NORBULING RIGTER COLLEGE

(Affiliated to Royal University of Bhutan)

DOTENG, PARO, BHUTAN

Title of the Assignment : Case Study of State Trading corporation

of Bhutan Ltd.

Module Code and Name : BLT101

Module Tutor : SIR. Jan Jos Vankrunkelsven
Date of Submission : October 22, 2018

Submitted by (Name and Std. No.): Ugyen Dema (14180171)

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I hereby declare that this academic work is my own and those derived from
other sources have been appropriately acknowledged. I understand that if
found otherwise, my academic work will be cancelled and no mark will be
awarded besides the legal consequences.

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 STATE TRADING CORPORATION OF BHUTAN Ltd.

BRIEF HISTORY

State Trading Corporation of Bhutan Limited was established in 1968 by the Royal
Government of Bhutan, under the administrative control of the Ministry of Trade and
industry. The corporation was established to assist various government departments to
procure essential commodities from India and few special commodities abroad. On April
1984, STCBL was declared as an autonomous body. Following a government order in
1985, all central stores of the government workshop dealing with spares and parts
imports for all vehicles were merged with STCB. The STCBL was registered as a limited
company under the companies’ act of the Kingdom of Bhutan from March 5, 1996. The
royal government of Bhutan 51% of shares. Whereas to enable public participation in
the activities of the corporation, the government in 1997 floated 49% of its shares in the
open market rendering STCB a joint venture of the Royal Government. The annual
turnover of Nu.841.89 million in 2008 declared a 20% dividend to the shareholders and
a company bonus of 2 months. The company is overseen by the Board of Directors
whose members are a mix of private and public sector professionals.

SPECIALTIES:

Toyota, Tata, Eicher sales & amp; Spares, Explosives, Liugong Earth Moving
Equipments, ICT, Construction Materials, Car Rental, Swaraj Mazda Automobiles,
Pharmaceuticles, Hero Honda Two Wheelers, Automatic Car Wash, Bitumen, Electrical
Machineries

MISSION:

Providing Quality Products and Services through efficient and ethical business
practices.
VISION:

The Paragon of trading house in the region.

Under the STCBL Transporter tender BID document (import) 2017-2019

Section ii

Section ii (23). Payment

 23.2: The STCBL will pay to the transporter as follows:

(a) on Acceptance: 100% of the invoice amount of Goods/Services received shall be
paid within Sixty days upon receipt of the Goods/ Services and of course final
transportation bills.

Section ii (25). Penalty

 25.1: in regards to Sea/ Air LCL shipment any delay more than the allowed transit
period (as per clause12) a penalty @ Nu/ Rs 500.00(Ngultrum Five Hundred) per
truck/trailer/container will be imposed and recovered from the transporter unless
extension clause per 21 has been adhered.
 25.2: In regards to container shipment any delay more than the allowed transit
period ( as per clause 12) a penalty equivalent to container detention charges per
container will be imposed and recovered from the transport unless extension
clause per 21 has been adhered.

Under terms and condition

Section 5. supply of all items should be completed within 30 days from the date of issue
of our purchase order failing of which late delivery penalty @ of 0.1 % of the purchase
order value for every day delay will be levied subject to a maximum rate of 10%.
Purchase order shall be treated cancelled thereafter and will be awarded to the next
lowest bidder. In case of such event, the clause no.10 shall come into force/ effect.
Export unit

Export unit is a newly created unit at STCBL, which functions directly under managing
Director’s Office. It has been quite a long time that STCBL’s business activities were
only confined to import of vehicles, explosives, ICT, and Agriculture and Construction
Equipment. With the objective to diversify STCBL’s business line, the management
initiated to open export unit in the beginning of 2015. With the beginning of its operation,
the unit has actively involved in exporting of stone chips and boulders to Bangladesh
from Bhutan. Besides stone products, the unit is also exploring market potentially for
agricultural product in the countries like Bangladesh and India.

Import

The import of heavy earth moving equipment such as excavators, Bulldozers and angle
dozers has increased from four in 2002 to 331 in 2011, driven by the boom in the
construction sector. Such import from India resulted into an outflow of Rs.1.38 billion for
2011 alone.

IMPACT OF STCBL

I think some of the impact of STCBL will be

(i) Delay in import and export of the goods

(ii) Some of the transporter will transport trucks used for STCBL full cargo load to
other third party so the transporter have to ensure that the trucks used for
STCBL load do not transport to other third party.
 References
BBS report. (n.d.). Retrieved from http://www.bbs.bt/news/?p=22219

Bidding Document for transportation. . (2017). Retrieved from http://www.google.com/url?

sa=t&source=web&rct=j&url=http://www.stcb.bt/wp-
content/uploads/2017/7/2017_Transportation-sec-I-
II.pdf&ved=2ahUKEwjUncb4iJfeAhULW7wKHXxfBuOQFjAEegQIBhAB&usg=AOvVaw1_V9faHoKb8
6HAAzwFs53X:

State Trading Corporation of Bhutan Limited. (n.d.). Retrieved from http://www.stcb.bt/export-unit

STCBL. (n.d.). Retrieved from http://www.google.com/url?

sa=t&source=web&rct=j&urlL:http://stcb.bt/wp-content/uploads/2017/01/TERMS-AND-
CONDITIONS-
2017.pdf&ved=2ahUKEwiTt8uQk5feAhXDU7wKHQzhDnUQFjADegQICRAB&usg=AOvVaw1T1_xG
WCluzAUONLJ8QzFk