18th june, 2007 - eepc india6 engineering export info-bulletin, vol. 9, issue no. 25 overseas...

H i g h l i g h t s

C o n t e n t s

ISSN 0971-9776

WEEKLY NEWSLETTER VOL. 9 ISSUE NO. 25 JUNE 18, 2007

For information about India Engineering Center, Chicagovisit : www.indiaengineeringchicago.com

For information about Engineering Export Promotion Councilvisit : www.eepcindia.org

For information about EEPC Exhibitionsvisit : www.eepcindee.com

P3INDEE -Johannesburg,

2007

EEPC is organising an IndianEngineering Exhibition (INDEE)in Johannesburg, South Africafrom 23rd to 26th October,2007. Members are requestedto register their participationwithin 30th June, 2007.

Shri S. C. Ralhan, Regional Chairman, EEPC (N.R.), welcoming the ChiefGuest, Hon’ble Sardar Parkash Singh Badal, Chief Minister of Punjab on

the occasion of Award for Export Excellence, EEPC, Northern Regionat Chandigarh on 7th June, 2007.

P8India Pavilion atMIDEST-2007,

Paris, France

EEPC is inviting participationfor India Pavilion at MIDEST-2007, Paris, France to be heldon November 13 - 16, 2007.Members are requested to enlisttheir participation within 29thJune, 2007.

From Chairman’s Pen 2

OVERSEAS SECTION

• Overseas Market Information

– Council’s Activities

- INDEE - Johannesburg, 2007, South Africa 3

- India Pavilion at MIDEST-2007, France 8

– Information on China and Croatia 11

– Report on Automobile Industry in Malaysia 13

•Global Business Opportunities

– Tender Information 16

– Trade Enquiries 25

DOMESTIC SECTION

•Public Notice 27

•Export Finance 31

P27Govt.

Notifications/Circulars

Notification No. 8(RE-2007)/2004-2009 dated 11.06.07 –Deletion of Policy condition to847330 (Import of reconditionedcomponents of computers isfree).Notification No. 55/2007-Customs (N.T.) dtd. 31.05.07 –CBEC revises tariff value ofBrass Scrap (all grades).Notification No. 76/2007-Customs dated 06.06.07 –Foreign Trade Policy changesnotified.

2 Engineering Export Info-Bulletin, Vol. 9, Issue No. 25

My dear fellow exporters,

During the last week the Council made a number of presentations to the Commerce & IndustryMinister on the persistence of the Rupee appreciation and the impact that is having on Indianengineering exports. The Council has suggested a series of measures to compensate the exportersthe losses suffered by them on account of the sharp escalation in the Rupee value against theUS Dollar despite the Rupee being overvalued by 12%. We have suggested that DEPB rates beenhanced by reducing the value addition norms from 50% to 25%; an across the board hike inDuty Drawback rates; ensuring that the export credit target of 15% of the total credit disbursed bemet in a manner that 50% of same be towards meeting the export credit needs of the small andmedium scale exporters; and perhaps using an innovative Exchange Rate Stabilization Schemeto compensate the negative effects of an appreciating Rupee. The Council has also suggestedthat the Service Tax exemption notification promised by the Government on April 19, 2007 beissued at the earliest while efforts should also be made to formulate a State Level Drawback Scheme.

The Council has also made wide ranging recommendations to the Government over the problemsfaced by engineering exporters with VAT refunds in certain states in the country and have suggestedalternative system of VAT refund so that small and medium scale exporters are not at the mercy ofwhims and fancies of State Governments. We have also suggested that the Gujarat model ofgiving input credit in the VAT chain for CST paid on inter-state purchase of inputs for export purposesshould be adopted by all States in the country. This apart, issues pertaining to irritants, both policyand procedural, with regard to the Foreign Trade Policy, problems of denial of export credit bybanks to exporters even they have export orders as also the losses suffered by our members onaccount of inefficiency in the banking sector have been raised with the Government. So while theball is in the Government’s court, the Council will continue to press for a level playing field for ourconstituents.

I am also happy to inform you that the Council’s efforts has made some headway already and theRBI has formed an External Group for fixing a target of Export Credit for the SME sector under anOfficial of the EXIM Bank with representatives from RBI, Commerce & Industry Ministry, leadingbanks in the country. The Council has also been invited to nominate a representative to thisCommittee, which we have already responded. I would request members to kindly giving theirsuggestions so that our nominee Shri K S Chadha can suitably take up your views before the RBI’sExternal Group.

Yours sincerely,

(RAKESH SHAH)

Engineering Export Promotion Council

Chairman’s Pen

Engineering Export Info-Bulletin, Vol. 9, Issue No. 25 3

Overseas Information

Council’s Activities

ENGINEERING EXPORT PROMOTION COUNCIL

Invites Participation in

INDEE - Johannesburg, 2007(Indian Engineering Exhibition)

October 23 - 26, 2007

In association withManufacturing Technology International Expo (MTI)

at

Expo Centre, Nasrec, Johannesburg, South Africa

Preamble

It has always been EEPC’s endeavour to foster exports of India’s state-of-the-art Engineering Industry into world market.

In line with above EEPC is pleased to announce one of its major events – INDEE, Johannesburg – to be held in South

Africa at Expo Centre, Nasrec, Johannesburg during 23-26 October, 2007. This is a major step forward to enter into the

South African market.

About South Africa

South Africa is the economic powerhouse of Africa with a Gross Domestic Product (GDP) four times that of its Southern

African neighbours and comprising around 25% of the entire continent's GDP. The country leads the continent in industrial

output (40% of the total output) and mineral production (45%) and generates most of Africa's electricity (over 50%). Its major

strengths include its physical and economic infrastructure, natural mineral and metal resources, a growing manufacturing

sector, strong growth potential in the tourism, high value-added manufacturing and service industries. The financial and

industrial sectors are concentrated in Gauteng Province which on its on accounts for over 30% of the country (GDP).

South African economy has been showing an upward trend since September-1999 and the annual economic growth rate

from September-1999 through June-2005 has averaged at 3.5%. Gross Domestic Product (GDP) was running at an

annualized 4.8% at the second half of 2005 (compared to 3.7% in 2004 and 2.8% in 2003).

India-South Africa Trade Relations

Since 1994 India South Africa relation has shown smooth development with signing of a number of bilateral agreementsin diverse areas ranging from Defence, Culture, Science and economic cooperation.

Total trade between the two countries has grown significantly since 2001 with surge in both export and import, but Indiahas remained a net Importer. But in the engineering sector, India’s export to South Africa has maintained a steady growth89.5% in 2005-06 and 94% in 2004-05 on year on year basis.



Potential growth areas for Indian exports to South Africa are – Vehicle and vehicle components, Transport equipments,

Castings, Forgings, Hand Tools, Agricultural equipments, Two wheelers etc. There are also good potential for exports in the

service industry like Software expertise, technical man-power training.

Indian investments in South Africa have grown significantly both in quantity as well as diversity. Major investors includes

UB Group of India, Tatas, Mahindras, Ranbaxy, Cipla, Godrej, Ashok Leyland etc.

Product Sector

INDEE - Johannesburg will be focusing mainly on following industry sectors :

- Castings

- Forgings

- Bright Bars

- Fasteners

- Machine Tools

- Cutting Tools

- Automobile & Components

- Primary Iron & Steel

- Bicycle & Parts

- Industrial Machinery

- Food Processing Machinery

- Textile & Jute Mill Machinery

- Pumps & Compressors

- Cranes

- Lifts & Winches

- Electric Home Appliances & Parts

- Electrical Power Equipments

- Heating & Cooling Equipments

- Utensils & Kitchenwares

- Tractors & Agricultural Equipments

- Primary Aluminium & Aluminium Products

- Ferro Alloys

- Construction Machinery

Date and Time of Exhibition

Date : October 23-26, 2007

Time :10.00 Hrs. – 17.00 Hrs.



Venue of the Exhibition

Expo Centre, Nasrec, Johannesburg

Display Booth

Only built up booth of minimum 9 sq. mtrs. will be available with following standard furniture :

1 Table, 2 Chairs, 1 Waste Paper Basket, 1 Ashtray, 3 Spot Lights, Fascia, one 10 Amp. Electrical Socket, Carpet.

Larger booth in multiple of 3 sq. mtrs. will be available for booking.

Participation Charge

One side open booth : Rs. 17,000/- per sq. mtrs.

Two side open booth : Rs. 18,700/- per sq. mtrs.

Due to limited availability of 2 side open booths, allocation will be done on first-come-first-served basis subject to receiving

full payment.

Payment & Cancellation

Full payment should be made along with Application Form, duly filled in latest by 30th June, 2007. The payment should

be made by way of Demand Draft drawn in favour of “Engineering Export Promotion Council” payable at New Delhi.

Reservation requests will be considered only on receiving 100% payment. 50% cancellation charge applicable if reservation

is cancelled before 31st July, 2007.

Shipment of Exhibits

In order to facilitate shipment of exhibits, Council will appoint a Shipping Agent.

Selection Criteria

Final selection of the participants will be done by a Committee based on the criteria such as Accreditation to the Inter-

national Standards (like ISO, QS, etc.) foreign collaboration, annual export, and exports to South Africa.

Travel and Hotel Accommodation

Council will assist participants in locating suitable air lines and hotels at Johannesburg at negotiated rates through

accredited Travel Agents. However, participants are free to stay and travel through their own agencies.

MDA Grant

All eligible participants will be entitled to MDA grant under Focus Africa Programme of Ministry of Commerce, Government

of India as per the MDA Guidelines effective from April 01, 2006.

Assistance would be permissible on travel expenses by Air in Economy Excursion Class fare and/or charges of built up

furnished stall subject to an upper ceiling of Rs. 1,50,000/- (Rupees One Lakh Fifty Thousand only).

Further, eligibility for MDA grant is subject to exporting companies having FOB value of exports up to Rs. 15 crores in the

preceding year, having complete 12 months membership with EEPC with regular filing of returns and fulfilling other

conditions, details of which can be obtained from respective Regional Offices of EEPC.



Submission of Application

Interested firms may please send their Application (as per enclosed format) duly filled in and signed, along with paymentlatest by 30th June, 2007 to any of the following :-

R. MaitraExecutive DirectorEngineering Export Promotion CouncilVandhna, 4th Floor11, Tolstoy MargNew Delhi – 110 001Tel. : 91-11-23711124/25Fax : 91-11-23310920E-mail : [email protected] : www.eepcindia.org

Rajat SrivastavaRegional DirectorEngineering Export Promotion CouncilCentre 1, 12th FloorWorld Trade CentreCuffe ParadeMumbai – 400 005Tel. : 91-22-22186655/56/60Fax : 91-22-22180119E-mail : [email protected], [email protected]

Bhaskar SarkarAddl. Executive Director & SecretaryEngineering Export Promotion CouncilVanijya Bhavan (1st Floor)International Trade Facilitation Centre1/1, Wood Street, Kolkata – 700 016Tel. : 91-33-22890651/52Fax : 91-33-22890654E-mail : [email protected] : www.eepcindia.org

S. DoleRegional DirectorEngineering Export Promotion Council19, Kasturba Gandhi Marg

Surya Kiran (4th Floor)

New Delhi – 110 001

Tel. : 91-11-23314171/74

Fax : 91-11-23317795

E-mail : [email protected]

Ms. Anima PandeyRegional DirectorEngineering Export Promotion CouncilVanijya Bhavan (2nd Floor)

International Trade Facilitation Centre

1/1, Wood Street

Kolkata – 700 016

Tel. : 91-33-22890673/74

Fax : 91-33-22890687


M. GanesanRegional DirectorEngineering Export Promotion CouncilGreams Dugar (3rd Floor)

149, Greams Road

Chennai – 600 006

Tel. : 91-44-28295501/02

Fax : 91-44-28290495




Application FormINDEE - Johannesburg, 2007

(23 - 26 October, 2007)

Name of the Company :

Postal Address :

Phone (with area code) :

Fax (with area code) :

E-mail :

Website :

Name & Designation of the Chief Executive :

Name & Designation of the Participant :

Status : ! Manufacturer/Exporter ! Merchant Exporter ! Export House

Booth Requirement : ! One side open ! Two side open

Area (Minimum Booth area : 9 sq. mtrs.) : Total area required :

Total Annual Export (in Million US$) : 2004-2005 2005-2006 2006-2007

Total Export to South Africa (in Million US$) : 2004-2005 2005-2006 2006-2007

Foreign Collaboration, if any :

Products Manufactured/Exported :

Countries of Export :

Accreditation to International Standards :(like ISO, QS, etc.)

