Niop Trading Rules

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Niop Trading Rules NIOP TRADING RULES Effective July 2013 Minor changes and corrections (approved by the NIOP Technical Committee) have been included as of July 29, 2013 APPLICATION OF RULES INCORPORATION OF THESE RULES OR ANY PORTION THEREOF IS NOT MANDATORY BUT IS OPTIONAL BETWEEN PARTIES TO CONTRACTS. Published by the National Institute of Oilseed Products 750 National Press Building, 529 14th St NW Washington, D.C. 20045 TEL: (202) 591-2438 FAX: (202) 591-2445 e-mail: [email protected] Internet: www.niop.org ©2013 by the National Institute of Oilseed Products NIOP TRADING RULES TABLE OF CONTENTS CHAPTER 1 - TYPES OF SALES RULE 1.1 TRADE PRACTICE 1 -1 1.2 PLACE OF CONTRACT 1 -1 1.3 C.I.F. (COST, INSURANCE AND FREIGHT) 1 -1 LISTING OF DOCUMENTS 1 -2 1.4 C.& F. (COST AND FREIGHT) 1 -3 1.5 F.O.B. VESSEL (FREE ON BOARD VESSEL) 1 -3 1.6 F.A.S. VESSEL (FREE ALONGSIDE) -NAMED PORT OF SHIPMENT 1 -5 1.7 EX DOCK (NAMED PORT OF IMPORTATION) 1 -6 1.8 EX WAREHOUSE 1 -7 1.9 MISCELLANEOUS TYPES OF SALES 1 -7 1.10 VESSEL CLASSIFICATION 1 -7 1.11 PUBLIC HEALTH SECURITY AND BIOTERRORISM PREPAREDNESS 1 -7 CHAPTER 2 - SHIPMENT RULE 2.1 TIME 2 -1 2.2 DAYS OR HOURS 2 -1 2.3 NOTICE 2 -1 2.4 TENDERS 2 -1 2.5 EXTENSION OF SHIPMENT 2 -1 2.6 PROOF OF ORIGIN 2 -3 2.7 TRANSHIPMENT 2 -3 2.8 SHIPPING INSTRUCTIONS 2 -3 2.9 VESSEL NOMINATION AND DECLARATION OF DESTINATION 2 -3 2.10 BILL OF LADING-EVIDENCE OF DATE OF SHIPMENT 2 -3 CHAPTER 3 - TANK CARS, TRUCKS, BARGES AND CONTAINERS RULE 3.1 DATE OF SHIPMENT 3 -1 3.2 TIME OF SHIPMENT 3 -1 3.3 SPREAD (SCATTERED) DELIVERIES OF SHIPMENTS 3 -1 3.4 F.O.B. CARS (TRUCKS, ETC.) 3 -1 3.5 F.O.B. BASIS A NAMED POINT 3 -1 3.6 F.O.B. PLANT OR MILL 3 -2 3.7 SHIPPING INSTRUCTIONS - TANK CARS 3 -2 3.8 BUYER MUST FURNISH CAR NUMBERS 3 -3 3.9 SELLER MUST FURNISH CAR/TRUCK NUMBERS 3 -3 3.10 SUITABILITY OF EQUIPMENT 3 -4 3.11 MINIMUM CARLOAD 3 -4 3.12 INSPECTION OF TANK CARS 3 -4 3.13 LOADING TANK CARS TO CAPACITY 3 -4 3.14 LOADING BUYER'S CARS 3 -4 3.15 REPLACING LOST OR DAMAGED TANK CARS 3 -4 3.16 ROUTING OF TANK CARS 3 -4 3.17 LIMITATION OF DESTINATION 3 -4 3.18 USE OF TANK CARS 3 -5 3.19 RETURN OF EMPTY TANK CARS 3 -5 3.20 DETENTION CHARGES FOR TANK CARS 3 -5 3.21 DEMURRAGE 3 -5 3.22 WEIGHT DETERMINATION 3 -5 3.23 UNIT OF SALE 3 -6 3.24 SETTLEMENT-OTHER THAN OCEAN GOING VESSELS 3 -6 CHAPTER 4 - PERFORMANCE OF QUANTITY SPECIFICATIONS RULE 4.1 BUYER'S OBLIGATION TO ACCEPT GOODS 4 -1 4.2 LOSS OF SHIPMENT 4 -1 4.3 CIRCLES OR WASHOUTS 4 -1 4.4 WEIGHT DETERMINATION AT TIME OF DISCHARGE 4 -1 For Bulk Vegetable Oils Only 4.5 SETTLEMENT 4-10 "Seeds, Nuts & Meals" "Bulk Vegetable Oils" "Finalization" CHAPTER 5 - QUALITY SPECIFICATIONS/SURVEY