Subject NOT available

click here for IIIF manifest

REGISTERED No.D.( D . N . ) - 72

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 194] NEW DELHI, TUESDAY, NOV. 16, 1982/KARTIKA 25,1904

Separate paging is given to this Part in order that it may be filed as a separate

compilation

987 GI/82

(1)

987 GI/82—2

MINISTRY OF COMMERCE

IMPORT TRADE CONTROL

PUBLIC NOTICE NO. 55-ITC (PN)/82

,Ncw Delhi, the 16th November, 198?

Subject .•—Licensing condiLions in respect of imports of goods and services under the Yan Credit of Yen 2.68 billion for the Implementation of the Indian Railways Development Project.

Hie No. IPC/23 (35)/82. The teims and conditions govern- ing the issue of import licence in respect of import of goods and services under the OEGP Loan Agreement No ID-P. 17 (the Indian Railways Development Project) of Yen 2.68 billion as aiven^ in Appendix to this Public Nolice are notified for information.

>

APPENDIX TO MINISTRY OF COMMERCE

PUBLIC NOTICE NO. 55 1TC (PN)/82 Dated the 16th

November, 1982

Licencing Conditions in Respect of imports of Goods and ser- vices under the Yen Credit of Yen 2.68 billion for the Imple- mentation of the Indian Railways Development Project

Section—1 : General Conditions

I (i) The Yen credit of 2.68 Billion extended by the Overseas Economic Coopciation Fund of J.ipin (OECF) for fioancinn the import requirements of the Indian Railways Development Project is untied in favour of developing countries. Aacordingly the goods and services to be procuded under thiv Credit can be imported from Japnn nncl all countries enumerated in the list at Aniiexure-I which will be eligible source countries under the Credit.

I Chi Import lic"nee(s) under the Credit can be issued only for such items and for such value as have been specifi- cally cleared by the DGTD/CG Committee. The value of import licencc(s) is iucd under this Credit should not exceed 3,000 million (CLF).

The rupee value of the I /L shall be determined with ref. to the exchange rate notified by the Department of Revenue (Customs) and prevailing on the dt'te or iS'jiie of the I/L and indicate in the body of ihc Import Licence(s) as per para 2 of the Public Notice No. 78-ITC (PN)/74 dt. 6-6-74, issued by the CCT&E, which also enjoins thiit the Customs Authorities and the auth.iraed dealers in foreign exchange will mate debits to the value of the Iicence(s) at the exchange rate specified on the import licence (s). The licence will bear the superscription "Japanese Yen Credit No, ID-P. 17". The first and 2nd suffix to (ho licence code will be "S/JC". This, will also be repeated in the leter

from tho CCI&E forwarding the import licence to Indian Ra'lwuys a copy of which should be endoised to the Ministry of Finance, Department of Economic Affairs (Jupan Section}

I (iii) Trnpo-t 1 icings) c".n be issued only in favour of

Indian Railways on C.I.F. basis,

1 (iv) Depending on the convenience of Indian Railways more than one JyL rr ay be issued under this credit but the total value must not exceed 3,000 million (C1P) £is specified at (i) above.

I (v) The extension of the validity ef. import licence, m-Ly on applicjiion by Indiau Railways., be oranted up to 31-12-86. Request for further cxtenbion, if any, should be referred to the Department of Economic Affaiis (Japan Section).

I (vi) Imports to be finrnjed i-nder the Cicdit are res- tricted to tha list of goods ;>nd &er"ices attached tn the 1/L duly uttested by the Licensing Authorities.

I (vii) No remittance of foreign exchange will be per- muted i'cainit the 1/L. Any payment towards Indian Agents commission should be made in Indian rupees to the agents in India. Such payments, howeve¹', will fcrm part of the licence value and will, therefore be chaigcd to the Ji:eni.e.

1 (vni) Firm oidcr must be placed un FOB basis on the Overseas supplier located in the coualiies ihcntloiud in Anncxuie-I and sent to the Department of Fconomic Affairs (Jap.m Section) within 4 months from the date of issue of the I/L. 'Fieight and Insurance charges will be payable in India in Indi.m uipees. "Him orders" means puichr.se orders placed by ;he Indian Liccnrce on 'ihe Ove seas supplier duly siened bv the latter or puichas? contract duly signed by both the Indian Inipoitei and the Ov:ra.'s supplier. Orders on Indian Agents of Overseas suppliers and/or oid:r confiimation of inch Indian Agents are not acceptable.

clude Indian Agent's commission, if any, which should be paid in Indian rupees.

In no circumstances the contract value should be expressed in Indian lupees or in any other currency. The purchaRe cider and the supplier's order confirmation shojld be in ijnglish only.

II (ii) The main guidelines for procurement of coeds and services under the Ol'CF Yen Credit (Project Aid) are eiven in Annexure-II. However, noimally the procurement of foods and KCIvices should he made through Formal Open International Tcndciing and the following points should be borne in mind :

(a) Invitations to bid- shalt have to be advertised in at least one newspaper of general circulation in India.

(b) Bid bonds or biddiis guarantees are a usual re-

ciuirernent but they should not be set so high as to discourage suitable bidders

(c) Bid bonds or gmi antecs should be released to iin- suJccvsful bidders us soon as possible after the bids have been opened.

I' (iii) Tn cases where Formal Open International Tender- ins is not considered appropriate the Fund will accept the following alternative procedure :

(a) Where the- importer has convincing reason^ or maintaining a reasonable standardisation of his equipment.

(b) Where the number of qualified tuppliers i" limited.

(c) Where 'ihc amount involved in the procutement is so small that foreign firm

(d) Where, in addition to the cases (a), (b) & (c) above, the Fvnd deems it inappropriate to follow the formal open international tendering procedures or the Fund deams such procedure inapplicable, e.g., in case of emergency pro urement.

