REGISTERED No. D(D)-72
The Gazette of India
EXTRAORDINARY
PART I—Section 1
PUBLISHED BY AUTHORITY
No. 21] 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
53
1143 GI/79
54 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]55
56 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. i;.57 Awibe transportation of the machinery to ports in India from Japan under Japanese Grant Aid for 1979-80 of Y"n On" bil- lion (1,000,000,000)
Section I—General Condition*
Hi) The Japanese Grant Aid for 1979-H0 of Yen one bil-
lion (CIF) is intended to be used for financing payments to
Japanese Supplier* for import of machinery, accessories, spare
parts and services necessary for the transportation thereof to
ports in India.
I (ii) The import licences should be issued foe an aggregate
amount not exceeding Yen 1.055 billion (CIF) in favour of
the importer, and should bear the superscription "Yen one
billion Japanese Grant Aid for 1979-80". Out of the aggregate
amount of Yen 1.055 billion, Vim 55 million represents Indian
Agency Commission payabfe in Indian rupees. The licence code
for the first and second suffix will be "S/JN".
I (ill) 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 ban-
king channels, payment toward^ Indian Agent* Commission
if any, should be made in Indian rupees to the agents hi
India, Such payments, however, will form part of the licence
value and will, therefore, i be charged to the licence.
I (iv) The machinery, accessories & spare parts should be
procured only from Japan under this Grant Aid.
I (y) The import licences will be issued on CIF basis with
an initial validity upto 31-3-1980. In case the licensee needs
further extension, the licensee should submit to the CCI&E
a proposal seeking an extension in the validity period of the
Import Licence alongwith f'Jll justification and explanation aa
to why the shipment and payments could not be completed
within the initial validity period. Such requests should invari-
ably be referred by the CCI&E to the Under Secretary (TC.)
Department of Economic ArTnits, Ministry of Finance, Ncrth
Block, New Demi for consideration.
I (vi) The contract should provide for payment on cash
basis i.e. on presentation of shipping documents by the Japanese
suppliers to the Bank of India, Tokyo. It should also provide
for the period of delivery M follows :—
'delivery to be completed by 15-3-1980.'
MINISTRY OF COMMERCE & CIVIL SUPPLIES
I (vi) The contract value (CIF basis (inly) should be ex-
pressed in Yen (fraction 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 cent, freight and insurance amount
should be shown meparately but it should be clarified in the
contract itself whether the freight will be payable on actual
basis or whether the freight charitss indicated therein would
be the amount payable irrespective of the actual charges.
(Department of Commerce)
PUBLIC NOTICE NO. 3-ITC(PN)/8O IMPORT TRADE CONTROL
I (viii) The purchase contract should be entered into only
with the Japanese nationals or Japanese juridical persons con-
trolled by Japanese nationals. A certificate (in duplicate)
showing the eligibility of the suoplier should be added to each
contract
New Delhi, the 25th January, 1980
Section II—The following provision should be specifically
incorporated In the supply contract :—
Subject :—Terms and conditions governing the issuance of
import licences for .raport of (a) machinery for the
construction of irrigation facilities and (b) services
Memory for the transportation of the machinery to
ports in India from Japan under Japanese Grant
Aid for 1979-80.
II (i) The contract is arranged in accordance with the
Aamwnent dated ihe 5th Nov., tP79 between tto Govern-
ment of India and Janmn concc-ninu the Gnint Aid of Yen
one billion for 1979-80 and -will be subject to the approval of
both the Governments.
n (11) Payments to the suppliers shall be made through an
•Authorisation to pay' (A/P) which will be issued by the Con-
troller of Aid Accounts & Audit, Ministry of Finance, Depart-
ment of Economic Affairs. UCO Bank Building, Parliament
Street, New Demi-110001 fa favour of the Bank of India,
Tokyo under the Japanwo Grant Aid for 1979-80.
FU" No. IPC/39/18/78.—The terms and condition* gover-
ning the issuance of import licences for import of (a) machinery
for the construction of irrigation facilities and (b) services
necessary for the transportation of the machinery to ports in
India from Japan under Japanese Grant Aid for 1979-80 of
Yen One billion (1,000,000,000) a? given in Appendix
to this Public Notice are notified for Information.
C. VENKATARAMAN, Chief Controller of Imnorts &
Exports
II (iii) The Japanese suppliers agree to furnish such in-
formation and documents as may be required by the Govern-
ment at India on the one hand and the Government of Japan
on the other.
*
APPENDIX
Licensing Condition* for import of (a) machinery for th*
construction of irrigation facilities nnd (b) serviM* necessary
n (iv) The Japanese supplier agree to make shipping m-
rongetnents in constitution with UwEmbassy of India, Tokyo
"nd that for this purpose he would keep the Embassy of India.
Tokyo informed of the delivery schedule of the goods Involved
58 THE GAZETTE OF INDIA : EXTRAORDINARY [PA*T I—SEC. 1]and notify the Embassy of India, at least four w mb in advance of tic shipping required so that writable arrangements should be made. In exceptional case*, where the importer require it this period of notice may be reduced. The Japanese supplier should also agree to send a cable advice to the im- porter after each shipment giving the necessary details and a copy thereof should be sent to the Embassy of India, Tokyo.
