REGISTERED No. D. (D)-72
EXTRAORDINARY
PART I—Section 1
PUBLISHED BY AUTHORITY
Mo. 45] NEW DELHI, SATURDAY, FEBRUARY 28, 1981/PHALGUNA 9, 1902 Separate paging is given to this Part in order that it may be filed as a separate compilation
(115)
1389 GI/80
116 THE GAZETTE OF INDIA : EXTRAORDINARY [PARR 1--SEC. 1] 117 118 119 120 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. H 121 122 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1] * 1231389 GI/80—2
124 THE GAZETTE OF TNDIA : EXTRAORDINARY [PART I—SEC. Ii 125 1 26 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. -1] 127 128 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1] 129MINISTRY OF COMMERCE
IMPORT TRADE CONTROL
Public Notice No. 8-lTC(PN)/81
New Delhi, the 28th February, 1981
Subject : Licensing Conditions pertaining to Dutch General Purpose Credit.
File No. IPC/23/(12)/8I.—The terms and conditions gov- erning the issuance of import licences under the Netherlands Government Credit for importers in both Private and Public Sectors as given in Appendix to this Public Notice are notified for information.
MANI NARAYANSWAMI, Chief Controller of Imports and
Exports
APPENDIX TO MINISTRY OF COMMERCE PUBLIC NOTICE NO. 8-ITC(PN)/81, DATED : THE 28TH FEBRUARY, 1981
Conditions for Licensing Imports under The Dutch General Purpose Credit
Section I—General
1(1) The Dutch General Purpose Credit from the Nether- lands Investerings bank Voor Ontwikkelingalanden N. V. is untied in favour of developing countries. Accordingly the goods and commodities and services incidental thereto which are to be financed under the Credit can be imported from Netherlands and all countries enumerated in the list at Annex. I-A which will be the "eligible source countries" under the credit,
1(2) Components to the extent of 10 per cent in respect of chemicals and 20 per cent in respect of other imports from non-eligible source countries are also eligible for financing under the Credit.
1(3) Limited supplies of goods and services from non-eli- gible source countries to supplement the hupplies from eli- gible source countries in excess of the limit indicated in Sec- tion 1(2) may also be considered for financing under the credit. For this, specific approval of the Government of Netherlands will bo necessary.
1(4) Except in cases, where the Netherlands is the tra- ditional or the only source for imports or where the value of imports is Jess than Df. 1.25 million, goods and services should normally the procured through Formal Open Inter- national Bidding. However, procurement even on the basii of tenders to prequalified suppliers or the tenders on restric- ted basis are also permissible in appropriate cases. Similarly, in certain cases involving proprietary items etc. purchases di- rectly from a single supplier are permitted even if the value thereof exceeds Dfl. 1.25 million. The procurement guide- lines prescribed for this purpose are given at Annex. II.
1(5) In the case of global tenders, advertisement either in the Indian Trade Journal or in the Indian Export Service Bulletin is required at the time the invitations to bid are issued, and three copies of the tender notice, as advertised are to be sent to the Netherlands Embassy, Shanti Path, New Delhi with a copy to the Department of Economic Affairs and a copy also to the First Secretary, Embassy of India, the Hague, the Netherlands. Invitations to bid shall list the eli- gible source countries (given in Annex. I-A) and shall set out the applicable rules of origin (given in Annex. I-B). A margin of preference, normally upto 15 per cent of the c.i.f. price of the lowest evaluated foreign bid, may be extended to local goods and services, provided the bidding documents set out clearly the arrangement for such preferential treatment. It is abo to be ensured that the final date prescribed for sub- mission of bids allows adequate time for all potential sup- pliers to obtain tender documents and file their bids. The ten- der documents should be made available promptly to the Embassy of India at the Hague, Netherlands (under Intimation to the undersigned) for sale to potential suppliers from the Netherlands. In the case of other tendering methods also, these arrangements are to be- followed to the maximum extent possible.
Section II—Issue of Import Licence:
11(1) The import licence will be issued on CIF basis with an initial validity of 12 months. For extension of the vali- dity of the licence, the Licensee should approach the licen- sing authority concerned, within the validity period of the licence, who shall consult the Department of Economic Affairs, (EEC. Ill Section) in the matter.
11(2) Firm order on CIF/C&F basis must be placed on the overseas suppliers in the Netherlands or the countries mentioned in the Annex. I-A and sent to the Department of Economic Affairs (EEC. Ill Section) within 4 months from the date of issue of the import licence or, where the imports are permitted under O.G.L., the date of iwue of the foreign exchange sanction, Tf firm orders cannot be finalised with- in the time limit of 4 months, the licensee should submit to the licensing or other concerned authorities, as the case may be, a proposal seeking an extension in the ordering period, furnishing justification and explanation as to why ordering could not be completed within the initial validity period. Such requests for extension in the ordering period will be considered on the marks of each case by the licensing or foreign exchange sanctioning authorities who may grant ex- tension upto a further period of 4 months. If however, ex- tension is sought beyond 8 months from the date of issue of import licence or foreign exchange sanction, such proposal should invariably be referred by the licensing authorities to
130 THE GAZETTE OF JNDIA : EXTRAORDINARY [PART I—SEC. J]the Department of Economic Affairs (EHC. Ill Section), Ministry of Finance.
11(3) The licence will bear the superscription 'Dutch Gene- ral Purpose Credit' and indicate the Public Notice number under which these licensing conditions are issued. The licence code for the first and second suffix will be "S" "NN". This licence code will be mentioned in all the shipping documents ai well as in the "S" form required to be lurnishcd to the Reserve Bank, at the time of rupee deposit.
11(4) As soon as the importer receives the import licence, he should "end a report to that effect to the Ministry of Finance, Department of Economic Affairs, (EEC. II Section) along with the following information :—
(i) No. and Date of Import Licence,
(ii) Value,
(iii) Exchange rate, if any, indicated on Import Licence,
(Hi) Exchange rate, if any, indicated on Import Licence.
(iv) Date by which copies of contract are expected to be
furnished to Department of Economic Affairs.
Section m—Ftnaltoution of Contract:
111(1) The minimum value of contract eligible for finan-
cing under the credit is Dfl. 25,000.
Ill (2) Only one contract should be entered into against the import licence. In exceptional cases, more than one contract will be permitted to be entered into, for which prior approval of the Department of Economic Affairs, Ministry of Finance •hould be obtained soon after the date of issue of the import licence.
IIT(3) The term "Firm Orders" referred to in Section 11(2) means purchase order placed by the Indian licensee on the overseas supplier duly supported by order confirmation by the latter or purchase contract duly signed by both the Indian importer and the overseas supplier. Orders on Indian Agents of overseas "uppliers and /or order confirmation of such Indian Agents are not acceptable.
111(4) The CIF/C&F value of the contract should be expressed in Dutch Guilders in case of contract concluded with the Dutch suppliers and in the respective currency in cas0 of contracts concluded with the suppliers in eligible source countries.
111(5) The contract must provide for payment on caBh basis i.e. on presentation of shipping documents. No credit facility of any kind will be permitted to be availed of by the .Indian importer from the overseas suppliers.
