I. General: clauses in this section and Section I are regarded as integral parts in the Contract.
II. Terms of delivery:
1. The passing of the title and risk of commodity shall regard the connecting point of the oil-collection and conveying pipe of tanker and oil transfer arm on the shore of unloading port as the cut-off line. When the commodity passes the connecting point, the title and risk pass from the Seller to Buyer. Seller’s delivery responsibility shall be terminated.
2. The tanker sent dispatched by Seller, are forbidden to discharge oils or oily mixture into coastal waters of the People’s Republic of China.
3. The tanker sent by Seller at the unloading port, shall conform to relevant tanker operation safety relations specified by local administrative authority.
4. If shifting berth or tank barge is needed for unloading at unloading port for reasons caused by the Buyer, the cost shall be borne by the Buyer.
5. 5% in quantity shipped in each batch is allowed.
III. Notice of unloading:
1. Both parties shall negotiate and arrange a date acceptable for both. The expected time of arrival (ETA) of tanker at unloading port fixed up by both parties is referred as “confirmation date”.
2. The Seller shall dispatch tanker to arrive at the unloading port in accordance with the “confirmation date” fixed up by both parties. The Buyer shall arrange port for inspection and unloading in time. If one party asks to change “confirmation date” for special reason, the other party shall reply for acceptance or not within one day based on the possibilities of storage tank, berth and shipment reception as well as the possibility of tanker arrangement. If the tanker arrives at the unloading port before or after the “confirmation date”, the Buyer shall exert the greatest effort to arrange inspection and unloading as soon as possible.
3. The Seller shall inform the Buyer on cable before the tanker arrives at unloading port.
4. After the completion of unloading, the Buyer shall go through the formalities in time, which is convenient for the boats of Buyer to depart.
IV. Rate of unloading:
The time wasted due to the following reasons, is excluded from the unloading time:
1. The time that operation can not be continued due to severe weathers including gale and thunderstorm.
2. The time that the tanker stays in the port as port office refuses its calling due to safety, and the time that port authority prohibits loading.
3. The finishing time that oil pipe unloading is taken as the finishing time of unloading cargo work.
4. Demurrage charge occurred due to the failure of unloading equipment at the port, shall be calculated by 50% of the stipulated rate in V.1. of this section.
V. Demurrage charge:
1、买方若未能在规定时间内安排检验、卸货完毕，则买方应向卖方交付滞期费,滞期 费应以双方确认的卸船数量作为它的船型，每日滞期费应以WORLDSCALE 所规定的基数（以提单日期为准）乘相应的 AFRA 运费率计算。
1. If the Buyer fails to accomplish the inspection and unloading within the required time, the Buyer shall pay the demurrage charge to the Seller. For the charge, the confirmed amount of unloading is the ship form. Daily demurrage charge shall be calculated in terms of the multiplication of cardinal number stipulated by WORLDSCALE (subject to the BL date) to the relevant freight rate of AFRA.
2. The demurrage charge proposed by the Seller to the Buyer, after audited and verified by Buyer, shall be paid in US dollars in cash.
VI. Commodity inspection:
1. The survey of weight shall be subject to survey report on weight issued by CIQ.
2. Inspection of quality: the quality of commodity delivered by the Seller shall be subject to the certificate of quality issued by CIQ after test.
3. State Commodity Inspection Bureau.
VII. Insurance on oil pollution liability:
1. The tanker dispatched by the Seller shall participate in amount guarantee (P&ICLUB insurance) and TOVALOP agreement, which are based on Article 7 of International Convention on Civil Liability for Oil Pollution Damage (CLC) in 1969.
2. For tanker dispatched by the Seller, when there is an accident at unloading port leading to pollution of oils and oily mixtures, or likely to happen, the ship owner or master shall take removal measures quickly to prevent the loss caused by oil contamination. Or, they shall take reasonable and effective measures to prevent the loss caused by oil contamination from further expansion. If the ship owner or master fails to take above measures, however, after informing the owner of master, the Buyer can take reasonable and necessary measures to clean and mitigate the possible loss caused by oil containment. The Buyer shall inform the ship owner or master with the measures to be taken and the consequences at any time. When time allows, the Buyer shall inform the owner or master with proposed measures before taking actions. The above measures taken by the Buyer can be regarded as under the delegation of owner of master. In that case, for measures taken by delegatee, the delegator has the right to raise an objection to delegatee or inform stopping actions based on actual conditions. When the delegator has proposed the notice, the delegatee has no right to continue.
3. The above measures taken by the Buyer, ship owner or master shall conform to the stipulations in International Convention on Civil Liability for Oil Pollution Damage (CLC) in 1969 and TOVALOP agreement.
VIII. Force majeure: if failing to deliver on time due to force majeure, both parties can delay the delivery or cancel the Contract on negotiation.
IX. Clauses of bilateral responsibilities and breach:
1. Party A shall ensure the legitimacy of the import source channel and qualification procedures of commodity, and conformity to relevant national import policies and regulations, as well as be held fully responsible for breaching this clause.
2. Both parties bear full responsibility for implementing the specification clauses in the Contract. Distributes arose in the performance or related to the Contract, shall be settled based on the clauses stipulated in the Contract.
3. When the commodity conforms to the quality standards after inspection of CIQ, if Party B fails to pay the price of commodity at the right time, for each day delayed, it shall pay late fees to Party A as eight thousandths of the total payments. Meanwhile, the Buyer shall implement the responsibility and duty of payment.
4. Once the Contract is signed, both parties shall bear the liabilities arising from breach, including failing to delivery of a shipment at port on time, or that Party A has no shipment for deliver, or Party B has no money to pay. If a breach occurs on Party A or B, the default party shall pay 2% of the contract value or unexecuted value to observant party unconditionally as liquidated damages.
X. Resolution of dispute:
The disputes in connection with undertaking the Contract or other matters related, shall be settled through friendly negotiation. If negotiation fails, the observant party shall file a lawsuit to the people’s court at observant place.
XI. The Contract shall be valid upon being signed and sealed by both parties (facsimile or digital signature is valid). During the performance of the Contract, it shall not be changed or terminated at will by either party. The attachment and the Contract are of equivalent legal force. As for the unmentioned matters, both parties shall negotiate and make supplementary agreements. The supplementary agreements and the Contract are of equivalent legal force.
XII. There are quadruplication of original Contract (facsimile or digital signature is acceptable); both parties shall have two copies.