REGISTERED No. D.(D.)-72
The Gazette of India
EXTRAORDINARY
PART I—Section 1
PUBLISHED BY AUTHORITY
No. 243] NEW D E L H I, SATURDAY, DECEMBER 23, 1978/PAUSA 2, 1900
Separate paging is given to this Part in order that it may bo filed as a separate compilation.
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1218/2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]MINISTRY OF COMMERCE, CIVIL SUPPLIES AND CO-OPERATION
(Department of Commerce)
PUBLIC NOTICE NO. 9"-ITC(PN)/78
New Delhi, the 23rd December, 1978
IMPORT TRADE CONTROL
Subject :—Licensing conditions for imports from U.K. under UK/India Mixed Project Grant, 1978.
No. 1PC/39/1/76-77 —The terms and conditions govern- ing the issuance of import licences under UK/India Mixed Project Grant, 1978, as given in the Appendix to this Public Notice, are notified for information.
K. V. SESHADRT,
Chief Controller of Imports and Exports
APPENDIX
PUBLIC NOTICE NO. 96 ITC(PN)/78
Licensing conditions for Imports from the UK under UK/
India mixed project grant 1978
I-GENERAL CONDITIONS
1. SUPERSCRIPTION AND CODE
The Import licence will bear the superscription "UJC/India Mixed Project Grant 1978". In addition, each import licence will also bear the Code "S/KK".
2. INTIMATION OF IMPORT LICENCE PARTICULARS Within a fortnight of the receipt of the import Licence, the importer should intimate to the Department of Economic Affairs (Section Officer—WE II SEC.) the details of the im- port licence viz. complete number and date; its value, and the superscription thereof, together with a photostat copy of the import licence. A copy of the intimation alongwith 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 Bant Building, Sansad Marg (Parliament Street), New Delhi.
3. VALIDITY OF THE IMPORT LICENCE
The import licence will be issued with an initial validity period of 24 (twenty-four) months. This period can be further extended if there is adequate justification to do so.
4(a) REMITTANCES
No remittance of foreign exchange will be permitted against the import licence. However, the UK Bank charges may be remitted through the normal banking channels,
4(b) INDIA AGENTS COMMISSION
Any payment towards the Indian Agent's Commission should be made only in Indian Rupees.40 the Agents in India. 5j^jL payments will, however, form part of the licence value and will, therefore, be charged to the import licence.
5(a) ORDERING PERIOD
Firm orders on CIF or C & F basis must be placed within a period of four (4) months from the date of issue of the import licence.
5(b) If firm orders cannot be placed within four months for valid reasons, thro licence should be submitted to the Licen- sing Authority immediately during the fifth month giving the reasons for the delay in placing firm orders and indicating the date by which the firm orders would be placed and seeking extension in the period for ordering, as necessary. Such requests will be. considered on merits by the licensing autho- rities who may grant extension upto a further Mavimum period of two months, If, however, extension is sought beyond 6 months from the date of issue of this import licence, such proposals will invariably be referred by tie licensing authorities to the Department of Economic Affairs (WE IJ Section) Ministry of Finance, North Block, New Delhi.
NOTE: The Firm Orders in this context mean, placement Of orders on the UK Suppliers, and the letter's con- firmation in writing Ihereof within the ordering period.
3(c) It should be noted that unless ordering is completed within four months or the extended period allowed by the licensing authority, as the case may bo, the authorised Dealers in foreign exchange will not permit the establishment of Letter of Credit, or deposit of rupee equivalent.
(See Section IV below.).
6, PAYMENTS
All payments must be completed within the expiry of the import licence. Individual payments must be arranged upon shipment of goods. No credit facility of any kind will be permitted,
II-SPECIAL POINTS TO BE INCORPORATED IN THE ORDERSi/CONTRACTS OR OTHERWISE KEPT IN VIEW
7(a) ORIGIN OF GOODS
While placing ordersi/contracts which must be placed only on the Suppliers in the U.K. (which expression in this con- nection includes the Channel Islands and the Isle of Man), the licensee must ensure by a provision in the same that the goods purchased are or will be wholly produced or manufactured in the United Kingdom, or in the case of Chemi- cals and AJlied Products are declared to be of UK origin on the form attached as Annexure IT(B).
