TechMach International, Inc.

TERMS & CONDITIONS & PRICING (note: they do change from time to time):

1. NO INDIAN & BANGLADESH BUYERS! SORRY BUT DUE TO MANY BANK ISSUES OUR SUPPLIER HAS DENIED SALE TO INDIAN BUYERS.

2. FOR HONG KONG, TAIWAN & SINGAPORE BUYERS ONLY DEPOSIT CONTRACTS!!

We get many emails and most are fraud and waste of time.  Please read our terms & consitions before sending emails.

SCRAP METAL & USED RAILS :

Shipment / Delivery

    - No single deliveries, minimum contract duration: 1 year. 

- Minimum quantity/month: 30,000mt 

- Delivery CIF only. 

- Shipment only in bulk. Product is loaded in barges, with a capacity of 30,000mt each, pulled by tugs.  

- No trial, no single, no spot shipments/deliveries.
 

First shipment within 45 days from date of issuance of the operative LC. However, typically the product can be shipped within 5-10 days after LC is cleared.

CONTRACT TYPES  

Description and explanation: see CONTRACTS

 1. STANDARD CONTRACT

             For all end-consumers (Steel mills etc).

2. ONE MILLION USD DEPOSIT CONTRACT

             For all buyers, they accept the terms and conditions from the standard contract, but they are traders. 

3. 10% FULL DEPOSIT CONTRACT

        A.     For all buyers from Taiwan.

B.     If the buyer wants to see the goods (visit the scrap yard or port of loading) between 30 and 60 days.

C.     If the buyer wants full set of documents required for payment. 

4. CASH CONTRACT

        A. For all buyers from India and Bangladesh. 

Letter of Credit terms  

Irrevocable, confirmed, non transferable, operative documentary Letter of Credit payable 100% at sight of Clean on Board Ocean Bill of Lading and Commercial Invoice (by 10% deposit contract: full set of documents), in amount of one monthly delivery and with a validity of 12 3 months (in case of delays). It MUST be confirmed by Seller’s Advising Bank (either Wachovia/First Union National Bank or Deutsche Bank of New York or of Frankfurt). If the L/C should be transferable, then the deposit contract is mandatory 

PERFORMANCE BOND

 The 2 % PB will be guarantied with the contract issuing (see Appendix 5 of the sample contract). The PB has 2 stages: first there’s a Corporate PB issued and signed within the contract (non-operative). Then, there is a Stand-by LC issued to the buyer when the first LC funds are cleared at the advising bank (operative). 

PROCEDURE AND TERMS  

The real important thing right now is make sure that Buyer understands and accepts ALL the terms of the offer. Please study the offer carefully. Should you have any doubts, clarify them with us.

Please note that Seller has their terms and contract wording and will not accept any changes to it, minor or not. It's really a "take it or leave it" situation, it's no use trying to negotiate the terms as they were written in a way that protects all parties. Please don't ask us for amendments, Seller will not accept any.

Seller will not travel to sign contracts. All is done by email. The way it works is:

a. Contract is issued and sent to the Buyer by email.

b. Buyer prints the contract, signs, seals and signals all pages, scans and emails it back to us.

c. Seller will then print, sign, seal, scans and we will email it back to the Buyer. 

The buyer shouldn't worry about irrelevant clauses that are standard in any international contract. This contract is very long and full of unimportant clauses that follow the regulations of the international organizations like UCC, ICC, IML, IBA and CIGS. For example, assignment will not happen, although there is a clause about it in the contract. Arbitration has to be in the US because this is a US seller and they trust no other law system but the US law system, which is very strict and impartial.  

1. Buyer should translate , read and provide our sample Contract (which will be strict the same as our Final Contract) to his lawyer and his bank for acceptation. 

2. Full set of the documents LOI,BCL (Bank Capability Letter) and signed Consent Agreement  -should be sent to our company

3. If needed we will issue the FCO to the buyer

4. Final Contract will be issued for signatory

5. The buyer should print ,sign, stamp and scan all the pages and send the signed contract djp@techmachint.com.

6. The same make the supplier

7. The buyer should provide the signed Final Contract to his Bank and open the L/C as expected (within 5 banking days) 

8. The L/C will be confirmed then the seller start with loading immediately, after first payment the 2% PB will be automatically operative for whole contract duration.  

9. The AQSIQ number will be provided with all shipping documents  -NOT IN ADVANCE. We have several 39 AQSIQ numbers according several 39 scrap yards which belongs to the supplier. Only after the LC will be confirmed we will know from which scrap yard the goods will be delivered and the AQSIQ number will be provided.

10. Inspection of the goods or visit in Port of Loading is with the Standard Contract not allowed, only with 10 % Deposit Contract possible. 

11. The documents required for payment :Clean Ocean Bill of Lading and Commercial Invoice ONLY (by 10% deposit contract is full set of documents required for payment, see below).

