AGREEMENT FOR THE GRANT OF BIS LICENCE

(FOR USE BY THE FOREIGN MANUFACTURER)

(On Rs. 100=00 non judicial stamp paper, to be attested by Notary Public)

 

THE AGREEMENT MADE AT NEW DELHI ON THIS ……… DAY OF………………..…. MONTH ……….. YEAR, BETWEEN Bureau of Indian Standards, a body corporate established under the Bureau of  Indian Standards Act, 1986 having its Head Office at Manak Bhavan, 9, Bahadur Shah Zafar Marg, New Delhi-110 002 (hereinafter referred to as "BIS", which  expression shall include its administrators, assigns, agents and or representatives) of the one part,

AND

M/s……………………………………………………, a foreign manufacturer having its Office at ………………………………………………………………. and a Liaison / Branch office / office of its legally appointed Agent, namely, Mr./Ms……………………, located in India at ………………………….………….. (hereinafter referred to as the "manufacturer" which expression shall include its heirs, and or assigns) through Mr./Ms……….……  ……….(its Managing Director/ Proprietor/ partner or authorized signatory, as the  case may be) :

 

WHEREAS BIS has been established by the Bureau of Indian Standards Act, 1986 for harmonious development of activities of Standardization, Quality Certification & Marking of goods and for matters connected therewith or incidental thereto;

 

AND WHEREAS in furtherance of its functions as provided in the BIS Act, 1986 and in particular to provide service to foreign manufacturers, BIS is empowered to grant Certification Mark Licence for foreign manufacturers of articles and processes;

 

AND WHEREAS under BIS Act, 1986 BIS is authorized to grant BIS licence for use of the BIS Standard Mark by the foreign manufacturer on its such products, which conform to the relevant Indian Standards, and the grant of such licence is subject to the manufacturer complying with the norms laid down by BIS from time to time;

 

AND WHEREAS the foreign manufacturer has applied to BIS for grant of BIS licence under BIS Act, 1986 and BIS after satisfying itself about the capability of the manufacturer and that it satisfies the requirement as laid down in BIS Act, Rules and Regulations, and the terms and conditions of the licence, has decided to GRANT to the manufacturer BIS licence on the terms and condition hereinafter mentioned.

 

Now the parties hereto agree as under:

 

1.         DEFINITIONS:

 

In this Agreement, unless the context otherwise requires,

 

1.1              “BIS licence” means a licence granted under Section 15 of the BIS Act, 1986 to use the Standard Mark in relation to any article or process, which conforms to the Indian Standard.

 

1.2              “Manufacturer” means a business enterprise engaged in the manufacture of any article or process, situated at a stated location or locations, that carries out and controls such stages in the manufacture, assessment, handling or storage of a product, that enables it to accept responsibility for continued compliance of the product with the relevant Indian Standard and undertakes all obligations in that connection, with regard to grant of BIS licence to foreign manufacturer, under the Scheme.

1.3              “Recognized laboratory” means any laboratory in India or abroad recognized by BIS for the purpose of testing conformance of product to the relevant Indian Standards.

 

1.4              “Product” means the products to be marked with BIS Standard Mark.

 

1.5              “Authorized Representative” means the person, located in India, nominated and legally appointed by the manufacturer for the purpose of compliance with terms and conditions of this Agreement and provisions of BIS Act, 1986 and Rules and Regulations framed thereunder and shall be deemed to be a person having ultimate control over the affairs of the manufacturer for the purposes of this Agreement.

 

2.         FEES

 

2.1       In consideration of BIS granting licence to the manufacturer and the manufacturer agreeing to abide by the provisions of this Agreement and the various obligations and responsibilities and BIS performing its part under the BIS Act, 1986, the manufacturer shall pay to BIS the necessary fees, as applicable from time to time, under the scheme such as advance minimum marking fees, renewal application fees, annual licence fees and marking fees calculated on actual production marked and any other fees as determined under the BIS (Certification) Regulations, 1988.  The manufacturer also agrees to bear all expenses, including cost to BIS of the man-days spent by BIS inspecting officer(s) in connection with the inspection at the manufacturing premises and / or at the testing laboratory (from the time of departure from the place of posting till return thereto), and testing charges as the case may be, as decided by BIS in its absolute discretion.

 

3.         NOMINATION

 

3.1       The manufacturer shall nominate and appoint a person as his Authorized Representative located in India after obtaining all necessary permission / sanctions, if required, under the Indian laws, setting out the terms and conditions of such appointment in writing, whose nomination shall be duly communicated to BIS in writing.  The authorized representative may either be in-charge or a senior officer of the Indian office or a legally appointed agent of the manufacturer in India.  The nomination by the manufacturer shall be given on letterhead in the format prescribed.