111(6) The amount of Indian Agent's Commission included in the value of the contract should be specifically indicated. Any payment on this account, should be made in Indian rupees to the Agent in India. No remittance of foreign exchange will be permitted for this purpose. Such payments, however, will form part of the licence value and will, there- fore, be charged to the licence.
111(7) The purchase order and the supplier's order confir-
mation should be in English only.
111(8) The following provisions should be specifically in-
corporated in the contract :
"(I) "the contract is subject to the approval of Govern- ment of India (if the value of the contract is Dutch Guilders 50,000 or below) and subject to the appro- val of both the Government of India and the Government of Netherlands (if the value of the contract exceeds Dutch Guilders 50,000).
(Ii) This contract will be governed by the payment pro- cedures laid down under the licensing conditions for the Dutch General Purpose Credit and will become effective after the Government of India's approval to this effect has been received."
(lii) "The goods are of Dutch origin/manufacture" (in
ca"e of suppliers in Netherlands)
or
"The goods are of origin/manu- facture" fin case of suooliers in elleiblc source (iv) "For the goods to be imported from Netherlands, the suppliers will have to produce to the Netherlands Investment Bank, a certificate (in the prescribed form) in duplicate issued by the Netherlands Chamber of Commcico of the district in which the supplier is established to the effect that the goods are of Netherlands origin. This certificate shoulc be furnished along with the other shipping docu- ments at the time of receiving payment. (A §peci- men of the certificate is at Annexure III).
In the case of supplier in eligible source countries the suppliers will nave to produce to the Netherlands Investment Bank proof of origin of goods in accor- dance with the Rules of Origin, (Annexure I-B)'
111(9) For any customary performance guarantee, where required the suppliers should be asked to furnish a bank guarantee/warranty.
Section IV—Approval of contract by Government of India/
Netherlands Investment Bank.
lV(l)(a) Immediately after the contract is concluded, the importer should furnish 5 photostat or certified copies of the contract/supply orders accompanied by a photostat copy of the Import Licence if any or foreign exchange sanction to the Ministry of Finance, Department of Economic Affairs, (EEC. Ill Section). In case of contracts concluded with suppliers in eligible source countries, 9 copies of the same should be furnished. The importer is also required to fur- nish the information as per details in Annexure IV.
IV(l)(b) In the case of contracts concluded by companies and institutions other than Public Sector Undertakings and Government Departments, for imports from Netherlands, the importer should furnish a bank guarantee from an appro- ved scheduled bank, in the form prescribed (Annexure V) duly adjudicated by the Collector of Stamps. The Bank Gua- rantee should be for an amount representing the rupee equiva- lent of the amount of contract for which letter of authority is sought plus interest and other charges. The rate of conversion shall be at the exchange rate notified by the Department of Revenue as prevailing on the dgte of issue of import licence or that indicated on the import licence,
1V(2) When the supply contract Is based on formal open international bidding or formal selective International bidd- ing, the following information should also be furnished :—
(i) Name of the publication in which tender notice was
Advertised;
(ii) Name of the parties who quoted against the tender
enquiry ;
(iii) The reason for selecting a particular offer indicating
whether it was the lowest technically suitable bid.
1V(3) If the contract documents, the request for issue of letter of authorisation and the import licence and bank guarantee, where necessary, are found to be in order, the Ministry of Finance (Department of Economic Affairs) will forward copies of the contract to the Dutch authorities through the Embassy of India at The Hague for approval.
IV(4) (a) In respect of contracts valued at DO 50,000 or below, approval of Duch authorities: is not required. The approval of the Government of India will be communicated to the Indian importers while forwarding the copies of their contracts/supply orders to the Dutch authorities.
(b) For contracts of value exceeding DG 50,000, as soon as the approval of the Dutch authorities to the financing of the contact under Dutch Credit is received, the importer will be informed that their contract has become effective.
Section V—Payment to ttae Suppliers.
(A) Payment to the Suppliers in Netherlands.
Vft) A Letter of Authority to the Netherlands Investment Bank for Developing Countries, The Hauge (in the form at Annexure VI) authorisine payment to the suppliers against shipping documents will be issued and forwarded along with the copies of contract etc., to the Dutch authorities through the Embassy of Tndia at The Hauge.
131V(2) The validity of the Letter of Authority will be deter- wnined keeping in view the delivery schedule indicated in the contract. In no case will the Letter of Authority be made valid beyond the validity of the import licence.
V(3) Since the payments to the suppliers under the credit are generally made by the Dutch Bank against the produc- tion of Shipping document!), the grace period facility will not be applicable to imports financed under this credit.
V(4) In case the shipment/payments to the suppliers arc not completed within the validity period of the Letter of Authority, the Importer should approach the Ministry of Finance. Department of Economic Affairs ("EEC, III Section) for suitable extension of the Letter of Authority well before the expiry period of the Letter of Authority. Such a request should be accompanied with a photostat copy of the revali- dHtcd Import Licence, if the period of extension sought for is beyond the validity of the original Import Licence, and a letter from the bank extendinc the validity of Bank Gua- rantee, where necessary.
V(5) If tlie request for extension in the period of validity of the Letter of Authority is not received within a period of six months from the validity date of the Letter of Authority the un-utilised balance in the Letter of Authority will be deemed to have "been surrendered and the Letter of Authority will stand lapsed automatically.
V(6) The original negotiable shipping documents will be invariably forwarded by the Netherlands Investment Bank to the concerned importer's bank in India, which would be a brunch of any of the nationalised banks who should release these negotiable set of documents to the importer concerned only after ensuring that the importer has deposited :
(i) the rupee equivalent of the payments to the suppliers in Dutch Guilders at the prevailing composite rate of exchange to be calculated in the manner as prescribed in Chief Controller of Imports and Ex- ports' Public Notice No. 8-ITC(PN)/76. dnted 17-1-1976 and as may be notified by the Govern- ment from time to time through Public Notices of the C.C.I.&E, or through Exchange Control Circulars of the Reserve Bank of India ;
(ii) interest calculated at the rate of 9% per annum for the first 30 days and at 15% for the uoriod in excess of 30 days in terms of Public Notice No. 4<5-LTC(PN)/76 dated 16-6-1976 on the amount required to be deposited vide item (i) above, recko- ned from the date of actual payment to the supplier by the Netherlands Investment Bank for Develop- ing Countries N.V-, The Hague, to the date of actual deposit of the rupee eauivalent by the im- porter in thr State Bank of India, Tis Hazari, Delhi or Reserve Bank of India, New Delhi.
V(7) It shall be the responsibility of the Indian bank con- cerned to ensure that the amounts due are correctly deposited into Government Account before the import documents are handed over to the importers. The importer should also ensure that the amounts due are correctly deposited into Government account before taking delivery of the documents from their bankers.
V(8) The importers (including Public Sector Undertakings and Departments of the Central Government) should make the requisite rupee deposit only through Authorised Dealers in foreign exchange and also net the Exchange Control Copy of the Licence endorsed by them as required in Public Notice No. I84-ITC(PN)/68 dated the 30th August, 196". The requisite 'S' form will be sent by the concerned brink to the Reserve Bank of IndJH, Bombay.
