THE GAZETTE OF TNL>fA t EXTRAORDINARY

[PART t—SEC. 1J

MINISTK\ OF COMMERCE

LUPORI TK \DE CONTROL

Public Notice No. 53--JTC(PN),K2

Nev\ Delhi, the 23id October, V)»2

Subject.—Licensing

conditions in icspeet of imports of

goods and services undei the Yen Credit of ,r 6.0

billion loi lelecoinmunicitious Project (V) of '.he

DGP&T

Flic N". IPC 23(34) 82.—I he

terms

,<:id

conditions

governing the issue of import licence in icipect of imports

of goods uml services under the Yen Ciedil ol v 6.0t)

billion foi telecommunications

Projecl(V) ol the IXiP&T

«.\tended

by the Overseas Economic Co-opeialion Fund

(OECF) of Japan as

given

in Appendix to this Public

Notice are notified foi inloim.'ition.

MAN! NARAYANSYVAM1, Chief Controller

of Imports & Exports

APPIND1X

IO MlNIS'lR^

01- COMMtRCF

PUBIIC

NOTICE NO 53—lTC(PN)/82

Dnted the 23id Octobei, 1982

Licensing Conditions in Respect of linpoits of Goods and

Sej vices under the Yen Credit of

y 6.0 Billion for Tele-

communications

Piojcet

(.V) Extended by the Oversells

Economic ( o-opeKiiion FuikUOhCF) ol Juptu).

Section I—Cicneuil Condition-. .

I(i) The Yen Credit of

i 6.0 Billion extended b> the

Overseas Economic Co-opeiJIIOII

Fund of

Japan (OECF)

for financing the impoit requirements of the Telecommuni-

cations Project ol the fXiP&f is untied in favour of deve-

loping eountriev

Accordingly the goods .tod seivices to be

procured undei this ciedit cun be imported liom Japan and

all countiies enumerated in the list

t^it^Aiine\me^I^'Which

will be eligible souiee 1.0111111 ies undei iho (.ledit.

Kii) Impon Licence!-.j under the Credit e.m be issued

only foi such items and for such \alue as have been speci-

fically denied by the DGTD/CCi ( ommittce.

(he value

of impoit JieeiKefs) issued under

this credit should npt

exceed Yen 6,600 million (,CII ).

Tbe >upee value of the linpoit licence shall be determined

with reference to the exchange uite notified by the Depart-

ment of Revenue (Customs) mid prevailing on the date of

issue of the impoil licence and indicated in the body of

the import licence's) us per paia 2 of the Public Notice

No. 78-n'CfPN)/74

dnted the 6th June. 1974, issued by

the CCI&E, which also enjoins tlmt the- Customs Aulhoiilies

and the authorised deulers in loieijrn exchange w-ill make

debits to -the value of the licence(s) .it the exchange rate,

specified on the inipoit hcence(s).

The licence vvill heai

the superscription "'Japanese Yen Credit No. ID-P. 19". The

first and second suflix to the licence code will be '"S/JC".

This will also he repented in the letter fiom the CO&F

forwarding the impoit licence to DGP&T, a copy of which

.should b» endorsed to the Ministry of Finance. Department

of Economic Affairs (T.ipai* Section),

I(iii) Import lieencefsl can be issued onh in favour of

DGP&T on CTF basis.

I(iv) Depending on the convenience of DGP&T moie than

one import licence may be issjjed under this credit, but the

total value must not exceed \ 6.600 million (CIFl as speci-

fied at (i) above.

I(v) The extension of the vaJidity of the inioon licence

.may on application by DGP&T, be' granted upto 31-12-86.

Request for further extension, if nnv, should be refoired (0

the Department of ru>nomic Affairs Oapar> Section).

Jfu'i Imports (o be financed under tin CVdit .11L I L -

1 lifted lo Hit list ,,f goods- arid seiviee, attached to lln

import licence

dulv attested w 'fa lieemsiiii; authoiities.

Kvii) No remittance of foreign exchange will be per-

mitted against the impoit licence.

Any favment towards

Indian Agents commission khould be mgde in Jndun rupees

to the agents in India.

Such puvmenls, however, will torm

pait of the licence value ami will, thcieloie, be chaiged to

ihe licence.

l(vni) Finn oidci must be placed on FOB basis on the

Overseas supplier located in

the countries mentioned in

Aiinexuie-I'aiid sent to

the

Department

of Economic

\lfairs (Japan Section) within 4 months fiom the date of

issue of the import licence. Height and insurance charges

will be payable in India in Indian rupee's. '•Firm orders"

means pin chase ordcis placed by the Indian lieencec on the

overseas supplier dulj signed by the latter or.purchase con-

tract duly signed by both tho Indian impoitei and the over-

seas supplier. Ordeis on Indian Agents ot overseas suppliers

and or ordci confirmation of such Indian Agents aic not

acceptable.

1 I

J(ix) This condition of the placement ot contracts within

4 months pciiod vvill be treated (is not having been com-

plied with unless complete contract documents reach the

Ministry oi Hnanee

Department

of Economic Affairs

I Japan Section) within four months f 10111 the date of issue

of the import licence.

Jirm

ordeis us explained in

pa)a J(viii) above ennnot be placed within four months for

\alid leasons, the licensee should submit the import licence

to the concerned licensing authorities giving

reasons ' why

oidering could not be completed within foui months.

Such

lequests foi extension in the ordering period vvill be con-

sidered on mem by the licensing authorities who may grant

extension upto n further maximum period of 4 months. If,

however, extension is sought beyond 8 months from the

date of-issue, of the import licence s'ueh proposals will in-

vaiiably be lefened by the

licensing

authorities to the

Department of Economic Mfairs (Japan Section), Ministry

of Finance, North Hlock, New Delhi uho vvill consider such

.extension on the meiits of each case :ind communicate their

decision to the licensing authorities for communication to

the licensee.

