Para 6.4 — GOODS_MANUAL

6.4.2 Modes of Payment for Imported Goods 1. It should be ensured that the imports into India conform with the export-import policy in force: FEMA; FEMA (Current Account Transactions) Rules, 2000105 framed by Procuring Entity; and directions issued by RBI under FEMA from time to time. 2. For imported goods, payment usually happens through the Letter of Credit (LC – refer to para 6.4.5 below) opened by the State Bank of India or any other commercial bank as decided by the procuring entity. The amount of LC should be equal to the total payable amount and be released as per the clauses mentioned above. If the LC is not opened, payment can also be made to the seller through a direct bank transfer, for which the buyer has to ensure that payment is released only after the receipt of prescribed documents. 3. To have uniform payment clauses in GTE tenders for foreign and domestic bidders, the Procuring Entity may include a provision in its Tender Conditions on the merits of the case (especially high-value contracts for sophisticated equipment/machinery), allowing payment through LC to domestic bidders also.

6.4.3 Documents for Payment for Imported Goods The documents needed from the supplier for the release of payment are to be clearly specified in the contract. The paying authority also verifies the documents received from the supplier with corresponding stipulations made in the contract before releasing the payment. Documents, which the supplier is to furnish while claiming payment, are specified in the Letter of Credit but usually are:

1. Cases where installation, erection, and commissioning (if applicable) are not the responsibility of the supplier -- 100 (hundred) per cent net price is to be paid against the production of stipulated documents; 1. In cases where installation, erection and commissioning are the responsibility of the supplier -- 80 - 90 (eighty to ninety) per cent of the net price is to be paid against production of stipulated documents, and balance within 21-30 (twenty-one to thirty) days of successful installation and commissioning at the consignee's premises and acceptance by the consignee; 2. Payment of agency commission, if payable, against – the entire 100 (hundred) per cent agency commission is paid (in equivalent non-convertible Indian Rupees based on BC selling rate of exchange) after all other payments have been made to the supplier in terms of the contract.

6.4. Terms of Payment for Imported Goods 6.4.1 Terms of payment Usual payment terms, unless otherwise directed by CA, are indicated below:

1. Supplier's original invoice giving full details of the goods, including quantity, value, and so on; 2. Packing list; Chapter 6: Forms of Securities, Prices, Payment Terms and Price Variations

3. Certificate of country of origin of the goods to be given by the seller or a recognised chamber of commerce or another agency designated by the local Government for this purpose; 4. Quality Assurance Certificates: a) Certificate of pre-dispatch inspection by the purchaser's representative or b) Manufacturer's test certificate and guarantee; 5. Certificate of insurance; 6. Bill of lading/airway bill/rail receipt or any other dispatch document issued by a Government agency (like the Department of Posts), or an agency duly authorised by the concerned Procuring Entity, indicating: a) Name of the vessel/carrier; b) Bill of lading/airway bill; c) Port of loading; d) Date of shipment; e) Port of discharge and expected date of arrival of goods; f) Any other document

(s) as and if required in terms of the contract.