BACKGROUND:

The Competition Commission of Pakistan took notice of the news items appearing in the daily Business Recorder on January 19, 2010, January 22, 2010 & January 28, 2010 and appointed Enquiry Officers to verify whether the terms and conditions of the TCP tenders, floated to import 500000 MT of refined sugar, were preventing restricting or reducing competition in the relevant market in violation of the provisions of Section 3 and/or 4 of the Ordinance.

The Enquiry Officers submitted their Preliminary Enquiry Report dated February 09, 2010 before the Commission pointing out that certain clauses of the terms and conditions of Tenders were found to be potentially of concern. These clauses were: i) Clause 2 wherein Solution Colour ICUMSA Unit Max. was fixed at 120, Sulphur Dioxide mg/kg was fixed at 15.0 ppm and Copper mg/kg, Max. was fixed at 2.0, ii) Clause 6 wherein the packing bags dimensions were given, iii) Clause 10, which provides that the bids were to be submitted personally and no bid through courier or fax shall be accepted, iv) Clause 15 where minimum quantity of shipment was fixed and then time period for subsequent shipments were also fixed, iv) and Clause 19 wherein it is provided that transhipment is not allowed and no other cargo is to be shipped along with the sugar.

ORDER:

The matter was disposed of vide Order dated 12-02-2010. It was held in the Order that, the concerns expressed by the Commission and the objections raised by the parties present vis-a-vis the terms and conditions of the tender TCP has agreed to the following:

• The tender to be opened on the February 13, 2010 has been merged with the tender scheduled for February 15, 2010. Accordingly, the quantity of sugar for tender scheduled for February 15, 2010 shall be enhanced to 2,00,000/- MT and shall now be opened on February 17, 2010;

• The conditions in clause 15(a) of the Terms & Conditions for the tenders relating to shipment will be amended, which shall read as follows:

“First shipment of at least 12,500 MT 5% MOLSO within three (3) weeks (excluding voyage time) from the date of opening of L/C and subsequent shipments within the period of the contract and in a manner so as to ensure no less than the minimum shipment i.e. 12,500 MT 5% MOLSO on average per week.”

• The terms and conditions of the Tenders will be amended to allow containerized shipment as an option on established international terms and conditions;

• Transshipment in the case of containerized shipment will be allowed in the terms and conditions of the tenders.

TCP was directed to issue a corrigendum in terms of the above in two news papers of national circulation, the following day positively and to take all necessary actions in this regard.

CURRENT STATUS:

Order has been complied.