemplated above have been made.

a We, the^—(Bank) also undertake to indemnify and kerp ;ndemnified the Government against any default in payment by the importer of ny sum that may be due and payable from time to timo by the Importer to the Government at such place and in such manner as the Government may from tune to time direct such sums not exceeding R i- or any part thereof for the time being due and payable by the importer. The decision of the Government as to any default in the said payment by the Importer or on hi" part and inregard to the amount payable to the Government by us —• -(Bank), ahall be final and binding on us ^(Bank)

3, We, ———(Bank) further agree that incase of increase in the value of import or in- crease 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 adjust 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 in full force and effect during the period that would be taken for the performance of the aaid agreement/ contract and that it shall continue to be enforceable till all the dues to the Government under or by virtue of this gurantee have been fully paid and its claims satisfied or discharged

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 lmc and from time to time any of the powers exerciseablc by it against the importer and either to enforce payment by the importer of any of the amounts the payment whereof 13 intended to be herby secured and the (Bank), shall not be released from its liability under the guarantee by any exercise by the Government of the liberty with reference to the matters afore-said or by reason of time being given to the Importer or any other forbearance act or omiision on the part of the Government or any indulgence by the Government, to the Importer

or by any matter or thing whatsoever which under the law relating to sunties shall but for thi$ pn£ vision, have the effect of so releasing the———(Bank), from ita such liability.

6. We, -(Bank), undertake not to revok this guarantee during its currency except with •previous consent of the Government in writing.

7. We,——(Bank), hereby undertake to make additional deposits in terms of Public Notice! No.8-ITC(PN)/76 dated 17-1-76 and auch other Public Notices that may be issued frum time to time hereafter.

8 Our liability under this guarantee is restricted to Rs (phu interest and commi- saion charges, if any, not expected to exceed one percent of the,guaranteed amount)and this guarantee shall remain ia force till the——day* of—(month), 19— —Unless claims under this guarantee are made in writing within aix months of this date and unless a auit or action to enforce these claims is commenced within another six months thereafter, 1 e. upto—• , all Government's rights under this guarantee shall be forfeited and we shall be relieved and discharged from all liability thereunder

Accepted for and on behalf of the President of India by Dated, the day of Shri—

. For (Bank).

Name & Designation Signature •

*This date shall be arrived at bv adding one month to the date by which all payments to the Suppliers are expected to be finalised.

NOTE —The Value of the stomped paper on which this guarantee is to be executed is to be adjudicated by the Collector of Stamps under Section 31 of the Indian Stamps Act.

ANNEXURE IV

STATEMENT SHOWING QUARTERLY REPORT ON UTILISATION UNDER XITH

BELGIAN CREDIT

1. Name of Importer,

a. No. and date of Import Licence. 3. Value of Import Licence. 4. Letter of Authority No. and date. 5. Amount of Letter of Authority. 16. Date of validity of Letter of Authority.

7. Value of orders placed. 8. Amount utilised during the quarter BF 9. Total amount utihsed BF 10. Total Amount deposited into Government RB.

Accounts.

11. Payment expected to be made during the

subsequent quarters (givo—'figures-quarter wise).

1 a Surrenders, if any.

ANNBXURE V

PROFORMA

1. Namo and full address of the Importer/Licensee on whose behalf the bank guarantee wai furnished.

3, The Import 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 Minii- ,try of Finance

(a) Number and date of the Letter of Authority. (b) Amount of the Letter of Authority (in B.F.)

w

5 Particulars of Imports effected and rupee deposits made.

(a) Name of suppher(s) (b) Amount in (B F ) actually paid to the supplier(s) mentioned at (a) above (r) Date of payment to the supplier by the Belgian National Bank. (d) Amount of rupee deposit .—

(1) Rupee equivalent of BF amount paid to thr supplier (5) i BF (n) Interest paid (in) Period for which the interest has been calculated from to (iv) Total depoait made (v) Date and place of deposit.

(vi) Number and Date of the Treasury Challan (to be enclostdj. If the Treasury Challan has already been sent, reference to the letter number and date with which (t was lent may be quoted.

(vu) 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 (in B F ) against each Letter of Authority :— y. A certificate that the balance indicated in 6 above, has not been utilised and no shipment" has been made thereof, and the same may be treated as lapsed.

(Authorised signatures)

K. V SESHADRI

I.Chief Controller of imports and Exports.

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U5S

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WONTED BY THE GENERAL MANAGFH, GOVERNMENT OF INDIA PRESS, MINTO HOAB,

MEW DKLHI AND PTTBLISHED BY THE CONTROLLER OF PUBLICATIOMS, DELHI, 1 9 77