V(9) The monevs specified in Section V(6) should be de- posited onlv with the State Bank of India, Tis Hazari Branch, Delhi, or the Reserve Bank of India, New Delhi to the credit of the Central Government Account under the head of account—
"K—Deposits and advances—Deposit not bearing in- terest—843—-Civil Deposits—Deposits for purchases etc. abroad—-Purchases etc. under Dutch General Purpose Credit—Ministry of Finance fDEAVs letter of authority No. Dutch Credit".
1389 Gl/80—3
V(10) The advice of rupee deposits referred to abovjc, should be sent to the Controller of Aid Accounts and Audit, Ministry of Finance, Department of Economic Affairs, UCO Bunt Building, Parliament Street. New Delhi by enclosing original receipted treasury challan in the proforma prescribed under Public Notice No 74-lTC(PN)/74 dated 31-5-1974, No. 103-1 rC(PN)/76 dated 12-10-1976. The information in regard to letter of Authority No., amount of foreign currency ff- which rupee deposit is made, date of payment to the Dutch supplier, amount of interest and period for which it is calculated should invariably be indicated in the challan form.
RE-IMBURSEMENT PROCEDURE
V(.ll) In case of import licences other than public sector undcrmkinRS/Government Departments where the value ia Mow Rs, 1 lakh, the importer will have the option to adopt the Re-imhursement Procedure provided no payments are required to be withheld Eor performance etc. Under this ^yitcm the irnportcrs will not be required to furnish the Bank Guarantee but their contract will have to indicate that the mode of pnyment will be by re-imbursement system. The importer will have to open a Letter of Credit on receipt of the approval of their contract by the Government of India. For this purno'e a letter of Authority (Annexure VII) to the importer's Bank, as indicated by the importer, authorising opening a Letter of Credit on the suppliers' bank in Netherlands will be issued by the Ministry of Finance, Department of Economic Affairs (EEC. Ill Section). Pay- ments against the Letter of Credit will be made by the im- porter on thr strength of the Exchange Control Copy of the Import Licence. Normally all shipments/payments to the supriiers should be completed within n period of 20 months from the date of issu? of this said Letter of Autho- rity. In case the shipments/payments to the suppliers are not likely to be completed within the period of twenty months, the Importer should invariably approach the Ministry of Finance, Department of Economic Affairs, EEC III Sectjon at least a month before the expiry of this stipulated period for the extension of the time limit for completing the ship- ments /payments to the Suppliers. This requtst should be accom- nanied with a photostat copy of the revalidated Import Licence covering the period of extension sought for. If snch e reauest is not received before the stipulated period, the un-utilized balances of their contract will be deemed as hav- ing been surrendered. The imnorter will furnish to the Controller of Aid Accounts & Audit, Department of Econo- mic Affairs, Parliament Street, New Delhi-110001. within 15 days of the shipment of foods a certificate from his Bank of payment made to the supplier and H1RO two copies of the invoice bearing s certificate from the Dutch supplier
to the effect that "he received a sum of— Dutch Guilders amounting to 100 per cent of the invoice value or shipment of goods." He will also ensure that t-wo copies of the certificate in regard to origin of goods referred to in Section nifl41(Iv) are furnished by thr supplier to the ControMer of Aid Accounts and Audit within the stipulated period of 15 days of the shipment of goods. Any omission on the nart of the importers to send the reimbursement docu- ments promptly to the Department of Economic Affairs will be vjewed seriously and the C.C.I.&E. mpy be asked to sus- pend f'l imr>ort licence** in ths name of the importer. In case the importer persists in rij<= default his rnse n ay be recommended to the CC.I.AE, for beinjr blacklisted. The irrroortf- will in addition be liable to penalties/punishment under the law governing Import Control etc. Tn case Ihe importer derides to adopt the reimbursement procedure, he "hmild furnish 1 photostat/certified copies of the contract while 'rckintr arcroval of his contract bv Ministry of Finance. The B-'nk Guarantee need nnt be furnished in such enses.
B. Payment to the suppliers in Eligible Source Countries,
V(12) A Letter of Authority (in form at Annex. VII) to the Imnorters' Bank, as indicated bv the Tmoorter in his application authorising opening of a Letter of Credit on the nuppHers' bank in the eligible source country in favour of thi supplier will be issued bv the Ministry of Finance. De- rprtment of Economic Affairs, (EEC. Til Section). Copies of the c.ontnct alone with a cony of the said Letter of Authority will be forwarded to the Dutch authorities also throuph the Embassy of India at the Hague.
V(13) On receipt of the Letter of Authority mentioned in the preceding Daragraph, the Importer's Bank will onen a Letter of Credit in favour of the suoplirr through his banker within a period of 30 days from ihe date of ifsue of the said Letter of Authority and against a valid import licence.
m THE GAZE1TE OF INDIA : EXTRAORDINARY [PART 1—SEC. U
if any. An intimation to Ihis effect shall be forwarded to VI(3) The licensee shall promotly comply with any direc-
the Controller of Aid Accounts and Audit, UCO Bank tions, instructions, or orders issued by the Government of,
Building Parliament Street, New Delhi. India from time to time regarding any and all matters arising
from or pertaining to import licence and for meeting all
V(14) After the payment to the supplier is made the obligations under Dutch General Purpose Credit.
supplier's bank shall forward to the Controller of Aid Accounts
VI(4> Any breach or violation of the conditions set forth
and Audit, Ministry of Finance, Department of Economic
Affairs, UCO Bank Building, Parliament Slrcet. New Delhi, in ihe above clauses will result in appropriate action under
one set of non-negotiable shipping documents and two copies the Imports and Exports (Control) Act.
of the invoice with a certificate duly endorsed thereon by
Annex. I-A
the supplier that the payment has been received by the latter.
List of eligible source countries for united bilateral loans
V(15) The supplier's bank will also obtain from supplier to developing countries.
and furnish to the Controller of Aid Accounts and Audit,
Ministry of Finance. Department of Fxonomic Affairs, UCO A. Netherlands
Bank Building, Parliament Street, New Delhi, a certificate B. Africa
or proof (in duplicate) in regard to the origin of the goods
being in accordance with the Rules of origin appended to North of Sahara
the "Guideline for Procurement of Goods and Services." Algeria
Libyan Arab Rep.
V(16) The importer should forward to the Controller of Morocco
Aid Accounts and Audit, Ministry of Finance, Department Tunisia
of Eionotpic Affairs, UCO Bank Building, Parliament Street, Egypt
New Delhi, a certificate of remittance made by them to the
supplier against the invoice/shipment of goods excluding South of Sahara
bank charges, if any. This certificate should be obtained
from the bank through which the Letter of Credit is opened. Botswana
The importer should also ensure that one set of non-negotiable Burundi
shipping documents and two copies of invoice with a certifi- Cameroon
cate dulv endorsed thereon in regard to receipt of payment Cape Verde Islands
bv supplier and certificate of origin, referred to in Sections Central African Rep.