In the above mcniioicd CHSCS the following procurement procedure may be applied in such a manner as to comply vith the formal open international tendering procedures to Lhe fullest possible extent as appropriate.

(i) Formal Selective International Tendering,

(ii) Informal International Competitive Procurement,

(iii) Direct purchases fiom a single supplier.

However, prior approval of the Fund rhal] be obtained if it iv proposed to adopt procurement procedures other than Formi.l Open Internnlionnl Tendering for goods and services to be financed, out of thn ^ro;ceds of the Loan, submittini; to the Fun-i an application for approval of procurement method (O sijmed by a duly authorised person together with its reasoning-

MINISTRY OF COMMERCE

IMPORT TR4DE CONTROi

PubJic.Notice No. 53—HUPN),82

New Delhi, the 23rd October. 1982

Subject:—Licencing conditions in respect of imports of goods and services under the Yen Credit of y 6.0 billion foi Telecommunications Project (V) of the DGP&T.

File No. IPCl23(34) 82.—The terms and conditions governing the issue ot import licence in respect of imports of goods and sen ices under the Yen Credit of y 6.00 billion foi telecommunications Project(V) of the DGP&T extended by the Oveiseas Economic Civ-opei ation Fund (OECF) of Japan as given in Appendix to this Public Notice are notified for information.

MANI NARAYANSWAMI, CWef Controller

of Imports & Exports

APPENDIX TO MINISTRY OF COMMERCE PUBLIC NOTICE NO 53—ITC(PN)/82

Dated the 23id October, 1982

Licensing Conditions in Respect ot Imports of Goods and Services under the Yen Credit of y 6.0 Billioo for Tele- communications Project (V) Extended by the Overseas Economic Co-opeiation I-und(OECF) of Japan.

Section I—-General Conditions :

](i) The Yen Credit of v 6.0 Billion extended by the Overseas Economic Co-opei ation Fund of Jap.m (OECF) for financing the import requirements of the Telecommuni- cations Project of the DGP&T is untied in favour of deve- loping countries. Accoidingly the goods and seivices to be procured under this credit can be impoited from Japan and all countries enumerated in the list at Annexure-I Which will be eligible souice countiies undei the credit.

Kii) Import Licence (s) uixler the Ciedit can be issued

only for such items and foi such value a.s have been speci- fically cleared by the DGTD/CG Committee. The value of import licence(s) issued under this credit should not exceed Yen 6,600 million CCIF).

The rupee value of the import licence shall be determined with reference to the exchange late notified by the Depart- ment of Revenue (Customs) and prevailing on the date of issue of the import licence and indicated in the body of the import licencefs) as per paut 2 of the Public Notice No. 78-ITC(PN)/74 dated the 6th June. 1974. issued by the CCI&E, which also enjoins that the Customs Authorities and the authorised dealers in foreign exchange will make debits to -the value of the licence (s) at the exchange rate, specified on the impoit licence("s). The licence will bear the superscription "Japanese Yen Credit No. ID-P. 19". The first and second suffix to the licence code will be "S/JC". This will also be repeated in the letter fiom the CC'I&R forwarding the import licence to DGP&T, a copy of which should be endorsed to the Ministry of Finance, Department of Economic Affairs (Japan Section).

I(iii) Import licencefs) can be issued only in favour of

DGP&T on CIF basis.

I(fv) Depending on the convenience of DGP&T more than one import licence may be issued under this credit but the total value must not exceed y fi.600 million fCIF) as speci- fied at (i) above.

I(v) The extension of the validity of the import licence .may on application by DGP&T, be granted upto 31-12-86

Request for further extension, if any. should be referred to the Department of Fconomic \ffairs (7apat> Section).

1(\i) imports to be financed under die CVdi't ir, us- tneted to the list of goods and services attached to the import licence duly attested a* ⁴he licensing authorities i(vii) No lemittanee of foreign exchange will be per- mitted against the import licence. Any payment towards Indian Agent's commission should be made in Indian rupees to the agents in India. Such payments, however, will form part of the licence value and will, theiefore, be charged to the licence.

I(viiij Firm older must be placed on FOB basis on the Overseas supplier located in the countries mentioned in Annexuie-I'and sent to the Department of Economic Affairs (Japan Section) within 4 months from the date of issue of the import licence. Fieight and insurance charges will be payable in India in Indian rupees. -Firm orders" means purchase orders placed by the Indian licencee on the overseas supplier dulj signed by the latter or.purchase con- tract duly signed by both the Indian importer and the over- seas supplier. Ordei.s en Indian Agents of overseas suppliers and/or ordei confirmation of such Indian Agents are not acceptable.

l(ix) This condition ot the placement of contracts within 4 months period will be treated as not having been com- plied with unless complete contract documents reach the Ministry of Finance. Department of Economic Affairs (Japan Section) within tour months fiom the date of issue of the import licence. If firm ordeis as explained in paia I(viii) above cannot be placed within four months for \alid reasons, the licensee should submit the import licence to the concerned licensing authorities giving reasons'why ordering could not be completed within four months. Such requests for extension in the ordering period will be con- sidered on merit by the licensing authorities who may grant extension upto a further maximum period of 4 months. If, however, extension is sought beyond 8 months, from the date of-issu^ of the import licence such proposals will in- variably be referred by the licensing authorities to the Department of Economic Affairs (Japan Section), Ministry of Finance, North Block. New Delhi who will consider such extension on the merits of each case and communicate their decision to the licensing authorities for communication to the licensee. Only on production by the licensee of a letter from the licensing authorities sanctioning such exten- sion will be authorised cU-aljrs and departmental authorities permit the facility of letter¹ of authority for the establish- ment of letter of ciedit, acceptance of deposits of the rupee equivalent, etc. in respect of supply contracts entered into under the import licence.

