REGISTERED No. D. (D.)-72 The Gazette of India
EXTRAORDINARY
PART I—Section 1
PUBLISHED BY AUTHORITY
No. 20] NEW DELHI, FRIDAY, JANUARY 25, 1980/MAGHA 5, 1901
Separate paging Is given to this Part In order that it may be filed as a separate compilation
(45)
1142 GI/79—1
46 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]47
4S THE GAZETTE OF INDIA : EXTRAORDINARY [FAULT I—SEC. 1]MINISTRY OF COMMERCE AND CIVIL SUPPLIES
(Department of Commerce)
IMPORT TRADE CONTROL
PUBLIC NOTICIJ NO. 2-ITC(PN)/80
New Delhi, the 25th January, 1980
Subject.—Terms and conditions governing the issuance of import licem.es for import of steel items and services necessary for the transportation thereof to ports in India from Japan under Japanese Grant Aid for 1979-80.
File No. IPG/39/1S/78, —The terms and conditions govern- ing the issuance of import licences for import of steel items and services necessary for the transportation thereof to ports in India from Japan under Japanese Grant Aid for 1979-80 of Yen 1-5 billion as given in Appendix to this Public Notice are notified for information.
C. VENKATARAMAN,
Chief Controller of Imports & Exports
APPENDIX TO DEPARTMENT OF COMMERCE PUBLIC NOTICE NO. 2-ITC(PN)/S0
Dated, the 25th January, 1980
Conditions for import of Steel items & services necessary for the transportation thereof to ports in India from Japan under Japanese Grant Aid for 1979-80 of Yen 1.5 billion.
Section I.—General Conditions :—
I(i) The Japanese Grant Aid for 1979-80 of yen 1.5 billion (C1F) is intended to be used for financing payments to Japanese Suppliers for import of steel items and services necessary for the transportation of these items to ports in India by the Steel Authority of India Ltd.
l(ii) The import licences should be issued for an aggregate amount not exceeding yen 1.5 billion (CIF) in favour of the Steel Authority of India Limited, and should bear the superscription "Yen 1.5 billion Japanese Grant Aid for 1979- KO". The licence code for the fir=t mid second suffix will bo "S/JN".
I(iii) No remittance of foreign exchange will be permitted against the import licence, except bank charges to the Bank of India, Tokyo which may be remitted through normal banking channels, payment towards Indian Agent's Com- mission, if any, should be made in Indian rupees to the agents in India. Such payments, however, will form part
49
of the licence value and will, therefore, be charged to the licence.
I(iv) The steel items should be procured only from Japan
under this Grant Aid.
I(v) The import licences will be issued on CIF basis with an initial validity upto 15-3-1980. In case the licensee needs further extension, the licensee should submit to the CCT&E a proposal seeking on extension in the validity period of the Import Licence alongwith full justification and explanation as to why the shipment and payments could not be completed within the initial vuliduy period. Such requc-ti should in- variably be referred by the CCI&E to the Under Secretary (T.C.) Department ol Economic Affairs, Ministry of Finance, Noith Block. New Delhi for consideration.
l(vi) The contract should provide for payment on cash basis i.e. on presentation of shipping documents by the lapan- cse suppliers to the Bank of India, Tokyo. It should also provide for the period of delivery as follows :—•
"delivery to be completed by 15-3-1980".
I(vii) The contract value (CIF basis only) should be ex- pressed in Yen (ii action of yen should be omitted) and should exclude Indian Agent's Commission, if any. In no circumstances the contract value should be expressed in any other currency. The FOB cost, freight & insurance amount should be shown separately but it should be clarified in the contract itself whether the freight will be payable on actual basis or whether tbe freight charges indicated therein would be the amount payable irrespective of the actual charges.
I(viii) The purchase contract should be- entered into only with the Japanese nationals or Japanese juridical persons controlled hy Japanese nationals. A certificate fin duplicate) showing the eligibility of the supplier should be added to each contract.
Section II.—The following provision should be specifi-
cally incorporated in the supply contract :—
IT(i) The contract is arranged in nccordance with tho Agreement dated the 5th November, 1979, between the Govern- ment of India and Japan concerning the Grant Aid of Yen 1 5 Iv'llion for 1979-SO and will be subject to the approval of both the Governments.
Il(ii) Payments to the suppliers shall be made through an "Authorisation to pay1 (A/P) which will be issued by the Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, Par- liament Street, New Dclhi-l 10001 in favour of the Bank of India, Tokyo under the Japanese Grant Aid for 1979-80,
Il(iii) The Japanese suppliers aercc to furnish such in- formation and documents as may be required by the Govern- ment of India on the one hand and the Government of Japan on the other.