Only on pioduction

r» the 'licensee of a

lettc: from the licensing aiilhoiities sanctioning such exten-

sion v\ill be .urthoiised dealiiis and departmental authorities

permit the facility ol lettei of authority for the establish-

ment of lelter of ciedit. acceptance of deposits of the rupee

equivalent, etc. in lespeet of supply contracts entered into

under the import licence.

1U) All payments must be completed within 4 months

liom the expiry ot the import licence. Individual payments

must be tmanged upon shipment ol soodv

The contract

should provide toi payment on cash basis i.e. on presen-

tation of shipping documents.

Nvj Credit facility of any

kind will be permitted to be

availed

of by the Indian

importer from the oveiscus supplier.

The contract- should

piovide for the peiiod of delivery of gooda us follow?:

months aftei the icceipt of l.eiler of credit but

to be completed latest by the end of

In fixing the terminal date tov shipment it should be noted

that this date should not be beyond 31-12-86.

Section II—^Special points to lit kep' in view while negotiat-

ing a supply contract.

ll(i) The FOB value of the contract should be expressed

in Yen (Fraction of Yen should be omitted) and ihould

exclude Indian Agent's commission, If nny, which should be

paid in Indian uipees.

In no ciicumstances ihe contract value should be expressed

in Indian rupees- or in any other currency. The purchase

order uncl the supplier's oi-Jer confirmation

should

be in

English only.

Ilfiil The broad guideline") for procurement of. goods and

services unde- tbe OECF Yen Ciedit (Project Aid)

aj-e,

given in Annexflre-IT. However prior approval of " the

Fond shall be obtained if it ii proposed f0 adopt procure-

ment proceduies other ;h,in Formal Open International Ten-

dering for goods' and services to be financed out of the pro-

ceeds of the loan, submitting to the Fund an application for

approval of pifuurenicm nicllinOKj signed bv ilnh anllioii nl

person together with its reasoning.

Immediately allei conclusion "of loan Agreement

the

copies of ull notices and iinrmctrjin to biddeis. the bid toim,

ifae proposed contiact, speculations _;.nd. drawings iind all

other documents relevant to itic biddir.fi shall be submitted

10 Ihe Fund lor its icview. The above documents/application

may bp forwarded, in duplicate, to the DEA (Jap:in Section:

" for transmission lo/ohlainin-j approval of 0 K . 1 .

ll(iii) The payment lo lilt overseas suppliei siiouUl

arranged ihiough an lrievoaible letter of credit to be opened

by the Bunk ot India, Toiyo ' 1 (her favoui under Ihe OECI-

Yen.Credit (Project Aid) N J . HJ-P. l<> for 197^l).flo the details

of which are given in Section VI below.

H(iv) Only one conliacl should be enicieJ into against

the import licence. In exceptional cases, more lhan one" eon-

Uact muy be permitted to be entaied into, for which piler

approvnl of the Department of Lconomic Ail.'liis (lapan

Section). Ministry of Finance, shoulo be obtained soon aflcr

Ihe dale of issue of the import licence.

Illv) Eljgibility 01 Suppliei.—Supplier slmll te nationals

of Ihe eligible source countries or juridical persons incor-

porated and .registered in the eligible source countries and

controlled by nationals of the eligible souice countries

ll(vi) Declaration in Contract.—The following statements

of eligibility by the supplier shall be lulded to each contract

''I, the undersigned, hereby certify I ha' the goods to be

supplied are produced in

_.i-~i—*

(clipihli;

source country).

I, the undersigned, funhei cfitify ijia: to the best- of m\

information tind belief, the poi tion imported from the non-

eligible source countries is less than thirty rer cent (30'r I

in accordance with the following formula :

lU/jorted C[F pri.-c i-f,nporl Duty

Supplier's FOB Price

and

"I, the undersigned, hereby ceitify that-*—

..___—,i

(name Of company) has heen incorporated and -legbtered

——

—(name of eligible touice

country), and is controlled by nationals of the eligible source

countries"'.

JKvii} Permissible iinrioits front non-clieiblc souree count-

lies.—Financing of goods which contain materials oiiginatin;/

from a non-eligible source country or countries may be made,

provided-thai the imported portion is less than thirty per i*""

(30%) on an item-by-item h>si<; in accordance

with

Ihe

following formula :

Imported CIF Price^Llnipor,t Duty

Supplier's FOB Price

Section HI'—Condition-, \6 be'incorporated in the siippjv con-

tracts :

lll(i) The following'provision should ho specifically em-

bodied in Iht supply contract :

(a) The contract is .mangrd in accordance with the loan

Agreement between the Government of India

Snd

Oveneas Economic Cooperation Fund of

l.ipan

lOECP)

dated the 14lh Mry. 82

concerning Ihe

Yen, Credit No. TD-P. N (Project Aid) for Tele-

cumunications Project (V) and will be subject to

the approval of Cicnernmcnt of India and the Ovei-

seas Economic Cooperation Fund.

(b) Payments to Ihe sjpplici shall be made ihroueh .n

irrevocable Letter of Credit to be issued bv the

Bank of India. Tokyo under the Loan Acieemen'

No. 1D-P. 19 c'at^.I 14th May. 82 between

the

Government of India nnd, the Overseas Fcewmic

Cooperation Fund of lapan (OFCF).

such in-

formation and documents ns may be requ'"4 under

Yen Credit arrangements bv (he Government of

Indi.i on the one hand .md the Ul C I on llic ollici

(d) Certificates tuiplicalc) in the loims ii.Uic.ilcd

ll(\i).

IlldU 111 case the Mippli'T is loc itcd in kipan, the supply

conn act should contain a clause Him the Upanesc suppliei

ajjiees to make shipping an augments in ciuisullnlion with

Ihe hmhassj ol India, K>k� and dial for ihis purposr he

would keep the I-mbass\ i>f India, loKju inloimed of the de-

livery schedule ol the goods iiuohci! and notify the hmbassy

of India at least six; wc.lij in adyance of the shipping ic-

" quired so that suitable ananHenuuis could- be nwdc. In cv

ccptional cases, wheie the Indian impolicy requne u,

this

' period of notice may be icducsd. Ihe Japanese supplier

should also agree n send a cable advice to ihe importer after

each shipment giying the nec-ssuy details und.n copy iheie

• of should be sent to the 1-mbassy of Indin, Tokyo.

