SERVICE STC
SPECIAL TERMS AND CONDITIONS 
INTERNATIONAL LOGISTICS SERVICE

A. All International Logistics Service related contracts placed through GeM shall be governed by the following set of Terms and Conditions:

I. General terms and conditions for Goods and Services (“GTC”).
II. Service-specific terms and conditions (“STC”) contained in this document. 
III. BID / Reverse Auction specific Additional Terms and Conditions (“ATC”) as specified by the Buyer

B. The above terms and conditions are in reverse order of precedence i.e. ATC shall supersede Service-specific STC which shall supersede GTC, whenever there are any conflicting provisions. 

C. This document represents the Special Terms and Conditions (“STC”) and the Service Level Agreement (SLA) governing the contract between the Buyer and Service Provider. The purpose of this document is to outline the scope of work, stakeholders’ obligations, and terms and conditions of all services covered as mutually understood by the stakeholders.

1. Objectives and Goal
The objective of this document is to ensure that all the terms and conditions are in place to ensure consistent delivery of services to the Buyer by the Service Provider. The goal of this document is to:
⦁ Provide clear reference to service ownership, accountability, roles, and responsibilities of both parties
⦁ Present a clear, concise, and measurable description of services offered to the Buyer
⦁ Establish terms and conditions for all the involved stakeholders, it also includes the actions to be taken in case of failure to comply with conditions specified
⦁ To ensure that both the parties understand the consequences in case of termination of services due to any of the stated reasons
This document will act as a reference document that both the parties have understood the above-mentioned terms and conditions and have agreed to comply by the same. 

2. Stakeholders
The main stakeholders associated are:
1. Buyer: The Buyer is responsible to provide clear instructions, approvals, and timely payments (subject to applicable deductions) for the services availed as per the contractual terms
2. Service Provider: The Service Provider is responsible to provide all the required services promptly to the satisfaction of the Buyer. The Service Provider may also include the seller, supplier/bidder/contractor, any authorized agents, permitted assignees, successors, and nominees as per the context and as described in the document
The responsibilities and obligations of the stakeholders have been outlined in this document. The document also encompasses payment terms and deductions in case of non-adherence to the defined terms and conditions. 
 
3. Scope of Service
The scope of this service is governed by the Incoterms 2020 selection made by the Buyer. The Buyer and Service Provider scope will be governed by Incoterms 2020.  Any additional scope not governed by Incoterms 2020 will be as per addons specified by Buyer. 

4. Terms and Conditions
4.1. Buyer’s Obligations

i. The Buyer shall provide the contact details of the nodal officer who will be responsible to assist the Service Provider in providing consignment details and for coordination purpose.
ii. Buyer to verify the packaging of the consignment/package before the risk transfer to Service Provider from the initial point of transit. Also, during final delivery, Buyer to verify that the packaging is intact. 
iii. In case detention of Service Provider’s transport vehicle/container is required by the Buyer, Buyer to convey the same to Service Provider at least 2 days in advance. Price per day for detention to be mutually agreed by Buyer and Service Provider. 
iv. Buyer to provide complete guideline of handling (such as Temperature conditions, Humidity conditions etc.) to Service Provider if special consignment is getting shipped.
v. In case of Export
a. Buyer to provide Export Invoice, GST Invoice, packing list, license, Letter of Undertaking (LUT) Bond, exemptions, and any other documents as required.
b. Buyer to provide Confirmation that Authorised Dealer Code (AD Code), Goods & Services Tax (GST), and Know your client (KYC) Registration is completed at the nominated International Port as applicable.
vi. In case of Import
c. Buyer to provide Pre-Alert documents prior to the arrival of cargo at the port of clearance including – Air way bill (AWB)/Multimodal transport Document (MTD)/Bill of Landing (BL), Invoice, Packing, and other applicable documents.
d. Buyer to pay the customs duty as requested on the ICE-Gate portal to get clearances on time and safeguard from demurrage charges.
e. Buyer to provide Confirmation that AD Code, GST, and KYC Registration is completed at the nominated International Port as applicable.
vii. The Buyer must notify the Service Provider, as soon as possible after the Buyer becomes aware of the following conditions -
a. any problems, complaints, incidents, or accidents that occur during the contract including any form of inappropriate behaviour by the personnel.
b. any dishonest, wrongful, or negligent acts or omissions of its personnel or agents in connection with the services 
viii. The Buyer will immediately notify the Service Provider of any issues pertaining to the Bill of Entry/Shipping.
ix. Buyer is responsible to provide the Contract Documents, such as PO copy, technical leaflet/literature write-up, Duty Exemption Certificate, arranging bonds, Bank Guarantee, Bank Release Order whenever required. If there is any delay directly attributable upon the Buyer in providing the above and results in fine/penalty/demurrages/interest, Buyer will bear the same and Service Provider will not be liable for any such fine/penalty/demurrages/interest also no impact will be made on the calculation of the service charges of the Service Provider.
x. In case, Buyer presence is required by Custom Department for any clarification with the documents at the time of clearance, the same will be facilitated by the Buyer.

