62 61 CFandCIFCommentsUnderCFand CIF contractstherearethefollowing points on whichtheseller and thebuyershouldcompleteagreementthetime that thecontractconcluded should be agreed upon adv ID: 848426
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1 62 (c)riskinsuranceunderthistermobtain
62 (c)riskinsuranceunderthistermobtained by thesellertheexpenseandrisk of thebuyer.importantthat the seller be definiteaccordwiththebuyer on thispoint,particularlythecost.desirablethat the goodsinsuredagainstbothmarineandwarriskwiththesameunderwriter,thatthere be no difficultyarisingfrom the determinationthecausetheloss.(d)Sellershouldmakecertainthathismarinewarriskinsurance,thereincludedthestandardprotectionagainststrikes,riotsandcivilcommotions.(e)Seller and buyershouldaccord the insuredvaluation,bearingmindthatmerchandisecontributesGeneralAveragecertainbasesvaluationwhichdiffervarioustrades.desirablethat a competentinsurancebroker be consulted,orderthatfullvalue be covered and troubleavoided.(Vl)DockNOTE: Sellerandbuyershouldconsidernotonlythedefinitionsbutalsothe“ExDockComments” end of thissection(p. A-8) orderunderstandfullytheirrespectiveresponsibilities and rights under “ExDock”terms.“EX(namedportimportation)”Underthisterm,sellerquotes a priceincluding the cost of thegoodsandalladditionalcostsnecessaryplacethegoods on the dockthenamedport of importation, duty paid, any.Underthisquotation:Sellermust:(1)provide and pay fortransportationnamedpoint of importation;(2)pay exporttaxes,otherfeescharges,any,leviedbecauseexportation;(3)provide and pay formarineinsurance;(4)provide and pay for warriskinsurance,unlessotherwiseagreed upon betweenthebuyer and seller;(5)be responsibleforanylossdamage, both, untiltheexpiration of thefreetimeallowed on thedockthenamedport of importation;(6)pay the costscertificates of origin,consularinvoices,legalizationbilllading, or anyotherdocumentsissuedthecountryorigin, or shipment, of both,whichthebuyermayrequireforimportation of goodsintothecountry of destinationand,wherenecessary, for theirpassagetransitthroughanothercountry;(7)pay allcostslanding,includingwharfage,landingcharges, and taxesany;(8)pay allcostscustomsentry the country of importation;(9)pay customs duties and alltaxesapplicableimports,any, the country of importation,unlessotherwiseagreedupon.Buyermust:(1)takedelivery of thegoods the dockthenamedport of importationwithinthefreetimeallowe
2 d;(2)bear the costandrisk of thegoodsdel
d;(2)bear the costandrisk of thegoodsdeliverynottakenwithinthefreetimeallowed.DockCommentsThistermusedprincipally UnitedStatesimporttrade. has variousmodifications,suchas “ExQuay,”“ExPier,”etc.,butseldom,ever,usedAmericanexportpractice.Its use quotationsforexportnot recommended. 61 C.&F.andC.I.F.CommentsUnderC.&F.and C.I.F. contractstherearethefollowing points on whichtheseller and thebuyershouldcompleteagreementthetime that thecontractconcluded: should be agreed upon, advance,whopayformiscellaneousexpenses,suchweighinginspectioncharges.The quantity be shipped on any one vesselshould be agreed upon, advance,with a view the buyer’scapacitytakedelivery upon arrivalanddischargethevessel,withinthefreetimeallowedthe portimportation.AlthoughthetermsC.&F.and C.I.F. aregenerallyinterpretedprovidethatchargesforconsularinvoicesandcertificatesoriginarefor the account the buyer, andarechargedseparately,manytradesthesechargesareincluded by the sellerhisprice.Hence,seller and buyer shouldagree,advance,whetherthesechargesarepartthesellingprice,willinvoicedseparately.The pointfinaldestination should be definitelyknowntheeventthevesseldischarges a portotherthan theactualdestinationthegoods.Whenoceanfreightspacedifficultobtain, or forwardfreightcontractscannotmadefirmrates,advisablethatsalescontracts,exceptionregularC.&F. or C.I.F. terms,shouldprovidethatshipmentwithinthecontract period subjectoceanfreightspacebeingavailable the seller,andshouldalsoprovidethatchangesthecost of oceantransportationbetweenthetime of sale and thetimeof shipment be foraccount of the buyer.Normally,thesellerobligatedprepaytheoceanfreight.someinstances,shipmentsaremadefreightcollect, and the amount of thefreightdeductedfrom the invoicerendered by theseller.necessary be agreement on this,advance,orderavoidmisunderstandingwhicharisesfromforeignexchangefluctuationswhichmightaffecttheactualcosttransportation,andfrominterestchargeswhichmightaccrue under lettercreditfinancing.Hence,thesellershouldalways prepay theoceanfreightunlesshas a specificagreementwiththebuyer,advance,thatgoodscanshippedfreightcollect.The buyershouldrecognizet
3 hat he does not havetherightinsist on in
hat he does not havetherightinsist on inspectiongoodsprioracceptingthedocuments.Thebuyershouldrefusetakedeliverygoods on accountdelaythe receipt of documents,providedthesellerhasusedduediligencetheirdispatchthrough the regularchannels.Seller and buyersareadvisedagainstincluding a C.I.F. contract any indefiniteclausevariancewiththe obligations a C.I.F. contractspecifiedtheseDefinitions.TherehavebeennumerouscourtdecisionstheUnitedStates and othercountriesinvalidating C.I.F. contractsbecausetheinclusionindefiniteclauses.Interestchargesshouldincludedcostcomputations and should be charged a separateitemC.I.F. contracts,unlessotherwiseagreedupon,advance,betweenthesellerandbuyer,whichcase,however, the term C.I.F. and(Cost,Insurance,Freight, and Interest)shouldused.connectionwithinsurance under C.I.F. sales,necessarythatsellerandbuyer be definitelyaccord upon thefollowingpoints:(a)The character of the marineinsuranceshould be agreed upon insofarbeingW.A.(WithAverage)or F.P.A.(Free of ParticularAverage),wellanyotherspecialrisksthatarecoveredspecifictrades, or againstwhichthebuyermaywishindividualprotection. Among thespecialrisksthatshould be considered and agreed upon betweensellerandbuyeraretheft,pilferage,leakage,breakage,sweat,contactwithothercargoes, and otherspeculiar any particulartrade.importantthatcontingentcollectfreightandcustoms duty should be insuredcoverParticularAveragelosses,welltotallossafterarrivalandentrybeforedelivery.(b)The sellerobligatedexerciseordinarycare and diligenceselectingunderwriterthatgood financialstanding.However,theriskobtainingsettlement of insuranceclaimsrestswiththebuyer. 60 & CommentsFortheseller’sprotection,shouldprovidehiscontractsalethatmarineinsuranceobtained by thebuyerincludestandardwarehousewarehousecoverage.The commentslisted under the following C.I.F. termsmanycasesapplyC.&F.termswell, and should be readandunderstood by the C.&F.sellerandbuyer.(V)C.I.F. (Cost,Insurance,Freight)NOTE:Sellerandbuyershouldconsidernotonlythedefinitionsbutalsothe“C.&F.Comments”(p. A-6) the“C.&F. and C.I.F. Comments”(pp. A- A-7) order understandfullytheirrespectiverespon
4 sibilitiesandrightsunder“C.I.F.
sibilitiesandrightsunder“C.I.F.”terms.“C.I.F.(namedpointdestination)”Underthisterm,thesellerquotes a priceincludingthecostthegoods, the marineinsurance,andalltransportationchargesthenamed point destination.Underthisquotation:Sellermust:(1)provide and pay fortransportationnamed point of destination;(2)pay exporttaxes,otherfeescharges,any,leviedbecauseexportation;(3)provide and pay formarineinsurance;(4)provide warriskinsuranceobtainableseller’smarkettime of shipmentbuyer’sexpense,unlesssellerhasagreedthatbuyer provide forwarriskcoverage(SeeComment10(c), p. 99);(5)obtainanddispatchpromptly buyer, or hisagent,cleanbillladingnamed point destination,and alsoinsurancepolicynegotiableinsurancecertificate;(6)wherereceivedforshipmentoceanbillladingmay be tendered, be responsiblefor any loss damage, both, untilthegoodshavebeendeliveredintothe custody of theoceancarrier;(7)where on-boardoceanbillladingrequired,responsibleforanyloss or damage, or both,untilthegoodshavebeendelivered on board the vessel;(8)provide, the buyer’s request and expense,certificates of origin,consularinvoices, or any otherdocumentsissuedthecountry of origin, or shipment, or both,whichthebuyermayrequireforimportation of goodsintocountry of destinationand,wherenecessary,fortheirpassagetransitthroughanothercountry.Buyermust:(1)accept the documentswhenpresented;(2)receive the goodsuponarrival,handleandpayforallsubsequentmovement the goods,includingtakingdeliveryfromvesselaccordancewithbillladingclauses and terms; pay allcostslanding,including any duties, taxes, and otherexpensesnamedpoint of destination;(3)pay forwarriskinsurance provided by seller;(4)be responsibleforlossdamagegoods,both,fromtime and placewhichseller’sobligationsunder (6) or (7)abovehaveceased;(5)pay the costscertificates of origin,consularinvoices, or any otherdocumentsissuedthecountry of origin, shipment, or both,whichmay be requiredfor the importationthegoodsintothecountryof destination and, wherenecessary, for theirpassagetransit through anothercountry. 59 F.A.S. CommentsUnderF.A.S.terms,theobligationobtainoceanfreightspace, and marineandwa
5 rriskinsurance,restswith the buyer.Despi
rriskinsurance,restswith the buyer.Despitethisobligation on the partthe buyer, manytrades the sellerobtainsoceanfreightspace, and marineandwarriskinsurance,andprovides for shipment on behalf of thebuyer.Inothers, the buyernotifiesthesellermakedeliveryalongside a vesseldesignated the buyer and thebuyerprovideshisownmarine and warriskinsurance.Hence,sellerand buyer musthaveunderstandingwhetherthe buyer willobtaintheoceanfreightspace,andmarineandwarriskinsurance,hisobligation,whether the selleragrees do thisforthe buyer. Fortheseller’sprotection,shouldprovidehiscontractsalethatmarineinsuranceobtained by thebuyerincludestandardwarehousewarehousecoverage.(IV) & (CostandFreight)NOTE:Seller and buyershouldconsideronlythedefinitionsalsothe“Comments”(p. A- end of thissectionorderunderstandfullytheirrespectiveresponsibilitiesandrightsunder“C. & F.”terms.“C.(namedpointdestination)”Underthisterm,thesellerquotes a priceincluding the costtransportationthenamedpoint of destination.Underthisquotation:Sellermust:(1)provide and pay fortransportationnamed point of destination;(2)pay exporttaxes,otherfeescharges,any,leviedbecauseexportation;(3)obtainanddispatchpromptly buyer, or hisagent,cleanbillladingnamed point destination;(4)wherereceivedforshipmentoceanbillladingmay be tendered, be responsiblefor any lossdamage, both, untilthegoodshavebeendeliveredintothe custody of theoceancarrier;(5)where on-boardoceanbillladingrequired,responsibleforanyloss or damage, or both,untilthegoodshavebeendelivered on board the vessel;(6)provide, the buyer’s request and expense,certificates of origin,consularinvoices, or any otherdocumentsissuedthecountryorigin, or shipment, of both,whichthebuyermayrequireforimportation of goodsintocountry of destinationand,wherenecessary,fortheirpassagetransitthroughanothercountry.Buyemust:(1)accept the documentswhenpresented;(2)receivegoods upon arrival, handle and pay forallsubsequentmovement of the goods,includingtakingdeliveryfromvesselaccordancewithbill of ladingclausesandterms; pay allcosts of landing,including any duties, taxes, and otherexpensesnamedpoint of destinati
6 on;(3)provide and pay forinsurance;(4)be
on;(3)provide and pay forinsurance;(4)be responsibleforlossdamagegoods,both,fromtime and placewhichseller’sobligationsunder (4) or (5)abovehaveceased;(5)pay the costscertificates of origin,consularinvoices, or any otherdocumentsissuedthecountry of origin, shipment, of both, whichmay be required for the importation of goodsinto the country of destination and, wherenecessary,fortheirpassagetransitthroughanothercountry. 58 Under F.O.B. terms,excepting “F.O.B. (namedinlandpointcountry of importation),”theobligationobtainoceanfreightspace, and marine and warriskinsurance,restswiththe buyer. Despitethisobligation on thepartthe buyer, manytradesthesellerobtains the oceanfreightspace,andmarineand warriskinsurance, and providesforshipmentbehalfthebuyer.Hence,seller and buyermusthaveunderstandingwhetherthebuyerwillobtaintheoceanfreightspace,andmarine and warriskinsurance,hisobligation,whethertheselleragreesthisforthe buyer. Fortheseller’sprotection,shouldprovidehiscontractsalethatmarineinsuranceobtained by thebuyerincludestandardwarehousewarehousecoverage.(III)F.A.S. (FreeAlongSide)NOTE:Seller and buyershouldconsideronlythedefinitions but alsothe“Comments” given at end thissection(p. A-7) in order to understandfully their respectiveresponsibilitiesandrightsunder“F.A.S.”terms.“F.A.S.VESSEL(namedportshipment)”Underthisterm,thesellerquotes a priceincludingdeliverythegoodsalongsideoverseasvessel and withinreachitsloadingtackle.Underthisuotation:ellermust:(1)placegoodsalongsidevessel on dock designatedandprovidedby, or for, buyer the date or withinthe period fixed;pay any heavyliftcharges,wherenecessary, up thispoint;(2)provide cleandock or ship’sreceipt;(3)be responsibleforanylossdamage, both, untilgoodshavebeendeliveredalongsidethevessel or on the dock;(4)render the buyer, the buyer’srequestandexpense,assistanceobtaining the documentsissued the countryorigin, or of shipment, of both,whichthe buyer mayrequireeitherforpurposesexportation,importationdestination.Buyermust:(1)giveselleradequatenoticename,sailingdate,loadingberthof,anddeliverytime to, the vessel;(2)hand
7 le allsubsequentmovement the goodsfromal
le allsubsequentmovement the goodsfromalongsidethevessel:(a)arrangeand pay fordemurragestoragecharges, or both,warehousewharf,wherenecessary;(b)provideand pay forinsurance;(c)provide andpayforoceanandothertransportation;(3)pay exporttaxes,otherfeescharges,any,leviedbecauseexportation;(4)be responsibleforany loss or damage, or both, whilethegoodsarelighterotherconveyancealongsidevesselwithin reach of loadingtackle, or on the dockawaitingloading, or untilactuallyloaded on board the vessel, and subsequentthereto;(5)pay allcostsandchargesincurredobtainingthedocuments,otherthancleandock or ship’sreceipt,issuedthecountry of origin, or shipment, or both,whichmay be requiredeither for purposes of exportation,importationdestination. 57 (Il“F.O.B.(namedinlandpointcountryimportation)”Underthisterm, the sellerquotes a priceincluding the cost the merchandiseandallcoststransportationthenamedinlandpoint the country of importation.Underthisquotation:Sellermust:(1)provide andpayforalltransportationthenamedinlandpointthecountry of importation;(2)pay exporttaxes,otherfeescharges,any,leviedbecauseexportation;(3)provide and pay formarineinsurance;(4)provide and pay for warriskinsurance,unlessotherwiseagreed upon betweentheseller and buyer;(5)be responsible for any lossdamage, or both,untilarrivalgoodsconveyance the namedinlandpointthecountry of importation;(6)pay the costscertificates of origin,consularinvoices, or any otherdocumentsissuedthecountry of origin, shipment, of both, whichthebuyermayrequirefortheimportationgoodsintothecountry of destinationand,wherenecessary,fortheirpassagetransitthroughanothercountry;(7)pay allcostslanding,includingwharfage, landingcharges, and taxes,any;(8)pay allcostscustomsentry the country of importation;(9)pay customsduties and alltaxesapplicableimports,any, the country of importation.NOTE:Theseller under thisquotationmustrealizethat he acceptingimportantresponsibilities,costs,risks,andshouldtherefore be certainobtainadequateinsurance.theotherhand,theimporter or buyermaydesiresuchquotationsrelievehim the risks of the voyage and assurehim of his landedcostsat inlandpointcountry of im
8 portation.Whencompetitionkeen,thebuyerac