Section IV--C ontract ,\ppio\,d by OFC l^J :

IV(h) Within the stipuhiL.I pciiod lor placement of firm

orders Ihe licensee *>hould forwaid 4 copies of the contract

duly signed by both DdPifcT and ovciseiii suppliers supported

by order contiimation m '.viiiing by the overseas supplier or

their photo copies complete in all iespccis, together

with

two photo copies of the relevant valid import licence,

Japan Section, Department of Economic Affairs, Ministry

' of Finance, North Block, New Delhi.

-1 VCJIJ The ubovc piocedui'e will also alpply to all contlact-

arncndmenls causing-essenlLd modifications to the contsnts of

. contracts.oi in its price,

• IVtfii) The Mimstiy of Finance (DEA) Japan Section will

arrange to send one copy ol ihe contract documents to the

OECF for their approval loi finahcing under Yen Credit

Noi 1D-P

19. (Pioject Aid) for Telecomrrjiinicalion Piojccl

(V).

Section V—Payment io

Ihe oveLseas supplieis—-Letter

Credit Pmcet[uic :

V(i) On'receipt of the intiinjrion of the contract approval

lioni the OECK, by the JMinistiy of Finance, Depuitnfm

of Lconojuics Affairs, Japan Section, DGP&T end the CAAA

will be informed of the same. Whertnfter Ihe DOP&T should

approach the Controller of Aid Accounts «fc Audit, (hercin-

aftei leferrcd to as' CAA&A)

Deportment of

hconomic

Affairs, Ministry of finance, UCQ Bank Building, Parliament

Street, New Delhi with a ieqiie-,1 in Ihe ioim.attached

.Annc\-urc-MI for issue" of a letter of authotisatjon.

The CAA&A will is-aie i leitei of luthoris.ition as in the

form attached

as Annexure-IV a'ddrcssad. to the

Tokyo

Bianch of the Bank of India for opening an iircvocuble J^etter

of Credit as in the form attached as AnpexnreTV (for physi-

cal imports) or Anncxurc-Y I (for services) in favour of Ihe

overseas supplier concerned. Copies of the Letter of Autho-

risation will be endorsed to the OFCF, the Embassy

India, Tokyo, the importer's Bank in India, and Japan Sec-

tion, Department of Fcomimc Affaiis, Ministry of Finance.

Vlii) On* icccipt of tho letter of authority ihe Bank of

India. Tokyo, w.ill establish an inevocublc letter of credit .as

per Anne�re-V (applicable to physical imports) or VI (ap-

plicable to services) in favour of the overseas suppliers con-

cerned and will also foiward a copy of the same to the

OFCF, Embassy of India Tokyo, ihe impoiter's Bank in

Indi'a nnd the C\A&A.

The above procedure of opening of letters of credit

the basis of the letters of authoiity from CA \&A would ipso

facto apply to nil such amendments to letter of authorisation/

letter of credit as may become necessarv due t.i contract

amendment or other-wise.

V(iii) The overseas sunplh, shall, -ifter. effecting shipment

of the poods, present Ihrouuh his banker, the documents

specified m tjie letter of credit- to the Bank of India Tokyo

If the documents aie found to be in oid:i, the Bunt of India'

Tokyo will release the amount specified in the documents to

-(he overseas supplier throuch his bankers and will thereaftei

obtain rtimblirscmcnl of the .Aia amount fiom Ihe OFCF.

• Vih) All charges on account of opening,' maintenance snd

on iht operatinh of the letter r-f c?dit Mill he either fn ir,e

THE GAZETTE OF INDIA : EXTRAORDINARY

[I'AIU I—SEC. 1|

account of overseas suppliers or the importer. Bank, of India.

Tokjo will therefore recover oil these charges from the sup-

pliers Bank or the imporler, charges for handling and ne-

gotiating the document!. Drat othrr incidentals will also be

borne by the supplieis/impoite¹".

For the time lag between the dates of payment of the

F.O.B. cost of the material by the Bunk of Jndia, Tokyo to

ihe

suppliers and the date of leimbuisement by ihe OECF

the Bank of India will charfie interest ns per the terms and

conditions of the Agreement entered into by them with the

Government of India (M/o Finance) on 25-3-1980 and gel

the same- reimbursed by ihc Embassy of India, ToVjo, The

expcnJiiure on account of this interest-payment by the Em-

bassy of Jndia in Japan will be recoveied from the P& f

Departmtnt (vide Section Vl(h') infra.

Section VI—Responsibility for rupee deposit ;

VJtf) The Bank of India, Tokyo will forwaid the negoti-

able shipping documents to the accredited bankers of DGP&T

as indicated in the Appendix to the relevant Letter of Autho-

rity and

the bankers

will in

turn

ensure

thai

Ihe

DGP&T make the rupte denosits at RBf, New Delhi

S.B.I. Tis Hazuri, Delhi before releasing the shipping docu-

ments. The rupee equivalent of the Yen payments made

the overseas supplier are to be deposited into Government

of India Account in the manner presciibed in Public Notice

No. 74-lTC(PN)/74 dated 31-5-1974. The exchange rate to

be adopted for computing tho rup«e equivalent of the Yen

payments made to the overseas supplier!; will he the composite

late of exchange applicable to the date of payment which

will be worked out in accordance with the method prescribed

in Public Notices No. 109-ITC(PN)/74 dated 3-8-1974 and

No. 8-ITC(PN)/76 dated 171-1976 or as may be notified by

Government from time to time through Public Notices of

the CCT&E or through Exchange Control Circulars of the

Reserve Bank of Jndfla, The Head oi Account to which the

above rupee deposits should.be credited Is^ltK—Deposits aTfd

Advances—843-Clvil

Deposits-Deposits

for

purpose

etc.

abroad—Purchase under credits/Loan. Agreements

Loans

from the Government of Japan-6.0 billion Yen Credit No. ID-

• P. 19 for Telecommunication¹? Project (V)". The prcvisicni

regarding calculation and deposit of interest charues men-

tioned in the above said Public Notice of 31-5-1974 will,

however, not be applicable, as no interest charge? are re-

coverable in respect of imports made bv Central Govern*

ment departments.

