on behalf of the Seller, we are ready, willing and able to sell the commodity under the
terms and conditions stated below:
FULL PRODUCT DESCRIPTION
COUNTRY OF ORIGIN
Used Rails - R-50 and R-65
8...12 meters, after dismantlement and cutting
C : 0.54 - 0.82 %
Si : 0.18-0.40%
Mn : 0.60-1.05%
S : 0.04 % max
P : 0.035 % max &
As : 0.01 % max of Mass share
Norms: R-50 GOST_7173-75
The Scrap consists of R-50 (51.67kg/m) &
As per ISRI Codes 27 to 29
In Bulk (the rails must be neatly bundled and
secured with minimum 2 (two) iron wire)
60, 000 MT per month x 12 months
US$250. 00 per metric tons
CIF Jubail K.S.A
Irrevocable Revolving Letter of Credit,
By SGS at loading Port.
2% of the total value of the contract.
INSPECTION AND PRODUCT QUALITY
The official surveyor for this contract is SGS Russia whose certificates shall be final
and binding on both the parties. The Product shall be inspected by SGS Russia at place
of loading (at the Seller"s cost) under the supervision of the Buyer"s representatives.
The Buyer shall have the right to send his delegate(s) or appoint the counter surveyors
at his expense to attend and inspect the quality during loading and supervision process.
The Seller shall pay for the SGS Russia inspection fees at the place of loading. The
Cost incurred by appointing any other counter surveyors or sending their
representative at the port of loading or at the port of discharging shall be borne by the
The product chemical composition, mechanical property, origin, description of the
places of ********, explosive safety, non-radioactivity, goods identification, conditions
of storage, property rights, random check for QUALITY including item a) to d) shall
be confirmed by SGS Russia before loading at place of loading.
The Goods must exclude any pressurized gas, fuel or other sealed containers,
explosives, bombs and inflammable material.
b) Radioactive Material:
The Goods must exclude any bearing sealed radioactive material, chemical and
medical radiation devices, steel construction scrap which is contaminated with
radioactive material, and also must exclude scrap that has radioactive material
spread along its surface.
The Goods must exclude compressed or free tin cans, nail, bundle, steel rope and
galvanized, tinned, enameled, chromium, copper, lead coated materials, non-
ferrous metals, and foreign material and be free from dirt, oil, excessive rust,
grease, paint pitch.
d) Residual and other alloys:
The Goods should not contain alloyed steel demolished vehicle parts and pig
1. Drafts at sight drawn on the Issuing Bank indicating the DC No. and date.
2. Signed Commercial Invoice in 1 original and 2 copies
3. Full set of original (3/3) plus 3 copies of Non-negotiable clean "On-Board"
Ocean Bills of Lading, Made Out "To order of... .Bank.." and Notify party as
"............." and marked "Freight Prepaid".
Bill of Lading must specify the following:
a. Actual Port of Loading
b. Actual Port of Discharge
c. The name, address and telephone No. of the Shipping Agent at the Port
4. Certificate of origin in 1 original and 2 copies.
5. Packing list in 1 original and 2 copies showing packing conditions.
6. Certificate of draft weight issued by authorized and Independent Surveyor
(SGS) at the loading port in 1 original and 4 signed copies.
7. Quality loading report issued by SGS in 1 original and 2 copies
8. Certificate of quality and quantity (Pre-shipment inspection) issued by SGS in
1 original and 2 copies
9. Insurance policy in duplicate issued unto order 110% of the CIF value of goods
from port of loading to port of discharge covering all risk as per Marine
Institute Cargo clauses "A", Institute Strikes Clauses (Cargo), Institute War
Clauses (Cargo) and Institute Radioactive Contamination Exclusion Clause
10. Seller"s statement certifying that one set of copy documents has been faxed to
the Buyer at its Fax No..... within 10 days after shipment.
1. Buyers issues LOI to Seller
2. Seller issues FCO to Buyer (done)
3. Buyer/Buyer"s Bank swift (BCL)
4. Seller issues contract, both parties amend and sign/seal
5. Buyer issues MT799 by Swift for bank
6. Seller issues POP by swift for bank buyer
7. Buyer issues Open LC Non Operative for bank Seller
8. Seller post 2% performance bond to Buyer"s Bank
9. Buyer respond with Operative Letter of Credit
10. Buyers inspection at site (yard) or loading Port (SGS)
11. Shipment to Buyer"s discharge Port
12. Payment upon inspection by SGS at Buyer"s Port.
BANKING DETAILS OF SELLER
BANK TEE/FAX NO
BANKING DETAILS OF BUYER
BANK TEL./FAX NO
Please sign the FULL CORPORATE OFFER (F.C.O) and provide LOMCPO and
fill in the Buyer and Buyer"s bank information to start the binding negotiation on the
transaction for the above-mentioned goods.
FCO validity : 15 working days from the above date
(With Company Stamg}^ „.
(With Company Stamp)