Nature of Display : Display of Samples !Display of Posters !

Name to be displayed in the Fascia (in capital letters) :

1. Please use separate sheet to furnish details of your company (within 80 words) for the Exhibitors’ Profile.

2. Please send us this Form duly completed and signed along with your participation fees by Demand Draft and2 (two) copies of passport size colour photographs of the Participant.

Signature :Date : Office Seal :



EEPC Invites Participation for MIDEST-2007, Paris, France(November 13 - 16, 2007)

MIDEST is the world’s largest Industrial Subcontracting Show. It provides a service for manufacturers, component suppliers

and assemblers who want face-to-face meetings with solution providers in the fields of metals, plastics, electronics and

industry services. MIDEST-2007 is scheduled to be held from 13 to 16 November, 2007 at Paris, France.

MIDEST attracts an average of 2,000 exhibitors every year out of which 38% exhibitors are from countries other than

France. Last year the fair was visited by 47,915 visitors, 14% of which come from 61 outside countries.

The export of engineering goods from India to European countries has reached a level of US$ 4.40 billion in 2005-06

against a value of US$ 3.95 million during 2004-05 thereby registering a growth of 11.14%. The last three years trend

indicates an average growth of 36.78%. This shows that the Indian engineering goods are regularly finding a favourable

place in European market.

Engineering Export Promotion Council (EEPC) is inviting participation for India Pavilion at MIDEST-2007, Paris which

would provide an excellent opportunity for business relationships with customers from all over the world.

Focus Products

Main focus of the Council would be on the following items :

• Metal Processing

– Fabrication

– Screw cutting

– Industrial fasteners

– Foundry

– Forging

– Metal cutting

– Semi-finished products in metal processing

– Machining, special machines

– Finishing, thermal & surface treatments in metal processing

• Tooling/Moulds/Models/Equipment

– Tooling – Moulds – Models

– Accessories and industrial equipment

• Industry Services

– Engineering, design, research, quality, services

– Industrial maintenance

Venue

Paris-Nord Villepinte Exhibition Centre, France

Date

13 - 16, November, 2007 (4 days)



Participation Charges

Built-up booths minimum 9 sq. mtrs.

Rs. 19,000/- per sq. mtr. for one side open stall.

Corner stall charges will be extra.

Display Booth

Participation charge includes following services :

– Fascia

– Carpeting

– Structures/partition

– Decoration

– Accessories (credit voucher of Euro 15.50/m2 to choose from catalogue)

– Electricity – 3 Spotlights, 1 triple plug, showcase connection

– Furniture (credit voucher of Euro 32/m2 to choose from catalogue)

– Floral decoration

Mode of Payment

Full payment is to be made by Demand Draft/at par Cheque favouring “Engineering Export Promotion Council” payable at “Kolkata”

along with the filled-up Application Form.

Date of Payment

Full payment is to be made along with the Application Form latest by 29th June, 2007.

Cancellation of Participation

Request for cancellation of participation will be accepted if Council receives the same in writing on or before 16th July, 2007.Council shall not entertain any cancellation afterwards. Any cancellation after the due date shall result in forfeiture of the

amount already paid on this account.

Selection Criteria

Since limited space is available, selection of participation will be done strictly on first-come-first served basis.

Benefit of the member-exporters

EEPC is organizing this event under the MAI Scheme of Ministry of Commerce, Government of India. Therefore no MDA grantwould be available. The rates mentioned above are highly subsidized as per MAI Scheme of Government of India.

Interested firms may please send the Application Form, duly filled in and signed, along with full payment latest by29th June, 2007 to the respective Regional Offices or to :

Bhaskar SarkarAddl. Executive Director & SecretaryEngineering Export Promotion CouncilVanijya Bhawan, 1st FloorInternational Trade Facilitation Centre1/1 Wood Street, Kolkata 700016Tel. : (+91 33) 22890651/52Fax : (+91 33) 22890654E-mail : [email protected]



Application FormEEPC Invites Participation for MIDEST-2007 at Paris, France

(November 13 - 16, 2007)

Name of the Company :

Postal Address :

Phone (with area code) :

Fax (with area code) :

E-mail :

Website :

Total Space required :

Amount with DD/Cheque No. & date :

Name & Designation of the Chief Executive :

Name & Designation of the Participant :

Type of Units (please tick mark) : ! SSI ! Non-SSI

Status (please tick mark) : ! Manufacturer/Exporter ! Merchant Exporter ! Export House

Total Annual Export : 2004-2005 2005-2006 2006-2007(in Million US$)

Total Export to European countries : 2004-2005 2005-2006 2006-2007(in Million US$)

Foreign Collaboration, if any :

Products Manufactured/Exported :

Countries of Export :

Accreditation to International Standards :(like ISO, QS, etc.)

Please use separate sheet to furnish details of your company (within 80 words) for the Exhibitors’ Profile.

Please send us this Form duly completed and signed along with your participation fees by Demand Draft/Cheque and2 (two) copies of passport size colour photographs of the Participant.

Signature :

Date : Office Seal :



Overseas Market Information

China

Government Plans Export Tax Rebate Cuts

The Government is considering cutting export tax rebates in a bid to protect natural resources and help upgrade domestic

industries.

The reduction is aimed at controlling the export of products that consume a lot of resources and energy, and lead to high

levels of pollution.

The suggestion came from an official with the State Administration of Taxation, who was quoted by the Shanghai Morning

Post.

He declined to disclose details, but the average cut is estimated to be about 2 percentage points.

The industries covered are expected to include textiles, steel and light industrial products.

The State Administration of Taxation, the Finance Ministry, the National Development and Reform Commission and the

Ministry of Commerce are involved in on-going discussions over this issue.

After the adjustment, export tax rebate rates for other products, such as high-tech goods, are expected to increase.

Although details have not yet been clarified, some insiders say the process could start as early as this month.

Government agencies have considered reducing rebates for some time, said Li Yushi, a trade researcher with Chinese

Academy of International Trade and Economic Cooperation, a think-tank under the Ministry of Commerce.

"Lower tax rebates would spur domestic exporters to increase the value of their products and upgrading technologies to

remain competitive," he said.

He added that, theoretically, the cuts would also reduce the total volume of China's exports or slow down their growth rate.

The increasing growth in exports is considered the root of China's trade imbalances with major trade partners.

"Its impact will vary from industry to industry," Li said.

Some textile exporters have begun to complain that the possible cuts would further squeeze their profits.

Experts predict the move will hurt certain textile exporters, in particular those that focus on low value-added products.

"The average gross profit rate in the sector is a mere 3 to 4 per cent.

"The new move might force some factories to shut down, but it will also force most of them to improve," said an insider in

the textile industry who declined to give his name.

China has long granted rebates on value-added tax for some exports.

For copper, zinc and tin, exporters can claim 5 per cent of the export price as a rebate, down from 13 per cent two years ago.

Export tax rebates for other items, such as salt, silicon and molybdenum ore, have been scrapped.

(Source : China Daily, June 8, 2007)



Wen urges further cool-down measures

Premier Wen Jiabao said on Wednesday macro control measures should be further strengthened to prevent the fast-growingnational economy from overheating.

The monetary policies should be stable in general but "moderately tightened" to secure a stable and fast-growing economy,said Premier Wen at a meeting of the State Council.

Wen said the country will continue to implement its current prudent fiscal and monetary policies.

He called for fiscal policies to be more supportive of industrial restructuring.

He said industrial production is growing at a rate that is faster than desired and the trade surplus is too big.

China's trade surplus in May soared to US$22.45 billion, up 73 per cent from the same month last year.

Wen said the country would continue to adjust export rebates and tariffs on certain items while further improvingpolicies to boost imports in a bid to address the climbing trade surplus.

Sustained fast growth of investment, excessive liquidity in the capital market and rising inflation pressure also deserve moreattention, said Wen.

Wen said the Government would control the supply of land and bank loans to high energy-consuming projects.

He also said financial, fiscal and taxation measures should be employed to guide the flow of capital. He said there should bemore channels for capital outflow and for the use of foreign exchange.

Rising food prices have caused the consumer price index (CPI) to rise 3.4 per cent in May, higher than the Government'starget of three per cent.

Wen pledged to stabilize food prices by ensuring the food supply and enhanced supervision over food quality.

(Source : Xinhua, June 14, 2007)

Croatia

Bilateral Trade

Bilateral two-way trade between India and Croatia had quantum jumped by expanding at 34% in 2006 as compared with

2005. The two-way trade was US$ 83 million in 2006 with India’s exports amounting to US$ 79.2 million and imports

from Croatia at US$ 3.8 million. Traditional goods and commodities such as textiles (bedlinen, apparel, hosiery, cotton

& silk fabrics), cotton yarn, leather, leather goods and footwear, coffee, chemical compounds, carpets & floor covering

and transport machinery continue to dominate India’s export to Croatia. Croatia’s export to India mainly include electrical

equipment (turbines, generators, transformers and accessories), textile machinery (looms, etc.), pharmaceuticals and

drugs, machine tools, wool and paper machinery.

(Source : Embassy of India, Zagreb)


Automobile Industry in Malaysia

(Continued from previous issue)

Competitive Landscape

Market Overview

Malaysia has become a hotbed of production activity over the last year, thanks to a raft of new assembly licences grantedto international manufacturers. According to Mahaleel Ariff, Chief Executive of state-owned Proton, Malaysia’s outputcapacity has now reached 700,000 units, of which his company and fellow national Perodua account for 500,000 units.However, production for the first 10 months of the year combined fell from 466,172 units in 2005 to 428,937 units.

The competitive position of state-owned car makers Proton and Perodua has remained a key focus for the Malaysianautomobile industry in recent years, with the two firms’ combined market share declining. Proton has been particularly hardhit; a bloated workforce and a lack of new models have not helped the firm, with the double-edged sword of long-standingGovernment protection militating against efficiency. In 2005, the company’s market share fell to 30%, from 34.6% in 2004.

Industry Developments

Following an initial slowdown after Malaysia’s NAP was introduced, there are signs that the used car market will returnto normal during the second-half of the year. According to Tony Khor, President of the Federation of Motor & Credit CompaniesAssociation of Malaysia, the market should recover by year-end.

The terms of the NAP have seen prices on new vehicles fall, creating greater competition for the second-hand market.Moreover, many consumers have either postponed buying a vehicle in order to wait for further price changes, or have chosento pay a little extra for a new car if there is no substantial saving to be made on a used one. As a result, Khor estimatedin April that the second-hand market would lose around MYR160 million in sales in 2006.

The Federation is slightly more optimistic of a recovery now, providing the Government does not introduce further changesto the duty structure. Interest rates have also played a role in dampening sales. Rising interest rates have increasedthe cost of car loans and this has meant that only customers near the end of paying off a loan are in a position to trade.

Oil prices remain an issue for both the new and used markets, although dealers have been confronted with this sincebefore the introduction of the NAP. Even so, second-hand dealers have reported a fall in sales of larger cars in favourof the compact segment.

At the end of the day, however, Khor claims that it is the Malaysian car buyer who will benefit most from the new pricestructures. The used-car segment, meanwhile, is looking to the Government for some support of its own.

