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REGISTERED NO. D. (D)-72

The Gazette of India

EXTRAORDINARY

PART I—Section I

PUBLISHED BY AUTHORITY

NO. 145] NEW DELHI, SATURDAY, JULY 21, 1979/ASADHA 30, 1901

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

(761)

402 GI/79

763

765

MINISTRY OF COMFIERCE, CIVIL SUPPLIES &

COOPERATION

(DiparluKnt nf Commerce)

PUULIC NOTICE NO. 43-ITC(PN)/79

New Delhi, the 21st July, 1979

IMPORT TRADE CONTROL

Subject : Terms and conditions govcinhg the issuance of import licences for impoiL of machinery (Nos 19 kom.Usu Scrapers and initial spares) from Jupivn under Japanese Ginnt Aid for 1978-79

F. No. 1PC/39/18/78.—The term, ;ind conditions govern-

ing the issuance ol impoit licences f >i Import of machinery (Nos. 19 Kom.ihu Scrupers and initial spares) fiom Japan financed under the Japanese Grant AM for 1978-79 "s given in Appendix lo fhis Public Notice are notified for informa- tion

C. VENKATARAMAN, Chief Contj oiler of Imports

& Exports

APPENDIX

Conditions for Import of machinery (Nos. 19 Konwtsu

Scrapers and iri'.tlal spares) from Japan under Japancs*

Grant Aid for 1978-79

Section 1—General Conditions—

(i) The Japanese Gram Aid for 1978-79 of Yen 700 mil- lion (CLFj i.j intended to be used for financing payment* to Japanese Suppliers for import of machi'nery (Nos 19 Komatsu Sciapeis and .initial spares) for construction of irrigation facilities with a view lo increasing food produc- ton under the ri\er valley projec's in Gujarat State,

(ii) The import Licences should be issued for an agree- gale amount not <.seceding Yen 713 million (CIF) in favour of rhr Tri ij.ition Department of the Government of Gujarat, and should bear the superscription "Yen 700 million Japanese Granl Aid for j 978-79". The licence code for the llrst and second suflh will be "S/JN".

(in) No remittance, of foreign exchange will be permit- led against the import licence, except bank charges to the Dajik ol India, Tok>o which may be remitted through normal bunking channels, payment towards Indian Agent's Commis- sion, if any, should be mad© in Indian rupeei to the agents fn India. Such payments, however, will form part of the licence value and will, theiefote, be charged to the licence.

(iv) The machinery INos. 19 Komatsu Scrapers and ini- ffal spare) should be procured from Japan under this Gran* Aid.

(v) The import licences will be issued on CIF basis with an initial validity up to 15-2-1980. In case the licensee needs further extension, the licensee should submit lo the CCI&E a propojiil seeking an extension in the validi y period of the Impoit Licence nlongwith full jus.tificHtion and explana- tion as to why the shipment and payments could not he completed within 'he initiul wiidity period. Such requests should invariably be referred b" the CCT&E to the Under Secietary (T.C.) Department of Economic Affairs, Ministry ol Finance. North Block, New Delhi for consideration.

(vi) The contract •.hculd pio> ide for payment on cash kisfs i.c on preM-nti:'ion of =hippln? documents by the Japa- nese suppliers to the Bunk of India, Tokyo. Tt should als(r pro\ide for the period of delivery as follows : — "dclivcjy to be completed by 15-2-1980"

(viil The contract value (C&F) basis only) should be exnres>-ed in Yen (fraction of Yen should be omitted) and should exclude- Indian Agent's Commission, if any. In no circumstances the con'ract values should be expressed in any other currency. The f.o.b. cost insurance and freight amount should be shown separately but it should be clarified in

contract itself whethci the freight will be payable on actual basis, or whether the freight charges indicated therein would be the amount payable irrespective of the ac'ual charges.

(viii) The purchase contract should be entered into only with the Japanese nationals or Japanese juridical persons controlled by Japanese nationals. A ccitificatc (in duplicate) showing the eligibility of the supplier should be added to each contract.

