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REGISTERED No. D. (D.)-72

The Gazette of India

EXTRAORDINARY

PART I—Section I

PUBLISHED BY AUTHORITY

No. 65] NEW DELHI, FRIDAY, MARCH 9,1979/PHALGUNA 18,1900

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

1290 G.I./78 —I

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MINISTRY OF COMMERCE, CIVIL SUPPLIES & CO-

OPERATION

(Department of Commerce)

IMPORT TRADE CONTROL

PUBLIC NOTICE NO. 17—ITC(PN>/79

New Delhi, the 9th March, 1979

Subject ; Terms and conditions for licensing of priv&te sector and public sector imports under the Dutch General Purpose Credit for 1978-79.

File No. IPC/39/13/76,—The terms and conditions gov- erning the issuance of import licences financed under the Dutch General Purpose Credits for 1978-79 as given in Appendices 1 & II to this Public Notice aie notified for infor- mation.

Appendix I to Deportment of Commerce Public Notice No.

17—ITC(PN)/79 dated 9-3-1979

CONDITIONS FOR LICENSING PUBLIC SECTOR IM-

PORTS UNDER THE DUTCH GENERAL PURPOSE CREDIT.

Section I—General :

1(1) The Dutch General Purpose Credit for 1978-79 ex- tended by the Nethcrlandse lnveMeringsbank Voor qntwikkel- ingslanden N, V. is untied in favour of developing coun- tries. Accordingly the poods and commodities and services in- cidental thereto which are to be financed under the Credit can be imported from Netherlands and- all countries enume- rated in the list at Appendix-A of the "Guidelines for Pro- curement of Goods and Services under Bilateral Development Loans by the Netherlands" (Annex. I) which will be the '"eligible source countries" under the credit. The terminal date of disbursements in respect of the credit would be 31-12-1981.

1(2) Components to the extent of 10 per cent in respect of chemicals and 20 per cent in respect of other imports from non-eligible source countiies can, however, be considered for being financed under the Credit.

1(3) Limited supplies of. goods and services from non- eligible source countries to supplement the supplies from eli- gible source countiies in excess of the limit indicated in Sec- lion 1(2) may also be considered for financing under the credit. For this, specific approval of the Government of Netherlands will be necessary.

Section II—Issue of Import Licence :

11(1) The import licence will be issued on CIF basis with an initial validity of 12 months. For extension of ths vali- dity of the licence, the Licensee should approach the licen- sing authority concerned, within the validity period of the licence, who shall consult the Department of Economic Affairs, (W.E.IM Section) in the matter.

11(2) Firm order on C1F]C&F basis must be placed on the oversea* suppliers in the Netherlands or the countries men- tioned in the Annex. I and sent to the Department of Econo- mic Affairs (W.E.1TI Section) within 4 months from the date of issue of the import licence. If firm orders cannot be fina- lised within the time limit of 4 months the licensee should sub- mit 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 within the initial validity period. Such requests for extension in the ordering period will be considered on the merits of each case by the licensing authorities who may grant exten- sion upto a further period of 4 months. Tf, however, extension is sought beyond 8 months from 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. Ill Section), Ministry of Finance.

11(3) The licence will bear the superscription 'Dutch General Purpose Credit' and indicate the Public Notice num- ber under which here licensing conditions are issued. The licence code for the first and second suffix will be "SV'N.N " This licence code will be mentioned in all the shipping docu- ments as well as in the "S" form required to be furnished to the Reserve Bank at the time of rupee deposit.

11(4) As soon as the importer receives the import licence, he should send a report to that effect to the Ministry of Finance, Department of Economic Affairs, (W.E.III Sccti^i) along with the following information :— (

(i) No. and Date of Imports Licence ;

(ii) Value ;

(iii) Exchange ra'e if airy, indicated on Import Licence ;

(iv) Date by which copies of contract are expected to be furnished to Department of Economic Affairs.

Section III—Final isation of Contract :

111(1) The minimum value of contract eligible for finan-

cing under the credit is D.F1. 25,000.

111(2) Only one contract should be entered into against

the import licence. In exceptional cases, more than one con- tract 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 issue of the import licence.

111(3) 1 he contract for the import of goods and services

from the Netherlands and eligible source countries should be finalised keeping iti view the Guidelines for (Procurement of Goods and Services, as detailed in Anne\_ T).

111(4) Goods and services should be procured through Formal Open International Bidding except in the following cases :—

(a) where the Netherlands is (he traditional or the only

source for imports ; or

(b) where the value of imports is less than DF1. 1.25

million; or

(c) where such a procedure is inapplicable or inappro- priate. In this case, agreement between the Nether- lands Government and the Government of India on another more expedient procedure must be reached before the contract for the supplies could be fina- lised.

111(5) It would also not be necessary to resort to Formal Open International Bidding in the following types of cases :—

(a) where the purchaser has convincing reasons for maintaining a reasonable standardisation of his equipment.

(b) in cases where, because of the nature or the pro- curement in quostion, the number of qualified sup- pliers is limited and the market knowledge of the purchaser is such that he can he expected to know the qualified suppliers.

(c) where in the light of the existing relationship sub- sisting between the Indian importers and the foreign suppliers and the scope pf supplies available and identified in the Netherlands and /or the developing countries, the borrower considers that imports should be effected from the Netherlands only.

In such cases the procurement formula of paragraphs 31 to 39 of the Guidelines for procurement of goods and servi-

, ces (Annex. I) may be followed.

111(6) The purchaser may purchase directly from a single

supplier in one of the following cases :

(i) procurement by a commercial importer involves a registered brand name commodity which is for re- sale by the importer, for which the importer is a regularly authorized distributor or dealer of the supplier and for which the supplier is the sole distri- butor or manufacturer ;

(ii) procurement by a commercial importer involves a commodity which is procured for manufacture, pro- cessing or assembly and resale of the end product

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shipping documents will be issued and forwarded along with the copies of contract etc., to the Dutch authorities through the Embassy of India :>t The Haauc.

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

V(3) Since ihe payments to the suppliers under the credit arc generally made by the Dutch Bank against the production of shipping documents, the grace period facility will not be applicable to imports financed under this credit.

V(4) In case the shipment/payments to the suppliers arc not completed within the validity period of the Letter of Authority, the Importer should approach the Ministry ot Finance, Department of Economic Affairs (W.F.. TTI Section) for suitable extension of the Letter of Authority well before the expiry period of the Letter of Authority. Such a request should be accompanied with a photostat copy of the revali- dated Import Licence, if the period of extension sought for is beyond the validity of the original Import Licence.

V(5) If the request for extension ia the period of validity of ttic Letter of Authority is not received within a period of six months from the validity date of the Letter of Authority the tin-utilised 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 shopping documents will be invariably forwarded by the Netherlands Investment Bank to the concerned importer's bank in India, which would be a branch of any of the nationalised bank who should re- lease these negotiable set of documents to the importer con- cerned only after ensuring that the importer has deposited :

(i) the rupee equivalent of the payments to the sup- pliers in Dutch Guilders at the prevailing composite • rate of exchange to be calculated in the manner as prescribed in Chief Controller of Imports & Ex- ports's Public Notice No, S-ITCfPN)/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 Tndia;

(iil interest calculated at the rate of 9% per annum for the first 30 days and at 15 per cent for the period in excess of 30 days in terms of Public Notice No 46-TTC(PN)/76 dated 16-6-1976 on the amount, re- quired to be deposited vide item (T) above, reckoned from the date of actual payment to the sup- plier by the Netherlands Investment Bank for Deve- loping Countries N.V., The Hague, to the date of actual deposit of the rupee equivalent by the impor- ter in the State Bank of India, Tw Hazari, Delhi or Reserve Bank of India, New Delhi.

V(7) It shall be the responsibility of the Indian bank con- cerned. 1o ensure that the amounts L'UC are correctly deposited into Government Account before the import documents are handed over to the importers. The licence should also ensure that the amounts due are correctly deposited into Government account before taking delivery of the documents from their bankers.

V(8) Public Sector Importers (including Departments of the Central Government) should make the requisite rupee depo- sit only thrugh Authorised Dealers in foreign exchange and also get the Exchange Control Copy of the Licence endorsed bv them as required in Public Notice No 184-TTC(PN)/6R dated the 30th August. 1968. The requisite 'S* form will be sent bv the concerned bank to the Roserve Bank of Tndia, Bom- bay.

V(9) The moneys specified in Section V(6) should be deported only, with the State Bank of Tndia, T)s Hnzari Branch, Delhi, or the Reserve Bank of India, New Delhi to the credit of the Central Government Account under the head of account.—

"K—Deposits and advances—Deposit not bearing interest —-843—Civil deposits—Deposits for purchases etc abroad—Purchases etc. under Dutch General Pur- pose Credit 1978-79",

VflO) The advice of rupee deposit;, refcircd to ab^ye, should be sent to the. Controller of Aid Accounts and Audit, Ministry of Finance, Department ->L Economic Affairs, LJCO Bank Building, Parliament Street, New Delhi by enclosing original receipted treasury challan in the proforma prescribed under Public Notice No. 74-ITaPN)/74 dated 31-5-1974, No, 103-ITC(PN)/76, dated 12-10-1976. The information in re- gard to letter of Authority No., amount of foreign currency lor which rupee deposit is made, date of payment of the Dutch supplier, amount of interest and period for which it is calcu- lated should invariably be indicated in the ehallnn form.

(B) Payment to the suppliers in Kilobit¹ Soiircu Countries.

V(ll) A Letter of Authority (in form at Annex. V) to the Importers' Bunk, as indicated by the Importer in his ap- plication authorising opening of a Letter of Credit on the suppliers' bank in the eligible source country in favour of the supplier will be issued by the Ministry of Finance, Depart- ment of Economic Affairs, (W.E. Ill Section). Copies of the contract along with a copy of the said Letter of Authority will be forwarded to the Dutch authorities .ilso through the Embassy of India at The Hague.

V(12) On receipt of the Lettei of Authority mentioned in the pieceding paragraph, the Importer's Bank will open a Let- ter of Credit in favour of the supplier through his banker within a period of 30 days from the date of issue of the said Letter of Authority and against a valid import licence. An intimation to this effect shall be forwarded to the Control- ler of Aid Accounts and Audit. UCO Bank Building, Parlia- ment Street, New Delhi.

Vl(13) After the payment to the supplier is made the supplier's bank shall forward to the Controller of Aid Ac- counts and Audit, Ministry of Finance, Department of Eco- nomic Affairs, UCO Bank Building, Parliament Street, New Delhi, one set of non-negotiable shipping documents and two copies of the invoice with a certificate duly endorsed thereon by the supplier that the payment has been received by the latter.

V(14) The supplier's bank will also obtain from supplier and furnish to the Controller of Aid Accounts and Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, Parliament Street, New Delhi, a certificate or proof (in duplicate) in regard to the origin of the goods being in accordance with the Rules of origin appended to the "Guideline for Procurement of Goods and Services."

V(15) The importer should forward to the Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, Parliament Street, New Delhi, a certificate of remittance made by them lo the supplier against (he invoice/shipment of goods excluding bank charges, if any. This certificate should be obtained from the bank through which the Letter of Credit is opened. The importer should also ensure that one set of non-negotiable shipping documents and two copies of invoice with a certificate duly endorsed thereon in regard to receipt of payment by supplier and certificate of origin, referred to in Section VC13) and Vf14) are forwarded to Ministry of Finance, Department of Fconomic Affairs, Controller of Aid Accounts & Audit within 15 days of the shipment of goods.

