General supply terms for iron scrap

GENERAL CONDITIONS FOR THE SUPPLY OF IRON SCRAP

Boz IMEX s.a.s. di Boz Renato & C. (“Boz IMEX”)

 

1.       SUBJECT

Definition and formalization of the respective obligations and rights of the Seller (hereinafter the "Supplier") and the Purchasing Party (Boz IMEX) in the execution of the ferrous scrap supply contracts stipulated by the Parties themselves.

 

2.       VALIDITY AND APPLICATION

These General Conditions apply to cross-border shipments of material made against the "Supplier Orders" which will be stipulated time by time between Boz IMEX and the Supplier based on market trends and commercial agreements reached.

They come fully into effect starting from the date of publication on the company website at URL https://www.bozimex.com/company/7/general supply terms/; each "Supplier Order" will contain the reference to the version valid at the time of issue, therefore any changes cannot be applied retroactively to orders in progress.

For anything not expressly provided for in these Conditions, reference is made to current laws and regulations applicable at international level to commercial, tax and environmental fields, as well as to the standards in the steel industry. By way of example (but not limited to): Incoterms®; Council Directive 2006/112/EC (“Common system of value added tax”), with subsequent amendments and additions; Regulation (EC) 1013/2006 on shipments of waste, with subsequent amendments and additions; Regulation (EU) 333/2011 on the "End-of-Waste" criteria, with subsequent amendments and additions; Regulation (EC) 1907/2006 "REACH", with subsequent amendments and additions; scrap specification CECA, EUROFER, AISI, CAEF, UNI.

Where applicable, these General Conditions are intended to be extended to the supply of non-ferrous scrap and wastepaper.

 

3.       QUANTITIES AND TYPES OF PRODUCTS

Unless otherwise agreed between Boz IMEX and the Supplier (to be ratified in writing), each order will be deemed as fulfilled with the delivery of the exact quantities agreed for each of the established product types.

In the event of an increase or decrease in market prices, any deliveries, respectively in defect or in excess of the set quantity, will be penalized based on the new market price level, without prejudice for Boz IMEX to the compensation against the Supplier for any further charges by the final customer receiving the material.

In case of non-delivery by the Supplier, Boz IMEX reserves the right to charge an appropriate penalty due to the "loss of earnings".

 

4.       DELIVERY TIME

Delivery period will be specified time by time in the Supplier Order: fulfilment of all obligations referred to in § 3. in due time will be under Supplier's responsibility. In case of unexpected difficulties in respecting established delivery terms, Supplier is required to promptly inform Boz IMEX.

For deliveries made outside the aforementioned deadlines, Boz IMEX reserves the right to charge a penalty, regardless of whether or not shall it be applied by the end customer.

 

5.       DELIVERY TERMS

Boz IMEX and the Supplier jointly agree to distribute the mutual rights and obligations pertinent to the goods delivery based on the Incoterms® of the International Chamber of Commerce (ICC).

Unless otherwise specified, the reference is to the latest revision.

Any exceptions or variations to the Incoterms® clause adopted must be made explicit in writing.

 

6.       SHIPMENT BY RAILWAY WAGONS

Deliveries by single wagon, group of wagons, block-train are allowed.

Once loading is complete, each wagon must be covered with a suitable net having a mesh with a minimum side of 15 mm.

It is the duty of the Supplier, in cooperation with his National Railway and / or his forwarding agent, to ensure and respect the maximum gross weight allowed on the route, based on the final destination of the material: Boz IMEX assumes no responsibility for any consequences arising from exceeding of such limits.

Once shipment has been released by the Railways and/or taken over by the Customer / final recipient, it will no longer be possible to modify delivery documents, neither divert the wagon to another destination (except for any cases of rejection for qualitative reasons, see in this regard § 11.).

