INTERNATIONAL CONTRACT No. 6 - HIDES & SKINS
Operative from 1st August 1998 Printed June 1999
Official Contract Form (Copyright)
Drawn up by the International Council of Hides, Skins & Leather Traders’ Associations and the International Council of Tanners
Published by the International Council of Hides, Skins and Leather Traders’ Associations.
INTERNATIONAL CONTRACT No. 6 - HIDES & SKINS
This Contract is applicable to all types of hides and skins and is to be used with the appropriate Annexe.
Note: When used for C.I.F. transactions Clauses 6 and 17.3 are to be regarded as deleted. When used for (CFR) (C & F) transactions Clauses 6, 11 and 17.3 and any references to Insurance in Clause 12 are to
be regarded as deleted.When used for F.O.B. transactions Clauses 11, 12.8 and any references to Insurance in Clause 12 are to be regarded as deleted.
DATE OF CONTRACT:
1. PARTICULARS We the above-mentioned seller, and we, the above-mentioned buyer, have today contracted a sale/purchase on the terms and conditions of this contract and
of Annexe .....................(A, B, C or D .....................State whichever is applicable).
State here: Terms (insert CIF, CFR (C&F), FOB, Carriage Paid to (CPT), Carriage and Insurance Paid To (CIP), Delivered Ex Ship, (DES), Delivery
Ex Quay (DEQ), Delivered Duty Unpaid, (DDU), Delivered Duty Paid, (DDP), Ex Works (EXW) Etc.
State here; Quantity, Mark/Description, Quality/Selection/Chemical Analysis, Weight/Area/Substance, Price, Weight and Measurement Terms, Period of Shipment/Place of Shipment/Place of
Loading/Place of Acceptance, Afloat, Port of Destination/Place of Delivery, Place of Weighting, Institute for Check Measurement. Insurance, Payment, Franchise, Applicable Health, Safety
and Environmental Requirements. Incoterms 1990 to apply - Any other particulars.
PLACE OF INSPECTION:
PLACE OF ARBITRATION:
PLACE OF APPEAL:
STATE ARBITRATION AUTHORITY:
16. MEASUREMENT 16.1 In the case of goods sold by area, unless otherwise specified, buyer to be entitled at his expense, to have the area checked by an institution from the list agreed between The
International Council of Tanners and The International Council of Hides Skins and Leather Traders Associations and lodged on 1st January each year of this contract at the
headquarters of the two Councils. Drawing of samples may be done under the supervision of the sellers representative if so required. The area to be ascertained by suitably
calibrated pinwheel machine, areameter, electronic measuring machine or other agreed means.
Goods to be conditioned as specified in the appropriate annexe. Measurement of goods by the pinwheel machine shall be carried out as specified in the Code of Practice for the
Measurement of Leather lodged at the offices of both the International Council of Tanners and The International Council of Hides Skins and Leather Traders Associations. As an
alternative seller and buyer by agreement, may specify in Clause 1, use of ISO 11646 1993 Leather, Measurement of area.
16.2 No adjustment to be made for differences in measurement of area equal to or less than the tolerance specified in the appropriate Annexe, but in the case of a greater discrepancy
such adjustment to be made on the actual discrepancy.
17. INSPECTION 17.1 If inspection of the goods at the port of destination/place of delivery is not possible, buyer and seller to agree where inspection shall take place.
17.2 If inspection is prevented by force majeure, the buyer retains his rights.
17.3 (F.O.B. only). Unless it is agreed that the goods must be approved by buyer before shipment, the appropriate place for the inspection of the goods by buyer, unless otherwise
agreed, to be port of destination/place of delivery declared by the buyer.
18. CLAIMS 18.1 Quality, description and/or condition of goods to be considered as approved unless final buyer gives notice of a claim promptly after goods are available for inspection.
18.2 Where the place of inspection is other than the port of destination, such notice to be given within seven working days of arrival (intermediaries shall have an additional four days)
and provided that 80% of the shipment in original packing remains available at place of inspection.