V(16) Payment against the Letter of Credit will be made In the importer on the strength of the Exchange Control Copy of the Tmport Licence.

VU7) Normally all shipments/payments to the Supplier should be completed within a period of 20 months from the date of issue of The Letter of Authority referred to above. In case the shipments/payments to the suppliers arc not likely to be completed within the period of 20 months, the Importer should {variably approach the Ministry of Finance, Department of Economic Affairs. (W.E, III Section) at least a month before the expiry of this limit for completing the shipments/payments to the suppliers. This request should be accompanied with a photostat copy of the revali- dated Import Licence covering the period of extension sought for. If such a request is not received before the stipulated period, the un-utilised balances of fhe contract will be deemed as having been surrendered.

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13. if national standards are cited to which equipment or material must comply, the specifications shall state that goods meeting other internationally accepted standards, which demand an equal or better quality than the standards men- tioned, will also be accepted.

14- Specifications shall be based on performance and potential and should only prescribe registered brand names, catalogue numbers or products of a particular manufacturer if particular spare parts are required or if ii has been decided that a certain amount of standardization is necessary to maintain ceriain essential quality factors. In the last case the speculations shall permit offers of alternative goods which have similar characteristics and whose performance and quality arc of a level at least equal to those specified.

15. Invitations to bid shall list the eligible source coun-

tries and shall set out the rules of origin applicable.

16. Quotations shall be examined on the basis of strict equality of conditions among suppliers from eligible source countries (including the evaluation of quotations for material and equipment at prices free of customs tariffs and other duties and taxes of like effect). The borrower country, however, is authorized, in the evaluation and comparison of bids to supply goods and services, excluding transport costs, to extend a margin of preference to local goods and services and to products from other eligible source countries which are members of the same regional economic group, consis- tent with GATT, or which intend to establish such a group, over g^xxls and services originating in other eligible source countries. This margin of reference shall not exceed 15 per cent on the C1F price of the lowest evaluated forcing per cent on the CIF price of the lowest evaluated foreign country, whichever is the lowest.

17. In special cases, the borrower may, after mutual con- sultation between the Netherlands Government and the bor- rowing country, extend a limited margin of preference to local and regional manufacturers, consistent with GATT, in addition to the margin of preference, mentioned in para- graph 16. In assessing the level of preference, due atten- tion should be given to factors like the degree of national or regional ownership and management and the registration in the borrower country or the regional economic group of these manufacturing firms.

18. Bidding documents shall set out any preferences agreed upon and specify the manner in which they will be applied in the evaluation and comparison of bids.

19. Bidders shall be given adequate time in which to sub-

mit their bids.

20. The date, hour and place for latest receipt of bids and for the bid opening shall be announced in the invita- tion to bid and all bids shall be opened publicly at the sti- pulated time. Bids received after this time shall be returned unopened. The name of the bidder and total amount of each bid and of any alternative bids if they have been re- quested or permitted shall be read aloud and recorded.

21. No bidder shall be permitted to alter bis bid after the bids have been opened. Only clarifications not changing the substance of tie bid may be accepted. The borrower may ask any bidder for a clarification of his bid but shall not ask any bidder to change the substance or price of his bid.

22. Except as may be required by law, no information relating to the examination, clarification and evaluation of bids and recommendations concerning awards shall be com- municated after the public opening of bids to any persons not officially concerned with these procedures on the side of cither the borrower or the Netherlands Government be- fore the announcement of the award of a contract to the successful bidder.

23. After the opening of the bids, the purchaser shall examine the bids in order to ascertain whether material errors in computation have been made in the bids, whether the bids are fully responsive to the requirements of the bidding documents, whether the required guarantees and sureties have been provided, whether documents have been properly signed and whether the bids are otherwise generally in order. If a bid does not substantially conform to the specifications or contains inadmissible reservations or is not otherwise substantially responsive to the bidding documents, it shall be rejected. A technical analysis together with a detailed assessment in monetary terms shall then be made to evaluate each responsive bid and to enable bids to be compared,

24. Invitations to bid may state that the purchaser reserves the right to reject all bids when none are responsive to the intent of the specifications, when there is evidence of lack of competition, or when the low bids exceed the cost previously estimated by an amount sufficient to justify such action, it all bids are rejected, the borrower may, after consultation with the Netherlands Government, enter into negotiations with one or more of the lowest bidders to ascertain the causes for such events and the reasons for the difference between the low bid and the cost estimates. Negotiated contracts reflecting changes in the specifications, leading to economies in the estimated cost of the project, may be acceptable, pro- vided the changes do not substantially alter the nature of the project. Where changes are substantial, rebidding mav be appropriate. This shall at all times be approved by the Netherlands Government.

25. Evaluations of bids shall be consistent with the terms and conditions set forth in the bidding documents and in any modifications thereto prior to the closing date for submission of bids. For the purpose of determining the lowest evalu- ated bid, commercial factors other than price, such as the time of completion of construction or other work, the effi- ciency and reliability of the equipment, the time of its deli- very and the availability of service and spare parts, shall also be taken into consideration and shall, to the largest possible extent, be expressed in monetary terms. The currencies in which bid prices would have to be paid shall be valued, for bid comparison purposes only, on the basis of rates of ex- change published by an official source and applicable to similar transactions at the closing date of the bidding.

26. The award of a contract shall be made to the bidder whose bid has been determined to be the lowest evaluated bid, taking into account the factors mentioned in the preced- ing paragraphs.

27. The Netherlands Government shall, upon request, be given adequate opportunity to rn-cscnt its comments and re- commendations on all phases of procurement. After the award of contract, the Netherlands Government shall be provided with (copies of) all relevant documents und other Information necessary for the evaluation of the use of the loan.

C. Procurement Procedures other than Formal Open Inter-

national Bidding.

28. In the cases mentioned in paragraphs 29 and 30, the procurement formulae of paragraphs 31-39 may be applied m accordance with paragraph 6.

29. Standardization

Where the purchaser has convincing reasons for main-

taining a reasonable standardization of his equipment.

30. Limited Number of Qualified Suppliers :

In cases where, because of the nature of the procurement m question, the number of qualified suppliers is limited and the market knowledge of ihe purchaser is such that he can be expected to know the qualified suppliers..

Formal Selective International Bidding

31. Under formal selective international bidding the pur- chaser is authonzed to invite bids from only a limited num- ber of (pre) qualified suppliers known to be able to meet the special requirements of the procurement in question.

In such cases the borrower should ascertain that no poten- tial qualified suppliers have been excluded. The Ministry of Finance (Department of Economic Affairs), Government of India shall provide all necessary information as and when asked for by potential suppliers of eligible source countries to enable them to participate on an equitable basis.

32. The suppliers arc to be selected exclusively on the

the Netherlands * S°U r CC c o l l n t r i es including

33. All provisions of formal International bidding, other

than those of paragraph 9, are to be fully applied.

Tnformiil International Competitive Procurement

34. If procurement is not through the formal competitive bidding procedure, it should be made in accordance with good commercial practice and without discrimination among eligible source countries.

35. The importer should give wide and timely publicity to the intended use of informal international competitive procurement. The Ministry of Finance, (Department of ixo- iiomic Affairs). Goverment of India shall provide till infor- mation necessary to permit suppliers of eligible source coun- tries to participate on an equitable basis as and when such information is asked for.

36. The time allowed for the preparation of quotations and oilers shall be governed by the nature of the contracts involved. Both lead time and delivery schedules shall be long enough to allow meaningful international competition.

37. The Netherlands Government may require the pur- chaser in particular cases to supply information on the pur- chases made, including full details concerning how quotations were obtained, the suppliers who arc involved and the quo- taions received.

38. The guidelines for foimal open internationl bidding should be applied to the fullest possible extent as appro- priate.

Single Supplier

39. The purchaser is permitted to purchase directly from a

single supplier in one of the following cases :

(i) procurement by a commercial importer involves a registered brand name commodity which is for resale by the Importer, for which the importer is a icfuilarly authorized distributor or denier of the supplier and for which the supplier is the sole distributor or manufacturer;

(ii) procurement by n commercial importer involves a commodity which is procured for manufacture, processing or assembly and resale of the end pro- duct for \yhich the importer is a regularly autho- rized distributor or dealer of the supplier and for which the supplier is the manufacturer;

(ili) in order to assure interchangcability of paits or because of special design or technical requirements the procurement can onlv be made from one source;

(iv) the purchaser is a manufacturer whose equipment and raw material formulas are designed for best utilization with a specific type of raw material which can only be obtained from one source;

(v) the purchaser wishes to extend or repeat a procure- ment originally made under formal international bidding provided that the complementary procure- ment is small in relation to the original procure- ment, takes place on u few occasions only and while the construction work related to the original procure- ment is still under way or shortly after the original

procurement is made:

fvi) the value of a transaction is less than Dfl. 1.25

million.

D. Guidelines for he Use of Consultants

40. Consultant firms emr-loved should be independent in the sencc that their advice and Ihe designs, specifications and bid documents prepared bv them should be free of national, commercial or industrial bias, and can be complied with on a competitive basis. Tn considerinp local consultant firms, due attention should be Riven to factors like the degret of national ownership, matinperiient and personnel nnd re- gistration.

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41. Formal competitive bidding procedures are not re- quired for the selection of consultant firms. However, in the process of selection, borrowers should consider a reasonable number of prospective firms, which can be expected to render competent and independent services from several eligible source contries. This list shall be based on prequali- fication, taking into account :

(j) the firm's previous experience in similar types of

work.;

(ii) its potential with icgaid to personnel, equipment

and plant; and

(iii) its financial position and integrity.

It is desirable that, before invitations for proposals are sent out, the borrower submits the list of prospective firms to the Netherlands Government. The Netherlands Government re- serves the right to reject he choice of a consultant, and may, further more, on the basis of her knowledge of the con- sultancy sector in the Netherlands, sugsest that this list is extended.

I:. Grievances

42. The borrowci shall make provision for the hearing nnd investigation of complaints arising in connection witn the invitations to bid, the submission of bids and the award of contracts,

43. In the case of purchases conducted under foimal inter- national bidding procedures complaints of any substance, re- gurdlng restrictive commodity specification or other restric- tive terms of the invitation, made prior to the bid closing date, shall be resolved before the opening of bids. Tf necessary and only after consultation with the Netherlands Govern- ment, (he bid closing date may be postponed for an appro- priate period.

44. When a complaint has been made by one of the sup- pliers concerned, the documentation relating to the substance of Ihe complaint nnd action laken thereon shall be available tor evunination hv the Netherlands Government, as well as by the borrowei.