4.2. Service Provider Obligations
For Loading, Unloading, Storage & Handling 
i. For dangerous consignment, Service Provider must use all the protective gears as prescribed by the Buyer for handling and movement of consignment from one place to another.
ii. Service Provider shall handle and arrange storage as per precautions for safe handling as per instruction given by Buyer and ensure their safety against damage in the conditions of land, sea and air transportation, transhipment, storage and weather hazards during transportation, subject to proper cargo handling.
iii. Service Provider shall keep consignment away from heat generating sources and open fire. Also, care must be taken to avoid excessive heating, sparks or welding near the consignment which may result in damage to consignment.
iv. Service Provider is required to maintain stability and reactivity conditions as per Buyer’s norms & instructions. 
v. Disposal of waste materials shall be carried out by Service Provider, observing special safety precautions and disposal of contaminated packaging must be burned, during controlled conditions.
vi. It is the duty of the Service Provider in all cases for loss or misplacement of the consignments, and to take such measures as may be reasonable for the purpose of averting or minimizing the loss and to ensure that all rights of the Buyer against carriers, port authorities, insurance company or any other third party are properly presented and exercised. Service Provider will further ensure that all the documents are properly given to port/ consignee along with the delivery order etc. In case of Warehousing Charges/ Demurrage/ Port Rent etc. the responsibility shall squarely/ fully rests with the Service Provider.
vii. If any damages/pilferage/theft/shortage occurs during the transportation, loading and unloading happens under custody of the Service Provider or their freight forwarder / custody after taking delivery from Buyer, the Service Provider will be responsible for the total losses and the same shall be recovered from Service Provider.
viii. During transportation, Service Provider shall store the consignment in sealed container/box and make sure the consignment is protected from adverse weather conditions such as direct solar radiations, rain, hail and wind.
ix. In case of dispatch to wrong destinations, the Service Provider shall be responsible for shifting the consignments to the correct destinations at its own risk and cost. Alternatively, on Buyer’s request, items are to be brought back to Buyer’s location without any extra charges
x. In the event the shipment is short landed, or the Airlines has not issued Cargo Arrival Notice, or a wrong shipment has landed due to cross labelling or any other reason, the Service Provider is not responsible for the delay and not liable for the storage charges or other payments due thereof. 
xi. The Service Provider shall make sure that the consignment/Packages are packed appropriately as per consignment requirements.  The packing cases should have hooks for lifting by crane/forklift truck. Tags with proper marking shall be fastened to the special equipment, which cannot be packed. The Service Provider shall verify that sturdy packing is used to withstand rough handling during transit. In case of damage to the consignment due to packaging omissions by Service Provider, Service Provider must make all losses arising out of any damage. 
xii. The packing must be verified by Service Provider so that it is able to withstand the vagaries of weather, shipping, and roughness of handling by port labour, cranes, and fork-lifts. 
xiii. Service Provider to make sure that a copy of the packing list/ invoice in English and pre-dispatch inspection certificate shall be inserted in each cargo package. 
xiv. The Service Provider shall check each consignment with invoice and packing list pertaining to respective Airway bill and ensure correctness of the same before clearance.
xv. In order to ensure that there is no pilferage or loss of small valuable packages, the Service Provider shall make adequate arrangements with port authorities for the immediate safe storage of such packages. 
xvi. Service Provider will arrange fumigation of export consignments wherever required and will submit original invoice and fumigation certificate along with invoice. 
xvii. The Service Provider should take adequate care to ensure that the consignments are not over carried.

The Service Provider will also ensure that adequate staff is employed at the time of discharge of cargo to prevent-
a. Mix up of cargo
b. Loading of other cargo on our consignments, particularly on bagged good/goods of fragile/ high value nature, causing damage/ loss.
c. Delay in tracing/ sorting out of mixed cargo and delivery.
xviii. Service Provider shall take advance action for tracing and locating the consignment. In case of untraceable or jammed consignment/package, the Service Provider shall promptly take up with the Port authorities and make all efforts to get the problem resolved immediately, failing which, log Entry as per the prevailing rules and procedures of the Port authorities will be made and the consignment shall be cleared after obtaining spot remission. The Service Provider would however continue to follow up for prompt corrective action. 