Vfl3) and VY14) are forwarded to Ministry of Finance, De- Chad
partment of Economic Affairs Controller of Aid Accounts Comoro Islands
and Audit within 15 days of the shipment of goods. Cango (People's R"p. ofl
Zaire Rep.
V(17) Payment against the Letter of Credit will be made Dahomey
by the importer on the strength of the Exchange Control Ethiopia
Copy of the Import Licence. Gabon
Gambia
VflR) Normally all shipments/paymenis to the Supplier Ghana
should be completed within a period of 20 months from the Guinea
date of issue of the Letter of Authority referred to above. Guinea Bissau
Tn case the shipments/pavments to the suppliers are not Ivory Coast
l;bely to be completed within the period of 20 months, the Kenya
Importer phou'd invariably approach the Ministry of Finance, Lesotho
Department of Economi" Affairs. (EEC. ITI Section) at least Liberia
a month before the expiry of this limit for completing the Malagasy Republic
shipments''pnvments fo the Suppliers. This request should Malawi
be accompanied with a nhotostat cooy of the revalidated Mali
Tmnort Licence covering the period of extension sought for.
Mauritania
If such a request U not received before the simulated period,
Mauritius
the un-utilised balances of the contract will be deemed as
Niger
having been surrendered.
Negeria
V(19) Any omission on the part of the importer to send Reunion
the reimbursement documents promptly to the Department Rwanda
of Economic Affairs will be viewed seriously and the C.C.I.& Senegal
E. may be asked to suspend all import licences issued in the Seychelles
favour of the importer. In case the importer persists in Sierra Leone
his default, his case may be recommended to the C.C.I.&E. Somalia
for being blacklisted. The importer will, in addition, be Terr. Afars and Isaas
liable to penalties/punishments under the law governing St. Helena and dependencies
Import Control etc. Sudan
Swaziland
V(20) On receipt of the reimbursement documents, Cont- Tanzania
roller of Aid Accounts and Audit in the Ministry of Finance, Togo
will make a request to the Netherlands Investment Bank for Uganda
reimbursement of the amount paid to the supplier in-the eligi- Upper Volta
ble source countries. The Netherlands Investment Bank will Zambia
reimburse the eauivalent amount in Netherlands guilders
at the rate of exchange prevailing in the Netherlands on the America
date of such reimbursement.
North and Central
Section V I: Miscellaneous: Bahamas
Barbados
VI(1) The importer should furnish a quarterly report, as Bermuda
in Annex. VIII showing the utilisation, status of the licence Costa Rica
to the Ministry of Finance, Department of Economic Affairs, Cuba
(EEC. Ill Section).
Dominican Republic
Fl Salvador
VI(2) It should be understood that the Government of Guadeloupe
India will not undertake any responsibility for dispute, if Gn"f"mo1a
any, that may arise between the licensee and the supplier. Haiti
The conditions to be fulfilled by the supplier before payment Honduras
could be effected to him must be clearly spelt out by the Honduras (Br.)
importer in Annex, IV. If necessary, a provision dealing Tnrnaica
with settlement of disputes may be included in the contract Martinique
itself.
Mexico
133
Netherlands Antillei
- Nicaragua
Panama St. Pierre et Miquelon Trinidad et Tobago
West Indies (Br.)
South
Argentina Bolivia Brazil Chile C olombia Ecuador Falkland Islnndi Guyana Guiana (Fr.) Paraguny Peru Surinam Uruguay Venezuela
Asia
Middle East
Bahercln Iran Iraq Israel Jordan Kuwait Lebanon Oman Qatar Saudi Arabia Yemen (People's DR) Syrian (Arab. Rep.) Unit. Arab Emirates Yemen (Arab. Rep.)
South
Afghanistan Bangladesh Bhutan Burma Tndia Maldives Neonl Pakistan Sri T.ank&
Far East
Brunei Khmer ReD. HOUR Kong Indonesia Korea (Rep. of) Korea (People's Dem. Rep. of) Laos Macao Malaysia Philippines Singapore Thailand Timor Vietnam (Rep. of) Vietnam (Dem. Rep. of)
Oceania
Fiji Gilbert and El lice Islands French Polynesia New Caledonia New Hebrides fBr. and Fr.)
P-idfk Islands (US) Parnia New Guinea Solomon Islands Tonsa Wallis and Fiituna Western Samoa
Europe
Turkey Portugal
Annex. 1-B
Rules of Origin
1. The subject items of these rules of origin shall bo goods and services produced in the eligible source countries.
2. In the case of goods, assessment ol the Netherlands origin shall be subject to the legislation in this field which prevails in the European Community.
3. Proof of origin of the goods mentioned in paragraph 2 shall be furnished by means of a ccitificate of origin, issued by a Chamber of Commerce in the Netherlands.
4. In tho case of goods, asscsment of origin in deve- loping countries shall be subject to the rules of origin which are establi5hcd by iho European Com- munity in the framework of the General System of Preferences.
5. Proof of origin of the goods mentioned in paragraph 4 shall be furnished by means of a Certillcato of Origin, Form A (ts in use by the General System of Preferences), issued by am official authority in the developing country.
6. In the case of services (cf. paragraph 1 of tho Guidlinzs), origin shall be assessed, on an ad hoc basis, in mutual consultation between the Nether- lands Government and the borrower country.
7. In cases where the Rules of Origin cause substantial problems or serious economic damage to the borrower country (e.g. an over-tight restriction of the number of potential suppliers), deviations from these rules may be permitted, but only after mutual consultation between tho Netherlands Government and the borrower country.
Annex. HI
Guidelines for Procurement of goods and services under
bilateral development loans by the Netherlands.
A. General
1. These guidelines govern procurement of goods and services under bilateral loans which form part of the official Netherlands Development Aid Programme. These loans are untied in respect of developing countries. A list of eligible source countries is attached as Annexurs I-A. The recipient country is included in this list. The Netherlands Government may agree, on an individual basis, to limited supplies of goods and services from non-eligible source countries to supplement the supplies from eligible source countries, with transportation and insurance costs included.
2. The Netherlands Government must be satisfied that the proceeds from the loans are to be used with due care being given to economy, efficiency, fairness in international competition nnd non-diocrimination amqng eligible source countries, in accordance with the procurement pro- cedures set out in these guidelines.
3. Except in the cases mentioned in paragraphs 16 and 17, no practices shall be allowed, which could lead to, or result in a particular supplier or the suppliers of a particular country being favoured.
4. The rules of origin and control to be observed by tfcr borrower in the procurement of goods and services, are attached to these guidlines as Annexure I-B.
5. Where the borrower does not effect direct procurement, he shall make such arrangements as are necessary to ensure that the purchaser complies with these guidelines.
6. (1) The borrower shall obtain goods and services through formal open international bidding except in the following cases :
(a) where the Netherlands is the traditional or the
only source for imports;
(b) where the valnu of Importii i> less than Dfl. 1.15
million; or
134 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC, 1](c) where such a procedure is inapplicable or inappio- priatc. In this case, agreement between the Nether- lands Government and the borrower on another more expedient procedure raust be reached before iuppliers are invited to submit their bids, such agreement to be reached on, the basis of all relevant information to be supplied by the borrower through ihc Royal Netherlands EmbGS&y.