Section II—The- following provision should be specially

incorporated in the supply contract :—

(i) The contract is arranged in accordance with the Agreement dated the 16th February, 1979 between me uovernments of India and Japan concerning the Grant Aid of Yen 700 million for 1978-79 and will be subject! tu the approval of both the Governments,

(ii) Payment lo the supplieis shall be made Ihiuugh Hn "Authorisation to Pay' (A/P) which will be issued oy the Contioiler of Aid Accounls &. Audit, Ministry jf F-in:ince Department of Economic Affairs, UCO Bank Building, Par- liament Street, New Del hi-110001 in favour of the Hank, of India, Tokyo under the Japanese Grant Aid for I97S-79.

(iii) The Japanese supplier agrees to furnish such information and document* as may be required by the Government of India on the one hand ami the Government of Japan on the other.

(iv) The Japanese supplier agrees to make shipping airangcmcnk in consultation with the Embassy of India, 'lokyo and that for this purpose he would keep the Embassy nf India, Tokyo informed of the delivery schedule of the goods involved and notify the Fmbassy of Tndia, atleast four IVOCKS in advance ot the shipping required so that suitable arrangements should be made. In exceptional cases, where the importer requires it this period of notice may be reduced. The Japanese supplier should also agree to send a cable udvice to the importer aflei each shipment ihe necessary details and a copy thereof should be sent to the t'mbassy of lndfa Tokyo.

Section III—Contract Approval by Government of India &

Japan:—

(i) As soon as the orders are finalised, the licensee should forward to the Under Secretary (T.C.), Department of Economic Affairs, Ministry of Finance, Norlh Block, New Delhi, 4 copies of the contract duly signed by both parties or purchase ordeis by the Indian importer placed on the Japanese Supplier supported by the order of confirmation in •writing by the Japanese supplier or their photo copies com- plete fn all respects together with two pho'o copies of the relevant valid import licence as ulso two copies of the "Re- quest tor issue of A/P" in the form al Annex I. The above procedure will also apply to all contract amendments causing essential modifications to the contents of contracts or In its prfce.

(ii) The Ministry of Financ (DEA) C.P. Section will arrange to send two copies of the contract to the Government of Japan for their approval for financing under the Japanese Grant Aid or 1978-79 of Yen 700 million and one set of the documents mentioned fn (i) above, will also be sent to the CAAA simultaneously.

(Hi) On receipt of the contract approval from the Goovcmment of Japan, the T.C. Division of the Department of Economic Affairs, Miniitiy of Finance North Block will inform the Controllei of Aid Accounts & Audit, Depart- ment of Economic Affaiis, Minisfry of Finance, UCO Bark Butlding, Parliament Street New Delhi of the same who will issue an 'Authorisation to pay' (A/P) to the Bank of India, Tokyo in the form at Annexuio II for making payment to the Japanese supplier Copies of 'he A/P will be endorsed to the Fmbassy of Inda, Tokyo, the importer, importer's Bank in India and Colombo Plan Section, Department of Fconomic Affairs, Ministry of Finance.

(iv) On receipt of the Authorisation to Pay (A/P) the Bank of Tndia, Tokyo will in*£rnate the fact of this receipt to the Japanese supplier under intimation to the Government ot Japan, Embassy of India, 'I okyo, the importer's Bank in India and the CAA&A.

(v) The Japanese supplier shall, after affecting shipment nf the machinery (Nos. 19 Komatsu Scrapers and intial spares present through his bankers the documents supecified in the A/P to the BO]., Tokyo. If the documents are found to be in order, the Bank of Indiu, Tokyo will lclcase the amount specdied fn the documents to the Japanese supplier through his bankers.

(vil Banking charges payable to the Bank of India, Tokyo for arranging the payment to the Japanese supplier sh.il) be settled by the concerned impor'er's bonk in India by remittances to the BOI. Tokyo through normal banking channel without affecting the Government of India's Account.