portation.Whencompetitionkeen,thebuyeraccustomedsuchquotationsfromothersellers,sellermayquotesuchterms,beingcarefulprotecthimselfappropriatemanner.Buyermust:(1)takepromptdeliverygoodsfromconveyancearrivaldestination;(2)bear any costsandresponsibleforalllossdamage, or both,afterarrivaldestination.CommentsAllF.O.B.Terms connection withF.O.B.terms,thefollowingpointscautionarerecommended:The methodinlandtransportationsuchtrucks,railroadcars,lighters,barges,aircraftshouldspecified.anyswitchingchargesareinvolvedduring the inlandtransportation,shouldagreed,advance,whetherthesechargesareforaccounttheseller or thebuyer.The term“F.O.B.(namedport),”withoutdesignatingtheexactpointwhichtheliability of thesellerterminates and theliability of the buyer begins,shouldavoided.Theusethistermgivesrisedisputestheliability of the seller or the buyertheevent of lossdamagearisingwhilethegoodsareport, and beforedelivery on boardtheoceancarrier.Misunderstandingsmay be avoided by naming thespecificpointdelivery.lighteragetruckingrequired in thetransfergoodsfrom the inlandconveyanceship’sside,and thereis acosttherefor,shouldbe understood,advance, whetherthiscostforaccountthesellerthebuyer.The sellershould be certainnotifythe buyer theminimumquantityrequiredobtain a carload, a truckload, a bargeloadfreightrate. 56 Sellermust:(1)placegoodson,in,conveyance,deliverinlandcarrierforloading;(2)provide cleanbill of lading or othertransportationreceipt,payingalltransportationcostsfrom loading pointnamedpoint of exportation;(3)be responsiblefor any lossdamage, or both,untilgoodshavearrivedin,on,inlandconveyancethe namedpoint of exportation;(4)render the buyer, the buyer’srequestandexpense,assistanceobtaining the documentsissued the countryorigin, or of shipment, of both,whichthe buyer mayrequireeitherforpurposesexportation,importationdestination.Buyermust:(1)be responsibleforallmovement of thegoodsfrominlandconveyancenamedpoint of exportation;(2)pay exporttaxes,otherfeescharges,any,leviedbecauseexportation;(3)be responsiblefor any lossdamage, or both, incurredaftergoodshavearrivedin, or on,inlandconveyancethenamed point exportat
9 ion;(4)pay allcostsandchargesincurredobt
ion;(4)pay allcostsandchargesincurredobtainingthedocumentsissuedthecountry of origin, or shipment,both,whichmay be requiredeither for purposesexportation, or importationdestination.(Il.B.VESSEL(namedportshipment)”Underthisterm,thesellerquotes a price covering allexpensesto,andincluding,delivery of thegoodstheoverseasvessel provided by,for,the buyer thenamedport of shipment.Underthisquotation:Sellermust:(1)pay allchargesincurredplacinggoodsactually on boardthevesseldesignatedandprovidedby, or for,the buyer on thedatewithintheperiodfixed;(2)provide cleanship’sreceipt or boardbilllading;(3)be responsiblefor any lossdamage, both, untilgoodshavebeenplaced on boardthevessel on thedate withintheperiodfixed;(4)render the buyer, the buyer’srequestandexpense,assistanceobtaining the documentsissued the countryorigin, or of shipment, of both,whichthe buyer mayrequireeitherforpurposesexportation,importationdestination.Buyermust:(1)giveselleradequatenoticename,sailingdate,loadingberthof,anddeliverytime to, the vessel;(2)bear the additionalcostsincurred and allrisksthegoodsfrom the timewhen the sellerhasplacedthem his disposalthevesselnamed by him failsarriveloadwithinthedesignatedtime;(3)handle allsubsequentmovement the goodsdestination:(a)provide and pay forinsurance;(b)provide and payforoceanandothertransportation;(4)pay exporttaxes,otherfeescharges,any,leviedbecauseexportation;(5)be responsiblefor any lossdamage, or both, aftergoodshavebeenloaded on boardthevessel;(6)pay allcostsandchargesincurredobtainingthedocuments,otherthancleanship’sreceiptbill of lading,issuedthecountry of origin, or shipment, or of both, whichmay be requiredforpurposesexportation,importationdestination. 55 Buyermust:(1)be responsible for allmovement of the goodsfrominlandpointloading,andpayalltransportationcosts;(2)pay exporttaxes,otherfeescharges,any,leviedbecauseexportation;(3)be responsible for anylossdamage, both, incurredafterloadingnamedinlandpointdeparture;(4)pay allcostsandchargesincurredobtainingthedocumentsissuedthecountry of origin, or shipment,both,whichmay be requiredeither for purposesexportation, or importationde
10 stination.(Il“F.O.B.(namedinlandcar
stination.(Il“F.O.B.(namedinlandcarrier at namedinlandpointdeparture)FREIGHTPREPAID(namepointexportation)”Underthisterm, the sellerquotes a priceincludingtransportationchargesthenamedpointexportationand prepaysfreightnamedpointexportation,withoutassumingresponsibility for the goods afterobtaining a cleanbill of lading or other transportationreceiptnamedinlandpoint of departure.Underthisquotation:Sellermust:(1) assume the seller’sobligationsunderexceptthatunder(2) he mustprovidecleanbillladingothertransportationreceipt,freightprepaidnamedpointexportation.Buyermust:(1) assume the samebuyer’sobligationsunderexceptthat he does notpayfreightfrom loading point namedpointexportation.(Il“F.O.B.(namedinlandcarriernamedinlandpointdeparture)FREIGHTALLOWED(namedpoint)”Underthisterm, the sellerquotes a priceincludingtransportationchargesthenamedpoint,shippingfreightcollectanddeducting the cost of transportationwithoutassumingresponsibilityforthegoodsafterobtaining a cleanbill of lading or other transportationreceiptnamedinlandpoint of departure.Sellermust:(1) assume the sameseller’sobligationsunder but deductfrom his invoice the transportationcostnamepoint.Buyermust:(1) assume the samebuyer’sobligationsunderincludingpaymentfreightfrom inland loadingpointnamedpoint,forwhichsellerhasmadededuction.(Il“F.O.B.(namedinlandcarrier at namedpointexportation)”Underthisterm,thesellerquotes a priceincludingthecoststransportationthegoodsnamedpointexportation,bearing any lossdamage, or both,incurred up thatpoint.SeeNote (p. A- and Comments on all F.O.B. Terms(p. A-4).Underthisquotation: 54 DEFINITIONSQUOTATIONS(I)(PointOrigin)“EXFACTORY,”“EXMILL,”“EXMINE,”“EXPLANTATION,”“EXWAREHOUSE,”etc.(namedpointorigin)Underthisterm, the pricequotedappliesonlythepointorigin,and the selleragreesplacethegoodsthedisposal of the buyertheagreedplace the datewithintheperiodfixed.Underthisquotation:Sellermust:(1)bearallcosts and risks of thegoodsuntilsuchtime thebuyerobligedtakedeliverythereof;(2)render the buyer, the buyer’srequestandexpense,assistanceob
11 taining the documentsissued the countryo
taining the documentsissued the countryorigin, or of shipment, of both,whichthe buyer mayrequireeitherforpurposesexportation,importationdestination.Buyermust:(1)takedelivery of thegoodssoontheyhavebeenplacedhisdisposaltheagreedplace on thedateor withintheperiodfixed;(2)pay exporttaxes,otherfeescharges,any,leviedbecauseexportation;(3)bearallcosts and risks of thegoodsfrom the timewhen he obligatedtakedeliverythereof;(4)pay allcostsandchargesincurredobtainingthedocumentsissuedthecountry of origin, or shipment,both,whichmay be requiredeither for purposesexportation, or importationdestination.(II)F.O.B.(Free on Board)NOTE: Sellerandbuyershouldconsidernotonlythedefinitionsbutalsothe “Comments on AllF.O.B.Terms”givenendthissection(p. A-4) orderunderstandfullytheirrespectiveresponsibilitiesandrights under theseveralclasses“F.O.B.”terms.(Il“F.O.B.(namedinlandcarriernamedinlandpointdeparture)”Underthisterm, the pricequotedappliesonlyinlandshippingpoint,andthesellerarrangesforloading of the goods on, or in, railwaycars,trucks,lighters,barges,aircraft, or otherconveyancefurnishedfortransportation.Underthisquotation:Sellermust:(1)placegoodson,in,conveyance,deliverinlandcarrierforloading;(2)provide cleanbill of lading or othertransportationreceipt,freightcollect;(3)be responsiblefor any lossdamage, both, untilgoodshavebeenplacedin, or on,conveyanceloading point, and cleanbill of lading or othertransportationreceipt has beenfurnished by carrier;(4)render the buyer,the buyer’s request and expense,assistanceobtainingdocumentsissuedthecountryorigin, or of shipment, or both, whichthe buyer mayrequireeitherforpurposesexportationimportationdestination. 53 unwise attemptinterpretothertermsthelight of the termsgivenherein.Hence,wheneverpossible, one thetermsdefinedhereinshould be used. unwise useabbreviationsquotations or contractswhichmightsubjectmisunderstanding.Whenmaking quotations, thefamiliarterms“hundredweight” or “ton”should be avoided. A hundredweight be 100pounds of theshortton,thelongton. A ton can be a shortton pounds, a metricton of pounds, or a longton of pounds.H
12 ence,thetypehundredweight or tonshould b
ence,thetypehundredweight or tonshould be clearlystatedquotations and salesconfirmations.Also,alltermsreferringquantity,weight,volume, length, surface should be clearlydefinedandagreed upon. inspection, certificateinspection,required,should be agreed,advance,whether the costthereof for accountseller or buyer.Unlessotherwiseagreedupon,allexpensesare for the accountseller up thepointwhichthebuyermusthandlethesubsequentmovement of goods.Thereare a number of elements a contractthat do fallwithin the scopetheseforeigntradedefinitions.Hence,mentionthesemadeherein.Seller and buyer shouldagreetheseseparatelywhennegotiatingcontracts.Thisparticularlyappliessocalled“customary”practices. 52 APPENDIXFOREIGNTRADEDEFINITIONS The followingdefinitions the NationalForeignTradeCouncil,Inc.,arereproducedforinformation purposesonly.TheyareNOT be construedparttheNationalOilseedProcessorsAssociation Trading Rules.Theyarereprintedthroughthecourtesy of NationalForeignTradeCouncil, Inc., the Chamber CommercetheUnitedStatesAmerica, and theNationalCouncilAmericanImporters,Inc. RevisedAmericanForeignTradeDefinitionsAdopted July 30, 1941, by a JointCommitteerepresentingtheChamberCommerce of theUnitedStates of America,theNationalCouncilAmericanImporters, Inc., and theNationalForeignTradeCouncil,Inc.FOREWORDSince the issuanceAmericanForeignTradeDefinitionsmanychangespracticehaveoccurred.The 1919 Definitionsdidmuchclarifyandsimplifyforeigntradepractice, and receivedwiderecognitionanduse by buyers and sellersthroughoutthe world. theTwentySeventhNationalForeignTradeConvention,1940,furtherrevision and clarification of theseDefinitionswasurgednecessaryassisttheforeigntraderthehandlinghistransactions.The followingRevisedAmericanForeignTradeDefinitions1941arerecommendedforgeneraluse by both exporters and importers.Thesereviseddefinitionshave no statuslawunlesstherespecificlegislationprovidingforthem, or unlesstheyareconfirmedcourtdecisions.Hence,suggestedthatsellers and buyersagreetheiracceptancepartthecontractsale.Thesereviseddefinitionswillthenbecomelegallybindinguponallparties.view of changespractice and proceduresince1919,certainnewr
13 esponsibilitiesforsellers and buyers are
esponsibilitiesforsellers and buyers areincludedthesereviseddefinitions.Also,manyinstances,theoldresponsibilitiesaremoreclearlydefinedthantheDefinitions,andthechangesshouldbeneficialbothsellersandbuyers.Widespreadaccepancewilllead a greaterstandardizationforeigntradeprocedure, and theavoidanceof muchmisunderstandingAdoption by exporters and importers of theserevisedtermswillimpress on allpartiesconcernedtheirrespectiveresponsibilitiesandrights.GeneralNotesCautionforeigntradedefinitionshavebeenissued by organizationsvariousparts of theworld,andthecourts of countrieshaveinterpretedthesedefinitionsdifferentways,importantthatsellersandbuyers agreethattheircontractsaresubjecttheRevisedAmericanForeignDefinitions1941andthat the variouspointslistedareaccepted by bothparties. addition theforeigntradetermslistedherein,therearetermsthataretimesused,suchFreeHarbor, C.I.F.&C. (Cost,Insurance,Freight, and Commission), C.I.F.C.&I. (Cost,Insurance,Freight,Commission,andInterest), C.I.F. Landed(Cost,Insurance,Freight,Landed),andothers.Nonetheseshould be usedunlessthere has firstbeen a definiteunderstandingtheexactmeaningthereof. 51 APPENDIXNATIONALOILSEEDPROCESSORSASSOCIATIONUNIFORMSOYBEANOILEXPORTCONTRACTAdoptedAugust 27, SELLER:BUYER:Sellerhassoldandagreesdeliver, and Buyerhaspurchased and agreedaccept,thesoybeanoildescribedbelowfollows:Quantity:Quality:PriceandUnit:PriceBasis:ShipmentDates:PaymentTerms:Weights Govern:SpecialConditions:ThiscontractmadesubjecttheSoybeanOilExportTradingRulestheNationalOilseedProcessorsAssociationandincorporatessuchRulesforthlengthherein. The partiesacknowledgefamiliaritywithsuchRuleswhichareavailablethrough any NOPAmember and areobtainableNOPA’sWashington,D.C.Office.SELLERBUYER 50 MiscellaneousThe fullrights of Buyer,Seller, both, under the contractandtheseRulesshall no wayaffected by omissions,increasedprivileges, or provisionsinconsistentwithvariancewiththeprovisions of theseRules,indicated or expressedletterscreditagainstwhichpartial or fullpaymentmade.WhentheSeller,therequest the Buyer,performs any servicesconnectionwiththecontractbeyond those required by thetermsthereof,Sellershall
14 be deemedacttheagent of theBuyerrespect
be deemedacttheagent of theBuyerrespect the performance of suchservices, and Seller’sresponsibilitytheBuyershall be determinedby the usualobligationsagenttheprincipal.ContractsmadesubjecttheseRuleswill be deemedmade the StateNewYork.ThelawstheState of NewYork,withoutreferencetheconflictlawsprovisions,aregoverninterpretation and enforcement of suchcontracts, and suchlaws,bothcase and statutory,aredeemedincorporated and made a parttheseRulesforthfullylength.If,despitetheexclusivityremedy under thearbitrationclause, a partyseeksrecoursethecourtsenforceresistenforcement of sucharbitrationclause,suchrecoursewill be soughtsolelythestateFederalcourts of theStateNewYork.UnlessBuyer and Sellerexpresslyagreedifferentterms and conditionsthetime of thetrade,the“SoybeanOilExportTradingRules”forthaboveshallgovern. 49 a circlecanshownexist,but no clearinghouseagreement has beenreached by the lastbusinessday of the contractualshipping period, actualdeliveryshallnotmade, and paymentshall be effectedby BuyerinvoiceamountBuyer’sSelleroverthelowestinvoiceamountthecircle.Settlementshalldueforpayment not laterthanseven (7) calendardaysafterthecircleestablished.AllSellers and Buyersshallgiveeveryassistancetheestablishmentthecircleandwhen a circleshallhavebeenestablished,sameshall be binding on allpartiesthecircle.Should any partythecirclecommit prior theduedateforpayment any bankruptcy or insolvencycontemplated the DefaultRule, the invoiceamountforthegoodscalculatedtheclosing- out price provided fortheDefaultRuleshalltaken the basisforsettlementinsteadthelowestinvoiceamountthecircle,andthiseventeachBuyershallmakepaymentBuyer’sSelleror eachSellershallmakepaymentSeller’sBuyerthedifferencebetween the closing-out priceandtheircontractprice, the casemay be. f.Allpaymentsshalleffected by simultaneouselectronictransfer funds on theagreedsettlementdate,whichshalllaterthanfifteen(15)calendardaysafterthelast day of thecontractedshipmentperiod.Allcircles/washoutsshalleffectedbasismeancontractquantityunlesstendershavebeenpassedthroughthe“string,”whichcase the tenderedweightsgovern.ArbitrationAllcontrovers
15 iesarisingout of contractsmade under the
iesarisingout of contractsmade under theseTradingRules or the Breachthereof,unlessamicablyadjustedotherwise,shall be settled by finalandbindingarbitrationaccordancewith the rules,then obtaining,theAmericanArbitrationAssociation(AAA)*,excepttheextentmodifiedherein, and judgment the awardrenderedmay be enteredthehighestcourttheforum,statefederal, having jurisdiction.The arbitratorsshallappointedthefollowingmanner:eachpartythedisputeshallappointarbitratorfrom a list be prepared by AAAfrom the NationalPanelArbitrators.Thearbitratorappointedby partymustbe: (1) activelyengagedthebuying or selling of oilseedproductsandhavebeenengagedfor a minimum of five(5)years;or,(2)retiredafterleastfive(5)yearsactiveengagementthe buying or sellingoilseedproducts.ThepartyappointedarbitratorsshallselectfromAAA’slist a thirdarbitratorwhomeetstheaboverequirement. the partyappointedarbitratorsfailagree on a thirdarbitrator,AAAshallappoint a thirdarbitratorwhomeetstheaboverequirement.Arbitrationproceedingsmust be commencedwithinsixty(60)calendardaysafterthedatethesoybeanoilarrived or shouldhavearriveddestinationspecifiedthesalescontract. A subsequentclaim,whetherarbitrationcourt,shall be barred.Arbitrationproceedingsmay be consolidatedthediscretion of the arbitratorarbitrationpanelwheresuchconsolidationwouldtendavoidunnecessarycostsdelaywouldassistachieving a fairresult.Forinformationregarding the servicestheAmericanArbitrationAssociationand a listing of itsoffices,contacttheAAAat:335MadisonAvenue,Floor10,NewYork,10017-4605 Tel.:212/716Fax.:212/7165905,www.adr.org. 48 SAMPLING StorageTanksi. the oiluniform,samplesequalsizemustobtainedfrom the storagetankonefootlevels,and composited.ii. the oil notuniform, a compositerepresentativeproportionatesampleshall be drawn.Vessel’sTanksi.Immediatelyafterloading, a representativesampleshall be drawnfrom the vessel’sentiredepth of the materialusingacceptedsamplingtechniques.ii.The officialsampleforanalysisshallbased a weighedcompositesample of thematerialalltanksusedfor the specificshipment.iii.more than one tank usedforthecarriage of theoil, and analysismade ofeachtank,thequality of