(b) WORKS & SERVICES
When the Contract also provides for works and services In connection with the purchase of such goods it must simi- larly be ensured by a suitable provision therein that auch works and services are or will be provided by persons ordi- narily resident or carrying on business In the U.K.
c(i) NON-UK CONTENT CRITERIA
Import licences under the UK/India Mixed Project Grant 1978 will normally be valid only for goods and/or material* procured and produced or manufactured in the United King- dom.
c(ii) The- Indian Importer is advised in his own Interest to ascertain from the UK suppliers beforehand whether the proposed imports contain any non-UK element, and if so, the percentage thereof. Under no circumstances should he enter into a firm commitment or contract with a UK supplier without specifically ascertaining this point.
c(iii) When on such an enquiry it is revealed that the goods proposed to be imported have some non-UK element, the matter must be brought to the notice of the Ministry of Finance, Department of Economic Affairs, WE II Section, New Delhi, for confirmation whether the importer should proceed with the flnalisation of his order/contract with the prospective UK supplier, In this connection it may be men- tioned that in exceptional cases non-UK element upto a limit of 20 per cent of the FOB value of the goods in a single contract may be agreed to be financed under the UK/India Mixed Project 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 proposed to be Imported. For thii purpose the Indian importer should apply for a specific ap- proval enclosing a copy of the Contract Certificate, duly signed by the UK suppliers, in the prescribed form (Annexure II or Annexure n(B)—as is appropriate) to the Department of Econom'c Affairs (WE IT Section), Ministry of Finance, North Block, New Delhi.
(d) PROVISION FOR CONTRACT APPROVAL
A clause should specifically be included In the contract to the effect, that the contract is subject to and will become tiffective only on approval by the Government of India nnd the Government of the United Kingdom.
(e) DOCUMENTATION AND PAYMENT iJROCEDURii
The documentation lequiremeuts mentioned in Section 111 and-V below and ihe Payment Procedure laid down in iecuon IV below should be Kept in view and sbouid De appropiiaiei> incorporated in the contract.
III. CONTRACT ACCEPTANCE
8. (a) NOTIFICATION OF CONTRACTS AND AMEND-
MENTS
Immediately on placement of orders on the UK sup- plier, the importer should furnish copies of the contract to the Administrative Ministry and the Ministry of finance, Department of Economic Affairst NeV Delhi.
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be laid down by the Ministry of Finance, Department or Economic Affairs, New .Delhi and in that case the import licence will be issued subject to such special procedure.
13. APPLICATION FOR LETTER OF AUTHORISA-
TION
After receipt of intimation regarding Contract acceptance from CAO London (sec Section 111 above), the licensee should apply to the CAA & A, New Delhi for a Letter of Authori- saticn to any of the Authorised Bank dealing in foreign ex- change for opening a Letter of Credit in favour of the UK Suppliers with one of the correspondent Banks in the U.K. The request for the letter of authorisation should be in the form given as Annexure 111 and should be accompanied by u bank guarantee t,m the form given in Annexure IV) obtained from an authorised dealer in foreign exchange in India. The first request for Letter of Authorisation should be accom- panied by a photostat copy of the import licence,
14, (a) BANK GUARANTEE
(b) Within a fortnight of approval of contract by the Government of India hi respect of each order placed on the foreign supplier, the licensee should forward four copies of the contract or notification of contract (in the form attached as Annexure 1) accompanied by five copies of the contract certificate (in the form attached as Annexure II or Annexure II(B) as is appropriate) duly signed by the U.K. supplier, to CAA&A UCO Hank Building, Parliament Street, New Delhi-1.
NOTE: As no payments can be made unless the contract is duly approved by the U.K. Government, it Is most imperative for the licensee to ensure that copies of contract/notification of contract along with sup- plier's contract certificates are forwarded to the Ministry of Finance (C.A.A. & A) in the manner stated above at the earliest.
9. (a) CONTRACT APPROVAL
While forwarding the above documents to the Ministry of Finance, it must be ensured by the licensee that the number and dale of the import licence and the name of the U.K Grant are clearly noted In the documents,
(b) The CAA&A, Ministry of Finance, will arrange through the Chief Accounting Officer, High Commission of India London (CAO, London) to file a set of the documents with the U.K. Government for obtaining their approval and ac- ceptance to the payments under the contract to be financed under the UK Grant. As soon as possible after the decision of the UK Government is known, the U.K. suppliers as well as the licensee will be informed of the same direct by He CAO London under advice to the Ministry of Finance.
