Animal Tallow and Grease; Export Contract

Transcription

1 Animal Tallow and Grease; Export Contract Follow the links below to each sub-section: General Rules Uniform Export Contract Definitions of Tallow and Grease Specifications Settlement for Deficiency of Specifications Replacement in Case of Rejection Commingling Quantities and Quantity Tolerances Shipment Default; Force Majeure Bills of Lading, Notices, Insurance and Miscellaneous Provisions Survey, Sampling, Weighing and Analysis Shipment in Drums and Other Containers Return To Menu General Rules Section Text Rule 1. The adoption of these rules by contracting parties is

2 optional. Any contract to which these rules may apply may incorporate all, some or none of them, as the parties to the contract shall agree. In the event of any conflict between any of these rules and any provisions of a contract to which they may apply the provision of the contract shall govern. Rule 2. At the first meeting of the Board of Directors after its election, the President shall (subject to the approval of the Board) appoint a Committee on Export and Domestic Animal Tallow and Grease. A quorum of the Committee shall be a majority of the number appointed. It shall be the duty of this Committee to discharge the obligations imposed upon it by these rules. Rule 3. All disputes and controversies arising under these rules, which pertain to such animal tallow and grease, shall be settled by arbitration as provided in the American Fats and Oils Association, Inc. Arbitration Rules as amended from time to time all of which are hereby incorporated in and made part hereof. Rule 4. The Committee shall have power and authority to interpret these rules, and its interpretation, not inconsistent with the By-Laws or rules of the Board of Directors of the Association, shall be binding on all persons interested. Rule 4A. Any person sending any communication required or permitted by these rules shall have the burden of obtaining adequate proof of its timely receipt.

3 Return To Menu Uniform Export Contract Section Text Rule 5. The following form of contract is the official American Fats and Oils Association contract for export of animal tallow and grease and, unless otherwise specified therein, is the contract entered into by parties trading pursuant to these rules: American Fats and Oils Association Uniform Export Contract for Animal Tallow and Grease 1. Seller: Buyer: Commodity and Grade: Quantity: Shipment: 12.

4 13. Price: Terms: Special Conditions. Sellers will instruct application of IASC heating instructions to all shipments under this contract. Thermal heating fluids, hot water, and/or steam are acceptable heating media

5 Unless otherwise specified herein, this contract is made under the rules of the American Fats and Oils Association for Export Animal Tallow and Grease, which rules are deemed incorporated herein as a part hereof. The parties hereto agree that the exclusive remedy for the resolution of all disputes, controversies, or claims arising out of or relating to this contract is arbitration in New York City or such other place as all parties shall agree, conducted pursuant to the rules entitled American Fats and Oils Association, Inc. Arbitration Rules ( Rules ). The Rules are hereby deemed incorporated into this contract as if fully set forth herein. Demand for arbitration shall be made not later than one calendar year from the date that the conveyance carrying the material has arrived at its destination ( Arrival Date ) or the right to arbitrate shall be conclusively presumed to have been forfeited and no party shall have the right to pursue any alternative remedy. Notwithstanding anything to the contrary contained in the preceding sentence: (a)demand for a arbitration of a claim for deficiency in

6 specifications or weights shall be made within fifteen (15) calendar days after the presentation of the claims; and (b) if seller is not the original on board shipper of the material, seller shall have 15 days from the date of seller s receipt of a timely arbitration demand from purchaser in which to institute a proceeding against seller s supplier, which proceeding may be consolidated with any proceeding brought with respect to the same material. The rights conferred upon seller by the proceeding sentence shall be valid even if the 15 day period commences or expires after the expiration of one year from the Arrival Date. In the absence of proof to the contrary, receipt of a demand for arbitration shall be conclusively presumed to have occurred five (5) business days after the demand was mailed by the claimant to the respondent or to the administrator of the arbitration, as the case may be. If partial payment has been made for the goods which are the subject of this contract and the demand for arbitration seeks only the balance of payments due for those goods, together with such additional money damages as are incidental to that balance (such as interest and attorney s fees), arbitration shall be timely if commenced within one year from the claimant s receipt of the most recent payment. * The provisions of this contract shall be construed and the rights of the parties hereto determined pursuant to and in accordance with the laws of the State of New York and of the United States of America. Date (buyer) - ( seller)

7 - as Brokers Buyer s Order No. - Seller s Order No. *Amended 1/ 02, Effective 4/1/02. Return To Menu Definitions of Tallow and Grease Specifications Section Text Rule 6. Animal tallow and grease shall contain only fluids and fatty acids natural to the product, except for such other substances in such amounts as might occur unavoidably in accordance with industry practices. All analytical tests are to be performed in accordance with the American Oil Chemists Society (AOCS) methods. TITRE: The TITRE determines the solidification point of fatty acids and is expressed in degrees centigrade ( C). For practical purposes the TITRE can be considered as a measure of the hardness or softness of the material in question. F.F.A.: Means Free Fatty Acid. It is customarily reported in percentage of Oleic Acid. FAC: Stands for Fat Analysis Committee. This method determines the Color of Fats and Oils by comparison with AOCS FAC color