16 theshipmentshall be based on theanalysis
theshipmentshall be based on theanalysis of the weighedcompositesampleonly, and nottheanalysisanyindividualtanks.iv.Samples be usedmust be of the BaconBomb,Curtis and Tompkinstype.Whenmorethan one (1)Sellersuppliesmaterialfor a commingledshipment, a representativesampleof eachSeller’smaterialmust be secured,priorcommingling.vi.Twosealedrepresentativesamplesmust be left on boardtheship,fortheConsignee and one forthe vessel.morethanonesurveyorattendance,allsamplesmust be jointlysealed. A receiptfor the samplesmust be obtainedfrom the ship.vii.Uponcompletionloading,surveyorshallrecordthepresence a ship’sofficer,temperaturesand ullagescontents of eachtankloaded,whichinformationtogetherwithship’sdraftandlistbe showntheReportLoading. ANALYSIS Analysisshall be madeaccordancewithmethodsapproved by theAmericanOilChemists’Societyeffectthedatethecontract.Chemicalanalysisshallperformed by any NOPAOfficialRefereeChemist. the analysis does notmeetspecifications, a secondanalysistheofficialsamplemust be conductedby anotherNOPAOfficialRefereeChemistnotpreviouslyconcerned.CirclesWashoutsWhere a SellerrepurchasesfromBuyer, or from any subsequent Buyer,thesamegoodspartthereof, a circleshall be consideredexistregardstheparticulargoodsrepurchasedand the provisions of theDefaultClauseshallnotapply.(For the purposethisClausethesamegoodsshallmeangoodsthesamedescription, of thesame country of origin,thesame quality and, whereapplicable,thesameanalysiswarranty, for shipmentfrom the sameport(s) of originforshipmentthesameport(s)destinationduringthesame period shipment.)Contractualpartiesmayagreewiththeotherparticipants the circleforegoactualdelivery and participate a clearinghouseagreementforthesettlement of contractpricedifferences.Fundsdue and owedparticipants the circleshallpayable on thelastbusiness day thecontractshippingperiod. 47 DrumShipmentsi. drums are uniform size and gauge,averagetareweightmust be established by weighing notlessthan of the empty drums. ii.If varioustypesdrumsare used, a tareweightmustestablishedforeachindividualdrum.iii.Scalesusedfordrumweighingmustcheckedperiodicallywithtestweights,thesa
17 meweightrange the fulldrums.iv.The weigh
meweightrange the fulldrums.iv.The weightsmust be stenciled or otherwiseprinted on thedrumsthetime of weighing.StorageTanksi.Allstoragetanksmust be calibrated by a recognizedofficialcalibratingcompany. The certifiedgaugechartsmust show a tankheightfrom a specific gauge point allopeningsthetankwheregaugesaretaken.Calibrationchartsmustavailablethesurveyoralltimes.ii.Tank shallhavebeencalibrated by a qualifiedtankstrapperwithinthelastthree(3)years or acceptablecheck on calibrationdetailedASTM-D-paragraph 16 performedwithinthelastthree(3)years.StorageTank Gauging Procedurei.Standardgaugingtapesmust be usedandcheckedforaccuracy.ii.Allgaugingwilldonejointlyby thesurveyorand arepresentative of thewarehouse or plant,using theirownequipment.Deviationsbetweengaugesmust not more than 1/8” and bothgaugesaveraged.iii.Allgaugerecordsmustshowgaugeheight,innageandoutage.there any differencebetweenthegaugeheightshown on thecalibrationchartandthatactuallyobtained,samemust be notedandallpartiesmust be advised. iv.Temperatureswill be taken using a calibrated cup thermometerthat be accuratelyread 1° Temperaturesmust be obtainedfromleasttwogaugeholes on tanks having four holes, and fromleastfourgauge holes on tanks having eightholes,saidtemperaturesbeingtakenfrom opposite sidesof thetank.Temperaturesmust be takenthree(3)feetfrom the bottom,middle,andthree(3)feet below thesurfacetheoil.there a widevariation of temperatures,intermediatereadingsmust be taken.f.SpecificGravityDeterminationi.A standardizedpycnometerwill be usedfordeterminationspecificgravitiesthetemperaturethe oilthestoragetank.ii.Specificgravitiesmay be runtemperaturesovertemperatures(T/T),temperatureover 77° F (T/77° F),temperatureover 60° F (T/60°F).Thespecificgravitiesarethenconvertedper gallonusing the standardpoundspergallon of waterapplicableeachtemperature.ShorePipelinesandPumpsi.The suitability of allplantequipment for the loading the vesseltheresponsibility of theterminalor plant;however,thesurveyormustalsoinspectallplantequipmentfarpracticable.ii.Alltakeoffsfrom the line be used for the loadingoperationmustblanked or sealedclosed.iii.Loading linesmust
18 be pigged or blownwithairbeforeandafter
be pigged or blownwithairbeforeandafter loading the presencethesurveyor. 46 loading portforwhichBill or Bills of Ladingareissued,whichevermay be adopted by Underwriters.Anywarriskspremiumexcess1/2%shall be payable by Buyertimepresentationdocuments and shalladvisedBuyer not laterthantime of appropriation not later than three(3)calendardaysaftertherate has beenagreedwithUnderwriters,whichevermay be the later.i.Sellershall, on C.I.F. contracts,furnishBuyeroriginalinsurancepolicies or negotiableinsurancecertificates covering thegoodsshipped.Allclaimsshall be payableUnitedStatescurrencyavailabletheUnitedStatesAmerica.ii.Sellershall pay for bank charges for collectiondocuments.When the contractprovides for landedweights,Sellershall pay thecostsdetermining the same.Survey,Weights,SamplingandAnalysisSurvey,sampling and weighingshall be performed by recognizedindependentsurveyors,samplers, and weighers. the appointedsurveyormutuallyagreeableBuyerandSeller,eachshallhavetherightappointing,Buyer’s or Seller’sexpense,Buyer’s or Seller’sownsurveyor. SURVEY InspectionVessel’sTanksi.Tank andheatingcoils,present,must be dryandcompletelyfree of anypreviouscargo,loosescaleor rust.ii.Tanksmust withstand a 3 psi, 30 minuteairtest.Coils,any,must be testedunder a minimum of 80 psi steampressure.therearedoublebottomsbeneath the tanks,theymust be tested,using a headfueloilor water,equivalenttheheight of thetank.theevent the vesselunableconducttheabove, a certificateguaranteeingtightnessmustgiventhesurveyor by the Masterprior any cargo being loaded. iii.Tightness and cleanlinesspipelines,valves, and pumpsaretheresponsibility of thevessel.DETERMINATIONWEIGHTSFORBULKMOVEMENTS ScalesScales,whenused,musthave a certificatesealapprovalissued by a recognizedauthority,datednotmorethanone(1)yearpriorthedate of weighing.Weighingmust be performed a certifiedweighmaster.Tank Cars and TankTrucksi.Whenweightsare be determinedforexportpurposes,alltankcarsandtanktruckswillweighedheavyfirstandafterunloading,weighedlight,overthesamescale,theport of loading.ii.During weighing,all tank carsmustweighedfree, uncoupled,andcenteredth
19 escale.Tanktrucksmust be weighed on a sc
escale.Tanktrucksmust be weighed on a scalethatlargeenoughaccommodateboththetractor and tanktrailerthesametime; no double- or splitweighingpermitted.iii.Priorweighing,tank cars andtanktrucksare be madereasonablyfreesnow,iceotherextraneoussubstances.Failingthis,suitableallowanceshall be jointlyassessedand shown a deduction. 45 ForceMajeure the eventwar,hostilities or blockadepreventing a shipment during thecontract period, thecontractany unfulfilledportionthereofshallcancelled.Should shipment be delayed by fire,strike,lockout,riot,revolution,prohibitionexport,anyexecutive or legislativeactdone by behalf of the government of theterritorywheretheport or portsshipment or destinationnamed the contractaresituated, any causecomprehendedtheterm“forcemajeure”otherthanthereasonsgiventheprecedingparagraphhereof, then thetime of shipment shallextended by thirty(30)calendardaysafterthetermination of the occasionpreventingshipment,butmorethan two(2)months.Shouldshipment not possiblewithinthesetwo(2)months,thecontractshallcancelled.Seller’sObligationsWhenSellerresponsibleforobtainingBillsLading,Sellershalldeliver the BuyersuchBills of Lading issuedaccordancewithterms or conditionsforththe“tankervoyagecharterparty”or,Seller’soption,the“berthterm oil booking agreement,” and eithertype of BillLadingshallaccepted by theBuyer.exact copy of suchcharterparty or bookingagreementshall be attached the BillLading.WhenSellerarrangesforoceanfreightspace,SellermaymakedeclarationtheBuyer of thename of the vessel,ports of loading and expecteddeparturedates;however,suchdeclarationshall be deemed modify theterms of thecontract.Upondemandanytimesubsequent the dateshipment,SellershallimmediatelynotifyBuyer of conditionsaffreightmentpertainingandaffecting loading and dischargeand/or any otherconditionsnot specified the BillLading.The originalSellershallsendnoticeshipmentBuyerBuyer’srepresentativeelectronicmailwithacknowledgmentreceiptrequestedtelefaxnotlaterthanseven(7)calendardaysafterdateOceanBill of Lading.Thisnoticeshallcontainthename of thevessel,datethisBillLading,theapproximatequantityshippeda
20 ndtheloadingport.Intermediatecontractpar
ndtheloadingport.IntermediatecontractpartiesshallforwardthenoticetheirBuyerimmediately. F.O.B. vesselcontracts,Sellershall pay allchargesexceptwharfageincurredplacingthegoodsactually on boardthevesseldesignated and provided or for the Buyer on thedate or withinthe period fixed,andexpensesforpumpingthegoods board. “Onboard”shallmean“overtheship’srail.”f. F.A.S. vesselcontracts,Sellershall pay allchargesincurredplacing the goodsalongsidevessel.However,Sellershallnotunderobligationdelivercargo one locationdesignated by vessel’sagents. the eventthecargosubsequentlyhas be moved under ship’stackle,suchexpenses,any,are be fortheaccounttheBuyer.C.&F.and C.I.F. contracts,Buyershall,arrivaldestination, handle and pay forallsubsequentmovement the goods,includingpumpingoutandsteamcharges,otherwisetakephysicaldeliverythe goodsfrom the vesselaccordancewithBillLadingclauses and terms,and pay allcosts of landing,including any duties,taxesandotherexpensesnamedportdestination. C.I.F. contracts,marineinsuranceshall be furnished by the SellerforinvoicevalueplusperInstituteCargoClauses(allrisks),includingcoverageagainstallrisksphysicallossdamagefrom anyexternalcause and contaminationirrespective of percentage on each tank or on the whole.Anyexcessinsuranceovershall be forSeller’sbenefit.Allclaimsshall be paidthroughrecognizedagents.Sellershallinsuregoodsagainstwarrisks on usualunderwriters’conditions,butSeller’sobligationsthisrespectshall be limitedtheterms and conditionsforceandgenerallyobtainable the UnitedStates of America the date of the BillLading or date the vessel’ssailingfrom 44 Washouts,closeoutsdefaultsshall be basiscontractquantitywithouttolerances. the contractprovides for a minimum and maximumquantity, the meanthereofshallapply.DefaultShould theSeller be defaultcontract,theBuyershallhave the rightbuythe open marketgoodsthe kind,quantity,qualityanddescriptionspecifiedthedefaultedcontract.Suchright,exercised,shall be exercisedlaterthantheclose the seventhcalendar day afterBuyerbecomesaware of the default and aftertheBuyershallhavegivenpriornotice by electronicmailwit
21 hacknowledgmentreceiptrequestedtelefaxth
hacknowledgmentreceiptrequestedtelefaxtheSellerBuyer’sintentionsbuy.TheSellershallreimbursetheBuyertheamount of any directmarketloss.Should theSeller be dissatisfiedwiththeprice of thecoveringpurchasetheBuyer’srightcoverthedefaultedcontractnotexercised provided theseRules,thenthematteranydamagesshallsettledby arbitration.Damagesshall be measured by the differencebetweenthecontractprice and thefairmarketvalue of thecontractcommodity on the day thedefaultedcontractcovered,plusfreight,insurance,andothercoststheextentapplicable.ShouldtheBuyer be defaultcontract, the Sellershallhave the rightsellthe open marketgoodsthe kind,quantity,qualityanddescriptionspecifiedthedefaultedcontract.Suchright,exercised,shall be exercisedlaterthantheclose the seventhcalendar day afterSellerbecomesaware of the default and afterSellershallhavegivenpriornotice by electronicmailwithacknowledgment of receiptrequestedtelefaxtheBuyerSeller’sintentionsell.TheBuyershallreimburse the Sellertheamount of any directmarketloss.Should theBuyer be dissatisfiedwiththeprice the coveringsale,theSeller’srightcoverthedefaultedcontractnotexercised provided theseRules,thenthematteranydamagesshallsettledby arbitration.Damagesshall be measured by the differencebetweenthecontractprice and thefairmarketvalue of thecontractcommodity on the day thedefaultedcontractcovered,plusfreight,insurance,andothercoststheextentapplicable.Should eitherparty a contractanticipatorilybreachsuchcommitbankruptcyinsolvency,theotherpartyneedawaitmaturitythecontractanyunfulfilledportionthereofordertakeappropriateaction, and underthesecircumstances,aftergiving one (1) businessday’snotice by electronicmailwithacknowledgment of receiptrequestedtelefax,mayresellrepurchaseappropriatequantitythe contractmaterialandthereuponearn the rightrecover any directmarketlossincurred. theentthat a profitshallresultaccruingthepartydefaultfor any reasonmentionedthissection,then the otherpartythecontractshallaccountable and responsibleforsuchprofitthepartydefault.Eachshipmentis deemedbe a separatecontract. Buyershallnotbe entitledrejecttendershipmentnor to terminatebecauseany def
22 ault by Selleroccurring an earliershipme
ault by Selleroccurring an earliershipmentunlessis clearthatsuchdefaultwillresultdefault of theentirecontract.Thesestatementstherights of the partynotdefaultcovershall be thesoleremedy, and suchpartyshallhaveaddition,lieuthereof, any remediesprovided by law. 43 suchcase, the SellermustdeliverthegoodsontoBuyer’svesselpresentedwithinsuchadditionaleight(8)calendardays.TheBuyer,however,shallpaytheSeller a premium, be addedtheinvoice the contractpricebased on the number of days by whichtheoriginalstipulatedperiodexceededfollows:Ifexceeded by 1, 3, 4 calendardays, 1/2 of of the F.O.B. price;exceeded 5 or 6 calendardays,1% of the F.O.B. price;exceeded by 7 8 calendardays, 1-1/2% of the F.O.B.price.BuyerfailspresentBuyer’svesselforloadingwithinsuchadditionaleight(8)calendar-day period, Sellermay, but notobligated to, extendtheshippingperiodforadditionalperiod be mutuallystipulated.suchevent,theBuyershall pay theSelleradditionalpremium of 1/4 1 percent the F.O.B. priceforeachcalendardaybeyondeight(8)calendardays.The BillLadingdateshallgovernassessingtheadditionalpremium.Thepremiumsprovidedhereinare be construedthenature of liquidateddamages,andsuch, no furtherproofdamagesshallrequired.If, however, afterhavingexpressedBuyer’sintentionpresentBuyer’svesselfor loading withinsuchadditionaleight(8)calendardays, by noticesentSeller on beforethelastday the shippingperiodoriginallystipulatedtheBuyerfailspresentBuyer’svesselforloading,then the contractshall be deemedhavecalledforshipment during theoriginallystipulatedperiodpluseight(8)calendardays,contractpriceplus 1-1/2%, and any settlement for defaultshall be calculated on thatbasis.Vesselsubstitutionsshallallowedprovidedthatsuchsubstitutionsoriginatewith the vessel’sowner. The Buyermust prove, asked by theSeller,thatsuchownersubstitutionsareauthentic. the eventthattheBuyerdoesnot prove thatsuchownersubstitutionsareauthentic,theSellershallentitledassesscarryingchargescents per metrictonperdayforeachcalendardaybeyondtheoriginallyscheduledload dateuntiltheactualloaddateevidenced by theBillLading.Furthermore, the Buyershallentitledvesselsubstitut
23 ionasidefrom those originatingwiththeves
