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REGISTERED No. D. (D.)-72

The Gazette of India

EXTRAORDINARY

PART 1-Section 1

PUBLISHED BY AUTHORITY

No. 220] NEW DELHI, SATURDAY, NOVEMBER 18, 1978/EARTIKA 27, 1900

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

(1129)

845 GI/78—1

MINISTRY OF COMMERCE, CIVIL SUPPLIES AMD CO-OPERATION

Grant, 1978, given in Appendix to this Public Notice are notified for information.

(Department of Commerce)

Appendix to Public Notice No. 87-ITC (PN)/78 dated 18-11-78

IMPORT TRADE CONTROL New Delhi, the 18th November. 1978 Public Notice No. 87-ITC(PN)/78

Licensing conditions for Import from the United Kingdom under the TK/Indla Maintenance grant, 1978

GENRAL CONDITIONS

Subject : Schedule of conditions relating to the issue of licences for imports under the UK/India Mainten- ance Grant, 1978.

1. Each Import licence will bear superscription "UK /India Maintenance Grant 1978". In addition, each Import licence* will also bear the Licence Code "R/MG", File No. IPC/39/2/76.—The terms and conditions gover- ning the Issue of licences under the UK/India Maintenance

2. The Import licence will be valid for imports only from the U. K. (which expression in this context will include the Channel Islands and the Isle of Man) of goods or materials wholly or mainly produced or manufactured in trie 1J, K,

3. Minimum value of Import Licence.

The minimum value for which an import licence can issue for imports of spares, components and/or raw materials, etc. under tbe UK/India Maintenance Grant 1978 is Rs. 10,000 (Rupees Ten Thousand only). This limit will, however, not apply to SSI Units, in which case the import licence for a value not less than Rs. 1,000- (Rupees one thousand only) can be issued by the licensing authority.

4. Validity of Import Licence.

The import licence will normally be valid for a period of

Twelve (12) months from the date of its issue.

5. Intimation of Import Licence particulars.

Within a fortnight of receipt of the import licence the importers should intimate to the Department of Economic Affairs (Section Officer, WE II Section), New Delhi, the details of import licence viz, complete number, date, its value and the Supcrcription thereof together with a photostat copy of the import licence. A copy of the intimation toge- ther with a photostat copy of the import licence should also be endorsed to the Controller of Aid Accounts &. Audit (CAA&A), Ministry of Finance (Department of Economic Affairs), UCO Bank Building, Sansad Marg (Parliament Street), New D;lhi Anv charges in the value/list of goods in the import licence should likewise be communicated alona- with photostat copy of the import licence to Section Officer, WE TT Section (Department of Economic Affairs) and Control- ler of Aid Accounts & Audit, Ministry of Finance (Depart- ment of Economic Affairs), New Delhi.

PLACEMENT OF ORDERS

6. (a) Ordering Period—Finn orders on C&P or CIF (FOB/FAS if so desired by Government Department, Public Sector Undertakings) must be placed on the U, K. suppliers within Eight (8) months from the date of issue of the im- port licence. It may be clarified here that "Firm Orders" would mean not only the placement of orders by the Indian importers but also confirmation by U. K, suppliers in writing within tbe specified period of eight months. Tn other words ordering would not only mean placement of orders on the part of Indian importers but also acceptance or confirmation on the part of LT. K. suppliers,

(b) Extension In Ordering Period—Ira cases where firm orders could not be placed within eight months for valid reasons, the licensee should approach the Import Licence Is- suing Authority, immediately, giving the reasons for the delay in placing orders and indicating the date by which orders would be placed, for getting the ordering period [as prescribed in para 6(a) above] suitably extended, Such request will be considered on merits by the Licensing Authorities who may grant extension upto a further maximum period of Four months. If, however, extension is sought beyond Twelve (12) months from the date of issue of the Import licence, such proposals will Invariably be referred by the Licensing Authorities fo the Department of Economic Affairs (WE II Section), Ministry of Finance, North Block, New Delhi.

(c) The term "Firm Orders" used in these licensing condi- tions would connote placement of orders for the full value of the licence within the validity period for ordering and NOT for part of licence value. In case an importer has not been able to place orders for the full value of the licence during the initial or extended validity vide para 6(b) above, then the licence will be deemed to be available only to the

• extent to which firm orders were placed within the validity period for placement of orders.