8 standards. R & B Color: Is the color after Refining and Bleaching and is expressed in terms of Red on a 5 1/4 inch cell or tube of AOCS methods. M.E./K: Peroxide Value is expressed in Milli Equivalents per Kilo and is a measure of Fat Oxidation. M.I.U.: These common tests often grouped together and referred to as MIU content are: (M) Moisture and Volatile Matter (I) Insoluble Impurities (U) Unsaponifiable Matter All three are reported as percentages and serve to measure the amount of non-fatty matter present. I.V.: Stands for Iodine Value. The iodine value is a measure of the unsaturation of fats and oils and is expressed in terms of the number of centigrams of iodine absorbed per gram of sample. Standard Grades, Specifications, and Quality Tolerances for Tallows and Greases Rule 7. The standard grades of tallows and greases as set forth below are the official American Fats and Oils Association export and domestic grades. The specifications therefore shall govern trading in tallow and greases under these rules unless the written contract specifically provides

9 otherwise. GRADES SPECIFICATIONS TITRE FFA FAC R&B MIU min. max. max. max. 1) Edible Tallow none 2) Lard (Edible) ** none * * 3) Top White Tallow ) All Beef Packer Tallow none ) Extra Fancy Tallow none 6) Fancy Tallow none 1 1 7) Bleachable Fancy Tallow none ) Prime Tallow B none 9) Special Tallow none 10) No.2 Tallow none none 11) A Tallow none ) Choice White Grease B none 1

10 13) Yellow Grease *** **** 39 none 2 14) Technical Tallow (inedible) as grade 1A none * 15) Used Cooking Oil **** none 2 * Moisture maximum 0.20%. Insoluble Impurities maximum 0.05% ** Lovibond Color 5 1/4 inch cell Max. 1.5 Red. Lard Peroxide Value 4.0 ME/K Max. *** Titre minimum, when required, to be negotiated between buyer and seller on a contract-by-contract basis. **** FFA Maximum, when required, to be negotiated between buyer and seller on a contract-by-contract basis. # Impurities shall not exceed 0.15% except as otherwise negotiated by buyer and seller on a contract-by-contract basis. Rule 8. Yellow Grease, Feed Grade,is the rendered product from the tissues of mammals and/or poultry blended with used cooking or frying oil from human food preparation, consisting of animal and/or vegetable fats or oils. It must contain, and be guaranteed for, not less than 90% total fatty acids, not more than 2.5% unsaponifiable matter, not more than 0.5% insoluble impurities, and not more than 1% moisture. Maximum free fatty acids must also be guaranteed. This product may not include recovered trap grease or material recovered from sanitary sewer sources. If an antioxidant(s) is used, the common name or names must be indicated, followed by the words used as a preservative. If the product contains tallow (from cattle) containing greater than 0.15% insoluble impurities, then it must be labeled with the BSE caution statement do not

11 feed to cattle or other ruminants. (This is published with permission of AAFCO. The most current feed definitions can be found in the online version of their Official Publication which can be obtained by visiting this link: Rule 8A. Animal Fatis obtained from the tissues of mammals and/or poultry in commercial processes of rendering or extracting. It consists predominately of glyceride esters of fatty acids and contains no additions of free fatty acids or other materials obtained from fats. It must contain, and be guaranteed for, not less than 90% total fatty acids, not more than 2.5% unsaponifiable matter, and not more than 1% insoluble impurities. Maximum free fatty acids and moisture must also be guaranteed. If the product bears a name descriptive of its kind or origin, e.g., beef, pork, poultry, it must correspond thereto. Rendered animal fat derived from only pork raw materials can be labeled as white grease. Rendered animal fat derived from only cattle raw materials can be labeled as beef tallow. Tallow containing greater than 0.15% insoluble impurities must be labeled with the BSE caution statement do not feed to cattle or other ruminants. If an antioxidant(s) is used, the common name or names must be indicated, followed by the words used as a preservative. (This is published with permission of AAFCO. The most current feed definitions can be found in the online version of their Official Publication which can be obtained by visiting this link: Rule 8B. Used Cooking Oil, Feed Grade, is the product of used cooking or frying oil from human food preparation, consisting of animal and/or vegetable fats or oils, collected from commercial human food facilities and then heated to reduce moisture. It must contain, and be guaranteed for, not less than 90% total fatty acids, not more than 1% unsaponifiable matter, not more than 0.5 % insoluble impurities, and not more than 1% moisture. Maximum free fatty acids must also be