Section IV—Responsibiity for rupee deposit :- -

(i) The origina negotiabc shipping documents will be invariably forwaided by the Banfc of India, Tokyo, to the concerned importer's bank in India which would be a bianch of the State Brink of India or any of the nationalised bunks as mentioned in (p) in Annexurc-1 who should release these negotiable aet of documents to the importer concerned only after ensuring that the rupees equivalent of the Yen Pay- ment^ made to the Japanese supplier alongwith interest charges thereon calculated at the rate of 9 per cent per annum for tie first thirty days and at 15 per tent for the period in excess thereof reckoned fiom the date of payment by the Bunk of India, Tokyo to the Japanese Supplier to the date of actual rupee deposit, is deposited Into Govern- ment of India account in terms of the Public Notice No. 46- lTC(PN)/76 ddled 16-6-76. The interest is payable for both the days i.e. the day on which payment ic made to the Japanese supplier and ulso the day on which jupee deposits is made into Government account—vide Public Notice No. 74-lTC(PN)/74 dated 31-5 74 as modified under Public Notice No. 103 ITC(PN)/76 dated 12 10-1976, The ex- change rate to be adopted for computing the rupee equivalent of the Yen Payment will be the prevailing composite rate of exchange as laid down in CCI&E Public Notice No. 8-ITC (PN)/76 dated 17-1-1976 or as may be notified by Govern- ment from time to time through Public Notices of the CCI&E or through Exchange Control Circulars of the Reserve Bank of India. Any change in this regard as also in regard to the rate of interest will he notified as and when necessary. II will be the responsibility of the Indian bank concerned to ensure trrat the amounts due are correctly deposited into Government Account before the import documents are handed over to the importers. The licensee should also ensure that the amounts due arc correctly deposited into Government account before taking delivery of the documents from their bankeis, The Head of Account to which the above rupee deposits should be credited is "K-Deposits and Advanccs-843-Civil Deposits—Deposits for purchases etc., abroad-purchase under Grant Aid from the Government of Japan" for 1978-79 Grant for purchase of machinery (Nos. 19 Komatsu Scrapers and initial spares).

(ii) The amount referred to above should be deposited in cash to the credit of the Government either in the Reserve Bank of India, New Delhi or State Bank of India, Tis Hazari, Delhi, or if this is not possible should be remitted by means of a demand draft obtained from any branch of the State Bank of India or its subsidiaries or any one of the Nationalised Banks (drawer) drawn on and made payable to the State Bank of Tndia, Tis Hazari Branch, Dclii-6 (drawee and payee) for credit to Government account as contemplated in Public Notices No. 184-lTCXPN)/68 dated 30-8-1968, No. 238-ITC(PN)/68 dated 24-10-1968 and No. 132-JTC(PN)/71 dated 5-10-1971, No. 74-TTC(PN)/74 dated 31-5-1974 and No. 103-11 C(PN)/76 dated 12-10-1976.

(hi) The concerned bank in India "hall also furnish such additional deposit in the same manner stipulated above as may be requested by the Government of India on account of service charges within seven days after such a demand is made by the Government. While filling in the various colu- mns in the challan it should be ensured by the Importers/ their bankers that the information prescribed in para 2 of Public Notice No. I32-TTC(PN)/71 dated 5-10-71 and also in Public Notice No. 74-ITC(PN)/74 dated 31-5-1974 lead

with Public Notice No. 103-lTC(PN)/76 dated 12-10-1976 is imariably indicated in the column 'full parriculais of re- mittances and authority (if any)" of the challan. The follow- ing particular;, should invatisibjy be furnished in the Treasury ChalUins :—

(a) Ministry of Finance lA/P' I Authorisation to Pay)

No. and date.

(b) Amount o[ Yen Currencv in iespect of whidi depo- sits aic to be made tu>;i die- with rale of conver- sion adopted,

(c) Date of Payment to the Japaness supplier.

(d) The amount of int?re°i paid and the ccrioil for

which it has been calculated.

'c) T^nl amount deposited.

(Inte-cst is to be calci \n^il for the period from the date of payment to ihc Japjncss buplier upto and inclusive of the date of deposit of nipee equivalents into Government Account >

Thereafter the Treasury Chilians evidencing the rupee de- posit should be sent by registered post to the CAAA indicating reference to the A/P issued by him and also enclosing copies of invoice ir.d shipping documents.

Note.—Importer's Banks in India should ensure that the rupees deposits are invariably made within 10 days of the receipt of the advice of payments and negotiable shipping documents from the Bank of India, Tokyo and that the CAA&A, Ministry of Finance (DBA), New-Delhi Is kept informed of the fact immediately

thereafter.

