Import Assistance Scheme 

MSSIDC shall pool the requirement of individual unit and negotiate with foreign suppliers for getting competitive rates and attractive commercial terms on the basis of combined bulk quantity to be imported under the aegis of MSSIDC. The salient features of the scheme are as under 

  1. Unit shall give firm indent-cum-undertaking, indicating the details of raw material required and acceptance of the terms and conditions of the MSSIDC Import Assistance Scheme

  2. On receipt of such undertaking, MSSIDC shall invite the offers from foreign suppliers. The best competitive offer shall be finalized by MSSIDC in consultation with the concerned units

  3. Unit shall furnish margin money equivalent to 20% of CIF cost of the consignment to be imported. Margin money shall not be accepted in the form of BG

  4. MSSIDC shall open L/C on the foreign suppliers. LC shall be normally opened by MSSIDC stipulating shipment period not in excess of 90 days from the date of establishment of the LC. Period of shipments in excess of 90 days from the date of establishment of LC will normally not be considered except where the units specify their preference for such a supplier in which case same shall be considered only upon payment of additional service charges as may be mutually agreed to.

  5. In case where license is required for importing the goods, same shall be provided by unit at its own cost. The Unit shall also arrange to duly transfer the license to MSSIDC and/or a letter of authority shall be provided by the unit in favour of MSSIDC to enable the MSSIDC to establish the LC. Only transferable licenses duly transformed in favour of MSSIDC shall be accepted.

  6. Gain / Loss due to “Foreign Exchange” rate fluctuations shall be borne by the units. On the specific request of the unit, foreign exchange fluctuations shall be suitably covered at the cost of the unit, if possible.

  7. Transit risk / losses, handling shortage/losses, breakage, if any shall be borne by the unit. MSSIDC, however, shall cover the consignment through comprehensive insurance policy at the cost of the unit. The insurance policy shall show MSSIDC as beneficiary amd MSSIDC shall reimburse the unit to the extent of insurance claim realized. No claim on this account shall lie against MSSIDC regardless of the realization from the insurance agency.

  8. MSSIDC shall only finance L/C amount and customs duty payble if required by the unit. All other charges including clearing & Forwarding, local insurance, warehousing charges, bank charges, local taxes etc shall be borne by the unit.

  9. On arrival of the imported consignment, unit shall not refuse to accept the same on grounds of quality, specifications and / or other reasons whatsoever and unit shall promptly accept the same. However it shall be open to the unit to stipulate pre-dispatch inspection by appropriate third party inspecting agency at unit’s cost to ensure that the goods as indented are shipped by foreign supplier.

  10. The imported consignment on arrival at “ High Sea” shall be sold to the unit by endorsement of documents. The consignment shall be thereafter cleared jointly on behalf of the unit and MSSIDC by clearing agent on the approved panel of MSSIDC. The clearing agent shall have an irrevocable instructions to clear the goods from the port and handover the same to MSSIDC and MSSIDC in  turn shall keep the same under its pledge account so that no point the goods are beyond the physical control of MSSIDC. The unit shall produce clearance certificate for CHA charges before taking delivery of goods.

  11.  

a)      It shall be open to the unit to ask MSSIDC to store the material in BPT or other custom approved bonded warehouse in which case warehousing charges shall be borne by the unit at actuals alongwith custom duty and other charges

b)     The imported consignment shall be stored in MSSIDC godown subject to availability and payment of additional margin equivalent to 10% of custom duty amount. In such cases, custom duty shall be initially paid by MSSIDC on behalf of the unit and same shall be recovered from the unit alongwith other charges against delivery of material. No warehousing charges shall be leived for the first 45 days and thereafter unit shall pay warehousing charges to MSSIDC as per BPT or CWC tariff, whichever is higher and as applicable to the period beyond 45 days.