12 guaranteed. This product may not include recovered trap grease or material recovered from sanitary sewer sources. If an antioxidant(s) is used, the common name or names must be indicated, followed by the words used as a preservative. (This is published with permission of AAFCO. The most current feed definitions can be found in the online version of their Official Publication which can be obtained by visiting this link: Rule 9. Results of analysis performed by a recognized independent chemist on samples drawn at port of shipment shall be final in all transactions governed by these rules, except when material is sold upon guaranteed Boehmer number. When material is sold upon guaranteed Boehmer number and the buyer contests the shipping analysis, the buyer shall have an official sample, taken at port of delivery by an independent surveyor, analyzed by a recognized independent chemist approved by the American Oil Chemists Society, both of whom shall be satisfactory to the buyer and to the seller. If the analysis on the sample taken at port of delivery differs from the shipping analysis and the dispute is not settled between buyer and seller, an official sample shall be submitted to another recognized chemist, satisfactory to both buyer and seller, and the mean of findings of the two latter chemists shall govern. Analysis for Boehmer number shall be performed by the European Method. Return To Menu Settlement for Deficiency of Specifications Section Text

13 Rule 10. Should any tender, other than a tender of Top White Tallow or All Beef Packer Tallow not meet contractual specifications, the following adjustments will be made, unless otherwise provided in the contract: TITRE: The seller shall allow the buyer 0.2% of contract price for each 0.1 C. titre deficiency, fractions in proportion. The buyer may reject the tender when titre deficiency exceeds 0.5 C. F.F.A.: A) Where a contract specifies an FFA maximum of less that 10%, the seller shall allow the buyer 2% of contract price for each 1% of excess FFA, fractions in proportion, however, the buyer may reject the tender if the FFA exceeds the contractual limit by more than 2.0% FFA. B) Where the contract specifies an FFA maximum of 10% or more, the seller shall allow the buyer 1% of contract price for each 1% of excess FFA, fractions in proportion, however, the buyer may reject the tender if the FFA exceeds the contractual limit by more than 5.0% FFA. FAC Color: The seller shall allow the buyer 2% of contract price should the FAC color be one shade darker that the FAC color specified in the contract, however, if the FAC color is darker by 2 shades or more, the buyer may reject the tender. R&B Color: The seller shall allow the buyer 2% of contract price for each excessive 0.5 Red, fractions in proportion, however, if the R&B Color exceeds the contractual limit by more than 0.5 Red, the buyer may reject the tender. M.I.U.: The seller shall allow the buyer 1% of contract price for each 1% of excess M.I.U., fractions in proportion, however, the buyer may reject the tender should the MIU exceed 2% when the contractual limit is 1% and 4% when the

14 contractual limit is 2%. No premium will be due to the seller for analytical results below the contractual limits. Rule 11. Top White Tallow and All Beef Packer Tallow Should any tender be deficient in contractual quality specifications, settlement shall be made in accordance with provisions set forth in Rule 9, however, the tender may be rejected if the titre deficiency exceeds 0.5 C from contract specifications; or if the FFA exceeds 2.5%; or if the R&B color exceeds 0.6 Red; or if the total M.I.U. exceeds 1%. Rule 12. Edible Tallow and Lard (Edible) Should any tender be deficient in contractual quality specifications, settlement shall be made in accordance with provisions set forth in Rule 9, however, the tender may be rejected if: Edible Tallow Titre deficiency exceeds 0.5 C, or FFA exceeds 1%, or FAC color exceeds 3, or Insoluble impurities exceed 0.10%, or Moisture exceeds 0.20% Lard (Edible) Titre deficiency exceeds 0.5 C, or FFA exceeds 0.5%, or Lovibond color exceeds 1.5 Red, or Peroxide Value exceeds 4.0 ME/K or

15 Insoluble impurities exceed 0.05%, or Moisture exceeds 0.20%. Rule 13. No claim for deficiency in specifications or weights need be recognized unless made within forty-five (45) days of the arrival of the means of conveyance and, if the transaction is a part of a chain, within fifteen (15) days after receipt of the survey report by each subsequent buyer. All uncontested claims shall be paid or settled within thirty (30) days of the receipt of the claim by the original shipper, and if the transaction is part of a chain, within fifteen (15) days of the receipt of a claim by an intermediate seller or buyer. Rule 14. When animal tallow and grease tendered are rejectable in accordance with these rules, the buyer, at his option, may reject the material or may accept the material at an allowance to be agreed upon, or, if not agreed upon, then as may be fixed by arbitration as provided in these rules. Return To Menu Replacement in Case of Rejection Section Text Rule 15. When any tender is rejected in accordance with these rules, the seller shall have the right to retender within the original contract period. This Rule shall apply on cost and freight and cost and insurance and freight contracts only.

