chensihong@chensihong.org;chensihong@cableplus.com.cn
chensihong@chensihong.org;chensihong@cableplus.com.cn
www.australia-brazil-china-india-iron-ore-bulk-vessel-ship-shipping.com
www.chensihong.org
Dear
partner,
please find herewith our FCO for
Bauxite.
Commodity: BAUXITE ORE
Quantity:
4,00,000MTS+or -
10%at Sellers' Option (400,000MT +/-10% at Seller's option)
Unit of measurement in this offer is metric tons
of weight (MTW or MT).
Months are calendar months
according to the Gregorian calendar.
The quantity
of goods will be confirmed on a certificate issued by the independent
International survey company 'SGS'' (Societe
General de Surveillance) FOB at
Sellers expense.
Other quantity Inspections if any shall be at the buyer's expense.
Quality Specifications:
CHEMICAL (ON DRY BASIS)
Al2O3 : 50 -52 %
Fe2O3 :
9% Maximum
SIO2 : 3% Maximum
TIO2 : 2% Maximum
PHYSICAL
(ON NATURAL BASIS) :
Size : 25 - 100 MM ( 15000
M.T)
0 - 15 MM ( 15000 M.T)
Delivery Basis and Terms:
The seller shall deliver the goods under delivery
conditions; FOB port of shipment
(Port of
loading) in accordance with INCOTERMS-2000.
The
load port shall be VIZAG /ADANI / PORBUNDER.
Country of Export: India
The Seller shall effect the first shipment of
15000 MTS within 30 days from the date of communication of acceptance of
Letter of Credit by the seller & thereafter 15000 MTS every 15 days.
In accordance with INCOTERMS 2000, risk of loss
or damage of the goods and any additional charges arising after the
transfer of the goods over the hand-rail of a vessel in the port of
loading shall pass from Seller to the Buyer.
Title for the goods will pass from Seller to the
Buyer upon clearance of funds into the Seller's account
The quality of goods stated in the SGS Report at
the port of loading and or WR (Warehouse Receipts) shall be conclusive
evidence of the quality of goods delivered.
Chartering, Allocations of Vessel & Shipping
Schedule
All vessels to carry Ores under this
contract shall be chartered and allocated by Buyer. Buyer should provide
geared vessel suitable for loading by net slings.
The vessel holds shall be clean and free of
foreign materials, which might result in admixture and/or contamination
of Ore.
Buyer shall advise Seller for vessel's
allocation at least 7 days prior to the vessel's expected arrival date
(ETA) at the loading port. Seller shall confirm acceptance of Buyers
nomination of vessel within two working days after buyer nomination.
Such allocation shall include the name of vessel, type of vessel and
hatch division.
In the event of any change being
made in the vessels' allocation, Buyer shall advise the same promptly to
Seller for Seller's confirmation.
Buyer shall
arrange that the vessel's crew open and close the hatches and remove and
replace the hatch beams as necessary.
Buyer shall
arrange that Master of the vessel or vessel's agent at load port gives
Seller three notices of the ETA at the loading port. The first notice is
to be given 7 days prior to the ETA and third to be given 24 hours prior
to the ETA. In the last notice, the Master shall advise the approximate
quantity of Ore required to be loaded with tolerance agreed for the
vessel.
Shipping Terms/Loading Terms
Seller shall be liable to load ore on board
vessels allocated by Buyer at Indian port, vessel being always safely
afloat.
Loading Rate
Seller shall load Ore aboard the vessel at a
minimum loading rate of 6000 Wet Metric Tons per Weather Working Day of
24 consecutive hours,Sundays and Holidays excluded, basis four (4)
working cranes, each of minimum 20 tons capacity fitted with minimum 6
m3 grabs suitable for iron ore handling.
Demurrage & Dispatch Money
Rates of demurrage per day fraction pro rata for
all time lost and dispatch money per day fraction pro rata for lay-time
saved at the loading port shall be as follows:
Demurrage: US$ 6000per day, fraction pro rata for
lay-time lost.
Despatch: US$ 3000per day,
fraction pro rata for lay-time saved
Tender of
Notice of Readiness
Notice of Readiness to load
shall be tendered and accepted on any days except statutory holidays at
any time in and out of office hours after the vessel is in free pratique
with clean holds and is ready in every aspect to load, whether in berth
or not.
Commencement of Lay-time
Lay-time for loading shall commence from NOR
tendered with clean holds, hatches open and ready in all respects to
load at any time after vessel has arrived at the loading port whether in
berth or not.