I(x) All payments must be completed within 4 months fiom the expiry of the import licence. Individual payments must be arranged upon .shipment of goods. The contract should provide for payment on cash basis i.e. on presen- tation" of shipping documents. No credit facility of any kind will be permitted to be availed of by the Indian importer from the oveiseas supplier. The contract should provide for the period of ddiveiy of goods as follows:

" months after the receipt of Letter of credit but to be completed latest by !he end of

'".

In fixing the terminal date far shipment it should be noted

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

Section II—Special points *.o b>. kep< in view while negotiat-

ing a supply contract.

> WO The FOB value of the contract should be expressed in Yen (Fraction of Yen should be omitted) and should exclude Indian Agent's commission, if any, which should be paid in Indian rupees.

In no circumstances the contract value should be expressed in Indian rupees or in any other currency. The purchase order and the supplier's order confirmation should be in English only.

Il(ii) fhe broad guidelines for procurement of. goods and services node'- the OECF Yen Credit fProject Aid) aje, given in Annexure-IT. However prior approval of' the I und shut) be obtained, if it is proposed to adopt procure- ment procedures other than 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 pjocurement m:thod(s) signed by duly auihoiKc.l person together with its reasoning.

Immediately alter conclusion of I oan Agreement the copies of all notices and instruction* to bidders, the bid torrn, the proposed contiact, . specifications snd, drawings and all other documents relevant to the bidding shall be submitted to the Fund for its review. The abo\e documents /application may be forwarded, in duplicate, to the DEA (Japan Section) for transmission to/obtaining approval of OFCI.

li(iri) The payment* to the overseas suppliei should be arranged through an uicvocablc letter of credit to be opened by the Bank of India, Tokyo ii their favour under the OhCl Yen Credit (Project Aid) No. ID-P. 19 for 1979-80 the details of which are given in Section VI below.

ll(iv) Only one contract should be enteicJ into against the import licence. In exceptional .cases, more than-one'con- tract may be permitted to be entered into, for which riior approval of the Department of Economic Affairs (Japan Section), Ministry of Finance, should be obtained soon after the dale of issue of the import licence.

H(v) Eligibility of Supplier.—Supplieis shall be nationals of the eligible source countries or juridical persons incor- porated and -registered in the eligible, source countries and controlled by nationals of the eligible souice countries.

\II(vi) Declaration in Contract.—The following statements of eligibility by the supplier shall be added to each contract.

"I, the undersigned, hereby certify tha' the goods to be supplied are produced in - '-- ——(eligible source country).

1, the undersigned, further certify ilia: to the best-of my information and belief, the portion imported from the non- eligible source countries is less than thirty per tent (30.%) in accordance with the following formula : In-iorted C[F Price-f Import Duty

• • .•..:.- _ x ioo

Supplier's FOB Price

and

"I, the undersigned, hereby certify that-¹ '> • (name of company) has been incorporated and -registered (name of eligible source m country), and is controlled by nationals of ihe eligible source countries"'. • '"

H(vii) Permissible imnoits from non-eliaible source count- ries.—Financingof goods which contain materials originating from a non-eligible source country or countries may be made, provided-that the imported portion is less than thirty per ?*"' (30%) on an item-by-item b.>sis in accordance with the following formula :

Imported CIF Price+Impor,t Duty

x IOO

Supplier's FOB Price

Section HI*—Conditions to be Incorporated in the supply con-

tracts ! - -

III(i) The following provisions should be specifically'em-

bodied in the supply contract :

(a) The contract is at ranged in accordance with the Loan Agreement between the Government of India Shd Overseas Economic Cooperation Fund of Japan (OECF) dated the 14th M."V, 82 concerning the Yen. Credit No. ID-P. 19 (Project Aid) for Tele- cumumcations Project (V) and will be subject to the approval of Government of India and the Over- seas Economic Cooperation Fund.

(b) Payments to the. sjpplier shall be made through an irrevocable Letter of Credit to be issued by the Bank of India,, Tokyo under the Loan Asreemem No. ID-P. 19 dated 14th May. 82 between the Government of India and, the Overseas' Economic Cooperation Fund of tapan (OFCF>.

(c) The Overseas suppliers agree to furnish such in- formation and documents as may be requiied under Yen Credir arrangements bv the Government of India on the one h.md and the OtCl- on the other (d) Certificates (triplicate) iu the iorms indicated in

ll(vi).

IJI(n) Jn case the supplier is locited in.Japan, the supply contiact should contain a clause that the Japanese supplier agrees to make shipping anangemenfs in consultation with the Embassy of India, lokyo and that for this putpose he would keep the Embass) of India. Tokjo informed of the de- livery schedule of the goods involve.! and notify the Embassy ot India at least six vve^t, in ad\ance of the shipping re- quired so that suitable arrangements could* be made, jn ex- ceptional cases, where the Indian impoiters require it, this period of notice may be ieduced. The Japanese supplier should also agree to send a cable advice to ihe importer after each shipment giving the necessity details and.a cepy theie

• of should be sent to the Embassy of In^ia, Tokyo,

Section IV—Contract Approval by OECF :

IV(t) Within the stipulated pcriol for placement of firm ordeis the licensee should forward 4 copies of the contract duly signed by both DGP&T and overseas suppliers supported by order confirmation in wriiing by the overseas supplier or iheir photo copies complete in all lespects, together with two photo copies of -the relevant valid import licence, to Japan Section, Department of Economic Affairs. Ministry

' of Finance, North Block, New Delhi.

-IV(ii) The above procedure will also apply to all contract- amendments causing-essential modifications to the contents of

. contracts.or in its price.

- IVtin) The Ministiy of Finance (DEA) Japan Section will arrange to send one copy of the contract documents to. the OECF for their approval for financing under Yen Credit No. ID-P. 19(Pioject Aid) for Telecommunication Project (V).