 

3.2       The form containing nomination of the Authorized representative by the manufacturer either at the time of execution of this Agreement or at the time of fresh appointment during the continuation of this Agreement, shall also contain the signature of such Authorized Representative who has been so appointed, in token of his/her consent and confirmation of the terms and conditions of this Agreement and to signify his willingness for compliance of various provision of Agreement/ BIS Act, 1986 and Rules and Regulations.

 

3.3       The Authorized Representative appointed shall be deemed to be a person having ultimate control over the affairs of manufacturer in India for the purposes of this Agreement and as such shall be responsible for all due compliance of terms and conditions of this Agreement as also provisions of BIS Act, 1986 and the Rules and Regulations made thereunder and shall continue to be so till another Authorized Representative is appointed in his place in accordance with the terms of the Agreement.

 

 

 

3.4       The Authorized Representative shall remain bound to comply/adhere to the terms and conditions of this Agreement, the provisions of BIS Act, 1986 and Rules and Regulations for and on behalf of manufacturer and thus shall be responsible and liable for all the acts and omissions and violations of the terms of the agreement/ provisions of BIS Act, 1986, Rules and Regulations framed thereunder in his personal capacity.

 

3.5       The manufacturer shall ensure that his Authorized Representative does not remain un-represented at any time during the continuation of this Agreement, on account of any reasons whatsoever and shall further ensure that the Authorized Representative already nominated is substituted or another Authorized Representative is freshly nominated in the records of BIS well before the incumbent Authorized Representative is relieved of his obligations/ liabilities under this Agreement. It is understood and agreed between the parties that this clause is an essence of this Agreement and any violation of this clause shall authorize BIS to terminate/ determine this Agreement forthwith, whether formally determined or terminated or not, and take steps for cancellation of his licence. It is agreed that such determination will be without prejudice to the other rights of BIS available to it under the BIS Act and Rules and Regulations framed thereunder or under this Agreement.

 

3.6       BIS shall be entitled to terminate this Agreement forthwith in the event it is revealed to or comes to the knowledge of BIS that the manufacturer has failed to comply with the terms of this clause except that in the event of death of Authorized Representative during the continuation of this Agreement, the manufacturer shall be entitled to nominate a new Authorized Representative within twenty one days of the date of death of such Authorized Representative failing which provisions of clause 3.5 shall apply mutatis-mutandis.

 

3.7       It is agreed that in the event the Authorized Representative nominated by manufacturer severs his/her relationship/ connection with the manufacturer and no new Authorized Representative is appointed in his place in terms of clause 3.5 hereinabove by manufacturer before earlier Authorized Representative  being discharged/ relieved well within the time, then notwithstanding determination/ termination of this Agreement, the earlier Authorized Representative shall remain liable and responsible for all the acts / omissions or violations of the terms and conditions of this Agreement or provisions of  BIS Act, Rules and  Regulations framed thereunder, committed till the time of his resignation / discharge.

 

3.8       The word “manufacturer” and “licensee” mentioned in the agreement shall mean and include “Authorized Representative” unless it is repugnant to the context.

 

4.         ACCEPTANCE OF TERMS AND CONDITIONS

 

4.1       The licensee and his/her Authorized Agent agree to abide by all the terms and conditions of grant of licence as per the BIS Act, 1986, Rules and Regulations made thereunder.

 

5.         RIGHTS AND RESPONSIBILITIES OF LICENSEE

 

5.1       The BIS licence granted to the manufacturer shall only be with respect to …..…………... (mention product) as per IS ………………. (mention IS Number).

 

5.2       Rights and responsibilities of the licensee shall be as conveyed to him / her by BIS from time to time, and the licensee shall abide by the same.

6.         PERIOD OF VALIDITY OF BIS LICENCE / RENEWAL THEREOF

 

6.1       BIS licence shall be valid for the period as expressly stated therein, and shall automatically expire thereafter, unless specifically renewed in writing by BIS for any further period.

 

6.2       In case an application for renewal of the licence is submitted by the licensee to BIS (during the period of validity of the licence, or within such period from the date of expiry thereof as may be stipulated by BIS, BIS may consider renewal thereof for a further period as deemed proper by it.

 

6.3       During the pendency of consideration of such application for renewal, the licensee shall not make any claim regarding holding of such licence, and nor shall be entitled to mark the article or process upon expiry of the licence, till such time that the licence is renewed by BIS in writing for any further period.

 

7.         CANCELLATION OF LICENCE

 

7.1       Licence may be cancelled by BIS in any one of the following circumstances:

 

7.1.1    The licence has been used by the licensee for purposes other than for which it has been granted;

 

7.1.2    The licensee has suppressed material facts and / or information at the time of grant of licence or subsequent thereto;

 

7.1.3    The articles marked with the Standard Mark under BIS licence do not conform to the related Indian Standard or Standards;

 

7.1.4    The licensee had used the Standard Mark in respect of a process, which does not come up to the related Indian Standard or Standards;

 

7.1.5    The licensee does any act inconsistent with the provisions laid down in the BIS Act, 1986, and Rules and Regulations framed thereunder; and

 

7.1.6    The licensee fails to provide reasonable facilities to any Inspecting Officer to enable him to discharge the duties imposed on him; or

 

7.1.7    The licensee violates or commits breach of any terms and/or condition of the BIS Licence, whether by way of an act of commission or omission.