APPENDIX A

List of elig:ble source countries for united bilateral loans

to developing countries

A. Nciherliinds

". Africa

North of Sahaia

Algeria 1 ibyon Arab Rep. Morocco Tunisiu tfiypt

South of Sahara

Botswana Burundi Cameroon Cape Verde Islands Central African Rep, Chad Comoro Islands Congo /( People's Rep. of) Zaire Rep. Dahomey Ethiopia Gabon Gambia Ghana Guinea Guinea LSiss.iu Iv'eiv Coast kenva

   Lesotho                                                              Asia
   Liberia                                                              , . ,, „ „
                                                                       M i d d le E a sl
   Malagasy  Republic
   Malawi                                                                 Bahrein
   Mali                                                                   Iran
   Mauritania                                                             jrUq
   Manuritius                                                             Israel
   ™"ar                                                                  Jordan
  . ^ s e na                                                              K u w n jt
   Reunion                                                               T  ,
   „     .                                                                Lebanon
   Rwanda
                                                                          O m an
   Senegal
   Seychelles                                                             Qatal"
   Sierra  Leone                                                         S a u di Arabia
   Somalia                                                               Yemen  (People's  DR)
   Terr.  Afurs  and  Issim                                               Syrian  (Arab  Rep.)
   St.  Helena  und  dependencies                                         Unit.  Arab  Emirates
   Sudan                                                                 Yemen  (Arab  Rep,)
   Swaziland
   Tanzania                                                            South
   Uganda                                                                 Afghanistan
   Upper  Volta                                                           Bangladesh
   Zambia                                                                Bhutan
                                                                         Burma
 America                                                                 India
 North  and  Central                                                     Maldives
                                                                         Nepal
   Bahamas
   Barbados                                                              Pakistan
                                                                         S li L u n k l1
   Bermuda
   Costa  Rica                                                         Far  Easl
   C u bn                                                                Brunei
   Dominican  Republic                                                   Khmer  Rep,
   El  Salvadoi                                                          Hong  KonK
   Guadeloupe                                                            Indonesia
   Guatemala                                                             Korea  (Rep,  of)
   Haiti                                                                 Korea  (People's  Dem,  Rep,  orj
   Honduras                                                              Laos
   Honduras  (Br.)                                                       Macao
   Jamaica                                                               Malaysia
   Martinique                                                            Philippines
   Mexico                                                                Singapore
   Netherlands  Antilles                                                 Thailand
   Nicaragua                                                             Timor
   Panama                                                                Vietnam  (Rep.  of)
  St.  Pierre  et  Miquclon                                              Vietnam  (Dem.  Rep.  of)
  Trinidad  et  Tobago                                                 Oceania
  West  Indies  (Br.)
                                                                         Fiji
South                                                                    Gilbert  & Ellice  Islands
  Argentina                                                              F r c n ch Polynesia
  Bolivia                                                                N cw  ^aledenia
  Brazil                                                                 Now  Hebrides  (Br.  & Fr.)
  C h i l°                                                               Pacific  Islands  (US)
  Colombia                                                                               .
                                                                         P;lpLln  N cw G u l n e !l
  Ecuador
  Falkland  Islands                                                      Solomon  Island*
   Guyana                                                                Tonga
  Guiana  (Fr.)                                                          Wallis  and  Futuna
                                                                         Western  Samoa

Europe

Paraguay Peru Surinam Uruguay Venezuela

Turkey Portugal

APPENDIX 'B'

Rules of Origin

1. The subject items of these rules of origin shall be goods and services produced in the eligible source countries.

2. In the case of goods, assessment of the Netherlands origin shall be subject to the legislation in this field which prevails in the European Community.

3. Proof of origin of the goods mentioned in paragraph 2 shall be furnished by means of a certificate of origin, issued by a Chamber of Commerce in the Netherlands. -

4. la the case of goods, assessment of origin in deve- loping countries shall be subject to the rules of ori- gin which are established by the European Com- munity in the framework of the General System of Preferences.

5. Proof of origin of the goods mentioned in paragraph 4 shall be furnished by means of a Certificate of Origin, Form A (as in use by the General System of Preferences), issued by an official authority in the developing country.

6. In the case of services (cf. paragraph 1 of the Guidelines), origin shall be assessed, on an ad hoc basis, in mutual consultation between the Nether- lands Government and the borrower country.

7. In cases where the Rules of Origin cause substan- tial problems or serious economic damage to the borrower country (e.g. an over-tight restriction of the number of potential suppliers), deviations from these rules may be permitted, but only after mutual consultation between the Netherlands Government and the borrower country.

ANNEXURE II

(a) Name and address of he Indian importaer and/or

Project authority where necessary.

(b) Name and address of the supplier. In case of sup- pliers in Eligible Source Countries, the following information should also be furnished—

(i) Nationality.

(ii) Percentage of the shares held by national of the

eligible source countries.

(c) (i) No. and date of Import Licence,

(ii) Value.

(d) (i) Name and address of the Supplier's Bank in

the Netherlands/Eligible Source Country.

*(ii) The Importers' Bank in India (which will be the bank that has furnished the Bank Guaran- tee).

**(iii) The importers' Bank in India which will be responsible to make rupee deposits in Govern- ment account before releasing shipping docu- ments to the importer.

(e) Value of the contract order in Dutch Guilders or

the currency of the Eligible Source Country.

(f) Method of Procurement whether it is based on direct purchase or Formal Open International Bid- ding or Selective Formal International Bidding, in which case it should be indicated whether the con- tract has been entered into on the basis of the lowest technically suitable offer, with reasons, if any.

(g) Short description of goods to be imported. (h) Origin of goods—percentage of imported compo- nents from non-eligible source countries, if any.

*for Private Sector. **for Public Sector.

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(i) Expected date of completion of deliveries.

(j) Payment terms and probable dates on which pay-

ments under the contract will fall due.

(k) Detailed list of shipping documents, like Bill of Lading, Invoices, Certificate of Origin, etc., which the Netherlands Investment Bank for Developing Countries or the Suppliers' Bank in Eligible Source Country should demand from the suppliers before making payment, together with the number of copies of each document required.

(1) Indian Agent's commission, if any, included in the contract (exact amount to be indicated), which will have to be deducted form the contract value while issuing a Letter of Authority. Such commission will be payable by the Importers direct to the Agents in rupees.

(m) Value of which the Letter of Authority is requested.

(n) Number, date and value of bank Guarantee, indi-

cating the period upto which it is valid.

(o) Special instructions, if any.

ANNEXURE in

DUTCH CREDIT

CONTRACT CERTIFICATE

Particulars of contract

Indian Import Licence No

1. Number and Date of the Contract

2. Description of goods or services to be supplied to the

purchaser (If a number of items are to be supplied, a detailed list should be appended to this certificate).

3. Total contract price payable by purchaser (state CIF,

C&F or FOB) Dfl

IF GOODS ARE TO BE SUPPLIED THE FOLLOW- ING SECTION MUST BE COMPLETED.

4. Estimated % of the FOB value of the goods not ori- ginating in the Netherlands but purchased by the supplier direct from abroad, i.e. % of imported raw material or components used in manufacture.

(a) % FOB value

(b) Description of items and brief specification

5. IF SERVICES ARE TO BE SUPPLIED THE FOL" LOWING SECTION SHOULD ALSO BE COMP- LETED.

6. State the estimated value of any work to be done or services performed in the purchaser's country by

(a) Your firm (site engineers charges, etc.)

(b) Local supplier

7. Qualifying remarks as necessary in respect of para-

graphs 4 & 5 above

8. I hereby declare that I am employed in the Netherlands by the Supplier named below and have the authority to sign this certificate. I hereby undertake that in performance of the contract no goods or services which are not of Netherlands origin will be supplied by the supplier other than these specified in paragraphs 4 & 5 above.

Signed

Position hold

Name and address of supplier

Date

Certified

Netherlands Chamber of Commerce . . . .District

ANNEXURE IV

No. F. 14( )-WE.III/

GOVERNMENT OF INDIA

(Bharat Sarkar)

MINISTRY OF FINANCE

(Vitta Mantralaya)

(Department of Economic Affairs)

(Artbik Karya Vibhag)

New Delhi, the

To

The Netherlands Investment bank for Developing Coun- tries, The Hague, Netherlands. Agreement for the loan of

million Netherlands Guilders—

Request for direct payment.

Dear Sirs,

LETTER OF AUTHORITY NO.

With reference to our application of today's date as to

the financing of the transaction between M/s.

&

, India and M/s.

—, Holland, out of the loan made by your Bank to India, we hereby request and authorise you unconditionally and irrevocably to pay in ac- cordance, with the terms and conditions of the above men- tioned contract to the supplier in Holland the amount of N. fl. (Dutch Guilders

). It is request- ed that the invoices, shipping and other documents presented by the Dutch supplier be despatched direct to the

(Importer's Banker).

The suppliers win also be required to furnish to the Netherlands Investment Bank for Developing Countries a certi- ficate in duplicate issued /certified by the Netherlands Cham- ber of Commerce of the district in which the exporter is established regarding the Netherlands origin of the goods covered under the Letter of Authority.

Kindly forward the debt advice to the Government of India, Ministry of Finance, Department of Economic Affairs, Economic Aid (Accounts) Branch, UCO Bank Building, Parliament Street, New Delhi. This letter of Authority will remain vaKd upto

.

For the President of India,

Copy to

(Importer's Bank).

They should release the negotiable set of documents to the importer only after ensuring that the importer has deposit- ed :—

(i) the rupee equivalent of the payments to the suppliers in Dutch Guilders at the prevailing composite rate of exchange to be calculated in the manner as prescribed in Chief Controller of Imports & Ex- ports's Public Notice No. 8-ITC(PN)/76, dated 17th January, 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 Con- trol¹ Circulars of the Reserve Bank of India ;

(ii) interest calculated at the rate of 9 per cent per annum for the first 30 days and at 15 per cent for the period in excess of 30 days in terms of Public Notice No. 46-ITC(PN)/76, dated 16th June, 1976 pn the amount required to be deposited vide item (i) above, reckoned from the date of actual pay- ment to the supplier by the Netherlands Investment Bank for Developing Countries N.V., The Hague, to the date of actual deposit of the rupee equivalent by the importer in the Stute Bank of India, Tis Hazari, Delhi or Reserve Bank of India, New Delhi.

ANNEXURE V

No. F. 14 ( )-W.E.III/

GOVERNMENT OF INDIA

(Bharat Sarkar)

MINISTRY OF FINANCE

(VWta Mantralaya)

(Department of Economic Affairs)

(Arthik Karya Vjibhag)

New Delhi, the

To

Subject :—Contract entered under General Purpose Dutch

Credit—Reimbursement.

Dear Sirs,

Messrs.

(Indian importer)

have entered into a contract with. Messrs.

(Foreign supplier)

for the supply of—

for the amount of

(

) C.T.F./C.&F. against Licence . dated

No. issued under the Dutch General Purpose Credit for the value of Rs.

(Rupees

\

A copy of the contract is enclosed.

2. Out of the above amount of

an amount of is to be paid as Indian Agents' Commission in Indian currency. The sum to be paid to the supplier in foreign currency which will be financed initially out of the free foreign exchange resources, to be reimbursed later out of the Dutch General Purpose Credit, therefore, amounts to

.

3. You are authorised to open a letter of credit in favour

of Messrs.

through their

bankers, viz., Messrs.

within a period of thirty days from date of this letter and against a valid Import Licence, under intimation to the Controller of Aid Accounts & Audit, UCO bank Building, Parfiament Street, New Delhi.

4. In terms of para 10 Section VII of the Exchange Con- trol Manual, you are required to ensure that the date of the expiry of the Letter of Credit is not later than forty-five (45) days after the final date for shipment as stated in the relative import licence.

5. The letter of credit will also provide that Messrs.

(foreign banker)

will forward directly to the Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, Parliament Street, New Delhi, one set of non-negotiable shipping documents and two copies of the invoice with a certificate duly endorsed thereon by the Dutch Supplier that the payment has been received by the latter.