Vliiij The amount referred tj abme should be deposited

in cash to the credit of the Government either in the Reserve

Bank of India, New Delhi or State Bant or" Tndia, 7 is Hazari,

Delhi as contemplated in Public Notices No. 184-lTC(PN)/68

dated 30-8-1968. No. 233-ITC(PN)/fift dated 24-10-1968 No.

132-TTC(PN)/71 dated 5-10-1971. No. 74-ITOPN)/ 74 date-]

31-5-1974 and No. 103-TTOPN)/7fi dated J2-1O-1976:

VKiii) The concerned Bank in India shall also iurnish

iucb additional deposit in the same manner stipulated above

as mny be requested by the Government of India, Ministry of

Finance, Department of Economic Affairs, on account

service charges within -seven dayi after such a demand

made by MiniMry of Finance [Department of Economic

Affairs), While filling in th-: \.irlous columns/in ;be chali.in

it should be ensured by the importen/their bankers that

the information prescribed in para 2 of

Public No*lcc No

132-ITC(PNV7I dated 5-10-1971 ,\ invariably indicated in

the column "full particular* of remittances and authority (if

any)" of the challan. The following particulars should

in-

• variably be furnished in the treasury Chilians :—

(a) Ministry of Finnic tetter of authority No, and date,

(b) Amount of Yen currency in respect of which

de-

posits are to be made together with rate of con-

version adopted.

fc) Date of payment to the overseas supplier, •

Thereafter Ihe Treasury Challant evidencing (he rupee

deposit should be sent by registered post to the CAA&A in-

dicating reference to the letter o* authorisation issued

him and also enclosing copir) of the

invoice and ihjppfrijt

documents.

Noie : Importer"* Banks in Irdia should ensure that the rupee

deposits are invariably mad; within 10 days of the

receipt of the advice of pyaments and negotiable

shipping documents from the Bank of Jndia, Tokyo

and that the CAA&A. Ministry of Finance IDEA),

New Delhi is kept informed of the fact Immediately

thereaftei.

Vftivj The concerned bank in India should also endorse

the amount of rupee deposits on the exchange contiol copy

of the licence and send the r;quisitc, "S" Form to the Re-

serve Bank of India, Bombay.

The rupee equivalents of Yen paymenls on account

interest charges-etc made by Embassy of India, Tokyo, to

Bank of India, Tokyo will also be calculated in the manner

laid down in para Vl(i) of Section VI ubov^ and deposited

in favour of the Principal Accounts. Officer Ministry of Ex-

ternal Affairs, New Delhi, for which purpose, CAA&A will

be tailing suitable advices.

Section VII—Miscellancr us provision? :

VU(i) Reports on the utilisation of Ihe import licence.-- •

The importer should send a monthly report, after the letter

of credit has been opened risarding shipment! and payments

made thereagainst and about the balance left, to the Con-

tioller of Aid Account* & Audit, Department of

Economic

Affairs, Ministry of Finance, UCO Bank Building. Parlia-

ment Street, New Delhi.

VU(ii) Notifying

Supplier of Special

Conditions,—The

licensee should apprise the supplisr of any special proviiions

in the import licence which may affect Ihe tuppHenj in carry-

ing out the transaction.

Vll(iii) Disputes.—It should be understood thai the Govern-

ment of India will not undertake any responsibility for dw-

putes; if any, that may arise between the licensee and the

suppliers. The conditions to be fulfilled by the supplier before

payment by the Bank of India, Tokyo must be clearly «pelt

out by the importer in Annexure-III under 'Terms of Pay-

ment". Provisions dealing with settlement of disputes thni.fcT

be included in the conditions of contract.

Vl(iv) Future Instructions.—The licensee

shall promptly

comply with any directions, instructions or order* by

the

Government of India from time to lime regarding any and

all matters arising from or pertaining to the import licence

and for meeting all obligationi under the Yen Credit Agree-

ment (PROJECT AID) No. ID-P. 19 with Overseas Eco-

nomic Cooperation Fund of Japan (OECF;.

VIIf\) Breach or violation.—Any breach or

violation of

the conditions set forth in the above

clauses will result in

appropriate action

under the Irrtport^ & Exports (Control)

Act.

VI7(vi) List of Anneuiret

Annexure-I.—List of eligible source countries

Annexure-II.—Main Guidelines for Procurement.

Annexure-III.—Request for issue of Letter of Authority.

Annexure-IV.—Form of Letter of Authority.

Annexure-V.—Form of Letter of Credit (Applicable) of

Physical Imports.

Annexure-VL—Form of Utter of Credit (Applicable to

. Services),

ANNEXURET

LIST OF ELIGIBLE SOURCE COUNTRIES

A. Developinu Countries and Territories :

(al) Non-OPEC Developing Countries :

1. AFRICA, North of Sahara ;

E«ypt

Morocco

Tunisia

M. AFRICA, South of Sahara

Angola

Botswana

Bniundi

Cnmereon

Cape Verde Islands

Central African Rep.