12. The other documents are:  

-     Quality and quantity certificates issued by SGS or CIQ/CCIC  

-         Original Certificate of origin issued by Chamber Of Commerce  and Industry of the country of export 

-         Master notice showing descriptions of the goods, name of vessels, B/L Number etc.
 

13. All of the documents including the B/L, invoice and packing list, original certificate has been faxed to the buyer within 7 days after B/L date (please see clause 10.5 of the sample contract) and the originals will be sent through the curier service to the buyer between 21 days (see clause 8.6 of the sample contract). The full set of above documents is required for payment only by 10% deposit contract. 

14. The goods will be paid with non-transferable, revolving, confirmed LC (validity one year, payment month by month) 

15. If the L/C is transferable, then deposit contract is mandatory.

The LOI must include: 

1.   Buyers full company name(address, phone ,fax and e-mail)

2.   Signatory name

3.   Ship-to-company –full details (if different from Buyer).This is the company which receives the products at destination port.

4.   Type of product requested

5.   Target Price/MT CIF

6.   Quantity/month (our minimum 30.000 MT/month x12)

7.   Length of the contract (our minimum 1 year )

8.   Preferred origin

9.   Country of Destination

10. Unloading/destination port

11. PB requested 2%

12. Number of banking days required to open L/C (maximum 7)

13. Complet Bank Details (name, address, contact officer, phone, fax )

14. Account holder

15. Account number

16. SWIFT Code

Steel scraps shall be considered free of alloys when the residual alloying elements do not exceed the following percentages: percent

Nickel                  0.45
Chromium          0.20
Molybdenum      0.10
Manganese        1.65
The combined residuals other than manganese shall not exceed a total of 0.60 percent.

ISRI-CODES:

200 No. 1 heavy melting steel. Wrought iron and/or steel scrap 1/4 inch and over in thickness. Individual pieces not over 60 x 24 inches (charging box size) prepared in a manner to insure compact charging.

201 No. 1 heavy melting steel 3 feet x 18 inches. Wrought iron and/or steel scrap 1/4 inch and over in thickness. Individual pieces not over 36 inches x 18 inches (charging box size) prepared in a manner to insure compact charging.

202 No. 1 heavy melting steel 5 feet x 18 inches. Wrought iron and/or steel scrap 1/4 inch and over in thickness. Individual pieces not over 60 inches x 18 inches (charging box size) prepared in a manner to insure compact charging.

203 No. 2 heavy melting steel.* Wrought iron and steel scrap, black and galvanized, 1/8 inch and over in thickness, charging box size to include material not suitable as No. 1 heavy melting steel. Prepared in a manner to insure compact charging.

204 No. 2 heavy melting steel.* Wrought iron and steel scrap, black and galvanized, maximum size 36 x 18 inches. May include all automobile scrap properly prepared.

205 No. 2 heavy melting steel 3 feet x 18 inches. Wrought iron and steel scrap, black and galvanized, maximum size 36 x 18 inches. May include automobile scrap, properly prepared, however, to be free of sheet iron or thin gauged material.

206 No. 2 heavy melting steel 5 feet x 18 inches. Wrought iron and steel scrap, black and galvanized, maximum size 60 x 18 inches. May include automobile scrap, properly prepared, however, to be free of sheet iron or thin gauged material.

Used Rails:

Chemical Composition Used Rails:

C:    0,54-0,82
Si.:  0,18-0,40
Mn:   0,60-1,05
S:    0.04  max
P.:   0,035 max
As.:  0,01  max of Mass share

Norms: R-50 GOST-7173-75 and R-65 GOST-8165-75

The scrap consists of R-50 (51,67 kg/m) R-65 ( 64,72 kg/m )  Used Rail ISRI 27-29

 ISRI-CODES:

 (27) Rail, Steel No. 1.Standard section tee rails, original weight 50 pounds per yard or heavier, 10 feet long and over. Suitable for rerolling into bars and shapes. Free from bent and twisted rails, frog, switch, and guard rails, or rails with split heads and broken flanges. Continuous welded rail may be included provided no weld is over 9 inches from the end of the piece of rail.

(28A) Rail, Steel No. 2 Cropped Rail Ends. Standard section, original weight of 50 pounds per yard and over, 18 inches long and under.

(28B) Rail, Steel No. 2 Cropped Rail Ends. Standard section, original weight of 50 pounds per yard and over, 2 feet long and under.

(28C) Rail, Steel No. 2 Cropped Rail Ends. Standard section, original weight 50 pounds per yard and over, 3 feet long and under.

(29) Rail, Steel No. 3.Standard section tee, girder, and/or guard rails, to be free from frog and switch rails not cut apart, and contain no manganese, cast, welds, or attachments of any kind except angle bars. Free from concrete, dirt, and foreign material of any kind.

 The rails can be cut to the length the buyer wants. The seller only has to know that in advance.