Fertilizer (Bulk Procurement) Regulations, 2017 (GN. No. 49 of 2017)

Fertilizer(BulkProcurement) GN.No.49(Contd.) 1 ISSN0856–034X SupplementNo.7 17thFebruary, 2017 SUBSIDIARYLEGISLATION totheGazetteoftheUnitedRepublicofTanzaniaNo.7Vol.98dated17th February,2017 PrintedbytheGovernmentPrinterDaresSalaambyOrderofGovernment GOVERNMENTNOTICENO.49publishedon17/02/2017 THEFERTILIZERACT (CAP.378) THEFERTILIZER(BULKPROCUREMENT)REGULATIONS,2017 ARRANGEMENTOFREGULATIONS PARTI PRELIMINARYPROVISIONS Regulations Title 1.Citation 2.Application 3.Interpretation PARTII ADMINISTRATIONOFFERTILIZERBULKPROCUREMENT 4.FunctionsoftheAuthority 5.Registrationandpre-qualificationoffertilizerimporters 6.Authoritytopreparereport PARTIII IMPORTATIONOFBULKFERTILIZER 7.Efficientprocurement 8.TheBulkProcurementSystemfortransitfertilizer Fertilizer(BulkProcurement) GN.No.49(Contd.) 2 PARTIV BULKPROCUREMENTPROCEDURES 9.Obligation to procurebulkfertilizerusing BulkProcurement System 10.Biddingprocess 11.TenderCommittee 12.Fertilizerspecifications 13.Procedureforsampling,testingandblacklisting 14.Cargodelivery 15.BulkProcurementSystemGuidelines 16.Financingandpaymentprocedures PARTV DISTORTIONOFBULKPROCUREMENTSYSTEM 17.DistortionofBulkProcurementSystem 18.Penalty 19.Latedelivery 20.Deliverydefault 21.Latepayment PARTVI GENERALPROVISIONS 22.Generalpenalty 23.Compoundingoffences 24.Transitionalprovision 25.Authoritytosupplementprocedures 26.Standardsofequity SCHEDULES Fertilizer(BulkProcurement) GN.No.49(Contd.) 3 THEFERTILIZERACT (CAP.378) THEFERTILIZER(BULKPROCUREMENT)REGULATIONS,2017 (Madeundersection51) PARTI PRELIMINARYPROVISIONS Citation 1.TheseRegulationsmaybecitedastheFertilizer (BulkProcurement)Regulations,2017. Application 2.TheseRegulationsshallapplytotheimportation offertilizerthroughBulkProcurementSystemofFertilizer. Interpretation 3.In these Regulations unless the context otherwiserequires Cap.378 “Act”meanstheFertilizerAct; Cap.130 “approved specification”means any specification or standard pursuanttotheStandardsAct,orany otherstandardsthatarewidelyusedinthefertilizer industrypractices; “Authority”means the Tanzania FertilizerRegulatory Authorityestablishedundertheprovisionsofthe Act; “Board”meanstheBoardestablishedundersection3of theAct; “BulkProcurementSystem”meansasystem established undertheseRegulationstogoverntheimportation offertilizerinbulkquantity; “bulkquantity”meansasinglelotoffertilizerimported underBulkProcurementSystem; “buyer”meansafertilizerdealerwhobuysafertilizer productfromanimporterunderBulkProcurement System; “CodeofConduct”meansasetofprinciples,values, Fertilizer(BulkProcurement) GN.No.49(Contd.) 4 standards orrules ofbehaviourwhich guide decisionsandproceduresfortheemployeesofthe AuthorityasapprovedbytheMinister; “correspondencebank”meansalocallyregisteredbank engagedbyabuyerwhichhasacorresponding relationshipwithimporterbanker; “Director”meansanExecutiveDirectoroftheAuthority; “FertilizerIndustryPractices”meansanyactionrelatedto afertilizerintendedtopreserveofqualityproduct andmeetinggenerallyacceptedhealth,safetyand environmentalrequirements; “importer”meansacompanywhichwonaparticularbulk procurementtenderfloatedbytheAuthorityto importfertilizerunderBulkProcurementSystem; “inspector”meansaninspectorappointedinaccordance withtheprovisionsoftheActtoverifyqualityand quantityoffertilizerproductimportedunderBulk ProcurementSystem; “Minister”meanstheMinisterresponsibleforAgriculture; “PermanentSecretary”meansthePermanentSecretaryof theMinistryresponsibleforAgriculture;and “TenderCommittee”meansa Committee established undertheprovisionofregulation11. PARTII ADMINISTRATIONOFFERTILIZERBULKPROCUREMENTSYSTEM Functionsof theAuthority 4.