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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 339] NEW DELHI, MONDAY, DECEMBER 5, I977/AGRAHAYANA 14, 1899

Separate paging to 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 5th December 1977

SUBJECT — Terms and Conditions applicable to import licences issued under Indo-Swedish Development

Cooperation Agreement, 1977.

No. 112-ITC (PN)/77.— The terms and conditions governing issuance of import licences under Indo-Swedish Development Co-operation Agreement, 1977 as given in Appendix to this public notice arc notified for information

APPENDIX

P R E A M B LE

Swedish Assistance under the Indo-Swedish Development Co-operation Agreement, 1977, con- sists of two segments (1) general imports; and (ii) imports from Sweden. In the case of first seg- ment, imports can be effected from anywhere in the world on the basis of competitive global tender- ing but in the case of the second segment, the imports can be effected or services can be obtained only from Sweden i.e., the goods must be manufactured in Sweden.

IMPORT LICENCE

1. The import licence will be issued on CIF basis, with an initial validity period of four months for contracting and twelve months for completion of shipments as well as payments. All shipments must be completed within a month from the expiry of the licence.

( 1479 )

2 Each import licence will bear a superscription, "Indo-Swedish Development Co-oprration Agreement, 1977 General Imports" or "Indo-Swcdish Development Co-operation Agreement, IQ77 Imports from Sweden" as the case may be. The suffixes in the licence code classification number will be "R/SW". These will also repeated in the letter from the Chief Controller of Imports and Exports forwarding the import licence

3. Within a fortnight of the receipt of the import licence, the importer should intimate to the Department of Economic Affairs (WE-I Section) the fact of receipt of the import licnece indicating the number, date and value of the import licence and likely date by which the contract documents would be furnished

tract documents, as provided in para 31 below, are furnished within the stipulated pariod of four monthi

5. Where this stipulation is not complied with within four months, the import licence will be deemed to have become invalid.

6. The import licence, may, however, be revalidated on an application by the party, alongwith the reasons for not complying with the requirement in time. The request tor revahdauon would be considered by the licensing authority on merits and the licence will be revalidated for contracting for a further period not exceeding four months Any revaluation beyond the period will require the prior approval of the Departmtnt of Economic Affairs (WE-I Section)

CONTRACTING

7. A contract will normally comprise an Agreement signed by both the parties viz the Indian importer and foreign supplier or it may compri*e the order placed hv the Indian importer and the letter of acceptance thereof in unequivocal terms by the foreign supplier. Orders on Indian Agents of the Overseas Suppliers and/or order confirmation by such Indian agents are not acceptable.

8. A contract comprising a series of correspondence between the two parties frequently amend- ing/revising the various provisions will not be generally accepted In such cases, it is necessary to prepare a final document including therein the terms agreed to by both the parties and signed as such.

9. Normally, one contract, on the basis of firm prices, has to be entered into with the foreign Buppher for the whole amount of tic Jicence. However, if for special reasons, conclusion of more than one contract becomes necessary, prior permission of the Department of Economic Affairs Bh°uld be obtained, giving reasons for doing so.

TERMS OF CONTRACT

General

10, The importers in the private Sectoi, ate required to place the contracts on C.I F. or C & F basis They should clearly indicate F O.B price, insurance charges and freight separately.

Contract must be entered only on C & F basis, by a Government agency or a public sector un- dertakings

If any importer desires to enter into a contract on f.o b basis, he should seek prior permission of the Department of Economic Affairs, (WE-I Section), Ministry of Finance, New Delhi giving reasons for doing so.

11. If any commission is to be paid to the TnHian agent of the foreign supplier, it will be shown separately from the value of the contract. The Indian agents, commission will be paid in Indian rupees but will be set off against the total value of the import licence

la. The value of the contract should be expressed in the currency in which the payment 13 to be made to the foreign supplier. The conversion of these amounts into Rupees shall be made at the rates of exchange notified by the Department of Revenue (Customs) under Section 15 of the Custom Act, 1903 and prevailing on the date of issue of the import licence.

Value Limits of Contracts

13. "I he value of each contract should not be less than for an amount equivalent to Rupees seven ty

thousand.