18.3 Where place of inspection is the port of destination, such notice to be given within nine working days, (the intermediaries shall have an additional four days), provided that the
goods have not been removed from public wharf, warehouse and/or docks, unless by arrangement a sample has been drawn by buyer’s and seller’s representatives and kept at the
port of destination/place of delivery for arbitration purposes.
18.4 Notice of a claim for chemical specification and/or measurement to be given within the time specified in the appropriate Annexe.
18.5 A dispute on account of quality, description, quantity and/or condition may in no case be the motive for refusal of payment. Buyer to accept the documents provided they are
in good order without prejudice to his rights.
18.6 Goods which have been placed into work or further manufactured, cannot be returned by buyer.
18.7 Seller’s to respond to claims promptly but within five working days.
19. REJECTION 19.1 In the event of an allowance for inferiority of quality for which seller is liable and which amounts to or exceeds ten per cent of the contract price buyer may either take the goods
with the allowance or reject them without prejudice to his rights. This clause does not prevent arbitrators awarding rejection if they consider the delivery is not a fair tender or if
they deem that due to the particular circumstances of the case that it would be unreasonable for the buyer to keep them.
19.2 If the goods are rejected, buyer shall not be obliged to accept a replacement.
20. DEFAULT 20.1 In the case of default the defaulter to make good the loss.
20.2 In the case of default by seller - The loss to be the difference between the contract price and the market value of the goods on the seventh day after the date of default is made,
unless the Arbitrators decide that the above price difference is not sufficient to cover the actual damage incurred by the buyer.
20.3 In the case of default by buyer - seller, at his own and absolute discretion, has liberty to take any action he may deem fit in the interest of the goods, at buyer’s risk and expense
and he shall be entitled to close the contract with damages, if any, within seven days after the date of default. Damages to be limited in accordance with clause 20.2.
20.4 If it is impossible to ascertain the market value, comparison to be made with goods of similar quality.
20.5 Failure by the buyer to make payments according to the terms specified, and/or to give shipping instructions, and/or to accept delivery at the times agreed, shall entitle the seller
to cancel any balance remaining undelivered against this contract, or any other contract with the same buyer, without prejudice to the rights of either party to claim default.
21. NOTICE OF 21.1 A party claiming force majeure to give notice as soon as possible and, if required, to furnish satisfactory evidence of force majeure.
22. BANKRUPTCY 22.1 If before fulfilment of this contract either party shall suspend payment, commit an act of bankruptcy, notify any of his creditors that he is unable to meet his debts or that he has
suspended payment or that he is about to suspend payment of these debts, convene, call or hold a meeting either of his creditors or to pass a resolution to go into liquidation
(except for voluntary winding-up of a solvent company) or shall apply for an official moratorium, have a petition presented for winding-up or shall have a receiver appointed,
he shall be deemed to be and shall be treated as being in default.
22.2 The other party, by giving notice, notwithstanding any bankruptcy or liquidation, shall be entitled to close out the contract against him as if he were in default by re-selling or
re-buying as the case may be and such re-sale or re-purchase shall be the closing out price.
22.3 Should either party be dissatisfied by such re-sale or re-purchase price, the matter shall be referred to arbitration. Where no such re-sale or re-purchase takes place, the
closing-out price shall be the market price of the goods on the day following that on which one of the aforementioned circumstances arises. Failing agreement the market price
shall be fixed by arbitration.
23. ARBITRATION AND 23.1 Any dispute arising out of this contract to be settled by private treaty, if possible, failing which it shall be referred to arbitration according to the International custom of the trade and
APPEAL subject to the rules for arbitration and appeal obtaining in the places specified for that purpose in Clause 1.
23.2 No party may begin an action in the Courts under this contract until the dispute has been determined by arbitration as hereby provided (except as hereinafter mentioned) and
then only for the purpose of enforcing the award.
23.3 Payments under awards are due immediately and to be settled within fourteen days unless an appeal be lodged or arbitrators/appeal board extend this period.
23.4 If the country of the place of arbitration has no machinery for arbitration, the dispute to be dealt with in accordance with Clause 24.
