1.Procedure for sale
of cotton in exports - Annexure-I
2.Daily Offers/bids against Global
Tender - Annexure-II
3.Proforma of Authorisation
Letter - Annexure-III
4.Standard Export Contract Format
- Annexure-IV
5.Buying CCI Cotton - An Edge -
Annexure-V.
6.Agents profile - Agents located
in Bangladesh, Pakistan, Thailand and Turkey and who
wish to buy cotton or merchants / mills situated in
their respective country of origin, to submit agents
profile as per Annexure - VI
Procedure
for sale of cotton in exports - Annexure-I
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Annexure-I
PROCEDURE FOR SALE OF
COTTON IN EXPORT
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The indicative price
quotations are displayed on CCI's website
www.cotcorp.gov.in
daily in the afternoon and bids are accepted
upto 5.30 p.m. on all working days from
Monday to Friday.
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The buyers can submit
their bids directly.However, if submitted
through an authorized agent then the authorization
letter of the principal buyer is to be given
in advance or alongwith the offer/bid.Proforma
of authorization letter is given at Annexure-III.
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Agents interested in
buying cotton for international merchants/mills
situated in Bangladesh, Pakistan, Thailand
and Turkey may submit their firms profile
as per Annexure-VI, in addition to the authorization
letter of the principal buyer as per Annexure-II.
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Acceptance of the bids/counters
are E-mailed/faxed/intimated over phone
on same day.In case of counters, buyers
have to revert to these counters latest
by 13.00 hrs (IST) the next day. No counters
are however, given on Friday.
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On acceptance of buyer's
bids/counter rates by the principal buyer,
contract is raised listing all the standard
terms and conditions including variety/grade,
quantity, price in US Cents/lb as well as
shipment period.A copy of contract is sent
to the buyer for his signature and returning
ofone signed copy.
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All sales are on FOB
basis through JNPT/Nava Sheva Port in Navi
Mumbai and sales to Bangladeshi buyers through
road route are on C&F Benapole basis.
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After sales, buyers
or his agents are offered adequate number
of samples for approval of bales at spot
of the contracted quantity, which is a distinct
opportunity to satisfy about the quality
of cotton.However, on buyer’s request
actual lot samples could be dispatched through
courier on actual cost basis, to facilitate
approval of contracted quantity.
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Taking into account
the shipment period and opening of L/c./Shipping
Instructions from the buyer, the approved
bales are transported to CCI Kalamboli Godowns/Kolkatafor
arranging shipments.
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Shipments are effected
onlyafter establishment of irrevocable confirmed
L/c. with first class international bank.In
case of shipments beyond the permissible
shipment period, carrying charges are levied
at the rate mentioned in the contract.Bales
are shipped either against L/c or advance
remittances only.
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Kalamboli complex godowns
are approvedby the Customs for house stuffing
of bales and all bales are shipped through
containers only under the supervision of
Custom's Officials who put their seals after
stuffing of containers.
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After shipments, the
documents are prepared and presented to
the Bank for payments, while one set of
documents is sent to the buyer.
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Note: The Buyers can
access following information, through CCI
website www.cotcorp.gov.in :-
(i) Daily indicative price quotations
(ii) Procedure
for daily offers/bids against global tender
for staple cotton.
(iii) Proforma
for authorization letter to be submitted
by the buyer.
(iv) A copy of
contract with all standard terms and conditions.
(v) Buying CCI
Cotton - An Edge.
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Top
Daily
Offers/bids against Global Tender -
Annexure-II
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ANNEXURE II
DAILY OFFERS / BIDS AGAINST
GLOBAL TENDER FOR STAPLE COTTON
INTERESTED OVERSEAS BUYER OR THEIR AGENTS MAY SUBMIT
THE BIDS FOR EXPORT OF STAPLE COTTON ON THE FOLLOWING
TERMS AND CONDITIONS:
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1.