Passenger Segment

Table : Malaysia Passenger Car Sales 2005 - Top Ten

Manufacturer Sales 2004 (CBUs) Sales 2005 % Change y-o-y Market Share (%)

Proton 166,833 166,118 -0.43 41.44

Perodua 114,329 134,170 17.35 33.47

Toyota 27,627 30,971 12.10 7.73

Honda 22,733 25,281 11.21 6.31

Kia/Naza 10,008 11,464 14.55 2.86

Nissan 6,777 7,420 9.50 1.85




Manufacturer Sales 2004 (CBUs) Sales 2005 % Change y-o-y Market Share (%)

Hyundai 7,412 6,480 -12.57 1.62

Inokom 11,540 5,469 -52.61 1.36

Chevrolet 5,906 4,708 -20.28 1.17

Mercedes-Benz 3,072 3,303 7.52 0.82

(Source : BMI research)

Total vehicle sales in 2005 were 13% higher than the previous year, reaching 551,042 units, compared with 487,605 unitsin 2004. Passenger car sales were up by 5.3% (at 400,835 units) and, within that total, national manufacturer Peroduaregistered 17.35% growth, while the proportion of sales from overseas manufacturers was 22% higher, at 45,841 units.

The two main national manufacturers, Proton and Perodua, continue to dominate the overall auto market (cars plus commercialvehicles) with shares of 30% and 25% respectively. However, Proton’s share is over 4% lower than 2004, while Peroduahas not moved from its 25% recorded in 2004.

Japan’s Toyota was the leading multinational and took third place overall. The company led the SUV and commercialsegments convincingly, with market shares of 29.6% and 43.44% from sales of 11,154 and 48,878 units respectively.

Sector Developments

Table : Malaysia Automotive Market Share, Jan-July 2006

Manufacturer Market Share 2005 January-July 2005 January-July 2006

Proton 41.44% 29% 24%

Perodua 33.47% 25% 33%

Toyota 7.73% 15% 16%

Kia/Naza 2.86% 7% 7%

Nissan 1.85% 5% 5%

Honda 6.31% 5% 5%

Hyundai/Inokom 2.98% 6% 3%

Others 3.36% 8% 7%

(Source : Malaysian Automotive Association)

Proton may have found the international partner it has been looking for, since parting ways with Japan’s Mitsubishi in

January 2005. The Malaysian Government has revealed that it is in talks with France’s PSA Peugeot Citroen and Germany’s

Volkswagen regarding a potential strategic alliance.

Proton entered into an initial agreement with PSA in September 2006, signing a letter of intent to work together in areas

such as joint vehicle development and sourcing of components. According to Syed Zainal, Proton’s Managing Director,

a technical team from the French firm is due in Malaysia to carry out a feasibility study.

PSA already has ties with Proton through its local partner Naza, which assembles the Peugeot 206 model. Naza has

recently announced plans to acquire a stake kin Proton from the Government’s investment arm Khazanah Nasional,

while also bidding for the rights to assemble more Peugeot vehicles.



Proton also has an existing agreement with the other party involved in the talks, Volkswagen. In January 2006, VW

reached an agreement to supply parts to Proton, while cooperating on a number of technical projects. The agreement

followed VW’s decision not to take an equity shareholding in the struggling national manufacturers. Volkswagen Executive

Vice President Mr. Stefan Jacoby was quoted as saying that the Proton management was reluctant to hand over the

reins to VW, while the company’s largest shareholder Khazanah Nasional wanted the car maker to remain independent.

Despite the Government’s protectionist stance towards its national car makers, the opening up of the industry to overseas

brands through the National Automotive Policy still makes it necessary for Proton to find an international partner if it

is to survive the competition.

This is increasingly evident as Volkswagen has appointed three new dealers in Malaysia, despite the industry’s slump

in sales. VW has named Wearnes Automotive, More Cars and VW Cars as its exclusive distributors. The three will

open a total of five dealerships in the Klang Valley by end-2006, rising to between seven and 10 outlets throughout the

country by the end of 2007.

BMW is facing up to a slowing market in Malaysia with the launch of eight new models. The new line-up includes the

imported M6, 130i, 525i Touring, 3-Series Touring, 730Ld, alongside the Malaysian-built 320i Standard, 320i Special Edition,

325i, Z4 and the MINI Seven, Park Lane and Checkmate variants. The BMW motorcycle range has also been beefed

up with the K1200R, KJ1200S, R1200ST, R1200RT, R1200GS and HP2 Enduro.

BMW Malaysia Managing Director Mr. Wolfgang Schlimme stated that the new launches form part of the German company’s

strategy to provide more choice for consumers. Moreover, the company is looking ahead, offering free maintenance and

scheduled servicing for three years or 60,000 km, which Schlimme explained would help second-hand BMW vehicles

to retain their value.

The Malaysian drive also includes the expansion and upgrade of BMW’s dealership network. Auto Bavaria Segambut

and Auto Bavaria Sungai Besi will re-open in Q406 following an upgrade, while new dealership Sapura Auto will open

in Q107, with Ipoh-based Tian Sang and Ingress Auto of Damansara to follow in Q407.

(Source : EEPC Singapore Office)


Tender Information


Bulgaria(EEPC Ref. No. DB-1642)

Project : Sofia District Heating Project

Loan No. 4704-BU, Project ID No. P008314

Loan from IBRD

Notice No. : WB2196-705/07

Issued by : Toplofikacia Sofia ADRoom 23123 Jastrebetz St.1680 Sofia, BulgariaAttn. : Mr. Peter PetrovTel. : (359-2) 859-8105Fax : (359-2) 859-9124E-mail : [email protected]

For : Supply of Cold Water Meters

- Lot 1 : Supply of 3,200 pieces of cold water meters with an impulse emitting device for remote reading

- Lot 2 : Supply of 1,400 pieces of cold water meters of conventional type

Tender cost : Non-refundable fee of EUR 100 (20% VAT not included)

Bid security : - Lot 1 : EUR 4,000 or an equivalent amount in a freely convertible currency.

- Lot 2 : EUR 1,000 or an equivalent amount in a freely convertible currency.

Bid deadline : 24.07.2007

China(EEPC Ref. No. DB-1643)

Project : Hubei Hydropower Development in Poor Areas Project

Loan No. 4666-CHA; Project ID No. P068049

Notice No. : WB2184-705/07

Issued by : The CMC International Tendering Corp.Floor 21st, Block B, Century PlazaZhongnan Rd.Wuhan, Hubei, P. R. ChinaAttn. : Mr. RaoaiminTel. : (86-27) 8726-0366Fax : (86-27) 8726-0215E-mail : [email protected]

For : Procurement of equipment for Hydropower Station :

- Package 1 : Supply and installation of E&M equipment for 5 generating units

- Package 2 : Supply and installation of metal structure



Tender cost : Non-refundable fee of RMB 1,000 or US$ 125. RMB 500 shall be added for purchasing of tender documentby express mail.

Bid security : Not less than 2% of the bid price.


Tajikistan(EEPC Ref. No. DB-1644)

Project : Municipal Infrastructure Development Project

Grant No. H2000 TJ, Project ID No. P079027

Grant from IDA

Notice No. : WB227-705/07

Issued by : Project Management Unit56 Karabaev St.Dushanbe, TajikistanAttn. : Mr. Jamshed Tabarov

Director, PMUTel. : (992-372) 331-330, 338-825E-mail : [email protected]

For : Procurement of Special Trucks and Equipment for Municipal Utilities :

- (a) Solid Waste Trucks for : Danghara (1ea); Vosse (1ea); Konibodom (1ea); Kulob (1ea); Qurghonteppa(1 ea); Vahdat (1ea)

- (b) Water Tank Trucks for : Kulob (1ea); Gharm (1ea)

- (c) Tractor for Istaravshan (1ea)

- (d) Mobile Crane for : Vosse (1ea); Istaravshan (1ea); Konibodom (1ea); Kulob (1ea)

- (e) Excavator for : Qurghonteppa (1ea); Danghara (1ea); Konibodom (1ea)

- (f) Excavator/Bulldozer for : Vosse (1ea); Istaravshan (1ea); Kulob (1ea); Vahdat (1ea)

- (g) Emergency Service Trucks for : Danghara (1ea); Vosse (1ea); Gharm (1ea)

- (h) WC Cleaning Truck for Gharm (1ea)

- (i) Hydrodynamic Truck for : Kulob (1ea); Qurghonteppa (1ea)

- (j) Welding Machine for : Konibodom (1ea); Gharm (1ea)

- (k) Compressor for : Danghara (1ea); Vosse (1ea); Kulob (1ea)

Tender cost : Non-refundable fee of US$ 200 or equivalent in Tajik Somoni

Bid security : US$ 12,000 or an equivalent amount in a freely convertible currency.


Tajikistan(EEPC Ref. No. DB-1645)

Project : Land Registration and Cadastre System for Sustainable Agriculture Project

IDA Grant No. H 157 TJ; Project ID No. P089566

Notice No. : WB2278-705/07



Issued by : Project Management Unit

15 Giprozemgorodok LRCSP, Room 6

PC 734067

Dushanbe, Tajikistan

Tel. : (992-37) 445-0197/98Fax : (992-37) 445-0198


For : Procurement of Vehicles : Vehicle cross-country ability

- Item 1 : Minibus (no more than 10), quantity/pieces : 7

- Item 2 : 4WD vehicle (anologue JEEP), quantity/pieces : 7

Tender cost : Non-refundable fee of Tajik Somonis 300 or its equivalent in a convertible currency.

Bid security : Not less than 2% of the bidder’s bid amount or an equivalent amount in a freely convertible currency.


Vietnam(EEPC Ref. No. DB-1646)

Project : Mekong Regional Health Support Project

Credit No. 4153-VN; Project ID No. P079663

Credit from IDA

Notice No. : WB2255-705/07

Issued by : Mekong Regional Health Support Project

Room C21-22, 5th Floor

Horison Hotel

40 Cat Linh Street

Dong Da District

Hanoi, Vietnam

Attn. : Dr. Le Thi Thanh

Project Director

Tel. : (84-4) 736-7325/26

Fax : (84-4) 736-7327


For : Medical Equipment for Hospitals

- Lot 1 : Equipment for Obstetric, Gynecology and Pediatrics

- Lot 2 : Equipment for Emergency and Intensive Care (Patient Treatment)

- Lot 3 : Equipment for Emergency and Intensive Care (Patient Monitoring)

Tender cost : Non-refundable fee of VND 1,600,000 or US$ 100 (+US$ 100 for Courier Charge)

Bid security : 2% of bid price or an equivalent amount in a freely convertible currency.


(Source : UN Development Business Website)



Egypt

Electromechanical Equipment

Issued by : El-Nasr Company for Buildings Construction

34 Samir Farahat Street

Makram Ebeid Street Extension

Cairo 7562

Egypt

For : Supply and installation of electromechanical equipment for a sanitary drainage water lifting station as

part of a sanitary drainage project in Abu Simble city.

Bid bond : £E 15,000

Closing date : Not stated

Saudi Arabia

Geographical Information System

Issued by : General Directorate of Border Guards

Procurement & Contracts Department

Riyadh

Saudi Arabia

Tel. : (9661) 4020222

Fax : (9661) 4081857


Website : www.bguard.gov.sa

Tender No. : 57/428

For : Supply of a geographical information system.

Details on payment of $ 800

Closing date : 08.07.2007

Hydraulic and Heavy Duty Equipment

Issued by : General Directorate of Health Affairs

Riyadh

Saudi Arabia

Tel. : (9661) 4066695

Tender No. : 16/1428

For : Supply and installation of hydraulic and heavy duty equipment for King Fahd hospital stores.

Details on payment of $ 270


(Source : MEED, Vol. 51, No. 20 dated 18-24 May, 2007)


Kuwait

Gas Unit Project

Issued by : Central Tenders Committee

P.O. Box 1070

Safat 13011

Kuwait

Tel. : (965) 2401200

Fax : (965) 2416574

Tender No. : CA/PD/3678. (Open to pre-qualified contractors only.)

For : Implementation of a fourth gas unit project at Kuwait National Petroleum Company’s Ahmadi refinery.

