*** These Guidelines were valid upto 16th April 2015***

Guidelines for Supply of SKO (Non-PDS) to Parallel Marketers

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1. General Requirement :

1. Parallel Marketers seeking SKO (Non-PDS) supplies either through imports or from indigenous stock should fulfill requirements provided under the scheme of Parallel Marketers vide MOP&NG notification nos. GSR584 (E) dtd. 2-9-1993, GSR509 (E) dtd. 9-6-1995, GSR 510 (E) dtd 19.6.1995, GSR638 (E) dtd. 21-10-1998 and/or any other statutory provision stipulated by the Govt.(Central/State) before their requests are considered
2. Vide Gazette Notification No. GSR405 (E) dtd. 6th July, 2006 amendment to SKO Control Order 1993 was made and Parallel Marketers were allowed to source SKO (Non-PDS) either through imports or indigenously produced stocks
3. The Parallel Marketers should submit required documents as provided under the scheme of Parallel Marketers while furnishing their requests for supply of SKO (Non-PDS) and any other documents needed by Oil Company in this regard. The Parallel Marketers should also submit information as per Annexure –I.
4. On supply of SKO (Non-PDS), the concerned Oil Company shall intimate details of supplies like name of the Parallel Marketer with full address, quantity, supply location, and period of supply to the respective State Government department at the end of calendar month
5. The Parallel Marketers would comply with the guidelines finalized by the respective State Govt. and supplying Oil Company for procurement of SKO (Non-PDS) on inter-state basis

2. SKO (Non-PDS) supplies from indigenous stocks

1. The Parallel Marketers should sign specific agreement for a period separately in the format provided by PSU Oil Cos
2. The Parallel Marketers should possess
   
   1. valid storage license from the competent authority where SKO (Non-PDS) would be stored by them
   2. Sales tax registration
   3. Any other license/registration certificate required by the Govt.(Central/State) in connection with the business of Parallel marketing
   4. The Parallel Marketers should also inform in writing about the detailed plans of Parallel marketing business to the District Collectors where they would be storing / distributing / marketing SKO (Non-PDS) procured under the scheme
3. Parallel Marketer shall put up an indent for requisite quantity at the assigned depot/ terminal of Oil Company along with advance payment by a Demand Draft in favour of Oil Company
4. The Parallel Marketer will also arrange a suitable transport for carrying the same cargo, which must comply with relevant laws like Explosive License, Weights and Measure Certificate, Road Permit, etc. The supplies will be made on ex-MI (Main Installation) basis
5. Supplies would be made at the rates applicable for non-PDS SKO customers, against advance payment only
6. Invoice will be made in the name of Parallel Marketers only
7. Cenvat-able invoice, if applicable, will be made available to the Parallel Marketer, who should have appropriate registration with the Excise Dept