Section V—Payment to Ihe overseas suppliers—Letter of

Credit Procedure : . . ,

V(i) On "receipt of the intimation of the contract approval from the OECF, by the Ministry of Finance, DepartniJnt of Economics Affairs, Japan Section, DGP&T and the CAAA will be informed of the same. Whertafter the DGP&T should approach the Controller of Aid Accounts & Audit, (herein- after leferred to as' CAA&A) Department of Economic Affairs, Ministry of Finance, UCO Bank Building, Parliament Street, New Delhi with a ieque"t in the form, attached as .Annevure-HI for issue" of a letter of authoiisation.

The CAA&A will is-Aie a lelt^r of authorisation as in the form attached as Annexure-IV* addiessed to the Tokyo Branch of the Bank of India for opening an irrevocable Letter of Credit as in the form attached as Annexure,V (for physi- cal imports) or Annexure-VI (for services) in favour of the overseas supplier concerned. Copies of the Letter of Autho- iisation will be endorsed to the OECF, the Embassy of India, Tokyo, the importer's Bank in India, and Japan Sec- tion, Departmem of Eeonomc Affairs. Ministry of Finance.

V(ii) On icceipt of the letter of authority, the Bank of India, Tokyo, w.ill establish an ii revocable letter of credit as per Annexure-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 OECF, Embassy of India, Tokyo, ihe importer's Bank in India and the CAA&A.

The above procedure of opening of letters of credit on the basis of the letters of autho-ity from CAA&A would ipso facto apply to all such amendments to letter of authorisation/ letter of credit as may become necessary due tn contract amendment or other-wise.

V(iii) The overseas stinpihr shall, -fter, cfTectina shipment of the goods, present ihroneh his bankers the 'documents specified in tjie letter of credit- to the Bank of India. Tokyo If the documents are found to be in order, the Bank of India' Tokyo will release the amount specified in the documents to -the overseas supplier through his bankers and will thereafter

obtain reimbursement of the ..aid amount from the OFCF.

• Vfiv) All charges on account of opening; maintenance and on the operation of the letter ot credit will h* *ith*r t~ th.

 Equatorial  Guinea  (t)                                                 French,  Guiana
 Ethiopia                                                                Guyana
 Gambia                                                                  Paraguay
  Ghana                                                                  Pern
  Guinea                                                                 Suiinam
  Ivoiy  Coast                                                           Uruguay
  Kenya                                                               V.  ASIA,  Middle  Fast
  Lesotho                                                                Bahrain
  Liberia                                                                Israel
  Malagasy  Republic                                                     Jorden
  MaLiiii                                                                Lebanon
  Mdli                                                                   Oman
  Muuritanin,  Mauritiu1? Syrian  Arab  Republic
  Moozambique                                                            United  Arab  Emir  tes  (6)
  Niger                                                                  Yemen  Arab  Republic
  •Portuguese  Guiflen                                                   Yemen,  People's  DR.  (7.)
  Reunion
  Rhodesia                                                             VI.  ASIA,  South
  Rwanda                                                                 Afghanistan
  St.  Helena  and  dep.  (2)                                            Bangladesh
  Sao  Tnmo  and  Princjpe                                               Bhutan
  Senegal                                                                Burma
  Seychelles                                                             Tndia
  Sierra  Leone                                                          M'aldivis
  Somalia                                                                Nepal
  Sudan                                                                  Pakistan
  Swaziland                                                               Sri  Lanka
  Terro.  Afars  and  Issas
  Togo                                                                 Vlr.  ASIA,  Far  East
   Uganda                                                                 Brunei
   Un.  Rep.  of  Tanzania                                                Hong  Kong
                                                                          Khmer  Republic
   Upper  Volta
                                                                          Korea,  Republic  of
   Zaire  Republic
                                                                          Laos
   Zambia
                                                                          Macao
                                                                          Malaysia
III.  AMERICA.  North  and  Cont                                          Philippines
   Bahamas                                                                Singapore
   Barbados                                                               Taiwan
  Belize                                                                  Thailand
   Bermuda                                                                Tinor
   Costa  Rica                                                            Vict-Nam,  PeubHc  of
   Cuba                                                                   Viet-Nam,  Democratic  Republic,
   Dominican  Republic
   El  Salvador                                                      .  VIIT.  OCEANIA
   Guadeloupe                                                             Coek  Islands
   Guatemala                                                              Fiji
   Haiti                                                                  Gilbert  &  Ellice  Is,
   Honduras                                                               French  Polynesia  (8)
   Jamaica                                                                Nauru
   Martinique                                                             New  Calendonia
   Mexico                                                                 New  Hebrices  (Br.  and  Fr.)
   Netherlands  AnTilles                                                  Niue
   Nicad"gua                                                              Pacific  Islands  (US)  (9)
   Panama                                                                 Papua  New  Guinea
   St.  Pierre  &  Miquclon                                               Solomon  Islands  (Br.)
   Trinidad  and  Tobago                                                  Tonga
                                                                          Walfis  and  Futuna
   West  Indies  (B'r.)  n.i.e,                                           Western  Samoa
      (a)  Associated  Stales  (4)
                                                                        IX.  Europe
      (b)  Dependencies  (5)                                              Cyprus
                                                                          Gibraltar
 IV.  AMERICA,  South                                                     Greece
                                                                          Malta
    Argentina
                                                                          Spain
    Bolivia
                                                                          Turkey
    Brazil
                                                                          Yugoslavia
    Chile
    Colombia
    Falkland  Islands
                                                                        (6)  Ajman,  Dubai,  Fujairah,  Ras  al  Kbalmnh,  Sharjflh  and
                                                                             Umai  al  Quaiwain.
 (1)  Formerly  the  territory  of  Spanish  Guinea,  including  the
                                                                        (7)  Including  Aden  and  varioqs  sultanates  and  emirates.
      island  of  Fernando  Po.
                                                                        (8)  Comprising  (ho  Society  Islands  (including  Tahiti),  The
  (2)  Including  the  following islands;  Ascension,  Tristan  da           Austral  Islands,  the  Tuamotu-Gamblcr  Gioup  ami  (he
                                                                             Marquesas  Islandi.
       Inaccessibles,  Nightingale,  Gough.
                                                                        (9)  Trust  Territory  of  the  Pacific  Islands  :  Caroline  Islands.
  (3)  Main  islands,  Aruba,  Bonaire,  Curacao,  Saha,  St.  Eus'a-        Marshal)  Islands,  and  Marine  Islands  (except  Guam).
       ci'f  St.  Marl in  (Southern  parlt).
  (4)  Msin  islands,  Antigue,  Dominica,   Grenada,   St.  Kttte         fa)  Mcrrber  or  Association  Countries  of  OPEC
       (St.  Carlstophe),  Nevis-Anguilla,  St.  Lucia  and  St.  Vin-
       cent.                                                               Algeria
                                                                           Bolivia
  (5)  Main  islands  :  Montserrat,  Cayman,  lurks  and  Calcos,         Libyan  Arab  Republic
       and  British  Virgin  Islands.                                      Gabon