16 Return To Menu Commingling Section Text Rule 16. Commingling of material of the same grade is permitted. Return To Menu Quantities and Quantity Tolerances Section Text Rule 17. A tolerance of up to 2% more or less of the contractual quantity is recognized as a custom of the trade and is permitted without penalty. Rule 18. In the event that the shipped quantity differs by up to 5% more or less of the contractual quantity, the buyer shall not be entitled to reject the shipment but is entitled to receive an allowance from the seller for the over-shipped or under-shipped quantity over the permissible 2%. Such allowance shall consist of the market difference between the contract price and the prevailing market value on the day of shipment, represented by the Bill of Lading date. Rule 19. When the terms of sale are F.O.B. vessel and the buyer arranges for ocean freight, it is the seller s responsibility to pay for unused ocean freight if the vessel s owner makes such a charge, but only for this freight charge corresponding to that quantity that exceeds 2% of the

17 contractual quantity. Rule 20. For the purpose of these rules, ship s tanks shall be understood to mean any and all tanks and/or compartments contained in vessels of any kind in which oil is shipped in bulk. Rule 21. The terms short tons, metric tons, and long tons, shall be understood to mean tons of 2000 pounds, pounds, and 2240 pounds, each respectively. Return To Menu Shipment Section Text Rule 22. Time of shipment shall be as specified in the contract. In the absence of evidence to the contrary, the date of Bill of Lading as supplied by the vessel s owner shall be proof of date of shipment. In the event of non-shipment under a contract providing for name steamer, or name steamer or substitute, the seller shall be considered to have fulfilled the shipping terms of the contract if he furnished proof of freight contract engagement and/or charter party therefore, and also proof that the goods were available in contract quantity and quality in time for shipment from seaport. In such event shipment shall be made by next available vessel. The period specified in the contract within which Bills of Lading must be dated shall be deemed to include an additional period of not to exceed eight days, when so desired by the

18 shipper, provided he gives his buyer notice of his intentions to claim additional days by telegram, telex or telecopier sent not later than the business day following the last day included in the originally stipulated period for shipment, such notice to be passed on by other sellers to their buyers respectively in due course after receipt. Such notice need not state the number of additional days claimed by the seller and the seller may ship at any time within eight additional days. The seller, however, shall make an allowance to the buyer, to be deducted from the invoice from the contract price, based on the number of days by which the originally stipulated period is exceeded, as follows: If exceeded by 1,2, 3 or 4 days, ½% of 1% of the gross C.I.F. or C. & F. price; if exceeded by 5 or 6 days, 1% of the gross C.I.F. or C. & F. price; if exceeded by 7 or 8 days, 1 ½% of the gross C.I.F. or C. & F. price. If, however, after having given notice to the buyer as above, the seller fails to make shipment within such eight days, then the contract shall be deemed to have called for shipment during the originally stipulated period plus eight days, at contract price less 1 ½% and any settlement for default shall be calculated on that basis. On F.O.B. vessel contracts, if the buyer fails to present a vessel ready for loading by the last day of the shipping period specified in the contract, such shipping period shall be deemed to include an additional period of not to exceed eight days, when so desired by the buyer. In such case, the seller must deliver the goods onto the buyer s vessel presented within such additional eight days. The buyer, however, shall pay to the seller a premium, to be added in the invoice to the contract price, based on the number of days by which the originally stipulated period is exceeded as follows: If exceeded by 1,2,3, or 4 days, ½% of 1% of the F.O.B. price; if exceeded by 5 or 6 days, 1% of the F.O.B. price; if exceeded by 7 or 8 days, 1 ½% of the F.O.B. price. If, however, after having expressed his intention to present his vessel for loading within such additional eight days, by

19 notice sent to the seller on or before the last day of the shipping period originally stipulated, the buyer fails to present his vessel for loading, then the contract shall be deemed to have called for shipment during the originally stipulated period plus eight days, at contract price plus 1 ½%, and any settlement for default shall be calculated on that basis. Rule 23. The term first half of any month shall be construed to mean from the first day to the fifteenth day both inclusive, and the term second half shall be construed to mean from the sixteenth day to the last day both inclusive. Rule 24. The term early (or beginning ), middle, and end, (or late ) in reference to any month shall be construed respectively to mean from the first day to the tenth day, from the eleventh day to the twentieth day, and from the twenty-first day to the last day, all inclusive. Rule 25. Should the time limit for notification of late shipment, as expressed in Rule 21, expire on Saturday, Sunday or holiday or on a day considered a non-business day either in the country of shipment or in the country of destination, the time limit for notification shall be extended to the first business day thereafter. This rule neither applies to nor modifies the contracted shipment/delivery periods. Rule 26. The seller shall advise the buyer without undue delay if shipment during the contract period is impossible, together with the reason therefore. If required, the seller must produce proof to justify his claim for cancellation or