3. SKO (Non-PDS) supplies from imported sources:

1. Parallel Marketers should give total SKO (Non-PDS) demand at the time of placement of indent, so that options can be considered for giving supplies either from indigenous stock (depending on availability) or through imports
2. Application for supply of SKO (Non-PDS) should be made by the Parallel Marketers giving details of parcel size, confirmation of storage facilities, delivery period, destination port etc.
3. Details of facilities with the Parallel Marketers like tankage, pipelines, ship unloading facilities should also be furnished. Currently, no tankage /storage facilities will be made available by Oil Company for discharging of vessel
4. In order to source SKO (Non-PDS) on economical basis, the Parallel Marketers or association of Parallel Marketers should procure parcel size of approx. 25 TMT at one time or as per parcel size restricted based on the available draft at intended destination port. SKO (Non-PDS) would be sold on High-Sea- Sales basis
5. In case of multiple Parallel Marketers joining to import one parcel, there shall be one Lead Parallel Marketer amongst them, who should have a legally-enforceable Power of Attorney, with whom alone the Oil Company shall deal. The lead Parallel Marketer will ensure quick communication and decisions to / from all other Parallel Marketers and Oil Company
6. The Parallel Marketers should sign specific agreement for a period separately in the format provided by PSU Oil Cos
7. Processing fees of Rs.25,000/- per application would be payable by the Parallel Marketers in advance at the time of submission of application. This fee will be adjusted against actual import only
8. Parallel Marketers should submit Demand Draft of any scheduled bank in favour of Oil Company covering 110% value based on the SKO (Non-PDS) price, prevailing on the day of placement of order, equivalent to the quantity of cargo to be imported
9. All imports shall be carried out on CIF basis
10. Facilitation charges shall be charged @ 2.5% of CIF cost of product
11. Customs formalities and payment of Custom duties shall be completed by the Parallel Marketer
12. Wharfage shall be paid by the Parallel Marketer
13. Settlement of Port Charges will be addressed by seller or his vessel owners
14. Demurrage charges @ Rs.500/- Per MT shall be taken in advance. However, actual demurrage shall be charged to the Parallel Marketer, as per the claim lodged by supplier/vessel owner at the time of settlement. While the total demurrage shall be quantified as above, in case of multiple party/multi-port discharge, the demurrage shall be pro-rated among the group of Parallel Marketers as based on B/L quantity, irrespective of whether any B/L holder had contributed to the demurrage or not
15. Handling of tanker/vessel at discharge port will be the responsibility of Parallel Marketers
16. At Discharge Port, the connection of hoses for unloading shall be responsibility of Parallel Marketer. For this a copy of agreement between Parallel Marketer and receiving Terminal shall be furnished by the Parallel Marketer in advance
17. Payment will be made as per the Bill of Lading quantity (B/L). B/L shall be endorsed by the Oil Company for sale on high-sea-basis in favour of Parallel Marketer (importer)
18. The Parallel Marketer will fully comply with the Govt. regulations on dosing of SKO (Non-PDS) with “Marker” as stipulated from time to time
19. Boarding officer would be provided at disport by the Oil Company, with the limited purpose as following:
    
    1. Coordination between the vessel owner and seller vis-à-vis Parallel Marketers (through their Lead Parallel Marketer)
    2. Documentation with regard to commencement and stoppage of pumping, pressure log during discharge, and any other documentation, if any dispute arises prior or during discharge. The documents will be used for final demurrage claim, if any, from the supplier
    3. The boarding officer shall be considered only as a witness to all activities related to discharge on behalf of buyers
20. A confirmation from concerned State Government(s) will have to be produced by the Parallel Marketer that the State Govt.(s) has/have received End Use Certificate for the entire quantity of previous parcel imported by the particular Parallel Marketer before the next order for import of SKO (Non-PDS) is accepted by the Oil Company
21. Oil Industry would review these guidelines after six months depending on the practical experience with regard to release of SKO (Non-PDS) to Parallel Marketers
22. The Partner / Director of the Company (Parallel Marketer) would issue an undertaking on the letter head of the company duly signed by the Partner / Director that the kerosene released under Parallel Marketing Scheme has been released by them to the genuine users, and such undertaking has to be issued before taking next supplies

Annexure –I

Details of Parallel Marketers to be submitted along with the application.

• Constitution of the firm
• Registered Office
• Location and addresses of existing businesses
• Names and addresses of promoters/directors/partners/sole proprietor
• Background and full antecedents of promoters/directors/partners/sole proprietor
• Details of existing operations of the Parallel Marketers and /or his group of companies
• Audited account for last three years
• Performance of Parallel Marketers in his other group companies for last three years
• Marketing plans for Kerosene
• Infrastructure for Kerosene sourcing/handling/storage at all locations with their capacities
• Import locations identified
• Proposed size of import parcels and quantum of product to be imported
• Copies of approvals / licenses (ports / statutory / State Government / Chief Controller of Explosives environment / local authorities)
• Whether kerosene storage facility conforms to code regulations/conditions of storage license
• Storage arrangement for unloading of ship/details of hired or owned tankage and any agreement thereof (lease / ownership)
• Details of Organizational Structure
• Copies of rating certificate issued by the agencies mentioned in the Kerosene Control Orders
• Copies of intimations given and returns furnished to Ministry of Petroleum and Natural Gas, New Delhi
• Any other relevant details