  1. Material shall  be delivered to the unit in lots as per its convenience against payment or BG

  2. Entire material shall be lifted by the units in lots at different intervals within the maximum period of 45 days from the date of clearance of the goods from the port or before one month in advance of the presentation of the union budget to parliament (i.e. 31st January in the normal course) whichever is earlier. Extension beyond 45 days shall be granted to the units subject to the following conditions:

a)      Unit shall make the payment towards custom duty to MSSIDC before expiry of first 45 days or one month in advance of the budget whichever is earlier

b)     In cases where material is stored in custom approved bonded warehouse, the amount so received shall be treated as a deposit towards the payment of custom duty. The interest earned on such deposit as per the prevailing SBI rate for the corresponding period shall be adjusted against the outstanding amount due from the unit.

c)      In cases where material is stored in MSSIDC godown (with payment of custom duty), no such interest shall be payable to the unit.

d)     Unit shall pay godown rent equivalent to BPT / CWC bonded warehouse charges applicable to the period beyond 45 days in case material is stored in MSSIDC godown.

  1. In case of failure to lift the material and / or comply with the conditions as aforesaid , material shall be disposed of by MSSIDC at risk and cost of the unit. Shortfall if any upon such an eventually shall be made good by the unit.

  1. Unit shall pay service charges to MSSIDC as under:

Storage Place

Service Charges

Where imported material is stored in MSSIDC godown

3% of the landed cost of the imported consignment (Only in case duty is paid by MSSIDC)

Where imported material is stored in BPT or custom bonded wherehouse

2.5% of the CIF value of imported consignment

  1. Foreign Suppliers Credit

MSSIDC shall strive to secure credit from foreign suppliers ranging between 90 to 180 days at the interest rate prevailing in the international market. The credit period so secured shall be extended to the concerened units by MSSIDC subject to unit giving Bank Guarantee / Local LC to MSSIDC. Bank Guarantee / LC shall be released to the unit duly discharged only after clearance of outstanding amount by the unit on due dates.

Alternatively

Material shall be given to the unit prior to maturity of the bill against payment equivalent to landed cost of goods to be delivered by way of deposit to MSSIDC. In such cases, MSSIDC shall pay interest equivalent to prevailing SBI rate that may have been obtained by the depositor for the corresponding period and the amount of deposit shall be adjusted against the outstanding amount due from the unit towards the landed cost of the goods.

  1. The landed cost of the material shall be worked out as under

1.      In cases where supplier’s credit is involved :

L/C amount + duty + bank charges + incidental charges at actual + interest at 19% on duty amount + Bank and other charges if any paid by MSSIDC and for the period for which credit is availed by the unit. In such cases, MSSIDC shall pay interest on the margin money received from the unit equivalent to prevailing SBI rate that may have been obtained by the depositor for the corresponding period and the margin money alongwith interest accured shall be adjusted against the outstanding amount due from the unit towards the landed cost of the goods

2.      Where supplier’s credit is not involved:

80% of the L/C amount (after adjustment of margin money) + duty + bank and other charges if any at actuals + interest at 19% on 80% L/C amount + duty + bank and other charges paid by MSSIDC and for the period for which credit is availed.

  1. It is expressedly understood and agreed by the units availing MSSIDC’s Import assistance Scheme that MSSIDC shall have first charge / lien on the goods imported under the scheme for its entire financial exposure. This charge / lien shall come to an end only upon complete clearance of MSSIDC dues. It is also expressedly agreed that MSSIDC shall have the absolute right without recourse to the unit to dispose of the material at the cost and risk of the unit in satisfaction of its claims. Shortfall, if any, arising upon such distress sale by MSSIDC shall be forthwith made good by the unit. It is further expressedly agreed that any fresh conditions that may be made applicable to the import policy by the Govt. / Banks / and such other authorities, shall be automatically made applicable to the unit availing of the scheme without any prior notice.

  2. Rights Reserved:

MSSIDC reserves the right to alter / modify / suspend / cancel the scheme without assigning any reason.