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DATE
& TIME |
OFFERS TO REACH BY 1730
HRS (IST) EVERY DAY FROM MONDAY TO FRIDAY
(WORKING DAYS ONLY) AND THE OFFERS TO REMAIN
VALID TILL 2000 HRS (IST) THE SAME DAY. ACCEPTANCE
/ COUNTERS SHALL BE E-MAILED OR FAXED OR SHALL
BE INTIMATED OVER TELEPHONE. BUYER SHALL HAVE
TO REVERT TO THE COUNTER PREFERABLY BY 1300
HRS (IST), THE NEXT DAY.HOWEVER, THERE SHALL
BE NO COUNTERS ON BIDS ON FRIDAYS.
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2.
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VARIETIES
OFFERED: |
VARIETIES / GRADES AS MENTIONED
IN THE DAILY QUOTES DISPLAYED ON CCI’S
WEBSITE– www.cotcorp.gov.in
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3.
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QUANTITY |
BIDS MAY BE SUBMITTED BOTH
IN METRIC TONS (M.T.) AS WELL AS EQUIVALENT
NUMBER OF BALES. FOR THE INFORMATION OF OUR
BUYERS, IT IS INFORMED THAT AN INDIAN COTTON
BALE IS OF APPROX. 170 KGS I.E. AROUND 6 BALES=
1 M.T.
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4.
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PRICE |
IN US CENTS PER LB / FOB
NET - NAVI MUMBAIOR IN US CENTS PER LB C&F
BENAPOLE.
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| 5.
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COMMISSION
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EXPORT SALES ARE MADENORMALLY
ON NET RATE BASIS. AS PER DAILY SALE QUOTES.HOWEVER,
IF ANY OFFER/BID IS RECEIVED WITH ADVICE TO
INCLUDE COMMISSION THEN THE RATE OF COMMISSION
SHALL BE ADDED IN THE SALE PRICE AND IT WILL
BE PAYABLE AFTER SATISFACTORY PERFORMANCE
OF THE CONTRACT.
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| 6.
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SHIPMENT
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PERMISSIBLE SHIPMENT PERIOD
OF 45 DAYS FROM THE DATE OF CONTRACT.
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| 7.
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WEIGHMENT/COUNTRY
DAMAGE INSPECTION |
BALE-TO-BALE 100 % WEIGHMENT
AT THE PORT OF SHIPMENT VIS-A-VIS COUNTRY
DAMAGE INSPECTION AS CERTIFIED BY AN INDEPENDENT
INTERNATIONALLY RECOGNISED CONTROLLER.
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| 8.
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PAYMENT
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BY IRREVOCABLE CONFIRMED
L/C OF FIRST CLASS BANK IN US $ PAYABLE IN
MUMBAI (INDIA). AS AN ALTERNATE THE BUYER
CAN AVAIL THE OPTION OF MAKING ADVANCE PAYMENT
AND AVAIL OF THE BENEFIT OF CASH DISCOUNT
AS PER TERMS OF THE CONTRACT.
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| 9.
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QUALITY
INSPECTION |
QUALITY INSPECTION AT SPOT
SHALL BE FINAL AND THE BUYER SHOULD FULLY
SATISFY ITSELF BEFORE COMPLETING SELECTION.
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10.
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ARBITRATION
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BY INDIAN COUNCIL OF ARBITRATION
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11.
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GENERAL
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ALL OTHER TERMS AS PER
STANDARD CONTRACT OF THE COTTON CORPORATION
OF INDIA LIMITED GIVEN AT OUR WEBSITE: www.cotcorp.com
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12.
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OFFERS
TO REACH |
GENERAL MANAGER (INTL. TRADE),
THE COTTON CORPORATION OF INDIA LIMITED,
KAPAS BHAVAN, PLOT NO 3 A,
SECTOR 10 P. B. NO. 60, CBD BELAPUR, NAVI
MUMBAI – 400 614 INDIA FAX NOS.022 -
2757 60 30 / 2757 9219 / 27576069
E-MAIL - gmit@cotcorp.com WEB SITE – www.cotcorp.gov.in
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13.