10. AMENDMENT TO CONTRACT
If, at any time, a contract (being a contract in respect of which acceptance of the UK Government has been obtained or is pending) is amended, or if liability is to be incurred thereunder to a greater or lesser amount than the amount specified in the contract certificate, the licensee shooM obtain the approval of the Government of India and thereafter promptly forward the relevant Supplementary or revised docu- ments, copies of amendments to the contracts and revised contract certificate to C.A.A. & A., New Delhi in order to enable him to notify the same to the U.K. Government and to obtain their acceptance. As soon as the acceptance of the arnendment to contract/order is received from the U.K. Government, the licensee and the Ministry of Finance will be notified by the CAO London in the same manner as for the original contract.
11. WHEN A CONTRACT IS WITH TKDIAN AGENT
If the contract is with the Indian Agent of the foreign suppliers, it should indicate the names of the UK suppliers to whom payment is to be made for the sterling portion of the contract, which alone will qualify for payment under the UK Grant. Copies of such contracts (or of contracts placed by the Indian Agents with the UK suppliers, if there are such separate contracts) should be sent as prescribed above.
IV. PAYMENT TO UK SUPPLIERS—LETTER OF CREDIT PROCEDURE
12. SPECIAL PAYMENTS PROCEDURE
The payment procedure normally applicable is laid down below. In special cases a different payment procedure may The Bank Guarantee should be for an amount not less than the rupee equivalent of the value in sterling of the proposed letter of authority.
(b) The rate of exchange to be applied for the rupee equi- valent, will be calculated at the Composite Rate of Exchange on the basis of the formula given in Public Notice No. 8- lTC(PN)/76, dt. 17-1-76 or any other Public Notice that may be notified by the Chief Controller of Imports and Ex- ports, New Delhi from time to time and by the Reserve Bank of India through the Exchange Control Circulars issued from time to time to the Authorised Dealers in Foreign exchange.
NOTE : No Bank Guarantee is required from Public Sector Projects. In such cases the Letter of Credit will be opened through any Branch of the State Bank of India (including its subsidiaries) or any Branch of any of the Nationalised Banks.
15, LETTER OF AUTHORISATION
If the application is found to be in order, the Ministry of Finance, Department of Economic Affairs, New Delhi, will issue an Authorisation for the requisite amouat to the Indian Exchange Bank concerned, with a copy to the importer and SO WE II Section incorporating inter-alia the Contract Ap- proval number of the U.K. Government, The Ministry of Finance will also advise the U.K, Bank concerned and the CAO London suitably. The advice to the UK Bank will, however, be sent to the Indian Exchange Bank concerned along with their copy of the Authorisation Letter, wbo should then transmit it to the UK Bank while opening the Letter of Credit.
16. (a) VALIDITY OF LETTER OF AUTHORISATION The Letter of Authorisation will be valid for a period of one month from the date of its issue. Therefore, the letter of Credit should be opened within a period of one month from the date of issue of the Aiithorhatiijn, under intimation to the Ministry of Finance, failing which Iho Authorisation will lapse.
(b) LETTER OF CREDIT
The letter of credit should detail the conditions to which the licence is subject; should provide for payment to the . suppliers on the submissioM^tif all the documents detailed in section V below ; should contain adequate instructions re- garding the despatch of documents after payment and should he opened subject to the conditions r.hat the correspondent Bank in the U,K. after making payments to the beneficiaries initially out of their own funds, obtain reitnlnusement therefm from the .State Bank of India London, through the CAO London. The Indian Exchange Bank's instructions regarding the opening of Letter of Credit must accord completely with the Authorisation issued by the Ministry of Finance. There should be no discrepancies in any respect.
(c) The Letfer of Credit should be clearly marked with the Grant title and with the UK Government's Contract ap- proval number.
(d) RESPONSIBILITY OF INDIAN EXCHANGE BANK
While opening litter of Credit, the authorised Exchanged Hank in India should, on behalf of the importer also, take care to incorporate necessary conditions in. the Letter of
1218/4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]Credit and ensure that the requirements of documentation detailed in para (17 (.Below) are nolcd mm complied wiih by the UK supplier.
V. DOCUMENTATIONS
17. DOCUMENTS
The importer is responsible to see 11K;L the Ui<. supplier completes ana submits ihc documents Qeuiiled below 10 the UK Bant at the time ol claiming payment fur the goods supplied :
(i) The original invoice, .with four photocopies or copies by any othei process, (Ihc invoice should show the name and address ol the importer, quantity and detailed descrip- tion of each item supplied, sales price for each item reflect- ing all trade discounts, the basis of delivery (iOB, C
(ii) One copy (or photostat) of ocean or charter Bi.l of Lading or airway Bill or parcel post receipt (The Jiiil of Lading should either indicate or be accompanied by the carrier's statement of charges in whatever currency it is paid).