ionasidefrom those originatingwiththevessel’sownertheeventthat the original vesselfallsbeyondlaydays.Loang shall be effectedwithcustomaryquickdispatchaccordancewiththecustom of theport, once vessel load readyberth. the loadingdelayedforreasonsbeyondtheSeller’scontrol,includingnot limitedavailability of loadberth,Sellershall not be responsibleforanycosts,expenses,and/orvesseldemurrageincurred a consequence.When a Buyernominatesdelivery a barge or anothertanklocatedthefacilitythattheSeller has contractedforloading,theSellernotobligatedeffectthetransferbeforefirstreceiving of thecontractedvaluetheoilbeingtransferred.Buyerrequests,Sellermustsupply proof theavailabilitythe oiltransferred.Finalsettlementshall be dueuponcompletion of theactualproducttransfer.InterpretationsThe term“firsthalf” any monthshall be construedmeanfrom the firstcalendar day thefifteenthcalendarday,bothinclusive, and theterm“secondhalf”shallconstruedmeanfrom the sixteenthcalendar day thelastcalendarday, both inclusive.The terms“early” or “beginning,”“middle,”and“end” or “late,”reference any monthshall be construedrespectivelymeanfrom the firstcalendardaythetenthcalendarday,from the eleventhcalendar day thetwentiethcalendarday, and from the twentyfirstcalendarday the lastcalendarday,allinclusive. the last day forshipments/deliveriesfalls on Saturday,Sunday or legalholiday,time for shipments/deliverieswill be extendeduntilthenextbusinessday. 42 C.I.F./C. & ShipmentTimeshipmentshallspecifiedthecontract.theabsenceevidence the contrary,the on boarddate BillLadingshall be proof dateshipment. the eventshipmentunder a contractprovidingfornamevessel,substitute,Sellershall be consideredhavefulfilledtheshippingtermsthecontractSellerfurnished proof freightcontractengagement, or charterparty, or both, therefor,andalsoproof thatthegoodswereavailablecontractquantity and qualitytimeforshipmentfromseaport.suchevent,shipmentshall be made by next availablevessel.The periodhereinspecifiedwithinwhichBillsLadingmustdatedshalldeemedincludeadditionalperiodnotexceedeight(8)calendardays,whe
24 ndesired by theSeller, provided Sellergi
ndesired by theSeller, provided SellergivesBuyernotice of Seller’sintentionsclaimadditionaldayselectronicmailwithacknowledgmentreceiptrequestedtelefaxsentlaterthanthebusinessdayfollowing the last day includedtheoriginallystipulatedperiodforshipment,suchnotice be passed on by otherSellerstheirBuyersrespectively, due coursereceipt.Suchnoticeneednotstatethenumberadditionaldaysclaimed by the Seller, and the Sellermayship any timewithineight (8) additionalcalendardays.TheSeller,however,shallmakeallowancetheBuyer,deducted the invoicefrom the contractpricebasedthenumber of days by whichtheoriginallystipulatedperiodexceededfollows:If exceeded by 1, 2, or 4 calendardays,1/2of 1% the gross C.I.F. C.&F.price;exceeded by 5 6 calendardays, of thegross C.I.F. C.&F.price;exceeded by 7 8 calendardays, 1-1/2%thegross C.I.F. or C.&F.price.If,however, afterhavinggivennoticetheBuyerabove,theSellerfailsmakeshipmentwithinsucheight(8) calendardays,thenthecontractshall be deemedhavecalledforshipment during theoriginallystipulatedperiodpluseight (8) calendardays,contractpriceless 1-1/2%, and anysettlementfordefaultshall be calculated on thatbasis. the eventshipmentcannot be made by Sellerwithinthecontractshipmentperiod, or within the eight(8)- calendar-day periodallowedabove,SellershalladviseBuyer of suchfact and thereasonssoonpossible. Thereupon, unlessexcused by “forcemajeure,”Sellerwilldefault..B.VesselDeliveriesFor F.O.B. VesselContracts,BuyershallgiveSellervesselnomination(s),either by electronicmailwithacknowledgment of receiptrequestedtelefax,whichshallincludeaccuratelypossibletheestimateddate arrivalthevessel(s)andvesselname(s).Thenomination(s)shallgivenleastfourteen(14)calendardaysadvance the saidestimateddatearrival, and thesefourteen(14)calendardaysshallcommencerun on the businessdayfollowing the datereceipt of the nomination(s) by theSeller.Buyershallhavetherightnominatecontractualquantityeitherpartialcompletefulfillment of contract,fordelivery a barge or landtank.Preadvicemust be identical F.O.B. vesseldeliveries.ForpurposesthisRulethebusiness day expires3:00p.m. (1500 hours)EasternTime. F.O.B. VesselContra
25 ctsspecifyingpaymenttermsCashAgainstDocu
ctsspecifyingpaymenttermsCashAgainstDocuments,named location, Sellerentitledpayment on the same day when the documentsareorderandarepresentedBuyerBuyer’sdesignatedagentprior12:00Noon (1200 hours)EasternTime.Failurepay the same day willobligatethe Buyer for eachday’sinterestuntilpaymentmade.Interestclaimswill be sufficientcausewithholdrelease of documentsafterBuyer has paidfullfor the goods.InterestpaymentsshallpaidreceiptSeller’sinvoice.Interestchargebased 1.5% overcurrentPrimeRate.F.OVesselContracts, the Buyer’svesselfailsto load by the last day of shipping period specifiedthe contract,suchshipping period shalldeemedinclude an additionalperiod of notmorethaneight(8)calendardays,whenrequested by Buyer. 41 FullyRefinedSoybeanOilAnalyticalRequirements:Color, Lovibond (maximum) ............................................................... 20 yellow/2.0redFreeFattyAcid,Oleic(maximum) ................................................. 0.05% by weightPeroxide value ..................................................................................... 2.0meq/kgmColdtest(minimum) ........................................................................... 5.5 hoursFatstability,AOM(minimum).............................................................8 hours-35 meq/kgmMoistureandVolatileMatter(maximum) .......................................... 0.10% by weightPreservatives(GRAS)arepermittedChemicalanalysisshallmadeaccordancewiththe methods from“OfficialMethodsandRecommendedPractices the AOCS,Chapter:CommercialFats and Oils,SectionC.”The chemicalanalysisdeterminequalityshallinclude the qualitativetestforfishoilandmarineanimaloilsprescribed by AOAC Method No. 974.20 and shall be negative.PhysicalRequirements:The oilshallclearandbrilliantappearance 70°–85° The oilshall be freefromsettlings or foreignmatteranykind.The oilshallhave a clean,freshflavorandshall be freefrom rancid, beany,painty,sour,otherobjectionableflavorsodors,specifiedU.S.DepartmentAgricultureSpecificationA-A-20091D. QuantitiesandQuantityTolerancesA tolerance of more or 5% lessthequantityspecified by contractrecognized a c
26 ustom of the tradeandpermitted.Thecontra
ustom of the tradeandpermitted.Thecontractpriceshallgovernsuchtolerancequantity.Should thequantityshippeddifferexcess of more, or lessthecontractquantity,Buyershall not be entitledrejecttheshipment,buttheSellershallmakeallowanceforthedifferenceover or undercontractquantitymay be agreed by Buyer and Seller, or, not agreed,thenmay be fixed by arbitrationprovidedtheseRules.Wherethecontractstatesminimum/maximum (or min./max.), the minimum/maximumrequirementdeemed be satisfied by delivery of the contractquantityplusminus 1.5 (oneandhalf)metrictons,eitherfor any partialcompletefulfillment of the contract.Forthepurpose of theseRules,ships’tanksshall be understoodmean any and alltanks,compartments,or both, containedvessels of any kindwhichoilshippedbulk.The terms“shorttons,”“metrictons,” and “long tons”shall be understoodmean tons of pounds,2204.6 andunds,respectively. 40 PhysicalRequirements:CrudeDegummed Soybean Oilsoldforexportshall be pure soybeanoil.shallbe producedfromfairaverage quality crudesoybeanoilfromwhichthemajor portion the gumsnaturallypresenthasbeenremovedhydrationandmechanicalphysicalseparation.shall be equalin qualitysoybeanoilproducedfordomesticconsumption.OnceRefinedSoybeanOilAnalyticalRequirements:Clearandbrilliantappearance70°85°Freefromsettlings,85°Shallcontainnotmore than 0.10% moistureandvolatilematter using AOCSOfficialMethod 2c-25.Shipment up allowed,withfollowingdiscountappliedover0.10%: of contractpricecontractpricecontractpricecontractpricecontractpriceFreeFattyAcidsshallnotexcess0.10%.Shipment up 0.15%allowed,withfollowingdiscountappliedover0.10%:contractpricecontractpricecontractpricecontractpricecontractpriceColor whenbleachedaccordingAOCSMethodshall not be darkerthan 3.5 redandshallnothave a predominantly greencolor.Flashpointshall be below 250° determined by AOCS Method The unsaponifiablechemicalcontentshallnotexceedwhendeterminedaccordingAOCSMethodThe chemicalanalysisdeterminequalityshallinclude the qualitativetestforfishoilandmarineanimaloilsprescribed by AOAC Method No. 974.20 and shall be negative.PhysicalRequirements:OnceRefinedSoybeanOil
27 sold forexportshall be puresoybeanoil.sh
sold forexportshall be puresoybeanoil.shallproducedfromfairaveragequalitycrude soybean oilfromwhichessentiallyall of thefreefattyacidsandoilsubstanceshavebeenremoved by refiningtreatments. 1300 L Street, NW , Suite 1020 Washington, DC 200054168Phone: 202.842.0463Fax: 202.842.9126 Website: www.nopa.org OFFICIAL WEIGHMASTERAPPLICATION D ATE : The candidates listed below are recommended for appointment as Official NOPA Weighmasters for the period of October 1, 2016 to September 30, 201 7 . NAME (please type) TITLE OF REGULAR JOB SIGNATURE By my signature above, I agree to comply with NOPA Weighmaster regulations listed on the reverse side and I certify that I have read the “Duties of a Weighmaster” printed on the reverse side. Certifies the above candidate(s) are qualified to serve as NOPA Weighmasters and are coveredby a minimum $10,000 bond. ______________________________________ Member Firm ______________________________________ City and StateReturn certificate(s) to:Jeanne Seibert1300 L Street, NW – Suite 1020Washington, DC 20005jseibert@nopa.org Signed: Name: Title: Company: Address: City: ate: Zip: Phone: Email: __________________________________________ 33 APPENDIXMETHODSANALYSISThe methodslistedbelowindicatethelatestissuethetimethispublication. behooves theuserthesemethodsmakecertainthatuserhasavailableandfollowingthelatestrevisioneachspecificmethod.ProductSoybeanOil,CrudeDeterminationFlashpointMoistureand VolatileNeutralOil*RefiningLossBleachTestBleachTest*ColorFreeFattyAcidsSamplingUnsaponifiableMatterPhosphorusMethodAOCS-95 AOCS-25 AOCSAOCS-52 AOCS 8b-52 AOCSAOCS 13b-45 AOCSAOCS C 1-47 AOCS-40 AOCS 12-55 SoybeanOil,RefinedMoistureandVolatileMatterMoistureFreeFattyAcidsBleachTestChlorophyllUnsaponifiableMatterPhosphorusAOCS-25 AOCS 2e-84 AOCSAOCS 8b-52 AOCS13d-55 AOCS-40 AOCS 12-55 SoybeanOil,Ref
28 inedand BleachedMoistureandVolatileMatte
inedand BleachedMoistureandVolatileMatterMoistureFreeFattyAcidsColorChlorophyllUnsaponifiableMatterPhosphorusPeroxideAOCS 2d-25 AOCSAOCSAOCS 13b-45 AOCS13d-55 AOCS-40 AOCS 12-55 AOCS-90 SoybeanOilforechnicalUseslodineValueUnsaponifiableMatterPhosphorusAOCS 1d-92 AOCS-40 AOCS 12-55 RefiningByproductLipid,Acidulated;RefiningByproductLipidandTank BottomsSamplingTotalFattyAcidsandOxidizedFattyAcidsNeutralOilTiterTestpH AOCS G 1-40 AOCS G 3-53 AOCS G 5-40 AOCS G 6-40 AOCS G 7-56 *Thesemethodsare be usedforcrudesoybeanoilsettlements. 32 using a thermometerthefield,shouldagainchecked one moretemperaturesnearmidscaleagainst a recentlycalibratedthermometer.Cup or flushingcasethermometersshouldbe used.MINIMUMNUMBERTEMPERATUREMEASUREMENTSFORVARIOUSDEPTHSPRODUCTS Depth of Product More than 15 feet Minimum No. 3 Measurement Levels ft.belowtopsurface product, middleproduct,and 3 ft.abovebottomsurface of product 15 feetft.belowtopsurfaceproduct,and 3 ft.abovebottomsurface of productLessthan 10 feetMiddleproductProcedureTemperaturesmust be taken the sametime the liquidlevelgauged.Thermometersmusthaveattainedthetemperaturetheproductbeforereadingthem the nearestdegreeFahrenheit.Forcupcasethermometerassembliestheminimumimmersiontimefortemperaturereading 3 minutes. the temperaturebetweenlocationsspecifiedtheprecedingtablevaries by morethan 2° F.,thentemperaturesmust be taken a minimum of 5 verticallocationsfor contentsheightslessthan 25 feet,every 5 feetforgreaterheights.SpecificGravityDeterminationReference:ASTM-D-AOCS Method -95 Bureauof StandardsCircular #19 A pycnometer of thetypeandaccuracyspecifiedmust be used.Thesampleusedtakenfromthe tank thetime the gauge and temperaturearetaken or a portiontheofficialcompositesample. The pycnometermust be calibratedwithdeaerateddistilledwater the temperature of the tankcontents.Specificgravitydeterminationmadethelaboratorytheexacttemperaturethetankcontentsandreportedspecificgravity 5° F/t°where“t”thetemperature the tank gauging.The weightpergallontheoilgaugedcalculated by multiplying the determinedspecificgravity by the weightgallon of water(inair)thetankt
29 emperaturegivenU.S.BureauStandardsCircul
emperaturegivenU.S.BureauStandardsCircular #19. 31 Gauging tapeswillspecifiedASTM-D-paragraph 4 andmusthave been recentlycheckedforaccuracyagainst a tapecertifiedaccuratewithin0.005per100 any point by theNationalBureauStandards. the oilhasbeenrecentlytransferred,sufficienttimewillallowedforfoam on the surfacedissipate. the oil has beensubjectedheatingagitation,allowleasteight(8)hoursafterdiscontinuing before gauging. Longer waitingtimesmay be necessaryensurethattheoilnotmoving and thatallairhasbeendissipated.Innage gaugestakenaccordingtheprocedurespecifiedASTM-D-1085 paragraphs 21 andwillusedforallmeasurements.The tapereadingthetankreferencemark on thegauginghatchmust be reportedforeachgauging.A minimum of twogaugingswill be takenforeachreading.checksare not obtained,repeatgauginguntiltworeadingscheckwithin1/8inch.Readingsshould be made the nearest1/16inch.temperatureoilabove 80° corrections must be madeforshellexpansionduetemperature. The temperature of uninsulatedtankshellshall be taken the meanbetweenproducttemperatureandambient.temperatureoilabove 80° a tapetemperaturecorrectionshall be made. tank bottom not flatand a liquidcalibrationhasbeenmadedefinedparagraph- A-1-b, and entirecontentsare be delivered, the bottomtwofeet of oilmusttransferred a separatesmallertank for gaugingafter the top oilhasbeendelivered.Whenthere any question about the firmnessthetankbottom,multiplegaugepointswill be usedand the resultsaveragedgeometrically. the relationshipbetween any twoindividualreferencegaugeheightsvariesmorethanoneinchfrom no loadfullload(orviceversa),thetank must be used for officialquantitydetermination.WeighingWherepracticable,weighingthemostaccuratemethod of determiningquantity.Thescalesusedmusthavebeeninspectedandapproved by a recognizedauthority and a weighing done by a certifiedweighmaster.Goodengineeringpracticemust be followedthroughoutallstages of the weighingprocedure.TemperatureDetermination of TanksReference:ASTM-D-Use cup flushingcasethermometersdescribedthismethod.Somevariety of selectionallowed,basicallythethermometermust be topqualityandcheckedfollows:Beforeinitialuseandleastannually,thermom
30 etershallstandardizedthelaboratoryby com
etershallstandardizedthelaboratoryby comparing with a Bureau of StandardsThermometerthreemoretemperatures.Before 30 a givensampletakenfrom a position a tankthatrepresentslessthan 0.1% the totaltank volume, the samplemay be discardedandneednot be includedthecomposite.ContinuousFlowSamplesFollow specifications of AOCSMethod C 1-47. SamplesfromBarrels,Drums,Tierces,etc.Blendallsamplesthoroughlyform the composite,and draw offthefourofficialsamples.QuantityDeterminationTank CalibrationReference:ASTM-D-Tanks be usedformeasuringsoybeanoil by tank gaugingmethodsshallmeetthefollowingrequirements:Tank must be a cylindrical,uprightfixedrooftank,aboveground,goodmechanicalconditionwithamount of lessthan 1 part 70. Tank bottommustfirm and flatandlevelwithin 0.5 inch. Bottomsnotmeetingthisspecificationshall be calibrated by liquidcalibration-1220 paragraph23).Tank shallhavebeencalibrated by a qualifiedtankstrapperwithin the lastthreeyears or acceptablecheck on calibrationdetailedASTM-D-1220 paragraph 16, performedwithinthelastthreeyears.Certifiedgaugingtableavailablethesurveyortime of takingmeasurements.Thistablemustinclude the referencegaugingheightfromthebottom or datum platethegaugingreferencepoint.Tank capacityshallsuchthatthequantity be determinedstoretransferred by gaugingwill be equivalentmorethan25%thetotaltankvolume.Tank calibrationshall be performed by thestrappingproceduredetailedASTM-D-1220 utilizingtheproceduresfor“CriticalMeasurements”definedparagraph 13b. Instrumentsusedcalibrationandcalculationsmust be detailedtheASTMstandard and conform good engineeringpractice.Calculationthegaugingtablesshouldincludecorrectionforexpansionand contractionthetankshelldueliquidhead.Gauging ProcedureReference:ASTM-D-Tank usedmustmeettherequirementsparagraph-A-1 of thesestandards. 29 SamplingOilBarrels,Drums,Tierces,otherPackagesUsingoilthief of suitablelength,insertthethiefthrough the openingnearestthecenterthepackagewith the thumbfirmlyover the end thethief no oilentersWhenthethiefstrikesthe bottom of the package,quicklyliftandreplacethethumbadmit a smallsamplefrom the packagebottom.Withdrawthethief,wipingoffexces
31 soilfrom the exterior, and dischargethes