However, in the event of vessel not
being ready to receive cargo or Seller cannot commence loading afterNOR
tendered by reason that the vessel has not been cleared through customs
or any other clause due to vessel's fault, NOR shall be deemed as
tendered and accepted upon customs clearance or upon vessel being ready
to receive the cargo.
Lay-time used shall cease
to count immediately upon completion of loading and weight
determination.
Counting of Lay-time
Time lost due to fitting of grabs:
Time lost due to fitting of grabs on board vessel
till the time the grabs are ready for loading shall not count as
lay-time used.
Shifting of vessel from one
anchorage to other:
Time lost for shifting of the
vessel from one anchorage to another shall not count as lay time used if
shifting is ordered by master of the vessel.
Time
lost due to non-operability of Vessel's gears caused by breakdown, etc:
In case of any stoppage due to non -operability
of any vessel's gears/ grabs caused by breakdown or any other clause
attributable to the vessel, the proportionate time for the number of
gears/ grabs not in operation shall not count as lay time used.
Draft Survey (s) and Weight Determination:
Time used for draft survey(s) to determine Bill
of Lading quantity should not count as lay time used. The Buyer shall
make necessary arrangement in advance with the respective Ship owner of
the vessels to conduct such draft survey(s) within normal time.
Bad Weather
Bad weather
will be declared to the master of the vessel by normal procedure.
(Normal procedure in this case means that a daily log report
incorporating the details of the time lost due to bad weather shall be
submitted to the master of the vessel. The log report shall be used as a
data for the statement of facts, with which only lay days statement
shall be made)
Counting of lay time for vessels
on demurrage
Running of lay time shall not be
interrupted for any vessels on demurrage unless loading of the vessel is
hindered due to the fault of the vessel or owner or his servants.
Buyer and Seller shall mutually agree and confirm
the lay time calculation for the shipment within (30) days of sailing of
the vessel from the loading port. Any demurrage payable by Seller to
Buyer or any despatch money payable by Seller to Buyer shall be settled
along with the paymentof the L/C.
Completion of
Lay-time
Lay time shall cease to count
immediately upon completion of loading and trimming.
Demurrage/Dispatch
Demurrage per day of 24 consecutive hours for all
running time lost and despatch money per day for lay time saved, both
fractions pro rata.
Lay-days statement at the
loading port shall be prepared on the relative Bill(s) of Lading
quantity.
Holidays
Holidays at loading port shall be only those days
declared as Charter Party holidays by Government or their competent
authorities.
Statutory Holidays
Seller shall inform Buyer statutory holidays
according to the declaration of competent authorities.
Overtime
Overtime of Port
Authorities and/or any other Government agencies relating to the vessel
shall be for Ship Owner's account. Ship's crew and officer's overtime
and expenses such as vessel's power, light, gears, grabs and winches
shall be for Ship Owner's account.
Price and
Total Amount of Contract:
US$ 63.88 PMT FOB
Indian port (United States Dollars Sixty Three Per Metric Ton)
PERFORMANCE BOND:
The
Seller shall establish non-operative performanceguarantee for 2 % of the
value of one shipment quantity within 5 working days from the date of
signing of the contract. This Performance Guarantee Bond shall become
operative as soon as the L/C established by the Buyer, is accepted &
confirmed by sellers bankers in India.
PAYMENTS:
Buyer shall establish 100% confirmed irrevocable
Revolving Letter ofCredit for 1,20,000 Per month
which shall revolve for 12 months without recourse to the drawer payable
and negotiable immediately at sight against our shipping documents in
India at sellers' counters for 100% (one hundred percent) of the
shipment of 1,20,000 MT (plus 10%).
L.C. shall be
established from an International accredited Prime Bank (One of the top
class 25 Banks) in our favor acceptable to the Indian Bankers.
L.C. shall be valid for shipment for at last 60
days from the date of issuance and should be valid for negotiation for
at least 30 days thereafter from the date of shipment.
L.C. should be irrevocable without recourse to
the drawer.
L.C. should permit confirmation by
our bank in India.
The seller reserves the right
not to load the vessel if the letter of credit does not meet requirement
of the Seller Buyer shall arrange to provide seller a copy of the letter
of credit by e-mail or fax on the day on which it is opened.
Partial shipment permitted though entire
consignment shall be loaded in one vessel & thus L.C. shall permit
negotiation against documents of partial shipment.