(iiij Four copies of the payment certificate in the form of ANNEXURE V (not required in respect of Contracts for which a contract certificate (Chemicals) in the form given as ANNEXURE 1I(B) has been provided), for this purpose, five blank forms 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.
Each document must show the Grant title, details of import licence and if possible, the particulars of the Letter of Credit Authorisation issued by the Ministry of Finance.
18. DESPATCH OF DOCUMENTS
After the payment is made to the UK Supplier, the corres- pondent Bank in the UK will send by fast air mail the original negotiable set of documents to the Indian Exchange Bank concerned.
19. UK BANK CHARGE
The Indian Exchange Bank will remit the Bank charges to
the UK Bank and recover the same from Ihe importer.
20. REIMBURSEMENT TO UK BANK
The UK Bank will, simultaneously, claim the reimburse- ment, of the amount(s) paid by it to the UK Supplier, from CAO London and will submit for this purpose, invoices re- ceived from the Supplier and payment certificate us in ANNEXURE V, where required. The CAO London wil arrange payments to the UK Bank through State Bank of India, London.
VI. INDIAN BANKS' RESPONSIBILITY FOR RUPEE
DEPOSITS
21. RECOVERY FROM IMPORTER
Within 7 (seven) days of the receipt of the advice of pay- ment along with shipping documents from the UK corres- pondent Bank, the Indian Exchange Bank concerned slt/ti^, collect from the importer, the cost of imports in rupees at the "Composite rate of exchange" [see para 14(b) above] p'nn interest charges at the rale notified in Public Notice No. 46- rTC(PN)/76 dated 16-6-76, for the period from the date of payment to the UK Suppliers by the UK Bank to (he dale of deposit of the rupee equivalent into the Government account (both dates inclusive). The instruction in this regard contain- ed in RBI Bombay AD circular No. 22 of 18-6-77 should be strictly adhered to.
22. The amount referred to above should be deposited by the Indian Exchange Bank to the credit of the Govcrnmeni of India in the Reserve Bank of India. New Delhi or tin- State Bank of India, Tis Hazari Branch, Delhi or if this is not feasib'e, should be remitted by moans of a Demand Drnft drawn on and in favour of the Stnte Brink of India. Tis Hazari Branch, Delhi. Rupee deposit should be made in the revised form of the treasury Challan, published as anne- xure to Public Notice No. 74-ITC(PN)/74 dated 31-5-74, as amended vide Public Notice No. 103-LTC(PN)/76 dated lli-lU-76. thereafter the treasury challan evidencing the de- posit should be sent by Registered Post to the CAA&A, New liclhi indicating reference to and enclosing copies of the in- voice shipping documents and tlis Authorisation of i.hat De- partment to which the transaction relates.
The Indian Exchange Bank concerned shall also arrange to deposit in the same manner such additional amounts on ac- count of service charges as may be demanded by the Gov- ernment of India, within 7 (seven) days alter bueh demand.
The Lincensee should also fill in, in duplicate, the Form's, incorporated as Annexure II to Public Noike No. 184-ITC UJN)/68, dated 30Lh August 1968 and present the same to lh;ir bank while urraugiDfi fur iL.pee deposits in accordance with the procedure prescribed in the said Public Notice.
23. HEAD Or ACCOUNT FOR RUPEE DEPOSIT
The amounts including interest charges to be deposited to the Credit of Government of India shall be creditable under the following Head of Account :
"K—DEPOSITS AND ADVANCES—843 CIVIL DEPOSITS—DEPOSITS FOR PURCHASE ABROAD—DEPOSITS UNDER UK/INDIA MIXED lJRGJi2CT GRANT 1978".
ACCOUNT OFFICER
And the Controller of Aid Accounts and Audit, Ministry of Finance (DliA), Delhi shall be shown as tho Accounts Officer who will adjust these credits.
24. RELEASE OF BANK GUARANTEE
After the obligations in terms of the Bank Guarantee ana the Letter of Credit Authorisation issued by the Ministry of Finance are fulfil ed, the Indian Exchange Bank concerned (not the importer) can apply to the CAA&A, New Delhi in ihe form laid down as ANNEXURE VI for the release of the Bank Guarantee.