-(1)TheAuthorityshall,inadditiontofunctions stipulatedundersectionof4oftheAct,perform the followingfunctions: (a)collect the procurement requirements of fertilizerfromtheregisteredfertilizerdealers; (b)ensurethatbeforeacceptingtheprocurement requirementsbythefertilizerdealeralllevies andfeeschargedbytheGovernmentinstitution arefullpaid; (c)initiate,concludeandadministercontractswith fertilizerimportersandfertilizerdealers; (d)conduct competitive bidding for the procurementoffertilizerinbulk; (e)reporttotheBoardandtheMinistryonBulk Procurementsystem activitiesonaquarterly Fertilizer(BulkProcurement) GN.No.49(Contd.) 5 basisorasmayberequired; (f)relayinformation,inatimelymanner,relatedto thefertilizerbusinesstotheMinistry,fertilizer dealersand otherrelevantinstitutionwhen requested; (g)forecastsupplyanddemandoffertilizer; (h)coordinatediligentreceiptsbyfertilizerbuyers fromthedeliveryvessels; (i)maintain records of the shipments and performance; (j)coordinate invoicing and collection of paymentsfortherespectivesharesoffertilizer importedbyfertilizerdealers; (k)makeordersand undertakeanyfunctionthat aimsatimprovingefficiencyprocurementof fertilizer; (l)liaisewiththeMinistryonissuesrelatedtothe importationoffertilizer;and (m)perform any otherfunctions as may be assignedtoitbytheBoardortheMinisterfor thebettermentofthefertilizerindustry. (2)TheAuthoritymayappointordesignateany competentofficeorofficertoundertakeadministrationof BulkProcurementSystem. Registration andpre qualification offertilizer Importer G.N.No.350 of2011 5.-(1)A fertilizerdealershall,subjectto the procedures prescribed bythe Actand the Fertilizer Regulations,2011,registerwiththeAuthorityinorderto importafertilizerunderBulkProcurementSystem. (2) Every fertilizer importer who intends to participateinacompetitivebiddingforthesupplyof fertilizerunderBulkProcurementSystemshallberequired toapplytotheAuthorityforpre-qualificationbeforebeing shortlisted. (3) The procedure and conditions for pre qualificationofimportershallbeinthemannerprescribed in the Bulk Procurement System implementation GuidelinespreparedbytheAuthority. Authorityto 6.(1)TheAuthorityshallprepareandsubmittothe Fertilizer(BulkProcurement) GN.No.49(Contd.) 6 preparereport Board annualreportforthe operations ofthe Bulk ProcurementSystem whichshallconsistofamongother things,thefollowing (a)theavailablefertilizerstocksinthecountry; (b)demandforecastforthecomingseason; (c)paymentstatusforallimporters; (d)operationalchallengesforthatparticularseason; and (e)any otherinformation as may be deemed necessary. (2)TheBoardshalluponreview ofthereport submitted under sub regulation (1), provide any appropriateadvisetotheAuthorityandsubmitthesaid reportanditsadvisetotheMinisteraccordingly. (3)Areportpreparedunderthisregulationmaybe updatedfromtimetotimeastheneedarises. PARTIII IMPORTATIONOFBULKFERTILIZER Efficient procurement 7.