Bid bond : 2.5 per cent of tender price.

Details on payment of KD 5,000


Gas Compressors

Tender No. : RFP/1511. (Open to pre-qualified contractors only.)

For : Supply, installation, operation and maintenance of gas compressors at gathering centre 16 and refilling

of compressor gas at Manaqeesh West for Kuwait Oil Company.

Bid bond : KD 426,000



Water Pipelines

Tender No. : MEW/7-2007-2008. (Open to pre-qualified contractors only.)

For : Construction, completion and maintenance of 1,200-millimetre-diameter main distilled water pipelines from

the Shuaiba Southern Water Distillation Station to Mina Abdulla New Water Distribution Complex for the

Ministry of Electricity and Water.




Water Coolers

Tender No. : 1/2007-2008

For : Supply, installation and testing of main water coolers for the Kuwait Institute of Scientific Research.


Details on payment of KD 350




LebanonSea Wall Protection

Issued by : Council for Development & ReconstructionDivision of Legal AffairsTenders DepartmentTallet el-Serail, Beirut, LebanonTel. : (9611) 980096-7Fax : (9611) 981252-3E-mail : [email protected] : www.cdr.gov.lb

Project No. : P050529

For : Supply of goods, carrying out works, and provision of services and consultancy services for the seawall protection package at the Tyre archaeological site as part of the cultural heritage and urbandevelopment project. The scope of works comprises : 1) dismantling of the existing wall; 2) excavationin archaeological context for the foundation of a new wall; and 3) construction of a new concrete protectionwall. Co-financed by the Agence Francaise de Developpement, Italy and France.

Bid bond : $ 40,000Details available on payment of $ 500.


OmanGrid Station and Transmission System

Issued by : Tender BoardP.O. Box 787, PC 133Al-Khuwair, OmanTel. : 96824-602073Fax : 96824-602063

Tender No. : 169/200

For : Construction of a 220/132/33-kV grid station (airport heights) and an associated transmission systemin the Muscat governorate for Oman Electricity Transmission Company.Details available on payment of RO 1,500.


Saudi ArabiaProduct Pipeline Corridor

Issued by : Royal Commission for Jubail & YanbuJun llot, Directorate-General for Royal Commission of YanbuP.O. Box 10001Madinat al-Yanbu al-Sinaiyah – 31961Saudi ArabiaTel. : (9663) 3414049Fax : (9663) 3412201E-mail : [email protected] : www.rcjy.gov.sa



Contract No. : 204/C32

For : Carrying out the product pipeline corridor causeway project at King Fahd Industrial Port (KFIP) in Jubailindustrial city. The scope of works comprises the construction of pipe sleepers and second level tracks,expansion of existing sleepers, expansion works to existing structural steel vertical loops cross accessesand existing ISS structures, construction of loop structures, cross access structures, ISS structures,laterals to industry structures and miscellaneous pipe supporting structures in various locations withinthe ROW of existing pipeline corridors of the Jubail 1 industrial park and KFIP port areas. A pre-bidmeeting will take place on 11 July.


Petrochemicals Quay and Berths

Contract No. : 226-C23

For : Engineering, procurement and construction of petrochemicals quay 3, berths 71 to 74, petrochemicalhose towers 71 to 74 for the expansion of King Fahd Industrial Port in Jubail industrial city, phase 1.The scope of works includes engineering, dredging, piling, earthworks, concrete and steel structures,piping, mechanical, electrical and instrumentation works, and other specialities.A pre bid meeting will take place on 15 July.


(Source : MEED Vol. 51 No. 21, dated 25-31 May, 2007)

EgyptIssued by : Egyptian Electricity Transmission Co. (EETC)

Central Egypt Electricity Zone5 Sixth October St.Off El Bahr El Aazam St.Opposite Pharaonic VillageEl Mounib, Giza, EgyptTel/Fax : +202-5716390

Reference No. : 76/2007/2008

For : Supply & supervision of erection of 3 x 40 MVA 66/11 kV power transformers for Behtim II transformerstation. Bidders should be the manufacturer of the transformers or a trading company forming a consortiumwith the manufacturer.

Tender cost : $ 2,000

Bid bond : $ 50,000


For further details, please contact :

Mr. Debashish BanerjeeSecond Secretary (Com.)Embassy of IndiaCommerce Wing, 5, Aziz Abaza St.Zamalek, Cairo, EgyptTel. : 00 20 2 7360223Fax : 00 20 2 7364038E-mail : [email protected]

(Source : Embassy of India, Cairo)



EthiopiaIssued by : Ministry of Education

Education Sector Development Planning and Policy Analysis DepartmentArat Kilo SquareAddis Ababa, EthiopiaTel. : 00251-11-1564042/1553133Fax : 00251-11-1577164

IFB No. : T & G/ICB/001/07

For : Supply of following items :

For Addis Ababa Tegbareid TVET College :

- Lot 1 : Furniture for classrooms, drafting rooms, computer class, workshop and library.

- Lot 2 : Computers and accessories, overhead projectors, white boards, duplicating and photocopy machines.

- Lot 3 : Books for library.

For General Wingate TVET College :

- Lot 4 : Furniture for classrooms, drafting rooms, computer class, workshop and library.

- Lot 5 : Computers and accessories, overhead projectors, white boards, duplicating and photocopy machines.

- Lot 6 : Books for library

Tender cost : Non-refundable fee of US$ 50 or ETB 450

Bid security : Not less than 2% of the bid amount.



Mr. Ramesh KumarSecond Secretary (Com.)Embassy of IndiaKabena (Aware Distt.)Post Box No. 528Addis Ababa, EthiopiaTel. : 00-251-1-552100Fax : 00-251-1-552521/552305E-mail : [email protected]

(Source : Embassy of India, Addis Ababa)

VietnamIssued by : Project Department

Vietnam-Italy Joint Stock CompanyKm 24+500, Pho Noi A Industry ZoneGiai Pham, Yen MyHung Yen, VietnamTel. : +84 321 941 771Fax : +84 321 942 875/226E-mail : [email protected]



For : Investment for construction of the steel billet production plant in Hai Phong City :

Bid package No. 20 : Supply of equipment, material, installation, commissioning, handing over circulated

treatment system including urgent water power (All-in).

Bid package No. 21 : Supply of equipment, material, installation, commissioning, handing over dust

tackling system (including stack, pipe) (All-in).

Tender cost : US$ 300 per set

Performance : US$ 20,000

guarantee

Closing date : 12.07.2007 at 14h00 hours for Package 20

13.07.2007 at 14h00 hours for Package 21


Embassy of India

Commercial Section

No. 58-60 Tran Hung Dao Str.

Hanoi

Tel. : 84-4-8244990

Fax : 84-4-8244998


(Source : Embassy of India, Hanoi)



Trade Enquiries


Finland(Source : Direct from the party)

Name of the Company Addresses Contact Person/Tel./Fax/E-mail Items interested

Krogerus Consulting Oy Sarkiniementie 5, 4th Floor Attn. : Mr. Romy Kumar Extruded aluminium profiles.

00210 Helsinki Vice President

Finland Tel. : +358 9 665 180

Fax : +358 9 665 182


Website : www.krogerusconsulting.com

Malaysia(Source : EEPC Singapore Office)

Espifokus Sdn. Bhd. 8A, Jalan Alfa E U6/E Attn. : Mr. Mohd. Rosli Bin Jamaludin Medical equipment.

Subang Permai Business Centre Vice President

40150 Shah Alam Tel. : 603-78458550

Selangor Darul Ehsan Fax : 603-78455197

Malaysia E-mail : [email protected]

Singapore(Source : EEPC Singapore Office)

Toyo Marine & Industrial Block 3005 Attn. : Mr. Francis Kuah Marine equipment and accessories

(S) Pte. Ltd. Ubi Ave 3, #03-86/88 Managing Director including marine navigational

Singapore 408861 Tel. : 65-6748 1588 equipment and radar, spare

Fax : 65-6748 9711 engine parts.

E-mail :

[email protected]

Website : www.toyomarine.com

www.toyomarine.com.sg

Slovak Republic(Source : Direct from the party)

Slovenske energeticke Tovarenska 210 Attn. : Mr. Michal Krajci Steel pipes and tubes

strojarne a.s. 935 28 Tlmace Central Purchasing (higher grades).

Slovak Republic Tel. : +421-36-638 3013/2806



Vietnam(Source : EEPC Singapore Office)


Kim Nam Company Ltd. 412/7, Luy Ban Bich Str. Attn. : Mr. Huy Secondary-second steel as per

Hoa Thanh Ward Tel. : (84-8) 4086412 following specifications :

Tan Phu Dist. Fax : (84-8) 4086413 - Hot rolled, cold rolled steel coils,

Ho Chi Minh City E-mail : [email protected] sheet, plate, strip 304, 201, 430.

Vietnam [email protected] - Electrogalvanised steel.

Website : www.kimnamco.com - All grades : soft commercial

quality, assorted or unassorted.

- Stainless steel : unassorted, plate

304/2B-Ba, coils/sheet 304 2B-

BA.

Trade enquiries received from Indian Mission Overseas

Ethiopia(Source : Embassy of India, Addis Ababa)


Mr. Kefle Ababe P.O. Box 28429 Tel. : 00251-11-1578889 G.I. pipes & fittings.

Addis Ababa Fax : 00251-11-1552444

Ethiopia

MM Hi Tech Industrial Co. P.O. Box 21347, Code 1000 Attn. : Mr. Mesfin Mulugeta Gypsum powder and board

Addis Ababa Tel. : +251 (0) 911 667419 production line, glass timbering

Ethiopia E-mail : [email protected] machine, cement processing

[email protected] machine.

Farid Abdella Thabit P.O. Box 159 Tel. : 00251-11-5519400/ - Wiring mesh (for rewinding

Nazerath 5501933, motors) wire

Ethiopia 00251-11-911209650 - Device for telephone centers to

E-mail : [email protected] control the time and the price

for the customer. This device

install in every booth connected

with PC and at the end of the

call the PC will print the custo-

mer where he called, how long

use the line and how much it

cost him the call (this device

help to get all this information).



Public Notice

Domestic Information

Government of IndiaMinistry of Commerce & Industry

Department of CommerceDirectorate General of Foreign Trade

New Delhi

Notification No. 8(RE-2007)/2004-2009Dated 11th June, 2007

S.O. (E) – In exercise of powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read

with paragraph 2.1 of the Foreign Trade Policy – 2004-09, the Central Government hereby amends Schedule-I of the ITC (HS)

Classification of Export and Import Items, 2004-09 as under :-

1. The policy condition to Exim Code 8473 30 stands deleted.

Sd/-

(B. S. MEENA)

Director General of Foreign Trade

(F. No. 01/93/180/M-110/AM05/PC-IB)



Government of IndiaMinistry of Finance

Department of RevenueCentral Board of Excise & Customs

New Delhi

Notification No. 55/2007-Customs (N.T.)Dated 31st May, 2007

S.O.(E) – In exercise of the powers conferred by Sub-Section (2) of Section 14 of the Customs Act, 1962, (52 of 1962), the Board,being satisfied that it is necessary and expedient so to do, hereby makes the following further amendment in the Notificationof the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Cus (N.T.) dated the 3rd August,2001, namely :-

In the said Notification, for the Table, the following Table shall be substituted namely :-

“TABLE

S. No. Chapter heading/ Description of goods Tariff value US$sub-heading (Per Metric Tonne)

(1) (2) (3) (4)

1. 1511 10 00 Crude Palm Oil 447 (i.e. no change)

2. 1511 90 10 RBD Palm Oil 476 (i.e.no change)

3. 1511 90 90 Others – Palm Oil 462 (i.e. no change)

4. 1511 10 00 Crude Palmolein 481 (i.e. no change)

5. 1511 90 20 RBD Palmolein 484 (i.e. no change)

6. 1511 90 90 Others – Palmolein 483 (i.e. no change)

7. 1507 10 00 Crude Soyabean Oil 580(i.e. no change)

8. 7404 00 22 Brass Scrap (all grades) 4524”

Sd/-(S. P. RAO)

Under Secretary to the Government of India(F. No. 467/23/2007-Cus.V)

Note : - The Principal Notification was published in the Gazette of India, Extraordinary, vide Notification No. 36/2001 –Customs (N.T.), dated, the 3rd August, 2001 [S.O.748 (E) dated the 3rd August, 2001] and was last amendedvide Notification No. 51/2007-Customs (N.T.) dated the 16th May, 2007 [S.O.769 (E) dated 16th May, 2007].