VII. REPORT ON THE UTILISATION OF THE IMPORT LICENCE
25. REPORTING
A quarterly icpoit, in the form attached as ANNEXURE VII showing tho utilisation status of the licence should be furnished on the 15th of the month following the quarter to which it relates to the Ministry of Finance, Department ot Economic Affairs, (WE II See.) New Delhi with a copy to the Controller of Aid Accounts & Audit (Department of Economic Affairs) UCO Bonk Bui ding, Sansad Marg, (Par- liament Street), New Delhi.
VIII. MISCELLANEOUS
26. REFUNDS I-ROM Uk SUPPLIERS
If any money is received by the licensee from the UK suppliers or a Guarantor (insurance company etc.) as a refund or in settlement of insurance claim or otherwise, such amounts should be refunded by the supplier to the concern- ed corresponded bank in the UK (from which the payment was initially made to the U.K. supplier) with the instructions to refund the amount immediate'y, in turn, to CAO London for crediting the Grant Account, After the Grant account is so credited, an equivalent amount in rupee* will be arranged to be refunded to the importer by the Ministry of Finance, upon receipt of a claim therefor from the hntxnter. If any refund Is received Rfter the c'osure of the Grant the same will have to be made by the supplier direct to the importer.
27. REPORTING OF REFUNDS
As and when any such refund is received, a report there- of should be made to the Ministry cf Finance with a copy to the Department of Industrial Deve'onmcnt, Foreign Ex- change Section, Udycg Bhavan, New Delhi and CAA&A.
28. NOTIFICATION SPF.CTAL CONDITIONS I>R0VI-
STONS TO SUPPLIER.
The licensee rhould reprise the Supplier of any special pro- visions in the import licence which may affect the suppliers In carrying out the transaction.
29 DISPUTES
It should be understood that the Government of India will not undertime any responsibility for disputes, if any, that may arise between the licensee and the suppliers.
30 FUTURE INSTRUCTIONS
The licensee shall promptly comply with any directions, instructions or orders issued by the Government regarding any and all matters arising from or pertaining to the import licence and for meeting a 1 obligations under the Grant Agreement.
31. BREACH OR VIOLATION
Any breach or violation of the conditions set forth in the above clauses will result in appropriate section under th" imports and Exports (Control) Act 1947 and the orders issued thereunder.
IV—LIST OF ANNEXURES
1. Annexure I Notification of Contract
2. Annexure II Contract Certificate
3. Annexure II(B) Contract Certificate (chemicals)
4. Annexure III Fonn of application for Letter at
Credit Authorisation
5. Annexure IV Form of Bank Guarantee
6. Annexure V Payment Certificate
7. Annexure VI Form of application for the release o'
Bank Guarantee
8. Annexure VII Form for reporting Orderinu and Utili-
sation of the Import Licence.
ANNEXURE I
NOTIFICATION OF CONTRACT UNITED KINGDOM/INDIA MIXED PROJECT GRANT 1978
To : The Crown Agents for Overseas Governments and Ad-
ministrations 4 Millbank, London SW 1
PROJECT
Notification of Contract No
The following are details of a contract under which it is pro- posed that payments shall be made in accordance with the terms and conditions of the above grant.
1. Name and address of United Kingdom Contractor ;
2. Date of Contract :
3. Name of Indian Purchasar :
4. Short description of goods :
and/or works or services :
5. Value of Contract :
6. Terms of Payments :
Signed on behalf of the Government of India'
Date
ANNEXURE II
UNITED KINGDOM/INDIA MIXED PROJECT GRANT 1978 CONTRACT CERTIFICATE Import Licence No
D a t e -— - ——
I. Date of Contract 2. Contract No
3. Description of goods or services to be supplied to the pur-
chaser
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(If a number of itomJ are to bs supplied, a detaled list should be appended to this certificate).
4. Total contract 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 manufactured)
5. Description of jjoods to Price UK Tiriff/TRADB
be supplied to Pur- CODE No. chaser
6. Estimated % of the FOB value of tho goods not originating in the United Kingdom, but purchased by the Contractor directly from abroad, i.e. % of imported raw material or components used in manufacture.
