MILL SCALE CONTRACT
This Contract (herein “Contract/Agreement) of Contract Number LP21001 is made on August 8, 2021 (Effective Date) by and between:
LE PACO VENTURE with a business address of [ADDRESS] (herein “Seller”)
V OCEAN GLOBAL SDN. BHD of address [ADDRESS] (herein “Buyer”).
The buyer and the seller shall be jointly referred to as “Parties” and individually referred to as a “Party” to this Contract.
Whereas, the Seller herein agrees to sell and deliver the merchandise and the buyer herein agrees to purchase and receive the merchandise in accordance to the terms and conditions herein.
Now, therefore, in consideration of the foregoing premises, and of the mutual promises and covenants herein contained, the parties, intending to be legally bound, do hereby agree as follows:
- Merchandise Description
For the purpose of this Contract, the term “merchandise shall mean the material referred herein to be sold to the buyer.
The merchandise is a mill scale with less than 3% moisture.
- Quantity of merchandise
- The quantity of merchandise to be sold will be as follows:
- 1000 Metric Tons (+/-5%)
The merchandise shall be loaded into containers.
- Container quantities should not be less than 24 tons in a 20 ft container.
The merchandise shall be packed bulk in containers. Additionally, they should be in loose form for convenience purposes.
- FE 70% Min RM 608/ MT
- Term: CFR Kuantan Port Malaysia.
- Payment is to be based on net dry weight.
- Shipment and Delivery
The shipment and delivery schedule are as follows:
- Loading Port:
Chittagong port, Bangladesh
- Discharging Port:
Kuantan port Indonesia
- Parties to this Contract agree that the merchandise will be shipped wholly. Partial shipment shall not be allowed. In the event the shipment of the merchandise is partial, the buyer shall have the discretion to either accept or refuse to receive the merchandise.
- Transshipment is allowed.
- The Seller shall notify the Buyer at least 2 working days before the shipment date, providing full shipment details.
These details shall entail:
- the name of the vessel, ETD, ETA, G.W., N.W., Dry Weight.
- Free Retention days at destination port
21 days is requested to be applied by the Seller to the shipping company.
- PAYMENT TERMS
The buyer shall make a 30% advance payment after signing this Contract.
65% of the total amount shall be paid against bill of loading.
The final balance of 5% shall be paid after final check on destination port within 14 working days.
- Documents Required for Shipment
- The following documents are required for shipment purposes:
- 2 original and 1 copy of commercial invoice indicating the contract number, Gross weight, Net weight and dry weight
- 2 original and 1 copy of packing list indicating gross weight, net weight, dry weight, container number and seal number.
- 3/3 original OCEAN Bill of Lading. Third party shipper is allowed in the Bill of Lading. The Bill of Lading has to be marked ‘freight prepaid’.
- Quality certificate in 1 original and 2 copies issued by SGS, showing sampling at the loading port, showing the analysis with the results of zinc, moisture and other elements.
- Weight certificate in 1 original and 2 copies issued by SGS at the loading port, indicating container number, seal number, wet weight, net weight, dry weight, and moisture in percentage, showing supervising of loading at the factory or loading port.
- Certificate of origin (third party document is allowed).
- Documents required in clause 6.2 has to be sent by email the copies to buyer within 21 working days from on board date, before seller submitted the original to their bank.
- Banking Details
Seller: Le Paco Venture
Banker Name: Malayan Banking Berhad
Bank Address: 14, Pusat Perdagangan Jalan Bandar, 81700 Pasir Gudang, Johor.
Account No: 551249525892
Branch: Pasir Gudang
Swift Code: MBBEMYKLPSG
- SAMPLING, WEIGHING & ANALYSIS
- SGS or any third-party reputable inspection company will supervise the loading. Weight and moisture certificate will be issued by SGS or the third-party inspection company.
- The Buyer has option to assign staff to oversee the loading proceeding on each shipment.
- Final inspection will be carried out at the destination port. The result after inspection shall be final and binding on both parties. If SGS does not provide a copy of the report within 30 days from cleared Custom, then the loading port results shall become valid for final calculation.
- The Seller shall be responsible for the Inspection charge at the Loading Port.
- The Buyer shall be responsible for the inspection charge at the Destination Port.
- If the difference in moisture / weight in the inspection certificates between loading port and discharging port bears a significant difference between the two said analysis in respect of moisture percentage existed at any stage,SELLER shall consult with BUYER to reconcile such differences. If after consultation between SELLER and BUYER the difference cannot be reconciled, then at the request of SELLER, a third party will analyze the typical sample taken at unloading places and the results shall be final for moisture percentage and binding between both parties. Cost of inspection shall be shared equally by both parties.
- Force Majeure
In the event of any strikes, act of God, war, warlike operations, force majeure, delays in route or of any other case whatsoever beyond the control of Seller or Buyer whether of the foregoing nature or not, preventing them or hindering them or either of them from giving or receiving the delivery under this contract shall be suspended during such time provided any such inability by either party contracting hereto Buyer giving notice under this clause, the contract shall be each time extended for a period equal to the period of suspension. But if such period of suspension extends for more than 60 days, the party having received the notice of suspension shall have a right to terminate the contract forthwith by giving notice of this to the other party.
- Tariffs, Taxes & Charges
The seller shall be responsible for all taxes and charges levied within the loading port country.
The Buyer shall be responsible for all taxes and charges levied within the country of destination.
- Dispute Resolution
All disputes related to the contract and the performance of the contract shall be solved amicably through negotiation by both parties. In the event an amicable resolution is not reached, the parties shall submit the dispute for arbitration in Singapore. The arbitration fee shall be borne by the losing party.
- Amendment of the Contact
Any amendment or modification to this contract shall be made in writing and subject to confirmation by the contracting parties.
Effectiveness of this contract shall come into force after being signed by the duly authorised representative of the Buyer and the Seller.
Bath parties agree that the seller shall arrange an inspection to be carried out by SGS or any equivalant to SGS before shipment.
In witness whereof, this Agreement is duly executed by the duly authorized representatives of the parties as set forth below:
Buyer Signature Date
Seller Signature Date
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