Nigeria Ecuador Venezuela Iran Iraq Kuwait Qatar .Saudi Arabia Abu Dhabi Indonesia

ANNEXURE II

MAIN GUIDELINES FOR PROCUREMENT OF GOODS AND SERVICES UNDER THE PROJECT LOAN AS FORMULATED BY Q.E.C.F.

I. Advertising

F'or all contracts subject to Forma) Open Tntei national Tendering, invitations to bid shall be advertised in at least one newspaper of general circulation in India.

II. Bidding Documents and Contracts

II-l Bid Bonds or Guarantees

Bid bonds or bidding guarantees arc a usual requirement but they should not be set so high as to discourage suitable bidders. Bid bonds or guarantees should be released to unsuccessful bidders as soon as possible after bids- have been opened.

II-2. Conditions of Contract

The conditions of contract should clearly define the rights and obligations of the importer and (he contractor or supplier, and the powers and authority of the engineer, if one is employed by the importer, in the administration of the con- tract and any variations thereunder. Tn addition to the customary general conditions of contract, some of which are referred to in these Guidelines, special conditions appropriate 1o the nature and location of the project should be included.

II-3. Type and Size of Contract

Contracts can be Jet on the basis of unit prices for woik performed or items supplied or of a lump sum price, or a combination of both for differenet portions of ihe contract, according to the nature of the goods or services to be provided and the bidding documents should, clearly state the type of contract selected.

Contracts based principally on the reimbursement of actual costs are not acceptable by the Fund except in exceptional encumstances.

Single contracts for engineeiing, equipment and construc- tion to be provided by the same party ("Turnkey Contracts") are acceptable if they offer technical and economic advan- tages for the borrower country.

TI-4. Eligible suppliers

Exporters or suppliers whose goods and services are to be financed out of the proceeds of the Loan (hereinafter referred to as "the eligible supplier") shall be nationals of the eligible source countries satisfying the following condi- tions.

(1) a majority of subscribed shares shall be held

by nationals of the eligible source countries,

(2) a majority of full-time directors shall be nationals

of the eligible source countries, and

(3) such juridical 'persons' shall be registered in the

eligible source countries.

TTT-1 Contract Price

(a) The contract price should be stated in Japanese Yen provided, however, that the portion of the contract price which the contractor will spend in the borro- wers country should be stated in the borrower's currency.

(b) Price Adjustment Clauses

987 GI/82—3

Bidding documents should contain a clear statement whether firm prices are required or escalation of the bid prices is acceptable.

A provision should be made for adjustment in the con- tract prices in the event changes .occur in the prices of the major cosl constituents of the contract such as labour and important materials.

The specific formula for price adjustments should be

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 ceiling 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.

(c) Insurance

The bidding documents should state pieoisely the types of insurance to be provided by the successful bidder.

II1-2. The contract duly signed by both parties or pur- chase order bv the Indian importer placed on the overseas supplier supported by order confirmation in writing by the overseas supplier, or their photo copies are also acceptable to the Fund.

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

shall be added to each contract.

"T (We) hereby state that my (our) company is an eligi- ble supplier, as percent ( %) of the shares are held by nationals of (eligible source country) and • • percent . ( ) of the directions are nationals (eligible source countrv) and my (our) company has been registered i n— —— (eligible source country)".

IV-1. Standards

If national standard to which equipment or materials must comply are cited,' the specifications should state that commo- dities meeting Japan Industrial Standard or other interna- tionally accepted standards which ensure an equal or higher quality than the standards mentioned, will also be accepted.

IV-2. Use of Biand Names

Specifications should be based on performance capability ;ind should only prescribed brand names, catalogue numbers, or products of specific manufacturer if specific spareparts are required or it hag been determined that a degree of standardization is necessary to maintain ceitain essential features. Tn the latter case the specifications should peimit, offers of alternative commodities which have similar charac- teristics and provide performance and quality at least equal to those specified.

1V-3. Guarantees, Performance Bonds and Rctantion

Money

Bidding documents for civil works should require some foim of surety to guarantee that the work will be continued until it is completed. Thin 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 the work, but should be sufficient to protect the borrower in case of default by the contractor. Its life should extend sufficiently beyond completion of the contract to cover a reasonable warranty period. Th" amount of the guarantee or bond required should be defined in the bidding documents.

In contracts for the supply of goods it is usually preferable to have a percentage of the total payment held as retention money to guarantee performance than to have a bank guaran- tee or bond. The percentage ef the total payment to be held as retention money and the conditions for its ultimate payment should be stipulated in the bidding documents. If, however, a bank guarantee or bond is preferred it should be for a nominal amount.

