Subject NOT available

United Arah Emirates (3)

New Caledonia

Yemen Arab Republic

New Hebrices (Br. and Fr.)

Yemen, People's D.R. (4)

Hieu

VI. ASIA, South

Pacific Islands (US) (6)

Afghanistan

Papua New Guinea

Bangladesh

Solomon Islands (Br.)

Bhutan

Tongo

Burma

Wallis and Futuna

Maldivis

Western Samoa

IX. EUROPE

Nepal

Cyprus

Pakistan

Gibralter

Sri Lanka

Greece

VII. ASIA, Far East

Malta S

Burnei

Tmkey

\ ugoslnvn

(b2l Mem her or Associate Countries of OPEC

Algeua

Bolivia

I ibvan Arab Republic

Gabon

Nigeria

Fcindor

Venezuela

Tran

Iraq

Kuwait

Qatnr

Saudi Arabia

Abu Dhabi

Indonesia

ANNE

ELIGIBLE COMMODITY I IST

1 Rolls

2 Steel including special steel & alloy steel

1 Componen's, attachments and spares for raanufdctnn;

of trucks and tractors

4 Chemicals

5 Spares, components and raw materials for Indo- Japanese Joint Venutres

6 Components, attachments and spares foi power tillers

7 Machinery, components attachments, spares and raw

materials

8 Machinery and equipment foi the National Small

Industries Corporation of India

650 GI/79—4

') Machinery and equipment for the Bombay High

OlKhoie Development Project

10 Feitilizn and such other Terns as ruav be mutually

agreed upon

ANNEXURE HI

"RFQUFST FOR ISSUE OF THF AUTHORISATION TO

PAY"

No

To

The Controller of Aid Accounts k Audit,

Ministi^ of Finance,

DepLirtment of Economic Affairs,

UCO Bunk Building, 1st Floor,

Parliament Street,

New Delhi-110001

Subject —Import from Japan under the Japanese Giant Aid

of Yen 2 9 billion tor 1978-79.

Sir,

In connection with the import u( . , . from Japan

under the above mentioned Grant Aid, we furnish the follow-

ing particulars to enable you to lsisne the AlP to the Bank

of IndiL' Tjkiu in favour of the Supplier concerned '—

fa) Name and Address of the Indian importer,

fh) Number, date and value of the import licence and

date upto which It is valfd.

(el Method of procurement—whether it is based on

direct purchase or Formal open International tendc-t-

mg in which case it should b© indicated whether the

contract has been awarded on the basis of techni-

cally suitable offer wilh reasons, if any

(d) Brief description of the goods,

(c) Origin of the goods

(f) Gross C&F value of contract (in Yen)

(g) Amount of Indian agents commission (in Yen), if

any, payable in Indian rupees.

(h) Net C&F Value (in Yen) for vthich the Ai/P is

required

(i) Name and date of the contract with Suppliers.

(j) Name and Address of (he Supplier and attach an

eligibility certificate (in duplicate)

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

ments under the contract will fall due.

(1) Expacted date of completion of deliveries.

(m) Documents to be presented at the time of pay-

ment to Bank of India, Tokyo (indicating No. of

sets of each and their disposal).

(n) Shipment instructions (indicate if transhipment!

partshipment perrait'ed or not permitted).

(o) Name and Addrcis of the Importer's bank in India.

fp) Whether a contract(s) under the same licence has

been placed and if so, the No. date and value of

luch contract.

Your* faithfully.

ANNEXURE IV

No.

MINISTRY OF FINANCE

(Department of Economic Attains)

New Delhi, the

To

The Bank of India, Tokyo Branch

Tokyo (Japan).

Subject :—Import under Japanese Grant Aid for Yen 2.9

billion Issue of Au'horisatibn to pay

Dear Sirs,

In accordance with the terms and conditions of the agree-

ment dated 13-3-1979 entered into with your Bank, you axe

hereby authorised to pay mi amount not exceeding Yen

to M/s (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 of

this advlco to the Government of Japan, importers Bank, Em-

bassy of India, Tokyo and this Ministry.

3. Payments to the suppliers in terms of the A/P will be made on the basis of shipping documents as indicated in the Appendix.

4. The banking charges including charges for handling

documents, if any, payable to you by the importer will also

be settled diree'ly by the importer's bank.

5. As and when any payment is mnvle by you on the basis

of shipping document^ presented by the Japanese supplier, an

advice fn the prescribed form should be sent to this Minis-

try and the importer's bank.

6. No amendments to A|/P may be issued in the absence

of a specific authority from this Ministry.

7. This A/P will remain valil upto—•• —.

Yours faithfully,

Accounts Officer

Copy forwarded to: —

1. Importer with reference to

their letter No. -dated .

2. Importer's Banker

.They are

requested to arrange to deposit the rupee equivalent of the

Yen payment to the Japanese suppliers on receipt of docu-

ments from the Bank of India, Tokyo Brunch. The rupee

equivalent of amount disbursed to the suppliers will have to

be calculated by applying the composite rate of conversion

as prevailing on the date of payment to Japanese suppliers in

accordance with the Public Notice No. 8-TTC(PN)/76 dated

17-1-1976 or such other Public Notices as may be issued from

time to time. Interest @ 9 per cent per annum for the

first thirty days and at the rate of 15% per annum for the

period excess thereof reckoned for the period between the date

of payment to the supplier and the date on which the rupee

equivalents are deposited into tho Government Account, is

required to be deposited into the Government of Tndia account

in terms of Public Notice No. 46-ITC(PN)/76 dated

16-6-1976. The interest is payable 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 Govern-

ment account (Any change in this rate will be intimated if

and when made). It should be ensured that these deposit*

are made before the original 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., Tis Hazari, Delhi or remitted by

means of a Demand Draft obtained by them from any

Branch of the S.B.I, or its subsidiaries or any one of the

Nationalised Banks (Drawer) drawn on and made payable

to the S.B.I., TiB Hazari, Dclhi-6 (Drawee 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(PN)/71 dated 5-10-1971 No. 74-ITC(PN)/74

dated 31-5-74 and 103-ITC(PN)/76 dated 12-10-1976. The

head of Account to be credited is K-Deposita & Advances-

843-CIVTL Deposit for purchases etc, abroad Purchases under

Grant Aid from the Government of Jr.-pan for 1978-79—(Yen

2.9 billion Gran' Aid).