6. (2) Where in the light ofi the existing relationship subsisting between the Indian importers and the foreign sup- pliers and the scope of supplies available and identified in the Netherlands and/or the. developing countries, trie borrower considers that imports should be effected Irom the Netherlands only, the borrower shall have the option to confine bids to the Netherlands only or obtain bids from the Netherlands as well as the eligible source countries. In such cases article 30 of the Guidelines along with articles 31-33 or article 30 along with articles 34-38 are applicable.
7. These guidelines, together with the Rules of Origin and the list of eligible source countries, -ire subject to amendment by the Netherlands Government.
B. Procedures for Formal Open International Bidding
K. At the time invitations to bid are issued, the borrower (or the purchaser on the borrower's behalf) shall advertise the bidding in at least one of the following two publications :
Indian Trade Journal
Indian Export Service Bulletin
The importer shall send three copies of the tender notices as advertised in the Indian Trade Journal or the Indian Export Service Bulletin, to the Embassy of the Netherlands in India.
9. In order to foster widespread competition, individual contracts for which bids are invited should, whenever feasible, be of a siz* large enough to attract bids on an international basis. On the other hand, if it is possible from a technical and administrative point of view to divide a project into contracts of a specialized nature and such division is likely to be advantageous to the borrower and/or to allow bruder international competitive bidding the project should be divided. Single contracts for engineering, equipment and construction work (commonly known as "Turn-key contracts") may be desirable if they offer overall advantages to the borrower country within the technical and economic facilities available.
10. Formal prcqualification may be desirable, in particular for civil works contracts. If prequaliflcation is used, it shall be bused entirely upon ability to perform satisfactorily, taking into account (i) the firm's previous experience in fimilnr types of work, (ii) its potential with regard to personnel, equipment and plant, and (lil) its financial position and integrity. Advertisementi o|f the prequalificatien procedure shall be carried out hi accordance with the pro- cedure described in paragraph 8. Condensed specifications shall be made available to contractors desiring to be consi- dered for prequalificBlion. When prequaliflcation is applied, all firms which fulfil the conditions for prequalificalion shall be permitted to bid.
H. Bidding documents shall be prepared to one of the languages customarily used in interational transactions and shall unless prohibited by law specify that the text of the documents in that language is governing.
12. Specifications shall set forth as clearly and precisely as possible the- work to be carried out, the goods and services to be supohed and the place of delivery of installation. Drawings shall be consistent with the text of the specifications; where they are not, the text shall govern. The specifications shall state thr, principles of evaluations and comparison of bids, which will be taken into account when evaluations are made and bids are compared. The specifications shall be worded in such a way as to permit and1 encourage free and full international competition.
Any additional information, clarification or correction of errors and alterations of specifications and invitations to bid shall be commuiticated promptly to those who requested the original bidding documents.
13. If national standards are cited to which equipment or material must comply, the specifications shall state that good* meeting other internationally accepted standards, which demand an equal or bettor quality than the standard! men- tioned, will also be accepted.
14. Specifications shall be based on performance and potential and should only prescribe registered brand name*, catalogue numbers or products of a particular manufacturer if particular spore parts arc required or if it has hcen decided that a certain amount of standardization is necessary to maintain certain essential quality factors. In the lust case the spscifications shall permit offers of alternative goods which have similar characteristics and whose psrlonnance and quality arc of a level at least equal to those specified.
15. Invitations to bid shall list the eligible source coun-
tries and shall set out tho rules of origin applicable.
16. Quotations shall be examined, on the basis of strict equality of conditions among suppliers from eligible source countries (including the evaluation of quotations for material and equipment at prices free of customs tariffa and other duties and taxes of like effect). The borrower country, however, is authorized, in the evaluation and comparison of bids to supply goods and services, excluding transport costs, to extend a margin of preference to local goods and services and to products from other eligible source countries which are members of the same regional economic group, consistent with GAIT, or which intend to establish such a group, over goods and services originating in other eligible source countries. This margin oi' preference shall not exceed 15 per cent on 'he GIF price of the lowest evaluated foreign bid or the existing level of customs duties of the bidder's country, whichever is the lowest.
17. In special cases, the borrower may, after mutual consultation between the Netherlands Government and the borrowing country, extend a limited margin of preference to local and regional manufacturers, consistent with GATT, in addition to the margin of preference, mentioned in para- graph 16. In assessing the level of preference, dut attention should be given to fnctors like the degree of national or regional ownership and management and the registration in the borrower country or the regional economic group of these manufacturing firms.
18. Bidding [documents shall, set out any preferences agreed upon and specify the manner in whick they will be applied in the evaluation and comparison of bids.
19. Bidders shall be given adequate time in which to
submit their bids,
20. The dL.tc, hour and place for latest receipt of bids and for the bid opening shall be announced in the invitation* to bid and all bids shall be opened publicly at the stipulated time. Bids received after this time shall be returned un- opened. The name of the bidder and total amount of each bid and of any alternative bids if they have been requested or permitted shall be read aloud and recorded.
21. No bidder shall be permitted to alter his bid after the bids have been opened. Only clarifications not changing the substance of the bid may be accepted. The borrower may ask any bidder for a clarification of his bid but shsdl not ask any bidder to change the substance or price of his bid.
22. Except as may be required by law, no -information relating to the examination, clarification and evaluation of bids and recommendations concerning awards shall be com- municated after the public opening of bids to any persons not officially concerned with these procedures on the side of either the borrower or the Netherlands Government before the annoucement of the award of a contract to the successful biddor.
23. Afier the opening of the bids, the pnrcttMer shall examine the bids in order to ascertain whether material errors in computation have been made in the bids, whether the bid* are fully responsive to tho requirements of the blddinR documents, whether the required guarantees and sureties have been provided, whether documents have been properly signed and whether the bids are otherwise generally in order. If a bid does not substantially conform to the specifications or contains inadmissible reservations or is not otherwise sub- stantially responsive to the bidding document*, it shall be
135rejected. A technical analysis together with a detailed fissees- inont monetary terms shall then be made to evaluate each responsive bid unj to enable bids to be compared.
24. Invitations to bid jnuy L,t;i'e that the purchaser Kservcs tho right to reject all bids when none arc iesponsive to the intent of tho specifications, when there is evidence of lack of competition, or when the low bids exceed the cost previously estimated by an amount sufficient to justily such action. Jf all bids are rejected, the borrower may, after consultation wiLh the Netherlands Government, enter into negotiations with one or i,ioie of the lowest bidders to ascertain the causes for such events and the reasons for the difference between the low bid and the cost estimates. Ncjjoti:itcd contracts reflecting changr-s in the specifications, leading to economies in the estimated coat of the project, may by ;iccepiub1e, pro- vided the c h a n ts do not substantially alter the nature of the project. Where chanpes are substantial, rcbiddins may be appropriate. This shall at all times be approved by the
Netherlands Government-
25. Evaluations of bids shall be coniistent wirh the terms and conditions set forth in the bidding documents *nd in any modifications thereto prior to the closing date fnr sub- mission of bids. Jpor the purpose of determining the lowest evaluated bid, commercial factors other than price, such, as the time of completion of construction or other work. the efllciency and reliability of the equipment, the time of its delivery and the availability of service and spare pert:;, shall also be takrn into consideration rind shall, to the largrf!. possible extent, be expressed in monetary terms. The currencies in which bid pi ices would have ti> bo puid sliull bo valnt-J, for bid comparison purposes only, on the basis of rates of exchange published by an oAlci.'il source and rjirplicablc to similar transactions at tb: closing date of the biddinjt.