Il(iv) The Japanese supplier agree to make shipping arran- gements in consultation with the Embassy of India, Tokyo and that for this purpose he would keep the Embassy of India, Tokyo informed of the delivery schedule of the goods in- volved and notify the Embassy of India, at least four weeks in advance of the shipping required so that suitable arrange- ments should be made. In exceptional cases, where the importer require it this period of notice may be reduced. The Japanese supplier should BJSO agree to send a cable advice to the importer after each shipment giving the neces- sary details and a copy thereof should be sent to the Em- bassy of India, Tokyo.
Section III.—Contract Approval by Governments of
India and Japan :—•
III(i) As soon as the orders are finalised, the importer should forward to the tinder Sfcreturv ,'T.A ), Derailment of Economic Affairs, Ministry of Finance, North Block, New Delhi 4 copies of the contract duly signed by both parties or purchase orders by the Indian importer placed on the Japanese supplier supported by order confirmation in writ- ing by the Japanese supplier or their photo conies complete in all respects together with two copies of the "Request for issue of A/P" in the form at Annex I. The above proce- dure will also apply to all contract amendments causing es- sential modifications to the contents of contracts or in its price.
50 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. l\Ill(ii) The Ministry of Finance (DEA) T.C.M. Section will arrange to send two copies of the contract to the Go- vernment of Japan for their approval for financing under the Japanese Grant Aid for J 979-80 of Yen 1.5 billion, and one set of the documents mentioned in (i) above will also be sent to the CAA&A simultaneously.
lll(iii) On receipt of the conflict approval f;om the Government of Japan, the T. C'.M. Section of the Depart- ment of Economic Affairs, Ministry of Finance, North Block will inform the Controller of Aid Accounts and Audit, Department of Economic Affairs, Ministry of Finance, UCO Bank Building, Parliament Street, New Delhi-110001 of the same who will issue an 'Authorisation to Pay' (A/P) to the Bank of India, Tokyo in tho form at Annexure II for making payment to the Japanese supplier. Copies of the A/P will be endorsed to the Embassy of India, Tokyo, the impwier, importer's Bank in India and T. C. M. Section, Department of Economic Affairs, Ministry of Finance.
UKiv) On receipt of the Authorisation to Pay (A/P) the Bank, of India, Tokyo will intimate the fact of this receipt to the Japanese supplier under intimation to the Government of Japan, Embassy of India, Tokyo, the importers' Bank in India and the CAA&A.
Ill(v) The Japanese supplier shall, after effecting shipment present through his bankers the documents specified in tha A /P to the BO1, Tokyo, If the documents arc found to ho in order, the Bank of India, Tokyo will release the amount specified in the documents to the Japanese supplier through his bankers.
Ill(vi) Banking charges payable to the Bank of India, Tokyo for arranging the payment to the Japanese supplier shall be settled by (he concerned importer's bank in India by remittances to the BOI, Tokyo through normal banking channel without affecting the Government of India's account.
Section IV—Responsibility for rupee deposit:—
IV (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 India or any of the nationalised banks as mentioned in (O) in Annexure I who should release these negotiable set of documents to the importer concer- ned only after ensuring that the rupee equivalent of the Yen Payments made to 'he J;ipjnese supplier alongwith interest charges thereon calculated at the rate of 9 per cent per annum for the first thirty days and at 15 per cent 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-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 suppliers and also the day on which rupee depo- sits is made into Government account vide Public Notice No. 74-fTCfPN)/74 dated 31-5-1974 BS modified under public Notice No. 103-ITC(PN)/76 dated 12-10-1976. The exchange rate to be adopted for computing the rupee equivalent of the Yen Payment will be the prevailinR composite rate of exchange as laid down in CCT&E Public Notice No. 8- TTC (PN)/76 lated 17-1-1976 or ,-K may hi- notified b" Government from time to time through Public Notices of CCT&E or through Exchange Control Circulars of the Reserve Bnnk of Indin, Any chnnjze in tliis regard •"> .Os.i in regard to the rate of interest will be notified as and whm necessary. // will he the responsibility of the Indian Bank concerned to ensure that the amounts due are correctly deposited into Government Account before the import docu- ments are handed over to the importers. The importer should also ensure that the amounts due are correctly depo- sited into Govt, account before taking delivery of the docu- ments from their bankers. The Head of Account to which the above rupee deposits should be credited is "K-Deposits and Advances-843-Civil Deposits—Deposits for purchases etc., abroad-purchase under Grant Aid from the Govern- ment of Japan" for 1979-80, Grant for purchase of the steel items.