One oopy of the challan in original, in cases where the

rupee equivalents arc credited in cash at the RBI, New Delhi

or the SBI, Tis Hazari, Delhi as prescribed in Public Notice

No. 132-ITC(PN)/71 dated 5-10-1971 should bs sent by

them to the address given below alongwith a forwarding

lefer giving full details of the advice notes received from the

Bank of India, Tokyo Branch.

The Controller of Aid Accounts & Audit, Ministry of

Finance (Department of Economic Affairs), 1st Floor UCO

Bank Building, Parliament Street, New Delhi-1.

In cases where the rupee equivalent are remitted by means

of demand drafts as laid down in the Public Notice

dated 24-10-1968 mentioned a-bove, Intimations thereof should

be sent to the address given above. In all cases, full parti-

culars of the rupee equivalents derJosilcd alongwith the amount

of in crest paid and the period for which' interest has been

calculated should be furnished 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 (TCM) Ministry of Finance, De-

partment of Economic Affairs, New Delhi,

Accounts Officer,

ANNEXURE V

Guidelines for Procurement of Commodities under Japanese

Grant Aid

I. Introduction more

The proceeds, of the Giant Aid of Yen 2.9 billion extended

by the Government of Japan shall be used with due attention

to efficiency and non-discrimination among the eligible source

countries for procurement of commodities and services Inci-

dental thereto in accordance with the procurement procedures

set out in this guide lines.

II. Selection of Procurement Procedure

The following procedures shall be applicable to the procure-

ment of Listed Commodities under the Grant Aid:

(1) Formal Open International Tendering.

(2) Formal Selective International Tendering.

(3) Informal International Competitive Procurement.

(4) Direct Purchases.

(a) In the case of the procurement by the government and/

or a government agency, Formal Open International tender-

ing or Formal Selective International Tendering shall be

applied.

(b) In case of nongovernment procurement, any of the

procedures mentioned above may be applied.

(c) It is, however, possible under this Grant Aid to accept

the procurement through Informal International Competitive

Procurement or Direct Purchases in the following cases.

(i) Where the amount of a proposed contract does not

exceed 300,000,000.—, US Dollar 1,500,000.—or

Pound Sterling 800,000.—, in terms of currency of

the contract,

(ii) Where the number of qualified suppliers is limited.

(,iii) Where purchase of a commodity by reference to a

particular specification, trade name or designation is

necessary in order to assure the inter-changeability

or standardization of equipment, or because of spe-

cial design requirements.

(iv) Where either procedure (1) or procedure (2) by the

reason other than the case (i), (ii) and (iii) above

(e.g. in case of emergency procurement) is inappli-

cable.

(d) In any case mentioned above, Importer shall get a con-

firmation of the Borrower concerning the eligibility of procure-

ment in accordance with the procurement procedure set

forth in this Section 1-3.

III. Conditions of Contract

Any contract to be financed under this Grant Aid shall

fulfill the following conditions.

1. Conditions of Commodities

As the use of this Grant Aid is limited to financing ex-

penditures for Listed Commodities produced in the eligible

source countries, the subject items of the Contract shall be

Listed Commodities produced to the eligible source countries

and to be shipped to an Indian port from the eligible source

countries. If the imported portion from non-eligible source

countries is less than thirty per cent (30 per cent) of the fol-

lowing formula, Listed Commodities will be financed even if the impoited portion from non-eligible source countries is included ns a part of the Liirted Commodities in the items of the Contract Formula mentioned above :

Impoited Pi ice + Import Duly

^_ . X 100

Supplier's FOB Price

2. Conditions of Supplier:

The Supplier shall be a national of the eligible source countries, or a juridical person registered in the eligible source countries.

3. Conditions of Importer:

The procurement of any Commodities by the armed forces or their affiliated organizations of India shall not be eligible under the Loan.

4. Denomination of Currency:

The Contract shall be fixed and payable in Japanese Yen, United States Dollar, or Sterling Pound without any fraction less than one Yen (Y 1.00), One cent (C 1.00) of One Penny (d. 1.00) respectively-

5. Standard Form of Contiact

(a) The following items sbnll be inserted in the Contract

to be financed under this Grant Aid :

(1) Name and Nationality of Supplier and Importer (2) Number and Date of the Contract (3) Nome and Origin of the Commodities (4) Contract Price and Quantity (5) Payment Terms (6) Delivciy and- Shipment Schedule (7) Other General Regulations

(b) The Contract duly signed by both pailics or purchase order by the Indian Importer placed on the overseas supplier supported by order confirmation in writing by the overseas supplier, or their photo copies, are also acceptable.

(c) The following statement of eligibility by the Supplier

shall be added to each contract:

'"I (We) hereby state that my (our) company ha.s been registered in— — (elidible sourer country)."

6. Payment :

Each payment shall be nude on din! after the date of

signing of the Grant Aid i.e. 17th March, 1979.

In principle, the full amount of a .shipment shall he paid lo the supplier on cash basis at each time of presentation of the relative shipping documents lo the Bank of India, Tokvo.

IV. International Tendering

When International Tendering i, applied, the procuicmcnt shall be made in accordance with the following principles, umong other.s:

1. Advertising:

On all contiacts subject to Foimal Open International Ten- dering, invitations to bid shall be advertised in at least one newspaper of general circulation in India.

2. Time Interval Between Invitation and Submission of Bids :

'The time allowed for prepartion of bid;, will depend to a larjte extent upon the magnitude and complexity of the cont- ract, Generally not less than 30 days should be allowed foi ioteinational bidding- The time allowed, however, 'hould be governed by the circumstances relating to each conn act.

3. Bid Opening Procedures:

The date, hour and place for I he latest receipt of bids and for the bid opening should be announced in the invitations to bid and all bids should be pened publicly at the stipulated time. Bids received after this time should be returned unopened. The name of the bidder and Ihe total amount of each bid and of uny altei native bids, if they have been requested or permitted, should be read aloud and lecoidcd.

4. Bid Bonds or Guarantees:

In the case of bidding, bid bonds or bidding guarantees arc a usual iequirement, but they shuuld not be set 'o high as to discourage .suitable bidders,

Bid bonds or guarantees should bi released lo unsuccessful bidders as soon as possible after the bids have been opened.

5. Standards :

If national standards with vvhich equipment or materials must comply are cited, the specifications should slate that commodities meeting lapan Industrial Slnndaid or oilier inter- nationally accepted standards, which ensure an equal or higher quality than the standards mentioned, will also be accepted.

6. Use of Brand Names :

Specifications should be based .MI performance capability nnd should only prescribe brand names, catalogue numbers, or products of specific manufacturer if specific spare parts die required or it has been determined that a degree of Standardization is necessary to maintain certain essential features.