Chad

Conioio Islands

Congo, People's Republic ot

Dahomuy

Equatonal Guinea U)

Ethiopia

Gambia

Ghana

Guinea

Ivory Coast

Kenya

Lesotho

Liberia

Malagasy Republic

Malawi

Mali

Mauritania, Mauritius

Moozambique

Niger

Portuguese

Guinea

Retinion

Rhodesid

Rwanda

St. Helena and dep (_2j

Siio Tomo and Principe

Senegal

Seychelles

Sierra Leone

Somalia

Sudan

Swaziland

Terro. Afais and Issas

Togo

Uganda

Un. Rep. of Tanzania

Upper Volta

Zaire Republic

Zambia

IT. AMERICA, North ami Central.

Hahamas

Barbados

Belize

Bermuda

Costa Rica

Cuba

Dominican Republit

El Salvador

Guadeloupe

Guatcmal.i

Haiti

Honduras

Jamaica

Martinique

Mexico

Netherlands AnTilles

Nicaragua

Panama

St. Pierre & Miquelon

Trinidad and Tobago

West Indies fBr.1 n.i.e.

(a) Associated St.tfes (4)

fb) Dependencies f5)

[V. AMERICA, South

Argentina

Bolivia

Brazil

Chile

Colombia

Falkland Island*

French Guiana

Guyana

Paraguay

Pern

Surinam

Uruguay

V. ASfA, Middle Fast

Bahrain

Israel

Jordan

Lebanon

Oman

•SyriHn Aiab Republic

United Arab 1-mnates (,f>)

Yemen Aiab Republic

Yemen, People'i U.K. (7)

VI. ASIA, South

Afghanistan

flancladesh

Bhutan

Hurma

India

Maldivm

Nepal

Pakistan

Sri 1 ant»

Vlf. ASIA, V*r Iiait

Brunei

Hong Kong

Khmer Republic

Korea,

Republic of

Laos

Macao

Malaysia

Philippines

"vingapor*

I aiwan

Thailand

Timor

Vi»>Num, Rep. or

V'it-Num Dem. Rep.

VIII. OCEANIA

C oeL Islnndi

Fiji

Gilbert &. Ellice Ii.

French Polynesia (8)

Nauru

New Calendonla

New Hebricei (Bi. rind Fi >

Nine

Pacific Islanjs (US) (9)

Papua New Guinea

Solomon Islands (Br.)

Tonga

Wallis and Putunn

Western Samoa

IX. EUROPE

Cyptu»

Oibraller

Greece

Malta

Spain

Turkey

Yucosk\ is

d) Formerly 1he territory of Spanish Guinea, including

the island of Fernando Po.

(2) Including the foliow-iny islunds*- Ascension. Tnstnn

da Inacces-iihlei. Nightmcale, Goiifh.

H) Main islands,

Atnbu,

Bonttire,

CmacMo,

Siiha,

St. Eustacit SI. Nfartin CSouthern pait).

(4) Main islands¹ : Anti.uu*. Dominic:), Grenada, St. Kilts

(St. Caristophe), Nevin-AncniMa, St. Lucia

and

SfrVinient,

(5) Main islands : Montseii.it. C«)>m,in. 'I'mIs

and

Caicos, and Biitish Virain Islands.

ffil Ajman, Dubai,

Fujairtih, Rai a: Khm'mah. Sharjah

and Umm al Ouaiw.<in.

(7) Includinc Aden and various sultanates and emirates.

f8) Comprising the Sniffy Islands Tincluding

Tahiti),

Tke Austral Islands, the Tuamom-Gambicr Gicurt

and the Marquesas Islands.

(9) Trust Territory of lhe Pacific Islands : Caroline Is-

lanUi, Marshall Islands, and Marine Isl.mJs (except

Guam¹),

889GI/82—3

] 8

THE GAZETTE OF INDIA : EXTRAORDINARY

[PART I—SEC.1]

(a) Member or Association Countries of OPEC

Algeria

Bolivia

Liuiyan Arab Republic

GaDon

Nigeria

Ecuador

Venezuela

Iran

liao

Kuwait

Qatar

Saudi Arabia

Abu Dhabi

Indonesia

ANNEXURE II

MAIN GUIDELINES FOR PROCUREMENT OF GOODS

AND SERVICES UNDER THE PROJECT LOAN AS

FORMULATED BY OX.C.F.

I. Advertising:

For all contracts subject to Formal Open International

Tendering, invitations to bid shall be advertised in at least

one newspaper of genoral circulation in India.

II. Bidding Documents and Contract? :

1M. Bid Bonds or Guarantee : Bid bonds

or bidding

guarantees are a usual requirement but they should not be

set so high as to discouiage suitable bidders. Bid bonds or

guarantees should Lie released to unsuccessful bidders as soon

as possible after the bids have been opened.

II-2. Condition of Contiact : The conditions of

contract

should clearly define the rights and obligations of the importer

and the contractor or supplier, and the powers and authority

of the engineer, if one is employed by the importer, m

the administration of the contract and any variations there-

under. In addilion to the customaiy general conditions of

contract, some of which are referred to in these Guidelines,

special conditions appropriate to the nature and location of

the project should bo included.

11-3. Type and Size of Contract: Contracts can be let on

the basis of unit prices for work performed or ittms supplied

or of a lump sum price, or a combination of both for differ-

ent portion-* of the contract, according to the nature of the

goods or services to be provided and tbe bidding documents

should clearly state the type of contract selected.

Contracts based principally on the reimbursement of actual

costs aro not acceptable by the Fund except in exceptional

circumstances.

Single contracts for engineering, equipment and construc-

tion to be provided by tbe same party ("Turnkey Contracts").

are acceptable if they offer technical and economic advant-

ages for the borrower country.

IT-4. Fligible suppliers : Exporters or suppliers whose aoods

and services are to be financed out of the proceeds of the

Loan (h-re'naf'cr referred to n3 "the eligible supplier") shall

be nationals of the eligible source countries satisfying the

following conditions.

(1) a majority of subscribed share? shall be held by

nationals of the eligible source countries,

(2) a mnioritv nf fulMime din.-eroi\ shall ht nafbnnls

of the eligible source countries, and

(31 s'l^h furidJcnl 'perioni' shall be roistered In the

eligible source countries.

