THE UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON
ISSUED DATE: 09/17/00
LOGISTICS/ACQUISITION OPERATING PROCEDURES
REVISED DATE: 01/03/03
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PROCUREMENT
SUBJECT
2.75
PROCUREMENTS FROM FOREIGN SUPPLIERS
GENERAL INFORMATION
This procedure establishes guidelines to receive quotations from and place orders with foreign suppliers.
AUDIENCE
Applicable to all Procurement Staff and designated Satellite Buyers.
GENERAL GUIDELINES
1.
Due to foreign currency exchange rates and customs regulations. The Buyer shall inform and work with the
Purchasing Agent on all solicitations to, and orders from, foreign suppliers
2.
Prior to solicitation, evaluation and award, all requests for products and services from foreign suppliers that meet the
requirements established under Logistics/Acquisition Procedure 2.33, “Procurement Review Process”, shall be
reviewed by the Contract Administration and the HUB Program Coordinator.
PAYMENT GUIDELINES
1.
Firm price quotations in U.S. dollars will be solicited from the foreign supplier, and the supplier’s national currency
will be determined (e.g., British pounds, German marks, Swiss francs, etc.). If the supplier is unwilling to quote in
U.S. dollars, a quotation in the currency specified by the supplier will be accepted.
2.
If the quotation is in a foreign currency, it will be converted to U.S. dollars for purposes of preparing the purchase
order. The conversion will be based upon the New York foreign exchange selling rate on the date of the quotation,
as published in the Wall Street Journal. A reference copy of the exchange rates will be maintained in the
Logistics/Acquisition.
3.
The supplier will be advised that payment will be tendered in U.S. dollars, regardless of the currency specified in the
quotation. The supplier will be asked whether an exchange fee will be charged, and the amount of any such charge
will be shown on the purchase order.
4.
The Purchase Order will be prepared to show all prices in U.S. dollars, with additional information showing the date
of the quotation and the exchange rate.
5.
Accounting personnel will determine the exchange rate on the date the invoice is processed for payment and adjust
the purchase order price(s) to reflect any changes in the exchange rate. The following formula can be used to
calculate the adjustment:
(Eri/Erq) X (PO Price) = Adjusted Price
Where ER1 = Rate of Exchange on Invoice processing date, and
ERq = Rate of Exchange on Quotation date.
This formula should be applied to each price shown on the purchase order, including the exchange fee. The formula
will adjust prices upward if the rate of exchange changes in favor of the foreign currency and downward if the
change favors the U.S. dollar.
6.
Accounting will remit the adjusted price to the supplier as payment in full.
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EXCEPTIONS
There will be no exceptions unless by formal addendum to this procedure or other formal written exception by the Purchasing
Agent.
REFERENCES
Logistics/Acquisition Procedure 2.10 (Best-Value Procurement)
Logistics/Acquisition Procedure 2.33 (Procurement Review Process)
2.75
Procurements From Foreign Suppliers
Approved: Jeffery Bonnardel, C.P.M.
Chief Purchasing Agent
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