In the latter case the specification^ should permit offer* of alternative commodities which have similar characterstics and provide performance and quality at least equal to those specified.

7. Guarantees and Performance Bonds :

Bidding documents may require some form of surety for guarantees, if necessary. This surety can be provided either by a bank guarantee or by a performance bond.

8. Liquidated Damages :

Liquidated damages clauses, if necessary, should be included in bidding documents when delays in delivery will result in extra expenditures, loss of revenues or loss of other benefits ro the Importer.

9. Force Majeure :

The conditions of the Contract included in the bidding documents should contain clauses, when appropriate, stipula- ting that a failure on the part of the parties to perform their obligations under the contract shall not be considered a default under the Contract if '.uch failure ia the lesult of an event of force majeure (to be defined in the conditions of the Contract).

10. Settlement of Disputes :

Provisions dealing with the settlement of disputes should be included in the conditions of tlie contract. It is desirable that the provisions should be based on "Rules of Conciliation and Arbitration" which have been prepared by the Inter-

national Chamber of Commeiee or on such olhcr airangcmcnls us may be mutually acceptable 10 the Irkli.in Importci and the overseas Suppler.

11. Evaluation :

APPEND1Y II TO DEPARTMENT 01- CoMMFRCT PUBLIC NOTICE NO. 49 ITC (PN)/79 DATED 24-9-1974.

I ICENSING CONDITIONS IN mSPHCT OF PRIVATE SFCTOR IMPORTS UNDER THh JAPANESE GRANT AID OF YEN 2.9 BIU ION FOR 197H-74 EXTENDED BY THF GOVERNMENT OF JAPAN

Section I—General Conditions:

I(i) The Japanese Grand Aid of Yen 2 9 billion extended by the Government of lapan is untied \n favour of CECD and developing countries. Accoidingly the commodities and ser- vices incidental thciclo to be piocuicd under this Giant Aid can be imported from lapan and all countric, enumeialed in Ihe lisl, at Anncxuie 1 which will be the eligible yource countries tinder this Grant. Howcve¹¹, if commodities impoitcd under the licence contain component originating from a non eligible souice country or countties, it should be ensuicd by the importer. wh:le negotiating 11 supply contiact, that |]iu total c.i.f. cost, including import duties, ot such components impoited into the country of the supply contract is less than 30 pel cent of the f.o.b, value ol the supply contract. In such a case, a ceitificate to this effect, should be obtained from supplicis and attached to the supply contract. The list of eligible commodities that can be imported under this Grant A:d is at Anncxuie II.

Tn fixing the terminal dale for shipment it should be noted

that this date should not be beyond 30-6-1981.

Section II—Special points to be kept in view while negotiat-

ing a suply contract:

IKil la) The value of the '-onliact should be expressed in Yen or US Dollais or Pound Ste-ling without fraction ICM than one Yen, one Cent or one Pamiy and should exclude Indian Agent's commision, if any, which should be puld in Indian rupees. In no circumstances the contract value should be expressed in Indian rupees or in any other cuiiency. The FOB cost, insurance and lieight amount may be shown separately but it should be clarified in the contract whethei the freight charges will be payable on actual basis or whether the freight charges indicated in (he contract would be the .amount payable irrespective of the actual charges.

(c) The purchse order and supplier's Older confirmation

should be in Fnglish only.

II(ii) For individual imports not exceeding Yen 300 million or Us $ 1,500,000 or £ 800,000 in value (exclusive of Indian agents commission) the licensee is free to effect purchases dnectly from the suppliers without recourse to international tender enquiries from the countries listed in Annexure-I.

ll(iii) Where, however, the supply contiacts exceed the limit prescribed in II (ii) above in value (exclusive of Indian agents commission), any one of the following procedures foi piocure- ment should be rigidly followed :

(a) Formal Open Intel national Tendering

l(ii) The licence will bear Ihe supei --ci ipriiui "'Yen 2.9 billion Japane.se Grant Aid foi 197^-7'J". The licence code for the iirst and second suffix will be "SyiN". These will ,ilso be repeated in the letter from tlv CCf&F foi warding the import licence.

I(iii) No remittance of foreign exchange will be permitted against the import licence, except bank charges which m.iv be remitted through normal binking channels. Any payment towards Indian Agent's commission should be made In, Indian rupees to the agents in Tndid, Sucr payn ent howevei, will form part of the licence value and will, thercfoic. be charged to the licence.

I(iv) The impoil licence will lie issued on CIF basis witn an initial validity of 12 months. 1-or extension of the validity of the licence, the Licensee should approach the licensing authority concerned who shall consult the Department r>f Economic Affairs ITCM Section) in the matte.

I(v) Firm order must be place*] on CIH oi on C&F basis on the overseas suppliers located in Japan or in oihei elig'blc countries mcjitioned in Annexiiri;-I and sent to ihe Under Secretry, Dcpattmenl of Economic Affairs (TCM Section) Ministry of Finance, North Block, New Delhi within 4 months from the date of issue of the import licence. "Firm orders" means pilichase orders pi iced by the Indian licensee on the overseas suppliei duly suppoited by oidcr confir- mation by the lettei of purchase contract duly signed by both the Indian importer and the overseas suppl'ei. Ordeis on Indian Agents of Ovciscas Suppliers and/or oidcr confii- mution by such Indian Agents arc not acceptable.

Ifvi) This condition of the placement of contracts within 4 mouths period will be treated as not having been complied with unless complete contract documents reach the Mimstiy of Plnance, Department of Economic Affaiis, 1CM Section, within four months from ihe t'ate of issue if the import licence. If firm orders as explained in para Ifv) above cannot be placed within foui months for valki rcanons, the licensee should -iuhm.il the inipou licence to I he concerned licensing authorities giving i;asons whv ordciing could not be completed within four months Such requests for extension in the oidcring period will be cofcidcicd on merits by the licensing aulhoi ities- who may grant extension upto -i turthei maximum period of 4 months. If, however, extension is sought beyond 8 months from the date of issue of this impoit licence such pioposajs will invariably be leferred by the licensing authorities to the Department ot Economic AfTiiis ("ICM Section), Min'stry of Finance, Noith Block, New Delhi who will consider suih extension on the merits of each case and communicate their doctslon to the licensing authorities foi communication to the licensee.

(b) Formal selective International Tendering

(c) infoimal Internat'onal Competitive Procurement

H(iv) Any reference to Internaliomil Tendering or Intel- national Procurement will mean tendering or procurement, us¹ the case may be, from the eligible source countries.