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'Origin of Goods ™

international competitive basis. Mould, as far at practicable, be on the

(in) The licensee should whi]r, submitting the contract documtnts r^fi-rr^ ^

below, furnish a statement of the tad, reeved £* the rcM ^ X S ng * S ^ . M&

Shipments

15. The contract should ipeJl out delivery/shipping schedules in SDecifir t r r, A •month of each such delivery/shipments, as closely as possible!

indicating the

Any subsequent deviation from the shipping schedule should be promntlv notifir^ t* t\ A* try of Finance, Department of Economic Affairs, WE-I Section, Nor^h Block, N e ^ e l hi "

Payment Terms

16. The Swedish Credit does not provide for deferred payments Full „. .1 i_ be made to the foreign suppl.er in cash against shipments ., fndXed m S Cg. p l p^

^JS ;tX^S^e

aHmenof ^ S S ^ ^ S Kf IOi°i t°hfeth; "? PT °f ^

18 O"fer payment*.—The amount left after the above payment will be payable nro-rata arrnrd inu- to the value of goods covered by each shipment, on the bas.s of the JhippingscheduTe a c c o r d l n&

19. It should specifically be insured that the ternu of payment , eg. amount payable on the -contract becoming effective, and that payable agaimt shjpraents rtc. are set out in precise terms in the contract with details showing the schedule of deliveries/payments etc.

Customary Guarantee

20. The importer may arrange and proVjde for in the agreement customary guarantee^) which may be necessary for safeguards his interest.

DETAILS OF CONTRACT DOCUMENTS REQUIRED TO BE

bUJJMir fED

a 1. Within ao days uf the conclusion of the contract, the importer should send a. letter accom- panied by the following documents to the Ministry of Finance, Department of Economic Affairs (WE-I Section), North Block, New Delhi

(.1) For certified copies of the contract and any further amendment^) duly Lx-cuted 111 Lnij- luh language and aigned by both the Indian importer and the foreign supplier .

(11) Two photostate copies oi the importer licence (Exchange Cjntrol C3py) valid for con- tracting on the date of execution of the contract/acceptance by ioreiga supplier of the order placed on him by the importer.

(111) Statement of bids mentioned in para 14 (m) above. (IV) Other particulars stipulated in Annexurc-I, in duplicate

The contract will be processed only after all th ese documents have been furnished by the imp jrter

LETTER OF AUTHORITY

aa. If the contract 13 complete, the documents etc. are in order, the import hcepce u valid for contracting and is considered eligible for financing under the Indo-Swedish Development Co-pera- tion Agreement, 1977, Ministry of Finance will issue a letter of authority as in \nnexure-ll

Method of Payments

23, (1) Payments to the foreign suppliers are arranged through normal banking channels by establishing a letter of ei edit or on collection basis.

(11) T he Indian importer will establish a letter of credit unlv after the letter nf authority refer- r ed to in the preceding paragraph has been issued bv the Ministry of Finance and such letter of credit will strictly be in accordance with surh letter of authority.

(111) The authorised dealers in foreign exchange (Indian bankers) a ill not provide fcciUhn fcr titcllvh- ing a Utter ofcredit to any Indian importer unless a letter oj authntUyin this ngaid hai been received by it direct from the Ministry of Finance and the Indmn bai k< r will prcvir'e. *i ch frnhijri <1 rllcw iriril- lanccs only in accordance with the instructions contained in such a, lettti uf authcritv.

24. It will be the responsibility of the foreign hanker wilh whom the lettei of credit hai been established, to forward the Controller of Aid Accounts & Audit, Ministry of Finance,UCO Bank Budding, Parliament Street, New Delhi, one set of non-negotiable jnvncr"/O JJ jirfr dccU- rnentu at the same time as the foreign banker forward Such sots of documents to the Indian Banker/which opened the letter of credit. It is necesaery for ihe Indian L'anktrs to include a provision to this effect in the letter of credit to be established by him. I he fact, that c ne set of ron- negotiable shippmgdocuments h"i been 10 forwarded will he noted sown hy the foreign banker! in the covering letter to the Indian banker The latter (Indian banker) will chert this point in particular before takmg further action on the documents.

25. (1) The Indian importer will, at the time of arranging pa-jrrrnis, fill m an Kc'diticr?! ccpy of FormA*, for being sent by their Indian banker direct to the Controller of Aid Accent, Is & At dlt Ministry of Finance, Department of Economic Affairs, UCO Bpnk BmldjEg, l e r l i f n nl Htret, New Delhi, under advice to the importer, as scon as the po}n rnt is rr.'r'e, Tl e letter forward- ing form A' as well as Form 'A' shall indicate the credit and si gment under which the import licence was usued

(ii) Both the Indian importer and Indian banker will ensure that all the requisite informa- tion is given correctly, fully and in specific terms against the relevant columns.

