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

Supply Chain Operations (SCOPS)

Eskom Shipping Clarification Meeting Presentation 17 September 2019

1

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

2

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 28th of every month.
• The deferment cycle is from 22nd to 21st 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

3

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

Reasons for Evaluating Shipping Costs

4

Eskom Strategy

Supplier CFA Shipping line Mark up Overseas Supplier Mark up Local supplier Mark up Mark up Eskom

5

Thank you

Thank you