IV(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 mfans 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 ^nd made payable to the Stale Bank of India, Tis Hk'zari Branch, Delhi-6 (drawee and Payee) for credit to Government account as contemplated in Public Notices No. 184-TTC (PN)/68 dated 30-8-1968, No. 233-ITC (PN)/68 dated 24-10-1968 and No. 132-ITC (PN)/71 dated 5-10-1971, No. 74JTC (PN)/74 dated 31-5-1974 and No. 103-ITC (PN)/76 dated 12-10-1976.
IV (iii) The concerned bank in India shall also furnish fuch additional deposit in the; sitine 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 columns in the Challnti it should be ensured by the Impoiters/ their bankers that the information prescribed in para 2 of Public Notice No. 132-ITC (PN)/71 tinted 5-10-1971 ami also in Public Notice No. 74-ITC(PN)/74 dated 31-5-1974 read with Public Notice No. 103-ITC (PN)/76 dated 12-10-76 is invariably indicated in the column "full particulars of remittances and authority (if any)" of the challan. The fol- lowing particular should invariably be furnished in the Trea- sury Challans i
(a) Ministry of Finance 'A/P' (Authorisation to Pay)
No. & date
(b) Amount of Yen Currency in respect of which depo- sits are to be made together with rate of conver- sion adopted.
(c) Date of payment to the Japanese 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 date of payment to the Japanese supplier upto and inclusive of the date of deposit of rupee equi- valents into Government account).
Thereafter the Treasury Challans evidencing the rupee deposit should be sent by registered Post to the CAA&A in- dicating reference to the A /P issuid by him and also enclos- ing copies of invoice and shipping documents.
Note.—Importer's Banks m India should ensure that the rupee deposits are invariably made within 10 days of the receipt of the advice of payment and nego- tiable shpping documents from 1lle Bank of India, Tokyo and that the CAA&A, Ministry of Finance (DEA), New Delhi is informed immediately after.
IV(lv) The concerned bank in India should also endorse the amount of rupee deoosits on ths exchange control copy of the licence and send the requisite "S" Form to the Reserve Bank of India, Bombay.
Section V.— Miscellaneous provisions :—
V(i) Reports on the utilisation of the Grant Aid :
The importer 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 and Audit, Department of Economic Affairs, Ministry of Finance, UCO Bank Building, Parliament Street, New Delhi.
V(ii) Notifying Suppliers of Special Conditions :
The importer should apprise the supplier of any special provisions in the import of yteel items under \hh Grunt Aid which may affect the suppliers in carrying out the transac- tion.
V(iii) Disputes :
It should be understood that the Government of Jndia will not undertake any responsibility for dispute, if any, that may arise between the importer and the suppliers. The conditions to be fulfilled by the supplier before payment by the Bank of Tndia, Tokyo must be clearly spelt out bv the importer in Annexure I under "Terms of Payment". Provi- sion dealing w:th a settlement of diputes be included in the condition of contract.
V(iv) Future Instructions :
The importer 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 partaining to the import!, and foi meeting all obligations under the Grant Aid for 1979-80 from Japan.
V(v) Breach or violation :
Any hrcach or violation of the conditions set forth in Ine above clauses will result in appropriate action under the Imports and Exports (Control) Act.
V(vi) List of Anncxures ;
Anncxure T :—Request for issue of A/P Annexure II :—Form of A/P.
ANNEXURE I
'REQUEST FOR ISSUE OF THE AUTHORISATION
TO PAY-
NO. To
The Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affaiw, UCO Bank Building, 1st Floor, Parliament Street, New Dclhi-llOUOl.
Subject.—Import of steel items & services necessary for the transportation thereof to ports in India from Japan under the Japanese Grant Aid for 1979-80,
Sir,
In connection with the import of steel items from Japan under the above mentioned Grant Aid, we furnish the following particulars 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, 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 limited open tendering in which case it should be indicated whether the contract has been awarded on ihe IIMSIS of technically suitable offer with reasons, if ,iny.
(d) Brief description of the goods.
(e) Origin of the goods,
(f) Gross CIF Value of contract (in Yen).
(g) 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
required.
(i) Name and date of the contract with Japanese
Suppliers.