26. The award of a contract shall be mr.de (o the bidder whose bid has bi:t-n deteTmined to ho the JoW'itl evaluated bid, taking into account the factors mentioned in the prece- ding paragraphs.
27. The Netherlands Government shall, upon request, be gwen, adequate opportunity to present its comment." and recom- mendations on all phases of procurement. Aftc" the award of contract, llw Netherlands Government shall be piuvided with ("copies of) all relevant documents and other infor- mation necessary for the evaluation of the M^ of the lean.
C. Procurement Procedures clhcr Ih.m Formal Open Inter-
national Biding.
28. IQ the ensev mentioned in pai-aerapritf 29 and 30, fhc procurement formuhic of paragraphs 31-39 may be applied in accordance with paragraph 6.
29. Standardization—Where the purchaser has convincing reasons for maintaining a reasonable standardization of his equipment.
30. Limited Number of Qualified Suppliers—In cases where, because of the nature of the procurement in question, the number of qualified suppliei1! is limittd and the market knowledge of the purchaser is such that he can be expected to know the qualified suppliers.
31. Formal Selective International Bidding—Under formal selective international bidding the purchaser is authorized to invite bids from only a limited number of (pre) qualified suppliers known to be able to meet the special requirements of the procurement in question.
In such, cases the borrower should ascertain that no potential qualified supliers have been excluded. The Ministry of Finance (Deparmcnt of Economic Affairs), Government of India shall provide all necessary information as and when asked for by potential suppliers of eligible source countries to enable them to participate an an equitable basis.
32. Th? symolicrs arc to be selected exclusively on (he basis of their qualifications and are, as far as possible, to be chosen from several eligible source countries including tho Netherlands,
33. All provisions of formal, international bidding, other
thail those of paragraph 8, are to be fully applied.
34. Informal International Competitive Procurement.— If procuirement is not through the formal competitive bid- ding procedures, it should be made in accordance with KOod commercial practice and without discrimination amonn eligible source countries.
35. The importer should give wide and timely publicity to the intended use of informal international competitive procurement. The Ministry of Finance, (Department of Economic Affaire), Government of India shall provide all information necessary to permit suppliers of eligible source countries to participate on an equitable basis as and when such information is asked for.
36. The time allowed for the preparation of quotations and offers shall be governed by the nature of the contracts involved. Both lead time and delivery schedules shall be lone enough to allow meaningful international competition.
37. The Netherlands Government mav require the purcha- ser in particular cases to supply information oo the purcha- see made, including full details concerning how quotations wore obtained, tho suppliers who arc involved and the quota- tions received.
38. The guidelines for formal open international bidding should be npplwd to the fullest possible extent •" appro- priate.
39. Single Supplier,—The purchaser is permitted to pur- chase directly from a single supplier in one of the following case* :
(i) procurement by a commercial importer involvei a registererd brand name commodity which is for resale by the importer, for which the importer is a regularly authorized distributor or dealer of the supplier and for which the supplier is the sole dia- tribiitor or manufacturer;
(ii) procurement by a commercial imDOrter involves a commodity which is procured for manufacture, processing or assembly and resale of the end pro- duct for which the importer is a recularlv uuthorized distributor or dealer of tho supplier and for which the iu;-.plk'r is the manufacturer;
(iii) in order to assure intcrchangeability of parts or because of special design or technical requirements the procurement can only be made From one source:
(Iv) the purchaser is a manufacturer whoso equipment and raw material forrmilae are designed for best utilization with a specific type of raw material which can only bo obtained from one source:
(v) the purchaser wishes to extend or repeat a proenre- mcnl originally made under formal international bid- ding provided that the complementary procurement is small in relation to the original procurement, takes place on a few occasions only and while the construction work related to the original procure- ment Ii still under way or shortly after the orlfiinai procurement Ii made;
(vi) the value of a transaction is less than Dfl. 1.25
million.
D. Guidelines for the Uie of CanenltajiU
40. Consultant firm employed should be independent in the sense that their advice tyjd the designs, specifications and bid documents prepared by them should be free of national, com- mercial or industrial bias."and can be complied frith on a competitive basis. In considering local consultant firms*,.due attention should b" given to factors like th© degree of nar tlonal ownership, management and pertonnel and resirtra- tion.
41. Formal competitive bidding procedures MO not reauir- "d for tho selection of consultant firms. However, in the process of selection, borrower* should consider a reasonable number of prospective firms, which can be expected to render competent and independent services from several eli- gible source countries. This Ust shall be baset cm pretmah- fication, taking into account:
(i) the firm's previous experience in similar types of
•wort;
fii) its potential with repard to personnel, equipment and
plant ; and
136 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1] *(iii) its financial position and integrity,
It hi desirable that, before invitations for proposals are senl out, the borrower submits the list of prospective firms to the Netherlands Government. The Netherlands Governmeni reserves the risht to reject tha choice of a consultant, and may, furthermore, an the basis of her knowledge of the consultancy sector in the Netherlands, suggest that this list is extended,
E. Grievances
42. The borrower shall make provision for the hearing and investigation of complaints arising in connection with the invitations to bid, the submission of bids and the award of contracts.
43. In the case of purchases^ conducted under formal inter- national bidding procedures complaint^ of any substance, regarding restrictive commodity specification or other restric- tive terms of the invitation, made prior to the. bid closing date, shall be resolved before the opening of bids. If necessary and only after consultation with the Netherlands Government, the bid closing date may be postponed fcr an appropriate period.
44. When a complaint has been made by one of the sup-
plies concerned, the documentation relutinc to the subs- tance of the complaint ;ind action taken thereon shall be available for examination by the Netherlands Government, as well us by the borrower.
Annex. Ill
DUTCH CREDIT
CONTRACT CERTIFICATE
Particulars of contract
Indian Import Licence No
1. Ntimbcr and Date of the Contract
2. Description of Roods or services to be supplied to the
•_••
purchaser (If a number of items are to be supplied, a detailed list should be appended to this certificate).
3. Total contract price payable by purchaser (State CIF,
C&F or FOB), Dfl (IF GOODS ARE TO BE SUPPLIED THE FOLLOW- ING SECTION MUST BE COMPLETED)
4. Estimated % of the FOB value of the goods not ori-
ginating in the Netherlands but purchased by the sup- plier direct from abroad i.e. % of imported raw material or components used in manufacture.