 

7.       SHIPMENT BY TRUCK

In the case of shipments by truck organized directly by the Supplier, he undertakes under its own responsibility to:

  • plan in good time the unloading at the final destination, if requested by booking a “slot”, specifying date and estimated time of arrival. Reservation is made by Boz IMEX based on info communicated by the Supplier and / or by the carrier appointed by him; any changes during the trip must be promptly communicated to Boz IMEX in order to make necessary changes, if still possible. In the event of unused slots not cancelled in good time, Boz IMEX reserves the right to charge the Supplier with an amount as refund of management costs;
  • use trucks suitable for transport and unloading according to the type of material to be delivered, based on the provisions of the final recipient which Boz IMEX undertakes to transmit together with the delivery instructions. In case of discrepancy between the loaded material and the type of truck allowed, the Supplier acknowledges that the final recipient may refuse to unload the vehicle;
  • instruct the appointed carriers to strictly comply with all the procedures, rules and provisions regarding health and safety on work in force at the final destination of the material. By way of example, but not limited to: use of safety devices; prohibition of unauthorized access; compliance with the signage and internal routes of the scrap yards; use of specific areas for truck cleaning. Boz IMEX undertakes to transmit to the Supplier a copy of the provisions at issue (including necessary updates) together with the instructions for the delivery of the material. Any violation of the aforementioned rules will involve the application of a penalty which will be communicated and charged to the Supplier as a matter of course.

 

8.       TRANSPORT DOCUMENTATION

Each shipment of scrap must be accompanied by the required accompanying documentation, namely:

  • CIM / CMR consignment note;
  • Annex VII pursuant to art. 3(2) and (4) Reg. (EC) 1013/2006; alternatively (if applicable): declaration of conformity pursuant to art. 5(1) Reg. (EU) 333/2011;
  • weight bill;
  • certificate of radiometric control (see following § 10.);
  • certificate of analysis of the material (if required).

In compliance with the contractually established delivery terms, Supplier may begin shipments of material only after received related instructions from Boz IMEX; for each shipment carried out in the absence of such instructions (or with documents filled-in differently from specifications sent in writing by Boz IMEX), the Supplier assumes full responsibility for any penalty applied by the final Customer.

The Supplier undertakes to promptly transmit to Boz IMEX relevant shipment notices and copy of transport documentation as well.

 

9.       MINIMUM NET WEIGHT TO BE LOADED

9.1     SHIPMENT BY RAILWAY WAGONS

Unless otherwise agreed in writing between Boz IMEX and the Supplier, the material must be loaded on four-axle railway wagons Class E; two-axle wagons will NOT be accepted.

Depending on the origin of the material, the minimum net weight to be loaded amounts to:

- 40 metric tons for scrap from Italy, Croatia, Romania, Slovakia, Slovenia, Hungary;

- 45 metric tons for scrap from Austria, Czech Republic.

In case cost of transport is in whole or in part at the expense of Boz IMEX (or of the Customer / final recipient), Boz IMEX reserves the right to charge the Supplier with the higher transport costs incurred because of the possible failure to comply with the prescribed minimum loads.

9.2     SHIPMENT BY TRUCK

Unless otherwise agreed in writing between Boz IMEX and the Supplier, and without prejudice to compliance with the payload of the vehicle used, minimum net weight to be loaded is equal to 23 metric tons.

For vehicles coming to Italy from abroad, gross weight cannot in any case exceed 40 metric tons, under penalty of rejection by the steel mill.

In case cost of transport is in whole or in part at the expense of Boz IMEX (or of the Customer / final recipient), Boz IMEX reserves the right to charge the Supplier with the higher transport costs incurred because of the possible failure to comply with the prescribed minimum load (provided that the failure is not arising from payload restrictions).

 

10.       RADIOACTIVITY

For each outbound cargo, verification of the radioactivity level of the cargo is under the full and sole responsibility of the Supplier; if he is not provided with his own equipment suitable for this purpose, he must designate at his own expense a qualified third party. The relevant certificate of inspection must be attached to the transport documentation in § 8.

If during the journey, or upon arrival at its destination, radioactivity values on the cargo exceeding the limits imposed by the current Italian legislation ​​are found, all costs and expenses related to the official rejection of the material to the sender, or to its remediation for subsequent forwarding to destination, are to be intended fully charged to the Supplier.

By way of example, but not limited to: outbound transport and (for wagons rejected) return; freights and stopping costs; cargo handling for isolation of the radioactive source; storage, transport and disposal of the same by authorized operator.

