CLAUSE 4 – TIME PERIOD
4.1 The duration of this contract is for a period of (12) months with rolls and extension for 12 months.
4.2 The first delivery shall take place within forty-five (45) calendar days from the date accepted Buyer’s financial instrument.
4.3 The time period for the conclusion of each monthly supply shall terminate once the final batch of current monthly lot has been assessed at the Buyer’s designated discharge port. However, the time period between the first and the final batch not to exceed forty-five (45) days. There shall always be min. 5 working days between arriving ships at the Discharging Port.
CLAUSE 5 – QUALITY
5.1 For the full duration of the agreement, the Seller guarantees that the quality of the product sold will conform to the guaranteed specifications as reported on “Annex A” which constitutes an integral part of this agreement.
CLAUSE 6 – PRICE
6.1 Price Fixed Gross USD$240 Net USD$230
6.2 The Buyer undertakes to nominate a discharge port(s) CIF Both Parties agree to set the price by using the above Unit price.
CLAUSE 7 – PAYMENT AND BANKING PROCEDURES
Payment shall be secured by buyer providing operative or non – operative 100% irrevocable, Non-Transferable Revolving LC of Buyer’s choice to Seller’s Bank.
7.1 Gross USD$240 Net USD$230 of the lifted amount The coverage guarantee amount is to be transfer via swift to seller’s bank bank who in turn respond with 2% PB to Buyer’s Bank within 2 –5 days of confirming the receipt of the required guarantee of Standby LC to the designated correspondent account of seller’s Bank within 3 business days after Standby LC is issued by the Buyer’s Bank value of Once (1) delivery quantity of (50 000 MT) Fifty Thousand Metric Tones from top world bank. After the initial delivery of (50 000 MT) Six Hundred Thousand Metric Tones
7.2 The Banking procedures are as follows:
7.2.8 Buyer sends ICPO with Soft Probe Permission from Top Bank.
7.2.9 . Seller sends FCO and draft of contract for amendments if necessary.
7.2.10 Buyer returns signed acceptance of FCO
7.2.11 Buyer/Seller Endorses the Final Contract in Seller’s Office or via
Other arrangement.
7.2.12 Seller Registers the Hard Copy Contract.
7.2.13 Both Parties Lodges the Final Contract with their Respective
Banks.
7.2.14 Seller Appoints and signs Charter Party Agreement with the
Shipping Company.
7.2.15 Buyer contacts Shipping Company and summarizes Shipping schedule,
7.2.16 Seller bank provides Buyer bank the Proof of Product and 2% PB.
7.2.17 Buyer bank Swifts Non-Transferable Stand by Documentary Letter of
Credit to Seller Bank.
7.2.18 Shipment Commences as Scheduled in the Final Contract.