Department of RevenueCentral Board of Excise & Customs

New Delhi

Notification No. 76/2007-CustomsDated 6th June, 2007

G.S.R. 417 (E). – In exercise of the powers conferred by Sub-Section (1) of Section 25 of the Customs Act, 1962 (52 of 1962),the Central Government being satisfied that it is necessary in the public interest so to do, hereby directs that each of the Notificationsof the Government of India in the Ministry of Finance (Department of Revenue), specified in column (2) of the Table hereto annexedshall be amended or further amended, as the case may be, in the manner specified in the corresponding entry in column (3)of the said Table, namely :-

TABLE

S. No. Notification No. and date Amendment(1) (2) (3)

1. 55/2001-Customs, dated the 16th In the said Notification, in condition (iv), after entry (i),May, 2001, G.S.R. 360 (E), the following entry shall be inserted, namely :-dated the 16th May, 2001 “(j) M/s. International Diamond Laboratories DMCC,

Dubai”

2. 41/1999-Customs, dated 28th April, In the said Notification, -1999, G.S.R. 289 (E), (1) in paragraph (a), for the clause (ii) entries rela-dated 28th April, 1999 ting thereto, the following shall be substituted,

namely :-

“(ii) upto three per cent. of the Free On Board (FOB)value of preceding financial year of the export ofrhodium-finish jewellery made of silver imported bythe exporter of such rhodium-finish silver jewellery;

(iii) upto two per cent. of the Free On Board (FOB)value of preceding financial year of the export ofjewellery made of silver imported bythe exporter of such silver jewellery;”;

(2) in the paragraph after paragraph (b), for the portionbeginning with the words “Replenishment Licencereferred to in Para 4.80 of the Handbook ofProcedures Volume-I, 1st September, 2004- 31stMarch, 2009, published by the Government of Indiain the Ministry of Commerce and Industry videPublic Notice No. 1/2004-09, dated the 31stAugust, 2004, as amended from time to time”, thefollowing shall be substituted, namely : -

“Replenishment Authorisation referred to in Para4A.28 of the Handbook of Procedures Volume-I, the1st September, 2004- 31st March, 2009, published



S. No. Notification No. and date Amendment(1) (2) (3)

by the Government of India in the Ministry ofCommerce and Industry vide Public Notice No. 1(RE-2007)/2004-09, dated the 19th April, 2007, asamended from time to time,”;

(3) in proviso to paragraph (b), for the words“Replenishment Licence”, the words “Replenish-ment Authorisation” shall be substituted.

3. 52/2003-Customs dated the 31st March, In the said Notification,-2003, G.S.R. 274 (E), dated the (1) in the proviso to paragraph 4, after clause (b),31st March, 2003 the following proviso shall be inserted, namely :-

“Provided further that in a case of exit by a unitwhere positive NFE criteria is fulfilled in terms ofPara 6.18 (g) of Foreign Trade Policy, suchclearance or debonding of goods shall be allowedunder Advance Authorization as one time optionon payment of applicable duty.”;

(2) after paragraph 13, in the Explanation, after Sr. No.(xi) and entries relating thereto, the following serialnumber and entry shall be inserted, namely,-

“(xii) “NFE” means Net Foreign ExchangeEarnings in terms of Para 6.5 of Foreign TradePolicy and Para 6.10.1 of Handbook ofProcedure, volume 1 and shall be calculated inthe manner explained in Annexure-I to Appendix14-I-G of Handbook of Procedure, volume 1.”

Sd/-(ANUPAM PRAKASH)

Under Secretary to the Government of India

(F. No. : DGEP/FTP/69/2007-EOU & G&J)

Note :-

1. The principal Notification No. 55/2001-Cus, dated the 16th May, 2001 was published in the Gazette of India Extraordinary,Part II, Section 3 (i) vide G.S.R. 360(E), dated the 16th May, 2001 and was last amended by Notification No. 44/2006-Cus, dated the 17th May, 2006 published vide G.S.R. 291 (E), dated the 17th May, 2006.

2. The principal Notification No. 41/1999-Customs, dated the 28th April, 1999 was published in the Gazette of IndiaExtraordinary, Part II, Section 3 (i) vide G.S.R.289 (E), dated the 28th April, 1999 and was last amended by amendedby Notification No. 87/2004-Customs, dated the 6th September, 2004 published vide G.S.R. 566 (E), dated the 6thSeptember, 2004.

3. The principal Notification No. 52/2003-Customs, dated the 31st March, 2003 was published in the Gazette of IndiaExtraordinary, Part II, Section 3 (i) vide G.S.R 274(E), dated the 31st March, 2003 and last amended by NotificationNo. 5/2007-Cus, dated the 15th January, 2007 published vide G.S.R. 27 (E), dated the 15th January, 2007.


Export Finance


Reserve Bank of IndiaForeign Exchange DepartmentCentral Office, Mumbai 400 001

A. P. (DIR Series) Circular No. 65Dated 31st May, 2007

Remittance on Winding up of Companies

Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to Regulation 3 of Notification No. FEMA 13/2000-RB dated 3rd May 2000 Foreign Exchange Management (Remittance of Assets) Regulations, 2000, in terms of whichunless otherwise provided in the Act or rules or regulations no person whether a resident in India or not, shall makeremittance of any assets held in India by him or any other person except with the permission of the Reserve Bank. Therefore,as per the existing provisions, remittance of out of the assets of Indian companies under liquidation requires prior approvalof the Reserve Bank.

2. As announced in the Annual Policy Statement for the year 2007-08 (para 146 (i) (vii)), as a measure of simplification ofprocedure, it has been decided to delegate powers to AD Category – I banks to permit remittance out of assets of Indiancompanies under liquidation under the provisions of the Companies Act, 1956 subject to any order issued by the courtwinding up the company or the official liquidator or the liquidator in case of voluntary winding up and also subject to taxcompliance.

3. Accordingly, AD Category – I banks are now permitted to allow remittance of out of the assets of Indian companies underliquidation under the provisions of the Companies Act, 1956, subject to the following conditions :

(i) AD Category-I bank shall ensure that the remittance is in compliance with the order issued by a court in India/orderissued by the official liquidator or the liquidator in the case of voluntary winding up ; and

(ii) no remittance shall be allowed unless the applicant submits :-

(a) No objection or Tax clearance certificate from Income Tax authority for the remittance.

(b) Auditor's certificate confirming that all liabilities in India have been either fully paid or adequately provided for.

(c) Auditor's certificate to the effect that the winding up is in accordance with the provisions of the Companies Act, 1956.

(d) In case of winding up otherwise than by a court, an auditor's certificate to the effect that there is no legal proceedingspending in any court in India against the applicant or the company under liquidation and there is no legal impedimentin permitting the remittance.

4. Necessary amendments to Notification No. FEMA 13/2000-RB dated 3rd May 2000 [Foreign Exchange Management(Remittance of Assets) Regulations, 2000] are being notified separately.

5. AD Category - I banks may bring the contents of the circular to the notice of their constituents and customers concerned.

6. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange ManagementAct, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.

Sd/-(SALIM GANGADHARAN)

Chief General Manager




A. P. (DIR Series) Circular No. 66Dated 31st May, 2007

Risk Management and Inter-Bank Dealings-Commodity Hedging

Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to Regulation 6 of Notification No.FEMA.25/

RB-2000 dated May 3, 2000, as amended from time to time and A.P. (DIR Series) Circular No.03 dated July 23, 2005.

Currently, residents in India are permitted, with prior approval of the Reserve Bank, to enter into contracts in commodity

exchanges or markets outside India to hedge the price risk in a commodity, subject to certain terms and conditions. Further,

companies listed on a recognised stock exchange can be permitted by selected AD Category – I banks to hedge the price

risk in respect of any commodity (except gold, silver, petroleum and petroleum products) in international commodity exchanges/

markets. However, hedging the price risk on domestic sale/purchase transactions in the international exchanges/markets is

not permitted, even if the domestic price is linked to the international price of the commodity.

2. Commodity Hedging for Domestic Transactions - Select Metals

Reserve Bank has been receiving representations from domestic producers and users of certain metals for permission

to hedge the price risk on domestic purchases and sales in international exchanges, like London Metal Exchange (LME),

in order to take advantage of greater depth and liquidity in such exchanges.

As announced in the Annual Policy Statement for the year 2007-08 (para 139), it has been decided that AD Category – I

banks, which have specifically been authorised by Reserve Bank in this regard, may, henceforth, permit domestic

producers/users to hedge their price risk on aluminium, copper, lead, nickel and zinc in international commodity exchanges,

based on their underlying economic exposures. Hedging may be permitted up to the average of previous three financial

years' (April to March) actual purchases/sales or the previous year's actual purchases/sales turnover, whichever is higher,

of the above commodities. Further, only standard exchange traded futures and options (purchases only) may be permitted.

3. Commodity Hedging for Domestic Purchases - Aviation Turbine Fuel (ATF)

AD Category – I banks, which have specifically been authorised by Reserve Bank in this regard, may also permit actual

users of aviation turbine fuel (ATF) to hedge their economic exposures in the international commodity exchanges based

on their domestic purchases. Reserve Bank has received representations from domestic users of ATF for permission to

hedge their economic exposure through OTC products as well since ATF or its close substitutes are not traded on the

exchanges. According to the domestic users, the hedging of their exposures to price risk on ATF indirectly through the

exchange traded products, such as crude oil, heating oil, etc., may not achieve perfect hedges. Accordingly, if the risk

profile warrants, the actual users of ATF may also use OTC contracts. AD Category – I banks should ensure that

permission for hedging ATF is granted only against firm orders and the necessary documentary evidence should be

retained by them.

4. AD Category – I banks may approach Reserve Bank for permission on behalf of customers who are exposed to systemic

international price risk, not covered under para 2 or 3 above.

5. AD Category – I banks should ensure that the entities entering into hedging activities should have Board approved

policies which define the overall framework within which derivatives activities should be conducted and the risks controlled.

All other conditions and guidelines contained in A.P. (DIR Series) Circular No. 03 dated July 23, 2005 should be complied

with. All transactions should be routed only through a designated AD Category – I bank.



6. AD Category – I banks that have already been authorised by Reserve bank to grant permission to companies listed on a

recognised stock exchange to hedge commodity price risk should also apply afresh in respect of these new facilities.

7. AD Category – I banks which have been granted permission to approve commodity hedging are required to submit a

monthly report to the Chief General Manager, Reserve Bank of India, Foreign Exchange Department, Central Office,

Forex Markets Division, Amar Building, 5th Floor, Mumbai-400 001, within first week of following month, as per format

given in the Annex.

8. Applications from customers to undertake hedge transactions not covered under the delegated authority may continue to

be forwarded to Reserve Bank by the AD Category – I banks, for approval as hitherto.

9. Necessary amendments to Notification No. FEMA. 25/RB-2000 dated 3rd May, 2000 [Foreign Exchange Management

(Foreign Exchange Derivative Contracts) Regulations, 2000] are being notified separately.

10.AD Category - I banks may bring the contents of the circular to the notice of their constituents and customers concerned.

11.The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management

Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.

Sd/-

(SALIM GANGADHARAN)





A. P. (DIR Series) Circular No. 67Dated 1st June, 2007

Deferred Payment Protocols dated April 30, 1981 and December 23, 1985between Government of India and erstwhile USSR

Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to A. P. (DIR Series) Circular No. 23 dated

December 18, 2006, wherein the rupee value of the special currency basket was indicated as Rs. 58.6627 effective from

October 20, 2006.