ITT-1. Contract Price :

(a) Thn contrary price should be stated in .fananew Yen

provided, however, that the portion of the contract

price which the contractor wi'l snend in the borrow-

c^r\

country should bt: stated in the

bnrrowe V

currency.

(b) Price Adjustment Clause* :

Bidding documents should contain a clear statement

wnether firm prices lire required or escalation of

the bid prices is acceptable.

A provision should be made for adjustment in the

contract prices in the event channcs occur in toe

prices of the major cost constituents of the contract,

such as labour and important materials.

The specific formula for price adjustments should bo

clearly defined in the bidding documents.

A ceiling on price adjustment should be included in

contracts for the supply of goods, but it is not

usual to include such a ceilinji in contracts for civil

works.

No price adjustments should normally be provided for

goods to be delivered within one year.

The Guidelines do not attempt to identify the- various

methods by which contract prices may be adjusted

The bidding documents should state precisely the typea

insurance to be provided by the

scccessful

bidder.

IH-2. The contract duly signed by both parties or purchase

order by the Indian importer placed on the overseas supplier

supported by order confirmation in writing by the overseas

supplier, or their pholo copies are also acceptable to the Fund,

III-3. The following statement of eligibility by the supplier

shall be added to each contract:

"I (We) hereby state that my (.our) company is an eli-

gible supplier, as

per cent (

per centj

of the shares are held by nationals of

(eligible source country), and

per cent (

) of tho directors are nationals

—

(eligible source country) and mv

(our) company has been refiistered in——

—• •-

(eligible source country)".

IV-1. Standards: If national standard to which equipment

or materials must comply are cited, the specifications ihould

state that commodities meeting Japan Industrial Standard

or other internationally accepted standards, which ensure an

equal or hifiher quality than the standards mentioned, will

also be accepted.

IV-2. Use of Brand Names: Specifications ehoukl be based

on performance capability and should only prescribe brand

names, catalogue numbers, or products of specific manufac-

turer if specific spare parts^{a r}e required or it has been deter-

mined that a degree of standardization is necessary to main-

tain ertain essential

fentures. In the latter ens© the speci-

fications should permit offers of alternative commodities which

have similar characteristics and provide performance and

quality at least equal to those specified.

IV-3. Guarantees,

Performance Bonds and

Retention

Money: Bidding documents for civil works should require

some fcrm of surety to guarantee that the work will be

continued until It Is completed. This surety can be provided

either by a bank guarantee or by a performance bond, the

amount of which will vary with the type and magnitude

of tho viork, hut should bo sufficient to protect the borrower

in case of default by tho contractor. Its life should extend

sufficiency beyond completion of the contract to cover a

reasonable warranty period. The amount of the guarantee or

bond required should be defined in the bidding documents.

In contracts for the supply of poods it is usually preferable

to have a percentage of the total payment held ns retention

money 11 guarantee performance than to have a bank guaran-

tee or bond.

The percentage of the total payment to be

hd'1 as retention money and the renditions for its uHmatr

npyment should be stipulated in the bidding documents. If

howrvfr, a bank jruarantee or bond b preferred It should be

for a nominal amount,

V Liouirlaied Dnroaffe : Liquidated damage clause, should

be fur-Turfed In bidding documents -when delays In completion

or drlfverv will result In extrn co<<*, lo-;s of revenues or lesi

of other benefits to the borrower. Provision may also be

' made for a bonus to be paid to contractors for crnpletion

of civil works contracts at or ahead of limes spetified in

the contract when such, earlier completion would bo of benefit

to the borrower.

cluding in the bidding documents should contain clauses,

when appropriate, stipulating that a failuie on the part

of the parties to perform their obligations under the Con-

tract shall not be considered a default under the Contract

if such failure in the result of an event of force majeure

(to be defined in the conditions of the Contract).

VII. Settlement of Disputes: Provision dealing with the

settlement of disputes should be included in the conditions

of the Contract. It is desirable that the provisions should

be based on "Rules of Conciliation and Aibitiation" whkh

have been prepared bv the International Chamber of Com-

merce or on such other arrangements as nitty be mutually

acceptable to the Indian Importer and the overseas supplier.

VIII. Language Interpretation • Bidding documents should

be prepared in English. If other language should be used in

the bidding documents, English should be added

to such

documents and it is required to specify which is governing,

'* IX. Bid Opening, Evaluation and Award of Contract:

IX-1. Time Interval between Invitation and Submission of

Bids : The time allowed for preparation of bids will depend

to a. large extent upon the magnitude and complexity of the

contiact. Geneially not less than 30 days should be allowed

for international bidding. The time allowed, however, should

be governed by the circumstances relating to each contract.

IX-2. Bid Opening Procedures : The date, hour and place

for the latest receipt of bids and for the bid opening should

be announced in the invitations to bid and all bids should

be opened publicly at the stipulated time. Bids received after

this time should be returned unopened. The name of the

bidder arid the total amount of each bid and of any alter-

native bids, if they have been requested or permitted, should

bo read aloud and recorded.

Dt-3. Clarifications or Alternation of Bids: No

bidder

should be permitted to alter his bid after the bids hive been

opened. Only clarifications not changing

the «ubf>lancc of

the bid may be accepted. The importer may ask any bidder

for a clarification of his bid but should not ask any bidder

to change the substance or the price of his bid,

IX-4. Procedures to be confidential: Except as may te

required by law, no information relating to the examinaticn,

clarification and evaluation of bids and recommendations

concerning award should be communicated after the public

opening of bids to any persons not officially concerned with

these procedures until the award of a contract to the success-

ful bidder is announced.

IX-5. Examination of Bids : Follwing the opening, it should

be ascertained whether material errors In computation have

been made in the bids, whether the bids are fully responsive

to the bidding documents, whither the required 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 subs-

tantially responsive to the bidding documents, it hould he

rejected.

A technical analysis should then be made to eva-

luate each responsive bid and to enable bids to be compared.