The above procedure may be relaxed in favour of Infoimal

Competitive procurement or Direct purchase where—

1. a number of qualified suppliers exist in one particular country or in a limited number of countries,

2. purchase of a commodity by reference to a patticaular specification, trade name cr designation is necessary in order to assure the inferchangeability or standa- rdisation of equipment or because of special design lequirement.

3. Purchases ore in the cat^goiv of cmcigency pmcurp-

ment.

The licensee is theieforc advised that in case where the pioeeduie at (a) and (b) of para II (iii) above cannot be- taken lecourse to, .i reference to the Department of Economic Affaiis shall have to be made who will consider each such case on merits.

Ilfv) Where Formal Open International Tendering is rcsoited

to, the following points should be borne in mind :—

fa) Invitations to bid shall have to be advertised in at least one newspaper of general circulation in India.

(b) Bid bonds or bidding guarantees are a usual requhe- ment but they should not be set so high as to dis- courage suitable bidders,

(c) Bid bonds or guaiantees should be leleased to unsuccessful bidders as soon as possible after the bids have been opened.

ll(vi) Only one contract should be entered into for the full value of the import licence. In exceptional cases, more than one contract may be permitted to be enleicd into for which prior approval of the Depiutment of Economic Affaire, Ministry of Finance, should be obtained soon after the date of issue of the import licence.

IHvii) Eligibility of Supplier

The Supplier shall be a umional of Ihc eligible souiu- countries, or a juridical person governed substantially by nationals of the eligible countries.

Section 111 : The following Dro^isioti should he specifically

incorporated in the supply contract: —

lll(i) The contract is arranged ir> accordance w'lh the Agreement dated the 17th March, 1979 between the Govern- ment of India and Japan concerning the Grant Aid of Yen 2.9 billion for 1978-79 and will be subject to (he approval of the Government of India.

Ill(ii) Paymenh to the supplier shall be made thiough in "Authorisation to pay" (A/P) which will be issued by the Controller of Aid AccountH & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, Piulia- ment Street, New Delhi-110001 in favour of the Bank of India, Tokyo under the Japanese Grant Aid for 1978-79.

Tll(iii) The overseas suppliers agree to furnish such infor- mation ant' documents as mav be requited by the Government of India on the one hand nnd the Government of Tnnan on the other,

IlT(iv) Where the suppliers arc located in Jripan, they agree to make shipping arrangements in consultation with the Embassy of India, Tokyo and that for this purpose they wr-nid keep the Fmbaasy Qf Tndia, Tokyo informed of the deliverV schedule of the goods involved and notify the Embassy of India, atleast four weeks in advance of the shipping required so that suitable arrangements should be made, In exceptional cases, wheie the importer require, this period of notice miv be reduced. The Japanese supplier should also agree to send a cable advice to the importer nfter each shipment giving thei necessary details and a copy thereof should be Tent to the Embassy of India, Tokyo.

IJI(v) A certificate in the form indvuted. below :—•

"1 (We) hereby state that my (our) Company has been registered in (eligible source country) and is governed by nationals of the eligib'e source countries or juridical perrons registered and incorporated in the eligible source Countries".

Section—IV Detailed Procedure for procurement and finali- sation of supply contract has been indicated in Anncxure-V

Section—-V Contract Approval by Government of India

V(i) Within the stipulated period for placement of fiim orders the licensee should forward to the Under Secietary. (TCM Section), Department of Fconomio AlTairs, Ministry of Finance, North Block, New Delhi 4 cop'e" of the contract duly signed by both parties or purchase older by the Indian importer nlaced on the Overseas Suppliers supported by order confirmation in writing by the Overseas Supplier or their photo-copfes, complete in all resnects, together with two photo-copies of the relevant valid impirt licence and also two conies of the "Request for issue of A/P" in the fnrm nt Annexure TTT, accompanied by a Rank Guai nntec in the form prescribed in Annexure—VI duly adjudicated bv the Collector of Stamps under Section 31 nf the Indian Stamp Act.

Where supply contract is based on form.il Open International Tendering or Formal Selective International Tendering, a certificate to the following effect should be furnished in duplicate :—

(i) Name of the Newspapers in which the bid specifica-

tion was published ;

(ii) Name of parties -who quoted against the lender

enquiry;

(iii) the reason for selecting i particular offer indicating whether it is the lowest technically suitable bid Vfii) Bank Guaiantee—Amount for which it should b:

executed,

The Bank Guarantee should be for an amount representing the rupee equivalent of the foreign currency amount for which Ihc Authorisation to pay (A/P) is cought plus interest and other charges as mentioned in Ann^xure—VI The late of conversion shall be at the exchange rate notified by the Department of Revenue and prevailing on the date of issue of the import licence as per para 2 of the Public Notice No, 78-TTC (PN)/74 dated th^ 6th June, 1974 issued bv the CCI&E.

This rate is meant only for the purpose of an iving at the value of the Bank Guarantee lo be furnished by the licensee. For the purpose of making rupee deposits into Government account towards the cost of impoits, the uipee equivalent will have to be woikcd out in the manner indicated in Section VIT below,

V(iii) If the contract documenfs, Request foi issue of 'A/P', the Bank Guarantee and other connected documents are found to be in order, the Ministry of Finance, Department of Economic Affairs, TCM Section will approve the contract and arrange to send otic set of the documents to the Controller of Aid Accounts & Audit, Ministry of Finance, UCO Bank Bui'ding, Ist Floor Parliament Street, New Delhi, and Em- bassy of Tndia, Tokyo,

Section VI—Payment to the Overseas Suppliers—A/P.

(i) On receipt of the documents mentioned in Section V (iii) above the Controller of Aid Accounts & Audit, Depart- ment of Economic Affairs, Ministry of Finance, UCO Bank Building, Parliament Street, New Delhi-110001 will issue an 'Authorisation to Pay' (A/P) to the Bank of India, Tokyo in the form at Annexure III for making payment to the Japanese supplier. Copies of the A/P will be endorsed to the Embassy of India, Tokyo, the importer, importer's Bank in India and T.C.M. Section, Department of Economic Affairs, Ministry of Finance.

VKii) On receipt of the Authorisation to Pay (A/P) the Bank of India, Tokyo will intimate the fact of this receipt to the supplier under intimation to the Government of Japan, Embassy of Tndia, Tokyo, the importer's Bank in Tndia Rnd the CAA & A.

