TMI BlogMOUs between Govt. and Car ManufacturersX X X X Extracts X X X X X X X X Extracts X X X X ..... nture Motor Vehicle manufacturer companies under Memorandum of Understanding to be signed by them with the Government of India. These parameters have now been reviewed in the light of the changed circumstances and joint venture motor vehicle manufacturing companies (both existing and new) are required now to sign a fresh MOU with the Government of India as per the revised parameters. 2. Pursuant to the above, import of components for motor vehicle in ckd/ skd form, which is restricted for import under the current Export-Import Policy, shall be allowed for importation against a licence and such a licence will be issued only to joint venture automobile manufacturing companies on the basis of an MOU to be signed by these companies. Thus, all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commence from the third year of commencement of production. The date of commencement of production would be deemed to be the date of the first release of consignment from factory after payment of excise duty, but there would be a moratorium of two years from this particular date of commencement of production during which the firm need not fulfil any export commitment. However, from the third year onwards (effective from date of release of first consignment), the MOU signing firm would have an export obligation equivalent to the cif value of imports made by them till that time for the reminder of the MOU period till they complete the entire export obligation. From 4th year onwards the value of imports of CKD/SKD may be regulated with refere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile No. IPC/4/5(593)/92-97) MEMORANDUM OF UNDERSTANDING (MOU) I. This MOU has been made on _____________ day of 1997/1998 BETWEEN Government of India acting through the Director General of Foreign Trade (hereinafter referred to as the D.G.F.T.) Udyog Bhawan, New Delhi. AND M/s. ____________________________________________ (hereinafter referred to as the party which expression shall be deemed to include their executors, successors, administrator and assignee). II. Whereas the party has sought issue of an import licence to cover import of CKD/SKD parts for manufacture of cars. III. And whereas the party shall do the following by way of implementation of the Joint Venture: (i) That the party shall make an investment of As. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to achieve the following levels of indigenisation of their product, year-wise: Year Percentage(%) of indigenisation The party shall aggressively pursue and achieve as soon as possible the development of the local supply base and increased local content, since the same will allow a higher level of indigenisation. (v) that the party intends to import the following number of kits with CIF value as indicated in the first five years: Year No. of kits CIF Value (Rs. in crores (US $ in Millions)) (vi) that the party shall achieve a bro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IV. To monitor the progress in respect of the elements stipulated above the party shall submit annual reports to the DGFT on the parameters outlined above and further licences will be issue to the party on the basis of an annual report of the progress made in relation to these parameters. V. The MOU Scheme would be enforced through the import 1icensing mechanism and MOU signing firms would be granted import licences by DGFT based on the progress made in respect of the parameters mentioned at para III above. ( ) ( ) Managing Director Director General of Foreign Trade On behalf of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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