They will also obtain, from the suppliers and furniah to the- Controller of Aid Accounts. & Audit a certificate in dupli- cate issued/certified by the Netherlands Chamber of Com- merce of thf district in which the exporter 's established re- garding the Netherlands origin of the goods covered under the letter of Credit/*issued by the appropriate competent .authority in regard to the origin of the goods covered under the letter of Credit,

6. You arc also required to forward to the Controller of Aid Accounts and Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Buifding, Parliament Street. New Delhi a certificate of remittance made by you tc M/s. • • —

against the invoice/shipment of goods, excluding Bank charges, if any.

7. Receipt of this letter may please be acknowledged.

*To He deleted if not applicable.

Yours faithfully.

Copy with a copy of the contract forwarded to :—

Reserve Bank of India, Exchange Control Department,

Bombay-1.

2. Copy also forwarded for information to :—•

(i) _ __ . _ _ - .

(Indian importer)

It may be ensured that M/s. • (foreign banker)

forward one set of shipping and other documents (non-negotiable) alongwith payment advice, two copies of the invoice with a certificate duly endors- ed thereon by the supplier that the payment has been received by him, and two copies of certificate in regard to origin of gcods to the Controller of Aid Accounts & Audit, Ministry of Finance, De- partment of Economic Affairs, UCO Bank Building, Parliament Street, New Delhi.

(ii) M/s. . • _ _—

(foreign bank)

It is requested that on each payment, one set of shipp- ing and other documents (non-negotiable) along- with payment advice, two conies of the invoice with a certificate duly endorsed thereon by the supplier that the payment has been received by him and two copies ot certificate in regard to origin of goods may be forwarded direct to the Controller of Aid Accounts and Audit, Ministry of Finance, Depart- ment of Economic Affairs, UCO Bank Building, Parliament Street, New Delhi.

(iii) Controller of Aid Accounts & Audit, Ministry of,

Finance, Department of Economic Affairs, UCO Bank Building, Parliament Street, New Delhi.

ANNEXURE VI

STATEMENT SHOWING QUARTERLY REPORT ON UTILISATION UNDER DUTCH (G.P.) CREDIT

1. Name of Importer.

2. No, and date of Import Licence.

3. Value of Import Licence.

4. Value of orders placed.

5. Letter of Authority No. and date.

6. Amount of Letter of Authority.

7. Date of Validity of 1 ctter of Authority.

8. Amount utilised during the Quarter. D.G.

9. Totrl amount utilised. D.G.

10. Total Amount deposited into Government Rs.

Account,

1290 Or/78-5

400/5

11 Payment yet to be made during the

Fubrequent quarters

L' Surrender:, if any.

K. V. SHARMA, Controller of Imports and Exports.

APPENDIX II

II TO DEPARTMENT OF COMMERCE

PUBLIC NOTICE NO, 17—iTC(PN)/79

Dated, the 9th March, 1979

CONDITIONS FOR LICENSING PRIVATE SECTOR IMPORTS UNDER THE DUTCH GENERAL PURPOSE

CREDIT

Section I—General :

1(1) The Dutch General Purpose Credit for 1977-78 ex- tended by the Netherlands Investerings bank Voor Outwikke- lingslanden N. V. is untied in favour of developing countries. Accordingly the goods and commodities and services Incidental thereto which are to be financed under the credit can be imported from Netherlands and all countries enumerated in the list at Appendix-A of the "GuideFines for Procurement of Goods and Set vices under Bilateral Development Loans by the Netherlands" (Annex—I) which will be the "eligible source countries" under the credit. The terminal date of disbursements in both the credit agreements viz, Dfl. 120 million and Dfl. 54 million would be 31st December, 1980.

1(2) Components to the extent of 10 per cent in respect of chemicals and 20 per cent in respect of other imports from non-eligible source countries can, however, be consi- dered for being financed under the credit. Specific requests in this regard, if any, should be made to the Ministry of Finance, (Department of Economic Affairs), W.E. Ill Sec- tion before finalizing the contact.

1(3) Limited supplies of goods and services from non- eligibla source countries to supplement the supplies from cligibfe source countries in excess of the limit indicated in Section 1(2) may also be considered for financing under the credit. For this, specific approval of the Government of Netherlands will be necessary.

Section II—Issue of Import Licence :

11(1) The import licence will be issued on C.T.F. basis with an initial validity of 12 months. For extension of the validity of the licence, the Licensee should approach the licensing Authority concerned within' the validity period of the licence who shall consult the Department of Economic Affairs, (WE. IT1 Section) in the matter.

11(2) Firm order an CIF/C&F basis must bo placed on the overseas suppliers in the Netherlands or the countries mentioned in the Annexurc I and sent to the Department of Economic Affairs, (W.E. Ill Section) within 4 months from the date of issue of the import licence, If firm orders cannot be flmdised within the time limit of 4 months the 1 ilensce should submit lo the Chief Controller of Imports and Exports of 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 within the initial validity period, Such requests for extension in the ordering period will be consi- dered on the merits of each case by the licensing authorities who may grant extension upto a further period of 4 months. Tf, however, extension is sought beyond 8 months from the date of Issue of Import licence, such proposal should invariab- ly be referred by the licensing authorities to the Department of Economic Affnirs (W.E. TTT Section), Ministry of Finance.

11(3) The licence will bear the superscription 'Dutch General Purpose Credit' and indicate the public notice number under which these licensing conditions are issued. The licence L-odo for the first and second suffix will be "S"/"N". 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 at the time of rupee deposit,

11(4) As soon as the importer receives the import licence, he should send a report to that effect to the Ministry of

Finance, Department of Economic Affairs, (W.E III Sec- tion) along with the following information :

(i) No. and Date of Import Licence ;

(ii) Value ;

(iii) Exchange rate, if any, indicated on Import Licence;

(iv) Date by which copies of contract arc expected to be

furnished to Department of Fconomic Affairs.

Section III—Finalisiition of Credit :

III(l) The minimum value of contract eligible for financ-

ing under credit is DFL. 25,000.

111(2) OnTy one contract should be entered inlo against the import licence. In exceptional cases, move than one contract will be permitted to be entered into, for which prior approval of the Department of Economic Affairs, Minis- try of Finance should be obtained soon after the date of issue of the import licence.

111(3) The contract for the import of goods, and services from the Netherlands and eligible source countries should be finalised keeping in view the Guidelines for Procurement of Goods and Services as detailed in Annexure-I.

ITT(4) Goods and services should be procured through Formal Open International Bidding except in the following cases :

(a) where the Netherlands is the traditional or the

only source for imports ; or

(b) where the value of imports is less than Dfl. 1.25

million ; or

(c) where such a procedure is inapplicable or inappro- priate. In this case, agreement between the Nether- lands Government and the Government of India on another more expedient procedure must be reached before the contract for the supplies could be finalised.

111(5) It would also not be necessary to resort to Formal

Open International Bidding in the following type of cases:

(a) where the purchaser has convincing reasons for maintaining a reasonable standardisation of his equipment,

(b) in cases where, because of the nature of the Pro- curement in question, the number of qualified sup- pliers is limited and the market knowledge of the purchaser is such thHt he can be expected to know the qualified suppliers.

(c) where in the light of the existing relationship sub- sisting between the Indian importers and the foreign suppliers and the scope of supplies available and identified in the Netherlands and/or the deveibping countries, the borrower considers that imports should be effected from the Netherlands only.

In such cases the procurement formula of paragraphs 31 to 39 of the Guidelines for procurement of Goods and Ser- vices (Anncxure I) may be followed.

111(6) The purchaser may purchase directly from a

single supplier in one of the following cases :

(i) procurement by a commercial importer involves a registered brand name commodity which is for resale by the importer, for which the importer is a regularly authorised distributor or dealer of the supplier and for which the supplier is the sole distributoi or manufacturer ;

(ii) procurement by a commercial importer involves a commodity which is procured for manufacture, pro- cessing or assembly and resale of the end product for which the importer is a regularly authorized distributor or dealer of the supplier and for which the supplier is the manufacturer ;

(iii) in order to assure inter-changeability of parts, or- becausc of special design, or technical requirements the procurement can onlv be made from one source ;

(iv) the importer is a manufacturer whose equipment and raw material formulae are designed for best utili- sation with a specific type of raw material which can only be obtained from one source ;

(v) the importer wishes to extend or repeat a procure- ment originally made under format internationar bidding provided that the commplementary pro- curement is small in. relation to the original procure- ment, takes place on a few occasions only and while the construction work related to the original procurement is stilr under way or shortly after the original procurement is made ;

(vi) the value of a transaction is less than Dfl. 1.25

million.

111(7) Formal competitive bidding procedures aic not required for the selection of consultant firms. However, be- fore invitations few proposals arc sent out by the Indian firms to the consultant? firms, a list of such prospective firms should be furnished to the Ministry of Finance, Department of Economic Affairs (W.E. Ill Section). The list in turn will be submitted to the Government "f Netherlands who may prove the same or reject the choice of a consultant and may on the basis of their knowledge of the consultancy sector in Netherlands suggest that this list is extended.

1(1(8) Where the goods arc proposed to be procured on the basis of Formal Open International Bidding, the impor- ter should forward three copies of the tender notices as soon as these are advertised in the Indian Trade Journal or the Indian Export Service Bulletin to the Embassy of the Nether- lands in India, New Delhi under intimation to Ministry of Finance, Department of Economic Affairs, (W.E. TTT Section), New Delhi.

111(9) The term "Firm orders" referred 10 in Section TT

(2) means purchase order pFaced by the Indian licensee on the overseas supplier duly supported by order confirmation by the latter or purchase contract duly signed by both the Indinn importer and the overseas supplier. Orders on Indian Agents of overseas suppliers and/or order confirmation of such Tndian Agents are not acceptable.

TII(IO) The CTF/C&F value of the contract should be expressed in Dutch Guilders in case of contracts concluded with the Dutch suppliers and in the respective currency in case of contracts concluded with the suppliers in eligible source countries,

in (11) The contract must provide for payment on cash basis i.e. on presentation of shipping documents. No credit facility of any kind will be permitted to be availed of by the Tndian importer from the overseas suppliers,

III (12) The amount of Indian Agent's Commission included in the value of the contract should b© specifically 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, there- fore, be.charged to the licence.

HI (13) The purchase order and the supplier's order con-

firmation should "he in English only.

111(14) The following provisions should b" specifically in-

corporated in the contract:

(i) "the contract is subject to the approval of Govern- ment of India (if the value of the contract is Dutch Guilders 50,000 or below) and subject to the appro- val of both the Government of India and the Government of Netherlands (if the value of the contract 'exceed Dutch Guilders 50,000);

(ii) This contract will be governed by the payment procedures laid down under the licensing conditions for the Dutch General Purpose Credit and will become effective after the Government of India's approval to this effect has been received."

(iii) "The goods arc of Dutch origin/manufacture" (in

case of suppliers in Netherlands).

or

"The goods me of— origin/manufacture" (in case of suppliers in eligible source countries).

(iv) For the goods to be imported from Netherlands the suppliers will have to produce to (he Netherlands Investment Bank, a certificate in duplicate issued/ certified by the Netherlands Chamber of Commerce of the district in which the supplier is established lo the effect that the goods are of Netherlands origin. This certificate can be furnished along with the other shipping documents at the time of receiv- ing payment. A specimen of the certificate is at Annex m.