Section III Contract Approval by Governments of India
and Japan,
in (i) Aa soon as the orders ore finalised, the importer should forward to the Under Secretary (T.A.), Department 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 writing by the Japanese supplier or their photo copies complete in all res- pects together with two copies of the "Request for issue of A/P" in the form at Annex L The above procedure will also apply to all contract amendments causing essential modifica- tions to the contents of contracts or in its orice.
Ill (ii) The Ministry of Finance (DEA) T.C.M. Section will arrange to send two copies of the contract to the Govern- ment of Japan for their approval for financing under the Japanese Grant Aid for 1979-80 of Yen one billion, and one set of the documents mentioned in (i) above win also be sent to the CAA&A simultaneously.
HI (iii) On receipt of the contract approval from the Gov- ernment of Japan, the T.C.M. Section of the Department of Economic Affairs, Ministry 'jf Finance, North Block will in- form the Controller of Aid Accounts & Audit, Department of Economic Affairs, Ministry of Finance, UCO Bank Building, Parliament Street, New Delhi-11 QUO 1 of (he same who will issue an 'Authorisation to 7'ay' (A/P) to the Bank of Ind'a, Tokyo in the 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 importer, importer's Bank in India and T.C.M. Section, Department of Economic Affairs, Ministry of Finance.
Ill (iv) 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, th* importers' Bank in India and the CAA&A.
III (v) The Japanese supplier shall, after effecting shipment present through his bankers the documents specified in the A/P to the BOI, Tokyo. If the documents are found to be in order, the Bank of India, Tokyo will release the amount specified in the documents to the Japanese supplier through hi" bankers.
m (vi) Banking charges pnyable to the Bank of India, Tokyo for arranging the payment to the Japanese supplier shall be settled by the concorned 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—ResDonsibilitv for rupee deposit
IV G) The original negotiable shipping documents win b* invariably forwarded by the Batk of India, Tokyo, to the con- cerned Importer's bank in India which would be a branch of the State Bank of India or any r-f the nationalised harks as mentioned in (C) in Annexure-I who should release these negotiable set of documents to th^ importer concerned only after ensuring thai: the rupee equivalent of the Yen Pay- ments made to the Japanese sunnlle,- alonawith intettst charftes thereon calclulated at the rate of 9 per cent ner annum for the first thirty days and at 15 per cent for the period in excess thereof reckoned from the date of payment tv the Bank of India, Tokyo to the Japanese Supplier to the date of actual rapee deposit, is deposited into Government of India account in terms of the Public Notice No. 46-lTC(PN)/76 cited 16-6-76. The interest is payable for both the days i.e. the day cm which payment is made to the Japanese supplier and also the day on which rupee deposits is made into Government account vide Public Notice No. 74-TTC(PN)/74 dated 31-5T1974 an modified under Public Notice No. 103-ITC(PNV 76 dated 12-10-1976. The exchange rate to be adopted for
,computing the rubee equivalents 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 a may be noticed by Government from time to time through Pub lie 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 be notified as and when necessary. It will be 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 imoprters. The importer should also ensure that the amounts due are correctly deposited into Government account before taking delivery of the documents from their bankers. The Head of Account to which the abovo rupee deposits should be credited is 'K-Dcpcsits and Advance 843-Civil Deposits^Deposits tor purchases etc., abroad-purrhase under Grant Aid from the Government of Japan" for 1979-80, Grant for purchase of the joods/services for construction of Irrigation facilities.
IV (ii) The amount referred to aibove should be deposited in cash to the credit of the Government either in the Reserve Bank of India, N"w Delhi, i.r StJte Bank of India, Tis Hazan, 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 Naticnalised Banks (Drawer) drawn on and made payable to the State Bank of India, Tis Hazari Branch, Delhi 6 (drawee and payee) for credit to Government account as contemplated in Public Notices No. 184-ITC(PN)|68 dated 30-8-1968, No. 233-JTC (PN)/68 dated 24-10-1968 and No 132-ITC (PN)/71 dated 1-10-1971 No. 74-lTC(PN)/74 dated 31-M974 and No. 103-ITC(PN)[76 dated 12-10-76.
IV (iii) The concerned bank in India shall nlso furnish such additional deposit in the sane 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 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 J-I0-U7: and niso in Public Notice No. 74-ITC(PN)|74 dated 31-5-1974 read with Pub- lic Notice No. 103-ITC(PN) 76 dated 12-10-1976 is in- variably indicated in the column "full particulars of remit- tances and authority (if any)" of the chall.in. 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 depo- sits are to be made together with rate of con- version 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 oe 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 depo- sit should be sent by registered post to the CAA&A indica- ting reference to the A /P issued by him and also enclosing copies of invoice and shipuing documents
Note:—Importer's Banks in India should ensured that the rupee deposits are invariably made within 10 days of the receipt of the advice of payment and nego- tiable shipping documents from the Bank of Inaia, Tokyo and that the CAA&A Ministry of Finance (DEA), New Delhi is informed Immediately there- after.