(iv) The concerned bank in India should also endorse the amount of rupee deposits on the exchange control copy of the licence and send the requisite "S' Form to the Reserve Bank of India Bombay.

Section V—Miscellaneous provisions :—

(i) Reports on the utilisation of tha import licence— The important should send a monthly report, after the A/P has been issued regarding shipments and payments made there against and about the balance left, to the Controller of Aid Accounts & Audit, Department of Fconomic Affairs, Ministry of Finance, UCO Bank Building, Parliament Street. New Delhi.

(ii) Notifying Suppliers of Special Conditions.—The licensee shoulcT apprise the supplier of rny special provisions in the import licence which may affect Ihe suppliers in carry- ing out the transaction.

(iii) Disputes.—It should be understood that the Govern- ment of Tndia will not undertake any fspoinMlity for dis- pute, if any, that may arise between tV licence and the suppliers. The conditions to be fulfilled by the supplier before payment by the Bonk of India, Tokve must be clearly spelt out by the importer in Annexure-I under "Terms of Payment". Provision dealing with a settlement of disputes be Included in the condition of contract,

(iv) Future Instructions.—The licensee shall promptly comply with any directions, instructions or orders issued by the Government of India from time to time regarding any and all matters arising from or pertaining to the import licence and for meeting all obligations under the Grant Aid for 1978-79 from Japan

(v) Breach or \ioution—-Any breach or violation of the conditions set forth in the above clauses will result in appropriate action under the Imports and Exports (Control) Act.

(vi) List of Annexurcv—-Anncxure I : Request for* issue

of A/P.

Anntxuie II—Foim of A ' P.

767

ANNliXURE I

"Request for issue of the Authorisation of Pay"

To

The CoiUiollev of Aid Accounts & Audit,

Ministry of Finance,

Department of Economic Allans,

UCO-Bank Building, 1st Floor,

I'aiiidnunt Street, New Delhi-110001

Subject .'—Import of macmnciy (Nos. 19 Kamatsu Scrappers and initial spares) from Japan under the Japanese Grant Aid for 1978-79. '

Sh,

In connection with the import of machinery CNoa 19 Komatsu Scrappers and initial spares) from Japan under the above mentioned Grant Aid, we furnish the following par- ticulars to enable you to issue the A/P to the Bank of India Tokyo in favour of the Japanese Supplier concerned : --

(A) Name and Address of the Indian importer.

(b) Number, data and value of the import licence and date upto which it is valid.

(c) Method of procurement whether it is based on direct purchase or Formal open International tendering in which case it should be indicated whether the con- tract has been awarded on the basis of technically suitable offer with reasons, it any.

(d) Brief description of the goods

(e) Origin of the goods.

(f) Gioss CIF value of contract (in Yen).

(8) Amount of Indian agents Commission (in Yen) if

any. payable in Indian rupees.

(h) Net CIF Value (in Yen) for which the A /P is re- quired.

(i) Name and date of the contract with Japanese Sup- pliers.

(i) Name and Address of the Japanese Supplier and

nttach an eligibility certificate (m duplicate).

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

ments under the contract will fall due.

CD Expected dale of completion of deliveries.

(m) Documents to be presented at the time af payment tu Bank of India, Tokyo (indicating No. of sets of each and their disposal).

(n) Shipment instructions (indicate if transhipment/part-

shfpment permitted or not permitted).

(o) Name and Address of the Importers Bank in India.

(p) Whether a contract(s) under the same licence has been placed and if so, the No, dates and value of j.uch contract.

Yours faithfully.

ANNEXURE II

No. F.

Government of India

MINISTRY OF FINANCE

(Department of Economic Affairs)

To

The Bank of India.

Tokyo Branch,

Tokyo (Japan).

Subject .—Import under Japanese Grant Aid for Yen 700 million Issue of Authorisation to Pay.

Dear Sirs,

In accordance with the terms and conditions of the agree- ment dated 18-3-1979 entered into with your Bank, you arc hereby authorised to pay an amounl not exceeding Yen

(as per details, given in the Appendix),

2. Please advise the Contractor of the fact of receipt of this Authorisation to pay (A/P) and endorse a copy each cf this advice to the Govt. of Japan, Importers Bank, Embassy of India Tokyo and this Ministry.