(d) The authorised dealer in foreign exchange will not allow any remittance or facilities for establishment of letter of credit unless satisfactory documentry evidence is produced by the licencee, indicating the placement of firm orders within the initial eight months or the extended period specifically al- lowed by the licensing authority [refer note below para 7 (b)].

UKIGIN OF GOODS

7. Responsibility of the Importers to ensure U. K. con- tents, (a) Import licences under the UK/India Maintenance Grant 1978 will normally be valid only for goods and/or materials procured and produced or manufactured in the United Kingdom. The Indian importer will be well advised in his own interest to ascertain from the U. K. suppliers, before- hand, whether the proposed imports contain any non-UK element, and if so, the percentage thereof. Under no circums- tances should he enter into a firm commitment or contract with a U. K, supplier without specifically ascertaining this point.

(b) When on such enquiry It is revealed that the goods proposed to be imported have non-UK element, the matter must be brought to the notice of the Ministry of Finance. Department of Economic Affairs (WE IT Section). New Delhi tor confirmation whether the importer should proceed with the finalisation of his order/contract with the prospective UK supplier, In this connection it may be mentioned that In exceptional cases non-UK element up!o a limit of 20 per cent of the FOB value of the goods in a single conrtact may be agreed to be financed under the UK /India Maintenance Grant 1978, provided the non-UK content forms an integral part of the finished products ; and the non-UK origin material cannot be used independently of the finished products, propos- ed to be imported. For this purpose the Indian Importer should apply for a specific approval enclosing a copy of tlie Contract Certificate, duly signed by the UK siiDpllers, in the prescrib- ed form [Annexure IT or Annexure III (Appendix C or Appendix C (Chemicals) us is appropriate] to the Department of Economic Affairs (WE II Section), Ministry of Finance, North Block, New Delhi,

Note ; The importers while approaching the authorised Bank for opening a letter of credit are required to make avai- lable (prescribed number of copies) contract and the Contract Certificate, duly signed by the UK suppliers, in addition to other documents that may be needed by that Bank:

PAYMENTS

8. Payments to the U. K. supplier*.

. (a) Payments to the U. K. suppliers, which are required to be'made in Pound Sterling, can be arranged through nor- mal banking channels, by making remittances.

(b) Individual payments must be arranged upon shipment

of goods.

(c) All payments must be completed within TWO months of the expiry of import licence or within the period prescribed in the Import Control Policy announced from time to time, whichever is less.

(d) Where the shipment has already taken place within the validity of the import licence but payments could not be completed within the specified period, the importers ara re- quired to apply to the Controller of Aid Accounts & Audit, Ministry of Finance, (Department of Economic Affairs), UCO Rank Building, Sansad Marg. (Parliament Street), New Delhi, for grant of permission to the remittance of payments to the suppliers In U, K. stating tbe reasons for not making the payment within the prescribed period, WM" doing so the imnorters should give the name of their Bnnkers through whom tbe remittance is to be made and also furnish a copv eacn of the Invoice. Bill of Lading and the Contract Certi- ficate, dnlv signed by Ihe U.K. mvnnUerN in the Prescribed form [Annexure IT or Annexure Til (Appendix C or Ap- pendix C (Chemicals) as is appropriate]

(c) Payments towards Indian Agents' Commission

All payments towards the Indian Anents' Commission should be made in Riroees in India, Such pavments will, however, form nflrt of the licence value and will, therefore, be ihnrged to the licence.

REIMBURSEMENT

9. For obtaining reimbursement under the UK/India Maintenance Grant 1978, Government of India have to fur- nish to the U. K. Authorities :

(a) a copy of a certificate from the Contract concern- ed in the United Kingdom in the form set out in Appendix C or Appendix C (Cheintcali) (Annexure It or Annexure HI—whichever is appropriate), and

(i) In those cases where an Appendix C Certificate (Annexure TT) has been provided, a payment Certi- ficate in the forth set out in Appendix B (Annex- ure IJ and the invoices referred to therein for retention by the Government of the United Kingdom; or

(ii) In those Cises where an Appendix C (Chemicals) Certificate (Annexure III) has been provided fhe appropriate invoices only ;

(b) Such other evidence as the Government of the United Kingdom may from time to time require of the details of the payment for which reimbursement is required.