-(1)Apersonshallnotimportfertilizerunlessthe importationiscarriedoutthroughefficientprocurementin accordancewiththeseRegulations. (2)TheAuthorityshallhavepowersandmandates toregulateandcontroltheimportationoffertilizerthrough BulkProcurementSystemundertheseRegulations. (3)Thelistoffertilizerssetoutin theFirst ScheduletotheseRegulationsshallbeprocuredthrough BulkProcurementSystem. (4)Notwithstandingtheprovisionofsubregulation (1)and(3)theMinistermayinconsultationwiththeBoard exemptanyofthetypeoffertilizerfromtheapplicationof these Regulations where there are public interests, economicandscientificjustificationstodoso. (5)Forpurposes ofthis regulation “efficient procurement”meansaprocurementundertakenbywayof Bulk ProcurementSystem in accordance with these Regulations. TheBulk 8.-(1)TheuseofBulkProcurementSystem for Fertilizer(BulkProcurement) GN.No.49(Contd.) 7 Procurement Systemfor transitfertilizer transitfertilizershallbeoptional. (2)Subjecttotheprovisionsofsub-regulation(1), animporterorfertilizerdealerundertakingtransitfertilizer businessshallensurethatthecargoimportediswithinthe specificationsofthecountrytowhichtheproductis destined. (3)Animporterorfertilizerdealerintendingto importfertilizerfortransitshallatthetimeofplacingan importationorder,submittotheAuthoritythenameand contactsoftheconsigneeofthetransitfertilizer. (4)TheBulkProcurementSystem vesselsshall onlycarryproductsorderedthroughBulkProcurement System. (5)Anyimporterorfertilizerdealerwhointendsto useBulkProcurementSystem vesseltocarrynon-Bulk ProcurementSystem transitproductshallnotifythe Authoritybeforeimportationoffertilizers. (6)Anypersonwhocontravenestheprovision ofthisregulationshallbeliabletoafineequaltofive percentofthe value ofthe cargo imported orone hundredmillionTanzanianshillingswhicheverishigher. PARTIV BULKPROCUREMENTPROCEDURES Obligationto procure fertilizerusing Bulk Procurement System 9.Animporterorfertilizerdealerwhointendsto importfertilizershallconcludewiththeAuthority,supply andshippingcontractthatshallcompriseofthetermsand conditionswhich govern therelationship between the Authorityand importer,and both shallrecognize the contractenteredbetweentheAuthorityandanyother relatedpartiesintheBulkProcurementSystem. Bidding process 10.-(1)Thereshallbebiddingprocessunderthese Regulations. (2) Allmattersrelatingtobiddingprocessunder theseRegulationsshallbeasprescribedintheFertilizer BulkProcurementSystem Guidelinesprepared bythe Authorityinconsultationwiththestakeholders. Tender 11.-(1)ThereshallbeaTenderCommitteewhich Fertilizer(BulkProcurement) GN.No.49(Contd.) 8 Committee shallberesponsibleforopening,evaluatingandawarding offertilizertenderinaccordancewiththeFertilizerBulk ProcurementSystemGuidelines. (2)TheTenderCommitteeshallbeappointedbythe Board. (3) TheTenderCommitteeshallcompriseofa Chairmanandotherfivemembersofwhom (a)twomembersrepresentingimporters, (b)one member representingTanzania Port Authority;and (c)twomembersrepresentingtheAuthority. (4)TheBoardmembersandpre-qualifiedfertilizer importerortheiraffiliatesshallnotbeeligibletobe membersoftheTenderCommittee. (5)AmemberoftheTenderCommitteeshallhold officeforaperiodofthreeyearsandshallbeeligibleforre appointment. (6) In performing its functions underthese RegulationstheTenderCommitteeshall (a)ensure the application offair,competitive, transparent,nondiscriminatoryandvaluefor moneyprocurementstandardsandpractices areadheredto;and (b)monitorcomplianceoftheseRegulationsand anyguidelinesmadeundertheseRegulations. Fertilizer specifications Cap.130 12.-(1)AnyfertilizerimportedintoTanzaniashall conform totheapprovedspecificationspursuanttothe StandardsAct. (2)TheAuthorityshallensurethatspecificationsto beusedinthetenderprocessstrictlyconform tothe StandardsAct. (3)Anyfertilizerwhichdoesnotmeettheapproved specificationsshallnotbeoffloadedinTanzania. (4)Anyimporterwhoimportsafertilizerproduct whichisnotinconformitywiththeapprovedspecifications shallbeblacklistedandshallnotbeeligibletobidfor importationoffertilizerintoTanzaniaforaperiodofnot lessthanoneyearandnotmorethanfiveyears. Procedurefor sampling, 13.