2. AD Category - I banks are advised that a further revision has taken place on April 16, 2007 and accordingly, the rupee

value of the special currency basket has been fixed at Rs. 56.8292 with effect from April 19, 2007.

3. AD Category - I banks may bring the contents of this circular to the notice of their constituents concerned.

4. The directions contained in this circular have been issued under Sections 10 (4) and 11(1) of the Foreign Exchange

Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law.

Sd/-

(SALIM GANGADHARAN)




RBI/2006-2007/430

A. P. (DIR Series) Circular No. 70Dated 7th June, 2007

Deferred Payment Protocols dated April 30, 1981 and December 23, 1985between Government of India and erstwhile USSR

Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 67 dated June 01,

2007, wherein the rupee value of the special currency basket was indicated as Rs.56.8292 effective from April 19, 2007.

2. AD Category-I banks are advised that a further revision has taken place on April 26, 2007 and accordingly, the rupee value

of the special currency basket has been fixed at Rs.54.9580 with effect from May 03, 2007.

3. AD Category-I banks may bring the contents of this circular to the notice of their constituents concerned.

4. The Directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange

Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any

other law.

Sd/-

(SALIM GANGADHARAN)






A. P. (DIR Series) Circular No. 68Dated 1st June, 2007

Overseas Direct Investment - Rationalisation of Forms

Attention of Authorised Dealer Category-I (AD Category - I) banks is invited to Notification No.FEMA120/RB-2004 dated July 7, 2004,[Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2000] as amended from time to time.

2. At present, application for overseas direct investment is required to be made in any one of the three forms viz., ODA fordirect investments in Joint Venture (JV)/Wholly Owned Subsidiary (WOS) under automatic route, ODI for investments underapproval route and ODB for issue of ADRs/GDRs on back to back basis. Further, reporting of remittances is currentlyrequired to be made through AD Category - I banks in either of the two forms viz., ODR for remittances made for overseasdirect investments and ODG for overseas acquisitions made under ADR/GDR Stock Swap Scheme. Form APR is theAnnual Performance Report on the functioning of overseas JV/WOS. The liberalisation in the policy on overseas investmentshas enabled many Indian corporates to establish presence in overseas markets, redefining the global outreach of Indianentities. However, the reporting framework has not kept pace with the developments and does not capture data comprehensivelyon overall costs of acquisition, funding patterns, performance indicators, etc.

3. Accordingly, as announced in the Annual Policy for the Year 2007-08 (para 133), with a view to improving the coverage andto ensure monitoring of the flows in a dynamic environment, it has now been decided to revise the existing reporting system.As per the new reporting package, all the forms have been subsumed into one form viz. ODI, comprising of four parts :

Part I – which includes the following :

Section A – Details of the Indian Party

Section B – Details of Investment in New Project

Section C - Details of Investment in Existing Project

Section D – Funding for JV/WOS

Section E – Declaration by the Indian Party

Section F - Certificate by the Statutory Auditors of the Indian Party

Part II – Reporting of Remittances

Part III – Annual Performance Report (APR)

Part IV – Report on Closure/Disinvestment/Voluntary Liquidation/Winding up of JV/WOS.

4. A new system has also been introduced for reporting Closure/Disinvestment/Winding up/Voluntary Liquidation of theoverseas JV/WOS under general permission (Part IV of form ODI). The revised ODI form and instructions for filling up theforms are annexed. Reporting in the revised form ODI will come into effect from June 1, 2007. The form can also bedownloaded from Reserve Bank’s website www.rbi.org.in.

5. It is reiterated that the revised form is only a rationalisation of the reporting procedure and there is no change or dilutionin the existing eligibility criteria/documentation/limits. Eventually, these reports will be received on line by Reserve Bank.

6. Accordingly, AD Category - I banks may take action as under :

(a) In cases of Automatic Route – Parts I and II of form ODI should be submitted to The Chief General Manager, ReserveBank of India, Foreign Exchange Department, Overseas Investment Division, Amar Bldg. 3rd floor, Sir P. M. Road,Fort, Mumbai 400001.



(b) In case of Approval Route – Part I of form ODI, along with the supporting documents, is required to be submitted afterscrutiny and with specific recommendations by the designated AD Category - I bank, at the address mentioned above.In case the proposal is approved, Part I will be returned by the Reserve Bank to the AD Category - I bank. Aftereffecting the remittance, the AD Category – I bank should resubmit the same to the Reserve Bank along with Part II ofform ODI.

(c) In case of disinvestment/closure/winding up/voluntary liquidation under the Automatic Route, in terms of A. P. (DirSeries) Circular No. 29 dated March 27, 2006, a report should be submitted by the designated AD Category - I bank, inPart IV of form ODI. In all other cases of disinvestment, an application along with the necessary supporting documentsshould be submitted to the Reserve Bank as per the current procedure.

7. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

8. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign ExchangeManagement Act 1999 (42 of 1999) and is without prejudice to permissions/approvals, if any, required under any other law.



[Annex to A. P (DIR Series) Circular No. 68 dated June 01, 2007]

ODI Information System

Direct Investment in a Joint Venture (JV)/Wholly Owned Subsidiary Overseas (WOS)Approval/Reporting of Outward Remittances

Instructions for filling up the Form ODI(This part should be detached and retained by the applicant)

This set of forms attempts to capture basic information relating to overseas investments by Indian parties (as defined underNotification FEMA 120/RB-2004 dated July 7, 2004, as amended from time to time).

• Part I contains details of the JV/WOS, Indian Parties and the financing pattern of the overseas entity.

• Part II reports remittances certified by AD.

• Part III is the Annual Performance Report, which contains brief particulars of the performance of the overseas entity and

• Part IV is to be used at the time of disinvestment/liquidation/winding up.

Section D of Part I is critical, since information regarding ownership structure and financing pattern have been includedhere. In addition to details of remittance from India, Part I must report full details of funding through SPVs / subsidiariesoverseas, share of foreign partners, etc.

(1) Part I (barring Section C) of the form is required to be filled up by the Indian party seeking to invest in JV/WOS overseaseither under Automatic Route or Approval Route and submitted to the designated AD Category – I bank. Part I (SectionsC and D) is required to be submitted, whenever the initial capital or financing structure of the JV/WOS reported to theReserve Bank at the time of the initial remittance/approval undergoes changes by way of expansion, merger, infusion ofadditional capital, etc.

(2) Under Automatic Route, in case of new proposals, immediately after effecting remittance, the designated AD Category - Ibank should forward Part I of the form along with Part II to The Chief General Manager, Reserve Bank of India, ForeignExchange Department, Central Office, Overseas Investment Division, (OID), Amar Bldg., Mumbai 400001 for obtainingthe Unique Identification Number..

(3) Under Approval Route, Part I of the form, after scrutiny, should be submitted by the AD Category-I bank, along with theirrecommendations, to the Reserve Bank at the above address. If approved, Part I of the form will be returned to the ADCategory – I bank and should be resubmitted by the AD Category – I bank to Reserve Bank immediately after effectingthe remittance, along with Part II of form at the address mentioned above.



(4) In case of supplementary remittances, only Part II of the form, complete in all respects, is required to be submitted by

the AD Category - I bank to Reserve Bank. However, if capital structure/financing pattern, etc. of the JV/WOS have

changed since reporting at the time of initial investment Part I of the form (barring Sections A and B) need to be

submitted along with Part II.

(5) In case more than one Indian promoter is investing in the same JV/WOS, details of each such promoter should be

provided in a single format by the AD designated for the JV/WOS.

(6) Annual Performance Report (APR) (Part III) should be submitted, through the designated AD Category-I bank, every

year within 3 months of the closing of annual accounts of the JV/WOS for as long as the JV/WOS is in existence, at the

address above.

(7) All amounts of foreign currency (FCY) and Indian rupees (INR) should be in thousands only.

(8) When JV/WOS is closed/wound up/disinvested/liquidated, etc., report should be submitted to Reserve Bank at the

address above in Part IV of the form within 30 days of the disinvestment.

(9) Reserve Bank reserves the right to put the information furnished here in the public domain.

For approval by the Reserve Bank, the following documents need to be submitted along with Part I.

(a) A report from the bankers of the Indian party in a sealed/closed cover.

(b) The latest Annual Accounts, i.e. Balance Sheet and Profit and Loss Account of the Indian party along with the

Directors’ Report.

(c) Additional documents as under, if the application is made for partial/full take over of an existing foreign concern :-

(i) A copy of the certificate of incorporation of the foreign concern;

(ii) Latest Annual Accounts, i.e. the Balance Sheet and Profit and Loss Account of the foreign concern along with

Directors’ Report; and

(iii) A copy of the share valuation certificate from :

• a Category I Merchant Banker registered with SEBI, or, an Investment Banker/Merchant Banker registered

with the appropriate regulatory authority in the host country, where the investment is more than USD 5 million

(US Dollars Five million), and

• in all other cases, by a Chartered Accountant or a Certified Public Accountant.

(d) A certified copy of the Resolution of the Board of Directors of the Indian party/(ies) approving the proposed investment.

(e) Where investment is in the financial services sector, a certificate from a Statutory Auditor/Chartered Accountant to

the effect that the Indian Party :

(i) has earned net profits during the preceding three financial years from the financial service activity;

(ii) is registered with the appropriate regulatory authority in India for conducting the financial services activity;

(iii) has obtained approval for investment in financial sector activities abroad from regulatory authority concerned in

India and abroad; and

(iv) fulfilled the prudential norms relating to capital adequacy as prescribed by the regulatory authority concerned in India.

Overseas Investments - Proprietorship concerns/unregistered Partnership firms

Eligible Proprietorship concerns/unregistered Partnership firms may apply in Part I of form ODI through their AD Category –

I bank, together with the latter's recommendations, in terms of para 4 of A. P. (Dir Series) Circular No 29 dated March 27,

2006 to the Chief General Manager, Reserve Bank of India, Foreign Exchange Department, Overseas Investment Division,

Central Office, Amar Building, Fort, Mumbai 400 001.



FORM ODIPART I

For office use only

Date of Receipt ---------------------------------

Inward No. ---------------------------------

Section A : Details of Indian Party

(I) Investment under (i) Automatic Route (ii) Approval Route

(In case there is more than one Indian party, information may be given on separate sheets for each of the parties)

(II) Name of Indian Party

(III) Address of Indian Party

City State Pin

(IV)Contact Person Designation

Tel No. : Fax :

E-mail :

(V) Status of Indian Party : (Please tick appropriate category)

(1) Public Ltd. Company (2) Private Limited Company

(3) Public Sector Undertaking (4) Registered Partnership

(5) Proprietorship (6) Unregistered Partnership

(7) Trust (8) Society

(9) Others

(VI) Activity code of Indian Party**NIC code at 3-digit level

[If the Indian Party is engaged in Financial sector or falls under the category of Proprietorship, UnregisteredPartnership or Financial sector, the details are to be furnished in Item VII below].

(VII) Financial particulars of the Indian Party for the last 3 years

(Amt. in Rs. 000s)

Particulars Year 1 Year 2 Year 331-3- 31-3- 31-3-

Foreign exchange earnings (excluding equity exports to JV/WOS)

Net profit

Paid-up Capital

Net worth of (a) Indian Party

(b) Group Company@

@ In terms of Explanation to Regulation 6 (3) of Notification No. FEMA 120/ RB-2004 dated July 7, 2004



(VIII) Particulars of existing Joint Ventures (JV) and Wholly Owned Subsidiaries (WOS) already in operation or under implementation,of the Indian party and its group concerns :

Sr. No. Name of Indian Party Unique Identification Number allotted by Reserve Bank

1.

2.

3.

(IX) Whether the proposed investment is (Tick the appropriate box)

(a) New Project (Please furnish the details in Section B)

(b) Existing Project* (Please furnish the details in Section C)

*Acquisition of stake in an already existing JV/WOS overseas promoted by an Indian party.