20 extension. Rule 27. Edible tallow and Lard (Edible) unless specified otherwise, shall be shipped under constant government supervision or seal. Export shipments must conform to current government regulations and be documented accordingly, including certificate of ante and postmortem inspection and wholesomeness issued by the shipping country s government health authorities. Rule 28. Time of shipment, as stipulated in the contract, shall be of the essence. Return To Menu Default; Force Majeure Section Text Rule 29. Should either the seller or the buyer fail to fulfill the requirements of any term of the contract, the party so failing shall be considered in default. Should the seller be in default the buyer shall have the right to buy in the open market goods of the kind, quantity, quality and description specified in the defaulted contract. Such right, if exercised, shall be exercised not later than the close of the seventh calendar day after the buyer becomes aware of the default, provided that the buyer shall have given prior notice by telegram, telex or telecopier to the seller of his intention so to buy. The seller shall reimburse the buyer in the amount of any direct market loss.

21 Should the seller be dissatisfied with the price of the covering purchase or if the buyer s right to cover the defaulted contract is not exercised as provided in these rules then the matter of any damages shall be settled by arbitration. Damages shall be measured by the difference between the contract price and the fair market value of the contract commodity on the day the defaulted contract is covered, plus freight, insurance and other costs to the extent applicable. Should the buyer be in default the seller shall have the right to sell in the open market goods of the kind, quantity, quality and description specified in the defaulted contract. Such right, if exercised, shall be exercised not later than the close of the seventh calendar day after the seller becomes aware of the default, provided that the seller have given prior notice by telegram, telex or telecopier to the buyer of his intention so to sell. The buyer shall reimburse the seller in the amount of any direct market loss. Should the buyer be dissatisfied with the price of the covering sale or if the seller s right to cover the defaulted contract is not exercised as provided in these rules, then the matter of any damages shall be settled by arbitration. Damages shall be measured by the difference between the contract price and the fair market value of the contract commodity on the day the defaulted contract is covered, plus freight, insurance and other costs to the extent applicable. If for any reason sale of the defaulted merchandise should prove to be impossible, then the seller shall be fully reimbursed for the value of such merchandise plus any and all expenses incurred as a result of the buyer s default. Rule 30. Should either party to a contract suspend payments, admit bankruptcy or commit an act of insolvency, the other

22 party need not await maturity of the contract or any unfulfilled portion thereof in order to take appropriate action, and under these circumstances, after giving one business day s notice by telegram, telex or telecopier may resell or repurchase an appropriate quantity of the contract material and thereupon earn the right to recover any direct market loss incurred. Rule 31. Washout(s), closeout(s), or default(s), shall be of contract quantity without regard to tolerances specified in the contract or in these rules. If a minimum and maximum quantity be provided the mean thereof shall govern. Rule 31 A. Payment or settlement on washouts shall be effected within 15 calendar days after the last day of the contract period by telegraphic transfer of funds to the account designated by seller either in the contract or by telegram, telex or telecopier notice to buyer. Force Majeure Rule 32. In the event of war, hostilities or blockade preventing shipment during the contract period, the contract or any unfulfilled portion thereof shall be canceled. Should shipment be delayed by fire, strike, lockout, riot, revolution, prohibition to export or any executive or legislative act done by or on behalf of the government of the territory where the port or ports of shipment or destination named in the contract is or are situated or by any cause generally understood in the industry to constitute force majeure other than those reasons given in the preceding paragraph, then the time of shipment shall be extended by

23 thirty calendar days after the termination of the occasion preventing shipment, but not more than sixty days from the end of the shipping period set forth in the contract. Should shipment not be possible within those sixty days, the contract shall be cancelled with no liability on the part of either party to the other. Return To Menu Bills of Lading, Notices, Insurance and Miscellaneous Provisions Section Text Rule 33. When the seller is responsible for obtaining Bills of Lading, he shall deliver to the buyer such Bills of Lading issued in accordance with terms or conditions set forth in the tanker voyage charter party or, at the seller s option, in the berth term oil booking agreement, and either type of Bills of Lading shall be accepted by the buyer. An exact copy of such charter party or booking agreement shall be attached to the Bill of Lading if so requested by the Buyer. Rule 34. When the seller arranges for ocean freight space, he may make declaration to the buyer of the name of the vessel, its ports of loading and its expected departure dates; however, such declaration shall not be deemed to modify the terms of the contract. Rule 35. Upon demand at any time subsequent to the date of

