C) MOISTUREIf free moisture loss at 105 degrees centigrade a

C) MOISTURE
If free moisture loss at 105 degrees centigrade as finally determined pursuant to the provisions of clause 9 exceeds the guaranteed maximum referred to in clause 3,seller shall pay buyer full actual freight applicable to moisture over 8% for fines.
CLAUSE 7 PAYMENT
Buyer shall open within 5 working days after signing the contract,a transferable,irrevocable and confirmed non-operative Letter of Credit with first class international China bank through Hong Kong Shanghai Banking Corporation in favor of Seller for an amount in US Dollar sufficient to cover 100% (one hundred percent) of the shipment value.
Within Five (5) working days upon receiving the non-operative L/C,the seller shall provide 2% performance guarantee (P/ B) of 100% L/C value in favor of buyer via the mutually accepted bank channel as the guarantee of shipment.The L/C shall then become operative on submission of the performance guarantee.After the execution of the contract,the PG shall become null and void and shall be returned to seller within 15 banking days.
A) PROVISIONAL PAYMENT
The said L/C shall be payable by opening bank against Seller’s sight draft for the amount of 98% (ninety eight percent) of the shipment value accompanied by the documents as stipulated in clause 7.The weight certificate issued by Certifying Agency by survey of ship’s draft together with the certificate of Analysis of sample and of the percentage of free moisture loss at 105 degree centigrade issued by Certifying Agency shall be the basis for seller’s provisional invoice.
A.1 Certifying Agency:
It is preferred by the buyer to use CCIC as the certifying agency for certification of weight and analysis,If CCIC is unavailable to attend the inspection at the time of loading at loading port,then the seller is authorized to carryout the analysis and weight certification by SGS INDIA or SK MITRA INDIA,at the sellers cost,which shall be the basis for the sellers provisional invoice
B) FINAL PAYMENT
The balance due to the Seller after provisional payment shall be made by telegraphic transfer against seller’s final invoice in duplicates delivered directly to the Buyer.This invoice is to be based on CIQ certificate as provided in clause 8 and 9 issued within 45 days from the date of completion of discharging at the discharging port.If umpire analysis is required,payment adjustment arising from this will be made when the umpire’s certificate is available.In case analysis is not carried out at the discharge port within 45 days from the days from the date of completion of discharging,the load port result shall form the basis for final invoice.
The LC should contain the following terms and conditions:
I) The L/C shall allow for 10% more or less in value and quantity.
II) Documents to be presented within 15 days from B/L date.
V) The L/C shall incorporate the following:
- Transshipment not allowed
- Partial Shipment Allowed