soilfrom the exterior, and dischargethesmall bottom sampleinto a suitablecleancontainer and examineclosely.Thenproceedfollows: oil frompackage bottom clearproceedsamplethepackage by insertingthethiefslowlyintotheoilwith the fingervalve open. Whenthepackagebottomstruck,close the thumbfirmlyoverthefingervalve,withdrawthethiefanddischarge the sampleinto a suitablecleancontainer.Repeatthisprocedureseveraltimesforeachthepackagessampled.suretherequiredamountcompositeobtained. oil frompackage bottom not clearthereanyevidencewater,sediment,etc.the bottom of the package,agitate the oil the packagevigorouslyuntil the contentsareuniform and thenproceedunder(a) above. A portablemechanicalagitatormayused or the drum or barrelmay be sealedandrolledabout by hand. Preparing the CompositeSampleBulkStorageTanks,Barges,ShipTanks tank uniformcrosssectionThismeansthateachinchthe tank containsapproximately the same quantity of oil (forexample, the standardvertical,cylindricalstoragetank).i.Bomb- and ZoneTypeSamplerspreparethecompositesample,blendtogethertheindividualsamplestheproportiontheirlocationtotaloildepth.Mix the composite thoroughly with a mechanicalagitator or by handwith a paddle, and draw offthefour ½-gallonofficialsamples.ii.CoreTypeSamplerBlendallthesamplestakenuniformlyform the composite and drawoffthefour ½- gallonofficialsamples. tank not of uniform crosssectionThismeansthateachinch the tank depthdoesnotcontainthesameamountoil(forexample, a railroad tank carwherethebottom inch containsonly a smallfraction of the oilthat a oneinchlayernearthemiddle of thetankrepresents).all of thesamplesdrawnfromthe tank containedonlyclearoil,thenwillsufficemerelyblendall of themtogetheruniformlyprepare the compositesample.If, however, any of thesampleswereclearand presence of water or sedimentindicated,thenthecompositesamplemustpreparedby weighingeachsampleaccordingtheproportionthetotaltankvolumerepresents. 28 the contentsinto a suitablecleancontainerandexaminethesamplecarefully for anysigns of water,sediment,etc.Thenproceedfollows:(a) oil clearandtheresign of any solids,water,foreignmaterial,drawsuccessivesamplesonefootincrements
32 thetank (using thepull cord openthe samp
thetank (using thepull cord openthe samplervalve),proceedingfrom bottom top.Repeatneeded,using a different tank opening timepossible,untilrequiredamount of compositesample has beenobtained.tankbottomreasonablyflat,takefirstsamplesfromnearthecenterpossible,nextsamplesfromneartheside,etc. tank bottom not flat,takefirstsamplesfromdeepestparttank,nextfromseconddeepestpart accessible,etc.,untilrequiredvolumecomposite has beendrawn.(b) the oilnotclear, showing presencewater,solidssuchsoybeanmeal,rust,etc., add a inchextension the plungerthesampler,valve and againlowerintothetank. The samplerwillautomaticallyopen one inch from the tank bottom.Whenthesamplerfull,drawoutanddischargecontentsinto a cleancontainerand examineclosely. no solids,water,etc.arepresentthissample,proceeddrawplesfootlevelsdiscussedabove.water,solids,etc.arepresentthisoneinchsample, add a twoinchextensionthe samplervalveandrepeattheprocess.Continue adding extensionsthevalveplungerthismanneruntil a sampletakensomefixedpoint above thetankbottomcontainsonlyclearoil.Thenproceedtakesamplesonefootlevels the remainder of theway the surface the oil.Repeatneeded,severaltanklocationspossible,untilrequiredamount of compositesample has beenobtained.Placethebottom,oneinch,twoinch,etc.sampleseachseparate,labeledcontainers and holdthem for addition the compositesamplediscussedbelow.CoreSamplerWiththesamplervalveclosed,lower the coresamplerintotheoiluntilstrikesthe tank bottom.Thenopenthevalvebriefly by turningtheoperatingrod,quicklyclosetightlyagain and pullthe coresamplerfrom the oil.Dischargethesmallsamplefrom the tankbottominto a suitablecleancontainer and examinecarefully for any indication of thepresencewater,sediment,etc.Thenproceedfollows: oil tankbottomsampleclearopenthevalve of thecoresampler and lowerslowlythrough the oiluntilthesamplerstrikesthe tank bottom.Thenclosethevalve,withdrawthesampler, and discharge the sampleinto a suitablecleancontainer.Repeatneededseveral tank locations,possible,untilrequiredamount of compositesamplehasbeenobtained. oil tankbottomsamplenotclearabandonusethecoresamplerandsamplethetank with a bomb- or zonetypesamplerspecifiedun
33 der (bb) bomb- and zonetypesamplerproced
der (bb) bomb- and zonetypesamplerprocedure.ContinuousSamplingDuring Loading andUnloadingOperationsFollow specifications of AOCSMethod C 1-47. 27 NOTE:Whereonlyoneshipmentinvolved,butstoredseveraltanks(e.g., a barge),each tank should be sampled,but the totalamountcompositewilldetermined by totalamountshipment. the case drum shipments,theminimum of samples per receiptwillspecifiedthetable below. Selectrandom the individualpackages be sampled.Thenumber of suchrandom packageswilldepend upon severalpracticalconsiderationssuchas:The tightnesstheproductspecifications;The source and type the materialandwhethermorethanoneproductionbatchmaybe representedthelot;and,Previousexperiencewithsimilarshipments,particularlywithrespecttheuniformity of quality frompackagepackage.A receiptusedhereinrepresentsparts a lotthataredistincttimeplace.ShipmentsBarrels,DrumsTierces,andOtherPackages(ReprintedwithpermissionfromASTMStandardD270 No. of No. of Packages No. of Packages Packages No. of Packages In the Lot to be Sampled In the Lot to be Sampled 1 to 3 all 1332 to 1728 12 4 to 64 4 1729 to 2197 13 65 to 125 5 2198 to 2744 14 126 to 216 6 2745 to 3375 15 217 to 343 7 3376 to 4096 16 344 to 512 8 4097 to 4913 17 513 to 729 9 4914 to 5832 18 730 to 1000 10 5833 to 6859 19 1001 to 1331 11 6860 or over 20 The minimumamount of compositesamplefourgallons.SamplingProcedureTakingtheIndividualSamplesStorageTanks,Barges,ShipTanks, and RailroadCarsNOTE:Always choose the samplinglocationsuchthat the deepestpartthetank be reachedwith the sampler.thiscannotdone,thecasewithsomeships’tanks, pump the oilinto a suitable tank beforesampling.i.Bomb- or ZoneTypeSamplerWiththesampler’svalvetightlyclosed,allow the samplerto sink down intothetankandstrikethetankbottom, thus automaticallyopeningthesamplervalve.Whenairbubblinghas stopped, showing thesamplerfull,haul the samplerthesurface and discharge 26 OilThiefDescriptionThe oilthiefmustmeetthespecif
34 icationsAOCSMethod C-1-withtheexceptiont
icationsAOCSMethod C-1-withtheexceptionthatthe thiefshouldplastic or metalconstruction,notglass.Thethief a tube, 3/8- ½- inch inside diameter,suitablelength.One end constricted by a shorttaper(notmorethan oneinchlong)about a ¼-inchopening. The other end constrictedsufficientlythatcanbe used a fingervalve.UsageLimitationsThe oilthiefshould be used for samplingsmalltanks,barrels,drums,etc. of gal.capacityless.Samples of bothuniform and uniform oil may be takenwiththeoilthief(see“SamplingProcedure”below for specialmethodsfor using oilthiefwhereoilnon- uniform).DevicesforContinuousSampling During Loading UnloadingOperationsDescriptionThesearethecalled“bleedersamples.”Allcontinuousflowsamplesshould be takenonlywithapparatusmeeting the specificationsAOCS Method C 1-47.Wheremultiple loading unloading linesareuse, a separatesampletankshould be availableforeachloading or unloading line.However,agitator not requiredforeachindividualtank. A portableagitatormay be insertedintothesample tank thoroughlycomposite the accumulatedmaterialbeforerepresentativesamplesaredrawn.Thesamplingapparatusshould be protectedfrom the weatherpreventwatercontamination of samples. The apparatusshouldwatchedconstantly during use checkforplugging of the bleederline,otherproblems.UsageLimitationsThismethodapplicableonly the oilbeingsampledcompletelyfree flowing, essentiallyhomogeneous, and doesnotcontain any materialthatcouldplugthebleederline.Size and Number of SamplesGeneralThe generalprocedure draw a number of smallsamplesfromvariousportionstheoilshipment,compositethesesamplesthoroughly and thentakerepresentative ½-gallonofficialsamplesfrom the composite.allcases, a minimum of four officialsamplesshould be takenfrom the composite.Thispermits one sample for thebuyer, one for the seller and tworeservefor possiblearbitration.Thetotalsizethecompositesample willvarywiththesize of theshipment,willnever be less than fourgallons(approximately 30 lbs.).Increasing the amountof compositewillyieldmorerepresentativesamples.Thefour ½-gallonsamplestakenfrom the compositeshallconstituteofficialsamplesdrawn by a qualifiedsampleraccordance
35 withproceduresdescribedherein and labele
withproceduresdescribedherein and labeledrequiredNOPARuleNo. 102. 2 5 DevicesforSamplingStorageTanks and ContainersBomb or ZoneSamplersDescriptionThesesamplersaretheBaconBomb or CurtisandTompkins Zone Samplertype.Thesesamplersareconstructedthat a samplemay be takenfrom any portion a storagetank.They consistessentially a sealedcylinderequippedwith a tightfittingvalveandairbleederassembly.Thevalveopenedeitherautomatically upon contactwith the tankbottom or by hand any desireddepththetank by meansattachedpullcord.Thesampler and actuatingplungershould be designedpermittaking a samplefromwithin1/4” less of thetankbottom.Theplungeractuatingthevalve should capable of being fittedwithextensionsthatsamplesmay be takenfixedincrementsoneinchfrom the tank bottom(see“SamplingProcedure”below).Usesamplersbuilttakeapproximatelyonequartsamples.UsageLimitationsThesebombtypesamplersare the basicpiece of samplingequipment and may be usedallapplications. The onlyexceptionforsmalltanksdrumswhere the openingsthecontainermay be too smallpermitentrythebombsampler.CoreSamplerDescriptionCoresamplersshould be constructedthespecificationsfortheOfficialTriertheNationalCottonseedProductsAssociation.TheTrierconsists of a metaltube of twoinchinside diameterthroughout.Tubelengthmust be sufficienttake a crosssectionthroughthe entiredepth of theoil.One end the Trierfittedwith a tightvalvewhichallowsunrestrictedopeningtwoinchesdiameterwhenfully open. Thevalvecontrolled by means a rod from the top of theTrier. The Trierconstructedtake a samplewithin1/4inchlesstankbottom.UsageLimitationsi.Oil of UniformCompositionthecoresamplermay be usedallapplicationswherethe oilshown of uniform composition and freefrom any layerwatersedimentthebottom of thetank.However,triersover 20 feetlengthbecomeratherunwieldy. ii.OilNotUniform Composition—wherethere any evidencestratificationtheoil(e.g., a water or solidslayer),thecoresampler may be usedonlythestoragetank of uniform crosssection(thatis,eachinchtank height containsapproximately the samequantityoil).Wherethetanknotuniformcrosssection, a coresamplershouldnotbe usedthere any evidence of un
36 iformitythe oil such a waterlayer,etc.(S
iformitythe oil such a waterlayer,etc.(See“SamplingProcedure” below formethod of detectingpresencelayers). 39 APPENDIXF.SOYBEANOILEXPORTTRADINGRULESAdoptedAugust 27, AmendedAugust1979;August1980;August1982;August1983;June1984;August1988;February2006ApplicationRulesTheseRulesareserve a guideonlyfortransactions.understoodthatthepartiessuchtransactionsarefreeadopt,modifydisregard the Rules.GradesandQualityCrudeDegummedSoybeanOilAnalyticalRequirements:MaximumMinimumMethodUnsaponifiableMatter1.5% 6a-40 FreeFattyAcids,Oleic0.755a 5a-40 MoistureandVolatileMatter and 0.3% M & V 2c-25 InsolubleImpurities 3a-46 Flashpoint250° F 9c-95 Phosphorous0.02%b 12-55 The chemicalanalysisdeterminequalityshallinclude the qualitativetestforfishoilandmarineanimaloilsprescribed by AOAC Method No. 974.20 and shall be negative.Deviations:Onlythefollowingareallowable,with the discountsapplyshown.i.FreeFattycontractpriceAcids0.86%0.95%0.4%contractpricecontractprice— contractprice1.16%— contractceii.PhosphorousShipment up 0.025%permitted,withthefollowingdiscountsforexcessover0.020%.contractvaluecontractvaluecontractvaluecontractvalue of contractvalue DATE:measuring device at (plant identification or location of scale or flow meter) (company) plant is described below and is certified to (city and state) have been inspected as attested by the attached inspection report . DISTRIBUTION White to: National Oilseed Processors Association 1300 L Street, NW Suite 1020 Washington, DC 20005-4168 Yellow: To be retained in your filesBy my signature, I certify that the above information is accurate and true. I also certify that the required Weighmaster Duties and Procedures have been reviewed with the Weighmaster approved by NOPA and continued compliance thereto confirmed. SIGNED: NAME/TITLE: COMPANY: ADDRESS: CITY: ZIP: PHONE: NOTE: This certification expires on: Form for semi-annual recertification will be distributed by NOPA 30 days in advance of expiration of this certification. 1300 L Street, N.W., Suite 1020 Washington,
37 DC 20005-4168 Phone: 202.842.0463 Fax
DC 20005-4168 Phone: 202.842.0463 Fax: 202.842.9126 www.nopa.org SEMI-ANNUAL SCALE & FLOW METER REPORT Flow Meter:Type:Manufacturer:Model:ength: Truck Scale:Track Scale:Hopper Scale:A) INSTALLEDBefore December 1, 1979After December 1, 1979B)Capacity per DumpC)Electronic: No D)Manual:Yes No Last Scale or Flow Meter Check: (copy attached)(date) , Rev 10/16 NOPAWeighmasterRegulations Does buy sellsoybeans,soybeanoilsoybeanmeal for Weighmaster’sownaccountjointly or otherwise for the account on behalfothers,except for soybeansproduced by Weighmaster.Correctly and faithfullyperformsWeighmaster’sduties a NOPAappointedOfficialWeighmaster.AgreesthatNOPAmayrevokeWeighmaster’sdesignationOfficialWeighmasteranytimeduring theperiodthisagreement.familiarwithalloperationsand around facilitywhichmightaffecttheaccuracy of theweight be covered by a NOPAofficialweightcertificate. Duties a Weighmaster HopperScales Checkallequipmentsetfor loading unloading,noting any exceptionswhichwouldrenderemptyequipment unfit forloading,whichcaserejecttheequipment.CheckGarnerandScaleseethatalloperatingcomponentsarefunctioningproperly.CheckScaleforZeroroutinely;checkScale for repeatabilityperiodically.Seethatproductloadedequipmentproperlytrimmed.Checkequipmentforleaksafterloading and reportcarrieranyleaksnotreadilyrepairable.Ensurethatallapplicablesealingrequirementshavebeenmet.Checkallconveyance,spouting, and receivingequipmentbetweenscalehopperandequipment be certain no leakageinvolved. PlatformandTrackScales Checkallequipment for loading unloading,noting any exceptionswhichwouldrenderemptyequipment unfit forloading,whichcaserejecttheequipment.2 CheckScaleregularintervalsseethatgappedandproperlyoperating.CheckscaleforZeroroutinely;checkScaleforrepeatabilityperiodically.Seethatproductloadedequipmentproperlytrimmed.Checkequipmentforleaksafterloading and reportcarrieranyleaksnotreadilyrepairable.Ensurethatallapplicablesealingrequirementshavebeenmet.freezingweather,that dust guardsarefree and Scalefrozen. FlowMeters Checkallequipmentsetfor loading unloading,noting any exceptionswhichwouldrenderemptyequi
38 pment unfit forloading,whichcaserejectth
pment unfit forloading,whichcaserejecttheequipment.Check flow meterverify proper operation.Checkequipmentforleaksafterloading and reportcarrieranyleaksnotreadilyrepairable.Ensurethatallapplicablesealingrequirementshavebeenmet.Checkallconveyance,spouting, and receivingequipmentbetweenflowmeter and equipment,certain no leakageinvolved. 24 Before beginning any transfer or gaugingoperation,thevesselinitiallycontainingtheoilshould be inspectedfor any evidence of contamination,leakageotheroccurrence(e.g.,brokensecurityseals)whichmightaffectthequality or quantity of oilcontainedtherein.During transferoilfrom one compartment or tankanother,suitableinspectionsandapproximategaugingsshouldmadedeterminethattheoilbeingtransferredintendedandpreventspills or otherlossesdueoverfilling,leaks,vessel becoming out of trim, other causes.Whentransfercompleted, the originatingvesselshould be inspectedsureempty.Pipelinesandpumpsshould be blownclearandlines,valvesandhatchesthereceivingvesselsecured.Valves and hatches of thereceivingvesselshouldsealed by the authoritysupervising the transfer.Samplesshould be takendirectedandaccordingthe methods outlinedthisprocedure.Whereactualinspection any terminalfacilitiesnotfeasibleduephysicallayoutotherlimitations,theinspectormayissue a certificatecleanlinesswarranted by a similarstatementissued by theterminal. the inspectionomitted and a certificateacceptedlieuthereof,saidcertificatewillstate the reasonsfortheinspector’sinabilityfullyinspectallfacilities.SamplingGeneralfarthebestandmostrepresentativesamplesarethosetakenwhen the oilhasbeenthoroughlymixed by pumping agitationandthusuniformcompositionthroughout.Samplesmust be takenfromtanks,barges,etc.immediatelyafterthepumping oil intothem has beencompletedand before any solids or foreignmatter has hadtimesettle.Wheretanksareequippedwithmechanicalagitators,thesemust be operated for a minimum of one hour before sampling begun.Stoptheagitationprioractualsampling.Allsamplingequipmentandcontainersmust be completelycleanand dry beforeuse.Newsamplecontainerstinplate or suitablepolyethyleneconstructionshouldusedexclusivelyand should be equippedwithti