PROCEDURES/PRIOR CARGOES RULE 5.1 LANDED VERSUS SHIPPED QUALITY 5 -1 5.2 BUYER'S OBLIGATION TO ACCEPT DELIVERY 5 -1 5.3 REJECTION OF DELIVERY 5 -1 5.4 RESPONSIBILITY FOR ADAPTABILITY 5 -1 5.5 GOVERNMENT TESTS 5 -1 5.6 BETTER THAN AVERAGE QUALITY 5 -1 5.7 ASCERTAINMENT OF QUALITY 5 -1 5.8 SAMPLING AND ANALYSIS 5 -2 5.9 QUALITY DETERMINATION AT TIME OF DISCHARGE 5 -2 For Bulk Vegetable Oils Only 5.10 SURVEYING OF INBOUND/OUTBOUND PARCELS 5 -3 OF VEGETABLE OILS MASTER'S/OWNER'S CERTIFICATE - EXHIBIT A 5 -5 ODOR FREE CERTIFICATE - EXHIBIT B 5 -6 NIOP HEATING INSTRUCTIONS - EXHIBIT C 5 -7 5.11 VESSEL PUMPING SYSTEM STANDARDS 5-10 5.12 PRIOR CARGO LISTINGS 5-12 5.13 STORAGE AND EX TANK SALES 5-17 GLOSSARY OF CHEMICAL CARGOES 5-18 CHAPTER 6 - VEGETABLE OIL QUALITY SPECIFICATIONS RULE 6.1 ADULTERATION 6 -1 6.2 ALLOWANCE FOR MOISTURE AND IMPURITIES 6 -1 6.3 ALLOWANCE FOR FREE FATTY ACIDS 6 -1 6.4 COCONUT OIL - CRUDE 6 -1 6.5 COCHIN TYPE COCONUT OIL 6 -1 6.6 ACIDULATED COCONUT OIL SOAPSTOCK 6 -1 6.7 PALM OIL - CRUDE 6 -2 6.8 NEUTRALIZED PALM OIL, UNBLEACHED 6 -3 6.9 PALM KERNEL OIL - CRUDE 6 -3 6.10 RBD PALM KERNEL OIL 6 -3 6.11 SAFFLOWER OIL 6 -4 6.12 OLEIC SAFFLOWER OIL 6 -8 6.13 HIGH OLEIC SUNFLOWER OIL 6 -9 6.14 CORN OIL 6 -9 6.15 SOYBEAN OIL 6-11 6.16 DOMESTIC COTTONSEED OIL AND PEANUT OIL 6-11 6.17 LOW ERUCIC ACID RAPESEED OIL (LEAR/CANOLA) 6-11 6.18 TUNG OIL - IMPORTED AND DOMESTIC 6-12 6.19 CRUDE MID OLEIC SUNFLOWER OIL (NUSUN) 6-12 6.20 REFINED BLEACH DEODORIZED COCNUT OIL 6-12 CHAPTER 7 - SEEDS AND NUTS RULE 7.1 DESCRIPTION AND GRADE 7 -1 7.2 PENALTY FOR QUALITY VARIATIONS 7 -6 7.3 PRICE IN BAGS 7 -6 7.4 F.O.B. VESSEL 7 -7 7.5 EX SPOUT 7 -7 7.6 EX WAREHOUSE 7 -7 7.7 FUMIGATION 7 -8 CHAPTER 8 - MEALS RULE 8.1 SAFFLOWER MEAL 8 -1 8.1.1 MEAL C. & F. SALES 8 -1 8.1.2 MEAL EX SPOUT SALES 8 -1 8.1.3 MEAL DOMESTIC SALES 8 -1 8.2 CANOLA MEAL 8 -1 CHAPTER 9 - PAYMENT / LETTERS OF CREDIT / INSURANCE AND OTHER FINANCIAL OBLIGATIONS RULE 9.1 TERMS OF PAYMENT 9 -1 9.2 EFFECT OF MODE OR TIME OF PAYMENT 9 -1 9.3 PAYMENT AGAINST DELIVERY ORDER 9 -1 9.4 PRESENTATION OF DOCUMENTS 9 -1 9.5 LETTER OF CREDIT 9 -1 9.5.1 EXTENSION OF LETTER OF CREDIT 9 -2 9.6 INSURANCE 9 -2 9.6.1 ALL COMMODITIES 9 -2 9.6.2 VEGETABLE OILS 9 -2 9.6.3 SEEDS, NUTS AND MEALS 9 -3 9.7 CHANGES IN TRANSPORTATION RATES AND TAXES 9 -3 9.8 TARIFF AND CUSTOMS CLASSIFICATION (U.S.A.) 9 -3 9.9 DIVERSION AND OTHER ACCOMMODATIONS 9 -3 9.10 EXPORT AND IMPORT LICENSES 9 -4 9.11 EXPENSES PAID BY PARTY AT FAULT 9 -4 CHAPTER 10 - FORCE MAJEURE / DEFAULT / BANKRUPTCY AND INSOLVENCY RULE 10.1 CASUALTY CLAUSE 10-1 10.1.1 IN GENERAL 10-1 10.1.2 LOSS OR DELAY OF VESSEL 10-1 10.1.3 SETTLEMENT AFTER TERMINATION OF CONTRACT EXTENSION 10-2 10.1.4 PROOF OF CONTINGENCY 10-2 10.2 