 

11.       SCRAP SPECIFICATIONS

Because of its use in complex and high-cost productions, ferrous scrap has to undergo a strict check before acceptance, both by final users, and by the competent state bodies in the cases provided; for each shipment following requirements must therefore be respected with regard to:

1. quality - for each type of scrap on order, delivered material must be homogeneous and comply with the European standards for classification of scrap (CECA, EUROFER) in use in the steel industry. Mixture of grades will not be accepted, unless by joint agreement by written;

2. dimensions - unless otherwise agreed in writing between Boz IMEX and the Supplier, the material must be delivered in so-called “furnace sizing”, namely with maximum dimensions of 1,500 x 500 x 500 mm. In any case, single pieces weighing more than 500 kgs will not be accepted;

3. safety - all grades shall exclude:

  • pressurised, closed or insufficiently open containers, which could cause explosions;
  • dangerous material, inflammable or explosive, fire-arms (whole or in part), munitions (shells and / or bullets);
  • dirt or pollutants which may contain or emit substances dangerous to human health or to the environment or to the steel production process;

4. steriles (cleanliness) - all grades shall be free of:

  • non-metallic materials, earth, insulation, excessive iron oxide in any form (except for nominal amounts of surface rust arising from outside storage of prepared scrap under normal atmospheric conditions);
  • combustible non-metallic materials, including, but not limited to: rubber, plastic, fabric, wood, oil, lubricants and other chemical or organic substances;
  • larger pieces (brick-size) which are not conductors of electricity such as tyres, pipes filled with cement, wood or concrete;
  • waste or by-products arising from steel melting, heating, surface conditioning (including scarfing), grinding, sawing, welding and torch cutting operations, such as slag, mill scale, baghouse dust, grinder dust and sludge.

5. other metallic elements - for each scrap grade the final user (steel mill) defines the “aimed analytical content”, that is the levels of maximum content of certain metallic elements; supply of scrap not falling within the set analytical limits is permitted only upon specific prior agreement by written between Boz IMEX and the Supplier. In any case all grades shall be free of components that contain any of the following in pure state or as alloys:

  • copper: wound electric motors, sheets and copper coated materials, bearing shells, winding and radiator cores, wire, insulated wire and cable tubing, brass items;
  • tin: cans, tin coated materials, bronze elements (rings, bearing shells…);
  • lead: batteries, solder, wheel weights, terne plate, cable ends…
  • chromium, nickel, molybdenum: alloyed steels and stainless steels; mechanical parts (motors, drive gears for trucks, axles, gear boxes, gear wheels, tools, dies); non-magnetic pieces.

Upon request of the Supplier, Boz IMEX will provide, for each material to be delivered, the detailed specifications in use at the Customer / final recipient: the Supplier undertakes to strictly comply with them, as well as with any additional specifications requested by the Customer / final recipient, to be specified in writing within the Order.

Any non-conformities (supported by suitable photographic documentation) will be handled respectively as follows:

1. In the presence of categories of scrap found by the Steelworks of lower quality than that declared, the load will be downgraded in whole or in part (depending on the disputed percentage) based on the price list resulting from the Supplier Order; any categories not included in the Order will be handled based on specific agreements between Boz IMEX and the Supplier. In case of severe quality problems, the material will be rejected, with full charge of expenses and damages to the Supplier.

2. In the presence of a percentage of oversized material, a penalty for handling and cutting costs with a blowtorch will be charged equal to 25.00 (twenty-five) euros per metric ton.

3. In the case of materials non-compliant with safety rules, found and rejected by the steel mill, the resulting costs and expenses will be charged to the Supplier, plus any penalties applied by the steel mill itself.

4. In the event of an estimated presence of sterile/dirt material exceeding the tolerances set by current European legislation on waste, as well as by conventions in steel industry, such material will be zero-valued and charged to the Supplier based on the quantity found, without prejudice to the application of a penalty as refund of expenses for selection, cleaning, disposal,… In case of severe cleanliness problems, the material will be rejected, with full charge of expenses and damages to the Supplier.