24 shipment, the seller shall immediately notify the buyer of conditions of affreightment pertaining to and affecting loading and discharge and/or any other conditions not specified in the Bill of Lading. Rule 36. When the buyer arranges for ocean freight space, he shall notify the seller of anticipated loading dates at least two weeks in advance of said dates. Rule 37. The original seller shall send notice of shipment to the buyer or to the seller s representative not later than seven business days after the date of the Bill of Lading. This notice shall contain the name of the ship, the date of the Bill of Lading, the approximate quantity shipped and the loading port. Intermediate parties shall forward the notice within twenty-four (24) hours of receipt, subject to the provisions of Rule 24. Rule 37 A. All notices to be given in any manner permitted by these rules shall be given in writing by any means reasonably calculated to reach the party entitled to receive the notice within any applicable time limits. A written notice which does not require the creation of a tangible copy, such as a notice sent by , shall be valid notice under this rule. Each party in a chain of parties to the purchase and sale of a single shipment of goods who receives a notice in any manner permitted by this rule shall forward that notice (or give appropriate comparable notice) to his buyer or seller (as the case may be) by any means permitted by this rule. Any notice received by a party after 4:00 P.M. in the time zone of the address to which the notice was sent shall be conclusively presumed to have been received on the following business day. Notice from a broker given on behalf of its principal in any

25 manner permitted by this rule and any other applicable rule shall be valid under this contract as if given directly by the principal. Rule 38. Delays in furnishing notices or presenting documents as required herein shall not constitute default or be cause for rejection, however, any additional costs incurred by reason of such delays shall be paid by the contracting party responsible therefore. Rule 39. Each shipment is deemed to be a separate contract. The buyer shall not be entitled to reject tender of a shipment because of any default occurring in some other shipment on the same contract. Rule 40. On F.O.B. contracts, the seller shall pay all charges (including, but not limited to, wharfage, dockage, tollage, service, handling and stevedoring) incurred in placing the goods actually on board the conveyance designated and provided by or for the buyer on the date or within the fixed period, including expenses for pumping and providing steam when necessary. RESOLVED, that, effective October 1, 2010, Rule 39 of this Association s Rules for Animal Tallow and Grease (Export Contract) be, and it hereby is, amended to read as follows: On F.O.B. contracts, the seller shall pay all charges (including, but not limited to, wharfage, dockage, tollage, service, handling and stevedoring) incurred in placing the goods actually on board the conveyance designated and provided by or for the buyer on the date or within the fixed period,

26 including expenses for pumping and providing steam when necessary. Rule 41. On F.A.S. vessel contracts, the seller shall pay all charges incurred in placing the goods alongside vessel. However, the seller shall only be under obligation to deliver cargo to one location designated by vessel s agents. In the event the cargo subsequently has to be moved under ship s tackle such expenses, if any, are to be for the account of the Buyer. Rule 42. On C. & F. and C.I.F. contracts, the buyer shall receive the goods upon arrival at destination and shall arrange and pay for all subsequent movement and all subsequent handling of the goods or otherwise take delivery of the goods from the conveyance in accordance with the contract terms and conditions and also shall pay all costs of unloading. On C.I.F. delivered weight contracts, the seller shall not be responsible for claims for shortage of weight until the buyer has submitted all necessary documents for processing claims. Once such documents have been delivered to the seller, the seller shall be responsible for all claims against underwriters in respect of loss and/or difference in weight but the buyer shall take action as is necessary to protect the seller s interest at time of discharge. The buyer shall be responsible for claims against underwriters in respect of any damage, which has occurred during the voyage. RESOLVED, that, effective October 1, 2010, Rule 41 of this Association s Rules for Animal Tallow and Grease (Export Contract) be, and it hereby is, amended to read as follows: On C. & F. and C.I.F. contracts, the buyer shall receive the goods upon arrival at destination and shall arrange and pay for all subsequent movement and all subsequent handling of the goods or otherwise take delivery of the goods from the

27 conveyance in accordance with the contract terms and conditions and also shall pay all costs of unloading. Rule 43. The seller shall insure goods with first class underwriters against Institute war clauses and Institute strike, riots and civil commotion clauses. The seller s obligations for insurance coverage shall be limited to the terms and conditions in force and generally obtained in the United States of America on the date of the Bill of Lading or date of vessel s sailing from each loading port from which bill or Bills of Lading are issued, whichever are adopted by underwriters. Any war risk premium in excess of 1/2% of insured value shall be payable by the buyer at time of presentation of documents and shall be advised to the buyer not later than time of appropriation or not later than three days after the rate has been agreed with underwriters, whichever may last occur. All claims shall be paid through recognized claim settling agents. Rule 44. On C.I.F. contracts providing for weights to be determined at time and port of discharge, the seller shall also cover the marine insurance with first class underwriters against Institute cargo clauses (with average), average payable irrespective of percentage, including the risk of contamination on each tank or on the whole. The insurance is to be covered at 5% over the price of the contract, any excess over 5% to be for the seller s benefit and at the seller s expense. Rule 45. On C.I.F. contracts providing for weights final at time and place of shipment, the seller shall also cover the