DOCUMENTATION

10. The importer is responsible to seo that th; UK supplier completes and submits the documents detailed below, at the time of claiming payment for the goods supplied :—

(a) The original invoice with sufficient number of photo copies or copies by any other process. (The invoice should show the name and address of the importer, import licence No. and date, quantity and detailed description of each item supplied, sales price for each item reflecting all trade discounts, the basis of delivery (C&F or CIF) and the sterling cost of any incidental services including delivery services or marine or transportation insurance).

(b) Sufficient number of copies of the Payment Certifi- cate in the form given in Annexure T (Appendix B) not required in respect of contracts for which Contract Certificate (Chemicals) in the form civen In Annexure [II [Appendix C (Chemicals)] has been provided. For this purpose a specimen blank form of the Payment Certificate in the prescribed form should be attached to the letter of credit for completion by the supplier at the time of obtaining payment,

(c) Adequate number of copies or photostat copies of the Contract Certificate prescribed in Annexure )I or Annexurt ITT [Appendix C or Appendix C (Chemicals)}.

INDTAN BANK'S RESPONSIBILITY TO ENABLE THE GOVERNMENT OF INDIA TO OBTAIN REIMBURSE- MENT UNDER THE U. K, GRANT

11. While opening Letter of Credit, the authorised Ex- change Bank in India will, on behalf of the importer, take c"re to incorporate necessary conditions in the Letter of Credit to ensure that the above requirements of documentation ar" noted and complied with by the U.K. Suppliers.

12, Indian Bank, after remitting sterling payments, should within the next SEVEN (7) days, send the necessary docu- ments to the Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Build- ing, Sansad Mars, parliament Street), New Delhi, to enable the Government of India to obtain the necessary reimbursement under the U. K. Grant. The documents to be furnished are ;

(a) Contract Certificate In the form at Annexure Ii or Annexure ITT [Appendix C or Appendix C (Chemi- cals)—as is appropriatel, duly signed by the U.K. supplier.

(b) Payment Certificate in the form given In Annexure I

(Appendix B), duly signed bv the U K. smnHer.

845 GI/78—2

(c) A copy of invoice, containing all details as mention-

ed in para 10(a) above.

13. These arrangements do not absolve the licensee of his responsibility to ensure that all the documents, as indicated above, are forwarded from time to_ time by Ihe bank, duly completed In all respects, to the Ministry of Finance for ob- taining necessary reimbursement under the V- K. Grant.

REPORTS ON THE UTILISATION OF THE IMPORT LICENCES

14. A quarterly report, as in Anncxure IV, showlnfi trtt utilisation status of the licence, should be furnished to the Controller of Aid Accounts _& Audit, Ministry of Finance, Department of F.conomic Affairs, UCO Bank Building, Sunsad Marg, (Parliament Strccl), New Delhi, until the licence \" fully utilised, wiifi a copy to Section Officer, WE II Section, Ministry of Finance. Department of Economic Affairs, New Delhi so as to '-each within TWO WREKS of the expiry of the quarter.

MISCELLANEOUS

15. Notifying Supplies of Special Conditions:

The licensee should apprise the foreign supplier of WIT special provisions in the import licence which may affect the supplier¹! in cirryinj; out the transactions.

16. Refunds from U.K. Suppliers:

If any refunds are received by the licensee from the sup- plier, the shipper or the insurer, a full report showinR tho amounts received, tc gcthher with other relevant particulars should be sent to the Ministry of Finance at th? address indicated in para 12 above, as and when such refunds are receivod. The report regarding refunds should be as in the prcformw in Annexur* V.

17. Disputes :

It should be vinderslood that the Government o[ India will not undertake any responsibility for disputes, if any, which may arise between the licensee and the gn.ipHcrs.

18. Compliance with Future Instructions :

The licensee shall promptly comply wifh any directions, instructions or orders issued by tho Government regarding any and all matters arising from or pertaining to the import licence and for meeting all obligations under the credit aeree- ment.

19. Breach or Violation :

Any_ broach or violation of the above conditions will result in appropriate action under the Import and Export (Control) Act,

* * + • •

LIST OF ANNEXURE!)

ANNEXURE I —Payment Certificate.