CASUALTY CLAUSE - VEGETABLE OILS 10-2 10.3 PROOF OF CASUALTY - VEGETABLE OILS 10-2 10.4 DEFAULT 10-2 10.5 BANKRUPTCY OR INSOLVENCY 10-3 CHAPTER 11 - ARBITRATION OF DISPUTES RULE 11.1 ARBITRATION IS COMPULSORY 11-1 CHEMISTS, SAMPLERS AND WEIGHERS C -1 METHODS OF ANALYSIS M-1 OFFICIAL DEFINITIONS D -1 CONVERSION FORMULAS D -2 TEMPERATURE CONVERSION CHART D -3 GUIDELINES G-1 GENERAL SPECIFICATIONS - VEGETABLE OILS G-2 GUIDELINES FOR STORAGE & TRANSPORT OF EDIBLE OILS & FATS IN BULK G-5 NIOP HEATING RECOMMENDATIONS G-11 BULK OVER THE ROAD SAFETY AND SECURITY GUIDELINES 1 1 TYPES OF SALES (SEE CHAPTER 3 FOR TANK CARS, TRUCKS, BARGES, CONTAINERS) RULE 1.1 - TRADE PRACTICE Matters not provided for in the Rules shall be governed by the custom and usage of the trade. RULE 1.2 - PLACE OF CONTRACT A contract is deemed to have been made in and to be governed by the law of the jurisdiction of the forum where arbitration is to be had pursuant to these Rules - whether or not arbitration actually takes place. RULE 1.3 - C.I.F. (COST, INSURANCE, FREIGHT) Under a contract for a C.I.F. sale, 1.3.1 - SELLER MUST: (a) Obtain a carrier suitable for the carriage of the goods, deliver and load goods on board the carrier at his own expense, and pay all expenses at place of loading. (b) Obtain in the case of transport of bulk vegetable oils a signed Master's/Owner's Certificate from the Captain or the First Mate or other responsible agent of the vessel owner/operator/charterer that the tanks, holds, and/or spaces in which the cargo is carried are fit and safe for its carriage and preservation and that the tank receiving the vegetable oil has not contained any leaded petroleum, other leaded product, on at least the last three (3) prior cargoes carried. Ethylene dichloride and Styrene monomer shall not be carried on at least the three (3) prior cargoes in organically coated tanks, or on at lease the last prior cargo in stainless steel and inorganically coated tanks. Seller must obtain Master's/Owner's Certificate per Rule 5.10, Exhibit A, page 54. (c) Pay cost of freight to named contract destination and pay expenses for discharge to end of ship's pump lines and/or tackle. (d) Arrange and pay cost of Marine Insurance (warehouse to warehouse) and War and Strike Insurance (usual underwriters institute clauses) for C.I.F. value of the goods (based on shipped weights) plus 5%. Insurance policies to be issued with claims payable in U.S. dollars, from dollar funds available in the U.S.A. (For insurance see Rule 9.6) (e) Be responsible for risk of loss or damage to the goods and for all expenses until the goods are safely on board the carrier and until he obtains a clean on board bill of lading.
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