5. Non-compliant materials found will be handled time by time, depending on the circumstances: related penalties may range from simple downgrade to complete rejection of the load, with full charge of expenses and damages to the Supplier.

The Supplier acknowledges that repeated and / or serious violations of the supply specifications may lead to its inclusion in a black-list by the Customer / final recipient, with consequent prohibition to make deliveries (in whole or limited to some materials) to the same.

 

12.       ACKNOWLEDGED WEIGHT

The weight found at destination is considered valid for the correct invoicing of the material by the Supplier and will be communicated by Boz IMEX at agreed deadlines. However, the invoicing of the weight declared at departure is allowed as well for accounting reasons, upon subsequent amendment by debit / credit note based on the entry lists processed by the Customer / final recipient.

In the case of significant weight differences (over one ton) on rail wagons, a copy of the documentation issued by the Customer / final recipient (weight bill and, if available, official weighing report) will be provided on request. Any complaint by the Supplier on the weight found at destination can be submitted only in case of official weighing at departure, with electronic bill, relevant calculation shown on the CIM waybill and stamped of the weighing station.

In the case of transport by truck, the weight found at destination is always valid.

 

13.       AUTHORIZATION(S) FOR WASTE ACTIVITIES

As per current European legislation, iron scrap is considered as "waste" (although not dangerous, since it belongs to the "green list"): for this reason, the Supplier declares under its sole responsibility to be authorized by the Environmental Authorities of his country to carry out activities of collection, storage, treatment, trade of waste in compliance with the European legislation; he also undertakes to:

  • send to Boz IMEX an updated copy of his own licenses (and of his sub-suppliers / producers, in case he also (or exclusively) carries out waste activity as dealer/broker);
  • provide all necessary updates at the aforementioned licenses expiry.

The Supplier acknowledges that the signing of the contract referred to in article 18, paragraph 2 of Regulation (EC) 1013/2006 (so-called "Waste Shipment Contract"), acting as the "Person under the jurisdiction of the country of dispatch who arranges the shipment", jointly with the "Consignee for recovery of the waste", is basic condition for the fulfilment of the Supplier Order, unless its object is "End-of-Waste" scrap in compliance with Regulation (EU) 333/2011.

In the event that Supplier arranges on his own deliveries by truck to Italian consignee, he acknowledges under its full responsibility that the carrier(s) employed, in addition to a regular license for the transport of waste, must be enrolled in the Italian Register of Environmental Operators (held by the Ministry of environment and protection of land and sea) for all EWC codes relevant to the shipment and for all vehicles (trucks and trailers) used for this purpose.

 

14.       SOCIAL ACCOUNTABILITY AND SUSTAINABLE DEVELOPMENT

Boz IMEX encourages the adoption of behaviours consistent with a healthy and sustainable economy and therefore requires its partners to share and apply a set of fundamental and universally shared principles (as deriving from The Universal Declaration of Human Rights, the International Labour Organization's Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development and the United Nations Convention Against Corruption) in relation to:

  • human rights (equality; life and security; personal, economic, social and cultural freedom);
  • labour standards (right of workers and employers to freedom of association, effective recognition of the right to collective bargaining, elimination of forced or compulsory labour, abolition of child labour and of any form of discrimination based on race, colour, sex, religion, political ideas, nationality or social background);
  • environment (reducing impacts on resource use and the environment, promotion of cleaner production and responsible entrepreneurship, also through research, innovation, and diffusion of technologies respecting the planet's life support systems);
  • anti-corruption (work against corruption in all its forms, including extortion and bribery).

 

15.       APPLICABLE LEGISLATION AND JURISDICTION

These General Conditions, the Supplier Order and any agreement subsequently concluded between Boz IMEX and the Supplier connected with the same will be governed by Italian law.

Any dispute that may arise regarding the validity, interpretation, execution of the General Conditions and the Supplier Order will be devolved to the exclusive jurisdiction of the Court of Udine.

 

Last updated 06.10.2020, San Vito al Tagliamento

Version: 3.0

 

_________________________________

Boz IMEX s.a.s. di Boz Renato & C.

Viale Zuccherificio 25

IT – 33078 San Vito al Tagliamento (PN)

EU-VAT No.: IT00289500936