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OFFERS
TO INCLUDE |
BUYERS MAY SUBMIT THEIR
BIDS DIRECTLY, HOWEVER, IF THROUGH AN AUTHORIZED
AGENT THEN AUTHORISATION LETTER OF THE PRINCIPALS
AS PER THE PROFORMA (annexure-iii) GIVEN ON
THE WEBSITE www.cotcorp.gov.in
WHICH MAY PREFERABLY BE SENT IN ADVANCE OR
ALONG WITH THE OFFER/S. |
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14.
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PORT OF SHIPMENT |
ALL
EXPORT SALES ARE FOR ANY OVERSEAS AREEITHER
ON FOB BASIS THROUGH NAVI MUMBAI OR ON C&F
BENAPOLE.. |
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THE COTTON CORPORATION OF INDIA RESERVES ITS RIGHT
TO ACCEPT OR REJECT ANY OFFER PARTLY OR FULLY WITHOUT
ASSIGNING ANY REASON.
Top
Proforma
of Authorisation Letter - Annexure-III
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ANNXEURE
III
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PROFORMA FOR AUTHORISATION
LETTER
(ON FIRM / COMPANY’S LETTER HEAD)
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WE M/s.
______________________________having its
office at __________hereby authorize M/s.___________________________________
(with Full address / Tel. Nos./E-mail
/ Fax No.)to participate on our behalf
in the Daily Export Global Tenders floated
by The Cotton Corporation of India Ltd.,
“Kapas Bhavan”, CBD Belapur,
Navi Mumbai, INDIA for Crop Year 2007-08..
We further authorize M/s. ____________________________
to transact business / carry out selection
/ approval and other follow up acts as
required on our behalf in respect of Export
Contracts that may be entered into by
us with The Cotton Corporation of India
Ltd., Navi Mumbai.
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DATED:
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COMPANY SEAL
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Top
Standard
Export Contract Format - Annexure-IV
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| Annexure-IV
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EXPORT CONTRACT
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No.CCI/EXP/2007-08/
Date: - -.- -.2007
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THE COTTON CORPORATION
OF INDIA LIMITED, a company registered
under the Companies Act, having its registered
office at Kapas Bhavan, Plot No.3A, Sector
10, CBD Belapur, Navi Mumbai – 400
614, hereinafter referred to as the ‘SELLERS’
and M/s______________________________________________________________________________
hereinafter referred to as the ‘BUYERS’,
enter into this contract, for sale/purchase
of Indian Cotton, for Export, on the terms
and conditions mentioned hereunder,
1.QUALITY, QUANTITY, SALE RATE
& SHIPMENT PERIOD:
The Sellers have agreed to sell and the
buyers have agreed to buy from the Sellers
the following quantities of Indian Cotton
of 2007-08 Crop year
as under:
| Variety/
Grade |
Quantity
in
M.Tons/Bales
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Price
in US Cents per lb FOB Net Navi
Mumbai
|
Shipment
period
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FORTY
–FIVE DAYS FROM DATE
OF CONTRACT.
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2.TERMS
OF PAYMENT
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The buyer shall establish an irrevocable
operative Letter of Credit without recourse to Sellers
by Cable / Telex / Swift as per the Sellers pro-forma
in US Dollars for 100% value of cotton quantity
contracted with a first class International Bank,
authorising reimbursement by Cable / Tested Telex
/ Swift with the New York Correspondent/agency of
the L/C issuing Bank and available at the counter
of any Scheduled Bank in India, so as to be in the
Seller’s hand at least 15 days prior to the
last date of shipment. Such a Letter of Credit
shall be valid for negotiation for a minimum period
of 30 days after the last date of shipment stated
in the L/C. In case of delay in providing L/C as aforesaid,
the buyer shall also provide in the L/C for payment
of carrying charges up-to the date of shipment as
per clause 7 of the contract
(b)The
charges for establishing the Letter of Credit and
any Bank charges outside India will be on Buyer’s
account.
