129

MINISTRY 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

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)

"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.

131

V(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

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

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 nay 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.

THE GAZE1TE OF INDIA : EXTRAORDINARY

[PART 1—SEC. U

if any. An intimation to Ihis effect shall be forwarded to

the Controller of Aid Accounts and Audit, UCO Bank

Building Parliament Street, New Delhi.

V(14) After the payment to the supplier is made the

supplier's bank shall forward to the Controller of Aid Accounts

and Audit, Ministry of Finance, Department of Economic

Affairs, UCO Bank Building, Parliament Slrcet. New Delhi,

one set of non-negotiable shipping documents and two copies

of the invoice with a certificate duly endorsed thereon by

the supplier that the payment has been received by the latter.

V(15) The supplier's bank will also obtain from supplier

and furnish to the Controller of Aid Accounts and Audit,

Ministry of Finance. Department of Fxonomic Affairs, UCO

Bank Building, Parliament Street, New Delhi, a certificate

or proof (in duplicate) in regard to the origin of the goods

being in accordance with the Rules of origin appended to

the "Guideline for Procurement of Goods and Services."

V(16) The importer should forward to the Controller of

Aid Accounts and Audit, Ministry of Finance, Department

of Eionotpic Affairs, UCO Bank Building, Parliament Street,

New Delhi, a certificate of remittance made by them to the

supplier against the invoice/shipment of goods excluding

bank charges, if any. This certificate should be obtained

from the bank through which the Letter of Credit is opened.

The importer should also ensure that one set of non-negotiable

shipping documents and two copies of invoice with a certifi-

cate dulv endorsed thereon in regard to receipt of payment

bv supplier and certificate of origin, referred to in Sections

Vfl3) and VY14) are forwarded to Ministry of Finance, De-

partment of Economic Affairs Controller of Aid Accounts

and Audit within 15 days of the shipment of goods.

V(17) Payment against the Letter of Credit will be made

by the importer on the strength of the Exchange Control

Copy of the Import Licence.

VflR) Normally all shipments/paymenis to the Supplier

should be completed within a period of 20 months from the

date of issue of the Letter of Authority referred to above.

Tn case the shipments/pavments to the suppliers are not

l^;bely to be completed within the period of 20 months, the

Importer phou'd invariably approach the Ministry of Finance,

Department of Economi" Affairs. (EEC. ITI Section) at least

a month before the expiry of this limit for completing the

shipments''pnvments fo the Suppliers. This request should

be accompanied with a nhotostat cooy of the revalidated

Tmnort Licence covering the period of extension sought for.

If such a request U not received before the simulated period,

the un-utilised balances of the contract will be deemed as

having been surrendered.

V(19) Any omission on the part of the importer to send

the reimbursement documents promptly to the Department

of Economic Affairs will be viewed seriously and the C.C.I.&

E. may be asked to suspend all import licences issued in the

favour of the importer. In case the importer persists in

his default, his case may be recommended to the C.C.I.&E.

for being blacklisted. The importer will, in addition,

liable to penalties/punishments under the

law governing

Import Control etc.

V(20) On receipt of the reimbursement documents, Cont-

roller of Aid Accounts and Audit in the Ministry of Finance,

will make a request to the Netherlands Investment Bank for

reimbursement of the amount paid to the supplier in-the eligi-

ble source countries. The Netherlands Investment Bank will

reimburse the eauivalent amount in Netherlands guilders

at the rate of exchange prevailing in the Netherlands on the

date of such reimbursement.

Section VI: Miscellaneous:

VI(1) The importer should furnish a quarterly report, as

in Annex. VIII showing the utilisation, status of the licence

to the Ministry of Finance, Department of Economic Affairs,

(EEC. Ill Section).

VI(2) It should be understood that the Government

India will not undertake any responsibility for dispute, if

any, that may arise between the licensee and the supplier.

The conditions to be fulfilled by the supplier before payment

could be effected to him must be clearly spelt out by the

importer in Annex, IV. If necessary, a provision dealing

with settlement of disputes may be included in the contract

itself.

VI(3) The licensee shall promotly comply with any direc-

tions, instructions, or orders issued by the Government of,

India from time to time regarding any and all matters arising

from or pertaining to import licence and for meeting all

obligations under Dutch General Purpose Credit.

VI(4> Any breach or violation of the conditions set forth

in ihe above clauses will result in appropriate action under

the Imports and Exports (Control) Act.

Annex. I-A

List of eligible source countries for united bilateral loans

to developing countries.

A. Netherlands

B. Africa

North of Sahara

Algeria

Libyan Arab Rep.

Morocco

Tunisia

Egypt

South of Sahara

Botswana

Burundi

Cameroon

Cape Verde Islands

Central African Rep.

Chad

Comoro Islands

Cango (People's R«p. ofl

Zaire Rep.

Dahomey

Ethiopia

Gabon

Gambia

Ghana

Guinea

Guinea Bissau

Ivory Coast

Kenya

Lesotho

Liberia

Malagasy Republic

Malawi

Mali

Mauritania

Mauritius

Niger

Negeria

Reunion

Rwanda

Senegal

Seychelles

Sierra Leone

Somalia

Terr. Afars and Isaas

St. Helena and dependencies

Sudan

Swaziland

Tanzania

Togo

Uganda

Upper Volta

Zambia

America

North and Central

Bahamas

Barbados

Bermuda

Costa Rica

Cuba

Dominican Republic

Fl Salvador

Guadeloupe

Gn»f»mo1a

Haiti

Honduras

Honduras (Br.)

Tnrnaica

Martinique

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]

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

135

rejected. 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 chants 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

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

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

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

•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

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

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).

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

(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

(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.

137

The

Hague

nominated

the

importer

con-

verted

the

prevailing

composite

rate

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.

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

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.

14(

>EEC 111/

Government of India (Bharat Sarkar)

MINISTRY OF FINANCE (VITTA MANTRALAYA)

Department of Economic Affairs (Arthik Karya. Vibhag.)

New Delhi,

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

N.G

(Netherlands Guilders

\z\\z\\\\\z"".'.'.'.

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

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

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

J HE GAZETTE OF INDIA : EXTRAORDINARY

[PART j — SEC. 1J

or 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

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©

Subject.—Contract entered under General Purpose Dutch

Credit—Reimbursement.

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

No.

•—-

dated

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

3, You arc authorised to open a latter of credit in favour of

Messrs. ——

—

:——— , .

_ _ _ .

through their

bankers, viz.

Messrs.

within a period of thirty <U»ys from date of this letter and

against a valid Import Licence,

under

intimation to the

Controller of Aid Accounts and Audit. UCO Banlt Build-

ing, parliament Street, New Delhi.

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

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__

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)

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

Finance, Department of

Economic

Affairs, UCO

Bank

Building, Parliament Street. New Delhi.

Annex, v m

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.

PRINTED BY THE MANAGER, GOVT. OF INDIA PRESS, KING ROAD, NEW DELHI-110064

AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, I>BLHI-H0054, 1981