In the case of supplier in eligible source countries the suppliers will have to produce to the N.I.O.,/proof of origin of goods., in accordance with the Rules of Origin appended to the "Guidelines for Procurement of Goods and Services" (Annex I).

111(15) For any customary performance guarantee, where required, the suppliers should be asked to furnish a bank guarantee/warranty.

Section IV—Approval of contract by Government of India 1 NTO.

IV (1) (a) Immediately after the contract is concluded, the importer should furnish 5 photostat or certified copies of the contract/supply orders accompanied by a photostat copy of the Import Licence to the Ministry of Finance, Depart- ment of Foinomic Affairs (WE. TTI Section). In case of con- tracts concluded with suppliers in eligible source countries N ropier of the snme should be furnished.

The importer is also required to furnish the information

as per details in .Annex II.

(b) In case of contracts concluded with Dutch Suppliers, the importer should furnish a bank guarantee from an approv- ed scheduled bank, in the form prescribed (Annex TV) duly adjudicated by the Collector of Stamps. The Bank Guarantee should be for an amount reDresenting the runec equivalent of the amount of contract for which letter of Authority Is sought plus interest and other charges. The rate of con- version shall be at the exchange rate notified by the Depart- ment of Revenue and Banking as prevailing on the date of issue of import licence.

(2) When the supply contract is based on formal open international bidding or fonual selective International bid- ding, the following information should also be furnished :

(i) Name of the publication in which tender notice was

advertised;

(ii) Name of the parties who quoted against the tender

enquiry;

(iii) The reason for selecting a particular offer indicating whether it was the lowest technically suitable bid.

(3) If the contract documents, the request for Issue of leUer of authorisation, the import licence and Bank Guaran- tee are found to be in order, the Ministry of Finance, Department of Economic Affairs, will forward envies of the contract to the Dutch authorities through the Embassy of Tndia at The Hague for approval.

(4) In respect of contracts valued at DO 50,000 or below approval of Dutch authorities is not required. The approval of the Government of Tndia will be communicated to the Indian importers while forwarding the copies of their con- tracts/supply orders to the Dutch Authorities. For con- tracts Of value exceeding DO 50,000, as soon as the approval of the Diltch authorities lo the financing of the contract under Dutch Credit is received, the importer will be informed that their contract has become effective.

Section V—Paiyment to the Suppliers:

(A) Payment to the Suppliers in Netherlands.

VdV \ letter of Authority to the Neih.Tlnnds Investment Bank for Developing Countries, The Hague (in the form at Annex V) authorising payment to trie suppliers against

400/7

shipping documents will be issued and forwarded along with the copies of contract etc, to the Dutch authorities through the Embassy of India tit The Hague.

V (2): The validity of the letter of authority will be determined keeping in view the delivery schedule indicated in the contract. In no case will be letter of authority be made valid beyond the validity of the import licence.

V (3): Since the payments to the suppliers under the credit are generally made by the Dutch Bank against the produc- tion of shipping documents the grace period facility will not be applicab'e lo 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 Hnanec, Department ot Fconomic Affairs, (W.E. Ill Section) for suitable extension of the Letter of Authority well before the expiry period of the Letter, of Authority. Such a re- quest should be accompanied with a photostat copy of (he revalidated Import Licence, if the period of extension sought for is beyond the validity of the original Import Licence and a letter from the bank extending the validity of Bank Guarantee.

V (5): If the request for extension in the period of vali- dity of the Letter of Authority is not received within a period of six months from the validity date of the Letter of Authority, the un-utiliscd balance in the Letter of Autho- rity will be deemed to have been surrendered and the Letter of Authority will stand lapsed automatically.

V ^6): The original negotiable shipping documents will be invariably forwarded by the N.I.O. to the concerned impor- ter's bank in Tndia 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 sup- pliers in Dutch Guilders at the prevailing compo- site rate of exchange to be calculated in the man- ner as prescribed in Chief Controller of Imports & Exports'* Public Notice No, 8-JTC(PN)/76, dated 17th January, 1976 and as may be notified by the Government from time to time through Public Notices of the CCT&E or through Exchange Con- trol Circulars of the Reserve Bank of India:

(ii) interest calculated at the rate of 9 per cent per annum for the fiist 30 days and at 15 per cent for the period in excess of 30 days in terms of Public Notice No. 46-ITC(PN)/76 dated 16th June, 1976 on the amount required to be deposited vide item (i) above, reckoned from the date of actual payment to the supplier by the Netherlands Invest- ment Bank for Developing Countries N.V., The Hague, to the dnte of actuni deposit of the rupee equivalent by the importer in the State Bank of India, Tis Hazari, Delhi or Reserve Bank of India. New Delhi.

V (7): It shall be the responsibility of the Indian bank concerned, to ensure that the amounts due are correctly de- posited into Government Account before the import docu- ments are handed over to the importers, The licensee should also ensure that the amounts due are correctly deposited into Government account before taking delivery of the docu- ments from their bankers,

V (8): The importers should make the requisite rupee de- posit only through Authorised Dealers in foreign exchange and also get the Exchange Control Copy of the Licence en- dorsed by them as required In Public Notice No. I84-TTC (PN)/68 dated the 30th August, 1968. The requisite 'S' Form will be sent by the concerned bank to the Reserve Bank of India, Bombay.

V (9): The moneys specified in Section V(6) should be deposited only with the State Bank of India, Tis Hazari Branch, Delhi, or the Reserve Bank of India, New Delhi for credit to the Central Government Account under the head of account —

"K—Deposits and advances-—Deposit not bearing interest —-843—Civil deposits—Deposits for purchases etc, abroad—Purchases etc. under Dutch General Pur- rose Credit 1978-79".

V (10): The advice of the 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 Building, Parliament Street, New Delhi by enclosing original receipted treasury challan in the proforma prescrib- ed under Public Notice No. 74-ITC(PNJ/74 dated 31st May, 1974 No. 103-ITC(PN)/76 dated 12-10-1976. The informa- tion in regard to letter of Authority No, amount of foreign currency for which rupee deposit is made, date of payment to the Dutch supplier, amount of interest and period foi which it is calculated should invariably be indicated in the challun form.

REIMBURSEMENT PROCEDURE

V (11): In case of import licences where the value is below Rs. 1 lakh, the importer will have the option to adopt the Re-imburscment Procedure provided no payments are requir- ed to be withheld for performance etc. Under this system tho importers will not be required to furnish the Bank Guarantee but their contract will have to indicate that the mode of payment will be by re-imbursement system. The importer will have to open a Letter of Credit on receipt of the approval of their contract by the Government of India. For this purpose a letter of Authority (Annex VI) to the importer's Bank, as indicated by the importer, authorising opening a Lettei of Credit on the suppliers' bank in Nether- lands will be issued by the Ministry of Finance. Depart- ment of Economic Affairs (W.E. Ill Section). Payments against the Letter of Credit will be made by the importer on the strength of the Exchange Control Copy of the Import Licence. Normally all shipments/payments to the suppliers should be completed within a period of 20 months from the date of issue of this said Letter of Authority. In case the shipments/payments to the suppliers are not likely to be completed within the period of twenty months, the Importer should invariably approach the Ministry of Finance, Depart- ment of Economic Affairs, W.E. Ill Section at least a month before the expiry of this stipulated period for the extension of the time limit for Completing the shipments/payments to the Suppliers, This request should be accompanied with a photostat copy of the revalidated Import Licence covering the period of extension sought for. If such a request is not received before the stipulated period, the un-utilized balances of their contract will be deemed as having been surrendered. The importer will furnish to tho Controller of Aid Accounts & Audit, Department of Economic Affairs, Parliament Street, New Dclhi-1, within 15 days of the shipment of goods a certificate from his Bank of payment made to the supplier and also two copies of the invoice bearing a certificate from the Dutch supplier to the effect that "he received a sum

of Dutch Guilders amounting to 100 per cent of the invoice value or shipment of goods." He will also en- sure thai two copies of (he certificate in regard to urinin of Goods referred to in Section III (14)(iv) are furnished by the supplier to the Controller of Aid Accounts and Audit within the stipulated period of 15 days of the shipment of goods. Any omission on the part of the importers to send the re-inibursement documents promptly to the Department of Economic Affairs will be viewed seriously and the C.C.I.&.E. may be asked to suspend all import licences in the name of the importer. In case the importer persists in his default his case may be recommended to the C.C.I.&.E. for being blacklisted. The importer will in addition be liable to penalties/punishment under the law governing Import Control etc. In case the importer decides to adopt the re- imbursement procedure, he should furnish 9 photostat/certi- fied copies of the contract while seeking approval of his contract by Ministry of Finance.

B. Payment to the suppliers in Eligible Source Countries. V (12) : A Letter of Authority (hi form at Annex VI) to the Importers' Bank, as indicated by the Importer fn his application authorising opening of a Letter of Credit on the suppliers' bank in the eligible source country in favour of the supplier will be issued by the Ministry of Finance, Department of Economic Affairs (W.E. Til Section). Copies of the contract alonR with a copy of the said Letter of Authority will be forwarded to the Dutch authorities also through the Embassy of India at The Hague.

V (13);- On receipt of the Letter of Authority mentioned in the preceding paragraphs, the Importer's Bank will open a Letter of Credit in favour of the supplier through his banker within a period of 30 days from the date of Iss,ue of the sail' T etter of Authority and against a valid import licence. An intimation to this effect shall be forwarded to the Controller of Aid Accounts "ft Audit, UCO Bank Build- ing, Parliament Street, New Delhi.

V (14): After the payment to the supplier is made the suppliers bank shall forward to the Controller of AM Accounts & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bunk Building, Parliament Street, New Demi, one set of non-negotiable shipping documents and two copies of the invoice with a certificate duly en- dorsed thereon by the supplier that the payment has been received by the latter.

V(15): The supplier's bank, will also obtain from sup- plier and furnish to the Controller of Aid Accounts & Audit Ministry of Finance, Department of Economic Affairs, UCO Bank Building, Parliament Street, New Delhi a certificate or proof (in duplicate) in regard to the origin of the goods being in accordance with the Rules of origin appended to the Guidelines for Procurement of Goods and Services.

V (16): The importer should forward to the Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, Parliament Street, New Delhi, a certificate of remittance made by them to the supplier against the invoice/shipment of goods excluding bank charges, if any. This certificate should be obtained from the bank through which the Letter of Credit is opened. The importer should also ensure that one set of non-negotiable shipping documents, two copies of invoice with a certificate duly endorsed thereon in regard to receipt of payment by supplier and certificate of origin referred in Sections V (14) and V(15) are forwarded to Ministry of Finance, Depart- ment of Fconomic Affairs, Controller of Aid Accounts & Audit within 15 days of the shipment of goods.

V (17): Payment against the Letter of Credit wfll be made by the Importer on the strength of the Exchange Control Copy of the Import Licence.

V(18): Normally all shipments/payments to the supplier should be completed within a period of 20 months from the date of issue of the Letter of Authority referred to above. In case tho shipments/payments to the suppliers are not likely to be completed within the period of 20 months, the Importer should invariably approach the Ministry of Finance, Department of Economic Affairs (W.E. Ill Section) at least a month before the expiry of this limit for comr pleting the shipments/payments to the Suppliers. This re- quest should be accompanied with a photostat copy of the revalidated Import Licence covering the period of extension sought for. Tt such a request Is not received before the stipulated period, the un-utilised balances of the contract will be deemed as having been surrendered.