39 ghtfittingcovers or caps.Labelthesamplec
ghtfittingcovers or caps.Labelthesamplecontainer and complete the affidavitcertifyingofficialsamplesrequired by NOPA Trading Rules.Caremusttakenprotectsamples,containers, and equipmentfromrain or otherprecipitationavoidwatercontamination of thesamples.The obtaining of trulyrepresentativesamplesdepends a largeextent on thegoodjudgmentand experience of theinspectortakingthesample.Theinspectorwillrequiredmakemanyjudgments:whethertheoil being sampleduniform or not, wherethesampleshould be drawn,whetherwatersolidsarepresenttheoil,etc.Onlywelltrained,experiencedinspectorscanmakesuchjudgmentscorrectly. 19 SellershallinspectBuyer’s tank cars or tank trucksbeforeloadingand,foundunsatisfactory,notifyBuyerby electronicmailwithacknowledgment of receiptrequestedtelefax. the eventthattanktruckscannotbe effectivelyinspected,theyshallnotloadeduntilBuyer has beennotified by electronicmailwithacknowledgment of receiptrequestedtelefax,andBuyerspecificallyauthorizessuchloading.Buyershallhavetheoptionreplacing the tankcarstanktrucks.tankcarstanktruckswhichcaneffectivelyinspected,BuyermayrequestSellerclean the tank cars tank trucksBuyer’sexpense, or Buyershallacceptresponsibilityforthecondition of theoil.Anynecessarycleaning and repairingshall be performed the expense of the Buyer on thebasis of actualcost.Failure by Sellerobservetheforegoingshallconstitutenegligence on Seller’spart, and shallrelieveBuyerresponsibilityfor any and alllossdamageresultingtherefrom. a Seller’sloadedtankcar or tanktruckdeliveredBuyer a faultycondition,immediaterequestmustbe made by Buyerforinspection by Seller.Sellershall thereupon eithermakesuchinspection or arrangewithBuyercorrectsuchfaultycondition,theSellerbeingliableonlytheextent the expenseincurredcorrectingit.Secton 4. RECONSIGNMENTBuyerandSellershall not divertreconsigntankcarswithoutmutualconsent.Anyexpenseincidentalreconsignment or diversionfor the accountthepartyresponsible.Section 5. UNLOADINGTIMEBuyeragreesemptySeller’stankcarspromptly upon arrival and returnsameemptyperSeller’sinstructions.Fortyeight(48)hoursfreetimewill be allowedforunloading,unlessrailroadrul
40 espermitlongerperiods specificexportpoin
espermitlongerperiods specificexportpointsunderexportBillLading.Standardrailroadstraightdemurrageregulationswilldefinewhenpenaltychargefordetentionstarts.Chargesthereafterwillseventyfivedollars($75.00)percalendarday.Averageagreementdemurragerulesshallapply.Thesepenaltiesareindependent any demurrage due the railroad by the Buyer. the absenceinstructionsforreturnrouting,Buyershallelectronicallymailwithacknowledgment of receiptrequestedtelefaxSellerforsame and, delayedanswer,demurrage and delayshallforSeller’saccount.Buyercannotheldresponsiblefor failurecarriercarsordered.Selleragrees load Buyer’s tank carspromptly upon arrival,providedcarshavebeenreceivedSeller’splantpriorscheduled loading dates.Fortyeight(48)hoursfreetimewill be allowedforloadingafterscheduledloadingdates.Seventyfive dollars ($75.00) per calendardayshall paid by SellerBuyerpenalty for delayloading tank cars.Thispenaltyindependentanydemurrage due therailroad by the Seller.Sellercannot held responsibleforfailure of carriersetcarsordered.RULCOMMISSIONBROKERAGEUnlessotherwisespecificallyagreedthetime of sale, the Sellershall pay sellingcommissionbrokerageagent or brokerconsummatingsale.The sellingcommissionunderstoodhavebeenearnedwhenSelleracceptscontractsale,eventhoughactualdeliverymaynevermade.Commissionwill be earnedpaidwhenshipmentprevented by theU.S.Government.Commission or brokerageshallnotconsidered due untildelivery has beenmade,contractotherwisedisposedof. 18 RULE 110—FREIGHTRATESSection 1. RATECHANGESUnlessotherwisestipulatedtimesale,deliveredpricesspecifiedcontractarebased on freightrateseffect on dateshipment, and any increasedecreasefreightratesforaccountBuyer.Section 2. BARGES the casebargessoldspecificdestinations,thecontractpriceshall not be affected by any subsequentincreasedecreasethefreightratefuelsurcharge.RULE 111—ROUTINGSection 1. BUYER’STANKCARSWhenBuyerfurnishes tank cars,Buyershallhavetherightspecifyrouting,providingsuchroutingdoesnot involveadditionalfreightexpensetheSelleroverthelowestrate.Section 2. SELLER’STANKCARSWhenSellerfurnishestankcars,Sellershallhavetherightspecifyrouting,withthe
41 exceptionthedeliveringcarrier,whichshall
exceptionthedeliveringcarrier,whichshalltheoptiontheBuyer.Section 3. DRUMBARRELSHIPMENTSshipment of drums or barrels,Seller shallhave the rightspecifyrouting,withexception of deliveringcarrier,whichshall be theoptiontheBuyer.RULTANKCARSAND/ORTANKTRUCKSSection 1. BUYER’SSELLER’STANKCARStime of saleshall be specifiedwhetherBuyer’sSeller’stankcarsareused. nothing specified,thenunderstoodBuyer’stankcarsare be used.Section 2. TANKCARAPPLIANCESAlltankcarsfurnishedeither by the Seller or theBuyermust be provided withsteamcoilsandthenecessaryappliances for theirreadyloading and unloadingallkinds of weather.Section 3. INSPECTIONTANKCARSANDTANKTRUCKSAlltankcars and tank trucksmust be inspected by Sellerbeforeloadingcleanliness,conditionsteamcoils,cap, dome cover and valve, and must be sealed the dome and theoutletvalvewhenequippedbeforebeing shipped. thetankcarsandtanktrucksfurnished by Seller,Buyershallmaintainemptytank carsandtanktrucks a merchantablestatussuitablethetradeandsealsaidtankcars and tanktrucksthedome and the outletvalvewhenequipped,beforereturningthemSeller. the Seller or Buyerfoundgligentof theirdutiesdueeitherimpropersealing,improperrecording of numbers, or both, thenthatpartywill be held responsibleforallcosts,damages and consequencesincurredbringthetank car(s)tanktruck(s)back a merchantablestatussuitablethetrade. 17 Section 2. OFFICIALWEIGHTCERTIFICATION order be approvedforofficialNOPAweighingstatusissueofficialNOPAWeightCertificates,Seller of soybeanoilmust comply withthefollowing: June 30 andDecember of eachyearSellermustfurnish a SemiAnnualScaleReport or FlowMeterReport(seeAppendix D forsampleform)NOPA’sWashington,D.C.Office,indicatingtype,capacity,andlengththescalestype,manufacturer and model of theflowmeter being usedformeasuringsoybeanoilshipments.Attachedthissemiannualreportmust a copy of inspectionissued by a qualifiedindependentinspectorwithinthesix(6)monthsprioreachsemiannualreportingdate. any approveddevicetolerance,NOPAwillimmediatelywithdrawofficialweightstatus.ToleranceunderthisRuledefinedmeeting the requirements of the NationalInstituteStandardsandTechnolo
42 gy Handbook specifications,tolerances,an
gy Handbook specifications,tolerances,andothertechnicalrequirementsforweighing and measuringdevices,andthelegallicensingauthorityforsuchdevices.WeighmasteroathformsmustsubmittedannuallySeptember 30 eachyearNOPA’sWashington,D.C.Office.(SeeAppendix C for sampleform.)Secton 3. WEIGHTCLAIMSWheneversalemadeF.O.B.Buyer’sdestination,allowanceforshortage or damagewillmade by SellerunlessBuyerfurnishescompleteevidence,includingrailroadinspectionreport,to enableSellerpresentcompleteclaim the carrier.Weightclaimsare to be filedsoonpossible,butlaterthanten(10)businessdaysfrom tank carunloadingdate.Section 4. VARIATIONSHIPPINGANDDESTINATIONWEIGHTS the grossweightobtaineddestinationindicates a discrepancy the officialweightssupplied by theSeller, and inspectionshows no indication of leakagetransit,theneitherpartyshallhavetherighthavethe tank reweighedthepresence of representativesbothBuyerandSeller, and theweightsdeterminedshall be usedforsettlement.Scales be used for reweighingmust be good workingordersupported by certificate of recentexamination by authorizedexaminer.suchcertificatenotavailable,thescalemust be testedthepresence a representative of Buyer and Sellerbeforethereweighed.Costof suchweighingshallforpartyrequestingdestinationweights,unlesstheweightstakendestinationindicate a discrepancyexcess of the originalinvoiceweight,whichcase the feeforthisworkshallbe chargedtheaccountthepartyagainstwhom the decisionresults.TheBuyershallreport the discrepancy the Sellerwithintwo(2)businessdaysfrom date of receipt of carBuyer’splant, and theSellershallhavetwo(2)businessdaysafterreceiptelectronicmailwithacknowledgmentreceiptrestedtelefaxwhichadvisetheBuyerwhatactionSellerelectstake.Sellerelectswitnessweighing of car,three(3)additionalbusinessdayswill be allowed for suchaction. the absenceinstructionsfromSeller,Buyermayproceedwithobtainingofficialdestinationweightsthetankcar,taken the presence of a disinterestedparty;destinationweightswillthengovernsettlement.Section 5. COMPLIANCEWITHSECTION 4thatConsigneecomplywithSection 4, theSellershallimmediately,afterloading or weighing tank cars,forward a copytheweightcerti
43 ficate,BillLading, or invoiceConsignee&#
ficate,BillLading, or invoiceConsignee’sreceiving plant. 16 the Sellerdefault:TheBuyershallassesstheSeller a 1/4centperpoundcharge and thedefaultedcontract period shallextendedforadditionalthirty (30) calendardays. neither party has agreedadditionaltime: the Buyerdefault:TheSellerhastheright(withinfive(5)calendardaysaftergivingwrittennotice)sell the oiltheopenmarketfor the Buyer’saccount.Anymarketloss or gainwill be fortheBuyer’saccount. the Sellerdefault:TheBuyerhastheright(withinfive(5)calendardaysaftergivingwrittennotice)buy theoil the openmarketfor the Seller’saccount.Anymarketloss or gainwill be fortheSeller’saccount.Failure by Buyer or Seller any installment a multiperiodcontractshallnot a breachtheentirecontract.Section 3. RIGHTCANCELLATIONAfterexpirationcontract period, theBuyermay not refuseacceptdelivery of oilaftershipmenthasbeenmadeunlessBuyerhaspreviouslynotified the SellerBuyer’sintentioncancelcontractshipment has not beenmade by a particularbusiness day subsequentthedateBuyer’snotification.RUL108B—DOCUMENTATIONREQUIREMENTSFORDELIVEREDBARGESHIPMENTSSection 1. alldeliveredbargeshipments,SellershallprovideBuyerpriorconstructiveplacementthe bargedestinationthefollowingdocumentation:(a)EndorsedorderBillLading; (b) Seller’soriginweightcertificate;(c)Seller’sbargecleanlinessreport; and, (d)Seller’soriginqualityanalysis.Section 2. Sellershall be responsibleforanydemurragecharged by thebargecarrier due Seller’sfailureprovideBuyeranythe above documentspriorconstructiveplacementthebargedestination.RULE 109—WEIGHTSSection 1. OFFICIALWEIGHTSSeller’sofficialweightsaregovernsettlement.Sellershallfurnishcertified copy of officialweightspoint of originshipmentstankcars and tanktrucks.Sellercannotfurnishofficialweightspointorigin on netcontentstankcarsandtanktruckseither by meansinsidetankscales,trackscales,truckscales or flow meters(gross,tareandnet,track or truckscaleweights),Buyershallhavetherighthaveofficialweightstakenpoint of destination,whichweightsshallgovern. no shallrailroadmarkedtareweighing be consideredofficialweights.Costobtainin
44 gofficialweightsshall be fortheaccount o
gofficialweightsshall be fortheaccount of Seller.Weightsshallconsideredofficialwhenweighing done by a StateWeighmaster,Board of Trade,Chamber of Commerce, or otherrecognizedpublic or swornweighmasterapproved or licensed by the supervisingorganization by the NationalOilseedProcessorsAssociation.TheNationalOilseedProcessorsAssociationhastheauthoritywithdrawapproval of officialweighinglicensesif, upon investigation,findsthat the officialweightsbeingsupplied,providedabove,areunreliableeitherfaultyequipmentor faulty use theequipment. 15 RULE 108—TIMESHIPMENTSection 1. SHIPPINGTERMSUnlesstheBuyer and Selleragree an exactshippingdate time of sale,shipmentsforwardingsfornearby positionsshall be interpretedfollows:theshipments,startingfrom the dateshippinginstructionsarereceived by Seller; the caseforwardingsstartingfrom the date of thetrade:Quickshipment, or forwardingWithintwo(2)businessdaysImmediateshipment, or forwardingWithinfive (5) businessdaysPromptshipment, or forwardingWithinten(10)businessdaysScatteredshipment,forwardingSpreaduniformlyovercontractperiodSection 2. CONTRACTDELIVERYPERIODcontracts covering specificquantities for shipmentduring a specifiedperiod,shipment be madeduring the month, or months,specifiedthecontract.However,thelastdaycontract period occurs on Saturday,Sunday, or legalholiday,theSellershallnot be deemeddefaultunderthese Trading Rules by reasonthereof, the originalBill of Ladingthepoint of origindatedthenextbusinessday.Section 3. DATESHIPMENTThe date of theBill of Ladingshallconsideredthedateshipment,forwarding.RUL108A—PERFORMANCECONTRACTTIMESHIPMENTSection 1. DELIVERYINSTRUCTIONSThe Buyershallfurnishinstructionsforshipment,welltankcars(in the eventBuyer’stankcarsarespecified),SellerampletimeenableSellerexecuteorderwithintheperiod or periodsspecifiedthe contract.TheSellershallfurnishtheBuyerloadingscheduleandpointshipmentampletimeenableBuyerhaveBuyer’stankcarsshippingpointwithinperiod periods specifiedthecontract.Under no circumstancesshalltheSeller be eitherexpectedrequiredmake physical tenderallanypart of the oilcovered by anyspecificcontractfor any specifieddelivery
45 unlessBuyer has firstfurnishedwrittenins
unlessBuyer has firstfurnishedwritteninstructionsfurnished tank carsforshipmentprovidedherein.Failure of theBuyersupplywrittenshippinginstructionsshallrelieveSeller of theresponsibility of performanceunderthecontractunlessBuyerfailssupplytheseshippinginstructionswithinthree(3)businessdaysafterSeller’selectronicmailwithacknowledgment of receiptrequestedtelefaxrequestforshippinginstructions.SectionFAILUREPERFORMCONTRACTSCOVERINGCRUDEANDREFINEDOILallcontracts for eithercruderefinedoilcoveringspecificquantitiesforshipment during a specifiedperiod, shipmentmust be made during thespecifiedtime. the Buyerfails provide shippinginstructions,or theSellerunableshipwithintheperiodspecified,additionalthirty(30)calendar day shippingperiod may be allowed by agreement of theparties,withthefollowingpenaltiesaddedsubtractedfromthe contractprice,depending on whichpartydefault: the Buyerdefault:TheSellershallassesstheBuyer a 1/4centper pound chargeandthedefaultedcontract period shallextendedforadditionalthirty (30) calendardays. 14 Section 2. CHANGEOILTYPE the eventthatBuyertakesdeliveryrefinedoilsagainst a contractwritten on a “crudebasis,”theSeller’sdifferentials on refinedoilsprevailingdatechange of specificationsshallapplydeterminingtheinvoiceprice a specificdeliveryagainstcontract.Section 3. CHANGINGUNITDELIVERY the eventthatcontractdrawn on a carloadbasisfordirectshipmentfromplant, and BuyerelectstakedeliveryL.C.L.quantities,theSeller’sL.C.L.warehousedifferentialovercarload on date of specificationsshallapplydetermining the invoiceprice of a specificdeliveryagainstcontract.Anyadditionaltransportationcostsarefor the accountBuyer.Section 4. CHANGEDELIVERYPOINTBuyerrequestsshipmentotherpointsthanthedeliverypointspecifiedcontract, any increase or decreaseSeller’scostfortheaccount of Buyer.Section 5. TAXESAnytaxesnow or hereafterimposed by the UnitedStates(U.S.)Government any taxingthemanufacture,sale,transportation,use of soybeanoilare for theaccountBuyer.RUL107—TERMSSection 1. PAYMENTANDSETTLEMENTUnlessotherwisespecifiedtime of sale,terms of payment on soybeanoilare net cashsightdraft,BillLadi
46 ngattached.Allsettlementadjustmentsaredu