IX-6. Post-qualification of bidders: In the absence of pre-

qualiflcatjons, the borrower should determine whether the

bidder whose bid

has been evaluated the

lowest

has the

capability • and financial resources' effectively

to carry out

the contract concerned.

If the bidder

does not meet that

test, his bid should be rejected.

IX-7. Evaluation and Comparison of Bids : Bid evaluation

must be consistent with the terms and conditions set foith

in the bidding documents. In addition to the bid price,

adjusted to correct arithmetical errors, other far»nr«t such

ti the time of completion of construction or the efficiency

and compatibility of the equipment, the availability of service

and spare parts, and the reliability of construction methods

proposed should be taken into consideration. To the extent

piacticable these factors should be expressed in monetary

terms according to criteria specirkd in the biadinn documtn.s.

The amount oi escalation^f^r pike adjusimtnis, if any, inclLd-

ed in the bids should not be taken into consideration.

The currency or currencies in which the price oileied in

each bid would be paid by the bonower il that bid were

accepted should

be valued

in terms of a single currency

selected Ly the borrower for comparison of till bids and

staled in the bidding documents. The rates of cxi-hanae to

be used in such valuation should be thi selling latcs published

by an official souice, and applicable to similar transactions

on the day bids are opened unless there should be a change

In the value of currencies btfoic the award is made. In such

cases the exchange rates at the time of the decision to notify

the award to the successful bidder should be used,

1X-8. Rejection of Bids : Bidding documents usually pro-

vide that borrowers may reject all bids. However, nil bids

should not be rejected and new bid¹) invited on the same

specifications solely for the purpose of obtaining lower piices

in the new bids, except in cases where ths lowest e�lubi.i.d

bid exceeJ;, ' c

*s estimates by a substantial amount.

Rejection of all bids may also be justified when (a) bids tire

not responsive to the intent of tha bidding documents, or

(b), there is a lack of compcti'.on. If all bids are rejected,

the borrower should ievicw the cause or causes justifying

the rejection and either consider levision of the specifications

or modification in the project (or amounts of work on items

called for in the original invitation to bids), or bifh. In

special circumstances, after consultation with the Fund, the

borrower may negotiate with one or two of the lowest bid-

ders to try to obtain a satisfactory contract.

IX-9. Award of Conract:- The Aw~rd of a contract should

be made to the bidder whose bid has been determined to be

fho lowest evaluated bid and who meets

the apiromiata

standards of capability and financial icsources. Such bidder

should not be required, as a condition of award, to under-

take responsibilities on commodities not stipulated in the

specifications or to modify his bid.

ANNEXURE III

Request lor .usiiw ^f tho Letter of Aulhoiity

No,

Date :

The Controller of Aid Accounts & Audit.

Ministiy of Finance,

Department of Economic Affairs,

U.C.O. Bank Building, l3t Floor.

Parliament Street,

New Delhi-110001.

Sub: Import of

from

lapan under the Yen Credit No.——~——- (Project

Aid)

Sir,

In connection with the import of

fiom

under the above mentioned Yen Credit

No.

(Project Aid) we furnish Ihe follow-

ing particulars to enable you to iwue the Letter of Au'hority

to the

{nanw of the Bank) which

should be the same as given in (n) below for opening a

letter of credit in favour of the overseas supplier concerned).

(a) Name and Address of the Indian importer.

(b) Number, date and value cf the impoit licence end

date upto which it is valid.

purchase or Formal Open International Tendering

In which cftse it should be indicated whether th?

contract has been awarded on the bnsis of te hrii-

cally suitable offer with reasons, if any.

(d) Brief description of the goods.

(e) Origin of the goods.

(f) Percentage of the import components from non-eligible

lonrce countries, if any.

2 0

T H E^{GAZETTE OF INDIA : EXTRA ORDINARY}

[PART 1 - S E C 1J

(g) Oioss K)» value of comiuct (m "Y*ⁿ⁾

in) Mnoiint or Indian "gents commission (in > enj, it

any

(it Net F-OB value (m \en) loi

which the Lctlei ol

Withoiliy i* requued.

U) Nuuibei and dale <•» it'e conU.i-t v.ith oveiseu* »up-

pliers

Hi Nume and Addict ot thj oveiseis supplier:

(i) Nationality.

tn) PerceDtujie of the bhuies held b> nationals ot

the eligible kOiircc countries.

(in) Nationality ot the ieptev:nUti\e and/oi Piesidenl

of the supplier.

dv) Percentage ol Diiectors who .11 e nationuls ot eligi-

ble source countries.

(I) Payment terms and probable dale? on which pay-

ments under the contract will fall due.

(m) I \pecled dale o1 completion of deliveries.

(n) Documents to be pi evented at the time of payment

to Bank of India, Tokyo (indicating No. of sets ol

each and their disnoial).

(o) Shipment instructions (indicate it trans-shipment/

part-shipment pennitied or not peimittcd)

(p) Name and addieM of the impoitei's bant in India.

(qj Whethei .1 eontr.Rtls) under the same licence has

been placed and noulied to the Japanese auihoriiiet,

anil if so, the No,, date and value of each sm.h

i ontract and the reference of the Ministiy ol Hntmce

undei whii-h it has been notified to the O F . C h

ANNhXURh IV

(Lc^lci of Autlmiiy jonn)

No. r.

Government ol India

Minisliy of l-mance

(Department of hconomic AlTamJ

New Delhi. Ihe

l<>

1 he Hank of Lndiu,

Tokyo Brunch,

rok}o (Japan)

Sublet:—Impott

undei Yen Credit I Pi eject

Aid)-Loan

Agreement No.

— h » u c of Letter of

Anthontv 101 openinji Letter of Credit

Dem Sirs.

In accoidance vwih the tetms and conditions ot the ajjiee-

menl daled 25-3-1980 entered into vvith your Bank, you are

heieby authorised 10 open irrevocable Letlei of Credit lor

:iii amount not exceeding Yen

•—

— — — —

Favouring MA

•

— — M uei attached

details.