VKiii) The foreign supplier shall, after affectinji sh pment, present through his bankers the documents specified in the A/P to the BOT, Tokyo. If the documents are found to be in order, the Bank of Tndia, Tokyo will release the amount specified in the documents to the supplier through h's bankers.

VI(iv) Banking charges payable to the Bank of India, Tokyo for advising the A/P and for arranging payment lo the supplier shall be sett'ed by the concerned importer's hank in India by remittances to the Bank of India, Tokyo through normal banking channel without affecting the Government of India's Account. Section VII—Responsibility for rupee deposit :

VTI(i) The original negotiable shipping documents will be invariably forwarded by the Bank of India, Tokyo, to the concerned importer's bank in India which would be a branch of the State Bank of Tndia or any of the nationalised banks as mentioned in (O) in Annexure—TIT who should release these negotiable ucts of documents to the importer concerned only after ensuring that the rupee equivalent of the Yen Payments made to the supplier alongwith interest charges thereon calculated at the rate of 9% per annum for the first thirty days and at 15% for the period in excess thereof reckoned from the date of payment by the Bank of India, Tokyo to the Japanese Supplier to the date of actual rupee deposit, is deposited into Government of India account in terms of the Public Notice No. 46-TTC(PN)/76 dated 16-6-76. The interest is payable for both the days i.e. the day

on which payment is made to the Japanese supplier and also the clay on which rupee deposits is made into Government account vide Public Notice No. 74-ITC(PN)/74 dated 31-5-74 as modified under Public Notice No. 103-ITCIPN)/76 dated 12-10-1976. The exchange rate to bo adopted for computing the rupee equivalent of the Yen Payment will be the prevai- ling composite rate of exchange as laid down in CCI&E Public Notice No. 8-lTC(PN)/76 dated 17-1-1976 or as may be notified by Government from time to time through Public

Notices of the CCI&E or through Exchange Control Circu- lars of the Reserve Bank of India. Any change in this legard ns also in regard to the rate of interest will be notified as ;ind when nccessa/y. It will be the responsibility of the Indian Bank concerned to ensure that the amounts due ar* correctly deposited into Government Account before the im- poit documents cue handed o\ei to the impoilcrs, ihe licensee should also ensure that the amounts due are correctly deposited into Government account before talcing delivery of the documents from their bankers. The Head of Account to which the above rupee deposits should be credited is "K-De- posits and Advances-843-Civil Deposits-Deposits for purchase* etc., abroad-purchase Grant Aid from the Government of Japan" for 1978-79. —(Yen 2.9 billion Grant Aid)

VIT(ii) The amount referred to above should be deposited in cash to the credit of the Government cither in the Reserve Bank of India, New Delhi, or State Bank of India, Tis Hawaii, Delhi, or if this is not possible, should be remitted by means of a demand draft obtained from any branch of the St&te Bank of India or its subsidiaries or any one of the Nation- alised Banks (drawer) drawn on and made payable to the State Bank of India, Tii Hazari Branch, Dclhi-6 (drawee Dnd Payee) for credit to Government account as contemplated in Public Notices No. 184-JTC(PN)/68 dated 30-8-1968, No. 233-ITC(PN)/68 dated 24-10-1968 and No. 132-ITCfPN)/ 71 dated 5-10-1971, No. 74-TTCTPN) /74 dated 31-5-1974 and No, 103-ITC(PN)/76 dated 12-10-1976.

VIKiii) The concerned bank in India shall also furnish such additional deposit in the same manner stipulated above as may be requested by the Government of India on iccount 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. 132-ITC(PN)/71 dated 5-10-1971 and also in Public Notice Np. 74-ITC(PN)/74 dated 31-5-1974 read with Public Notice No. ]03-TTC(PN)/76 dated 12-10-1976 is invariably indicated in the column ''full particulars of remit- tances and authority (if any)" of the t;hallan. The following particulars should invariably be furnished in the Treasury Challans :

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

No. and date.

(b) Amount of Yen Currency in respect of which de- posits arc to be made together with rate of con- version adopted.

(c) Date of payment to the foreign supplier,

(d) The amount of interest paid and the period for

which it has been calculated.

(e) Total amount deposited.

(Interest Is to be calculated for the period from the dote of payment to the Japanese supplier upto and inclusive of the date of deposit of rupee equivalents into Government Account).

Thereafter the Treasury Challans evidencing the rupee de- posit should be sent by legistered post to the CAA&A indicat- ing icfcicncc to the A/P issued by him and also enclosing copies of invoice and shipping documents.

Note : Importer'" Banks in India should ensure that the rupee deposits arc invariably made within 10 days of the receipt of the advice of payments and negotiable shipping documents from the Bank of Indin, Tokyo and that the CAA&A, Ministry of Finance (DF.A), New Delhi is kept informed of the fact immediately thereafter.

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

VIllv) After the ob'igations in terms of the Bank Guaran- tee and the Authorisation issued by the CAA&A in tbo Ministry of Finance are fulfilled, the concerned Bank in India can apply to the CAA&A for the release of bank gua- rantee. The application for this purpose be mode in the form laid down in Annexure-—VIT.

Section—V1IT Mi":ellancous provision*

VIIKi) Reports on the utilisation of the import licence

The importer should send a monthly report after the A/P has been issued regarding shipments and payments made thereagainst and about the balance left, to the Controller of Aid Accounts and Audit, Department of Economic Affairs, Ministry of Finance, UCO Bank Building, Parliament Street, New Delhi.

VIIKii) Notifying Suppliers of Special Conditions

The licensee should apprise the supplier of any special pro- visions in the import licence which may affect the suppliers in carrying out the transaction.

VIIKiii) Disputes

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 suppliers. The conditions to be fulfilled by the supplier before payment by the Bank of India, Tokyo 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.

VTII(iv) Future Instructions

The licensee shall promptly comply with any directions, instructions or orders issued by the Government of India from time to time legarding any and all matters arising from or pertaining to the import licence and for meeting all obli- gations under the Grant Aid for 1978-79 from Japan.

Norway

"VIII(v) Bicach or vjo'ation

Poiliijj.il

Any brciich or violation of the conditions set foith in ihc above clauses, will result in appiopriale action under the Im- ports and F\poils (Control) Act.

Spain

VIII(vi) LM of Annexur.es :

Sweden

AnncMire I : List of eligible souice countries

Switzerland

Annexure II : f ist of eligible commodities

Tin key

The United Kingdom and

Annevire III : Form of request for issue of Authoii-

sjtion to Pay (A/P)

The United States,

Annexure IV : Form of letters of Authorisation to Pay

E) DcvcJnpiug Countries & Territories

(A/P)

(hi) Nnu-O.P.F, C. Developing Countries Annexure V : Detailed procedure for proeuiement

AnneMiie VI : Form of Guarantee Bond

I. Africa North of Sahara

Fgypt

Annexure VII : Fotm of Application foi re'ease of

Bank Guarantee.