23.5 If any party to an arbitration or appeal held as a result of a dispute on this contract neglects or refuses to carry out or abide by the award of arbitrators or umpire or board of
appeal made following the dispute, the Association, whether representing buyers or sellers of goods in the country in which the award is issued may, if allowed by the law of that
country, notify the International Council of Hides, Skins and Leather Traders’ Associations and the International Council of Tanners who in turn may notify their member
associations of the failure to implement the award. The reporting Association and any member association of the International Council of Hides, Skins and Leather Traders’
Associations or the International Council of Tanners, If allowed by the law of the country concerned, may post the information on their notice boards and/or inform their
members to this effect in any way thought fit. The parties to this contract hereby consent to the action aforementioned.
24. PROPER LAW OF 24.1 For the purpose of arbitration, appeal and any other legal proceedings and for the purpose of establishing formal and essential validity, this contract shall be deemed to have
THE CONTRACT been made in the country of the place of arbitration and to be performed there so that the law of such country shall be the proper law of the contract, any correspondence or
reference to the offer, the acceptance, the place of payment, the place of appeal or otherwise notwithstanding.
24.2 Any party to this contract residing or carrying on business in a country other than the country of the place of arbitration shall, for the purpose of legal proceedings, be
considered as ordinarily resident or carrying on business at the consulate of the country of his residence or place of business situated in or nearest to the place of arbitration.
24.3 The service of legal proceedings upon a party shall be deemed good service (any rule of law or equity to the contrary notwithstanding) if notice of such proceedings is left with
the said consulate and if a copy of such notice is posted in a registered cover to the address of the party involved.
24.4 The United Nations Convention on contracts for the International Sale of Goods (Vienna 1980) shall apply to this Contract.
25. TEXT 25.1 The English text is the definitive text.
ANNEXE A-RAW HIDES AND SKINS
A1. WEIGHING AND A1.1 Should gross weighing take place more than eight days after the last day of discharge from steamer or more than twelve days after the last day of discharge from the steamer
TARING for container shipments where delivery is to a place other than the port of discharge, or in the case of F.O.B. shipments, more than six weeks after bill of lading date, an adjustment
of landing weight to be made by adding in the case of:
DRY 0.05% for each day in the first week
0.025% for each additional day;
DRY SALTED 0.10% for each day in the first week
0.05% for each additional day;
WET SALTED 0.20% for each day in the first week
0.10% for each additional day;
But seller’s invoice weights final if goods are not weighed and tared within twenty-nine days after final date of landing. It is understood that shipment, stowage, discharge and
weighing took place under suitable conditions and the voyage was of a duration approximately as scheduled at the time of shipment.
A1.2 If the voyage is prolonged by more than ten days beyond the known schedule at time of shipment, then the number of days in excess of ten shall be included in any calculation
for adjustment under Clause A1.1
A1.3 If raw hides are dispatched from interior point to a place of shipment/acceptance and are delayed due to force majeure before shipment, the weight adjustments for delays as in
Clause A1.1 to apply also for the period for force majeure.
A1.4 (F.O.B. only when buyer books freight). If shipment of raw hides is delayed due to late arrival of steamer or the hides are shut out of the steamer, in cases where the hides have
already been delivered to the port of shipment/place of acceptance, the weight adjustments stated above to apply to the excess delay over eight days.
A1.5 If landed weight indicates a shrinkage exceeding the contract franchise by 50% or more, or if the landed tare exceeds the shipping tare by 25% or more, the hides should remain
intact at place of weighing or place of final destination, in the latter case the late weighing clause to apply. Buyer should give notice to seller promptly in order that seller may have
the opportunity for the parcel to be re-weighed, such re-weighing to be carried out promptly at seller’s cost.
A1.6 If wetsalted hides and skins are tared, not less than ten per cent to be re-weighed, then biffed once on each side against a lattice table or other clean surface, and re-weighed. No
sweeping of the hides and skins allowed except to remove encrusted salt. Landing/Arrival tares to be used for final settlement. Where mechanical de-salting is used, then an extra
one percent franchise to apply.
