Para 9.6.5 — GOODS_MANUAL

3. Consignee’s Right of Rejection of Pre-inspected Goods: Notwithstanding any approval which the Inspecting Officer may have given in respect of the Goods or any materials or other particulars or the work or workmanship involved in the performance of the contract (whether with or without any test carried out by the contractor or the Inspecting Officer or under the direction of the Inspecting Officer) and notwithstanding delivery of the Goods where so provided to the interim consignee, it shall be lawful for the consignee, on behalf of the Procuring Entity, to inspect, test and, if necessary, reject the Goods or any part, portion or consignment thereof, after the Goods’ arrival at the final destination within a reasonable time (usually within 90 days of original Inspection Report) after actual delivery thereof to him at the place of destination stipulated in the contract, if such Goods or part, portion or consignment thereof is not in all respects in conformity with the terms and conditions of the contract whether on account of any loss, deterioration or damage before despatch or delivery or during transit or otherwise howsoever.

2. Detailed Inspection on Receipt: Before accepting the ordered goods, the storekeeper must ensure that the goods have been manufactured as per the required specifications and can perform the functions specified in the contract. To achieve this, the tender document and the subsequent contract should include references to standards or specifications that specify the details of the inspection and tests to be carried out and the stages and manner of carrying out these tests. The required inspections and tests should be carried out by technically qualified and competent personnel. If the procurement agency does not have such qualified personnel, it may engage competent professionals from other Departments or even outside agencies.

9.6.5 Receipt of Consignment 1. Preliminary Inspection and Receipt: a) At the time of the delivery at the stores, the storekeeper should receive the goods on a “subject to inspection” basis and should issue the preliminary receipt after a preliminary inspection as an acknowledgement of having received the claimed quantity (not the quality) of consignment. When opening the packages (if applicable), the storekeeper should initiate a preliminary inspection of the goods received. This should include checks for any obvious damage in transit and other physical or visual checks specific to the functional characteristics of the product. The quantity of the goods received should also be verified at this stage against the purchase order and the supplier’s invoice. When goods are supplied in boxes, bundles, or coils, as in the case of tools, rope, canvas, cables, and so on, each of which is required to contain a specified quantity, a reasonable number of such packages should be opened and checked for quantity per package. The quantity received should also be mentioned in the preliminary receipt to be given to the supplier. Any discrepancies in packages or quantity should be mentioned therein. b) For Goods with a limited shelf life, the contractor shall ensure that at least 75% (or any other percentage stipulated in the contract) of shelf life remains a balance on the delivery date. The Procuring Entity reserves its rights to reject expired products with less than such specified shelf life.

9.6.6 Goods Receipt and Inspection Report 1. If the received material successfully passes the quantity and quality checks, accounting of the material received shall be based on the Goods Receipt and Inspection Report (GRIR - Annexure 25) prepared after inspection and acceptance of the material, which the concerned officers will sign. This includes cases where payment is made to the supplier on proof of dispatch, for which inspection at the suppliers’ premises is conducted by an authorised officer of Procuring Entity prior to dispatch by suppliers. This excludes cases of imported materials where accounting will be done on completion of certain further formalities as per regulations and practices. While a preliminary receipt is only an acknowledgement of the quantity received, GRIR is an acknowledgement of receipt of the correct quantity as well as quality of goods. GRIR is a voucher that forms the basis for the supplier to claim payment as per the contract. It also is a voucher for the amount of material received in the inventory accounts. Along with the GRIR, material is handed over to the warehouse where it is to be stored. 2. In case the received material fails to pass quantity and quality checks, a rejection GRIR is issued, noting the reasons for rejection. If feasible, a yellow paint (or chisel) mark should be put on the rejected material to prevent its resubmission by the supplier. The associated Finance/ FA should be asked to recover any advance payment or freight charges paid for the rejected quantity. The rejection GRIR contains instructions for the supplier to take back the rejected goods within a stipulated number of days (usually 21). During such time the materials lies with the consignee at supplier’s risk and cost. Such removal should be permitted only after the advance payment/freight paid is recovered. Lots that are under inspection, accepted, or rejected should be properly tagged, segregated, and identified. 3. In case the supplier does not lift the rejected goods within the stipulated time, a ground rent (say at 0.2% to 05% per day of the value of goods as per contract). If the supplier does not respond within a reasonable time, the procuring entity may treat the material as scrap and dispose it off as deemed fit, under intimation to the supplier, to recover its dues. Such provisions should be part of the tender document. 4. Delay in preparation and release of GRIR delays payment to the supplier. Procuring entities must put in place a system of records/ monitoring and periodic inspection by senior supervisors/ officers so that GRIR is released without any undue delay (say not later than 21 days). A summary of such cases of undue delay may be requested and reviewed by the head of the procuring entity every month.