Moiocco

Tunisia

ANNEXURh—I

fRef • Section I—P:na l(v)l

II. Africa, South of Siihnra

UST OF ELIGIBLE SOURCE COUNTRIES

Angola

Rotswyjin

A OECD Countries

Burundi

Australia

Cameroon

Austria

Cape Verde Islands

Belgium

Ccntial \fiican Rep.

Canada

Chad

Denmaifc

Comoio Islands

Finland

Congo, People's Republic of Dahomay (1)

France

Fquatorial Guinea

Fthiopia

The Federal Republic of Germany

Gambia

Greece

Ghana

Ciuincd

Iceland

Ivoiy Coast

Ireland

Kenya

Italy

Lesotho

Japan

Liberia

Lu\embourg

Malagasy Republic

The Netherlands

New Zealand

(1) Formerly the territory of Spanish Guinea, including the island of Fernando Po.

Malawi

El Salvador

Mali

Guadeloupe

Mauritania

Guatemala

Mauritius

Haiti

Moozambique

Honduras

Niger

Jamaica

Portuguese Guinea

Martinique

Reunion

Mexico

Rhodesia

Netherlands A tille3

Rwanda

Nicaragua

St. Helena and dep (2)

Panama

Sao Tome and Principee

St. Pierre & Miquelon

Senegal

Trinidad and Tabago

Seychelles

West Indies (Br.) n.i.e.

Sierra Leonp

(a) Associated States (1)

Somalia

(b) Dependencies (2)

Sudan

IV. America, South

Swaziland

Argentina

Bolivia

Terro, Afars and Issaa

Brazil

Tago

Chile

Uganda

Colombia

Un. Rep. of Tanazanla

Falkland Islands

Upper Volta

Frenc*¹ Guiana

Zaire Republic

Guyti

Zambia.

Paraguay

III. America, North and Cent

Peru

Bahamas

Surinam

Uruguay

BarbodoHes

V. Asia, Middle East

Belize

Bahrain

Bermuda

Israel

Costa Rica

Jordan

Cuba

Ixbnon

Oman

Dominican Republic

Syrian Arab Republic

United Arab Amiratcs (3)

(2) Including the following islands: Ascension, Tristan da Inaccessibles, Nightingale, Couch.

(3) Main islands, Aruba, Bonaire, Curacao, Saha, St. Eustacit, St. MaTtin (Southern Part).

650 GI/79

Gilbert & Ellico Is.

Yemen Aiab Republic

French Pelyncsia (5)

Yemen, People's D.R. (4)

Nauru

VI. ASia, South

New Caledonia

Afghanistan

New Hebrices (Br. and Fr.)

Bangladesh

Hieu

Pacific Islands (US) (6)

Bhutan

Papua New Guinea

Burma

Solomon Islands (Br.)

Maldivis

Tongo

Nepal

Wallis and Futuna

Western Samoa

Pakistan

IX. EUROPE

Sri Lanta

Cyprus

VTT. A"ta, Far East

Gibralter

Greece

Burnel

Malta S

Hong Kong

Spain

Khmer Republic

Turkey

Korea. Republic of

Yugoslavia

Laos

(b2) Member or Associate Countries of OPEC

Macao

Algeria

Bolivia

Malaysia

Libyan Arab Republic

Philippines

Gabon

Singapore

Nigeria

Taiwan

Ecuador

Venezuela

Thailand

Iran

Timer

Iraq

Vietnam, Rep. of

Kuwait

Qatar

Vfet-Nam Dem. Rep.

Saudi Arabia

Abu Dhabi

VII. OCEANIA

Indonesia

Cock Islands

Fiji

(5) Comprising the Society Islands (inchuling Tahiti), The Austral Islands, the Tuamotu-Gambier Group and the Mar- quesas Islands.

(4) Including Aden and various sultanates and emirates.

(6) Trust Territory of the Pacific Islands; Caroline Islands, Marshal Islands and Marine Islands (except Guam).

ANNEXURE - II

ELIGIBLE COMMODITY LIST

1. Rolls

2. Steel including special steel and alloy steel

3. Components, attachments and spares for manufacture of trucks and tractors

4. Chemicals

5. Spares, components and raw materials for Indo-Japanese Joint Ventures

6. Components, attachments and spares for power tillers

7. Machinery, components, attachments, spares and raw

materials

8. Machinery and equipment for the National Small In- dustries Corporation of India

9. Machinery and equipment for the Bombay High Offshore Development Project

10. Fertilizer and such other items as may be mutually

agreed upon.

ANNEXURE—III

"REQUEST FOR ISSUE OF THE AUTHORISATION

TO PAY"

No

To

The Controller of Aid Accounts & Audit.

Ministry of Finance,

Department of Economic Affairs.

UCO Bank Buildinfi, Ist Floor,

Parliament Street, New Delhi-110001.

Subject :—Imports from Japan under the Japanese Grant Aid

of 2.9 billion for 1978-79

Sir,

In connection with the import from Japan under the above mentioned Grant Aid, we furnish the followins parti- culars to enable you to issue the A/P to the Bank of India. Tokyo in favour of the Supplier concerned :—

(u) Name and address of the Jnditin importer.

(b) Number, date 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 ten> dering in which case it should be indicated whether the contract has been awarded on the basij of tech- nically suitable offer with reasons, if any,

(d) Brief description of the goods.

(e) Origin of the goods.

(f) Gross C&F value of contract (in Yen).

(g) Amount of Indian age. j commission (in Yen), if any, payable in Indian rupees.

(b) Net C&F Value (in Yen) for which the ATP i" required.

(i) Name and date of the contract with Suppliers.

(j) Name and Address of the Supplier and attach -an eligible certificate (in duplicate).

(k) Payment terms and probable dates on which pay- ments under the contract will fall due.

(1) Expected date of completion of deliveries.

(n>) Documents to be presented at the time of payment to Bank of India, Tokyo (indicating No. of set* of each and their disposal).

(n) Shipment instructions (indicate if transhipment/ part-shipment permitted or not permitted).

(o) Name and Address of the Importer's bank in India.

(p) Number, date and value of the Bank Guarantee (s) indicating the period(s) upto which the same is (are) valid.

(q) Whether a contract(s) under the same Hcenoe has been placed and if BO, the No., date and value of such contract.