(hi) Form'A'will further bear the signature of the authorised officer of the Indian banke* and stamped with its official seal.

NoTE :—The"e arrangements do not absolve the hcencee of his responsibility to ensure that all forms "A/' are despatched promptly by his bank to the Ministry of Finance

Refund*

'jb If any refunds are received by the Indian importers from the foreign supplier or the insurer, a. full report showing the amounts received, together with relevant particulars, will re sent to- the Controller of Aid Accounts & Audit, Ministry of Finance m the form given in Anmxine-lII.

Reporting of Acual Payment*, etc. bv the Indian Importer*

27. The Indian importers will invariablv report to the Ctntrcllo of Aid Acc( nts & Audit, Ministry of Finance, Department of Economic Affairs,TJC CBank Euildirg, Parliemtnt Street New Delhi as and when actual payments against individual crntiects aie niade bv them to lhcjrvei;eas suppliers. While reporting the payments, the importer would also indicate briefly tlie j-urpces to which the equipment imported against each rnnlrti t h< 1 ern/is beirg put to Ibeie ifpertn should be sent to the Controller of Ajd Accounts & Avdn, Minjiii> ci Fmrree, Dfffrin rnt of Economic Affairs, UCO Bank Building, Parliament Street, Nrw Delhi within r rr week rf the actual payment having been made.

MISCELLANEOUS

28. The goods imported under the licence should be usrrl with due diligence srd efficiency.

For a minimum period of four years from the date of delivery of the goods imported under the lice- nce, the importer shall (1) maintain all the ltlevdnt lernids nrrrtsar\ to identify such goods and their (n) furnish or cause to be furnished to the Coven mrnt c f Irdip surh lnfoimatu n as may be requested, < oncermng the expcndituie of the proceeds nf the Ciedit and the goods and services acquired out luch proceeds, and (111) enable rcpiesentativ^ of tht Guvrnnrnt of India and the Swedi h International Development AuthonU tostuelv the use of 'uch goods and seivices if they so request

ji) The Government of India will not undertake any respoiisihihty for disputes, if anv, which may arise between the Indian importei and the foreign supphri,

7, ). The Indian importer shall promptly comply with any direction!,, instructions or orders issued by ihe Government from time to time regarding anv and all mattrrb jrmrg from or periainmg to the inport licence and for meeting all obhgaticns under the crrdit -grirnicnl with the Swednh Authorities.

•Application foim prescribed by the Reserve Bank of India for remittances-

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3i. Any break or violation of any of the condition prescribed herein will result in appropriate action under the Imports and Exports (Control) Act, J947, and orders lsiucd thereundu

ANNEXURE 1

"[In duphratr]

[ Para 41 fiv) ]

1b

The Secretary, Ministry of Finance, Department of Economic Affairs, W/E-I Section, North Block, New Delhi-1

SuBJECT.—Jndo-Swrdi\h Xiteeltlpmtnl Coaperatwn Ayrttmtnt, 1977-—Import under

"Sir,

In connection with "the import of. . , . . .. , , , ,

(short description of the gnods nnd services)

wnder the ahove credit, we furnish the following paiticulars •—

(a) Name and Address elf importer :

(b) Impe>rt Licence

(1) Number

(11) Date

(ni) Amount

dv) Vahd upto

(a) for contractirg

fb) for shipment

'(c) Name and Acltliess of the foreign sur-yln r •

(d) Date ofthe contract :

or

Dtitr of Suppliers finalletter of acceptance oi the order :

(e) Short description of the goods to h( JJHJ ertfd :

In foreign currency In equnclent Indian

Rupees (£) Value of the contract FOB Price .

Freight .

Insurance •

Total .

Date

Value of shipment in

foreign currency r(g) Fhe different dates on which the equipment will be shipped, or services performed the value of each shipment 01 service peilorir- ed, based on the delivery schedules a-s

-stipulated m the contract :

Date

Amount 111 fon ign

currency (hj 'J he date on which payments under the

conti act will fall due :

(1) in respect of advance payment

(it) Other payments :

ANNEXOHff—II

(Para 22)

GOVERNMENT OF iNnrA

To

(Indian Banker)

SUBJECT—Contract entered under Indo-Swediih DivthfnirlC'Oftnlnn j'gtuti irl, 1977— GinetaT

import?/Swedish Fmport segment

Dear Sirs,

Messrs -.