A1.7 On dry and dry-salted hides and skins tare to be allowed for packing and any surplus extraneous matter.
A2. CLAIMS A2.1 Where goods are sold on a weight basis no claim to be made for differences in count of less than 1% but, if the discrepancy is greater, then an adjustment to be made based on the
actual discrepancy, provided all other relevant conditions of the contract have been fulfilled. The final count to be certified by an officially licensed body.
2. DEFINITIONS 2.1 The plural to include the singular.
2.2 The word ‘goods’ as used in this contract means that which is described in Clause 1.
2.3 Hides mean skins of bovine, equine and other large animals, including calf skins.
2.4 Days or months mean calendar days or months.
2.5 The first day for shipment to be the day following the date of this contract unless otherwise stated.
2.6 All references to steamer or steamers in this contract shall include steamer/s or, where applicable, any other principal means of conveyance by water, air and /or land. when
steamer refers to a sea-going vessel, steamer to mean any vessel classified Lloyd’s 100A1 (or the equivalent of other Registers) which issues the bill of lading and is suitable for
the stowage and transportation of goods.
2.7 Bill of lading to mean steamer bill of lading or, where other means of shipment are used, the applicable equivalent shipping documents.
2.8 All trade terms (such as FOB, CIF Etc) shall be interpreted according to Incoterms 1990 (and possible subsequent revisions, if any) of the International Chamber of Commerce.
2.9 One kilogram equals 2,2046 lbs English.
One square metre equals 10,7643 square feet English.
One square foot equals 12 inches x 12 inches.
One square foot equals 30.48 cm x 30.48 cms.
2.10 Force majeure to be defined as Acts of God, strikes, lock-outs, labour disturbances, trade disputes, wars, government actions, riots, civil commotions, fires, floods epidemics.
2.11 Notice is properly given by telephone (provided it is confirmed promptly by letter) or by despatch of telegram, telex, telefax or electronic transmission.
3. QUALITY 3.1 Goods to be of Fair Average Quality of the mark and /or description. Fair Average Quality means that the goods must conform to the quality standards that are normal for the
products of the origin indicated in the contract. For any inferiority of quality an allowance to be made.
3.2 Unless otherwise stated in Clause 1, Seller does not guarantee the goods to be fit for the purpose for which they may be required or used, neither is he responsible for any defects
appearing after the goods have been put into work, nor for any damage arising in the course of manufacture or otherwise from their use.
4. QUANTITY 4.1 To be within five per cent more or less, but in case of default this margin not to be taken into account for assessment of damages.
5. MARKING 5.1 Goods sold to be shipped sorted into different grades, to be packed and marked separately and each package to be clearly marked.
5.2 Goods sold by area, the area to be marked on each item so as to be legible at destination or, if goods of one size are bundled together, the size to be stated on the bundle.
5.3 If goods of different categories arrive insufficiently marked, any re-sorting charges thereby incurred to be for seller’s account.
5.4 Flat or telquel shipments on one bill of lading should have the same mark.
6. DESTINATION AND 6.1 Buyer to declare the destination within eight days of receipt of seller’s request to do so, but not to be obliged to do so earlier than eight days before the first day allowed for
(F.O.B. only) 6.2 If the seller arranges to book the freightspace he does so as buyer’s agent at current rate to the best of his ability. The seller not to be responsible for late shipment if
freightspace is unobtainable. As soon as seller knows that freightspace is unobtainable within the shipment period he shall give notice asking for agreement to ship by the first
available steamer to the declared port of destination; failing such agreement the buyer to take delivery at port of shipment/place of acceptance.
6.3 If buyer books the freightspace, buyer to give notice of the name or identification of the steamer and departure/sailing dates in due time. Should departure/sailing be delayed
beyond the stipulated shipping period or should the steamer be unable or refuse to receive the goods or part of them for shipment or close for cargo earlier than the advertised date, buyer
has no claim on seller for late shipment.
7. FREIGHT VARIATIONS 13.10.2018