BN-SP-UP504 Specification for Shipping (Overseas)

Table of Contents

1. Scope
2. Reference
3. Vendor's Scope of Work
4. Company's Rights and Obligations
5. Company's Organization
6. Information Required from The Vendor
7. Inspection
8. Delivery
9. Shipping Documents
10. Special Notes
11. Attachments

Specification For Shipping (Overseas)

This document contains a typical Shipping Specification appropriate for a major overseas project.

This specification plan shows key project tack force functions (which are described as standard project function descriptions in the standard BN-S-UK0001/8).

This typical Shipping Specification shall be amended/completed where appropriate for the inclusion in the Project Procedure and Execution Manual.

1. Scope

This specification shall apply to export shipments of equipment and materials (hereafter called "cargo"), purchased worldwide for the construction of ........................at ....................... This specification is an integral part of the Request for Quotation and Purchase Order issued by Company to the vendor.

2. Reference

The following specification shall be referred to as necessary when using this instruction:

BN-SP-UP501 Specification for Packing and Marking of Material and Equipment, Packing and Marking Specification for Export Shipment.

3. Vendor's Scope of Work

The vendor shall be responsible for all work specified herein-after and in the purchase order (the Work). Any consequence due to non- fulfilment of these specifications shall be for the account of the vendor.

4. Company's Rights and Obligations

4.1 Instructions

Company reserves the right to issue instructions to the vendor for the shipments so that the Work will meet Company's requirements. Company may, if necessary, coordinate the Work among the vendor and Company's Project Forwarder and /or Shipping Lines. Company's instructions and coordination of the vendor's Work shall not relieve the vendor of any of his obligations under the Purchase Order.

4.2 Project Forwarder

Company has appointed ............................... to act as Project Forwarder and who shall book space on ocean-going vessels, give pier-delivery instructions, issue the Forwarder's Receipts (FCR) to the vendor, and complete shipping documents in the name of Company. This Project Forwarder may delegate some of these functions to their representative offices (Refer to Att. 2).

4.3 Marine Cargo Insurance

Company (or Client) shall procure all risks marine cargo insurance to cover loss of or damage to the Project Cargo, from the contractual delivery point by the vendor up to the jobsite.

5. Company's Organization

5.1 Company's Organization

Company Office assumes the overall Shipping Supervisory responsibility for shipment ex all countries of purchase.

The direct responsibility for regional shopping shall be delegated (split per country) to the following Project Procurement Centers:

Center A:
for transportation of items purchased in [Countries to be named].

Centre B:
for transportation of items purchased in [Countries to be named].

Centre C:
for transportation of items purchased of items purchased locally in [Country B];
for receipt of cargo at ports of landing;
for inland transportation to final destination.

The full style and name of person in charge of each office are given in Attachment 1.

5.2 Project, Forwarder's Organization

The Project Forwarder's organization for this project is given in Attachment 3. The vendor shall communicate with the Project Forwarder's representative office in the former's nearest port of shipment.

6. Information Required from The Vendor

6.1 Vendor's Responsible Personnel

Within two weeks after receipt of the purchase order, the vendor shall inform the appropriate Company office, with a copy to Project Forwarder, of the names of the vendor's personnel responsible for shipping section and department names, vendor's references as well as telephone and telex numbers, and address of the vendor's office in the form shown in Attachments 4.

6.2 Preliminary Shipping Information

The vendor shall prepare preliminary shipping information in his own form and shall submit one copy each to the Appropriate Company office, Traffic Department, and to the Project Forwarder's representative office at least 30 days prior to the delivery date in the Purchase Order.

If only a short time is allowed between date of the purchase order and the required delivery date, the vendor shall prepare and submit these documents within one week after receipt of the purchase order.

The vendor's preliminary shipping information shall contain at least the following items:

a. Expected date of readiness for shipment (delivery date).

b. Roughly estimated gross weight and dimensions of the Project Cargo per package (if a per package estimate is impossible, estimated total gross weight and measurement of the Project Cargo per shipment stating maximum weight per package).

c. Amount to be delivered (if partial shipments are made, the amount shall be declared on a pro rata basis).

Two (2) weeks prior to the date of readiness for shipment, the vendor shall give final information on cargo volume to the Project Forwarder and Company's support office as follows:

- Gross weight and measurement (total cubic meters) and, if possible, overall dimensions.
- Gross weight and dimensions for heavy and long equipment.

If any change in cargo volume and /or delivery schedule occurs too late for Company's support office to correct the necessary shipping arrangements, Company shall have the right to file a claim against the vendor for extra cost, such as dead freight or demurrage.

6.3 Heavy and Oversize Equipment

The vendor who will deliver cargo, exceeding any of the undermentioned weights and /or dimensions:
a

or

Shall submit to Company, City Head Office, for the attention of the Traffic Department. A Shipping Sketch, showing:

• - dimensions, design of proposed locations and numbers of shipping/transportation saddles/skids.
• - all outer dimensions of equipment
• - center of gravity
• - gross weights
• - lifting lugs or traverses, if any

as well as recommendations for special handling, if any.

6.4 Responsibilities

The responsibilities for shipping/transportation saddles/skids is usually as follows:

a. the overland heavy hauler in country of destination will eventually prescribe the horizontal and vertical forces which transportation saddles must be able to resist.

b. the heavy lift hauler has to approve Vendor's recommended location and design of saddles.

c. after Company's review, details as mentioned under b. and c. will be resubmitted to Vendor, who will then prepare and submit a final shipping sketch, for approval by heavy lift hauler.