During Freight Movement
xix. The shipment details like flight number, date, copy of AWB shall be sent by fax/e-mail to Buyer soon after the consignment is booked for shipment.

For Custom Clearance (Applicable if custom clearance is part of scope)
xx. In case of non-receipt or short landing of consignment at destination, the Service Provider shall help Buyer with necessary details for taking any legal action by Buyer against the Airline / Authority as per concerned IATA Rules.
xxi. Service Provider to prepare and file Bill of Entry/Shipping Bill over ICE-Gate Portal and clear the consignment within the "Free Period Allowed".
xxii. For any problems/issues while preparing and filing of Bill of Entry, same should be intimated to Buyer within the time specified by the Buyer from the date of receipt of Cargo Arrival Notice, to avoid demurrage charges, storage charges etc.
xxiii. Service Provider to ensure, before the "Free Period" whether the packages is/are received in externally sound condition or not, whether House Air Waybill (HAWB) is there on the package or not. If the package is wrongly labelled or HAWB is not fixed or missed, immediately Consolidator to be contacted and problems be resolved before the "Free Period", otherwise any demurrage/storage charges due to this must be borne by the Service Provider. 
xxiv. In case of the events wherein the Service Provider needs to undertake storage (due to reasons such as natural calamities, etc), Service Provider needs to pay additional charges. Service Provider has to substantiate the reason in writing within 12 hours to Buyer from the time clearance is successful from the Custom Department. Buyer may reimburse such charges based on the justifiable reasons. 
xxv. Service Provider must follow-up with the Buyer on day-to-day basis and ensure that there is no delay in collection of CAN and related documents for filing of Bill of Entry and clearing the same.
xxvi. For the import shipments received through direct airlines/vessels or ships, the Delivery Order charges will be paid by the clearing agent on behalf of Buyer and Buyer will reimburse the same along with service bill on production of original receipt.
xxvii. It should be ensured by Service Provider that one set of documents such as CAN, Invoice, HAWB, MAWB, MBL and HBL, Packing List, Release Note, if any, collected from Consolidator as well as from other than Consolidator are given to Buyer within 12 hours from the date of landing to know the details about our consignments.
xxviii. In the event, the shipment is short landed, it should be ensured that Short Landing Certificate is collected & handed over to Buyer for preferring claim towards non-delivery. Also, any short delivery of documents, Service Provider should contact Buyer for arranging the documents without any delay.
xxix. It should be ensured that shelf life and cold storage consignments, which are required to be deposited in cold storage, must be cleared, and deposited in the Cold Storage on the same day.
xxx. Service Provider to ensure that documents that are given for customs clearance are kept in confidence and used only for making Bill of Entry/Shipping Bill and clearing the consignments 
xxxi. It should be ensured that the Service Provider shall intimate Buyer on the progress of the clearance and load the cargo in transitory vehicle (as per the instruction given on the packages to avoid the damages) and forward the same to Buyer.
xxxii. In case consignment is of the urgent/critical in nature, Service Provider should ensure clearance of such consignment on high priority as per timelines defined by Buyer. Any such import consignments with due prior intimation by Buyer shall be cleared and delivered within 12 hours of its arrival. The corresponding documents required if any shall be followed up and collected by Service Provider in advance.
xxxiii. The Service Provider should prepare any Bond/Undertaking, if required, towards Customs Clearance of Consignments, and forward to Buyer for necessary signature for completing customs clearance and ensure to get the same cancelled within prescribed time. Any charges that occurred in preparation of Bond/Undertaking will be reimbursed by Buyer on submission of Invoices.