V. Liquidated Damage

Liquidated damage clauses should be included in bidding documents when delays in completion or delivery will result in extra cost, loss of revenues or loss of other benefits to the borrower. Provision may also be made for a bonus lo be paid to contractors for completion of civil works contracts 'At or ahead of times specified in the contract when such earlier completion would be of benefit to the borrower.

VI. Force Majeure

The conditions of the Contract included in the bidding documents should contain clauses, when approormte, stipulat- ing 'that a failure on (he part of the parties to perform their obligations under the Contract shall not be considered a default under the Contract if such failure m 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 Arbitration" which have been prepared by the Interna- tional Chamber of Commerce or on such other arrangements as may 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 he added to such documents and it is required to specify which is governing.

IX. Bid Opening, Fvaluation 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 contract, Generally 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.

LX-2. Bid Opening Procedures.—The date, hour and place for the latest leceipt 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 HIds received after this time should be returned unopened. The name of the bidder and the total amount of each bid and of any alter- native bids, if they have been requested or permitted, should be read aloud and recorded.

IX-3. Clarifications or Alternation of Bids.—No bidder should 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 importer may ask any bidder for a clarification of his bid but should not ask Hny bidder to change the substance or the price of his bid.

IX-4. Procedures to be confidential.—Except us may he

required by law, no information relating to (he examination clarification and evaluation of bids und 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.

E x a m i l! ?t i-o n of Bids-—Following the opening, it J

hD^S'f c should be ascertained whether material errors in computa- tion have been made in the bids, whether the bids are fully responsive to the bidding documents, whether t ie required sureties have been provided, whether documents hav^ been fnTrf Y STf⁸?lT:? W h e t h er Lhe bi?" a re otherwise generally ffciittaE' £ ™b£

IX-7. Evaluation and Comparison of Bids.—Bid evaluation must be consistent with the terms and conditions set forth in the bidding documents. In addition to the bid price, adjusted to correct arithmetical errors, other factors such as the time of completion of construction or the efficiency and compatibi- lity of the equipment, the availability of service and spare parts, and the reliability ot construction methods proposed should be taken into consideration. To the extent practicable these factors should be expressed in monetary terms according to criteria specified in the bidding documents. The amount of escalation for price adjustments, if any, included in the bids should not be taken into consideration.

The currency or currencies in which the price offered In each bid would be paid by the borrower if that bid were ac- cepted should be valued in term* of a single currency selected by the borrower for comparison of all bids and stated in the bidding documents. The rates of exchange to be used in such valuation should be the selling rates published by an offi- cial source, and applicable lo similar transactions on the day bids arc opened unless there ihould be a change in the value of currencies before (he 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, all bids should not be rejected and new bids invited on the same speci- fications solely for the purpose of obtaining lower prices in the new bids, except in cases where the lowest evaluated bid exceeds the costs .estimates by a substantial amount. Rejec- tion of all bids may also be justified when (a) bids are not responsive to the intent of the bidding documents, or (b), there is a lack of competition. If all bids are rejected, the borrower should review the cause or causes justifying the rejection and either consider revision of the specifications or modification in the project (or amounts of work on items called for in the original invitation to bids), or both, In special circumstances after consultation with the Fund, the borrower may negotiate with one or two of the lowest bidders to try to obtain a satisfactory contract.

IX-9 Award of Contract.—The Award of a contract should he made to the bidder whose bid has been determined to be the lowest evaluated bid and who meets the appropriate standards of capability and financial resources. Such bidder snould not be required, as a condition of award, to undertake responsibilities on commodities not stipulated in the specifi- cations or to modify his bid.

ANNEXURE in

REQUEST ^OR ISSUE OK THE LETTER OF AUTHORITY

LWTE

NO

To

The Controller of Aid Accounts and Adult,

Ministry of Finance,

Department of Economic Affairs,

UCO Bank Building, 1st Floor,

Parliament Street,

New Delhi-110001.

Sub.-Import of frOm , OTder

Yen Credit No. (Project Aid)-

Sir,

In connection with the import of from

under the above mentioned Yen Credit No. - _ f f "T O l e ctas z ^Jis^x^I^il

Bank) which should be the "ame as given in fnfbdow for

anSffl™?"i^V"^{0 11} °f B*dder⁸—^ the absence of r>re- fir wfc ' v5 l°nTr *h°m *twmiM whether the bidder whose bid has been evaluated the lowest has the

(a) Name and Address of the Indian importer.

(b) Number, date and value of the import licence and

date upto which it is valid.

(c) Method of procurement—whether it is based on direct purchase or Formal Open International tendering in which case ii should' be indicated whether the contract has been awarded on the basis of techni- cally suitable offer with reasons, if any.

(d) Brief description of the goods.

(e) Origin of the goods.

If) Percentage of the import component! from non-elifiible

source countries, it any.

(g) Ciioss FOB value of contract (in Ytu)

(h) Amount of Indian agents commission lin Yen, if

any.

(i; Net l-OB value (In Yen) for which the Letter of

Authority is required.

(j) Number and date of the contract with over§r;is sup-

pliers.

(k) Name and address of the Overseas Supplier

(i) Nationality.

(ii) Percentage of the shares held by Nationals of the

eligible source countries.

(iii) Nationality of thp representative and|or President

of the Supplier.

gible source countries.

CO Payment terms and probable dates on which payments

under the contract will fall due.

(m) Expected date of completion of deliveries.

(n) Documents to be presented at the time of payment to Bank of India, Tokyo (indicating No. of sets of each and theii¹ disposal). *

(o) Shipment instructions (indicate if trans-shipment

part-shipment permitted or not permitted.

(p) Name and address of the importer's bank in India.

(q) Whether a contiact(s) under the same licence has been placed and notified to the Japanese authorities, and if so. the No, date and value of each such con- tract and the reference of the Ministry of Finance under which it has been notified to the OECF.