IV(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
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 shipment!, 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 Parliamem Street, New Delhi.
The importer should apprise the supplier of any special provisions in the import of goods under this Grant Aid which may affect the suppliers in carrying out the transac- tions.
V(iii) Disputes:
It should be understood that the Government of India will not undertake any responsibility for dispuic 'f anv. that may arise between the importer and the suppliers. The condi- tions 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". Provi- sions dealing with a settlement of disputes, be included in the condition of contract.
V(iv) Future Instructions :
Tho importer shall promptly comply with any directions, instructions or orders issued by the Government of Indii from time to time rendrdiun any and all matters arising from or pertaining to the imports ard for meeting all obligations under the Grant Aid for 1979-80 from Japan.
V(v) Breach or violation :
Any breach or violation of conditions set forth in the above clauses wfll result io appropriate action under the Imports and Exports (Control) Act.
V(vi) list of Annexures :
Annexure I.—Request for issue of Ay P.
Annexure II.—Form of A / P.
"REQUESTS FOR ISSUE OF THE AUTHORISATION TO PAY"
No.
To
The Controller of Aid Accounts k Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, 1st Floor, Parliament Street, New Delhi-110001.
Subject.—Import of machicwry /sn:irc pain for the construc- tion of irrigation facilities; and services necessary for the transportation of the machinery/ spare parts to ports in India from Japan under the Japanese Grant Aid for 1979-80.
Sir,
In connection with the import of above-mentioned machi- nery and spare parts from Japan under the above mentioned Grant Aid, we furnish Lhc fo'l iwini 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 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 bti'cd en direct purchase or limited open tendering in which caso it should be indicated whether tire contract has been awarded on the basis of technically suitable offer with reasons if any.
(d) Brief description of the goods.
to
(e) Origin of the goods.
(0 Gross d lF value of coi.lraci (in Yen).
(g) Amount of Indian agents commi"ion (In Yen),
if any, payable in Indian rupees.
(h) Net CIF Value (in Yen) for which the A /P li
required.
(i) Name and date of the contract with Japanese Sup-
pliers.
(j) Name and Address of the Japanese 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) Expected date of completion of deliveries.
(m) Documents to be presented at the time of payment to Bank of India. Tikvo 'indicnimit No. of seta of each and their disposal).
(n) Shipment instructions (indicate if transhipment /part-
shipment permitted or not permitted).
(o) Name and addres of the Importer's bank in India.
Yours faithfully,
N o .F
Gorerament of India
MINISTRY OF FINANCE
(Department of Economic Affairs)
New Delhi, tho
TO
The Bank of India, Tokyo Branch, Tokyo (Japan).
Subject :—Import of goods and services for construction of Irrigation facilities under Japanese Grant Aid of Yen one billion for 1979-80. Iwue of Authorisa- tion to pay.
Dear Sirs,
In accordance with the terms and conditions of the agree- ment dated entered into with your Bajnk, 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 Supplier of the fact of receipt of this Authorisation to Pay (A/P) and endorse a copy of this ad- vice 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 bails 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 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 their
letter No. ^-dated .
2. Importer's Banker
.Thev are r"nn:sted to arrange to deposit the rupee equivalent of the Yen pay- ment to the Japanese suppliers on receipt of documents from the Bank of India, Tokyo Branch Thr rupee eouivslent 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
60 THE GAZETTE OF INDJA . EXTRAORDINARY [PART I —S B C L)the Public Notice No. 8-JTC(PN)/76 daud 17-H976 OT such other Public Notices as may be issued from time to time. Interest @ 9% per annum for the first thirty days and at the rate of 1 5% 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 the Government account, is required to be deposited into the Governincnt or Indi.i account in terms of Public Notices No. 46-irC(l'N)/'/fi 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 L'to Government account. (Any change in this rate will be intimated if and when made). It should be ensured that these deposit! are made before til* original set of import document! are handed ovw to the importer for Customs Clearance.
3. These amount* should be deposited either with the RBI, New Delhi or the S.B.I., Tin Hazarj, 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, Dethi-6 (Drawee and I'ujtc). In this connection their attention is also invited to the provision* of the Public Notices No. 233-ITC(PN)/68 dated 24-10-1968, No. 132-1TC (PN)/7l dated 5-10-1971, No. 74-ITC(PN)/74 dated 31-5-74 and 103-ITC(PN)/76 dated 12-10-1976. Th" head of account to be credited is 'K-DeposiU and Advance"-843-CIVIL De- posits-Deposit for purchases etc. abroad Purchases under Grant Aid from Government of Japan for 1979-80 under detailed head' One billion grant aid for purchase of goodf and services for the construction of irrigation facilities.
On* copy of. the challan in-orjjinaU in cue* whare the rupee equivalents are 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 be sent by them to the address given below alongwith a forwarding letter 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 Dellii-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 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 Afltiirs, New Ddbi
Accounts Officer.