Yours faithfully,

ANNEXURE—IV

No.

Government of India

MINISTRY OF FINANCE

(Department of Economic Affairs)

New Delhi, the

To

The Bank of Inlia,

Tokyo Branch,

Tokyo (Japan).

Subject :—Import under Japanese Grant Aid for Yen 2.9 billion Issue of Authorisation to pay.

Dear Sirs,

In accordance with the terms and conditions of the agree- ment dated 13-3-1979 entered into with your Bank, you are

hereby authorised to pay an amount not exceeding Yen to M/s. (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 of this advice to the Government of Japan, Importers Bank, Embassy of India, Tokyo and this Ministry.

3. Payments to the suppliers in terms of the A /P will be made on the basis of shipping documents as indicated in the Appendix,

4. The banking charges including charges for handling documents if any, payable to you by the importer will also be se'tled 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, an advice in the prescribed form should be sent to this Ministry and the importer's bank.

6. No amendments to A /P may be issued in the absence of

H 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 No. dated

.

2. Importer's Banker — — They are requested to arrange to deposit the rupee equivalent of the Yen payment to the Japanese suppliers on receipt of docu- ments from the Bank of India, Tokyo Branch. The rupee equivalent of amount disbursed to the suppliers will have to be calculated by applying (he composite rate of conversion as prevailing on the date of payment to Japanese suppliers in accordance with the Public Notice No, 8-JTC(PN)/76, dated 17-1-1976 or such other Public Notices as may be issued from time to time. Interesl @ 9 per cent per annum for the first thirty days and at the rate of 15 per cent per annum for the period excess (hereof reckoned for the> period between the date of payment to the supplier a;nd the date on which the rupee equivalents are deposited into the Government Account, is required to bo deposited into the Government of India account in terms of Public Notice No. 46-lTC(PNV76, dated 16-6-1976. The interest is payable 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 iate will be intimated if and when made). It should be ensured that these deposits are made before the original set of im- port documents are handed over to the importer for Cus- toms Clearance.

These amoun's should be deposited either with the RBI, New Delhi or the S.B.I,, Tis Hazari, Delhi or remitted by means of a Demand Draft obtained by them from any Branch of the S.B.I, or its subsidiaries or any one of the Nationalised Bank-, (Drawer) drawn on and made payable to the S.B.I. Tis Hazari, Dclhi-6 (Drawee 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(PNV71, dated 5-10-1971, No. 74-ITC(PN)/74 dated 31-5-74 and 103-lTC(PN)/76, dated 12-10-1976. The head of Account to be credited is 'K-Deposits & Advances -843-CTVIL Deposit for purchases etc. abroad Purchases under Grant Aid from the Govermcnt of Japan for 1978-79/(Yen 2.9 billion Grant Aid).

One copy of the challan in original, in cases where the rupee equivalents are credited in cash at the RBT, New Dejhi or the SBI, Tis Hazari, Delhi as prescribed in Public Notice No. 132-ITC(PN)/71, dated 5-10-1971 should be sent by them to the address given below alongwith a forwarding letler giving full details of the advice notes received from the Bank of India, Tokyo Branch.

The Controller of Aid Accounts & Audit, Ministry of Finance (Department of Economic Affairs), Ist Floor UCO Bank Building, Parliament Street, New Delhi-1.

In cases where the rupee 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 cal- culated should be furnished to this Department.

The banking charges, of the Bank of Inlia, 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 Tndia, Tokyo.

5. The Under Secretary (TCM) Ministry of Finance Depart-

ment of Economic Affairs, New Delhi.

Accounts Officer

ANNEXURE—V

Guidelines for Procurement of Commodities under Japanese Grant Aid

I. Introduction

The proceeds of the Gran' Aid of Yen 2.9 billion extended by the Government of Japan shall be used with due atten- tion to efficiency and non-discrimination among the eligible source countries for procurement of commodities and services incidental thereto jn accordance with the procurement uroce- dures set out in this Guidelines.

II. Selection of Procurement Procedure

The following procedures shall be applicable to the pro-

curement of Listed Commodities under the Grant Aid :—

(1) Formal Open Interna'ional Tendering

(2) Formal Selective International Tendering

(3) Informal International Competitive Procurement

(4) Direct Purchases.

(a) In the case of the procurement by the government and/or a government agency, Formal Open International tendering or Formal Selective International Tendering shall be applied.

(b) In case of non-government procurement, any of the

procedures mentioned above may be applied.

(c) It is, however, possible under this Grant Aid to accept the procurement through Informal International Competitive Procurement or Direct Purchases in the following cases :—

(i) Where the amount of a proposed contract does not exceed y 300,000,000.—, US S 1,500,000.—or Pound Sterling 800,000.—in terms of currency of the con- tract

(ii) Where the number of qualified suppliers is limited.

(iii) Where purchase of a commodity by reference to a particular specification, trade name or designation is necessary in order to assure the inter-changeability or standalization of equipment or because of spe- cial design requirements.

(iv) Where either procedure (1) or procedure (2) by the reason other than the case (i), (ii) and (iii) above (e.g. in case of emergency procurement) is inapplicable.

(d) In any case mentioned above, Importer shall (jet a confirmation of the Boirower concerning the eligibility of procurement in accordance with the procurement procedure set forth in this Section 1-3.

III. Conditions of Contract

Any contract to be financed under this Grant Aid shall

fulfill Ihe following conditions.

1. Conditions of Commodities:

As the use of this Grant Aid is limfted to financing! ex- penditures for Listed Commodities produced in the eligible source countries, the subject icms of Ihf Contract shall be Listed Commodities produced in the eligible source countries and to be shipped to an Indian port from the eligible source countries. Tf the imported portion from non-eligible source countries is less than thirty per cent (30%) of the following formula, Listed Commodities will be financed even if the imported portion from non-eligible source countries is inclu- ded as a¹ part of the Listed Commodities in the items of the Contract Formula mentioned above :

Imported Price-(-Import Duty

X 100

Supplier's FOB Price

2. Conditions of Supplier :

The Supplier shall be a national of the eligible source countries, or a juridical person registered in the eligible source countries.

3. Conditions of Importer :

The procurement of any Commodities by the armed forces or their affiliated organizations of India shall not be eligible under the Loan.

4. Denomination of Currency :

The Contract shall be fixed and payable in Japanese Yen. United States Dollar, or Sterling Pound without any fraction less than one Yen (Y 1.00), One cent (c 1,00) or One Penny (d. 1.00) respectively.