V(]91: Any omission on the part of the importer to send 1he reimbursement documents promptly to the Depart- ment of Economic Affairs will be viewed seriously and the C.C.T.&.E. may be asked to suspend all import licences issued in the favour of the importer. Tn case the importer persists in his default, his case may be recommended to the C.C.I.&.E. for being black listed. The importer will In addi- tion be liable to penalties/punishments under the law govern- ing Import Control etc.

V(20) : On receipt of the reimbursement docitmcnts, Con- IIOHCT of Aid Accounts and Audit, in the Ministry of Finance will make a request to the Netherlands Investment BrinV for reimbursement of the amount naid to the supplier >n the eligible source countries. The Netherlands Investment Bank will reimburse the equivalent amount In Netherlands guilders at the rate of exchange prevailing in the Nether- lands op the date of such reimbursement.

Section VI: Miscellaneous :

VI (1): The importer should furnish a quarterly report, as In Annex VH, showing the utilisation status of the licence to the Ministry of Finance, Department of Economic Affairs (W.E. Ill Section).

(2) It should be understood that the Government of India will not undertake any responsibility for dispute, if any, that may arise between the licensee and the supplier. The con- ditions to be fulfilled by the supplier before payment could be effected to him must be clearly spelt out by the importer in Annex IT, If necessary a provision dealing with settle- ment of disputes mav be included in the contract itself.

(3) The licensee shall promptly comply with any direc- tions, instructions, or orders issued by the Government of India from time to time regarding any and all matters arising from or pertaining to import licence and for meeting all obligations under Dutch General Purpose Credit.

(4) Any breach/violation of the conditions set forth in the above clauses wll] result In appropriate action under the Imports and Exports (Control) Act.

ANNEXUREI

Guideline* for Pioeurement of good und services under bilate- ral development loans by the Netherlands.

A, General

1. 'these guidelines govern piocuremcnt of goods and services under bilaUy-al loans which form part of the official Nether- ands Development Aid Programme. These loans arc untied in respect of developing countries. A \ht of eligible source countries is attached as Appendix A. Tbe recipient cOutitrv is included in this list. The Netherlands Government may agree, or un individual basis, to limiled supplies of goods and services from non^eligible source countries to supplement the supplies from eligible source countries, with transporta- tion and insurance costs included.

2. The Netherlands Government must be satisfied that the proceed^ from the loans are to be used with due care being given to economy, efficiency, fairness in international compe- tition and non-discrimination among el'gible source countries, in accordance with the procurement procedures Net out in these guidelines,

3. Except in the cases mentioned in paragraphs 16 and 17, no practices :>hall be allowed, which could lead to, or result in a particular supplier or the .suppliers of a particular coun- try being favoured,

4. The rules of origin and control Uj be observed by the borrower in the procurement of goods and services, are atta- ched to these guidelines as Appendix 6.

5. Where the borruvcr does not effect direct procurement he shull make such arrangements as are necessary to ensure that the purchaser complies with these guidelines,

6. (1) The borower shall obtain goods and services through formal open international bidding except in the following cases :

(a) where the Netherlands is the traditional or the

only source for impoits ;

Cb) where the value of imports is less than Dfl. 1.25

million: or

(c) where such a procedure is inapplicable or inappro- priate. In this case, agreement between the Nether- lands Government and the borrower on another more expedient procedure must fc>e reached before suppliers are invited to submit their bids, such, agree- ment to be reached on the basis of all relevant in- formation to be supplied by the borrower through the Royal Netherlands Embassy.

t>. (2) Where in the light of the existing relationship sub- sisting between the Indian imporfers and the foreign suppliers and the scope of supplies available and identified in the Netherlands and/or ihe developing countries, tlio borro\, er considers that imports should be effected from the Nether- lands only, the borrower shall have the option to confine bids to the Netherlands only or obtain bids from the Nether- lands as well as the eligible source countries. In such cases article 30 of the Guidelines along with articles 31—33 or article 30 along with articles 34-38 are applicable.

7. These guidelines, together with the Rules of Origin and the list of eligible source countries, are subject to amend- ment by the Netherlands Government.

B Procedures for formal Open Iiitornaiional Hiddlnf,

S. At trie time in\i!"'ions to bid arc issued, the borrower for the purchaser on the borrower's behalf) shall advertise the bidding in at least one of the following two publications ;

400/9

Indian Trade Journal Indian Export Service Bulletin

the importer shall send three copies of lhe tender notices •as iidvcr ised in the Indian Trude Journal or the Indian Ex- poit Service Bulletin, to the Embassy of the Netherlands in India.

9, In order to foster widespread competition, individual contracts for which bids are invited should whenever feasi- ble, be of a size large enough to attract bids on an interna- tional basis, On the other hand, if it is possible from a technical and administrative point of view to divide a pro- ject into contracts ot a specialized nature and such division is likely to be advantageous to the borrower and/or to allow broader international competitive bidding the project should be divided. Single contracts for engineering, equip- ment and construction work (commonly known as "Turn- key contracts") may be desirable if they oiler overall advan- tages to the borrower country within the technical and eco- nomic facilities available.

10, Formal prequalincation may be desirable, in particulur foj civil works contracts, If prequalificution is used, it shall be based entiicly upon ability to perform satisfactorily, tak- ing into account (i) the firms previous experience in similar tvpes of work, (ii) its potential with regard to personnel, equipment and plant, and (iii) its financial position and integrity. Advertisement of the prequalification procedure shall bo carried out in accordance with the procedure ilescrii bed in paragraph 8. Condensed specifications shall bo made available to contractors desiring to be considered for pre- quuliiication. When prequaUfication is applied, all firms which fulfil the condi'ions for prequalification .shall be per- mitted to bid.

11. Bidding documents shall be prepared m one of the languages ctij omarily used in international transactions and shall unless prohibited by luvv specify that the text of the documents in that language is governing.

12. Specifications shall set forth as clearly and precisely aa possible the work to be carried out, the goods and services to be supplied and the place of delivery of installation. Draw- ings shall be consistent wi'h the ttxt of the specifications; where they arc not, the text shall govern. The specification* shall state the principles of evaluations and comparison of bids, which will be taken into account when evaluations are made and bids are compared. The specifications shall be worded in such a way as to permit and encourage free and full interna'ional competition.

Any additional information, clarification yr correction of errors und alterations of specifications and invitations to bid shall be communicated promptly to those who requested the original bidding documents.

13. If national standards are cited to which equipment or material must comply, the specifications shall stale that goods meeting other internationality accepted standards, which de- mand an equal or better quality than the standards, men- tioned, uill also be accepted.

14. Specifications shall be bas

1J. Invitations to bid shall list the eligible source countries

and shall set out tho rules of origin applicable.

16- Quota ions shall be examined on the basis of strict equality of conditions among suppliers from eligible source countries (including the evaluation of quotations for material and equipment at prices free of customs tariffs and other duties and taxes of like effect). The borrower country, however, is authorized, in the evaluation and comparison of bids to supply goods and services, excluding transport costs, to extend a margin of preference to local goods and services and to products from other eligible source countries which are members of the same regional economic group, consis- tent wj(h GATT, or which intend to establish such a group, over goods and services originating In other eligible source

countries. This margin of preference shall not exceed 15 per cent on the CIF price of the lowest evaluated foreign bid .or The existing level of customs duties of the bidder's country, whichever is the lowest.

17. In special cases, the borowcr may, after mutual consul- tation between the Netherlands Government and the borrow- ing country, extend a. limited margin of preference to Local and regional manufacturers, consistent with GATT, in addi- tion to the margin of preference, mentioned in paragraph 16. In assessing the level of preference, due attention should be given to facfors like the degree of national or regional owner- ship und management and the registration in the borrower country or the regional economic group of these manufactur- ing firms,

18. Bidding documents shall set out any preferences agreed upon, and specify the manner in which they will be applied in the evaluation and comparison of bids.

iy. Bidders shall be given adequate time in which lo sub-

mit their bids.

20. The date, hour and place for la'est receipt of bids and for the bid opening shall be announced in the invitations to bid and all bids shall be opened publicly at the stipulated time. Bids received after this time shall be returned un- opened. The name of the bidder and total amount of each bid and of any alternative bids if they have been requested or permitted shall be read aloud and recorded,

21. No bidder shall be permitted to alter his bid after the bids have been opened. Only clarifications not changing the substance of the bid muy be accepted. The borrower may ask uny bidder for a clarification of his bid but shall not ask any bidder to change the substance or price of his bid.

22. Except as may be required by law, no information re- lating to the examination, clarification and evaluation of bids and recommendations concerning awards shall be communi- cated after the public opening of bids to any persons not officially concerned with these procedures on the side of either the borrower or the Netherlands Government before the announcement of the award of a contract to the success- ful bidder.

23. After the opening of the bids, the purchaser shall examine the bids in order to ascertain whether material errora in computation have been made in the bids, whether the bids are fully responsive to Lhe requirements of the bidding documents, whether the required guarantees and sureties have been provided, whether documents have been properly signed and whether the bids are otherwise generally in order. If a bid docs not substantially conform to the specifications or contains inadmissible reservations or is not otherwise subs- tantially responsive to the bidding documents, it shall be rejected. A technical analysis together with a detailed assess- ment in monetary terms shall then be niade to evaluate each responsive bid and to enable bids to be compared.

24. Invitations to bid may state that the purchaser reser- ves the right to reject all bids when none are responsive to the intent ot the specifications, when there is evidence of lack of competition, or when the low bids exceed the cost pre- viously estimated by an amount sufficient to justify such action. If all bids are rejected, the borrower may, after consultation with the Netherlands Government, enter into negotiations with one or more of the lowest bidders to as- certain lhe causes for such ©vents and the reasons for the difference between the low bid and the cost estimates. Nego- tiated contracts reflecting changes in the specifications, lead- ing to economies in the estimated cost of the project, may be acceptable, provided the changes do not substantially alter the nature of the project. Where changes are substantial, rebidding may be apptopriate, This shall at all limes be approved by tbc Netherlands Government,

25. Evaluations of bids shall be consistent with the terms and conditions set forth in the bidding documents and in any modifications thereto prior to the closing date for submission of bir!n. For the purpose of determining the lowest evalua- ted bid, con.inemal factors other than prk", i,uch as the time of completion of construction or other work, the efficiency and reliability of the equipment, the time of its delivei-y and the availability of service and spare parts, shall also be taken into consideration and shall, to the larger possible extent, be expressed in monetary terms. The curren- cies in which bid prices wpuld have to be paid shall be valued, for bid comparison purposes only, on the basis of rates of exchange published by an official source and applicable to similar transactions, at the closing date of the bidding.

26. The award oL A contract shall be made to the bidder whose bid has been determined to be the lowest evaluated bid, taking into account the factors mentioned in the preceding paragraphs.

27. The Netherlands Government shall, upon request, be given adequate opportunity to present its comments and recommendations on all phases of procurement. After the award of contract, the Netherlands Government sball be provided with, (copies of) all relevant documents and other information necessary for the evaluation of the use of the loan.

C. Procurement Procedures other than Formal Open Inter-

national Bidding.

2fi. In the cases, mentioned in paragraphs 29 and 30, the procurement formulae of paragraphs 31—r3? may be applied in accordance with paragraph 6.