ANNEXURE TI —Contract Certificate.

ANNEXURE in —Contract Certificate for

Chemicals and Allied

Products only.

ANNEXURE TV —Form of Quarterly Utilisation Report.

ANNEXURE V —Report on refunds

received.

ANNf-XURE 1

APPENDIX B

THE UNITliD KINGDOM/INDIA MAINTENANCE GRANT 1978

PAYMENT CERTIFICATE

1 hereby certify that :

(i) the payments referred to in the invoices listed below, which or copies of which accompany this payment certificate, fall duo and are due to be made in respect of Contract No dated between the contractor name below (Purchaser) and are in accordance with the particulars of this contract notified in the con- and tract certifcite signed on behalf of the said contractor on

Contractors' Date Amount Short description of goods, works and/or Invoice No.

£

services

(ii) The amounts specified in paragraph (i) do not include any additional foreign content to that declared in paragraphs 6, 7, or 8 of the Contract Certificate.

(iii) I have the authority to sign this certificate on behalf of the Contractor named below.

Signed Position held For and on behalf of Name and Address of Contractor Date

Note : For the purpose of this dojlaration the United Kingdom includes the Channel Islands and the Isle of Man.

ANNEXURE II

APPENDIX C

THE UNITED KINGDOM/INDIA MAINTENANCE GRANT 1978

CONTRACT CERTIFICATE

(For Chemicals and Allied Products use alternative 'Certificate' Overleaf)

PARTICULARS OF CONTRACT

2. Contract No

1. Date of Contract 3. Import Licence No Dale

4. Description of goods or services to be supplied to the purchaser "(Including international tariff/trade code number)",

If a number of it „ ms arc to be supplied, a detailed list should be appended to this Certificate.

5. Total contracts price payable by purchaser (State CIF, C&F or FOB) £

,

IF GOODS ARE TO BE SUPPLIED THE FOLLOWING SECTIONS MUST BE COMPLETED

If the contractor is exporting agent only, the information requested should be obtained from manufacturer.

6. Estimated % of the FOB value of the goods not originating in the United Kingdom, but purchased by the contractor directly from abroad i.e. % of imported raw-material of components used to manufacture,

(a) % FOB value

(b) Description of items and brief specifications

7. If any raw-material or components used originated from abroad, e.g. copper asbestos, cotton, wood pulp, etc. but have been purchased in the United Kingdom by the contractor for this contract, specify :— (a) % FOB value

(b) Description of items and brief specifications

IF SERVICES ARE TO BE SUPPLIED THE FOLLOWING SECTION SHOULD ALSO BE COMPLETED 8. State the estimated value of any work to be done or services performed in the purchaser's country by :—

(a) Your firm (site engineer's charges, etc (b) Local contractor

0. State reasons for use of foreign items mentioned in paragraphs 6, 7 or 8 above e.g. no UK equivalent available, integral part of equip- ment etc

10. Qualifying remarks as necessary in respect of paragraphs 6, 7 or 8 above.

J1. I hereby declare that I am employed in the United Kingdom by the Contractor named below and have the authority to sign this ce rt - ficate. I hereby undertake that in performance of the contract no goods or services which are not of United Kingdom origin wT 1 be supplied by the Contractor other than those specified in paragraphs 6, 7, 8 and 9 above.

Signed Position held Name and Address of Contractor

Dtte :

NOTB :—For the purpose of this declaration the United Kingdom includes the Channel Islands and the Isle of Man.

FOR OFFICIAL USE ONLY Name or number of Project

PAYMENTS

Amount Date of Acceptance Date Amount PA No. Initials Committed Entry

Date Initials

ANNEXURE III

APPENDIX C (CHEMICALS)

THE UNITED KINGDOM/INDIA MAINTENANCE GRANT 1978

CONTRACT CERTIFICATE FOR CHEMICAL AND ALLIED PRODUCTS ONLY

1. Date of Contract

Contract No

Import Licence No

Date

2. Description of Product(s) to be Price U.K. Tariff Classification Is the product of UK Origin ;

supplied to Purchaser

(Note A)

(Note B) State 'YES' or 'NO'.

3. Total (Estimated) Contract Price payable by Purchaser in Sterling £

4. (Declaration) I hereby declare that I am employed in the United Kingdom by the Contractor named below and have the Authority to sign this certificate, and that the above information is correct.