a. % FOB value b. Description of items and brief specifications
7. If any raw material or components used originated from abroad, eg. copper, asbestos, cotton, wood pulp, etc but have been purchased in the United Kingdom by the Contract- or for this contract, specify :—
a. % FOB valu"
b. Description of items and brief specifications
8. IF SERVICES ARE TO BE SUPPLIED THE FOLLOWING
SECTION SHOULD ALSO BE COMPLETED State the estimated value of any work to be done or services performed in tho purchaser's country by a. Your firm (site engineers, charges, etc)
b. Local contractor
9. State reasons for use of foreign items mentioned in para- graphs 6, 7 or 8 above e.g. No UK equivalent, available integral part of equipment etc
10. Qualifying remarks as necessary in respect of paragraphs
6,7, or 8 above
11. I hereby declare that I am employed in the United Kingdom by the Contractor named below and have the authority to sign this certificate. I hereby undertake that in perfor- mance of the contract no goods or services which are not of United Kingdom origin will be supplied by the Contractor other than these speclfioj^n paragraphs 6, 7, 8 and 9 above.
Signed Position held Name and Address of Cont- ractor
Date
Note : For the purpose of this declaration the United Kingdom includes the Channel Island and the Isle of Man.
1218/6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]Contractors should note that goods should not be manufac- tured until acceptance has been notified,
FOR OFFICIAL USE ONLY PAYMENTS
NAME OR NUMBER OF PROJECT ——
Date Amount No, Initials
Amount Date of Acceptance Committed Entry Date Initials
ANNEXURE II(B)
UNITED KINGDOM/INDIA MIXED PROJECT GRANT, 1978 CONTRACT CERTIFICATE FOR CHEMICALS AND ALLIED PRODUCTS ONLY
1. Date of Contract Contract No Import Licence No Date
2. Description of PRICE UK Tariff Is the Product Product (9) to Classiflc- of UK Origin, be supplied to ation No, (See Note C) 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 Cont-
ractor _...
Date
NOTES
A. This form is only to be used for chemical and allied pro- ducts which are covered by the appropriate a sub-heading of Chapters 15, 25, 26—35, and 37—40 of the UK Tariff.
B. SEE :—
i. HM Customs and Excise Tariff HMSO. ii. Classification of Chemicals in Brussels Nomenclature
HMSO
C. i. A Product is regarded as of 'UK orgin' if made either wholly from indigenous UK materials OR according to the appropriate EFTA qualifying p cess using imported materials wholly or in part.
ii. The EFTA qualifying processes.are set out in Schedule
I of the 'EFTA Compendium for the Use of Exporters', HMSO.
iii. For the purpose of this declaration it is to be emphasised
that the "alternative percentage criterion" DOES NOT APPLY.
iv. The words "Area Origin" where they appear in the
above Schedule must be taken to mean "UK Origin" only.
v. For the purposes of this declaration, the "Basic Mate- rials List" (Schedule III of the EFTA Compendium) does not apply.
vi. If a qualifying process is not listed for the material in question advice should be sought from the Crown Agents, for Oversea Governments and Administrations, 4 Millbank, London SWI.
D. For the purpose of this declaration the United Kingdom
includes tho Channel Islands and the Isle of Man.
ANNEXURE III
Form of Application for Letter of Credit Authorisation
To
The Controller of Aid Accounts & Audit., Economic Aid Accounts Section, Ministry of Finance, (Dapartmont of Economic Affairs), UCO Bank Building, Parliament Street, New Delhi.
Subject :-Import of
from U.K .
Under UK/India Mixed Project Grant 1978,
Sir,
In connection with the import of
.from U.K. against the above UK Grant we furnish the following particulars to enable you to issue us authorisation for opening a Letter of Credit through our bankers on the U.K. Bank desig- nated by you :—
(a) Particulars of Import Licence.
Full No. & Date Value (Rs.) Date upto which
valid,
(b) Sterling value of licence
(Calculated at the rate of exchange indicated in tho import licence by the licensing authorities).
(c) Progressive Sterling value of the orders already placed for which L/As have been obtained (A Statement of LA nos. & Sterling amount to be enclosed).
(d) Sterling value of tho orders placed for which authorisation is required speciflying the name and address of the UK suppHfef/s'uppliera ariS'tHe amount/s of authorisation re- quired separately against each supplier (copy of orders placed and UK suppliers acceptance thereof to bo attached).
(e) Nameof UK Correspondent Bank on whom the Letter
of Credit is to be established,
(f) Name of the Indian Bank which has furnished the bank
Guarantee and which will open the Letter of Credit.
The Bank Guarantee furnished by (Name of Bank) and which has been duly adjudicated by the Collector in accordance with the provisions of section 31 of the Stamp Act, 1899, is attached.
Yours faitlifully, (Signature of Licensee and full
address).