2lJ. Standardization

Where the purchaser has convincing reason., for maintaining

a rcnsonable standardization of his equipment.

30. Limited Number of Qualified Suppliers :

In cases where, because of the nature of the procurement in question, the number of qualified suppliers is limited and the market knowledge of the purchaser is such that he can be expected t6 know the qualified suppliers.

Formal vSelcctive International Bidding

31. Under formal selective international bidding the pur- chaser is authorized to incite bids from only a limited num- ber of fpre) qualified suppliers known to be able to meet the special requirements of the procurement in question.

Tn such cases the borower should ascertain that no potential qualified suppliers have been excluded. The Ministry of Finance (Department of Economic Affairs), Government of India shall provide all necessary information as and when asked for by potential suppliers of eligible source countries to enable them to participate on an equitable basis,

32. The suppliers are to be selected exclusively on the basis of their qualifications and tire, as far as possible, to be chosen from several eligible source countries including the Netherlands.

33. All provisions of formal international bidding, other

thnn those of paragraph 8, are to be fully applied.

Informal International Competitive Procurement

34. 11" procurement is not through the formal competitive bidding procedures, it should be made in accordance with good commercial practice and without discrimination among eligi- ble source countries,

35. The importer should give wide and timely publicity to the intended use of informal international competitive procurement. The Ministry of Finance, (Department ot Economic Allans). Government of India shall provide all information necessary to permit suppliers of eligible source countries to participate on an equitable basis as and when such information is asked for.

36. The time allowed for the preparation of quotations and offers shall be governed by the nature of the contracts involved. Both lead time and delivery schedules shall be long enough to allow meaningful international competition.

37. The Netherlands Government may require the pur- chaser in particular cases to supply information on the pur- chases made, including full details concerning how quota- tions were obtained, the suppliers who are Involved and the quotations received.

38. The suidfHnei for formal open international bidding should be applied to the fullest possible extent as appro- priate.

"Single Supplier.

39. The cuicha-;cr ii pe-rrnittH to pin'charr directlv lrom

a single supplier in one of the following cases .

(i) procurement by a commercial importci involves n icgislered biand name commodity which is for resale by the importer, lor which the importer is a regularly authorized distributor or dealer of the supplier and for which the supplier is the sole dis- tributor or manufacturer ;

(ii) procurement by a commercial importer involves a commodity which is procured for manufacture, pro- cessing or assembly and resale of. the end product for which the importer is a regularly authorized dis- tributor or dealer of Ihe supplier and for which the supplier is the manufacturer ;

(iii) in order Lo assure interchangeability of p^rls or be- cause of special design or technical requirements [he procurement can only be made from one source;

(iv) the purchaser is a manufacturer whose equipment and raw material formulate are designed for best utili- zation with a specific type of raw material which can only rw obtained from one source ;

(v) the purchaser wishes to extend or repeat a procure- ment originally made under formal international bidding provided thru the complementary procure- ment is small in relation to the original procurement takes place on a few occasions only and Vwfilc the construction work related to the- origins)] pro- curement is still under way or shortly after the original procurement is made ;

(vi) the value of a transac ion is less than Dfl. 1.25

million.

D. Guidelines for the Use of Consultants

40. Consultant firms employed should be independent in the sense that their advice and the designs, specifications and bid documents prepared by them should be free of national, commercial or industrial bias, and can be complied with on a competitive basis. Tn considering local consultant firms, due attention should be given to factors like the degree of national ownership, management and personnel and regis- tration.

41. Formal competitive bidding procedures arc not re- quired for the selection of consultant firms. However, in (he process of selection, borrowers should consider a reason- able number of prospective firms, which can be expected to render competent and independent services from several elipj- blo source countries. This list shall be based on prequali- fication, taking into account :

fi) the firm's previous experience in similar fypes of

work ;

(ii) its potential with regard to personnel, equipment

and plant ; and

(iil) its financial position and integrity.

It is desirable that, before invitations for proposals are sent out. Ihe borrower submits the list of prospective firms to tlhe Netherlands Government. The Netherlands Govern- nicnt reserves the. right to reject the choice of a consultant, and may, further more, on the basis of her knowledge of the consultancy sector in the Netherlands, suggest that thia Hst is extended.

E. Grievances

42. The borrower "hall make provision for the henrina and investigate n of complaints arising in connection with the invitations to bid, the submission of bids and the award of contracts.

4? Tn the case of purchase-, conducted under formal in-

ternational bidding procedures complaints of anv substance regarding restrictive commodity specification or other restric- tive terms of the invitation, made prior to the bid clos-np date, shall be resolved Ivfo'- Ihi; opening of bids. If'nercs- sary and onlv after consultation with the Netherlands Govern- ment, the bid closing date may be postponed for an appro- priate period.

400/11

•^ Wbxn a complaint has been made by one .0t the MipjJierj, L-ancerned, the documentation relating to the subs- tdiicg of (he complain', and action taken thereon •jhall be available toi examination bv the Netherlands Government, .LS well as by the boriowcr.

APPENDIX-A

l.i-,; of eligible source countries for united bilateral loans

to developing countries,

A. Netherlands

B. Africa

North of Sahara

Algeria

Libyan Arab Rep.

Morocco

Tunisia

Egypt

South of Shara

Botswana Burundi Cameroon L ape Verde Islands Central African Rep. Chad Comoro Islands Congo (People's Rep. of) Zaire Rep. Dahomey Ethiopia Gabon Gambia Ghana Guinea Guinea Bissau Ivory Coast Kenya Lesotho Liberia Malagasy Republic Malawi Mali Mauritania Mauritius Niger Negeria Reunion Rwanda Senegal Seychelles Sien a Leone Somalia Teir. Afms and Lisas St. Helena and dependencies •Sudan Swaziland Tanzania Togo Upnndn Upper Volta Zambia

America

North nnd Central

Bahamas Barbados Barbados Bermuda Costa Rica Cuba Dominican Republic El Salvador Guadeloupe Guatemala

Pacific Islands (US) Papua New Guinea "I'lomen Wdndh longa Wullis ;ind Futuna Western Samoa

Furope

Turkey Portugal

Haiti Honduras Honduras (Bi i i.imakii Martinique Mexico Netherlands Antilles Nicaragua Panama St. Pierre et Miqudou Trinidad ct Tobago West Indies (Br.)

APPENDIX 'B'

South

Rules of Origin

1. The subject items of these rules of origin shall be

goods and services produced in the eligible source countries.

2. In the case of goods assessment of the Netherlands ori- gin shall be subject to the legislation in this field which prevails in the European Community.

3. Proof of origin of the goods mentioned in paragraph 2 shall he furnished by means of u certificate of origin, issu- ed by a Chamber of Commerce in the Netherlands.

Argentina Bolivia Brazil Chile Colombia Ecuador Falkland Tslandi Guvana Guiana (Fr.) Paraguay Peru Surinam Uruguay Venezuela

4. In the case of goods, assessment of origin in develop- ing countries shall bo subject to the rules of origin which are established by the European Community in the frame- work of the General System of Preferences.

Asia

5. Proof of origin of the goods mentioned in paragraph 4 shall be furnished by means of Certificate of Origin, Form A (as in use by the General System of Preferences), issued by an official authority in the developing country.

6. In the case of services (cf. paragraph 1 of the Guide- lines), origin shall be assessed, on an ad hoc basis, in mutual consultation between the Netherlands Government and the borrower country.

7. In cases where the Rules of Origin cause substantial problems of serious economic damage to the*¹ borrower country (e. g. an over-tight restriction of the number of potential suppliers), deviations from these rules may be permitted, but only after mutual consultation between the Netherlands Government and the borrower country.

Middle East Bahrein Iran Iraq Israel Jordan Kuwait Lebanon Oman Qatar Saudi Arabia Yemen (People's DR) Syrian (Arab. Rep.) Unit. Arab Emirate? Yemen (Arab. Rep.)

ANNEXURE It South

(a) Name and address of the Indian importer and/or

Project authority where necessary.

(b) Name and address of the supplier. In case of suppliers in Eligible Source Countries, the following information should also be furnished :—

(i) Nationality.

Afghanistan Bangladesh Bhutan Burma India Maldives Nepal Pakistan Sri I.nnku

(ii) Percentage of the shares held by national of the

Far East

eligible source countries.

(c) (i) No. and date of Tmport I-ic"ncc

(ii) Value.

(d) (i) Name and address of the Supplier's Bank in the

Netherlands/Eligible Source Country.

*(ii) The Importers' Bank in Tndifl (which will be the

bank that hm furnished the Bank Guarantee).

'•'(m) The importers' Bank in Tndia which will be res- ponsible to make rupee deposits in Government account before releasing shipping documents to the importer.

Brunei Khmer Rep. Hong Kong Indonesia Korea (Rep. of) Korea (People's Dem. Rep, of) Laos Macao Malaysia Philippine? Singapore Thailand Timor Vietnam (Rep. of) Vietnam (Dem. Rep. of)

(e) Value of the contract order in Dutch Guilders or the

currency of the Fllglble Source Country,

Oceania

ff) Method erf Procurement whether it is based on direct purchase or Formal Onen International Bidding or Selective Formal International Bidding, in which case it should be

•For Private Sector. **For Public Sector.

Fiji Gilbert & Fllk-e Mnnds French Polynesia New Caiedenica New Hebrides (Br. & Fr.)

^idicate

(g) Stwji description of goods to be imported.

(h) Origin of Goods—percentage of imported components

from nrtn-cligible source countries, i£ any.

(i) F>peeled date of completion of deliveries.

(j) Payment terms and probable dates on which payments

under tlu- contract will fall due,

(k) Di'l.tiled list of shipping documents, like Bill of Lading, tnvoices, Certificate of Origin, etc., which the NctherlaivK Investment bank for Developing Countries 01 the Suppliers Bank in Kligiblc Source Country should de- mand from the suppliers before making payment, together with the number of copies of each do.ument required.

(1) Ind'.jr Agent's commision, if any, included in the contract (exact amount to bo indicated) which will have to be dnJioeil from the contract value while issuing :\ Lcttei ut Authemty, Such commission will be pajable by Ihe Im- porters direct to the Agents in rupees.

fm) Value of which the Letter of Authority is requested.

(n) Number, date und value of Bank Guarantee, Indicating

the period upto which it is valid.

(o) SjKxial instructions, if any.

400/13

Name and address of supplier

Date

Certified

Netherlands Chamber of Commerce District

ANNEXURE IV

GUARANTEE BOND

(To be furnished by Banks under the proccd'i.e for th-;

import of goods under the Dutch General Purpose Credit).

To

The President ol* India.

ANNEXURE 111

DUTCH CREDIT

CONTRACT CERTIF1CATK

Particulars of contract

IndkiTi Import Licence No

1. Numbti and Date ol the Contract

2. De-scnrriion of goods or services to be supplied to the

purchaser

(If A number of items are to be supplied, a detailed list

should be appended to this certificate).

3. Total contract price payable by purchaser (state CIF,

C&F OT FOB) Dfl

ff good? .ire to be supplied the following section must be

completed

4. Hstlr/!,.iei1 per cent of the FOB value of the goods not oiiginatinp in the Netherlands but purchased by the suppHei direct fro', abroad, i.e. per cent of imported raw material or cflmpt'fenK used in manufacture.

(al pei tent FOB value

(b) Description of items and brief specification

5. If Sri vices arc to be supplied the following section

should ;iko be completed.