-(1)Theprocedureforsampling,testingand blacklistingofafertilizerproductshallbeasprescribedin Fertilizer(BulkProcurement) GN.No.49(Contd.) 9 testingand blacklisting theActandundertheseRegulations. (2)Afertilizerimportermayappointaninspectorto verifyonthequalityandquantityofanyfertilizerreceivedat theportofimportation. (3)Intheeventthatqualityoffertilizerresultsby inspectoroftheAuthorityarenotinconformitywith TanzaniaBureauofStandardsresults,thelatterresults shallbefinalasmuchasqualityofimportedfertilizerin Tanzaniaisconcerned. (4)Intheeventthatfertilizerquantityresultsbyan inspectorarenotequal,theAuthorityshalltakeinto accountorconsiderresultsproducedbyWeightsand MeasuresAgencyasfinalasmuchasquantityofimported fertilizerinTanzaniaisconcerned. (5)Afertilizerimporterordealershallberequiredto take allprecautions needed,and comply with the acceptable standards and principles when receiving fertilizerfromanimporterordealerinordertomakesure thattheyreceiveorstorefertilizerwithintheapproved specifications. (6)TheAuthorityshall,uponreceiptofresultswhich are non-conforming to the standards, blacklistthe respective Importerin accordance with the provision regulation12(4). (7)Eachfertilizerdealershallbeobligedtonotify theAuthorityimmediatelyintheeventhebecomesaware ofanyfertilizerwhichdoesnotconform tospecification whichisduetoorhasbeenimportedintoTanzania. (8) Subjecttosub-regulation(7),anyfertilizer importerordealerwhodoesnotnotifytheAuthorityinthe eventhebecomesawareofthereceiptofcontaminated productshallbeconsideredtohavedistortedtheBulk ProcurementSystem. (9)Intheeventitisestablishedthatthefertilizer importerordealershavereceivedcontaminatedfertilizer whileuponarrivalofthevesselattheporttheproductwas sampled,testedandfoundtobewithintheapproved specification,aneutralandindependentinvestigationshall beconductedbyanindependentandneutralinvestigator, appointedbytheAuthorityinconsultationwiththefertilizer importeranddealertodeterminethecauseandpointof Fertilizer(BulkProcurement) GN.No.49(Contd.) 10 contamination. (10)Anypersonwhoisfoundtohavecontaminated fertilizeruponarrivalshallbeliableforcontaminationand tohavedistortedBulkProcurementSystem. (11)ThecostsincurredbytheAuthorityduring investigationconductedundersubregulation(9)shallbe bornebythepersonwhoisfoundtohavecontaminatedthe cargo. (12)Apersonshallnot,otherthantheAuthorityor TanzaniaBureau ofStandardsbeallowed to publish, circulate orcause to be published orcirculated any informationrelatingtothequalityofanyfertilizer. (13)Anypersonwhocontravenestheprovisionsof sub-regulation (12)commitsand offenceunderthese Regulations. Cargodelivery 14.-(1)Animportershallberesponsibleforthe procurement,shippingarrangementsandtheoffloadingof afertilizerproductorcargoatanyport. (2)ABulkProcurementSystem vesseldelivering fertilizerproductatanyportshall,ifitarriveswithinits scheduleddeliverydatehaveprioritytotheoffloading point. (3)ABulkProcurementSystem vesseldelivering fertilizerproductatanyportthatarrivespriorto,orafterits scheduleddeliverydaterangeshallbeaccommodatedat theoffloadingpointassoonaspracticable. Bulk Procurement System Guidelines 15.