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Checklist

3.1 Contract/Supply Order documents:

  1. Ink-signed copy of the contract
  2. INCO terms of the contract.
  3. Prices and quantity of items are clearly indicated in the contract duly supported with the Annexure wherever applicable.
  4. Terms of the payment indicate the Mode of payment i.e. by Direct Bank Transfer (DBT) or through Letter of Credit (LC).
  5. In respect of LC payments, the documents to be presented by the firm for payment are properly mentioned.
  6. Validity of LC is clearly shown.
  7. Provisions regarding bank charges for opening and maintenance of LC debitable to party concerned are clearly mentioned in the contract.
  8. Scheduled delivery period is clearly indicated.
  9. Liquidated Damages clause is mentioned as per relevant clause of Defence Procurement Manual (DPM) or Defence Procurement Procedure (DPP) as the case may be.
  10. Suitable arbitration clause for any dispute or disagreement arising during execution of the contract is mentioned.
  11. Warranty period for stores and services are given.
  12. Provision for escalation charges is duly supported with requisite dates and criteria.
  13. The name of the ultimate consignee is clearly indicated.
  14. Provisions of Advance BG equal to value of advance, Performance Bank Guarantee @ 5% to 10% of contract value and Warranty Bond covering the period of warranty are incorporated in the contract.
  15. Force Majure/ repeat order clauses / option clause are incorporated as per provisions of the DPM/DPP.
  16. Date of dispatch of items for repair.
  17. Effective date of contract is clearly mentioned.
  18. Paying authority is clearly mentioned.
  19. Buy back offer, if any, is laid down.
  20. Any prerequisite certificates for supply to be obtained by the vendor from his country like export license is laid down.
     

3.2 Advance Payment:

  1. Original sanction from the officer whose specimen signatures are available in records and who is authorized to issue the sanction to release advance payments.
  2. Documents as mentioned in contract are attached.
  3.  

    • Form IA     (for stores)
    • Form 2A    (for services)
    • FEMA certificate
    • Sanction letter
    • Valid  Advance Bank guarantee 
       

3.3 Letter of Credit

  1. Contract specifying the Mode of payment through LC.
  2. Following documents required by the bank:

    • SWIFT form-700
    • Form IA       (for stores)
    • Form 2A    (for services)
    • FEMA certificate
    • Sanction letter  (ink signed)
    • Bank guarantee (as applicable)
    • FFE release (for current financial year)
       
  3. Type of LC (whether revolving or irrevocable)
  4. Validity of LC (to be correlated to the delivery period)
  5. Specimen signatures of CFAs as well authority forwarding the documents.
  6. Bank guarantees are validated by a nationalized bank and validity is as per the contact terms.


3.4 Direct Bank Transfer (DBT):

  1. Contract specifies the Mode of payment through DBT.
  2. Following documents required by the bank:
  3.  
    • Form IA (for stores)
    • Form 2A (for services)
    • FEMA certificate
    • Sanction letter (ink signed)
    • Bank guarantee (as applicable)
    • FFE release (for current financial year)
       
  4. Original copy of Invoice, Airway Bill, OEM certificate, Packing list, warranty certificate (as per the contract)
  5. Specimen signatures of CFAs as well as authority forwarding the documents.

3.5 Foreign Military Sales (FMS) or Letter of Offer and Acceptance (LOA) cases with US
       Government:

  1. The payment schedule specifies the amount with to be released with timeframe.
  2. Sanction of appropriate CFA (in original).
  3. Specimen Signature of CFAs as well as the authority forwarding the documents.
  4. FFE release obtained for the current financial year.
  5.