(a) % FOB value
(b) Description of items and brief specification
5. IF SERVICES ARE TO BE SUPPLIED THE FOLLOWING SECTION SHOULD ALSO BE COM-
PLETED,
6. State the estimated value of any work to be done or
services performed in the purchaser's country by
(a) Your firm (Site engineers charges, etc.)
fb) Local supplier
7. Qualifying remarks as necessary in respect of para-
graphs 4 & 5 above
8. I hereby declare that I am employed in the Nether- lands by the Supplier named below and have the autho- rity to sign this certificate. T hereby undertake that in performance of the contract no goods or services which are not of Netherlands origin will be supplied by the supplier other than those specified In paragraph 4 & 5 above.
Signed Position held Name and address of Sup- plier Date
Certified
Netherlands Chamber of Commerce District.
Annex, IV
(ii) Name and address of the Indian importer and/or
Project authority whero necessary.
(bj Name and address o£ the supplier. In case of sup- pliers in Eligible Source Countries, the following information should also be furnished— (i) Nationality.
(ii) Percentage of 1b; shares held by national of the
eligible source countries.
(c) (0 No. and date of Import Licence,
(ii) Value.
(d) (i) Name and address of the supplier's Jiiank in the
Netherlands/Eligible Source Country.
': (ii) The Importers' Bank in India (which will be the
bank that has furnished the Bank Guarantee).
';'•' (iii) The importers' Bank in India which will be res- ponsible to make rupee deposits in Government account before releasing shipping document to the importer.
(e) Value of the contract order in Dutch Guilders or the
currency of the Eligible Source Country.
(f) Method of Procurement whether it is based on direct purchase or Formal Open Intcrnatiomd Bidding or Selective Formal International Bidding, in which case it should be indicated whether the contract has been entered into on the basis of the lowest technically suitable offer, with reasons, if any.
(R) Short description of goods to be imported.
(h) Origin of Goods—percentage of imported components
trom non-eligible source; countries, if any.
(i) Expected date of completion of deliveries.
(j) Payment terms and probable dates on which payments
under the contract will fall due,
(kj Detailed list of shipping documents, like Bill of Lad- ing, Invoices, Certificate of Origin, etc., which the Netherlands Investment Bank for Developing Coun- tries or the Suppliers' Bank in Eligible; Source Coun- try should demand from the suppliers before making payment, together with tbe number of copies of each document required.
(1) Indian Ajjent's commission, if any, included in the contract (exact amount to be indicated), which wiU have to be deducted from the contract value while issuing a Letter of Authority. Such commission will be payable by the Importers direct to the Agents in rupees.
(m) Value of which the Letter of Authority is requested.
(nj Number, date and value of Bank Guarantee, indicat-
inR the period upto which it is valid.
(o) Special instructions, if any.
'''for Private Sector.
**Public Sector
Amux. V
GUARANTEE BOND
(T'i be furniahed by Banki under the procedure for the import of goods under the Dutch General Purpose Credit).
To
The Preiident of India,
In consideration of the President of India (hereinafter cal- ed 'the Government') having agreed to arrange for payment in Dutch Guilders for the import of by (hereinafter called the Importer) against he import licence number dated issued under the terms and conditions of the Dutch General purpose Credit and in pursuance of Import in favour of the importer against the above-mentioned agreement, we i (Bank) at the request of the Importer hereby undertake to arrange to deposit the amounts of the disbursements made by the Netherlands Investment Bank for Developing Countries.
137The Hague nominated by the importer con- verted at the prevailing composite rate of exchange calculated as per Public Notices issued by the Gov- ernment in the matter from time to time within ten days ofthe receipt of advice of payments for credit to the Government ac- count, in the manner and against the appropriate Head of Ac- count as indicated by Government of India, under the said Credit together with interest thereon at the rate of 9 per cent per annum for the first thirty duy? and at the rate of 15_pcr cent per annum for the period in excess thereof (as prescribed in Public Notice No, 46-ITC(PN)/76, dated the 16th June 1976) reckoned from the date of payment to the Dutch supplier to the date of payment of rupee equivalent for Credit to the Government Account. The negotiable set of import documents received froi-a the Netherlands Investment bank for Developing Countries. The Hague will be released to the importer only after the rupee deposits contemplated above have been made.
2. We the (Baulk) also undertake to indemnify and keep indemnified the Govt, 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 exceeding 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 thirty day_s and at the rate of 15 per cent per annum for the period in excess thereof (vide Public Notice ibid) reckoned from the date of payment to the Dutch Supplier to the date of actual deposit of the rupee equivalent into Government account. The decision of the Government BJ to any default in the said payment by the importer, or on fats part and in regard to the amount payable to the Govern- ment by us (Bank), shall be final and bind- ing on us (Bank).
3. We (Bank), further agree that in case ot increase in the value of import or increase in the value of un- fulfilled deliveries undr.r the contract as a result of change in the co*riro."'t" rate of exchange mentioned in para 1 above, the amount of this truarantee bond will be adjusted as on the date when the change takes place in proportion to this change.
4, We (Bank), further agree that the Ruaran- tee herein contained shall remain in full force and effect dur- ing the period that would be taken for the performance of the said agreement /contract and that it shall continue to be enforceable till nil the dues to the Government under or bv virtue of this onaranto have been fully paid and its claims satisfied or dischaTged.
this guarantee shall be forfeited and we shall be relieved and discharged from all liability thereunder.
Date the day of
For
(Ba nk).
\cccpicd foi ;Md on behalf of the President of Tndia by
Shri
(Name & designation)
Signature
"•This date shall be arrived at by adding one month to the date by which all payments to the Suppliers are expect- ed to be finalised.
Note :—-The value of the stamped paper on which this gua- rantee is to be executed is to be adjudicated by the Collector of Stamps under Section 31 of the Indian Stamps act.
Annex. VI
No. F. 14( >EEC 111/
Government of India (Bharat Sarkar) MINISTRY OF FINANCE (VITTA MANTRALAYA) Department of Economic Affairs (Arthik Karya. Vibhag.) New Delhi,
To
The Netherlands Investment bank for Developing Coun- tries, The Hague, Netherlands.
Agreement for the loan of million Netherlands Guilders—Request for direct payment
Dear Sirs,
LETTER OF AUTHORITY NO.
With reference to our application of today's date as to
the financing of the transaction between M|s. ..
India and Mjs.
, Holland, out of the loan made by your Bank to India, we hereby request and authorise you unconditionally and irrevocably to pay in ac- cordance with the terms and conditions of the above men- tioned contract to the supplier in Holland the amouDt of N.G
(Netherlands Guilders
\z\\z\\\\\z"".'.'.'. ).
5, The puarantee herein contained shall not be affected by any ch.'itvjc in the constitution of the Importer or the , (Baik). and th<* Government shall have the fullest libert1' without affecting the guarnrtee to postpone for anv time an 1 from time to time anv of the powers exercls- ablc by it against the importer and the (Bank), shall not be released from its liability under thiR guarantee; bv any exercise bv the Government of the liberty with re- ference to the matter^ aforesaid or by reason of time being given to th"? Importer or anv other forbearance, act or omission on th~ nnrt of the Government or onv indulgence bv the Government to the Imnorter or by anv other matter or thine whatsoever which under the law relating to sureties shall, but for this provision, have the effect of so releasing the
(Bank) from its such liability.
