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Para 4.3.1 - Global Tenders | KartavyaDesk

Goods Manual

Original Rule Text

4. GTE tender documents must be in English and must contain technical specifications that are in accordance with national requirements or else based on an international trade standard. (Please refer to para 2.2.1-4) 5. In Global Tender Enquiry, e-procurement may not be mandatorily insisted upon. 6. The due date fixed for the opening of the tender shall be a minimum of four weeks from the date of advertisement, which may vary considering the nature of the material called for and the time required to prepare the bids. The due date may be subsequently extended with the approval of the CA to promote better competition and also considering the delivery requirement. 7. Relevant INCOTERMS (presently 2020 version) should be included in the tender. 8. Currency of Bidding: In GTE (Global Tender Enquiry), foreign bidders have the flexibility to quote prices and receive payments in either Indian Rupees or freely convertible currencies such as US Dollars, Euros, Pound Sterling, Yen, other relevant currencies58, or a combination thereof. However, prices for goods works, or services (including Agency Commission) performed or sourced in India must be quoted and paid for in Indian Rupees. Indian bidders are required to quote in INR only. During the evaluation, all quoted prices are converted into Indian Rupees as per the procedure mentioned in para 7.5.2-1. 9. Agency Commission: The amount of Agency Commission (normally not exceeding five per cent) payable to the Indian Agent (who shall provide self-attested documentary evidence about their identity and business details to establish that they are a bonafide business and conform to regulations) should not be more than what is specified in the Agency agreement (a certified copy should be submitted along with the financial bid) between the bidder and the Indian Agent. Agency commission shall be paid by the Procuring Entity in India in equivalent Indian Rupees on satisfactory completion of the Project or supplies of Goods and Spares. The Indian Agent will be required to submit a certificate along with their Agency Commission bill, confirming that the amount claimed as Agency Commission in the bill has been spent/will be spent strictly to render services to the foreign Principal, in terms of the Agency Agreement. The Procuring Entity or their authorized agencies and/or any other authority of the Government of India shall have rights to examine the books of the Indian Agent, and defects or misrepresentations in respect of the afore-indicated confirmation coming to light during such examinations will make the foreign Principal (i.e. the Contractor) and their Indian Agent liable to be debarred from having business dealings with the Purchaser, following laid down procedures for such debarment of business dealings.

What This Means

Para 4.3.1 of the Manual for Procurement of Goods, 2017, outlines specific guidelines for Global Tender Enquiries (GTEs). This rule ensures fairness, transparency, and efficiency when the government seeks goods from international suppliers. It covers aspects like language requirements for tender documents, the use of e-procurement, timelines for tender opening, the inclusion of INCOTERMS, currency of bidding, and the handling of agency commissions. It's crucial for government departments involved in international procurement to follow these guidelines to ensure compliance and obtain the best value for public funds.

Essentially, this rule aims to standardize the process of inviting bids from global vendors. It sets clear expectations regarding the format and content of tender documents, payment methods, and the role of Indian agents. By adhering to these guidelines, government agencies can promote healthy competition, avoid potential disputes, and ensure that procurement processes are conducted ethically and in accordance with established international trade practices. This ultimately benefits the government and the public by securing quality goods at competitive prices.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •GTE tender documents must be in English and adhere to national or international technical standards.
  • •E-procurement is not mandatory for GTEs.
  • •The tender opening date must be at least four weeks from the advertisement date.
  • •Foreign bidders can quote and receive payments in Indian Rupees or freely convertible currencies.
  • •Agency commission payable to Indian agents should not exceed the amount specified in the agency agreement and is paid in INR upon satisfactory completion.

Practical Example

The Ministry of Defence needs to procure advanced radar systems and decides to issue a Global Tender Enquiry. Following Para 4.3.1, the tender documents are prepared in English, detailing the required technical specifications based on international standards. The tender advertisement specifies a minimum of four weeks for bidders to prepare their proposals. Several international companies, including 'GlobalTech Solutions' from the USA and 'EuroDefense Systems' from France, submit their bids. GlobalTech Solutions quotes in US Dollars, while EuroDefense Systems quotes in Euros. An Indian agent, 'Bharat Agencies,' assists EuroDefense Systems. The agency agreement specifies a 3% commission. Upon successful completion of the project, Bharat Agencies receives the commission in Indian Rupees, after submitting the required certificate confirming the commission was used for services rendered to EuroDefense Systems. The Ministry ensures all prices are converted to INR for evaluation as per the manual.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

Is e-procurement mandatory for Global Tender Enquiries?▼
No, e-procurement is not mandatorily insisted upon in Global Tender Enquiries, as per Para 4.3.1 of the Manual for Procurement of Goods, 2017.
What currency can foreign bidders use in a GTE?▼
Foreign bidders can quote prices and receive payments in either Indian Rupees or freely convertible currencies such as US Dollars, Euros, Pound Sterling, Yen, or a combination thereof.
What is the minimum time allowed for tender opening after the advertisement date?▼
The due date fixed for the opening of the tender shall be a minimum of four weeks from the date of advertisement.
What documentation is required from the Indian Agent to receive the agency commission?▼
The Indian Agent must provide self-attested documentary evidence about their identity and business details, a certified copy of the agency agreement, and a certificate confirming that the commission was used for services rendered to the foreign principal.
What happens if misrepresentations are found regarding the agency commission?▼
If defects or misrepresentations are found regarding the agency commission, the foreign principal and their Indian agent may be debarred from having business dealings with the purchaser.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to Para 4.3.1 of the Manual for Procurement of Goods, 2017, in what language must GTE tender documents be?

Related Rules

Para 9.4Manual for Procurement of Goods, 2024 - Para 9.4 - Chapter 9Para 9.5.5Manual for Procurement of Goods, 2024 - Para 9.5.5 - Chapter 9Para 1.8.2Manual for Procurement of Goods, 2024 - Para 1.8.2 - Chapter 1Para 2.2.2Manual for Procurement of Goods, 2024 - Para 2.2.2 - Chapter 2Para 2.2Manual for Procurement of Goods, 2024 - Para 2.2 - Chapter 2

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