• • • . . ..

(Indian Importer)

have entered into a contract with Messrs.. . . .

. . ..

(foreign supplier)

(or the amount of . ..

. . .. (GIF/C & F) under the Indo-Swedish Develop- for the supply of ' , . ment Cooperation Agreement, 1977 against Licence No. . .. . .. dated issued thereunder for the value of Rs. . .. A copy of the contract is enclosed

2 Out of the above amount of

. . an amount of.. .

. . .. is to be paid .13 Indian Agent's commission m Indian currency- The sum to be paid to the supplier in foreign currency which will be financed out of the Swedish Credit will therefore amount to . . . . ..

a. You are authorised to open a letter ot (redit for, .

in favour of Messrs.

• • • through their bankers, viz (foreign supplier)

. . .. .. . . ..within a perimd of thirty days from the- ^ jM s r Si

(foreign banker)

date of this letter, under intimation to the Controllei of Aid Accounts & Audit, & UCO Bank Build- ing, Parliament Street, New Delhi

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4. Before opening the Letter of Crejit, it may please be ensured that the Indian Importer il in possession oi a valid import licence

5. In trrms of para 10 Section VII of Uir Exchange Control Manual, you are required, to ensure that the date of the expiry of the I etter oi Crtdit is not later than forty five (45) da-\ 3 after the final dale for shipment as staled m the relative import licence

6. The letter of credit will also provide that Messrs

(foreign bankcri)

will forward ctirectly to the Controller of Aid Accounts &• Audit, Mmistrv of Finance, Department oi Economic Affairs, UCO Bank Building, Paihamcnt Street, New Delhi, one set of non-negotiable shipping document as each payment is made.

7. You are also requested to forward to the Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, Parl]Erri(rit Street, New Delhi additional copy of the Form'A¹ showing particulars of rimittances made to the foreign supplier in terms of para J 3 of the Licensing Conditions for imports under Indo-Swedish Development Cooperation Agreement dated 26-5-1977 as soon as the payments arc made.

8 Receipt of this letter may please be acknowledged

Yours laithfully,

Under Secretary to the Government of India.

1. Copv with a copy of the contract foi warded to Reserve Bank of India, Exchange Control Department, Bombay.

2. Copv without enclosures forwarded to —

(1)

(Indian Importer)

(1.)

(foreign supplier)

( i n) . .. .

(foreign bank)

It is requested that on each pavincnt, one set of shipping and other documents (non- negntiable) alongwith payment adviec may be iorwardtd direct to the Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building Parliament Street, New Delhi (INDIA).

(IV) Controller of Aid Accounts & Audit with a copy of the contract and that of the- lmporl licence

(v) Reserve Bank of India, Exchange Control Depaitmcnt, Bombay.

Under Secretary to the Government of India.

ANNEXIJRE III

(Para 26)

REPORT SHOWING DETAILS OF REFUNDS RECEIVED FROM 1ORE1GN SUPPLIERS/SHIPPERS/INSURERS TOWARDS SET1LEMENT OF CLAIMS. FOR SHORT LANDINGS, DAMAGES, ETC IN RLSPECT OF IMPORTS

j. Name of the Indian lmpor tt r.

2 No. and date oi import licence.

3. Value of the import licence.

4. No. and date of Letter of Authority.

5 Amount of refund received.

6. Nature and refund (give brief details)

7 Reference to be relative Forma'A' under which payment was made initially to the foreign suppliers (indicate name of the Indian banker and reference to their letter No and date, forwarding form 'A' to Ministry of Finance)

8, Whether or not refunds received are to be utilised for replacement of goods, if not, con- firm that amount has bten actually receivd by inward remittance of foreign exchange and encashed into rupees

g. Any other necessary particulars

Signature of thr Autlionsed Officer of the importing firm

To

The Controller of Aid Accounts & Audit, Ministry of Finance (Department of Economic irs) UCO Bank Building, Parliament Strret, New Delhi.

K. V. SESHADRl,

Chief Controller of Imports and Exports.

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I49K

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NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI, 1977 MINTED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD,