PPT_Global Tender to know the key insights

Global Tender

1. Global Tender and Contracts A.K.Mohanty GM (MM) – HOD Coal India Limited

2. Types of Tenders Domestic Tender Global Tender

3. When to issue Global Tender Enquiry (GTE) When goods/services of the required quality, specifications, etc., may not be available in the country Competitive offers from abroad are also solicited

4. GTE – Restrictions in Public Procurement As per OM no. F.12/17/2019-PPD dated 15.05.2020 of DoE, GoI no GTE shall be invited for tenders upto Rs. 200 Crores without prior approval of Secretary (Coordination), Cabinet Secretariat, GoI. In certain cases like specialized equipment and their Spares and Consumables required for Educational and research Institutes, the Approving Authority for giving approval for GTE has been delegated to Secretary of the concerned Ministry. All Ministries/Departments are requested to forward their proposals along with duly filled format for relaxation under above rule.

5. There are three additional guidelines which a procuring entity has to comply with before applying for GTE relaxation: Domestic Tenders must be floated to identify the domestic manufacturers/service providers for the items /services for which approval is being sought for issuance of Global Tenders. The proposal must contain the deliberations with DPIIT/ relevant industrial bodies for identification of domestic manufacturers/ service providers. The 3/5 year procurement plan as mandated by public procurement (Preference to Make in India) (PPP-MII) Order issued by DPIIT must be published on website, before forwarding proposals for the purpose of procurement through GTE.

6. In case of procurement of spare parts from OEM/OES/OPM, the restriction of seeking prior approval for issue of GTE will not be applicable. DoE has circulated a list of items required for safe operations of Plant & Machinery and Planned capacity building in Oil & Gas PSUs. Any of the item falling under the said list required by any other PSU can be procured through GTE after obtaining approval of Secretary of the concerned Ministry.

7. As per OM no. F.No.6/18/2019-PPD dated 23 rd July 2020 of DoE, any bidder from a country which shares a land border with India will be eligible to bid any procurement whether of goods, services (including consultancy services and non-consultancy services) or works (including turnkey projects) only if the bidder is registered with Competent Authority, which is DPIIT. Subsequently vide OM no. F.18/37/2020-PPD dated 8 th February, 2020 of DoE, it has clarified that: a. A bidder is permitted to procure raw material, components, sub-assemblies etc. from the vendors from countries which shares a land border with India. Such vendors will not be required to be registered with the Competent Authority, as it is not regarded as “Sub-Contracting”. b. However, in case a bidder has proposed to supply finished goods procured directly/indirectly from the vendors from the countries sharing land border with India, such vendor will be required to be registered with the Competent Authority.

8. Once a decision has been taken to float a Global Tender, in addition to normal publication in e-Procurement portal, CPPP and Websites of the Company, notice of the tender has to be sent to the Indian Embassies situated abroad and Foreign Consulate Generals situated in India. Minimum time for submission of bids should be 30 days from the date of publication of the tender on the e-procurement portal.

9. INCOTERMS International Chamber of Commerce, P aris has evolved certain commercial terms over a period of time which are widely accepted World Wide for Global Trade. These terms are called International Commercial Terms (INCOTERMS ). The examples of these terms are FOB , CFR, CIF, CIP, DDP etc. INCOTERMS are used worldwide for interpretation about the duties, obligations, risk and cost etc. of the buyer and the seller for delivery of the goods from seller’s country to buyer’s country. The latest version of INCOTERMS is 2020 These terms are recognized by the United Nations Commission on International Trade Law(UNCITRAL) as the global standard for such interpretation. Irrespective of the INCOTERMS, the responsibility of making payment towards Customs Duty lies with the Purchaser except DDP INCOTERM.

10. Terms of Delivery Date of Delivery For Import Orders FCA (FCA stands for Free Carrier) The date on which the supplier delivers the goods to buyer’s carrier. This date is reflected in the Bill of Lading/ Air Way Bill. This term though can be used for any mode of transport but is normally used for Air Consignments. FOB, Port of Shipment (FOB stands for Free on Board) The date on which the supplier delivers the goods on vessel’s board at the specified port of shipment. This date is reflected in the Bill of Lading. CFR, Port of Destination (CFR stands for Cost and Freight) The date on which the goods arrive at the destination port. CIF, Port of Destination (CIF stands for Cost, Insurance and Freight) The date on which the goods arrive at the destination port. CIP, Named place of Destination (CIP stands for Carriage and Insurance paid to) The date on which the delivery is effected at the Named place of destination mentioned in the contract. L inkage between INCOTERMS & Date of Delivery Delivery dates in respect of contracts incorporating standard and commonly used INCOTERMS are as follows:

11. In Coal India Limited, large capacity HEMM are imported on CIP basis. In Import orders on CIP basis, tasks related to Customs clearance from the Port of Arrival and subsequent dispatch to the destination(s) is carried out by the supplier on behalf of the purchaser. However, Customs Duty is paid by the Purchaser based on the certain documents like checklist for draft Bill of Entry etc. prepared by the Customs House Agent (CHA) engaged by the supplier

12. For the contracts concluded for importation of materials directly from abroad, payment to overseas manufacturers shall normally be made through Letter of Credit. Payment against LC/direct remittance is to be allowed against proof of dispatch and other import documents For procurement of imported materials in rupee payment from any Indian suppliers, payment terms applicable for procurement of indigenous materials shall be stipulated. However, necessary documents for authenticity and genuineness of supply of imported materials shall have to be obtained from the supplying firm. Payments

13. In Global Tenders, apart from the normal stipulations regarding eligibility, Provenness, delivery etc., the aspects related to INCOTERMS and Payment terms through Letter of Credit are to be clearly stipulated for the purpose of evaluation of bids and smooth execution of the resultant Contracts.

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