28 marine insurance with first class underwriters against institute cargo clauses (all risks), on each tank or on the whole. The insurance is to be covered at 5% over the price of the contract, any excess over 5% to be for the buyer s benefit and at the buyer s expense. Rule 46. The seller shall furnish the buyer with original insurance policies or negotiable insurance certificates covering the goods shipped. All claims shall be payable in United States currency in the United States of America. Rule 47. Documents shall be presented to the buyer at the stipulated time at the buyer s usual place of business for payments in accordance with the seller s instructions. Bank collection charges shall be for the seller s account but any extra costs incurred in meeting the buyer s particular wishes shall be for the buyer s account. Rule 48. In the event of any inconsistencies between the letter(s) of credit against which partial or full payment is to be made and the terms and conditions of the contract and/or the provisions of these rules, the contract and/or rules shall govern. In the event of any inconsistencies between the contract and these rules, the terms of the contract shall govern. Rule 49. When the seller, at the request of the buyer, performs any services in connection with the contract, beyond those required by the terms thereof, he shall be deemed to act as the agent of the buyer in respect to the performance of such services, and his responsibility to the buyer shall be

29 determined by the usual obligations of an agent to a principal. Return To Menu Survey, Sampling, Weighing and Analysis Section Text Rule 50. Survey, sampling and weighing shall be performed by independent professional surveyors, samplers and weighers. An independent professional surveyor, sampler or weigher is one who: (A) Has no direct or indirect relationship (other than that developed in the normal course of business) to any person, firm or corporation which engages him; and (B) Offers his professional services to all who may require them and in fact regularly performs those services for several clients. The buyer shall be entitled to have loading, weighing and sampling supervised for his account, and if exercising this option shall notify the seller accordingly prior to commencement of shipping period, in which case seller shall give the buyer s surveyor the vessel s name and approximate loading date. When sampling is supervised by the buyer s representative, analysis shall be carried out on the jointly sealed samples.

30 On bulk shipments, Bill of Lading weights shall not be established by calibration of vessel s tank(s). On delivered weight contracts the buyer shall pay the cost of determining the weight by an independent professional weigher, but the seller shall be entitled to have weighing supervised for his account. Rule 51. Survey 1. Inspection of Vessel s Tanks (1) Tank and heating coils, if present, must be dry and free of previous cargo, loose scale or rust. (2) Tanks must withstand a 3 psi. 30-minute air test. Coils, if any, must be tested under a minimum of 80 psi steam pressure. If there are double bottoms beneath the tanks, they must be tested, using a head of fuel oil or water, equivalent to the height of the tank. In the event the vessel is unable to conduct these tests, a certificate guaranteeing tightness must be given to the surveyor by the Master prior to any cargo being loaded. (3) Tightness and cleanliness of pipelines, valves and pumps are the responsibility of the vessel. Rule 52. Determination of Weights 1. Scales

31 Scales, when used, must have a certificate or seal of approval issued by a recognized authority, dated not more than one (1) year prior to the date of weighing. Weighing must be performed by a certified weigh master on a scale that has been balanced immediately prior to weighing. 1. Tank Cars and Tank Wagons (1) When weights are to be determined for export purposes, all tank cars and tank wagons will be weighed heavy first and, after unloading, weighed light, over the same scale, at the point of unloading. In the case of tank cars and tank wagons, no double or split weighing shall be permitted. (2) During weighing, all tank cars must be weighed free, uncoupled, and centered on the scale. 1. Drum Shipments (1) If the entire shipment is in new or reconditioned drums, which are uniform size and gauge, an average tare weight must be established by weighing not less than 10% of the empty drums. (2) If various types of new, reconditioned or used drums are used, a tare weight must be established for each individual drum. (3) The weight certificate shall show type and condition of drums. (4) Scales to be used for drum weighing must be checked periodically during weighing of a shipment with test weights in the same weight range as the full drums. (5) The weights must be marked on the drums at the time of weighing, using a fast-color paint or marking pen.

32 1. Storage Tanks (1) All storage tanks must be calibrated by a recognized official calibrating company. The certified gauge charts must show a tank height from a specified gauge point at all openings in a tank where gauges are to be taken. Calibration charts must be available to the surveyor at all times. (2) A storage tank is to be re-calibrated or an acceptable check is to be made on a calibration as detailed in ASTM-1220, paragraph 16, whenever a tank may have shown signs of settlement, or structural change made, including the installation or removal of heating coils, etc. 1. Storage Tank Gauging Procedure (1) Standard gauging tapes must be used and checked by the surveyor for accuracy. (2) All gauging must be done jointly by the surveyor and a representative of the warehouse, terminal or plant, each using his own equipment. Deviations between gaugers must not be more than 1/8 <= and both gauges averaged. (3) In order to minimize uneven tank bottoms multiple gauges should be taken. The multiple gauge ports must be clearly designated on the official calibration charts, and all used consistently. All gauges should be totaled and divided by the number of points at which gauges were secured to determine the innage measurement of the tank. (4) All gauge records must show gauge height, innage and outage. If there is any difference between the gauge heights shown on the calibration chart and that actually obtained, the difference must be noted and all parties must be advised. (5) Temperatures will be taken using a calibrated cup thermometer that can be accurately read to 1 F. Temperatures must be obtained from at least two gauge holes on tanks having