ANNEXURE IV

(Letter of Authority Form)

No, F.

Government of India

Ministry of Finance

Department of Economic Affairs

New Delhi, the

To

The Bank of [udia, Tokyo Branch, Tokyo (Japan)

Subject.—Import under Yen Credit Project Aid—Loan

jm ue Of Lettei of Authority Agreement No. for opening Letter of Credit.

Dear Sirs,

In accordance with the terms and conditions of the agree- ment dated 25-3-1980 entered into with your Bank you are hereby authorized to open irrevocable Letter of' Credit for an amount not exceeding Y e n- favouring Ml"

-an per attached details.

A copy each of the letter of credit opened by your Bank may be endorsed to the importer's Bank; to the OECF, Embassy of India, Tokyo and to us.

Payments to the suppliers in terms of the letter of credit will be made initially out of your own funds. After payments, you must claim immediately reimbursements of the amounts paid by furnishing necessary documents to the OECF.

For the time lag between the dates of payment by you to the supplier and the date of its reimbursement to you by the OECF, you will be paid interest as per terms of ihe above agreement by the Embassy of India, Tokyo. The other banking charges including those on account of open- ing, maintenance and for the operation of the Letter of Credit as aUo those connected with handling negotiating documents and charges of overseas suppliers bankers, if any. are to be borne by the Overseas Suppliers and hence not payable by the importer and may, therefore, be reco- \ered from the Suppliers directly. As such no reimbursement of such charges is to be claimed from the OECF.

As and when any payment is made by you and reimburse- ment is made to you, an advice in the prescribed form should be sent to this Ministry.

This Letter of Authority is intended for opening of J,|C favouring the overseas suppliers. Subsequent amendments to L|C or further fresh L[Cs against this authorisation may not be acted upon in the absence of a specific authortiy from this Ministry.

This Letter of Authority will remain valid upto

Pours faithfully,

(Accounts Officer)

Copy forwaided to

1. ImporLer — — w i th reference to their letter No.

—— -dated-

2 ImporlorsT Bankei— . They are icquested to arrange to deposit the rupee equivalent of the Yen payment to the overseas aupliers on receipt of documents from the Bank of India, Tokyo Branch. The rupee equivalent of amount disbursed to the suppliers will have to be calculated by applying the composite rate of conversion as prevailing on' the date of payment to overseas, suppliers in accordance with the Public Notice No. 8-ITC(PN)|76 dated 17-1-1976 or such other Public Notices as may be issutd from time to time. It should be ensured that these deposits are made before the original set of import documents are handed over to the importer for Customs clearance.

These amounts should be deposited either with the RBI, New Delhi or the SB1,, Tis Hazari, Delhi. In this connection their attention is also invited to the provisioas of the Public Notices No. 184-ITC(PN)|68 dated 30-8-68, 233-ITC(PN)|68 dated 24-10-1968, 132-[TC(PN)|71 dated 5-10-1971, No. 74- ITO(PN)|74 dated 31-5-1974 and No. 103-ITC(PN)|76 dated 12-10-1976. The head of Account to be credited is "K-Depo- sits and Advances—843—Civil Deposits—Deposit for pur- chases etc, abroad under Purchases under Credit|Loan Agreements"—Loans from the Government of Japan 2.6K Billion Yen Credit (Project Aid) No. ID-P 17 for 1979-80.

One copy of the challan in original, in cases where the rupee equivalents are credited in cash at the RBI New Delhi or the SBI., Tis Hazari, Delhi as prescribed to Public Notice No. 132-TTC(PN)[71 dated 5-10-1971 should be sent by them to the address given below alongwith a forwarding letter giving full details of the advice notes received from the Bank of India, Tokyo Branch

The Controller of Aid Accounts and Audit, Ministry of Finance (Department of Economic Affairs), 1st Floor UCO Bank Building, Parliament Street, New Delhi-IlOOOl'.

In cases where the rupee equivalents are remitted by means

%A ?n"?^o drafU, ** I a id d o wn in t n" P l*b l Jc Notice dated 24-10-1968 mentioned above, intimations thereof should be ^n tti.tO a d d r ew R'v"n above. 7n all cases full particulars this D e T "* e q m v a l e n ts d"P°sit"d should be furnished to t

The Banking charges, interest and other charges of the Bank of Ind.a, Tokyo Branch (including charge* of the over- sea,, supphen, bankers), if any, should be wttled by paying

tbeir rupee equivalents to tht Principal Accounts Officer in the Ministry of External Affairs, New Delhi. For this pur- pose appropriate advices will be sent by this Department on receipt of relevant information from the Bank of India, Tokyo Embassy of Indian in Japan.

3. The Director, Loan Department-ll, Overseas Economic Cooperation Fund, Takebashi Godo Building, 4-1, Ohtema- chi 1-Chorne, Chiyoda-Ku, Tokyo 100, Japan.

4. Embassy of India, Tokyo.

5. The Under Secretary, Japan Section, Ministry or Fin-

ance, Department of Economic Affairs, New Delhi.

Accounts Officer.

ANNEXURE V

(Form OECF-LC I)

Irrevocable Letter of Credit

(Applicable for goods)

Date :

To This Letter uf Credit has been

issued pursuant to Loan Agree- -— •-—~ •— ~- incut No. • —, .—

dated

•— between (Borrower) and THE

(Name and address of the OVLRSFAS ECONOMIC CO-

Supplicr) OPERATION FUND,

Dear Sirs,

We advise you that we have opened our irrevocable credit No.——-—•—• in your favour for accout of — for a sum or sums not exceeding an aggregate amount of •Y — —-(Say y e n— ——-— —-——._)

available by your drafts at sight for full invoice value drawn

on us, to be accompanied by the following documents :

Signed commercial invoice ih Full set of clear on board <_eean bills of lading made out to order and blank endorsed and marked "Freight and Notify Other documents

to

evidencing shipmeht of [brief description of goods lo be shipped referring to Contract No (if any)] from Partial shipments are permitted. Tranship- ment is permitted. Bills of lading must be dated not later than Drafts must be presented for negotiation not later than

All drafts and documents under this credit must be market irrevocable credit

, dated

"Drawn under No. and Import Reference No. (s). (if any)".