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ANNEXURE IV
FORM OF BANK GUARANTEE
T*o
The President of India Through Secretary to the Oovt. of India Ministry of Finance, Department of Economic Affairs New Delhi.
Sir,
In consideration of the President of India hereinafter referred to as 'the Government' having agree to arrange for payment in foreign currency of the price of goods to be imported by
*(i)
individual/partners.
(ii) ——-. working under the n a me
(iii) ——and style of M / s. ~———.
(name(s) & address(s)
•Messrs—> a company having its registered office at ip the state of hereinafter referred to as the importers' under Import Licence Mo. dt. granted for-——Rupees, we, . hereby guarantee that we shall arrange deposit to the credit of the Government in the Reserve Bank of India. New Delhi/ State Bank of India, Tis Hazari Branch, Delhi or by means of Demand Draft Drawn on and in favour of State Bank of India, Tis Hazari Branch, Delhi (for credit to the Central Government Account) to be forwarded to the said Tis Hazari Branch—
(i) Within seven days of the receipt of advice of pay- ment with shipping documents, from the UK Banks, of rupee equivalent of the invoiced price represent- ing the sterling disbursements made by the UK Banks, under the letter of credit authorisation issued by Ministry of Finance, at the composite rate of exchange prescribed for this purpose by the C.C.I&E, vide Public Notice N o. 15-ITC(PN)/72 dated 28-1-1972 read with Public Notice N o. 108-ITC(PN>/72 dated 21 July, 1972 and N o. 8-lTC(PN)/76 dated the 17th January 1976 or us notified from time to time through subsequent Public Notice or by .the Reserve Bank of India through Exchange Control Circulars to the Authori- sed Dealers in foreign exchange, along with interest thereon at 9 per cent per annum for the first 30 days and at 15 per cent for the period in excess of 30 days from the date of payment to UK suppliers to the date of deposit of rupee equivalent and UK bank charges (both dates inclusive), as notified in Public Notice N o. 46- ITC(PN)/76 dated 16-6-1976.
(ii) Within seven days of the demand by the Govern- ment of such additional amount as may be demanded by the Government as being due on account of service charges.
2. We undert*k*-to pay to the Govern- ment on demand and without demur such sum not exceed- ing^ . rupees (plus Interest and service, charges at aforesaid) as may be demanded by the Government in the event of the importers failing or neglecting to make any of the above mentioned such payments and the deci- ilon of the Government as to such failure or neglect on the part of Importers and as to the amount payable to the Government by us hereunder shall be final and binding on us.
3- W e— — — - — - a g r ee and undertake not to release shipping documents to the Importers until after the rupee equivalent as foresaid and the other dues, If any, as demanded by Government are deposited to the credit of the Government.
.•*• We, -agree and undertake not to revoke this Guarantee during its currency except with the 'previous consent of the Government in writing.
5. The Guarantee herein contained shall not be affected by any change in th* constitution of the Importers or of our Bank.
6. The Government shall have the. fullest liberty with- out affecting this guarantee to vary tiny of the terms of the Import Licence detailed above or to extend the time for payment by the Importers from time to time or to postpone for any time and from time to time any of the powers exercise by the Government of the liberty with reference to the amount of aforesaid or any reason of any such variation or extension of time being given to the Importers of any forbearance, act or omission on the part of the Government of any indulgence by the Government to the importer or by any of the matters or things whatsoever which under the law relating tc sureties shall but for this provision have the effect of so releasing us • Bank from our such liability.
Our liability under this bond /guarantee is restricted to Us.— (plus interest and service charges a" aforesaid) and it will remain in force till the** day of month) 197 . We also under- take to make such additional deposits as may be necessary In terms of CCTAE's Puhllc Notice No. i5-ITC(PN)/72 dated 28-1-1972 read with Public Notice No. 108-JTC(PN)/76 dated 21st July, 1972 and Public Notice No. 8-ITC(PN)/76 dated 17th January, 1976 or as notified from time to time. Unless claim under the bond/guarantee are made in writ- ing within six months of this date and unless a suit or action to enforce these claims is commenced within another six months thereafter i.e. upto ——all Government's rights under this bond/guarantee shall be forefeited and we shall be relieved and discharged from all liability there- under.
Yours faithfully,
Signature of the Authorised
Officer of the Bank and Bank's full address.
Place-—-——*—
Date— •—
(The Bank Guarantee is to be, executed on a non-judicial stamp paper, the value of the stamp being adjudicated by the collector in accordance with the provisions of Section Jl of the Indian Stamp Act, 1899)—
•Strike out which is not applicable.