xxxiv. Service Provider should intimate the Bill of Entry details immediately after filing to enable Buyer for payment of Customs Duty / IGST thru ICEGATE online system. Soft copy of Bill of Entry should also be forwarded to Buyer for record. Any problem in preparing and filing of Bill of Entry should be intimated to Buyer within time specified by Buyer from the date of landing.
xxxv. Service Provider shall ensure clearance within the free period allowed by Custodian of the Cargo and in the event of wrong filing of IGM/HAWB/MAWB/SAWB and other data in EDI, the Service Provider will be responsible for correction of the same in the stipulated period for clearance and is liable for payment of demurrage, if any, in case incurred due to delay of the process.
xxxvi. Service Provider must forward the checklist with appropriate HSN code, suitable notifications, and statutory duties and must obtain confirmation of checklist from Buyer before presenting and finalizing Bill of Entry/Shipping Bill.
xxxvii. Service Provider shall follow-up with concerned officials the cases of recovery of excess duty and refund, if any.
xxxviii. It should be ensured that Shelf Life and Cold Storage Consignments, which are required to be deposited in Cold Storage must be cleared on “Kutcha Bill of Entry” and deposited in the Cold Storage without any delay.
xxxix. Service Provider will be required to perform all duties as prescribed under Customs Act 1962 and Customs House Agent’s Regulations 2004 and as amended from time to time.
xl. In cases when shipment arrives on Sunday & custom holidays, Service Provider should ensure that the necessary action is taken to meet timelines requirement of Buyers. 
xli. The Service Provider will be fully responsible for prompt finalization of Bill of Entry including examination and out of charge. The examination of goods by Customs, including first check examination, is to be got done promptly. All the queries of the Customs, at any stage, are to be attended to and satisfactorily replied promptly without any delay. Any hold up for want of documents etc. should be promptly brought to the notice of Buyer or its representative in writing.  
a. The freight bills are to be collected well in advance and submit the same to Buyer in time to avoid any delay in clearance proceedings for want of timely payment.’
xlii. The Service Provider will be fully conversant with customs classifications and proceed to file Bill of Entry on behalf of Buyer, immediately after receipt of documents, for correct duty payment. In case any clarification or additional information is required from Buyer, the same shall be promptly brought to the notice of Buyer or its representative in writing and obtained expeditiously. In case Customs authorities do not agree with the above classification or Notification benefit obtained initially by the Service Provider on behalf of Buyer, the same shall be brought to the notice of Buyer authorities in writing before assessment and further action will be taken as per the instructions of Buyer.
xliii. The Service Provider will not be responsible for loss or pilferage of Cargo while in the premises of the custodian, but they should arrange to get the short-landing certificate / open delivery certificate etc., as applicable, and submit the same in time to Buyer so as to take necessary claim action.
xliv. Service Provider shall ensure correct and timely payments of customs clearance, if required. In case any wrong payment or excess payment is made by Buyer due to Service Provider, Service Provider will be fully responsible for the same and will have to make good the losses suffered by Buyer on this count. Buyer will recover such amount (including interest, if any) from the outstanding bills of Service Provider. However, if such fine and/or penalty or excess payment is subsequently waived or reduced or refunded by other agencies, the amount refunded to Buyer by them would be paid to the Service Provider.
xlv. Service Provider has to co-ordinate with Customs on behalf of Buyer for duty drawback.
xlvi. Service Provider should be well aware of different types of custom duties and taxes like BCD, SWC, IGST, ADD, and SG, MIP etc. applicable on items HSN wise with % age applicability and correctly recommend to Buyer about payment of these charges to Customs.
xlvii. The perishable consignments should be cleared within 24 hours of landing. . In case, a perishable consignment is damaged due to insufficient dry ice during clearance, Service Provider shall be held responsible for the complete loss.