Letter of Credit shall be payable by swift
transfer payment by issuing bank upon presentation of the seller's sight
draft(s) for the amount of 100% (hundred percent) of invoice value of
the shipment, accompanied by the
Documents as
stipulated below
DOCUMENTS REQUIRED FOR PAYMENT
The Seller shall provide with each consignment a
full set (3/6) Clean on Board Ocean Bill of Lading signed by an
authorized representative of the shipping line, and showing vessels
stamp and showing 'CLEAN ON BOARD',
A letter of
confirmation issued by SGS that quantity and quality of goods loaded
matches this contract specification.
All of the
relevant documents including the B/L, invoice, packing list, original
certificate will be faxed to the buyer within 7 days after B/L date.
Commercial invoice issued by seller: 6 originals
and 6 copies showing Contract Number, description of Goods, Unit price,
total amount, gross/net weights of the goods.
The
said L/C shall accept third party documents except the invoice
Original certificate of origin issued by Chamber
of Commerce and Industry of the country of export: 3 original and 3
copies
Final Quality certificate issued by SGS in
triplicate
If the Buyer delays the vessel for
loading of the Goods as per delivery schedule date, the Seller is
entitled to store the goods in the port at the Buyers expense and risk
and receive a Warehouse Receipt (WR) that can be used instead of the
Bill of Lading for negotiation & payment.
SELLER'S BANK DETAILS:
..............................
FORCE MAJEURE
Both sides
will be exonerated from their obligation in case of force Majeure event.
Force Majeure is understood as per provisions
under ICC500 and means any event such as fire, explosions, hurricanes,
floods, earthquakes and similar natural calamities, wars, epidemics,
military operations, terrorism, riots, revolts, strikes, industrial
unrest, government embargoes, or other unforeseeable actions beyond the
control of the parties.
The party whose
performance of this contract is prevented by a Force Majeure event must
notify the other party within 7 (seven) days of the effective date of
occurrence, which notice is to be confirmed by a certificate issued by
the local chamber of commerce and Industry, including particulars of the
event and expected duration. Failure to submit such a notification will
prevent the party's exoneration from obligations under Force Majeure
event
The performance of either party's
obligations will be in such a case postponed with the period of the
existence of the Force Majeure event plus a reasonable period for
remobilizing production and shipping. No penalty shall be payable for
the duration of this delay.
Should the delay
caused by a Force Majeure event last for more than I (one) month both
the sides will attempt to agree measures to continue. Should such an
agreement not be reached within 30 (thirty) days from the date of
certified Force Majeure event, the sides are entitled to terminate the
agreement
SELLER'S LIABILITY:
The contract stands performed fully if the
contracted quantity in tolerance limits is delivered in time. 'Date of
delivery' shall be the date on the Bill of Lading.
BUYER'S LIABILITY:
Any
sums which the Buyer is liable as penalties for which no provisions are
made in the L/C shall be paid against invoice issued by Seller and by
bank transfer within maximum 10 (ten) banking days after submission of
the Invoice.
'Scheduled date of Arrival,' means
date when the vessel should be alongside quay and available to take
delivery of the Goods as per both Seller and Buyer's mutual
notifications.
Should the vessel not arrive
within 15 (fifteen) calendar days as from scheduled/notified date as a
result of delays by the buyer at the load port, the Buyer will pay the
Seller penalties at the daily rate of 0.5% (point five percent) of the
value of goods.
Should the vessel not arrive for
loading within or before stated period as a result of the buyer at the
load port, and the goods be stored in the port Warehouse the Buyer will
be responsible for the payment to the port authorities/warehouse
charges.
The payments of the storage costs in
port have no connection with the payment of penalties which are paid
separately to the Seller.
LAW AND ARBITRATON
The Seller and Buyer will try to settle all
disputes amicably. Either party may serve notice on the other requiring
any dispute to be settled within 30 (thirty) days after such notice and,
if not settled to refer it to arbitration in accordance with this
contract.
The arbitration will be heard by one or
more arbitrators appointed by mutual agreement of the parties and in
accordance with the Rules and the Arbitration Act 1996. The award shall
be enforceable in any country, shall be deemed accepted without contest
or protest.
VALIDITY
This
offer is valid for acceptance and for establishing Letter of Credit
before ......April' 05.
Feel free to contact us
anytime, should you have further questions.
Kindest regards,
;chensihong@cableplus.com.cn
www.australia-brazil-china-india-iron-ore-bulk-vessel-ship-shipping.com
www.chensihong.org