 

8.         SUSPENSION OF LICENCE / STOP MARKING ON PRODUCT

 

8.1       A licence may be suspended by BIS on request from the licensee, if the operation(s) in his premises can no longer be carried due to:

 

8.1.1    Natural calamities such as flood, fire, earthquake, etc.

 

8.1.2    A lock-out declared by the licensee’s management.

 

8.1.3    Closure of operations directed by a competent court or statutory authority.

 

 

8.2       If, at any time, BIS has sufficient evidence that the product carrying the Standard Mark may not be conforming to the Indian Standard, the licensee shall be directed to Stop Marking of such product.  Such evidence is not limited to, but may include one or more of the following situations:

 

8.2.1    Non-conformance of products established after factory or independent testing.

 

8.2.2    Non-implementation of the provision(s) of the Scheme of Testing and Inspection.

 

8.2.3    Non-availability of testing personnel and no alternate arrangements made.

 

8.2.4    Significant modification(s) in the manufacturing process, plant, machinery etc without prior evaluation and approval of the Bureau.

 

8.2.5    Relocation of plant and machinery.

 

8.2.6    Prolonged closure of factory.

 

8.2.7    Marking non-conforming products.

 

8.2.8    Marking on products other than those included in the licence.

 

9.         TERMINATION OF AGREEMENT

 

9.1       The licensee violates or commits breach of any term or condition of this Agreement, whether by way of an act of commission or omission.

 

9.2       The licensee can also terminate the Agreement by giving 30 days notice in writing addressed to Head, Central Marks Department – I, BIS, 9 Bahadur Shah Zafar Marg, New Delhi–110 002, by registered AD post or by a notice delivered by hand.

 

9.3       On determination / termination of the Agreement, the manufacturer shall forthwith cease to apply Standard Mark on any of the product manufactured / marketed by manufacturer and shall immediately furnish a statement to BIS indicating the details of the product so manufactured / marked prior to termination of Agreement or BIS licence and shall comply with all directions that may be conveyed by BIS to it.  Manufacturer shall also clear all liabilities, financial or otherwise, towards BIS and shall return the original licence document along with all endorsement to BIS.

 

10.       INDEMNITY

 

10.1     The manufacturer agrees and fully understands that under the product certification scheme of BIS under which the licence is granted, the responsibility of conformance to the relevant Indian Standard with respect to products is solely on the manufacturer. The manufacturer, therefore, agrees to indemnify BIS for all claims / damages arising out of its manufacturing of products and / or non-conformance to the relevant Indian Standards that may be made against BIS by any person / firm / company / association / consumer, etc.  The manufacturer agrees and undertakes to execute an Indemnity Bond, in a language acceptable to BIS, as per the prescribed format, indemnifying and holding BIS harmless in respect of any third party claims with regard to conformance of products manufactured by the manufacturer on which the Indian Standard Mark is marked, to the relevant Indian Standard.

 

10.2     The manufacturer further undertakes to furnish a Bank Guarantee, as per the prescribed format for USD 10000 (US Dollars Ten Thousand only) in favour of BIS, for due compliance of the provisions of the BIS Act, 1986 and the Rules and Regulations framed thereunder, and the terms and conditions of the licence.  In case of any breach thereof, BIS shall be entitled to invoke the Bank Guarantee at its sole discretion, whose decision in that regard shall be final and binding on the manufacturer.

 

11.       AGREEMENT PERIOD

 

11.1     This agreement comes into force from the date of grant of licence and till the period for which it is granted / renewed and until withdrawn / terminated or cancelled by either party in accordance with the terms of this agreement.

 

12.       JURISDICTION

 

12.1     If any dispute arises between the parties to the agreement including touching, interpretation/ meaning of any of clauses the Agreement or respective rights / obligations / liabilities of the parties to this Agreement, courts at Delhi alone shall have the jurisdiction to entertain, try and resolve such claims / rights / disputes.

 

12.2     For the purposes of this Agreement, the address of the manufacturer shall be its / his / her address given in India hereinabove, while that of BIS shall be as mentioned hereinabove.  All notices / letters addressed to and or delivered at the said address shall be deemed to have been issued / delivered to the respective parties.

 

IN WITNESS WHERE OF THE PARTIES HERETO AFFIX THEIR SIGNATURES:

 

In the presence of:

 

BIS                                          Manufacturer

 

Witnesses:

 

       1. 

 

       2.