33 four, and from at least four gauge holes on tanks having eight, said temperatures being taken from opposite sides of the tank. (6) Temperatures must be taken three feet from the bottom, at the middle, and three feet below the surface of the oil. If there is a wide variation of temperatures, intermediate readings must be taken. 1. Specific Gravity Determination (1) A standardized pycnometer must be used for determination of Specific Gravities at the temperature of the oil in the storage tank, according to AOCS method cc-10a25 on a sample of unfiltered oil. (2) Specific Gravities may be determined at temperatures over temperatures (T/T), temperature over 77 F. (T/77 ), or temperature over 60 F (T/60 F). The Specific Gravities are then converted to pounds per gallon using the standard pounds per gallon of water applicable to each temperature. 1. Shore Pipelines and Pumps (1) The suitability of all equipment for the loading of the vessel is the responsibility of the terminal, or plant or barge company; however, the surveyor must also inspect all equipment as far as it is practicable. (2) All take-offs from the line to be used for the loading operation must be blanked or sealed closed. (3) Loading lines must be pigged or blown with the air in the presence of the surveyor before and after loading. Rule 53. Sampling 1. Storage Tanks

34 (1) If the oil is uniform, samples of equal size must be obtained from the storage tank at one-foot levels, and composited. (2) If the oil is not uniform, a composite representative proportionate sample shall be drawn. 1. Line Bleeder A 3/8 or less bleeder line is 3/8 or less standard pipe with a slight downward slope, located in a vertical section of the pumping line through which the product is continuously flowing upward to the tank being sampled. The sample line should be located as far away from elbows or tees as possible, should penetrate to the center of the pumping line, should be cut beveled at the end looking downward and should discharge into a container or containers of sufficient size to enable the sample collected within, from which the required number of samples is to be drawn, to be thoroughly agitated. Samples are to be drawn from the start to the finish of pumping. Line blow should not be part of the sample. The sample line should not have a petcock. 1. Vessel s Tanks (1) Immediately after loading, a representative sample shall be drawn from the vessel s entire depth of the material, using accepted sampling techniques as shown in AOCS method C-147. (2) The official sample for analysis shall be based on a weighted composite sample of the material in all the tanks used for the specific shipment. (3) If more than one tank is used for the carriage of the oil and an analysis is made of each tank, the quality of the shipment shall be based on the analysis of the composite proportionate sample only, and not on the analysis of any individual tanks.

35 (4) Samplers to be used must be of the Bacon Bomb, or Curtis and Tompkins type. (5) When more than one (1) shipper supplies material for a commingled shipment, a representative sample of each shipper s material must be secured prior to commingling. (6) Two sealed representative samples must be drawn from the vessel s tank after loading, and must be left on board the ship, one for the consignee and one for the vessel. If more than one surveyor is in attendance, all samples must be jointly sealed. A receipt for the samples must be obtained from a ship s officer. These samples shall be used for contamination purposes only. (7) Upon completion of loading, the surveyor shall record in the presence of a ship s officer, temperatures and ullages of the contents of each tank loaded, which information together with the ship s draft and list is to be shown in the Survey Report of loading. (8) Consideration should be given to the fact that in some instances the receivers stipulate in their contract that they must be able to draw a bottom sample from the vessel tanks at the port of discharge. When this is the case, the shipper shall inform the charterer of this requirement when space is being booked. 1. Sampling Other than From Vessel s Tanks When samples for analysis and/or contamination purposes cannot be withdrawn from ship s tank or tanks due to obstruction or design of the tank which prevent the securing of a representative sample, then representative pipeline bleeder samples, tank car, tank wagons and/or barges shall be officially sampled in accordance with AOCS official method C1-4, except for bleeder sample where Rule 52-B shall apply. 1. General Observation

36 (1) The surveyor must include in his Report any unusual conditions existing during loading operations. Rule 54. Analysis Analysis shall be made by independent Chemists in accordance with methods approved by the American Oil Chemists Society as of the date of the contract. Return To Menu Shipment in Drums and Other Containers Section Text Rule 55. These Rules and the Uniform Export Contract for Animal Tallow & Grease shall govern trading in animal tallow and grease for shipment in drums and other containers except in cases where these Rules are clearly inapplicable to such shipments. Return To Menu