Section B : Details of Investment in New Project

For Reserve Bank use only Unique Identification Number

(I) Purpose of investment (Please tick appropriate category)

(a) Participation in JV (b) Contribution in WOS

(c) Full acquisition of a foreign concern (d) Partial acquisition of a foreign concern

(e) Investment in unincorporated entity (f) Others

(II) Particulars of JV/WOS

(a) Name of JV/WOS

(b) Address of JV/WOS

(c) Name of the country

(d) E-mail

(e) Accounting year followed by JV/WOS

(f)

(III) Activity code of JV/WOS

(IV) Whether JV/WOS is SPV (Y/N)? #

# If Y, Please furnish the details in Section D

Proposed Capital Structure

[a] Indian Party (ies) % stake [b] Foreign partner(s) % stake

(1) (1)

(2) (2)

(3) (3)



Section C : Details of Investment in Existing Project

Indicate 13 digit Unique Identification Number issued by Reserve Bank

(I) Purpose of Supplementary Investment (Please tick appropriate category)

(a) Enhancement of Equity in existing JV/WOS overseas

(b) Enhancement of Preference Equity/Convertible Debt

(c) Grant/Enhancement of Loan in existing JV/WOS

(d) Extension/Enhancement of Guarantees

(e) Remittances to Unincorporated Entity

(e) Others

(II) Capital Structure

Section D : Funding for JV/WOS

(Amount in FCY 000's)

I. Full Value of the Overseas Acquisition

II. Estimated cost of overseas acquisition for the Indian Party

III. Financial commitment* (in applicable FCY) : FYC Amount

IV. Method of Investment by Indian Party

(i) Cash Remittance

(a) EEFC

(b) Market Purchase

(ii) Capitalization of

(a) Export of plant and machinery

(b) Others (please Specify)

(iii) ADRs/GDRs [raised overseas]

(iv) ECB/FCCB

(v) Swap of shares

(vi) Others (Please specify)

Total A [Indian Party]

[a] Indian Party (ies) % stake [b] Foreign partner(s) % stake

(1) (1)

(2) (2)

(3) (3)


V. Whether JV/WOS is SPV (Y/N)

(a) If Y, purpose of SPV :

(i) Full value of the overseas acquisition

(ii) Direct/Indirect infusion by SPV

(ii) Funds raised overseas with guarantee/counter guarantee from Indian party

(iii) Funds raised overseas without guarantee/counter guarantee from Indian Party

(iv) Funds contributed in the form of equity/preference equity/shareholder’s loans by foreign investors

(v) Securitisation

(vi) Any other mode (please specify)

Total B

VI. Guarantees/Other Non fund based Commitments

Note* : Financial Commitment as defined in FEMA 120/RB-2004 dated July 7, 2004 Sec. 2(f)-Financial Commitment meansamount of Direct Investment by way of contribution to equity, loan and 100 per cent of the amount of guaranteeissued by Indian Party to or on behalf of its overseas Joint Venture company or Wholly Owned Subsidiary.

Section E : Declaration by the Indian Party

I (a) Whether the applicant party(ies), its promoters, directors, etc., are under any investigations by any investigative/enforcementagency or regulatory body. If yes, the brief details thereof, including present stage of investigation/adjudication/manner of disposalof the case.

(b) Whether the promoter Indian party(ies) is(are) presently on Exporters' Caution List of Reserve Bank for non-realization of exportproceeds or on the list of defaulters to the Banking System circulated by Reserve Bank. If so, status of the Indian party (ies) :

(c) Any other information relevant to this proposal, including any special benefits/incentives available in the host country forsetting up/acquiring the proposed concern.

I/We hereby certify that the information furnished above are true and correct.

______________________________(Signature of authorised official)

Stamp/Seal

Place : __________________________

Date : __________________________

Name : __________________________

Designation : __________________________

List of enclosures :1. 4.2. 5.3. 6.




Section F : Certificate by the Statutory Auditors of the Indian Party

It is certified that the terms and conditions contained in Notification No. FEMA 120/RB-2004 dated July 7, 2004, as amended

from time to time (Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004) have been

complied with by the Indian party in respect of the investment under report. In particular, it is certified that :

(i) the investment is not in real estate oriented or banking business, and

(ii) the amount of foreign exchange proposed to be purchased for remittance towards the investment together with remittances

for all overseas investments already made and exports and other dues capitalized/swap of shares/investment from ECB/

FCCB balances for investment abroad under the Automatic Route is within the limit stipulated by the Reserve Bank from

time to time. This has been verified with reference to the net worth of the Indian party as on the date of last audited balance

sheet, i.e. ________________________ (date)

(iii) has complied with the valuation norms prescribed for the investment

(iv) has complied with the ECB guidelines#

(v) that the Indian party (a) has made net profits during the preceding three years from the financial services activity, (b) has

fulfilled the prudential norms of capital adequacy as prescribed by the regulatory authority in India; (c) has been registered

with the appropriate regulatory authority in India for conducting financial services activity and (d) has obtained approval

for the investment in financial services sector activities from the regulatory authorities concerned in India and abroad*.

Note : *Applicable only in cases where the investment is in the financial services sector (e.g. insurance, mutual fund, asset

management, etc.).

#Applicable where investment is funded through ECB/FCCB balances.

(Signature of the Statutory Auditor of the Company)

Name of the Firm, Stamp and Registration number

PART IIREPORTING OF REMITTANCES

For office use only

Date of Receipt ---------------------------------

Inward No. ---------------------------------

In case investment is in the existing JV/WOS, please indicate Unique Identification No. already allotted :

No.

(I) Name of Indian Company :

(II) Is there any change in Company name since last reporting? (Y/N)

If Yes, specify Old Company Name



DETAILS OF CURRENT REMITTANCES EFFECTED

(Amount in 000's of FCY)

Code of Reporting AD foreign currency**:

(a) From EEFC A/c.

Equity Loan Guarantee (Invoked) Date of Remittance

(b) By Market Purchases


(c) From the ADR/GDR funds


(d) By Swap of Shares

Equity Loan Guarantee (Invoked) Date of Swap

(e) From ECB/FCCB balances parked in India/outside India

Equity Loan Guarantee (Invoked) Date of Transaction

(g) Capitalization of Exports/Other dues@

Date of capitalization : Amount :

(h) Guarantee issued : Date Amount :

(Fresh/Existing Guarantee Period Extended)

Validity Period

Note : **Please indicate name of the foreign currency (FCY) as per SWIFT code.

@Please specify the other dues being capitalized viz., royalty, technical know-how fee, consultancy fees, etc.

We hereby confirm that the remittance (strike out whichever is not applicable)

(i) has been allowed under the Automatic Route based on the certification given by the Statutory Auditors confirmingcompliance with the prescribed terms and conditions by the Indian party;

(ii) is in accordance with the terms and conditions of the approval letter issued by the Reserve Bank ; and

(iii) in respect of the invoked guarantee remittance has been made after satisfying that the claim is in conformity with theterms and conditions of the guarantee issued to/on behalf of the JV/WOS abroad.

Place : _______________________

Date : _______________________ (Signature of authorised official of the bank)

Name : _______________________ Stamp/Seal

Designation : _______________________

Tel. No. : _______________________

Fax No. : _______________________



PART IIIANNUAL PERFORMANCE REPORT (APR)

(To be submitted certified by a Chartered Accountant through the designated AD Category – I bank every year within 3 monthsof the closing of annual accounts of the JV/WOS as long as the JV/WOS is in existence)

I. Date of APR : ____________________________________

II. Unique Identification Number :

(Please indicate 13 digit Unique Identification number issued by RBI)

III. Changes in capital structure since last reporting

Amount (new) % share (new)

Indian

Foreign

IV. Operational details of the JV/ WOS for the last two years (Amount in 000's FCY)

Previous Year Current Year

(i) Net Profit/(Loss)

(ii) Dividend

(iii) Net worth

V. Repatriation from the JV/WOS

Foreign exchange earnings from Joint Ventures (JV) and Wholly Owned Subsidiaries (WOS)

During the last year ended Since commencement of business

(i) Profit

(ii) Dividend

(iii) Retained Earnings*

(iv) Investments into India

(v) Others** (Please specify)

*(Represent part of the profits of the JV/WOS which is retained and reinvested in the JV/WOS).

** (Royalties, technical know-how fees, consultancy fees, etc.)

VI. Investment in step down subsidiaries since last reporting

Country

Name of JV/WOS

Amount of Investment

Place : _______________________

Date : _______________________ (Signature of authorised official)

Name : _______________________ Stamp/Seal

Designation : _______________________

(Signature of the Statutory Auditor of the Company)Name of the Firm, Stamp and Registration number

Signature of the Authorised Official of the bank :

Name : _______________________

Designation : _______________________



PART IV

Report on Closure/Disinvestment/Voluntary Liquidation/Winding Up of JV/WOS

To be submitted by the designated AD Category –I bank(All Amounts in FCY, in thousands)

Name and Address of the AD Category – I bank : ________________________________________________________

AD Code : _______________________________________________________________

Unique Identification Number allotted by the Reserve Bank

Whether APRs submitted regularly? (Y/N)

Date of submission and period to which last APR relates : _________________________________________________

Details of Investment

Equity Loan Guarantees Issued

Details of Remittances

Equity Loan Guarantees Invoked

Changes in the Capital Structure since the last APR

Equity Loan Guarantees Issued

Amount Repatriated on disinvestments

Equity Loan

It is certified that (Strike out whichever is not applicable)

I. (a) the sale is effected through a stock exchange where the shares of the overseas Joint Venture (JV) or Wholly OwnedSubsidiary (WOS) are listed;

(b) if the shares are not listed on the stock exchange, and the shares are disinvested by a private arrangement, the shareprice is not less than the value certified by a Chartered Accountant/Certified Public Accountant as the fair value of theshares based on the latest audited financial statements of the Joint Venture or Wholly Owned Subsidiary;

(c) The overseas concern has been in operation for at least one full year and the Annual Performance Report for that yearhas been submitted to the Reserve Bank;

(d) The Indian party is not under investigation by CBI/ED/SEBI/IRDA or any other regulatory authority in India.

Place : _______________________

Date : _______________________ (Signature of authorised official of the bank)

Name : _______________________ Stamp/Seal

Designation : _______________________

Tel. No. : _______________________

Fax No. : _______________________




RBI/2006-2007/434


Foreign Investments in Preference Shares – Revised Guidelines

1. Attention of Authorised Dealers is invited to the Foreign Exchange Management (Transfer or Issue of Security by a Person

Resident outside India) Regulations, 2000 notified vide Notification No. FEMA 20/2000-RB dated May 3, 2000 as amended

from time to time. In terms of Schedule 1 of the Notification, a person resident outside India can purchase equity/preference/

convertible preference shares and convertible debentures issued by an Indian company.

2. Government of India, Ministry of Finance vide Press Note dated April 30, 2007 (Annex), has notified the revised guidelines

for foreign investment in preference shares, which have come into effect from that date :

(a) Foreign investment coming as fully convertible preference shares would be treated as part of share capital. This

would be included in calculating foreign equity for purposes of sectoral caps on foreign equity, where such caps have

been prescribed.

(b) Foreign investment coming as any other type of preference shares (non- convertible, optionally convertible or

partially convertible) would be considered as debt and shall require conforming to ECB guidelines/ECB caps.

(c) Any foreign investment as non-convertible or optionally convertible or partially convertible preference shares as on

and up to April 30, 2007 would continue to be outside the sectoral cap till their current maturity.

(d) Issue of preference shares of any type would continue to conform to the guidelines of RBI/SEBI and other statutory

bodies and would be subject to all statutory requirements.