(j) Name and Address of the Japanese Supplier pnd
attach an eligibility 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.
(m) Documents to be presented at the time of payment to Bank of India, Tokyo (indicating No, of sets of each and their disposal).
(n) Shipment instructions (indicate if transhipment/
partshipment permitted or not permitted).
(o) Name and Address of the Importer's bank in
India.
Yours faithfully,
51
ANNEXURE II
No. F.
Government of India
Ministry of Finance
(Department of Economic Affairs)
Now Delhi, the
To
The Bank, of India
Tokyo Branch,
Tokyo (Japan).
Subject.—Import of steel items under Japanese Grant Aid of Yen 1.5 billion for 1979-80—-lasue of Authori- sation to pay.
Dear Sirs,
In accordance with the terms and conditions of the agreement dated entered into with your Bank, you are hereby authorised to pay an amount not exceeding Yen to M /s as pel' details given in the Appendix.
2. Please advise the Supplier of the fact of receipt of this Authorisation to Pay (A/P) and endorse a copy 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. Banking charges including charges for handling docu- ments, and charges of Overseas Suppliers, Bankers if any, payable to you by the importer, will be settled directly by the importer's bank,
5. As and when any payment is made by you on the basis of shipping documents etc. presented by the Japanese supplier, an advice in the pres';r'bed form should be seni to this Ministry and the importer's bank.
6. No amendment to this A /P may be advised 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 theii
letter No. •• . • dated — — —.
2. Importer's Bankers — They are requested to arrange to deposit the rupee equivalent of the Yen payment to the Japanese suppliers on receipt of documents from the Bank of India, Tokyo Branch. The rupee equivalent of amount disbursed to the suppliers will have to be calculated by applying th.e composite rate of conver- sion as prevailing on the date of payment to Japanese sup- pliers in accordance with the Public Notice No. 8-ITC (PN)/76 dated 17-1-76 or such other Public Notices as may be issued from time to time. Interest 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 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 tha Government account, h required to be deposited into the Government of India account in terms of Public Notices No. 46-lTC(PN)/76 dntcd 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 rate will be intimated if and when made). It should be ensured that these deposits are made before the original set of import documents aro handed over to the importer for Customs Clearance.
These amounts should be deposited either with the RBI, New Delhi or the S.B.T.. Tis Haz.ari, Delhi or remitted by means of a Demand Draft obtained by (hem from nnv Branch of the S.B.T or its subsidiaries or any one of the Nnt'onalised Bnnks (Drnwei) dniwi on and vnnde p;ivnbl" to the S.B.T., Tis Hazari, Delhi-6 (Drawee and Payre). In this connection their attention is also invited to the provisions of the Public Notices No. 233-ITC-(PN)/68 dated 24-10-68,
52 THE GAZETTE OF INDIA : EXTRAORDINARY |PARr 1—SEC 1JNo. 132-1TC-(PN)/71 dated 5-10-1971, No. 74-1TC (PN)/74 dated 31-5-1974 and 1O3-1TC(PN)/76 dattd 12-10-19/6. 'Inc. head of Account, io be crediiert is. 'K-DepOMts & AOvan^s- 843-CIVIL Deposits—Deposit for piirchir^j CLC. abioad Pur- chases under Grant Aid from Govt. ot I span lor 1979-80 under detailed head' Yen 1 5 billion gr.iin aid fur purchase of ••tcel items.
One copy of the challan in original, in cases where the rupee equivalents are credited in cash at the RBI, New Delhi or the SBT, lis Hazmi, Delhi ;>s prescribed in Public Notice No. 132-ITC U'N)/71 dated 5-10-1971 shuuki be sent by them to (he .iritlieyj gu'e-n below alongwlth a for- warding letter giving full Ucuils of the advice noies jeeei- ved from the Bank of India, Tokyo Branch.
The Controller of Aid Accounts & Audit, Ministiy of Finance (Department of Economic Aikiir.s), 1st Floor, UCO Bank Building. Parliament Street, New Del hi-1.
In cases where the rupee equivalents are remitted by means of demand drafts as laid down in the Public Notice da.1ed 24-1O-196M mentioned above, intimations thereof should be sent to the address given above. In all cases, full particulars of the rupee equivalent deposited alongwilL the amount of interest paid and the period for which interest hus bten cal- culalted should be furnished to this Department,
The banking charges, of the Hank of India, Tokyo Branch, including charges of the ccrseus supplieia 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, Depart-
ment of Economic Affairs, Nev Delhi.
Accounts Officer,