-(1)TheBulkProcurementSystem Guidelines preparedbytheAuthorityundersubregulation10(2)shall (a)stipulateallmattersrelatedtoinvitationtobid, bidevaluation,bidsqualificationandawardof thebidtosupplyabulkfertilizer;and (b)guide all operational matters related to procurement of fertilizer under Bulk Procurement System,including pre arrival checks,pre-discharge operations,discharge operations, post discharge overturn and customsandwarehousing. (2) The fertilizer Bulk Procurement System GuidelinesandTenderdocumentsshallnotconsistof requirementsandterminologieswhichdiscriminateunfairly againstparticipationbytenderers. Fertilizer(BulkProcurement) GN.No.49(Contd.) 11 Financingand payment procedures 16.–(1)ThefinancingoffertilizerundertheBulk ProcurementSystemshallbebornebyfertilizerdealers. Cap410 (2)Forpurposesofprocurementoffertilizerunder theBulkProcurementSystem,proceduresstipulatedunder thePublicProcurementActandregulationsshallnotapply. (3)Eachfertilizerdealer’sbankershallopenaletter ofcredittotheimporter’sbankerorfacilitatepre-payment inrespectofthecargospecifiedintherespectivesupply andshippingcontract. (4)Whereafertilizerdealerfailstoopenaletterof creditorfacilitatepre-paymentwithinthetimespecifiedin theshippingandsupplycontract,suchdealershallbe deemedtohavedistortedtheBulkProcurementSystem, anduponconvictionbeliabletopenaltiesprescribedunder regulation18. (5)Subjecttotheestablishmentofajointfinancing arrangement,acorrespondencebankshall,onbehalfofthe buyer,settleinvoicesraisedinrespectofthecargodetailed intherespectivesupplyandshippingcontract. PARTV DISTORTIONOFBULKPROCUREMENTSYSTEM Distortionof Bulk Procurement System 17.ForthepurposeoftheseRegulations,aperson shallbedeemedtohavedistortedthefunctioningofthe BulkProcurementSystem,ifsuchperson (a)eitherindividually orcollectively with other personscausestheAuthoritynottoexecuteits functionsasrequiredundertheseRegulations; (b)delaysinopeningaletterofcredit,paymentof wharfageandnon-compliancewithitsguidance ordirectives; (c)wilfullyandwithnojustifiablereasonsfailsto importfertilizer; (d)fails orrefuses withoutjustifiable cause to receivetheorderedcargooffertilizer; (e)actsinamannerwhichendangersthesecurityof supply; (f)failstomakearrangementtoreceivetheordered quantity;and Fertilizer(BulkProcurement) GN.No.49(Contd.) 12 (g)failsordelaystoperform anyobligationas directedbytheAuthorityaimingatensuring efficient procurement and managing Bulk ProcurementSystem; (h)conductanymalpracticeortemperswithany facilityduringreceiptandstoringoffertilizer, whichshallincludebutnotlimitedtoissuing falsereportsandinformationtotheAuthorityin relation to quantity and quality offertilizer received; (i)refusestoobeyalawfulorderorinstruction issuedbytheAuthority;and (j)failstopayfeesandlevieschargedbythe Governmentinstitutions. Penalty 18.Anypersonwhodistortsthefunctioningofthe Bulk ProcurementSystem orwillfully endangers the functioningofthecompetitivesupplysystem,commitsan offenceandshall,uponconvictionbeliabletoafine prescribedintheSecondScheduletotheseRegulations. Latedelivery 19.-(1)Latedeliverydefaultarisingfrom causes otherthanaforcemajeureeventshallattractalatedelivery penaltyof0.5USDollarspermetrictonperdaytobepaid byanimportertocompensatebuyersforcompromising theirminimumstocks. (2)Thepenaltyprescribedinsubregulation(1),shall bepaidtothebuyerwithinsevendaysfrom thedateof receivingdemandnotefromtheAuthority. (3)Notwithstandingtheprovisionsofsub-regulation (1),thelay-timeonlatearrivingvesselsshallcommence whenthevesselberths. (4)Thedemurragecostsresultingfrom cascading effectcausedbylatedeliveryoftheBulkProcurement System vesselshallbebornebythedealerorimporterof thelatedeliveryvessel. (5)Thedemurragecostsanditsrelatedeffects causedbyanypersonshallbebornebysuchperson. (6)Forpurposesofthisregulation,thecascading effectshallbelimitedtothreesubsequentvesselswhich havetodischargefertilizerafterthelatedeliveryvessel. (7)Forpurposesofensuringefficientandeffective Fertilizer(BulkProcurement) GN.No.49(Contd.) 