(c)The
Buyers shall immediately on hearing from sellers amend
the Letter of Credit so as to make
it fully operative for effecting shipment and realisation
of proceeds. The Bank charges and expenses incidental
to such amendment shall be borne by the Buyers. The
date of receipt of such amendment, operative L/C will
be deemed as the effective date of receipt of L/C.
- Only on receipt of shipping
instructions, nomination of vessel and provision
of adequate containers by Buyers, shall L/C
be deemed fully operative.
- It shall be the responsibility
of the buyer to keep the L/C operative for shipment
for a minimum period of 45 days from the last
date of shipment as per contract or till the
entire contracted quantity is shipped whichever
is later and related documents are negotiated
by the Sellers.
- The Sellers shall be entitled
to draw the full amount against the Letter of
Credit immediately after shipment and on presentation
of the shipping documents without any further
need for certification / authorisation etc.
In the event of delay in receiving payment beyond
5 working days, the sellers shall be entitled
to charge and the buyers liable to pay Interest
on such delayed amount @ 11.5 % p.a.
(g)In
lieu of establishing an irrevocable Letter of Credit
as provided under clause 2 above, the buyer shall
have the option to make advance payments in the account
of the seller to facilitate shipments as per terms
of this contract. For this amount received in advance,
cash discount @ 6% p.a. shall be payable to the buyer
on pro-rata basis for the unavailed shipment
period to be reckoned from the date of realization
upto the last date of shipment period. However
if any quantity of the contract remains unshipped
within the shipment period then the buyer shall be
liable to pay late lifting charges@ 0.30 % p.m. of
30 days from the next day of expiry of shipment period
till the date of Bill of Lading.
3.APPROVAL:
(a)The
Buyers shall arrange to complete approval of the cotton
bales immediately and intimate to the sellers the
final approval of lots within 5 working days from
the date of samples made available to them for approval.
A minimum of eighty percent (80%) approval is to be
done from samples given at any one time. The cotton
lots once approved by the buyers or their agents shall
be final and no quality disputes thereafter, shall
be entertained by the sellers in respect of such approved
lots.
- In the event of buyer or his
agent not agreeing to the quality of cotton as
per the indicated parameters, the samples shall
be drawn through an Internationally recognized
controller to be appointed by the seller, for
testing in a reputed laboratory whose results
shall be final and binding to both buyer and seller.
- The approximate net weight of
each bale will be about 170 kgs. Variation in
contracted quantity to the extent of 5 % of number
of bales/ M Tons should be acceptable to the buyers.
4. WEIGHMENT
& INSPECTION OF COUNTRY DAMAGE :
(a)The
sellers shall arrange weighment of approved cotton
lots at the port of shipment/spot through an internationally
recognized controller and the weight certificates
so issued by the controller appointed by the Sellers
shall be final.
(b)The
sellers shall arrange country damage inspection of
the approved lots at the port of shipment through
an independent and internationally recognized controller.
The country damage inspection report so issued by
the controller appointed by the sellers, will be final
and binding on both sellers as well as the buyers.
However, the buyers or their local agents shall be
free to inspect the bales for country damage prior
to shipment at the port of shipment at their own expenses.
5.SHIPMENT:
(a)The
buyers shall make all arrangements for timely shipment
and send the shipping instruction well in time and
in any case, 15 days before the expiry of contracted
shipment period.
(b)The
Buyers shall arrange nomination of vessel for FOB
contracts and provide adequate no. of containers well
in time and prior to the last date of the
shipment.
(c)Terminal
handling charges (THC) at the port of shipment will
be on seller’s account.
(d)The
buyers shall allow part shipment as well as reallocation
of approved lots in shipping instructions, to facilitate
shipments in time.
- The buyers or their local agent
shall arrange the release of bill of lading as
per terms of L/C and shipping instructions, by
the shipping company in favour of the sellers
immediately after carting / loading of the cargo
/ consignments on the nominated vessel.