A copy each of the letter ot credit opened by voui Hunk

"My be endorsed to the importers Dank, to (he

OECF

I nibassy of Tndia, Tokyo and to us.

Payments to the supplier in leims ot the letter of credit

will he made initially out ot your own funds.

Alter pzy-

ments, \ou mutt clmni immediately reimbursemcnl'i of the

•imounts paid bj niiiiishinj; necessary documents to

the

Hoi the time lag bet" ecn the date, of pnyment by >oi>

10 Ihe supplier and the date of Us icimburscment by the

OECF. you will be paid /nteicsts aj pel term-i of the abo\e

agieement by the Embassy of India, Tokyo. Tru olher baiik-

infi charaen including ihote on accouut of opening mainte-

n.mte and lor the orieration of the-Letter of Credit HI

also those connected with handling negotiating documents and

charge; of oversea* supplies banUis if any, aic to be borne

by the overseas »ur»ph<MS and hence not payable by the

importer and rrmy therefore be recovered from the lUpphen

directly AN «uch no reimbunemcrt of such charge* is to

lie claimed trom Ihe OECT.

\% and when an> payment )* made by you wnd rcimbume-

ment is. made to lou. un advice in Ihe piescribed form

-should be sent to this Ministry.

This Letter of Authority i> inxnded to. opcnmi 01 L/C

lavounng the oveiseaa supplier. Subsequert amendment! to

L/C or furthci fresh L/Cs agHinst this authorisation may

uot be acted upon in the absence 01 u upecific authority from

this Ministry

Ihi*. letter of Authority will remain valid upto —' — .

Yours faithfully,

Accounts Officer.

Copy forwaided to •—-

I. Importer

—--

——with leletence to iheir

2 Impoiters' Banket

—

— —

—. I hey are

requested to arrange to deposit the rupee equivalent of the

Ven payment to the overseas suppliers on receipt ot dotu-

ments trom the Bunk of India, Tokyo Branch. The tupec

equivalent of amounts Jisburfecl to the suppliers will have

to bo calculated by applying the composite iate oi conversion

us prevailing on the dato ot payment to overseas suppliers in

accordance wilh the Public Notice No. 8-irC(PN)/76 dated

17-1-1976 or such other l'ublic NJUCCS as may be issued

fiom time to time. It should be ensured thai, these deposits

ate made befote the original set cf import documents are

handed over ro the importer for Custom? cleaiancc

These amounts should be deposited cuhei v.ith. the RBJ,

Nev> Delhi or the S.B.I., T13 Hazari, Delhi, fn this toi.nec-

tion their attention is also invited to the provijions of the

Public Notices No. 181-FTC(PN)/68 dated 30-8-68, 233-

HC(PN)/68 dated

24 IO-1%S,

132-ITC(PN)/71

dtited

s-10-1371, No. 74JrC(I»Vj/74 dtited 31-5-1974 aud

No.

]«.3-irC(PNO/76 dated 12-10-1976. The head

ot Accounts

tx> be ci edited

11 'K-LXpQMtj A Advances—843—Civil De-

posits—Deposits for purchases etc., abroad

under Purchase

under Ciedit/Loan Agreements— Loans from the Government

ot Japan^6.0 billion Yen Credit (1'ioiect Aid) No IDP-P.

19 for 1979-80,

One copy of ;he chalhn in oiiguwl, in cases vvherc th»

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

or the SBl, Tis Hazaji, DeJhf »s presciibed in Public Notice

l32-rrca>N)/71 dated 5-10-1971, should be sent by

them lo the address jiven below alonewith a forwarding

lettet jivinj full details ol the advice notes leccived froni

the Bank of India, Tokyo Bianch

The Controller ot Aid Accounts &, Audit, Ministry

of I inancc (Depaitment of Economo Affairs), 1st

Moor, UCu Uank. Buildinjf, l'ailiament btreei New

Delhi-1.

In cases wheie the rupee equivalents aic remitted by menns

"H^^

r i f u. ** IlilJ l1owi? 1J1 tfi.° Public; Notice dated

24-10-1968 montioned abovo, intimations thereof should be

sent to the address erven above. ln all cases, full particulars

of the rupee equivalents deposited should be furnished to this

Derailment.

The bankinu charges, interest and other charues of the

Hunk ot India, 7oky0 Branch (includine charee, of the over-

sea, *i,pP;,cn bankets), ,f .my, should be settled by payma

^ ^{e i l}, / ^u^ ^{e e} «l"^1VHl«nts to the- Principal Accounts Officer in

the Ministiy of External Affairs, New Delhi Fo> this purpose

appropriate advices will be sent by this Department on recVint

of relevant information from the Bank of India Tokyo/

tmbdwy of India in Japnn.

3. The Director, Lojn Department-IT. Overseas r'conomic

\<sra^TA^'&^a,t. Kf • * • ' • ^{o h i 5}

4 Embassy of India, Tokvo.

*i. The Under Secittaw, Japan Section, Ministry of Finance

Derailment of Economic Affaiis, N^v Delhi

^ccuunK Oflloci.

ANNEXURE V

Form OECF-LC I

Irrevocable Letter of Credit

(Applicable for goods)

Date

This, Letter of Credit has been iisuetl

pursuant to Loan Agreement No.

dated

(Name «md addrc-s of the Supplier)

between (Borrower) and THE

OVERSEAS ECONOMIC COOPE.

Dor Sir-.,

RATION FUND

We advise you that we have opened our irrevocable credit No,

— — — —

in your favour for account of

— „

—for a sum or sums not e\ce*llng an aggregate amount of

— — ~ —

(Sty

yen

) available by your drafts at sight for full invoice value drawn on us, to be accompanied by the following

documents :

Signed commercial invoice in

Hill s«t of clear o 1 board ocean bills of lading made out to order and blank endorsed and marked ''Freight" and "Notify"