ANNEXURE-27 [c.f.Para-11.

21(A)(ii)] IMPORTED STORES Special clauses to be incorporated in the contracts for imported stores are given below:(I) CLAUSE TO BE STIPULATED UNDER THE SPECIAL CONDITIONS OF F.O.B./F.A.S. CONTRACTS PLACED WITH THE INDIAN AGENTS. The prices stipulated under this contract are your principals/manufacturers net F.O.B./F.A.S. Price exclusive of profit, commission etc. Your agency commission*. has been converted into Indian rupees at the T.T. buying rate of exchange of Rs.100..**.. ruling on the date of placement of this contract and as quoted by the State Bank of India. The amount of Commission so calculated will be paid in India in Indian Rupees as per the Payment terms of this contract and will not be subject to any exchange variation. OR (II) CLAUSE TO BE STIPULATED IN CONTRACT PLACED WITH THE PRINCIPALS/MANUFACTURERS ABROAD. Please note that this contract has been placed with you on the clear understanding. (a) That the F.O.B./F.A.S. Prices to be remitted to you in foreign currency in terms of this contract are net and do not include your Indian Agents Commission/remuneration payable in India in Indian currency, and (b) That the purchaser will indemnify the suppliers against payment of such commission/remuneration or a portion thereof to the Indian Agents in rupees in India in respect of this contract, where the Indian Agent-s Commission/remuneration covers a part of the price quoted by you and stipulated under this contract. Your Indian Agents Commission of *. Has been converted into Indian rupees at the T.T. buying rate of exchange of Rs.100/- ** ruling on the date of placement of this contract and as quoted by the State Bank of India. The amount of commission so calculated will be paid to your agents in India in Indian rupees as per the payment terms of this contract and will not be subject to any exchange variation. * To be indicated in foreign currency.

** T.T. Buying Rate should be ascertained from SBI (Exchange Branch) and indicated.

(III) EXCHANGE VARIATION CLAUSE TO BE STIPULATED IN THE CONTRACT: 1. The prices are based on the rate of exchange of Rs.100/- equal to .. according to the TT Selling Rate of Exchange as quoted by authorized Exchange Banking approved by the Reserve Bank of India and ruling on (The date of firm-s tender is to be inserted here). 2. In the case of a variation by more than 1% up or down between the base date and the date of remittance to foreign principals, the contract prices (limited only to that portion of the F.O.R. prices that are required to be remitted according to the contractual terms to the firms foreign principals in foreign currency will be subject to adjustment (up or down) in accordance with the TT Selling Rate of Exchange, as quoted by any authorized Exchange Banker ruling on the date payment is made by the firm to their principals abroad which should not be beyond two weeks from the date on which initial payment is made by the Purchaser to the contractor. No variation in prices will be allowed if the variation in the rate of exchange remains within the limit of 1% plus minus. 3. Any increase or decrease in the Customs Duty by reason of the variation in the rate of exchange will be to the buyers account. 4. No other charges will be effected by the change in the rate of exchange.

N.B. NOTE FOR THE PURCHASE OFFICERS : Before inserting here the TT Selling Rate of Exchange in the contract the Purchase Officer should verify the correctness of the rate from the State Bank of India, Exchange Control Branch. (IV) CUSTOMS DUTY CLAUSE

(i) For imported stores offered against forward delivery customs duty as actually paid will be reimbursed to you on production of necessary evidence of payment of the same to customs authorities, i.e. (i) the triplicate copy of the bill of Entry, (ii) copy of bill of lading and (iii) a copy of the principals invoice. If, however, the contracted stores have been imported against your own commercial quota Import Licence, you shall also submit in addition to the triplicate copy of bill of Entry etc., a certificate from your firms Internal Auditor on the bill itself to the effect that the following item(s)/quantities in the bill of Entry relate to the stores imported against DGS&D contract number

(ii) Subsequent to the reimbursement of customs duty you shall submit to the concerned Controller of Accounts. (a) a certificate from your, statutory Auditor after the annual audit of your firms accounts to the effect that in respect of the stores supplied against this particular contract (indicate the contract number and date) you have NOT obtained any refund of the customs duty subsequent to the payment of duty to Customs Authorities by you, and (b) a certificate from your firms Director/ Manager/ Proprietor/ Accountant immediately after a period of three months from the date of payment of the duty to Customs Authorities for any refund of the Customs Duty subsequent to the payment of duty to Customs Authorities by you. (iii) In case you obtain any refund of customs duty subsequent to the payment of the same by you to the Customs Authorities and reimbursement of the same to you by the Controller of Accounts, you will forthwith furnish details of such refunds obtained and afford full credit of the same to the Purchaser. INSTRUCTIONS TO THE PURCHASE OFFICERS. The purchase officers should please note that: (a) the rate/amount of customs duty stipulated in firms tender need not be indicated in the contract in view of the; above provisions for reimbursement of customs duty to the supplier. (b) The price of the stores stipulated in the contract should be exclusive of the customs duty, since the above clause envisages reimbursement of customs duty at actually as a separate item on production of triplicate copy of the bill of entry etc. (VIII) MARINE INSURANCE In respect of imported stores the requirement of transit insurance will be as per following guidelines:Ordinarily Government goods are not insured as a matter of policy. However, where the indentor desires insurance of the cargo as a special case, he should obtain an open/general policy with the General Insurance Corporation of India and indicate the particulars of the policy, nature of coverage required, in the Indent for incorporation in the contract. In the absence of such particulars, no insurance would be arranged. (ii) Designation and address of the Intermediate or the Port Consignee.

(iii) The manner in which it is desired that the ocean bills of lading should be drawn (instructions regarding Clearing Agents).

(iv)

Mode of financing (Loan number etc.) and flag requirements, if any.

EXPLANATION AS REGARDS INSURANCE OF IMPORTED STORES As per the instructions issued by the Ministry of Surface Transport that while the responsibility for arranging shipment through freight forwarders is that of that Ministry the responsibility for arranging insurance of imported stores is that of the indentors who are expected to take out individual cover or open cover with the General Insurance Corporation of India or other approved funds and arrange to indicate, in their indents, whether they had made arrangements for insurance, and if so, give necessary particulars regarding policy number, name of the insurance company, fund etc. These particulars furnished by the indentors in their indents are reproduced/ incorporated in the resultant contract for information and further necessary action by the forwarding agents. The forwarding agents would then, on the basis of the particulars given in the contract, declare the shipments to the insurer as and when the shipments are made. It is, however, for the indentor to get the details of insurance certificate premium etc. from the insurer whether for customs purposes or for any other purpose. Besides, the indentor/consignee is also responsible for keeping the GIC posted with particulars such as the name of the vessel, bill of lading number etc. immediately on receipts of shipping documents and for payment of premium to GIC promptly on demand.