Section 129 in The Central Government Account (Receipts and Payments) Rules, 1983
129. Procedure for payment against direct orders on firms, etc., abroad.
- In regard to articles obtained by placing direct orders on firms or individuals in the United Kingdom, United States of America or any other foreign country, payment shall be arranged in accordance with the following: -(i)the drawing and disbursing officer of the Ministry or Department which has placed the order after following the usual procedure (including issue of formal sanction order therefor), shall, as soon as all the checks necessary in connection with the receipt, inspection and verification of articles have been applied, forward the firms bill, in original, with necessary endorsement and, certificate thereon to his Accounts Officer. Particular care must be taken to ensure that no double payment is authorised in respect of the same claim. The Accounts Officer will apply usual prechecks and pass the bill.(ii)Where the time schedule of payment permits, the Accounts Officer will, thereafter, purchase a bank draft in the specified foreign currency in favour of the supplier in the foreign country, through the accredited bank and forward it to the concerned departmental officer for despatch to the supplier by mail or otherwise. The cost of the bank draft in rupees as reflected in the bank scroll will be booked by the Accounts Officer against the relevant head of account.(iii)Wherever the supply order or order in regard to acceptance of tender involves heavy payments, with a specific payment schedule clause therein, usually a letter of credit is opened in favour of foreign suppliers through the accredited bank of the Ministry or Department concerned. Alternatively, payment could also be arranged by telegraphic bank transfer from India directly into the payee's pre-specified bank account abroad as soon as the completed invoice and all relevant documents as required by the terms of the contract are received in the Ministry, Department or by the bank in India, nominated by the Ministry or Department for the purpose, so as to strictly adhere to the stipulated time schedule of payment. Special care should be taken to ensure that the requisite documents are promptly passed on by the bank to the respective authorities in the Ministry or Department concerned for verification where the time schedule is to reckon from the date of receipt of the same by the Department or bank whichever is earlier.(iv)In the case of stores ordered by a Ministry or Department direct from firms abroad on FOB basis and subject to inspection by the India Supply Mission, London or Washington, the procedure prescribed above will be supplemented by a check that the inspection certificate on the supplier's bill has been recorded by the India Supply Mission concerned.Note 1 - Special care should be taken by the purchasing Department in differentiating the action required on its part in connection with the purchase of stores or articles or both through the agency of Indian Supply Mission, London or Washington (the agency function covering invitation and acceptance of tenders and or placing contracts, inspection of stores or articles and payment aspects), from that required where inspection and shipping only is arranged through these agencies. Provisions of rule 128 shall be applicable in regard to payment in the former type of cases and provisions of clause (iv) will be applicable in the latter type of cases.Note 2. - This rule covers purchases from abroad made under the normal procedures and rules. Purchases and procurement of stores under special arrangements will be governed by the procedure specified in the relevant agreement or instrument or undertaking.Note 3. - Instructions regarding procedures for payments to foreign suppliers for imports covered under various foreign aid (credits, loans or grants) programmes and, instruction's regarding procedures for accounting of cash and equipments grants received by the Government from various foreign Governments or Institutions, are required to be issued by the Controller of Aid Accounts and Audit (Department of Economic Affairs) -for each loan, credit or grant agreement, separately, duly approved by the Controller General of Accounts on the advice of the Comptroller and Auditor General.Section V. - Works Expenditure and Miscellaneous Payments
