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HMS NO1&2, Used Rail |
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Terms, condition and Procedure for Scrap deal |
CONDITIONS OF PAYMENT & PROCEDURE
Pursuant to Article 12 of CONTRACT NO: Dated XXX, 2005 signed between THE SELLER?S COMPANY & THE BUYER?S COMPANY (referred in this contract as Seller and Buyer respectively) the following has been irrevocably have agreed between the aforementioned parties:
i. Payment for the goods sold under the present Contract shall be done by Documentary Letter of Credit issued by SWIFT in US Dollars. (currency code 840).
ii. Evidencing of the said readiness to issuance will be Bank Confirmation Letter : Addendum D from issuing bank to the Seller stating that the instrument is prepared to be issued. The format of the Documentary LC is per Addendum F.
iii. Bank Confirmation Letter as per Addendum D outlining the complete text of the Documentary Letter of Credit will be sent by facsimile message to Seller?s Fax: Attn: ? Chief Executive Officer; Fax: Attn:? Attorney At Law and by courier-mail to the address.
iv. For the payment of the Goods delivered by the Seller, the Buyer?s Bank (within 5 banking days from the date of signing of this Contract) issues Within Five (5) Banking Days After The Final Contract Signature, The Buyer?s Bank shall issue a Non-Operative Irrevocable , Unconditional, Confirmed, Divisible, Non-Transferable, Revolving Documentary Letter of Credit.
v. On receipt of Letter Of Confirmation, the Seller will courier hard copy of the Final Contract to the Buyer.
vi. Non-Operative, Irrevocable , Unconditional, Confirmed, Divisible, Non-Transferable, Revolving Documentary Letter of Credit will represent XXXXX MT value XXXXXXX United States Dollars payable 100% at sight and negotiable at the counters of the Seller?s Bank.
The Documentary Letter of Credit will be payable 100% at sight upon first written demand to the seller upon the presentation of the following documents in originals:
1. Bill of Lading - 3 Originals and 3 copies of original;
2. Commercial Invoice - 3 Originals and 3 copies of original;
vii. The Documentary LC will be confirmed by an AAA US Bank or Bank acceptable to the Seller and be available for payment at the counters of the Seller?s bank.
viii. The delivery of the first consignment begins within 30-45 days after issuing of the Documentary LC by the Buyer.
ix. The Seller and respectively the Seller's bank, within 5 banking days after receipt and successful verification on bank to bank basis of the Buyer's Documentary Letter of Credit Issues the Performance Bond Guarantee (Addendum E) covering 2% Value of XXXXX MT in form of a Bank Guarantee from Prime World Bank.
x. The Documentary Letter of Credit should be issued or confirmed by a AAA US Bank / World bank and payable at the counter?s of the seller?s bank. The letters of credit shall allow a minimum of twenty one (21) days for the presentation and negotiation of documents but within the expiry period. All must give an allowance of +/ - 5% tolerance.
xi. Issuing of the Documentary Letter of Credit & Performance Bond and transfer of any information to the banks involved as well as to the Parties shall be carried out by SWIFT/TELEX only.
xii. Before the payment instrument is transferred to a designated THE SELLER?S COMPANY bank account, the text of the payment instrument must be reviewed and approved by a representative of GTGI.
PROCEDURE TO BE FOLLOWED FOR THIS TRANSACTION:
1. The Buyer issues Letter of Intent with full banking details to the seller.
2. Seller issues Formal Corporate Offer outlining full procedures and payment terms along with Draft Contract.
3. Buyer signs Formal Corporate Offer and returns with Bank Confirmation Letter & Draft Contract.
4. The Seller through Seller?s Bank issues Proof of Goods along with AQSIQ Number.
5. Upon receipt of the contract signed by the Buyer, The Seller issues Final Contract duly signed by electronic mail. Four hard copies will be sent to the buyer by international courier service. Duly notarized, The Buyer will retain two and return two signed hard copies to the Seller by international courier service.
6. Within Five (5) Banking Days After The Final Contract Signature, The Buyer?s Bank shall issue a By Irrevocable, Confirmed, Freely Transferable, Revolving Documentary Letter of Credit payable 100% at sight against Bill of Lading & Commercial Invoice.
7. The seller?s bank shall issue to the buyer?s bank Operative 2% Performance Bond Guarantee and activate the Buyer?s Letter of Credit.
8. Seller arranges for buyer to visit Yard & Port of Loading to inspect material and witness loading operations. All expenses for the same will be borne by the Buyer.
9. Delivery And Shipment Shall Commence After The Fulfillment Of The Procedure, Stated Above, As Per The Terms And Conditions Of This Contract.
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