3. Accordingly, it is clarified that with effect from May 1, 2007, only preference shares which are fully and mandatorily convertible

into equity within a specified time would be reckoned as part of share capital and eligible to be issued to persons resident

outside India under the Foreign Direct Investment Scheme in terms of Regulation 5 (1) of Foreign Exchange Management

(Transfer and Issue of shares by a Person Resident outside India) Regulations, 2000 notified vide Notification No. FEMA 20/

2000-RB dated May 3, 2000.

4. Foreign investments in other types of preference shares (i.e. non-convertible, optionally convertible or partially convertible)

for issue of which, funds have been received on or after May 1, 2007 would be considered as debt and shall conform to

External Commercial Borrowings (ECB) guidelines/caps. Accordingly, all the norms applicable for ECBs, viz. eligible borrowers,

recognised lenders, amount and maturity, end use stipulations, etc. would apply. Since these instruments would be denominated

in rupees, the rupee interest rate will be based on the swap equivalent of LIBOR plus the spread as permissible for ECBs of

corresponding maturity.

5. It is further clarified that companies which have received funds from outside India for issue of partially/optionally convertible

or redeemable preference shares on or up to April 30, 2007 may issue such instruments. Further, the existing investments

in such preference shares which are not fully convertible may continue till their current maturity.

6. Necessary amendments to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside

India) Regulations, 2000 are being notified separately.


7. AD Category - I banks may bring the contents of the circular to the notice of their constituents concerned.

8. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange ManagementAct, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.



Annex

[A.P. (DIR Series) Circular No.73 dated 08.06.2007]


Department of Economic Affairs

Press Note - Guidelines for Foreign Investment in Preference Shares

In supersession of Press Note [F.No.17/3/97-NRJ] dated 31st July, 1997 containing the guidelines for Indian Companies for

mobilizing foreign investment through issue of preference shares for financial projects/industries, the following guidelines

are prescribed with immediate effect:

1. Foreign investment coming as fully convertible preference shares would be treated as part of share capital. This would be

included in calculating foreign equity for purposes of sectoral caps on foreign equity, where such caps have been prescribed.

2. Foreign investment coming as any other type of preference shares (non- convertible, optionally convertible or partially

convertible) would be considered as debt and shall require conforming to ECB guidelines/ECB caps.

Any foreign investment as non-convertible or optionally convertible or partially convertible preference shares as on and up

to today (30/4/2007) would continue to be outside the sectoral cap till their current maturity.

Issue of preference shares of any type would continue to conform to the guidelines of RBI/SEBI and other statutory bodies

and would be subject to all statutory requirements.

Department of Economic Affairs, Ministry of Finance New Delhi: Vaisakha 10, 1929; April 30, 2007.




RBI/2006-2007/435


Foreign Investments in Debentures – Revised Guidelines

1. Attention of Authorised Dealers is invited to the Foreign Exchange Management (Transfer or Issue of Security by a Person

Resident outside India) Regulations, 2000 notified vide Notification No. FEMA 20 /2000-RB dated May 3, 2000 as amended

from time to time. In terms of Schedule 1 of the notification, a person resident outside India can purchase equity/preference/

convertible preference shares and convertible debentures issued by an Indian company.

2. It has been noticed that some Indian companies are raising funds under the FDI route through issue of hybrid instruments

such as optionally convertible/ partially convertible debentures which are intrinsically debt-like instruments. Routing of debt

flows through the FDI route circumvents the framework in place for regulating debt flows into the country. It is clarified that

henceforth, only instruments which are fully and mandatorily convertible into equity, within a specified time would be

reckoned as part of equity under the FDI Policy and eligible to be issued to persons resident outside India under the Foreign

Direct Investment Scheme in terms of Regulation 5 (1) of Foreign Exchange Management (Transfer and Issue of shares by

a Person Resident outside India) Regulations, 2000 notified vide Notification No. FEMA 20/2000-RB dated May 3, 2000.

3. FIIs, registered with SEBI, would be eligible to invest as hitherto in listed non-convertible debentures/bonds issued by

Indian companies in terms of RBI/SEBI norms on investment in rupee debt instruments, including the ceilings prescribed

from time to time.

4. It is further clarified that companies which have already received funds from outside India for issue of partially/optionally

convertible instruments on or before June 7, 2007 may issue such instruments. Further, the existing investments in instruments

which are not fully and mandatorily convertible into equity may continue till their current maturity.

5. Necessary amendments to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident

outside India) Regulations, 2000 are being notified separately.

6. AD Category - I banks may bring the contents of the circular to the notice of their constituents concerned.

7. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange

Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.

Sd/-

(SALIM GANGADHARAN)




Ministry of Finance(Department of Economic Affairs)(Exchange Management Section)

Reserve Bank of IndiaForeign Exchange Department

Central Office, Mumbai

Notification No. FEMA 152/2007-RBDated 15th May, 2007

Foreign Exchange Management (Remittance of Assets) (Amendment) Regulations, 2007

In exercise of the powers conferred by Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the

Reserve Bank of India hereby makes the following amendments in the Foreign Exchange Management (Remittance of

Assets) Regulations, 2000 (Notification No. FEMA. 13/2000-RB dated 3rd May, 2000), namely :-

1. Short Title and Commencement.- (i) These Regulations may be called the Foreign Exchange Management

(Remittance of Assets) (Amendment) Regulations, 2007.

(ii) They shall come into force with effect from November 16, 2006. @

2. Amendment to the Regulations.-In the Foreign Exchange Management (Remittance of Assets) Regulations, 2000

A. In Regulation 4,

(a) in sub-regulation 2, in clause (iii),

(i) for the word ‘calendar’, the word ‘financial’ shall be substituted.

(ii) sub-clause (b) shall be substituted by the following sub-clause, namely, :

“an undertaking by the remitter and certificate from a Chartered Accountant in the format prescribed by the

Central Board of Direct Taxes, Ministry of Finance, Government of India in their Circular No. 10/2002 dated

October 9, 2002.”

(b) in sub-regulation (3),

(i) for the word ‘calendar’, the world ‘financial’ shall be substituted.

(ii) in clause (i) sub-clause (b) shall be substituted by the following new sub-clause, namely, :



October 9, 2002.”

(iii) in clause (ii), sub-clause (b) shall be substituted by the following sub-clause, namely, :



October 9, 2002.”

(iv) the first proviso shall be omitted.

(v) in the second proviso, the word ‘further’ shall be omitted.



B. In Regulation 6, in Sub-regulation 1,

(a) in clause (i), for word ‘calendar’, the word ‘financial’ shall be substituted.

Sd/-

(SALIM GANGADHARAN)


@Certified that no person shall be adversely affected by the retrospective effect given to sub Regulations.

Foot Note : The Principal Regulations were published in the Official Gazette vide No. G. S. R. 396(E) dated May 5,

2000 in Part II, Section 3, Sub-Section (i) and subsequently amended vide.

No. G. S. R. 576(E) dated 19-8-2002,

No. G. S. R. 630(E) dated 4-8-2003,

No. G. S. R. 699(E) dated 1-9-2003 and

No. G. S. R. 493(E) dated 4-8-2004


OFFICE BEARERSOF THE COUNCILCHAIRMAN

Rakesh Shah

Phone: Off : 91-33-22872511/22876640/

22874447/22804929

Res: 91-33-24071637/1638/24689706

Fax : Off : 91-33-22875104/22870780

Res: 91-33-24456925


[email protected]

VICE CHAIRMEN

Mahesh K. Desai

Phone: Off : 91-40-27617098/27615131

Res: 91-40-27765793

Fax : 91-40-27614376


Amanpreet Singh Chadha

Phone: Off : 91-22-66355155/56/57

Res: 91-22-23516865

Fax : 91-22-23854428


REGIONAL CHAIRMEN

Eastern Region

R. P. Sehgal

Phone: Off : 91-33-22878229/22902256

Res: 91-33-22407094

Fax : 91-33-22879938


Northern Region

S. C. Ralhan

Phone: Off : 91-161-2673805/806/2670219

Res: 91-161-2670129/2672542

Fax : 91-161-2671049/2676817


Southern Region

B. Chandrasekharan

Phone: Off : 91-80-26570711/12

91-80-26570718 (D)

Res: 91-80-26764665

Fax : 91-80-26570713/14


[email protected]

Western Region

Nayan N. Shah

Phone: Off : 91-22-65702939/26763555

Res: 91-22-26207506

Fax : 91-22-28730291


EEPC OFFICES IN INDIAAND ABROADR. MaitraExecutive DirectorEngineering Export Promotion CouncilVandhna (4th Floor), 11 Tolstoy MargNew Delhi 110 001Tel. : 91-11-23353353, 23711124/25Fax : 91-11-23310920E-mail : [email protected] : www.eepcindia.org

HEAD OFFICEB. SarkarAddl. Executive Director & SecretaryEngineering Export Promotion CouncilVanijya Bhavan (1st Floor)International Trade Facilitation Centre1/1 Wood StreetKolkata 700 016Tel. : 91-33-22890651/52Fax : 91-33-22890654E-mail : [email protected] : www.eepcindia.org

TERRITORIAL DIVISIONVandhna (4th Floor)11 Tolstoy MargNew Delhi 110 001Tel. : 91-11-23353353, 23711124/25Fax : 91-11-23310920E-mail : [email protected]

REGIONAL OFFICESChennaiM. GanesanRegional DirectorGreams Dugar (3rd Floor)149 Greams RoadChennai 600 006Tel. : 91-44-28295501, 28295502Fax : 91-44-28290495E-mail : [email protected]

KolkataMs. Anima PandeyRegional DirectorVanijya Bhavan (2nd Floor)International Trade Facilitation Centre1/1, Wood StreetKolkata 700 016Tel. : 91-33-22890673/74Fax : 91-33-22890687E-mail : [email protected]

MumbaiRajat SrivastavaRegional DirectorCentre 1, 12th FloorWorld Trade CentreCuffe Parade, Mumbai 400 005Tel. : 91-22-22186655/56/60Fax : 91-22-22180119E-mail : [email protected] [email protected]

New DelhiShrikar DoleRegional DirectorSurya Kiran (4th Floor)19 Kasturba Gandhi MargNew Delhi 110 001Tel. : 91-11-23314171/74Fax : 91-11-23317795E-mail : [email protected]

SUB-REGIONAL OFFICESBangaloreC. H. NadigerAsst. DirectorVinayaka Complex (2nd Floor)44/45, Residency Road CrossBangalore 560 025Tel. : 91-80-25581396/25588669Fax : 91-80-25586914E-mail : [email protected]

HyderabadJ. V. Raja Gopal RaoAsst. Director‘Soham Mansion’ (1st Floor)No. 5-4-187/3 & 4/4, M. G. RoadSecunderabad 500 003Tel. : 91-40-27536704Telefax : 91-40-27536705E-mail : [email protected]

JalandharOpinder SinghAsst. DirectorPlot Comm. 1, Focal PointJalandhar 144004Tel. : 91-181-2602264Fax : 91-181-2601124E-mail : [email protected]

[email protected]

FOREIGN OFFICESSingaporeD. D. Roy, Resident DirectorNo. 3, Shenton Way#07-02 Shenton HouseSingapore 068805Tel. : 65-62279282/83Fax : 65-62279284E-mail : [email protected]

South AfricaM. K. Sharma, Resident DirectorThebe House (1st Floor)166, Jan Smuts, RosebankJohannesburg-2196South AfricaTel. : 27-11-8802973Fax : 27-11-2374000E-mail : [email protected]

U.S.A.Rana Roy, Resident DirectorIndia Engineering Center1601 Feehanville Drive, Suite # 200Kensington Business CenterMount Prospect, IL, 60056, USATel. : 1-847-297-8500 (2 lines)Fax : 1-847-297-8502E-mail : [email protected]

Published by Shri R. Maitra, Executive Director, Engineering Export Promotion CouncilVanijya Bhavan (1st Floor), ITFC, 1/1 Wood Street, Kolkata 700 016

Editor : Shri R. Maitra

18th june, 2007 - eepc india6 engineering export info-bulletin, vol. 9, issue no. 25 overseas...

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