ngattached.Allsettlementadjustmentsaredueimmediately upon agreement on basissettlementbetweenfinalBuyer and originalSeller.Section 2. DISCRETIONSellerreservestherightrestricttheterms of payment,if,Seller’sjudgment,thefinancialresponsibilityof theBuyerdoeswarrantshipment on termsoriginallystatedcontract.Section 3. DEFAULTPAYMENTFailureacceptdelivery of or pay for a specifiedquantity of soybeanoilcoveredcontractshallSeller’soptionreleaseSellerfrommakingfurtherdeliveries.defaultpaymentwhendue,thewhole sum owed by Buyershallbecome due once.Section 4. MULTIPLEBILLINGAND/ORCOMPOSITESAMPLINGMultiplebillingandinvoicing of tank carstanktrucks,compositesampling, or both,shall be determinedby mutualagreementbetweenSellerandConsigneeand,whendetermined,shallapplysettlementswithallinterveningbuyers,any. 13 quantitydeliveredexcess of more or less,theexcessunderage above up andincluding5% shallsettledbasis the marketclosingprice on the firstbusinessdayfollowing the discharge.Should thequantityshippeddifferexcess of 5% more or lessfrom the contractquantity,SellershalltendersuchbargesBuyerwithintwo(2)businessdaysBillLadingdate.Excess or underfillof greaterthanwillsettledbetweenBuyerandSellerwithinthree(3)businessdaysBillLading date.FreeTimeBuyershallallowed 36 hoursfreetimeafterarrivalbargesdestination.Thereafter,demurrageshall be chargedBuyerperrunning hour, theprevailingrate,Saturdays,Sundays,andlegalholidaysincluded. Freetimeshallcountedfrom the time the bargeline, or representative,givesnoticeBuyer, or Buyer’srepresentative,that the bargereadyfordelivery.Section 3. CONTRACTDELIVERYContractsshall be completed by delivering the approximatenumber of suchcontainersBuyershallspecifytime of shipment.UnlessBuyerarrangeswithSelleradvancelastshipment on contractpurchaseadditionalquantityfillout a carload,theoveragenecessitated by carcapacitywill be invoicedthemarketprice on datelastcarshipped.TheellershallnotcompelledshipBuyer’stanktrucksmorethanthecontractquantity.shallbe the Seller’soptionwhethershipexcessoiloverthecontractquantityfillcapacity a Buyer’sfinaltanktruck reject the tanktruck.If excessoils
47 hipped,shallinvoicedthemarket price on t
hipped,shallinvoicedthemarket price on thedateshipment.Buyershall be liable for excessfreight on capacityweighttanktruck the eventBuyerinstructsSellerloadfinal tank trucklight.Section 4. LIGHTWEIGHTSHIPMENTS tank cars,tanktrucks or carloadscontainersareloadedcapacityrequired by railroadtruckingregulations, the Sellershall be liableforexcessfreight on capacityweight,unlessSellershallhavefirstobtainedBuyer’spermissionshiptankcarstanktruckslightweight.Section 5. TOLERANCEWhentanktrucksareusedforall or any portion of contractquantityshipped by tankcars, a tolerance1% of contractedweights,based185,000poundtankunitsexactly,shallconstitutegooddelivery.However,overageunderageexacttotaltanktruckweightsshipped,determined by officialweights,shall be settledthedifferencebetween the contractprice and themarketprice on datelastshipment.RUL106—CHANGESANDTAXESSection 1. CHANGECONTAINERTYPE the eventthatdeliverytaken a differentcontainer than specifiedcontract,theSeller’scontainerdifferentialsprevailing on datechange of specificationsshallapplydetermining the invoiceprice a specificdeliveryagainstcontract. 12 * The gallon tank with a capacityapproximatelyshallhave a toleranceof allowed,making150,250thelowerlimit and pounds the upperlimit.The gallon tank with a capacityapproximatelyshallhave a toleranceof allowed,making182,291thelowerlimit and pounds the upperlimit.The gallon tank with a capacityapproximatelyshallhave a toleranceof allowed,making201,975thelowerlimit and pounds the upperlimit.GallonTankCarShipmentsexceeding 154,750 pounds and155,000 pounds willconstitutedelivery,butexcessof entireamountoverpoundsshallbilled the market timeshipment.Deliverieslessthan150,000 pounds will not constitutegooddeliveryunlessBuyerhasagreedTheBuyermayBuyer’soptionbill the Seller for the amountlessthan150,250poundsthedifferencebetweencontractpriceandthemarketpricetimeshipment,determined by officialweights. the uyerfurnishes a tank of insufficientcapacity, the Sellermayeitherrejectthetankcarbeinginadequateforloading, or mayacceptandloadthetankcar, and settleforthedifferenceweightsbetweenandtheactualloadedweightthedifferen
48 cebetweenthecontractprice and the market
cebetweenthecontractprice and the market price time of shipment.GallonTankCarShipmentsexceeding 185,000 pounds and188,289poundswillconstitutegooddelivery,butexcessof entireamountoverpoundsshallbilled the marketpricetimeshipment.Deliverieslessthan180,000 pounds will not constitutegooddeliveryunlessBuyerhasagreedTheBuyermayBuyer’soptionbill the Seller for the amountlessthan180,000poundsthedifferencebetweencontractpriceandthemarketpricetimeshipment,determined by officialweights.GallonTankCarShipmentsexceeding 205,000 pounds and208,025poundswillconstitutegooddelivery,butexcessof entireamountoverpoundsshallbilled the marketpricetimeshipment.Delverieslessthan201,975 pounds will not constitutegooddeliveryunlesstheBuyer has agreedThe BuyermayBuyer’soptionbilltheSellerfortheamountlessthan201,975 pounds thedifferencebetweencontractpriceandthemarketpricetime of shipment,determined by officialweights.Barges the absence of a clearlystipulatedapplicabletolerancethestatementthequantitytraded,shallbe understoodthatmore or lessthan the quantityshallapplycontractprice. A totaltolerance5% more or lessthanthequantityshallpermissiblethefulfillmentthecontract.Butthe 11 Section 2. ACIDULATEDREFININGBYPRODUCTLIPIDAcidulatedRefiningByproductLipidtheproductthecompleteacidulationRefiningByproductLipid,definedRule 104, Section 1, thoroughlysettled,andcontractpricebased on totalfattyacidcontent95%. the totalfattyacidcontentfallsbelow85%,theproductnotmerchantableAcidulatedRefiningByproductLipid, and mayrejected.claim on accountabsenceglycerinwill be consideredunlesscontractspecifiesglycerincontent.AcidulatedSoybeanRefiningByproductLipidshallhave a minimumiodinevalue122.Section 3. METHODSSAMPLINGANDANALYSISREFININGBYPRODUCTLIPIDANDACIDULATEDREFININGBYPRODUCTLIPIDThe methods of sampling and analysisRefiningByproductLipid and AcidulatedRefiningByproductLipidarespecifiedAppendixSection 4. METHODSSETTLEMENTREFININGBYPRODUCTLIPIDANDACIDULATEDREFININGBYPRODUCTLIPID.The Seller’sanalysisshallgiventheBuyerwithinfive(5)calendardays and theBuyer’sanalysisgiventheSellerwithinten(10)calendardays of thereceipt of the sample. the differ
49 encebetween the Buyer’sand Seller&#
encebetween the Buyer’sand Seller’sanalysesless than onepercenttotalfattyacidcontent,thetwoshall be averagedforusesettlement. the differencemorethanonepercent,theSellershallforwardthethirdsample the OfficialChemist. The mean of theOfficialChemist’sanalysisandthat of theBuyerandSellernearesttheretoshall be usedforfinalsettlement.Secton 5. TANKBOTTOMSTank Bottomswillsoldsampleonly.RULE 105—QUANTITYSection 1. UNITWEIGHTSoybeanoilshallsold a net weightbasispounds.Theunitweighttheavoirdupois(16ounces).Section 2. UNITSALEThe unit of salemay, by mutualagreementbetweenBuyerandSellertimeof sale, be thetankcar,tanktruck,drum or barrel.salemadecontainers, the approximateweightthecontainersnetshallspecified.The followingcontainernetweightspoundswill be consideredstandardunlessBuyer and Sellermutuallyagree on someotherfiguretime of sale.20,000-gallontankcar………...……….…………..152,500lbs.approximate * 25,500-gallontankcar……….………….…………185,000lbs.approximate ** 28,000-gallontankcar……………………………..205,000lbs.approximate *** Tank TruckSizevaries…………………………..StateapproximateweightSteelDrum…………………………………………420lbs.Approximate 10 FullyRefinedSoybeanOilFullyRefinedSoybeanOil sold forexportshall be puresoybeanoil.shallproducedfromfairaveragequalitycrude soybean oilfromwhichessentiallyall of thefreefattyacidsandoilsubstanceshavebeenremovedrefiningtreatments.shallmeet the followingspecifications:AnalyticalRequirements:i.Flavorshallbland.ii.Color (Lovibond)Maximum 20Y/2.0R using AOCSMethodiii.% by wt.)Maximum 0.05 using AOCSMethod-40 iv.Clearandbrilliantappearance 70-85° F ColdTestMinimum 5-1/2 hrs. usingAOCSMethod-53 vi.Shallcontainnotmorethan 0.10% moistureandvolatilematter using AOCSMethodvii.The unsaponifiablecontentshallnotexceed 1.5% whendeterminedaccordingAOCS Method 6a-40.viii.The peroxidevalueMeq/Kgshallnotexceed 2.0 whendetermined
50 by AOCSMethod 8b-90.ix.StabilityAOM,Min
by AOCSMethod 8b-90.ix.StabilityAOM,Minimum 8 hrs.Meq/KgwhenusingAOCS Method 12b-92. Preservatives(GRAS)arepermitted.Chemicalanalysisshallmadeaccordancewiththe methods from“OfficialMethodsandRecommendedPractices the AOCS,Chapter:CommercialFats and Oils,SectionC.”The chemicalanalysisdeterminequalityshallinclude the qualitativetestforfishoilandmarineanimaloilsprescribed by AOAC Method No.974.20, and shall be negative.PhysicalRequirements:i.The oilshallclearandbrilliantappearance 70°-85° ii.The oilshall be freefromsettlings or foreignmatteranykind.iii.The oilshallhave a clean,freshflavor and shall be freefrom rancid, beany,painty,sour, or otherobjectionableflavorsodors,specified in U.S.Department of AgricultureSpecification A-A- 20091D.NOTE:The NationalOilseedProcessorsAssociationhasdevelopedstandardsforinspection,sampling and measuringproceduresforbulkshipment and transferssoybeanoil(seeAppendixA).Thesestandardsmaybe incorporatedSalesContracts.RULE 104—REFININGBYPRODUCTLIPID,ACIDULATEDREFININGBYPRODUCTLIPIDANDTANKBOTTOMSSection 1. REFININGBYPRODUCTLIPIDRefiningByproductLipid the productthatresultsfrom the alkalirefining of soybeanoil.Thecontractpricebased on totalfattyacid.RefiningByproductLipidcontaininglessthan30%totalfattyacidwillnot be consideredmerchantable,andmay be rejected.RefiningByproductLipidmust be adulteratedwithany other oilwithRefiningByproductLipidmadetherefromwithoutconsentthepurchaser.preservativesareaddedtheRefiningByproductLipid,thenature and amount of samemustdeclaredthe contract. 9 PhysicalRequirements:CrudeDegummed Soybean Oilsoldforexportshall be pure soybeanoil.shallbe producedfromfairaverage quality crudesoybeanoilfromwhichthemajor portion the gumsnaturallypresenthasbeenremovedhydrationandmechanicalphysicalseparation.shall be equalin qualitysoybeanoilproducedfordomesticconsumption.OnceRefinedSoybeanOilAnalyticalRequirements:Clearandbrilliantappearance70°-85° F Freefromsettlings85° F Shallcontainnotmore than 0.10% moistureandvolatilematter using AOCSOfficialMethod 2c-25.Shipment up allowedwithfollowingdiscount be appliedover0.10%:0.11% 0.3% of contractprice0.12% 0.6%
51 of contractprice0.13% 0.9% of contractp
of contractprice0.13% 0.9% of contractprice0.14% 1.2% of contractprice0.15% contractpriceFreeFattyAcidsshallnotexcess0.10%.Shipment up 0.15%allowedwithfollowingdiscountappliedover0.10%:0.11% 0.2% of contractprice0.12% 0.4% of contractprice0.13% 0.6% of contractprice0.14% 0.9% of contractprice0.15% contractpriceColor, whenbleachedaccordingAOCSMethodshall not be darkerthan 3.5 red and shallhave a predominantly greencolor.Flashpointshall be below 250° determined by AOCS Method The unsaponifiablecontentshallnotexceed1.5%whendeterminedaccordingAOCSMethod 6a- The chemicalanalysisdeterminequalityshallinclude the qualitativetestforfishoilandmarineanimaloilsprescribed by AOAC Method No.974.20, and shall be negative.PhysicalRequirements:OnceRefinedSoybeanOil sold forexportshall be puresoybeanoil.shallproducedfromfairaveragequalitycrude soybean oilfromwhichessentiallyall of thefreefattyacidsandoilsubstanceshavebeenremoved by refiningtreatments. 8 RULE 103—DEFINITIONSGRADESANDQUALITYSOYBEANOILUSEDFORSPECIFICPURPOSESSection 1. INDIVIDUALSPECIFICATIONSSalecrudeandspecialgradessoybeanoil on thebasisprocessor’sindividualspecificationsaresubjectallTradingRules of theAssociationexceptqualitysettlementandsamplingprocedurespecified by Rule 102. Thequalityspecifications and samplingprocedureare be determined by agreementbetweenBuyerandSeller.Section 2. RESPONSIBILITYFORADAPTABILITYSellershall not responsibleforadaptabilitygoods for any specificpurpose,unlessspecificallyprovided the contract.Section 3. DEFINITIONSGRADEANDQUALITYEXPORTOILSALLQUALITYDETERMINATIONSSHALLMADEFROM A COMPOSITESAMPLETHESHIPMENT.CrudeDegummedSoybeanOilAOCSAnalyticalRequirementsMaximumMinimumMethodUnsaponifiableMatter 1.5% 6a-40 FreeFattyAcids,Oleic0.75%i 5a-40 MoistureandVolatileMatter0.30%M&V 2c-25 and InsolubleImpurities 3a-46 Flashpoint250° F 9c-95 Phosphorus0.02% 12-55 The chemicallysisdeterminequalityshallinclude the qualitativetestforfishoilandmarineanimaloilsprescribed by AssociationOfficialAnalyticalChemists(AOAC)MethodNo. 974.20 and shall be negative.Deviations:Onlythefollowingareallowablewith the discountsapplyshown:i.Freefatty 0.7
52 6% — 0.85% — 0.2% contractpr
6% — 0.85% — 0.2% contractpriceacids0.86% — 0.95% — 0.4% contractprice0.96% — 1.05% — 0.6% contractprice1.06% — 1.15% — 0.9% of contractprice1.16% — 1.25% — 1.2% of contractpriceii.PhosphorusShipment up 0.025%permittedwith the followingdiscountsforexcessover0.020%:0.2%contractvalue0.4% of contractvalue0.6%contractvalue0.9%contractvalue1.2%contractvalue 7 f.ADJUSTMENTFORSETTLINGS:Settlingssludgeshallconsideredthesolidresiduewhichcannot be drained,pumped, or squeegeedfrom the car.Settlingsclaimsmay be filedonlytankcarsthatareunloadedwithinfive(5)calendardaysafterarrival of tankcarBuyer’sdestination.settlingsare found whenthetank being unloaded, the Sellershall be notified by telephone,electronicmailwithacknowledgementreceiptrequested, or telefax,andSellershallhavetherightinspectthecar,SellerinformsConsigneewithintwentyfour (24) hoursreceivingsuchnotification.Forgallontankcars a tolerance 478 poundssettlingswill be allowed. a containsmorethan 478pounds,allowancewill be made for the totalamount of sludge up 3,187pounds50%the contractprice.Settlingsexcess3,187poundswillallowedthecontractprice.For28,000- gallontankcars a tolerance of 525 poundssettlingswillallowed. a containsmore than 525 pounds, allowancewillmadefor the totalamount of sludge up 3,500 pounds of the contractprice.Segspresentexcess3,500poundswill be allowedthecontractprice.Settlingsclaimsshall be filedsoonpossible.ConsigneedoesdefineConsignee’ssettlingslessclaimswithsupportingdocuments the Sellerwithinsixty(60)calendardaysafter shipment of eachunit, the settlementclaimfor settlingsshallnullandvoid.The claim for theamount of settlingsshallnotexceedthedifferencebetweentheinvoicedweight,official, and theweight of oilunloadeddestination.ConsigneemustsubstantiateConsignee’sclaim for settlingswithofficialweightcertificate showing thegrossweight of thecar, and either(a)thetareweight of the unloadedcar, both before and afterremoval of settlingsfrom the car; or, (b)thenetweightof thesettlingswhichhavebeenremovedfrom the intocontainers.Losssettlements under pa
53 ragraphs b and c on carscontainingsettli
ragraphs b and c on carscontainingsettlingsshall be based on theofficialnetweight and not on theofficialnetweightless a deductionforsettlings.ADJUSTMENTFORMOISTUREANDVOLATILEMATTER: A deduction formoistureandvolatilemattercrudeoilsexcess of 0.30%willallowedthecontractprice.REJECTIONPROCEDURE:Consignee and Sellercannotagree on a properallowance on oilthatrejectable under Rule 102, Section 1, Paragraph b, the rejectionandreplacementprocedureshallfollows:Rejectioncommunicated by telephone,electronicmailwithacknowledgmentreceiptrequested,telefaxwithin 72 hoursafterdelivery of theoilConsignee’splant.Sellershalltenderreplacementshipmentwithin 24 hoursafterreceivingConsignee’scommunication.Actualshipmentmustfollowwithin 48 hours of receiptConsignee’s communication, soonConsignee’stankcarsarriveforloadingSeller’splant.i.OFFICIALREFEREECHEMISTSFOROIL:OnlythosechemistswhicharecertifiedNOPA by AOCSshallconsideredOfficialRefereeChemistsforOil and listedAppendix E theseRules. 6 ADJUSTMENTSFORLOSS:SellershallpayConsignee for Losstherate of the contractpricefor each1.0%Loss above 5.0%, calculated on theofficial net weightcrude.Wherethecrudeoildeliveredanalyzeswith a Lossunder5.0%,theConsigneewillcredittheSellertherate 1.0% thecontractpriceforeach1.0% under up a maximumcredit of 4.5% of thecontractprice,calculatedon the official net weight the crude.Lossfiguredfractionallythroughout. the Sellerdoesnotintendhaveanalyticaldeterminationmade on Seller’sportiontheOfficialSample,thisfactmust be shown on the invoice, and suchevent, the Consignee’sanalyticaldeterminationshallgovernsettlement.REFINEDBLEACHED(R.B.)COLORADJUSTMENTFORPRIMECRUDESOYBEANOIL(LIGHTERCOLORTHANSTANDARDAPPENDIXB):TheR.B. Color shall be determined by AOCSOfficialMethods and 8b-52,andthefollowingdiscountscheduleshallapply:AOCSAOCSAOCSR.B.Color % DiscountR.B.Color % DiscountR.B.Color % Discount 3.5 red Prime 4.4 red 0.45 5.3 red 0.90 3.6 0.05 4.5 0.50 5.4 0.95 3.7 0.10 4.6 0.55 5.5 1.00 3.8 0.15 4.7 0.60 5.6 1.10 3.9 0.20 4.8 0.65 5.7 1.20 4.0 0.25 4.9 0.70
54 5.8 1.30 5.0 0.75 5.9 1.