6. We (Bank), lastly undertake not to re- voke this guarantee during its currency, except with pre- vioun consent of trie Government, in writing.
7- We (Bank) hereby undertake to make additional deposits in terms of Public Notice No 8-ITC(PN) / 76 dated 17-1-1976 ?nl such other Public Notices that may be issued from time to time hereafter.
8. Our liability under this guarantee is restricted to Rs.
(pins interest and other charges, if any, not exneofrd to exceed one per cent of the guarantee amount) and this Kiiarante: shall remain Jn force till the day* of (month), 19 " '.)" Un- less claitrn; under thin guarantee are made in writing within six months of this date and unless a suit or action to enforce these claims is rommenced within another sir months there- after I.e. npto all Government's rights under It is requested that the invoices, shipping and other docu- ments presented by the Dutch supplier in accordance with the requirements of the contract be despatched direct to the
(Importer's Banker).
The suppliers will also be required to furnish to the Netherlands Investment bank for Developing Countries a certificate in duplicate issued/certified by the Netherlands Chamber of Commerce of the district in which the exporter is established regarding the Netherlands origin of the goods covered under the Letter of Authority.
Kindly forward the debit advice to the Government of India, Ministry of Finance Department of Economic Affairs, Economic Aid (Accounts) Branch, UCO Bank Building, Par- liament Street, New Delhi. This Letter of Authority will re- main valid upto
For the President of India,
Copy to
(Importer's Bank)
They should release the negotiable set of documents to the Importer only after ensuring that the importer has deposited :
(i) the rupee equivalent of the payments to the suppliers in Dutch Guilders flt the prevailing composite rate of exchange to be calculated in th© manner as pre- scribed "n Chief Controller of Imports &. Exports^ Public Notice No. 8-ITC(PN)|76 dated 17-1-1976 and ai may be notified by the Government from time to time through Public Notices of the CCI&E
W J HE GAZETTE OF INDIA : EXTRAORDINARY [PART j— SEC. 1Jor through Exchange Control Circular* of the Re- serve Bank of India ;
(ii) interest calculated at the rate of 9 per cent per an- num for 1he first 30 days and pt 15 per cent for lie peiiod in excess of 30 days in terms of Public Notice No. 46-ITC(iPN)|76 dated 16-6-1975 on the ;imouut required to be deposited vide item (i) above, reckoned from the date of actual payment to the supplier by the Netherlands Investment Bank for Developing Countries N.V., The Hague, to date of actual deposit of the rupee equivalent by the im- porter in the State Bank of Indiu. Tis Hazari, Delhi or Reserve Bank of India, New Delhi
Annex. VW
No. F. 14( )-EEC. II1|
Government of India (Bharat Sarkar)
MINISTRY OF FINANCE (VITTA MANTRALAYA)
Department of Economic Affairs (Arthik Karya Vibhag)
New Delhi, th©
To
Subject.—Contract entered under General Purpose Dutch
Credit—Reimbursement.
duplicate issued /certified by the Netherlands Chamber of Commerce oi the district in which the exportei is established regarding the Netherlands orijrfn of the goods covered under the Letter of Credit/Vi*;ued by the appropriate competent authority in regard to the origin of the goods covered un- lier the Letter of Credit.
6. You are nlso required to forward to the Controller of Aid Accounts wid Audit, Ministry of Finance, Department cf Economic Affairs, UCO Bank Building, Parliament Sfeet, New Delhi a certificate of remittance made by you to M/s, —— _. „ ^
.
against the invoice/shipment of goods, excluding Bunk charges, if any.
7. Receipt of this letter may please be acknowledged.
Your* faithfully,
"To be deleted if not applicable.
Copy with a copy of the contract forwarded to .—
Reserve Bank of India, Exchange Control Depaitmcni,
Bombay-1.
2. Copy also forwarded for information to .—
( i ) — — _. ,
flndisn importer)
Dear Sirs,
Me" sra
(Indian importer) have entered into a contract with Messrs. — — —
(Forcien supplier)
for the iupply of — -— •• • —• —
for the amount of
__ —•• ——_) c. I, F.I C and F against Licence
• —- dated
No. Issued under the Dutch General Purpose Credit for the value of Rs. — —— (Rupees —
A copy of the contract is enclosed.
.
2. Out of the above amount of an amount of -———i" to bo paid as Indian Agents' Commission in Indian currenfcy. The sum to be paid to the supplier in foreign currency which will he financed initially out of the free foreign exchan^ resources to be reimbursed later out of the Dutch General Purpose Credit, therefore, amounts to
3, You arc authorised to open a latter of credit in favour of Messrs. —— —
_ _ _.
:——— , . through their
~ bankers, viz. Messrs. within a period of thirty
4 In terms of para 10 Section VII of the Exchs-nse Control Manual, you are required to ensure that tlie date of the expiry of the letter of Credit is not later than forty-flve 145) day* after the final date for shipment as stated >n the rela- tive import licence, 5. The letter of credit will also provide that Messrs.- —
(forcian banker) Will forward directly to the Controller of Aid Accounts ft. Audit, Ministry of Finance, Department of Economic Affairs UCO Bank Building. Parliament Street, Now Delhi, one set of non-negotiable shipping documents and two copies of thn invoice with a certificate duly endorsed thereon by the Dutch Supplier that the payment had been received by the latter.
Thev will also obtain from the suppliers and furnish to the Controller of Aid Account* & Audit a certificate in__ It rnav be ensured that Mfs.
(foreign banker)
forward one act of shipping and other documents fnon- negotiable ) alongwith payment advice, two copies of the invoice with a certificate duly endoised thereon by the sup- plier that the payment has been received by him, and two copies of certificate in regard to origin' of Hoods to the Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, Par- liament Street, New Delhi.
(ii) M/s.
_. .
(foreign bank)
It is requested that on each payment, one set of shipping and other documents (non-negotiable) alongwith payment advice, two copies of the invoice with a certificate duly endorsed thereon by the supplier that the payment has been received by him and two copies of certificate in regard to origin of goods may be forwarded direct to the Con- troller of Aid Accounts and Audit, Ministry of Finance, Department of Economic Affairs, CO Bank Building Par- liament Street, New Delhi.
(iii) Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bank Building, Parliament Street. New Delhi.
Annex, vm
STATEMENT SHOWING QUARTERLY REPORT ON UTILISATION UNDER DUTCH CG.P.) CREDIT
1. Name of Importer.
2. No. and date of Import Licence.
3. Value of Import Licence,
4. Value of orders placed.
5. Letter of Authority No. and date.
6. Amount of Letter of Authority.
7. Date of Validity of Letter of Authority.
"~ S. Amount utilised durinjr the Quarter D.G.
9, Total amount utilised D.G.
10. Total Amount deposited into Government Ri,
Account.
11. Payment vet to be made during the
subsequent quarters
12. Surrender*, if any.