For Insurance 
xlviii. Service Provide shall pursue the claim with the Insurance Company and take all necessary steps for early settlement of the same in favour of Buyer towards any event of loss or damage to the goods, after they have been entrusted to the Airlines for Carriage, the liability if any shall be of the Airlines. 
xlix. In the event of damages or any other discrepancy in the consignment found at the time of customs clearance wherein insurance is responsibility of Service Provider, Service Provider shall arrange insurance survey by the underwriter or their surveyor and also lodge claim with concerned authorities on behalf of Buyer under intimation to Buyer immediately.

During the entire duration of contract
l. The Service Provider shall be exclusively responsible for compliance with the international laws, rules & regulations and procedures framed by Authority’s, International Air Transport Association (IATA), Customs, Directorate General of Foreign Trade (DGFT), Insurance Authorities etc. for carriage of air & sea consignment and keep themselves in touch with the carrier or their agents and concerned authorities on the outgoing consignments and no liability whatsoever shall be attributable upon the Buyer for non-compliance of any law.
li. Service Provider to provide easy access to the Buyer for entry and exit of the port as and when required by Buyer (whenever Buyer shipment located at the port).
lii. For the duration in which consignment is under custody of Service Provider, the responsibility for proper safety, care, handling, and storage of goods will be the obligation of Service Provider.
liii. The Service Provider should send the Status Report of Buyer shipments as per the specified time by Buyer.
liv. SECRECY CLAUSE: Service Provider will have to maintain full secrecy regarding documents provided by Buyer. These will only be used for customs clearance and will not be disclosed to anyone (repeat) anyone other than concerned customs officials.
lv. The Service Provider will be required to submit details of the manpower engaged in the complete the task with photo ID, address proof, police verification certificate and educational qualifications before deputing the workers. The Service Provider shall be solely responsible for the credentials/ acts of his/her staff/workers.
lvi. Service Provider to provider contact details of the officers supervising on behalf of the Service Provider along with details of Complaint escalation officer contact details.
lvii. In an event that, for any reason, the manpower provided changes their contact number during the tenure of the contract then the Service Provider will immediately notify the Buyer of the above change.
lviii. The persons deployed by the Service Provider shall solely be the responsibility of the Service Provider and Buyers shall have no obligation for any sort of claims raised by the Service Provider’s employees/personnel. For all intents and purposes, the Service Provider shall be the “Employer” within the meaning of different Labour Legislations in respect of manpower so employed and deployed in the Buyer’s premises and shall be responsible to fulfil all obligations under applicable laws without any recourse to the Buyer. 
lix. The Service Provider shall be liable for ensuring compliance with the provisions of all applicable laws including but not limited to Labour Law [Central/State] and specially Workmen Compensation Act, EPF Laws, ESI Laws, Income tax laws and Minimum Wages Laws, Contract Labour (Regulations Abolition Act), Pollution Control Board and any other relevant acts as may become applicable during the tenure of the contract. The onus of compliance to all the applicable Laws/Acts/Rules shall rest with the Service Provider only and the Buyer will not be liable for any non-compliance.
lx. The Service Provider shall be responsible for any type of statutory/mandatory claims or penalties in light of the default with reference to the clause number lix.
lxi. The Service Provider shall cover its personnel for personal accident and death whilst performing the duty and the Buyer shall own no liability and obligation in this regard.
lxii. It is the sole responsibility of the Service Provider to disburse wages timely to all its deployed personnel and the Buyer has no responsibility in this regard. 
lxiii. The Service Provider shall deploy manpower who are above eighteen years of age and are not above 65 years of age.
lxiv. All safety accessories and measures as required for the execution of the work shall be provided to the workers by the Service Provider at their own cost.
lxv. In case any loss is incurred by the Buyer owing to the negligence or mishandling by the deployed personnel of the Service Provider, the Service Provider shall be responsible to make good the losses suffered by the Buyer.
lxvi. The Service Provider should ensure that their personnel do not consume alcohol / do not smoke / do not take khaini/ any type of drugs in the Buyer’s premises and at Ports, the violation will attract suitable deduction as stipulated herein.
lxvii. The Service Provider must ensure that their personnel do not report for duty in inebriated state. Any violation will attract suitable deduction on the Service Provider in terms of the present document.
lxviii. The Service Provider shall be fully responsible for the acts of their representatives / team members and shall fully indemnify the Buyer for any kind of losses or damages caused by its team members. The Buyer shall not be responsible for any claim from any team member employed by the Service Provider. The Service Provider shall wholly and fully be responsible for any such claims.
⦁ The Service Provider shall maintain the following records: - 
a. Account of packages cleared, handled, forwarded and transported. These records shall be furnished to Buyer at such intervals and in such a manner as Buyer may demand from time to time. 
b. Register/ computerized record of bills of entry filed by them.
c. A refund register/ computerized record for refund of customs duty paid in excess in regard to short landing claims. 
d. A copy of Import & Export documents i.e. Bills of Entry, Shipping Bill, Invoice etc.
e. A copy and register of other documents like Refund claims, SLC, LRC and NDC. 
lxix. Indian Docks Laborers’ Act 1934 should be adhered to in totality with special reference to the clause - Transporter & Equipment Operation Section 57 to 74. Service Provider shall specifically ensure compliance with all Labour Laws and The Motor Vehicles Act and their re-enactments/ amendments. 

4. Payment Schedule

i. The Payment procedure shall be as specified in the General Terms and Conditions (GTC) of GeM. 
ii. Payment schedule to be as per payment terms specified in the bid document by the Buyer. 

5. Formula used 
Total Contract Value = Lumpsum cost offered by Service Provider as per buyer’s requirement

6. Deduction