3. Payments to the suppliers in terms of the A/P will be mide on the basis of shipping documents as indicated in (he Auuendix.

4. The banking charges including charges tor handling documents, if any, payable to you by the importer will ulso be settled directly by the importer's bank.

5. As and when any payment is made by you on the basis of shipping documents presented by the Japanese supplier, and advice In the prescribed should be sent to this Ministry and the importer's bank.

6. Subsequent amendments to A /P or further fresh A/P may not be acted upon in the absence of a specific authority from this Ministry.

7. This A /P will remain valid upto

Yours faithfully,

Accounts Officer

Copy forwarded to :—

1. Importer— with reference to their

letter Nc. dated •

2. Importer's Banker They are requested to arrange to deposit the rupee equivalent of the Y"n payment to the Japanese suppliers on receipt of documents from the Bank cf India, Tokyo Branch. The rupee equivalent of amount disbursed to the suppliera will have to be calculated by applying the composite rate of conversion ;is prevailing on date of payment to Japanese suppliers in accordance with the Public Notice No. 8-HC(PN)/76 dated 17-l-7h or >uch other Public Notices as may* be issued from time to \!ine. Interest (W 9Tc per annum for the first thirty lays and nt the rate of 15% per anniim for (he period excess thereof reckoned for the period between the date of payment lo the supplier and the date on which the lupee equivalents arc deposited into the Government account, is required to be deposited into the Government of India account in termt of Public Notice No. 46-ITC(PN)/76 dated 16-6-1976. The interest is pay- able for both the days i.e. the day on which payment is made to the Japanese Supplier and also the date on which rupee deposit is made into Government account. (Any change in this rate will be intimated and when made). It should be ensured that these deposits are made before the otiginal set of Import documents are handed over to the importer for Customs Clearance.

These amounts should be deposited either with the RBI, New Delhi or the S.B.I,, Tfc, Hazari, Delhi vr remitted by means of Demand Draft obtained by them from any Branch of the S.B.F. or its subsidiaries or any one of the Nationalised Banks (Drawee and payee) drawn on and made payable to the S.B.I., Tis Hazari, Dclhi-6 (Drawer and payee). In this connection their attention is also invited to the provisions of the public Notices No. 233-ITC(PN)/68 dated 24-10-1968 No. 132-ITC-(1'N)/71 dated 5-10-1971, No. 74-ITC(PN)/74 dated 31-5-74 and 108-ITC(PN)/76 dated 12-10-1976. The head of Account to be credited is 'K-Dcposits & Advances- 843-Civil Deposits-Deposit for purchases etc., abroad pur- chases under Grant Aid for 1978-79 under detailed head "700 million grant aid for purchase of machinery".

One copy of the challan in original, in cases where the rupee equivalents arc credited in cash at the RBI, New Delhi or the SBI, Tis Hazarl, Delhi as prescribed in Public Notice No. 132-ITC(PN)/71 dated 5-10-1971 should be sent by them so the arrears given below alongwhh a forwnrding letter giving full details of the advice notes received from the Bank of India, Tokyo Branch.

The controller of Aid Accounts & Audit, Ministry of Fin- ance (Department of Economic Affairs), 1st Floor UCO Bank Building, Par'iarnent Street, New Delhi-],

In ewes where the rupees equivalents are remitted by means of demand drafts as laid down in the Public Notice dated 24-10-1968 mentioned above, intimations thereof should be sent to the address given above. In all cases, full particulars of the rupee equivalents deposited alongwith the amount of interest paid and the period for which interest has been calculated should be furaisned to this Department.

The banking charges, of the bank, of India, Tokyo Branch including charges of the overseas suppliers bankers, if any, should be settled directly between the Indian Bank and the Bank of India, Tokyo Branch.

4. Embassy of India, Tokyo.

5, The Under Secretary (TA) Ministry of Finance, De-

partment of Economic Affairs, New Delhi

Accounts Officer

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AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DEL1I1-J100J4, VJ79