6. Statt the estimated value of any work to be done or services performed In the purchasers country by (a) Your firm (site engineers charges, etc.) fb) T.ocni supplier

7. Qualifying, remarks as necessary in respect of paragraphs

4 & 5 above

8. 1 hereby dcclnre that I am employed in the Netherlands by the Supplier named below and have the authority to sign this certificate, [ hereby undertake that in performance of the contract no goods or services which are not of Nether- lands origin will be supplied by the supplier other than those specified "TJ paragraph') 4 & 5 above.

- •

i

Signed.

Position hold

] 290 G1/7S—6

In consideration of the President of India (hereinafter called 'the Government') having agreed to arrange for pay- ment in Dutch Guilders for the import of _ __ — •—by ———(hereinafter called the Importers) against the import licence number — ~— — dated issued under the terms anil con- ditions of tho Dutch General Purpose Credit and in pursuant of Import in favour of the Importer against the above-men- tioned agreement, we— •- -——— (Bjnk) at the re- quest of the importer hereby undertake to arrange to deposit the amounts of the disbursements made by the Netherlands Investmcntbank for Developing Countries. The Hajjuo, nomi- nated by the importer converted at the prevailing composite rate of exchange calculated as per Public Notices issued by the Government in the matter from time to time within ten days of the receipt of advice of payments for credit to the Government account, in the manner and against the appro- priate Head of Account as indicated bv Government of India under the said Credit together with interest thereon at the rate of 9 per cent per annum for the first thirty days und at the rate of 15 per cent per annum for the period in excess thereof (as prescribed in Public Notice No. 4fi-ITC (PN)/76, dated 16-6-1976) reckoned from the date of payment to the Dutch supplier to the date of payment of rupee equivalent for Credit to the Government Account. The negotiable set of import documents received from the Netherlands Irrvcst- mentbank for Developing Countries. The HaffUe will be re- leased to the importer only after the rupee deposits contemplat- ed nbove have been made.

2 We the- •— (Bank) also undertake to indemni- fy and keep indemnified the Government ngainst any default in payment by the Importer of any sum that may l>_- due and payable from time to time by the Importer to the Govern- ment at such place and in such manner as the Government may from time to time direct such sums not exceeding Rs.— or any pnrt thereof fur Ihf time be- ing due and payable by the Importer, together with interest thereon at the rate of 9 p^y cent per annum for The first thirty days and at the rale of 15 per cent per annum for the period in excess thereof (vk'e Public Notice ibid) reckoned from the date of payment to the Dutch Supplier to the dn'e of actual deposit of the rupee equivalent into Government ac- count. The decision of the Government as to any default in tho said puyment by the importer, or on his part jnd in regard to the amount payable to the Government by us —~ -—- (Bank), shall be final and binding on us————— _— (Bank).

3. We—• —(Bank) further agree that in case of increase in the value of import or increase in the value of unfulfilled deliveries under the contract us a result of change in the composite rate of exchange mentioned in para 1 above, the amount of this guarantee bond will be adjusted as on the date when the change takes place *n 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 per- formance of the said agreement /contract and that it shall continue to be enforceable til) all the dues to the Govern- ment under or by virtue of this guaranty have been fully paid and its claims satisfied or discharged.

5, The guarantee herein contained shall not be affected by

change in the constitution of the Importer or the (Bunk), and the Government shall have the fullest liberty without affecting the guarantee to postpone for any time and from time to time any of the powers cxercisable by it against the importer and the ——-(Bank), shall not be released from its liability under this guarantee by any exercise by the Government of the liberty with reference to the matters aforesaid or by reason of time being given to the Importer or any other forbearance, act or omission on the part of the Government or any indulgence by the Government to the Importer or by any other matter or thing whatsoever which under the law relating to sureties shall, but for this provi- sion, have the effect of so releasing the— —iBank) from its such liability.

6. We- -(Bank), lastly undertake not to revoke 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 17-1-1976 and such other Public Notices that may be issued from time to time hereafter.

8. Our liability under this guarantee is restricted Ut Rs. — (plus interest and other charges, if any, not expected to exceed one pci cent of the guarantee amount) and this guarantee shall remain In force till the day* of —(month), 19 ). Unless claims under this guarantee are made in writing 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 guarantee shall be fqrefeited and we shall be relieved and discharged from all liability thereunder.

(Bank).

Date the • day of For Accepted for and on behalf of the President of India by Shrl •

(Name & designation)

Signature—

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

Note,—The value of the stamped paper on which this guaran- tee Is to be executed is to be adjudicated by the Collector of Stamps under Sections 31 of the Indian Stamps Act.

ANNEXURE V

N F. 14 ( )-WE.III

GOVERNMENT OF INDIA (BHARAT SARKAR)

MINISTRY OF FINANCE (VITTA MANTRALAYA)

(Department of Economic Affaln)

(ArtMt Karya VfchafO

New Delhi

To

The Netherlands Investmentbank for Developing Coun- tries, The Hague, Netherlands.

Agreement for the loan of million Netherlands

Guilders—Request for direct payment.

Dear Sirs,

LETTER OF AUTHORITY NO.

With reference to our application of today's date as to

the financing of the transaction between M/"

&

India and M|s.

, Holland, out of the loan made by your Bank to India, we hereby request and authorise you unconditionally and irrevocably to pi.y in accordance will the terms of conditions of the above mentioned contract to" the supplier in Holland the amount of N. fl

(Dutch Guilders

)

It is requested that the invoices, shipping and other docu- ments presented by the Dutch supplier be despatched direct to the

(Importer's Banker),

The suppliers will also be required to furnish to the Netherlands Investmentbank for Devloping Countries a certificate in duplicate issued /certified by the Netherlands Chamber of Commerce of the district in which the exporter is established regarding the Netherlands origin of the goods covered under the Letter of Authority.

Kindly forward the debt advice to the Government of India, Ministiy of Finance, Department of Economic Affairs, Economic Aid (Accounts) Branch. UCO Bank Building, Par- liament Street. New Delhi. This letter of Authority will remain valid upto ,

hor ihe President of India,

Copy to

(Importer's Bank).

They should release the negotiable set of documents to the importer only after ensuring that the importer has depo- sited :—

(i) the rupee equivalent of the payments to the sup- pliers in Dutch Guilders at the prevailing compo- site rate of exchange to be calculated in the man- ner as prescribed in Chief Controller of Imports & Export's Public Notice No. 8-ITC(PN)/76, dated 17-1-1976 and as may be notified by the Govern- ment from time to time through Public Notices of the C.C.I.&.E, or through Exchange Control Cir- culars of the Reserve Bank of India ;

(ii) interest calculated at the rate of 9 per cent per an- num for the first 30 days and at 15 per cent for the period in excess of 30 days in terms of Public Notice No. 46-ITC(PN)/76 dated 16-6-1976 on the amount required to be deposited vide item d) above, reckoned from the date of actual payment to the supplier by the Netherlands Investment Bank for Developing Countries N.V., The Hague, to the date of actual deposit of the rupee equivalent by the im- porter in the State Bank of India, Tis Hazarl, Delhi or Reserve Bank of India, New Delhi.

ANNEXURE—VI

No. F. 14( )-WE.UJ|/

GOVERNMENT OF INDIA (BHARAT SARKAR)

MINISTRY OF FINANCE (VTITA MANTRALAYA)

(Department of Economic Attain (AjriMk Karya VBbhag)

New Delhi, the

Subject:—Contract entered under General Purpose Dutch

Credit—Reimbursement.

Dear Sirs,

Messrs

(Indian importer)

have entered into a contract with Messrs,

(Foreign supplier)

for the supply of

for the amount of (

A.

dated

) C.T.F. C. & F. against Licence No. issued under

the Dutch General Purpose Credit for the value of Rs

(Rupees

).

A copy of the contract is enclosed.

2. Out of the above amount of an amount of is to be paid as Indian Agents' Commission in Indian currency. The sum to be paid to the supplier in foreign currency which will be financed Initially out of the free foreign exchange resources, to be reimbursed later out of the Dutch General Purpose Credit, therefore, amounts to

3, You are authorised to open a letter of credit in favour

of Messrs,

through their bankers, viz.

within a period of thirty days from date of this letter and against a valid Import Licence, under intimation to the Con- troller of Aid Accounts & Audit, UCO Bank Building, Parlia- ment Street, New Delhi.

4. In terms of para 10 Section VII of the Exchange Con- trol Manual, you are required to ensure that the date of the expiry of the Letter of Credit is not later than forty-five (45) days after the final date for shipment as stated in the relative import licence.

5. The letter of credit will also provide that Messrs

(foreign banker)

will forward directly to the Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, Parliament Street, New Delhi, one set of non-negotiable shipping documents and two copies of the invoice with a certificate duly endorsed thereon by the Dutch Supplier that the payment has been received by the latter.

They will also obtain from the suppliers and furnish to the Controller of Aid Accounts & Audit a certificate In dupli- cate issued (certified by the Netherlands Chamber of Com- merce of the district in which the exporter is established re- •L'mllngf (Tie Netherlands origin of the goods covered undei the Letter of Credit |* issued by the appropriate competent authority in rejard to the origin of the goods covered under the Letter of Credit.

6. You are also required to forward to the Controller of Aid Accounts and Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, Parliament Street, N©w Ddihl, a certificate of remittance made by you to M|".

against the lnvoice|shipment of goods, excluding Bank char- ges, if any.

7. Receipt of this letter may please be acknowledged.

•To be deleted if not

applicable.

Yours faithfully.

400/ )5

Copy with a copy of the contract forwarded to :—

Reserve Bank of India, Exchange Control Department, Bombay-1.

2. Copy ulso forwarded for information to :—

(0

(Indian importer)

It may be ensured that M|s

(foreign banker)

forward one set of shipping and other documents (non-nego- tiable) alongwith payment advice, two copies of the invoice with a certificate duly endorsed thereon by the supplier that the payment has been received by him, and two copies of certificate in regard to origin of goods to the Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building Parliament Street, New Delhi.

(ii) M|s.

(foreign bank)

Tt is requested that on each payment, one set of shipping and other documents (non-negotiable) alongwith payment advice, two copies of the invoice with a certificate duly endor- sed thereon by the supplier that the payment has been re- ceived by him and two copies of certificate in regard to origin of goods may be forwarded direct to the Controller of Aid Accounts and Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, Parliament Street, New Delhi,

(ill) Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Build- ing, Parliament Street, New Delhi.

ANNEX. VII

STATEMENT SHOWING QUARTERLY REPORT ON UTILISATION UNDER DUTCH (G.P.) CREDIT

1. Name of Importer.

2. No, and date of Import Licence.

3. Value of Import Licence.

4. Value of orders placed,

5. Letter of Authority No. and date.

6. Amount of Letter of Authority.

7. Date of Validity of Letter of Authority.

8. Amount utilised during the Quarter. D.G.

9. Total amount utilised. D.G.

10. Total Amount deposited into Government Rs.

Account

11. Payment yet to be made during the subsequent quar-

ters.

12. Surrenders, if any.

K. V. SESHADRI, Chief Controller of

Imports & Exports

PRINTED BV THE MANAGER, GOVT. OF INWA PRESS, RFNO ROAD, NEW DELHI-110064

AND PUBLISHED BY THE CONTROLLER OF PUBLIC MTONS, DELHI-110054 1 9 79