(SCOPS) Eskom Shipping Clarification Meeting Presentation 17 - PowerPoint PPT Presentation

Supply Chain Operations (SCOPS) Eskom Shipping Clarification Meeting Presentation 17 September 2019

Background  The objective of performing shipping evaluation is • to foster transparency between prospective Suppliers and Eskom. • to ensure that Eskom complies with all Customs and Excise requirements • to ensure that Supplier’s proposed shipping prices are market related.  This is in accordance Practice Note 6 of 2009 which stipulates that all contracts with foreign procurement elements on them should be concluded in close consultation with Shipping Department .  Clarify the contractual terms of sale. Incoterms @2010  Eskom Procurement and Supply chain procedure 32-1034 section 3.13.5.1 1

Shipping Facilities within Eskom  Utilisation of the recently approved SARS Deferment Account facility (3.13.5.2 of the 32-1034) • Eskom has a deferment account with SARS, this account allows Eskom to pay their customs duties and customs VAT only once a month i.e. 30 days interests free account. • For every customs clearance done, the duties and VAT are deferred to the 28 th of every month. • The deferment cycle is from 22 nd to 21 st of the following month, e.g. 22 October 2019 to 21 November 2019.  Making use of Eskom “ ALL RISKS” Insurance  Utilization of Eskom’s Accredited Marine Surveyors  Utilization of International Trade Agreement (e.g. EFTA, SADC)  Taking advantage of Staged consignment ruling granted to Eskom for the new build projects i.e Kusile, Medupi and Ingula 2

Shipping Tender Evaluation Requirements: In order for us to evaluate the tenders we require the following information from the Supplier: • Description of the commodity to be imported. • Specifications of the dimensions and weight of that particular commodity. • Country of Origin • Sea port/Airport of loading • Sea port/Airport of discharge in SA. • Proper breakdown of the rates supplied by Supplier - Ex works price overseas (value of goods) - Inland Transportation Charges (country of origin ) - Port Charges (country of origin) - Cost of Sea freight / Airfreight - Wharfage - Port Charges (country of destination) - Inland Transportation Charges (country of destination) - Agency Fees, Documentation Fees, Finance Fees - Customs Duties & Customs Vat - Surcharges - Other charges 3

Reasons for Evaluating Shipping Costs Mark up Overseas Supplier Local supplier Mark up Mark up Supplier CFA Mark up Eskom Shipping line Eskom Strategy 4

Thank you Thank you 5