5.8 1.30 5.0 0.75 5.9 1.40 4.1 0.30 6.0 1.50 4.2 0.35 5.1 0.80 4.3 0.40 5.2 0.85 NOTE:Discountsbased on F.O.B. millprice(CrudeBasis)REFINEDBLEACHED(R.B.)COLORADJUSTMENTFORNO. 2 GRADECRUDESOYBEANOIL(EQUALDARKERTHANSTANDARD A BUTLIGHTERTHANSTANDARDB):TheR.B.Color shalldeterminedAOCSOfficialMethods-63 and -52, and the followingdiscountscheduleshallapply: R.B. Color % Discount R.B. Color red % Discount 1.30 R.B. Color red % Discount 2.45 3.1 1.40 4.1 2.55 3.2 1.55 4.2 2.65 3.3 1.70 4.3 2.75 3.4 1.85 4.4 2.80 3.5 2.00 4.5 2.90 3.6 2.10 4.6 3.00 3.7 2.20 4.7 3.10 2.8 or less 1.00 3.8 2.30 4.8 3.20 2.9 1.15 3.9 2.35 4.9 3.25 5.0 3.30 NOTE:Discountsbased on F.O.B. millprice(CrudeBasis) 5 The followinglabelhasbeenapproved:OFFICIALLOADINGSAMPLE CrudeSoybeanOil Type (SolventExtracted(statesolventused),ExpellerPressed, SolventExtractedDegummed(statesolventused),etc.) Seller (Firm’sname) PlantLocation Loaded20_Shipped__20 (TankNo.tanktruckNo.) (Name of buyerfirm) Plantlocated BASISFORHANDLINGADJUSTMENTSFORLOSSANDCOLORCRUDESOYBEANOIL:The basisforhandlingLoss and Coloradjustmentcrudesoybeanoilshall be determined the followingmanner by mutualagreementbetweenSellerandConsignee and, whendetermined,shallapplysettlementswithallinterveningbuyers,any.i.The Consigneeshallinform the Seller of Consignee’sanalysiswithinten(10)businessdaysafterreceipt of officialsample by the Consignee.TheSellershallhavethree(3)businessdaysafterreceiptof Consignee’sanalysisrejectthisanalysis. the differencebetweentheSeller’sand Consignee’sLossanalysesnotoverthreetenths one percent, the settlementwill be made on theaverage of Seller’sand Consignee’sanalysesbothwithrespectLoss and alsorefinedandbleached(R.B.)Color. the differencebetweenConsignee’sandSeller’sLossanalysesgreaterthanthreetenthspercent,thenthethirdportiontheOfficialSamplemay be sentOfficialRefereeChemist not previouslyconcerned,andset
55 tlementshall be based on theOfficialRefe
tlementshall be based on theOfficialRefereeChemist’sanalysis.Inthe eventthattheanalysisrefereedforLoss and Color, and decidedagainsttheSeller on count and against the Consignee on theother,thereferee’sresultsare the mean the Seller’s and Consignee’sanalyses,thenthereferee’sfeeshall be sharedequally;otherwise,thefeeforthisworkshall be charged the accountthepartyagainstwhom the decisionresults.ii. the eventthat the ConsigneedoesnotfurnishtheSellerwithanalyticaldeterminationLossthe Consignee’sportion of theOfficialSamplewithinthirty(30)calendardaysafter the shipmentunit,determined by the datetheBillLading for thatunit,thensettlement for thatunitwill be made on thebasis the analysistheSeller’sportiontheOfficialSampleonly. the eventthattheSellerdoesnotreportSeller’sanalyticaldetermination of theOfficialSamplewithinthirty(30)calendardaysaftershipmentunit,determined by the datetheBillLading forthatunit,thensettlementforthatunitwill be on the basis of the Consignee’sportionthe OfficialSampleonly. 4 i.Expellerpressedii.Expellerpresseddegummed*iii.Solventextracted(statesolventused)iv.Solventextracteddegummed(statesolventused)*Mixtures of any of the above types(inwhichcaseSellershallspecifythatanalysisshall be madecorrespondingthespecifictypes)(statesolventused)ExplanatoryDefinition.Degummedsoybeanoilshall be the productresultingfromremoval of phosphatidesfromcrudesoybeanoil,andshallcontain not more than 0.02%phosphorusdeterminedby AmericanOilChemists’Society(AOCS)OfficialMethod-55. Grade & Quality.CrudesoybeanoilsoldunderthisRuleshall any theabovedesignatedtypesandshallconformthefollowingspecifications:i.Notmorethan0.5%moisture and volatilematterii.A refinedandbleachedcolor not darkerthan6.0rediii.A neutraloillossnotexceeding 7.5% iv.Notmorethan1.5%unsaponifiablematter(exclusive of moistureandinsolubleimpurities)A flashpointlowerthan 250° F Crudesoybeanoilnotmeeting the above specificationsrejectable,andshallsold on sampleonly.Secton 2. METHODSANALYSISThe grade and qualitycrudesoybeanoilshalldetermined using methodsapprovedby the AmericanOilChemists’Society,specifie
56 dhereinand inappendices A and Themethods
dhereinand inappendices A and Themethodsusedshall be thoseeffect of thedatethecontract.SectionSETTLEMENTSFORCRUDESOYBEANOILOFFICIALSAMPLE: The OfficialSampleshall be three(3)onequartsamples.Theseportionsshouldpackagedclean,dryand new containers.Eithertinnedmetalcontainershighdensitypolyethylenebottlesfittedwithmetalcapshavingoilresistantcaplinersareacceptable.Polyethylenecontainersmust be enclosedforshippingcustommade,closefittingcardboardcontainers.Thesamplemust be drawnthetime loading by a qualifiedsampleraccordancewiththeAOCSOfficialMethods for samplingcrudeoils 1-47), and shallindicatedinvoice.theSellerneglectsprovide such a samplethetimeloading, or fails show on invoicethatOfficialSamplehasbeentaken, a sampledrawndestinationshall be officialwhentakenaccordancewith the AOCSOfficialMethodsnotedabove.SellershallforwardConsigneeonetheonequartportionsexpenseConsigneewithinone(1)businessday(defined for the purpose of theseRulesany day that the ChicagoBoard of Tradescheduled open forthetrading of agriculture) of completion of loading,and label of samplemustdesignatetypeoilandplantdestination.ThesecondquarttheSellersample, and thethirdquart be retained by Seller the refereesample. 3 Thissalemade under the TradingRulestheNationalOilseedProcessorsAssociationgoverningpurchase and salesoybeanoileffect on datepurchase,whichRulesareherebymade a partthiscontract.The BuyerandSellerherebyacknowledgefamiliaritywiththetext of the TradingRulestheNationalOilseedProcessorsAssociation,andBuyerandSelleragreebound by theterms and conditionssaidRules.Some of the materialcovered by thiscontract may be used on a contractwith the FederalGovernmentwhichtheprovisions of Section of ExecutiveOrder11246applyand,consequently,Sectionincorporatedherein by specificreference.Regulations under theExecutiveOrdermayrequireSellerdevelopAffirmativeActionComplianceProgramandfileEmployeeInformationReport10.(SeeCFR 60.) ThisdocumentandsaidTradingRulescontaintheentireagreementbetween the partieshereto. Thiscontractshall be construedunderthelaws of theState WITNESSWHEREOF, the respectivepartieshavesignedthesepresents –––––
57 50;––––––&
50;––––––––––––––––––––––––––– . Buyer_ By Title Seller By Title (Thiscontractmustsignedduplicate by officer of each company, showing officialtitle, by someonedulyauthorizedsigncontracts for bothBuyer and Seller.)Original be signedandreturnedSeller.DuplicateforBuyer.Section 3. GOVERNMENTALREGULATIONSEachsalesubjectallFederal and statelawswellallordinances,rulesandregulations,ordersdecreespassed or created by any lawfulauthorityhavingjurisdictionover the parties and subjectmatterthe sale.RULE 102—GRADE,QUALITY,SETTLEMENTSCRUDESOYBEANOILANDREFEREECHEMISTSSectionSTANDARDQUALITYThe StandardQualityshall be thedesignatedtype pure soybeanoilfairaveragequalitybased on the season’sproduction,whichmustconformstandardspecificationstheAssociation,whichareherewithmade a partthe Trading Rulesandwhicharesubjectmodificationfromtime timeconditionsmaywarrant, upon recommendation of theTechnical and ResearchSubcommitteeNOPA’sTechnicalandResearch,Environmental,andSafety,Health and LossPrevention(TESH)Committee.TypesCrudeSoybeanOil.Ediblecrudesoybeanoilshall be of any of thefollowingdesignatedtypes: 2 TradingRulesforthePurchaseandSaleSoybeanOilRULESALES CONTRACTSection 1. AGREEMENTBuyeragrees buy and Selleragreessellsoybeanoilthequantitiesand on theterms,conditions, and provisions the SALESCONTRACTforthSection 2 hereof.Section 2. SALESCONTRACT ContractNo. Contractmade(City),(State) thisday of , between(Seller), (City),(State),hereinaftercalledtheSeller, and (Buyer)(City),(State),hereinaftercalledthe Buyer. The Sellerherebysells and agreesdeliver, and theBuyer hereby purchasesandagreesreceivetheamounts and on the termsandconditionshereinafterforth,thefollowingquantity of PURESOYBEANOIL, produced fromdomesticgrown,mature,yellowsoybeans,unlessotherwisespecified,guaranteed,the datesuchshipment, be, suchdate,notadulteratedmisbrandedwithin the meaning of theFederal Food, DrugandCosmeticAct, and articlewhichmay not, undertheprovisionsSectionor 505 of the Act, be intr
58 oducedintointerstatecommerce:PRICECrudeB
oducedintointerstatecommerce:PRICECrudeBasisTank Cars………… ¢ per lb. PoundsTank Trucks…………...¢ per lb.Tank Carsabout………..lbs.eachDrums………………… ¢ per lb.Tank Trucksabout……..lbs.eachBarrels…………………¢ per lb.Drumsabout400lbs…...lbs.eachCans……………………¢perlb.F.O.B........................................................................................................................ Deliveryfromwarehouse(L.C.L.)DeliverylotsfrommillTimeShipment: ……Jan. ……Apr. ……July ……Oct. ……Feb. ……May ……Aug. ……Nov. ……Mar. ……June ……Sept. ……Dec. Agent or Broker………………………………………………………………………Terms of payment:Netcash, no discount.Carloads:Sightdraft,Bill Lading attached.L.C.L.Shipments:Ten(10)calendardaysnet.Oilshipped on opentermssubjectsightdraftpaidten(10)calendardays. 1 TABLECONTENTSTableContents 1TradingRules for the Purchase and SaleSoybeanOil 2AppendicesTradingRulesfor the PurchaseandSale of SoybeanOilInspection,Sampling and MeasuringProceduresfor BulkShipments and TransfersSoybeanOil ........................................................................ 23 MethodsAnalysis 33 SoybeanOil,Crude) OnlySoybeanOil,Refined) methodSoybeanOil,Refined and Bleached) numbersSoybeanOilforTechnicalUses) are listedAppendixRefiningByproductLipid,Acidulated ) RefiningByproductLipidandTankBottoms ) OfficialWeighmasterApplication ............................................................................................. 34 SemiAnnualScale and FlowMeterReport ............................................................................... 36 OfficialRefereeChemists forSoybeanOil ................................................................................ 37 SoybeanOilExportTradingRules ...........
59 ........................................
................................................................................. 39 UniformSoybeanOilExportContract ....................................................................................... 51 ForeignTradeDefinitions(forinformationpurposes only) 52 DefinitionsQuotations ............................................................................................................................ 53 23 APPENDICES TO TRADINGRULESFOR THE PURCHASESALE OF SOYBEAN OILAPPENDIXINSPECTION,SAMPLINGANDMEASURINGPROCEDURESFORBULKSHIPMENTSANDTRANSFERSSOYBEANOILIssuedSeptember 1965 RevisedSeptember 1966 Adopted AugustNATIONALOILSEEDPROCESSORSASSOCIATIONSTANDARDScope:Theseproceduresareintendedcoverdomesticshipmentssoybeanoilbargeshiploadquantities and multipledrumshipments.Proceduresforhandlingtankcar or tank truckshipmentsarecoveredelsewhereNOPA’s Trading Rules.InspectionEachcompartment tank whichreceivesoybean oil must be inspecteddetermineitssuitabilityforreceivingedibleproduct and mustmeet the followingrequirements:Tank must be completelyfree of any priorcontents,loosescale,rustoxidizedfilms;corners,ledges,sumps and thearea around andunderheatingcoilsshouldespeciallynoted.A tank or compartment for which the lastprecedingcontentswassoybeanoilshallhavebeencleanedwithhotwater a temperature above themeltingpoint the priorcontents using a proper detergentdissolve or emulsifysuchresidueswhicharewaterinsolubleandshallhavebeenrinsedadequatelyremovealltraces of the cleaning compounds. The tank must be completelydry.arrangementbetweenBuyer and Seller, a suitablecoatingmay be present on thetanksurfacesinhibitrusting. the tankusedforquantitydeterminationmust be inspectedforcompliancewiththerequirementsSection of theseprocedures.Equipmentwhichhas any time handled materialscontainingtoxicmetaloorganiccompounds(forexample,leadedgasolinepesticides)or,withinthepasttwo(2)yearshandledothersubstancesgenerallyrecognizedtoxic,will be usedforstorage or transfer of soybeanoil.affidavit by theowneroperatortheequipmentmust be suppliedensurecompliancewith the above.The above provisionscanwaivedonly a where a certificate of safetysu
60 pplied by thebarge/shipowner or operator
pplied by thebarge/shipowner or operatorcertifyingfreedomfrom any trace a previoustoxiccargo,preparedby impartialexaminerqualifiedmakesuch a determination.Allpipelines,pumps and otherequipment be used any transfermust be inspected and foundbe clean. TRADINGRULESfor the Purchase and SaleSOYBEAN OILAdoptedMay1930Amended:Oct.,1931;Oct.,1932;Oct.,1933;Oct.,1934;Aug.,1936;Sept.,1936;Oct.,1936;Oct.,1937;Aug.,1938;Aug.,1939;June1940;Oct.,1940;Oct.,1941;Feb.,1942;July1943;Sept.,1943;July1944;Sept.,1945; Oct.,1947;Sept.,1948;Sept.,1949;Sept.,1950;Sept.,1951;Sept.,1952;Sept.,1953;Sept.,1954;Sept.,1955;Sept.,1956;Sept.,1957;Sept.,1958;Sept.,Sept.,1960;Sept.,1961;Sept.,1963;Sept.,1964;Sept.,1965;Sept.,1966;Sept.,Aug.,1969;Aug.,1970;Aug.,1971;Aug.,1972;Aug.,1976;Aug.,1977;April,1978;Aug.,1978;Aug.,1979;Aug.,1980;Aug.,1981;Aug.,1982;Aug.,1983;June,1984;Nov.,1984;Jul.,1985;June,1987;June,1988;June,1989;Nov. , 1989;June,1991;June,1992;June,1998;Aug.,1999;Feb.,2006;Apr.,2006;Oct, APPLICATIONRULES TheSalesContractandRulesareserve a guideonlyfortransactions.understoodthatthepartiessuchtransactionsarefreeadopt,modifydisregardtheSalesContracttheRules. 22 SOYBEANLECITHINSPECIFICATIONSAnalysis Grade:LecithinLecithinLecithin Analysis Grade:LecithinLecithinLecithin 1 KarlFischerTitration(AOCSJa2 UndilutedBasis3 anyappropriateconventionalviscosimeter,AOCSBubbleTimeMethodTq.assumingdensityunity.Fluidlecithinhaving a viscositylessthan7,500centipoisesmayconsidered a premiumgrade.4 UsingPrecisioncone73525,Penetrometer73510;sampleconditionedhours Fluid Fluid Fluid Double - Unbleached Bleached Bleached Acetone Insoluble, Min. (%) 62 62 62 Moisture, Max.(%) 1 1 1 1 Hexane Insoluble, Max. (%) 0.3 0.3 0.3 Acid Value, Max. 32 32 32 Color, Gardner, Max. 2 18 14 12 Viscosity, Centipose, @ 77° F, Max. 3 15,000 15,000 15,000 Plastic Plastic Plastic Double - Unbleached Bleached Bleached Acetone Insoluble, Min. (%) 65 65 65 Moisture, Max.(%) 1 1 1 1 Hexane Insoluble, Max. (%) 0.3 0.3 0.3 Acid Value
61 , Max. 30 30 30 Color, Gardn
, Max. 30 30 30 Color, Gardner, Max. 2 18 14 12 Penetration, Max. 4 (mm) 22 22 22 21 The foregoingruleshallnot apply casesshipmentsdelivered a carrierpriorthereceiptnotice of thedisablingevent.RULE 116—MISCELLANEOUSThe fullrights of Buyer,Seller, both, under the contractandtheseRulesshall no wayaffected by omissions,increasedprivileges, or provisionsinconsistentwithvariancewiththeprovisions of theseRules,indicated or expressedletterscreditagainstwhichpartial or fullpaymentmade.WhentheSeller,therequest the Buyer,performs any servicesconnectionwiththecontractbeyond those required by thetermsthereof,Sellershall be deemedacttheagent of theBuyerrespect the performance of suchservices, and Seller’sresponsibilitytheBuyershall be determinedby the usualobligationsagenttheprincipal.ContractsmadesubjecttheseRuleswill be deemedmade the StateNewYork.ThelawstheState of NewYork,withoutreferencetheconflictlawsprovisions,aregoverninterpretation and enforcement of suchcontracts, and suchlaws,bothcase and statutory,aredeemedincorporated and made a parttheseRulesforthfullylength.If,spitetheexclusivityremedy under thearbitrationclause, a partyseeksrecoursethecourtsenforceresistenforcement of sucharbitrationclause,suchrecoursewill be soughtsolelythestateFederalcourts of theStateNewYork.UnlessBuyer and Sellerexpresslyagreedifferentterms and conditionsthetime of thetrade,the“TradingRulesforthePurchase and Sale of SoybeanOil”forthaboveshallgovern.RULE 117—AMENDMENTSSection 1. PROCEDURETheseTradingRulesmay be amended by a majorityvotetheBoard of Directors any regularspecialmeeting, or by mailvote,electronicmailvotewithacknowledgement of receiptrequested,telefaxvote,whenauthorized by the Board of Directors,providingtheSoybeanOilTradingRulesCommitteeshallhavefirstmadesuchrecommendationforamendment, and a copy of suchproposedchangessubmittedeachmembertheAssociationthetime meetingcalled, or by mailvote,electronicmailvotewithacknowledgement of receiptrequested,telefaxvote,accordancewithSection 2 of ArticleVIII of the ConstitutionthisAssociation.Secton 2. EFFECTIVEDATESAllamendment
62 sshallbecomeeffectiveOctober 1, afterpub
sshallbecomeeffectiveOctober 1, afterpublication the TradingRules. 20 RULE 114—ARBITRATIONAllcontroversiesarisingout of contractsmade under theseTradingRules or the Breachthereof,unlessamicablyadjustedotherwise,shall be settled by finalandbindingarbitrationaccordancewith the rules,then obtaining,theAmericanArbitrationAssociation(AAA),*excepttheextentmodifiedherein, and judgment the awardrenderedmay be enteredthehighestcourttheforum,stateFederal, having jurisdiction.The arbitratorsshallappointedthefollowingmanner:eachpartythedisputeshallappointarbitratorfrom a list be prepared by AAAfrom the NationalPanelArbitrators.Thearbitratorappointedby partymustbe: (1) activelyengagedthebuying or selling of oilseedproductsandhavebeenengagedfor a minimum of five(5)years;or,(2)retiredafterleastfive(5)yearsactiveengagementthe buying or sellingoilseedproducts.ThepartyappointedarbitratorsshallselectfromAAA’slist a thirdarbitratorwhomeetstheaboverequirement. the partyappointedarbitratorsfailagree on a thirdarbitrator,AAAshallappoint a thirdarbitratorwhomeetstheaboverequirement.Arbitrationproceedingsmay be consolidatedthediscretion of the arbitratorarbitrationpanelwheresuchconsolidationwouldtendavoidunnecessarycostsdelaywouldassistachieving a fairresult.Forinformationregarding the services of theAmericanArbitrationAssociation and a listing of itsoffices,contactAAAat: 335 MadisonAvenue,Floor10,NewYork,N.Y.Tel.:Fax.:212-716-5905,www.adr.org.RULE 115—CONTINGENCIESIf,consequence of any actGod,fire, flood, wind,explosion,war,embargo(wheredisabledparty’snegligence),civil commotion, sabotage,law,government,because of labordifficulties,theSellershall be unableship or theBuyerunablereceive, any soybeanoilshippedunder a contractexistingbetweenthem, and thedisabledpartydeliversnoticetheotherthatfactwithintwo(2)calendardays and, further,furnishesproofthereofwithinfive (5) calendardaysreceipt of the other’srequest,providedsuchrequestshallmadewithin a weekafterreceipt of noticedisability,the partiesshallhaverights and dutiesfollows:The disabledpartymaydefershipmentsuntilthedisabilityceases,but not formorethanthirty(30)c
63 alendardaysnextafterthedisabilityoccurre
alendardaysnextafterthedisabilityoccurred. the endthedeferred period thepartiesthecontracthavearrivedagreement, and a requestforarbitration has beenfiled by eitherparty, and thedisabledpartyhasnotdeliverednoticethat the disability has ceased, the partynotdisabledmaycancelthecontract,andthedifferencebetweenthe contractpriceandthemarketprice the closebusinessthe day thedeferred period terminatesshall be paid by theBuyertheSeller the marketpricelower, and by theSeller theBuyerthemarket price higher,whether the SellerBuyerthedisabledparty. the partiesagreethatthecontingency has delayed or willdelaytheexecution of the contract,then the mattershall be arbitratedaccordancewithRule114theseTradingRules by eitherpartyfilingsubmission of thematterwith the Clerk of the Tribunal theAmericanArbitrationAssociationhaving jurisdiction.neitherpartyfiles a submissionforthearbitrationwithinsixty(60)calendardaysfrom the datethecontingencyoccurs,bothpartiesshall be barredfromrecoveringdamagesfrom the other. ��38 &#x/MCI; 0 ;&#x/MCI; 0 ; &#x/MCI; 1 ;&#x/MCI; 1 ; &#x/MCI; 2 ;&#x/MCI; 2 ;Owensboro Grain Edible Oils1145 Ewing Rd.Owensboro, KY 42301 USA+1 270OGEO LabSGS CanadaSuite B 3260 Production WayBurnaby, BC V5A 4W4 Canada+1 Cathy SunThionville Laboratories, Inc. 5440 Pepsi St.Harahan70123 USA+1 504Paul C. Thionville, Andre Thionville, Kristopher Williams, Boyce H. Butler ��37 &#x/MCI; 0 ;&#x/MCI; 0 ;APPENDIX EOFFICIAL REFEREE CHEMISTS20162017 AOCS CertifiedChemistsAdmiral Testing Services, Inc.12111 River Rd.Luling, 70070 USA+1 985Renato M.RamosATC Scientific312 N. Hemlock St.North Little Rock72114 USA+1 501Michael White, Brian EskridgeBarrowAgee Laboratories, Inc. 1555 Three PlaceMemphis38116 USA+1 901MichaelHawkinsEurofins Central Analytical Laboratory, Inc.2219 Lakeshore Dr.Suite 500New Orleans, LA 70122 USA+1 504John ReutherEurofins Scientific2200 Rittenhouse St.Suite 150Des Moines50321 USA+1 515Ardin BackousKent KarsjensHahn Laboratories, Inc.1111 Flora St.Columbia29201 USA+1 803FrankHahnINOLASABarranca Puntarenas, Contiguo a la Zona FrancaPuntarenas 66511000 Costa R