Para 6.8.3 — GOODS_MANUAL

6.8.4 Statutory Variation Clause: Please refer to para 9.5.3) below. 6.9. Incoterms, 2020 Terms of Delivery

Table 1: Incoterms and their applications INCOTERMS Options Applicable to Rules for any mode of transport EXW – Ex-Works (named place of delivery) The seller makes the goods available at their premises or another named place. FCA – Free Carrier (named place of delivery) The seller delivers the goods, cleared for export, at a named place to a carrier or to another party nominated by the buyer. CPT – Carriage Paid To (named place of delivery) (earlier C&F – cost and freight) The seller is responsible for export clearance and freight costs for carriage to the named place of destination. CIP – Carriage and Insurance Paid to (named place of delivery) In addition to CPT responsibilities, the seller is required to obtain insurance for the goods while in transit for 110% of the contract value under Institute Cargo Clauses (A) of the Institute of London Underwriters.

6.8.3 Deduction of Income Tax, Service Tax, etc, from Payments If applicable under relevant tax laws and rules, the Procuring Entity shall deduct from all payments and deposit required taxes to respective authorities as per para 9.5.2-2) below.

Chapter 6: Forms of Securities, Prices, Payment Terms and Price Variations

DAP – Delivered At Place (named place of delivery) the seller delivers the goods, ready for unloading, at the named place of destination DPU – Delivered at Place Unloaded (named place of delivery) In addition to DAP responsibilities, the seller is required to unload the goods at the named place of destination. (Earlier DAT - Delivered At Terminal) DDP – Delivered Duty Paid (named place of delivery) In addition to DAP responsibilities, the seller is required to clear the goods through customs and pay import duties and taxes. Rules for sea and inland waterway transport FAS – Free Alongside Ship alongside the buyer's vessel at the named port of shipment, the seller is to clear the goods for export. However, if the parties wish the buyer to clear the goods for export, explicit wording should be added to the contract. FOB – Free On-Board seller to arrange for export clearance and deliver goods on board a vessel that is to be designated by the buyer. CFR – Cost and Freight In addition to FOB responsibilities, The seller pays for the carriage of the goods up to the named port of destination. CIF – Cost, Insurance and Freight In addition to CFR responsibilities, the seller is required to obtain insurance for the goods while in transit for 110% of the contract value under Institute Cargo Clauses (A) of the Institute of London Underwriters.

1. In use since 1936, Incoterms have been last revised in 2020. Out of the 11 Incoterms options, seven apply to all modes of transportation, whereas four apply only to sea and inland waterway transportation.

2. Incoterms rules describe the tasks, costs and risks involved in the delivery of goods from the seller to the buyer. The risk to goods (damage, loss, shortage, and so on) is the responsibility of the person who holds the ‘title of goods’ at that point in time. This may be different from the actual physical possession of such goods. Normally, unless otherwise defined, the title of goods passes from the supplier to the purchaser in accordance with the terms of delivery (FOR, CFR, among others). The terms of delivery, therefore, specify when the ownership and title of goods pass from the seller to the buyer, along with the associated risks. Incoterms, as described by the International Chamber of Commerce, are an internationally accepted interpretation of the terms of delivery. These terms of delivery allocate responsibilities to the buyer and seller with respect to the following:

a) Control and care of the goods while in transit; b) Carrier selection, transfers, and related issues; c) Costs of freight, insurance, taxes, duties and forwarding fees; d) Documentation, problem resolution and other related issues.

3. The options range from one extreme – the buyer takes full responsibility from the point of departure – to the other extreme: the seller is responsible all the way through delivery to the buyer's location (Annexure 19).

6.10. Recovery of Public Money from Suppliers' Bill Sometimes, requests are received from a different ministry/department for withholding some payment from a supplier out of the payment or securities due to it against a contract. Such requests are to be examined by the Procuring Entity (which has received the request) on the merits of the case for further action. It will, however, be the responsibility of the ministry/department asking for withholding of payment to defend the government against any legal procedure arising out of such withholding and payment of any interest thereof.

4. Certain terms have special meaning within Incoterms as defined below: a) Delivery: The point in the transaction where the risk of loss or damage to the goods is transferred from the seller to the buyer b) Free: Seller has an obligation to deliver the goods to a named place for transfer to a carrier c) Carrier: Any person who, in a contract of carriage, is nominated by seller/ buyer for transport by any mode. d) To clear for export: To file the Shipper’s Export Declaration and get an export permit.

5. Within national transportation, certain terms have assumed acceptance due to usage. Free on Rail (FOR) has two versions: FOR/dispatching and FOR/destination (the buyer is responsible from the nominated point mentioned till arrival point, as in DAP above). On similar lines, infrequently, Free on Truck (FOT) is also used in road transport.