3. Standard Form of Contract:

(a) The following items shall be inserted in the Contract

to be financed under this Grant Aid:—

(1) Name and Nationality of Supplier and Importer

(2) Number and Dale of the Contract

(3) Name and Origin of the Commodities

(4) Contract Price and Quantity

(5) Payment Terms

(6) Delivery and Shipment Schedule

(7) Other General Regulations

(b) The Contract duly signed by both parties or purchase order by the Indian Importer placed on the overseas supplier supported by order confirmation in writing by the overseas supplier, or their photo copies, arc also acceptable.

(c) The following statement of eligibility by the Supplier

shall be added to each contract:—

"I (We) hereby state that my (our) company has been registered in — — (eligible source coun- try)."

6. Payment:

Each payment shall be made on and after Ihe date of

signing of the Grant Aid i.e. 17 March, 1979.

In principle, Ihe full amount of a shipment shall be paid to the supplier on cash basis at each time of presentation of the relative shipping documents to the Bunk of Tndia, Tokyo.

IV. International Tendering:

When International Tendering is applied, the procurement shall he made in accordance with the following principles, among others.

1. Advertising:

On all contracts subject to Formal Open International Tendering, invitations to bid shall be advertised In at least one newspaper of general circulation in India.

2. Time Interval Between Invitation and Submission of Bids :

The time allowed for preparation of bids \1ill depend to a large extent upon the magnitude and complexity of the contract. Generally not less than 30 days should be allowed for international bidding. The time allowed, however, should be governed by the circumstances relatina to each contract.

3. Bid Opening Procedures :

The date, hour and place for the latest receipt of b?ds and for the bid opening should be announced in the invita- tions to bid and all bids should be opened publicly at the stipulated time. Bids received after this time should be re- turned unopened. The name of the bidder and the total amount of each bid and of any alternative bids, if they have been requested or permitted, should be read aloud and re- corded.

4. Bid Bonds or Guarantees :

In the case of bidding, bid bonds or bidding guarantees are a usual requirement, but they should not be set so hijh as to discourage suitable bidders.

Bid bonds or guarantees should be released to unsuccess- ful bidders as soon as possible after the bids have been opened

5. Standards:

If national standards with which equipment or materials must comply are cited, the specifications should state that commodities meeting Japan Industrial Standard or other internationally accepted standards, which ensure an equal or higher quality than the standards mentioned, will also be accepted.

6. Use of Brand Names :

Specifications should be based on performance capability and should only prescribe brand names, catalogue numbers, or products of specific manufacturer if specific spare parts arc required or it has been determined that a degree of standardization is necessary to maintain certain essential features.

In the latter case the specifications should permit offers of alternative commodities which, have similar characteristics and provide performance and quality at least equal to those specified.

7. Guarantees and Performance Bonds :

Bidding documents may require some form of surety for guarantees, if necessary. This surety can be provided either by a bank guarantee or by a performance bond.

8. Liquidated Damages:

Liquidated damages clauses, if necessary, should be in- cluded in bidding documents when delays in delivery will result in extra expenditures, loss of revenues or loss of other "benefits to the Importer.

9. Force Majeure:

The conditions of the Contract included in the bidding documents should contain clauses, when appropriate, stipula- ting that a failure on the part of the parties to perform their obligations under the contract shall not be considered a default under the Contract if such failure is the result of an event of force majeure (to be defined in the conditions of the Con- tract).

10. Settlement of Disputes:

Provisions dealing with the settlement of disputes should be included in the conditions of the contract. It is desi- rable that the provisions should be based on "Rules of Con- ciliation and Arbitration" which have been prepared by the International Chamber of Commerce or on such other arrange- ments as may be mutually acceptable to the Indian Importer and the overseas Supplier.

11. Evaluation

ANNEXURE—VI

[Ref. Section V—Para V(ii)J

GUARANTEE BOND

To

The President of India

In consideration of the President of India (hereinafter called 'the Government') having agreed to arrange for pay^ ment in Yens/US Dollars and £, Sterling for the import of

. •• by ——— (hereinafter

called the 'importer') against the import licence No. ——•—- dated —•—— issued under the terms and condi- tions of Japanese Grant Aid of Yen 2.9 billion, we Bank, at the, request of the importer hereby undertake to arrange to deposit, the amounts of disbursements made by the Bank of India, Tokyo converted at the prevailing composite rate of conversion laid down in CCI&E's Public Notice No. 8-ITC(PN)/76 dated 17-1-76 or as notified from time to time in Public Notices/A.D. Circulars within ten days of the receipt of advice of payments for credit to the Government account in the manner and against the appropriate Heads of Accounts as indicated by the Government of India under the said Grant Aid together with interest thereon at the rate of 9 per cent per annum for the first thirty days and at the rate of 15 per cent per annum for the period in excess thereof reckoned from the date of payment to the overseas supplier to and inclusive of the date of deposit of Rupee equivalent for credit to the Government account. The negotiable set of import documents received from the Bank of Tndia, Tokyo, will be released to the Importer only after the rupee deposits contemL plated above have been made.

2. We, the (Bank), also undertake to indemnity and keep Indemnified the Government against any default in payment by the importer of any sum that may be due and payable from time to time by the importer to the Government at such place and in such manner as the Government may from time to time direct, such sums not exceedings Rs. , or any part thereof, for the time being due and payable by the importer, together with interest thereon at the rate of 9 per cent per annum for the first 30 days and the rate of 15 per cent per annum for the pfriod excess thereof reckoned from the date of the payment to the over- seas supplier. The decision of the Government as to any de- fault in the said payment by the importer, or on his part and in regard to the amount payable to the Government by us—¹—

(Bank), shall be final and binding on us

(Bank).

3, We,— — (Bank), further agree that In case of in- crease in the value of imports or increase in the value of unfulfilled deliveries under the contract as a result of chance in the coposite rate of exchange mentioned in para 1 above, the amount of this guarantee bond will be adjusted as on the date when the change take place, in proportion to this change.

(2) Our obligation under the Bank Guarantee in question

IV. We request that the bank guarantee may please be

have been fully discharged.

released and returned to us for cancellation.

Your* faithfully,

Authorised Agent for and on III. We confirm that the interest and banking charges of the Bank of India, Tokyo and charges, if any, of overseas suppliers Bankers relative to this transaction have been remitted by us to the Bank of India, Tokyo.

behalf of the Bank.

PRINTED BY THE MANAGER, OOVT. Of- INDIA PRESS, RING ROAD, NEW DELHI-110064

AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI-110054, 1979