13 Bulk Procurement System,the Authority may take necessarymeasurestominimizecascadingeffects. Delivery default 20.Withoutprejudicetothepenaltyprescribedin regulation19(1),animporterwhosevesseldelaysformore thansevendaysfrom thelastdayofthedeliverydate windowshallbedeemedtohavedefaultedonthedelivery ofthefertilizercargoandshallbeliabletopenaltiesasshall beprovidedintheshippingandsupplycontract. Latepayment 21.-(1)Afertilizerdealerwhofailstopayforits shareofafertilizerattheduedate,exceedingsixtydays fromthefirstdayofdeliverydaterange,shallbechargeda latepaymentpenaltyofLIBOR+4%perannumorbebarred from participatinginthesubsequentBulkProcurement Systemtenderorboth. (2)Thepenaltyprescribedinsubregulation(1)shall bepaidtotheimporterwithinsevendaysfromthedateof determinationofsuchfailureforonwardpaymenttothe importer. (3) Forthepurposesofthisregulation,theterm “LIBOR”meanstheLondonInter-bankOvernightRate. PARTVI GENERALPROVISIONS General penalty 22.-(1)Anypersonwhocontravenestheprovisions oftheseRegulationsforwhichno specificpenaltyis providedforshallbeliabletoafineofnotlessthanten millionshillings. (2)Anypersonwhoemploysanagent,clerk,servant oranyperson,shallbeanswerableandliableforanyactsor omissionsofsuchpersoninsofarastheactsoromissions ofthatpersonisconcerned. Compoundin goffences 23.-(1)Notwithstanding the provisions ofthese Regulationsrelatingtopenalties,whereapersonadmitsin writingthathehascommitedanoffenceunderthese Regulations,theAuthoritymay,atanytimepriortothe comencementofthehearingbyacourtofcompetent jurisdiction,compoundsuchoffenceandordersuchperson topaysumofmoney,notexceedingtheamountofthefine Fertilizer(BulkProcurement) GN.No.49(Contd.) 14 towhichsuchpersonwouldotherwisehavebeenliableto payifhehadbeenconvictedofsuchoffence (2)Whereanoffenceiscompoundedinaccordance withsubregulation(1)andproceedingarebroughtagainst theoffenderforthesameoffence,itshallbeagood defencefortheoffendertoprovetothesatisfactionofthe courtthattheoffencewithwhichtheoffenderischarged hasbeencompoundedundersubregulation(1). Cap.20 (3)Whereanypersonisagrievedbyanyorderunder subregulation(1),hemaywithinthirtydays,appealagainst suchordertotheHighCourtandtheprovisionsofthe CriminalProceedureActshallapplytoeverysuchappealas ifitwereanappealagainstsentencepassedbyadistrict courtintheexerciseofitsoriginaljurisdiction. (4)Wherethepersonfailstocomplywiththeorder issuedunderthisregulationwithinthirtydays,theAuthority: (a)shall,inadditiontothesumordered,requirethe persontopayaninterestattherateprescribedin theregulations;and (b)mayenforcedtheorderinthesamemannerasa decreeofacourtforthepaymentoftheamount statedintheorder. Transitional provision 24.TheseRegulationsshallnotoperatetoaffectin aprejudicialwaytherightsofanypersongrantedorany contractenteredpriortothecommencementofthese Regulations. Authorityto supplement procedures 25. Whereproceduresforanyspecificmatteror thingarenotprovidedforintheseRegulations,theAuthority shallendeavourtodowhateverisnecessaryandpermitted byanywrittenlawtoeffectivelyandcompletelyadjudicate onthematterorthing. Standards ofequity 26.