- Depending upon the requirements
of the importing country and subject to provision
in the L/C, the sellers shall arrange for Phytosanitary
certificate, Certificate of origin and Fumigation
certificate only. Any requirement of additional
certificates / documents shall be arranged by
the buyers at their own cost.
6.C&F/FOB
SALES MARINE & WAR RISK (WATER BORNE ONLY)
The sellers agree
to notify the buyers, name of the vessel and other
particulars of consignment shipped, after shipment.
The buyer shall cover Insurance for 110 % of the invoice
value with a first class insurance company from the
port of shipment in India to Warehouse in the country
of destination covering all kinds of risks, strikes,
riots and civil commotions etc.
7.LATE
SHIPMENT:
(a In
the event of non-shipment within the stipulated shipment
period for any default of the buyer, the
Corporation could consider allowing the shipment within
the next 60 days for which buyer will have to pay
carrying charges @ 1% p.m.of 30 days on pro-rata basis
w.e.f. _________ till
the date of bill of lading and the amount of carrying
charges payable for such delayed shipments, shall
be included in the L/C to be established by the buyer
as provided under clause 2 (a) of the contract.
(b)If
the shipment under the contract is delayed even beyond
60 days as provided under clause 7 (a) above,
for any reason for which the sellers are not responsible,
Corporation at its sole discretion, may allow shipment
of bales within the next 60 days provided the buyer
makes payment of 5% value of the unshipped quantity
of the contract including the due amount of carrying
charges upto the extended shipment period, within
10 days after the expiry of 105 days from the date
of contract. However, the total extended shipment
period shall not exceed 180 days from the date of
contract and for any quantities remaining unshipped
beyond this period, Corporation shall be free to resell
the same at buyer’s risk and cost.
- Export Licence shall be the responsibility
of the Sellers. Export duty in India will be on
seller’s account.
- Import Licence, if required by the Buyer’s
country will be the responsibility of the Buyers
any import duty, Tax, or any other levies and
Expenses at the destination port, will be on buyer’s
account.
Should any circumstances
arise preventing the Sellers from wholly or partly
carrying out the obligation under the present contract
due to circumstances beyond the Seller’s control
such as Natural Calamity, Strike, Riots, Acts of Elements,
War Military operations of any nature, Blockade, Quarantine,
Disruption of communication, Fire, any act of Government
or by other circumstances of FORCE MAJEURE,
the contract shall be cancelled to the extent of damage/destruction/short-fall
arising due to above causes. The
seller shall intimate quantum of such
destruction/damage/short-fall to the buyers within
15 days either directly or through the Buyer’s
Agent.
THAT THE BUYERS
HEREBY CATEGORICALLY AGREE TO ACCEPT such
cancellation to the extent of the damage/destruction/short-fall
and shall not have any recourse to any action, legal
or otherwise thereafter, on the sellers.
10. ARBITRATION
The sellers having
allowed approval and quality inspection of contracted
cotton before shipment shall not entertain any claim
relating to quality and country damage. Other
disputes arising under the contract shall be as far
as possible resolved mutually and only the unresolved
disputes shall be referred to Indian Council
of Arbitration, for arbitration whose Award shall
be final and binding on Sellers as well as the Buyers.
SAVE & EXCEPT
WHAT IS EXPRESSLY PROVIDED HEREINABOVE THIS CONTRACT
IS SUBJECT TO RULES AND REGULATIONS OF THE EAST INDIA
COTTON ASSOCIATION LTD., MUMBAI.
11.The
buyers shall return to the sellers three copies of
this contract duly signed by them, in confirmation
of all its terms, within 7 days from the receipt thereof
by the buyers/Agents, failing which, this contract
will be treated as accepted.
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(AUTHORISED SIGNATORY)
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(AUTHORISED SIGNATORY)
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NAME_____________
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(Address with Seal)