This credit is not transferable.

We hereby undertake that all drafts drawn under and in compliance with the terms of the credit shall be duly honoured on due presentation and delivery of documents to th'e drawee.

Unless otherwise expressly stated, this credit is subject to "Uniform Customs and Practice for Documentary Credits (1974 Revision), International Chamber of Commerce Brochure No. 290,"

Special Instructions to the negotiating bank :

1. After obtaining the reimbursement for our payments from THE OVERSEAS ECONOMIC CO-OPERATION FUND in accordance with the .provisions of the I-ettc mitment issued thereby under the above-mentioned Loan Agreement, we undertake to remit the amount of the draft in accordance with instructions issued by the negotiating bank.

2. The negotiating bank must forward the drafts and o ne

complete set of documents to us together with the certificate

stating that the remaining documents have been airmailed

direct to

3. All banking charges under this credit are for the account of

the importers/suppliers.

Yours faithfully,

(a commercial bank)

By :

(Authorised Signature)

PAYMENT TERMS

This payment terms constitutes an integral part of our

Letter of Credit No

I. Initial Payment

Amount Y — ~— — ——— r—— "0 of the total being ~ ——

contract price,

Required documents : Latest presentation date :

II. Intermediate Payment (if any)

- Amount Y — - —• being— — % of the total

contract price,

Required documents : Latest presentation date :

III. Payment against Shipping Documents

Amount Y— —•• • - — - —— • -• . being —• • % of the total contract price.

NOTE : This attached sheet is not required in case of full pay-

ment against shipping documents.

ANNEXURE VI

(Form OECF-LC II)

Irrevocable Letter of Credit

(Applicable for Services)

Date :

To

—— — This Letter of Credit has been issued pursuant to Loan Agree- ment No. — — —-

. dated : - — ——

(Name and address of the between (Borrower) and THE

Supplier) OVEREAS ECONOMIC CO-

OPERATION FUND.

Dear Sirs,

No

We advise you that we have opened our irrevocable credit in your favour for account of

for a sum or sums not exceeding an aggregate amount of

Y

:(Say Yen available

by beneficiary's drafts at sight lor full Statement value drawn

on us.

To be accompanied by the required documents, in accor- dance with the Payment Schedule attached hereto, concerning (Contract No. with regard to Project). Drafts must be presented for negotiation not later than all drafts and documents must be marked "Drawn under irrevocable credit No dated '•

This credit is not transferable.

We hereby undertake that all drafts drawn under and in

compliance with the terms of the credit shall be duly honoured

on due presentation and delivery of documents to the drawee.

Unless otherwise expressly stated, this credit is subject to

"Uniform Customs and Practice for Documentary Credits

(1974 Revision), International Chamber of Commerce Brochure

No.290."

Special Instructions to the negotiating bank :

1. After receipt of the original Statement of Performance issued by (Borrower or its designated authority) in accor- dance with the form attached hereto, payment (s) under this credit must be made in accordance with the Payment Schedule stipulated in the sheet attached hereto. In case of the initial payments, the beneficiary's Statement is required instead of the above-mentioned Statement of Performance.

2. After obtaining the reimbursement for our payment from THE OVERSEAS ECONOMIC COOPERATION FUND in accordance with the provisions of the Letter of Commit- ment issued thereby under the abovementioned Loan Agree- ment, we undertake to remit the amount of the drafts in accordance with the instructions issued by the negotiating bank.

3 A copy of the document as mentioned in item 1 above and

the drafts shall be sent to us immediately after the receipt

thereof.

4 All banking charges under this credit are for the account

of the importer/supplies.

Yours faithfully,

(a commercial bank)

By : ——•——— - • — - —— (Authorized Signature)

PAYMENT SCHEDULE

This payment schedule constitutes an integral part of our

Letter of Credit No

I. Initial Payment

Amount : Y — — - —— • —

II. Progress Payment

Aggregate amount :Y •—• • ••

being- % of the total contract price to be paid as follows :

Amount due Latest presentation

date

1st Instalment : Y • ——•——

2nd Instalment ; Y-

*

Required document • a copy of Statement of Performance issued

by (Borrower or its designated authority),

a form of which is attached hereto.

Statement of Performance

Date :

Rcf . No.

To

(Name and address of the supplier)

Re : Letter of Credit No

, dated , issued by~— — — -— • • •— for Y — -— -in favour of

•-—-—• concerning •— Project

under Loan Agreement No

I, the undersigned, representing (Borrower), hereby issue a Statement of Performance to entitle— •———to receive the sum of Y —— —-(Yen-— -only) from THE OVERSEAS ECONOMIC CO-OPERATION FUND in accordance with the Payment Terms stipulated in , the Contract No

dated-— — ———* between •— and

(Borrower)

By :

(Authorised Signature)

Special Instructions :

The details of the actual performance shall be stated In the

sheet atteched hereto.

(MANI NARAYANSWAMI),

Chief Controller of Import* & Exports

being %of the total contract price

Required documents : beneficiary's Statement

TAKHAT RAM,

Jt. Chief Controller Imports & Exports.

Latest presentation date :

9R7 G I / 8 2 -4

PRTMTBTJ 1Y TTHB MANAOW. OOVT. OP DDU N l " 9, UNO MAP, MBW HUO*1100t4

AND PUBLISHED BY TH1 CONTKOLLn OF PUBLICATIONS. DELHI-110054. 1982