-(1)TheAuthorityshall,intheexecutionoftheir duties,strivetoachievethehigheststandardsofequity, takingintoaccount (a)equalityofopportunitytoalltenderers; (b)fairnessoftreatmenttoallparties;and (c)theneedtoobtainthebestvalueformoneyin termsofprice,qualityanddeliveryhavingregard tosetspecificationsandcriteria. Fertilizer(BulkProcurement) GN.No.49(Contd.) 15 (2) AllmembersoftheTenderCommitteeor officers ofthe Authority shall,when undertaking or approvingprocurement,beguidedbythefollowingbasic considerations (a)theneedforeconomyandefficiencyintheuse ofBulkProcurementSystem; (b)thebestinterestsingivingalleligibletenderers equalopportunitiestocompeteinprocurement orexecutingcontractsunderBulkProcurement System; (c)the importance of integrity,accountability, fairnessandtransparencyintheprocurement process. (3)TheAuthorityshallmaintainadequatewritten records of all procurement, selection or disposal proceedingsinwhichitisinvolved,andsuchrecordsshall prescribetendererswhohaverespondedtoinvitation to tenderorexpressionofinterest,thesuccessfultenderers, theunsuccessfultenderersandthereasonsthereof. FIRSTSCHEDULE (Madeunderregulation7(3)) LISTOFFERTILIZERSTOBEPROCUREDTHROUGHBULKPROCUREMENTSYSTEM 1. UREA; 2. Di-AmmoniumPhosphate(DAP) 3. Calcium AmmoniaNitrate(CAN); 4. AmmoniumSulphate(SA); 5. NPKs;and 6. AnyotherfertilizerastheAuthoritymaydetermineanddeclare. Fertilizer(BulkProcurement) GN.No.49(Contd.) 16 SECONDSCHEDULE M(adeunderregulation18) PENALTIESFORTHEBREACHOFBULKPROCUREMENTSYSTEM OFFENCE PENALTY ADDITIONALPENALTY DelaytoopenLCorto makeprepayment 0.5USDpermetricton  Notto be allowed to participate in tenders untilwhentheproduct paidforandallpenalties havebeenpaid  Paydemurrageresulting fromfailuretoopenLC Fertilizerdealerfailureto make arrangement to receive the ordered quantity including paymentofwharfage 0.5USDpermetricton Pay allcostassociated with failuretomakearrangementto receive/orderedquantitysuchas demurrage Fertilizerdealerrefusalto take part in day to businessoftheAuthority three million Tanzanian shillings and one million for eachdayofcontinuity ofbreach Failure to make arrangementto receive theorderedquantity Five million Tanzanian shillings and one million for eachdayofcontinuity breach Pay demurrage resulting from failure to receive the ordered quantity Importer acts which endangersthesecurityof supply such as late delivery. 0.5USDpermetricton perday  Paydemurrageresulting fromcascadingeffect  InvokethePerformance Bondaspertheterms and conditions ofthe contract Importer bring off specificationproduct One hundred million Tanzanianshillings  InvokethePerformance Bondaspertheterms and conditions ofthe contract.  Paypenaltiesasperthe shipping and supply contract  Beingblacklisted Conducting malpractice(s) when fiftymillionTanzanian shillings  Suspended to participate in the Fertilizer(BulkProcurement) GN.No.49(Contd.) 17 OFFENCE PENALTY ADDITIONALPENALTY receiving fertilizerfrom thedeliveryvessel subsequent Bulk Procurement System tenders OFFENCE PENALTY ADDITIONALPENALTY Contaminating fertilizer afterbeingconfirmedthat thefertilizerconform to the approved specifications FiftymillionTanzanian shillings  As stipulated in the shipping and supply contract  Invoke the bank guarantee or performancebond  Pay all cost associated with evacuation of contaminatedproduct DaresSalaam, CHARLESJOHNTIZEBA 10thFebruary,2017 MinisterforAgricultureLivestockand Fisheries