Signed Position held Name and Address of Contractor

Date :

NOTES

A. This form is only to be used for chemical and allied products, most of which are covered by the appropriate sub-heading of Chap- ters 15. 25, 28-35, 37-40 of the U.K. Tariff.

B. SEE)

(i) H,M. Customs & Excise Tariff H.M.S.O

(ii) Classification of Chemicals in Brussels Nomenclature H.M.S.O.

C. (i) A product is regarded as of'U.K.'Origin'ifmade either wholly from indigenous U.K. material OR according to tbo appro- priate EFTA qualifying process using imported materials wholly or in part.

(ii) The EFTA qualifying process are set out in Schedule 1 of the EFTA Compendium for the Use of Exporters', H.M.S.O. (iii) For the purposes of this declaration it is to be emphasised that the "alternative percentage criterion" docs not play, (iv) The words "Area Origin" where they appear in the above Schedule must be taken to mean "U.K. Origin" only.

(v) For tho purposes of this declaration, the 'Basic Materials List' (Schedule ITI of the EFTA Compendium) does not apply, (vi) Ii" a qualifying process is not listed for the material in question, advice should be sought from the Crown Agents for Oversea Governments and Administrations, N4 Department, 4 Mill bank, London SW 1.

D. For the purpose of this declaration the United Kingdom includes the Channel Islands and the Isle of Man.

ANNUXURK IV FORM OF QUARTERLY UTILISATION REPORT IN RESPECT OF LICENCE ISSUED UNDER UK/TNDTA

MAINTENANCE GRANT 1978

(To be furnished separately in respect of each licence)

FOR THE QUARTER

1st April to 30th June 1st Oct. lo 31st December 1st July to 30th Sept 1st Jan. to 31st March (A) 1, Name of the Importing Firm with Address.

2. No. and date of import licence.

3. Value of Import Licence.

R.up~^

PJ.M.IS(*J 4. Value of orders placed.

5. Value of orders yet to be placed.

6. Payments made to U.K. Suppliers (i.e.

total utilisation upto date).

7. Balance unutilised ;

(i) Payments yet to be made, (ii) Surrenders, if any.

8. Value of complete documents forwarded so far to C.A.A. & A., Ministry of Finance (Department of Economic Attain), New Delhi, in respect of payments made (as shown in item 6 above) as per details shown below :

Value of documents

•• . ——

Name of Bank by whom forwarded and No. & date of their communication under which forwarded.

R.upoca Pouads(*)

(i)

(ii)

TOTAL

(B) Quarterly Estimates of payments of the amount [as shown in item 7(0 above] with anticipated dates of payments.

N.B.—While furnishing quarterly utilisation report for the quarter ending March, estimates to be furnished on monthly basis for January, February & March.

Date :

Signature of the authorised Officer of the

Importing Firm.

(*) Pounds equivalent at the rate shown in the import licence.

A.NNF.XUKE V

REPORT SHOWING DETAILS OF REFUNDS RECEIVED FROM SUPPLIERS/SHIPPERS/INSURERS (TOWARDS SLiTTLE MENT OF CLAIMS FOR SHORT LANDING, DAMAGES, ETC.) TN RESPECT OF IMPORTS FROM UNITED KINGDOM UNDER UK/INDIA MAINTENANCE GRANT 1978.

(Only for claims settled in foreign exchange)

1. Name of Importing Firm.

2. Particulars of U.K. Credit.

3. No, & Date of Import Licence.

4. V^lue of Import Licence.

5. Amount of refunds received.

6. Nature of refund.

(Give brief details).

7. Reference to the relative documents under which payment was made initially to the U.K. suppliers (indicate name of Bank and reference to their letter No. & Date, forwarding documents to the Ministry of Finance).

8. Whether or not refunds received are to be utilised for replacement of goods, if not, confirm that amount has been actually re- ceived and encashed into rupees.

9. Remarks, if any.

Signature of the authorised Officer of tho

Importing Firm.

Date :

K.V. SESHADRI, Chie Controller of Imports & Exports

PRINTED BY THE MANA0ER, OOVT. OF INDIA PRESS, RING ROAD, NEW DELHI- 1 1 0 0M

AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, D1LHI-110054, 1978