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(ANNEX 20)
General Waivers of Procurement Restrictions
7.
Certain general waivers of procurement restrictions have been allowed in the past. These have been modified slightly in the form now set out in Appendix I to this Despatch.
Standard Procedures
8. (a) In cases where Overseas Governments consider that imports not covered by any of the general waivers should be purchased from other than UK sources, this should be indicated in the request for aid or in the C. D. & W. application which should also be accompanied by a request for a specific waiver of the "Buy British" rule (in accordance with paragraph 12).
(b) Unless Overseas Governments request waiver of the "Buy British" rule when the scheme application or project request is submitted, approval of a scheme or project will be given on the understanding that all imports will be obtained from the UK and that the application has been costed on the basis of UK procurement. Should it subsequently be found that other than UK imports are required, it will be necessary for Governments to explain why the need was not apparent at the outset and to seek waiver of the "Buy British" rule (in accordance with paragraph 12) before incurring expenditure.
(c) HMG reserves the right to vary any proposals (consistent with the objectives of the proposed scheme) to permit the substitution of UK for non-UK equipment and material.
(d) No commitment to import goods or services from a non-UK source should be entered into before a waiver has been approved. Waivers will not, in any circumstances, be granted retrospectively.
9.
Employment of Contractors is considered to be direct Government expenditure and the "Buy British" rule applies. There is no objection to the employment of local contractors but a consortium of 'Local' and 'Offshore' contractors (other than UK contractors) is regarded as "Non-Local".
Imports by contractors are subject to the same rules as direct Government imports. Apart from locally produced items and those for which general waivers exist, all goods and services required for the purpose of a contract must be purchased from the United Kingdom unless a prior waiver is obtained. A clause, making this requirement clear must, therefore, be included in all invitations to tender.
If there is need for waiver in respect of contractors' imports, application should be made by the same procedure as for direct government imports.
10.
Where approval has been given for expenditure to be incurred from local funds subject to reimbursement from UK Development funds if and when a formal scheme/project is approved, it will be necessary for the conditions outlined in paras 4 and 5 above to be applied to any such scheme which is ultimately approved. This expenditure from local funds, on imports from a non-UK source will be incligible for such reimbursement unless specific approval has been sought and obtained.
11.
Specific Waiver of the "Buy British" Rule
Specific Waiver of the "Buy British" rule is only granted when it can be demonstrated that the goods or services required, or suitable substitutes, are not available from UK sources or that they are not available
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