••This date shall be arrived at by adding one month to the date by which all payments are expected to be finalised.
ANNEXURE V
UNITED KINGDOM/INDIA MIXED PROJECT GRANT
1978
PAYMENT CERTIFICATE
I hereby certify that
(i) The payments referred to in the invoices listed below, which or copies of which accompany this payment certi- ficate have been mada or fall duo and are due to be made in respect of Caattmct No date between the contractor named below and
(Purchaser) and are in accordance with the particulars of this contract notified in the contract certificate signed on behalf of the said contractor on ,
Contractor's Date Amount Short description of goods, works and/or Invoice No. services.
(ii) The amounts specified in paragraph 1, do not include any additional foreign content to that declared in para - graphs 5, 6, or 7 of the contract certificate.
(iii) I \\%vc tho authority io sign this certificate on tohilf of
tho Contractor named below.
Signed Position hold
For and on behalf of
Name and Address of Contractor
Date *
Nora : For tho purpose of this declaration the United Kingdom"
Includes the Channel Islands and the Islo of Man.
ANNEXURE VI
Form of Application for release of Bank Guarantor
To
The Controller of Aid Accounts and Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, Parliament Street, (Sansad Marg), New Delhi.
. S i r,
We are furnishing below detailed information on the rupee deposit made by us in discharge of our obligations under Bank Guarantee No. dated for an amount of . Rs with the request that the same may be
roieased and returned to us.
1. The name and full address of the importer/licencee on
whose behalf the bank guarantee was furnished.
2. The Import Licence No, date, value and brief description
of the commodities allowed for import thereunder.
3. Particulars of the authorisation(s) for opening Letters of
Credit obtained from the Ministry of Finance.
(a) Letter No, & Date. (b) Amount of authorisation. (c) U.K. Grant No.
4. Particulars of Imports and rupee deposits made (to bo
given separately for each Letter of Credit Authorisation).
(a) Particulars of Letters of Credit opened (No., date,
value and the supplier's name),
(b) Invoice No. and date relative to each Letter of Credit.
(c) Amount of invoice (net in sterling). (d) Amount of rupee deposit.
(e) Relative chalhn No. & date and the name of Treasury
Bank.
(f) If by demand draft, No., & date of the demand draft and the No. and date of the Letter with which the draft was sent to tho State B^gjfcjof India, Delhi.
•5. Amount utilised and balance unutilisod (sterling) in each
Letter of Credit Authorisation.
11. We certify that :
(1) *That balance amount of £ avallablo in tho authorisation(s) given by the Ministry of Finance has not been utilised/will not be utilised, or
No letter of credit was opened under the authorisation(s) lapsed.
or
The letter^'of credit was opened against the authorisation
lotter(s) expired unutilised and
(2) Our obligations under the bank guarantee in question
have been duly discharged.
m. We request that tho bank guarantee may please be released
and returned to us for cancellation.
Yours faithfully,
Authorised Agent for and on behalf of the Bank
•Whichever is applicable.
ANNEXURE VII
FORM OF UTILISATION REPORT IN RESPECT OF
U.K./INDIA MIXED PROJECT GRANT 1978
Utilisation report for the period of 1st April to 30th June
].t,ui> :th September
< a tobor to 31st December
1st January to 31st March
The portian not applicable will be deleted. The report will be rendered and availability at the end of the quarter by the 15th of the month following the quarter.
(to be furnished separately in rospect of oach liconce)
1. Nirrn ofthi Importing Firm
2. Particulars of U.K. Grant
3. No. & Date of the Import
Licence. No. & Value in No. & Date t date L/A Contract issued by & the CAA or name of of trans- supplier. mission
to CAO for ap- proval of ODA
4. Value of the Import Licence.
(Both in rupees & Sterling)
3. Value of the complete con- (i) tracting documents for- (ii) warded so far to the Minis- (iii) try of Finance (Please give details of Contract No9. & value issued by Controller of Aid Ac- counts). Total
6. Payments made to the Name of Total amount
U.K. Suppliers Up-to- Suppliers Paid in sterling. date).
7. Payments yet to be made (i) in respect of the con&act* (ii) already approved. The " (Hi) yearf & tho quarters in which the payments are Total likely to be made may be indicated.
8. Value of further orders in- -do-
tended to be placed on U.K. Suppliers.
9. Surrenders, if any.
Signature of the
authorised officer of the Importing Firm.