6.5 Hazardous and Poisonous Goods

Together with the preliminary shipping information, the vendor shall submit the following documents to both the Project Forwarder and SPIE-Company in case the Vendor will export dangerous or poisonous goods, as defined in the Inter-Governmental Maritime, Consultative Organization Code:

(1) Contents, explanation of chemical and hazardous cargo (4 copies).

(2) Detailed explanation of the goods, packing style and packing specification (4 copies).

(3) Catalog showing the name, quality of the goods, etc., (4 copies).

(4) Detailed explanation on the goods, packing style, and packing specification (4 copies).

(5) Catalog showing the name, quality of the goods, etc., (4 copies).

6.6 Use of Wooden Packing Materials

[Country of Construction Site] Forest Products Import and Export Regulations 1966 has publicized the prohibition of Bark on imports of sawn timber and wooden packing materials.

All vendors who deliver project cargo with wooden or plywood packing shall ensure that upon shipment, all timber, if any, used for the packing of the goods listed in the commercial invoice are free of bark and visible signs of insect and fungal attack.

Note: No hay, straw, chaff, flax rug, or rice husks shall be used for packing purposes.

6.7 Packing and Marking Specification

If the vendor's packing specification deviates from the packing and marking specifications in either purchase order, requisition or "Packing and Marking Specification for Export Shipment", the vendor shall clearly state the alterations in its proposal and submit its detailed specification for Company's review and approval. If the vendor's cost. Company shall not bear any extra charges for improvement of packing after the Purchase Order is issued.

Note: In general, packing shall be accomplished to result in the least possible shipping displacement of each shipping unit.

7. Inspection

7.1 Materials and equipment will be called forward only after satisfactory inspection and acceptance (only after the issue of a Company Inspection Release Note).

If no inspection is required, materials and equipment are to be made available for shipment. It is a condition of purchase that final drawings of equipment supplied must be fully approved before equipment can be accepted.

7.2 The Project Forwarder has been instructed not to effect shipment until he is in receipt of inspection release note and it is essential that all mill certificates, test certificates and guarantees be in our possession, immediately after items have been inspected and tested.

8. Delivery

8.1 Pier Delivery Instruction

After completion of the inspection and the project cargo having been released for shipment, the vendor shall contact the Project Forwarder for pier-delivery instructions. Simultaneously, the vendor shall furnish the Project Forwarder with following information, when requesting pier delivery instructions:

a. Company's job number and project title

b. Company's purchase order number

c. Total number of packages

d. Gross weight and dimensions per package

e. Total gross weight and measurements

f. Transportation period and method to the designated place

g. Identification of dangerous or hazardous cargo, if any

8.2 Port of Shipment

The Port of Shipment of the project cargo shall be specified in each purchase order or otherwise specifically instructed in writing.

8.3 Tagging and Marking

8.3.1 Tags

The vendor shall attach tags (Attachments 4) to each item. However, tagging is herewith waived in the undermentioned cases:

a. Pipe and prefabricated pipe

b. Body of heavy and lengthy cargo (tower, vessel, heat exchanger, reactor, Airfin Cooler, pump and compressor)

c. Construction equipment and vehicles

d. Drum and cable drum

e. Steel structure

8.3.2 Shipping Mark

The main shipping mark for this project, unless otherwise specifically instructed, shall be as follows:

If the package does not have enough space for the above specified shipping mark, three (3) or more metal tags of appropriate size showing the same information shall be firmly affixed to the package. The mark shall also be shown on all export documents.

8.4 Forwarder's Receipt (FCR)

The Project Forwarder has been instructed to issue to Vendor a Forwarder's Receipt (FCR). Said document will be handed to vendor who will have delivered cargo in accordance with Purchase Order contractual delivery conditions, with packing and marking deemed satisfactory.

The Forwarder's Receipt (FCR) is the basic shipping document as referred to in the Purchase Order.

8.5 Forwarder Will Charge Vendor

In the case of FOB/FAS port of shipment deliveries, Project Forwarder will debit the vendor with all charges as incurred or earned by the Project Forwarder, in accordance with contractual terms and as ruled by the custom of the particular trade or port.

9. Shipping Documents

9.1 Preparation

The vendor shall prepare shipping documents in accordance with the following requirements:

1. Commercial invoice, to be issued in one (1) original and five (5) copies and addressed to :

............................................................................................

............................................................................................

............................................................................................

This document shall be carefully prepared and contain all usual details, such as:

a. Full shipping marks

b. Complete description of goods, without abbreviation

c. Quantity, unit price and extension

d. Name of the ship (or aircraft flight no.) by which the goods are to arrive in [country of construction site]

e. Selling price to the purchaser of the goods

f. Delivery terms of the transaction (ex works, fob Vessel, etc.)

g. The country of origin

In the even of various countries of origin, specify which goods relate to which country of origin,. Do not mention European Communities but specify the country.

h. The country of purchase of goods

Refer to what is said under g.

The commercial invoice shall also contain the following statement:

either (if no timber or plywood is used for packing)

a. no packing materials of any kind are used for the goods on this invoice

b. we hereby certify that the material(s) used as packing for the goods on this invoice is (are)......... (to be filled out by the vendor)

c. no hay, straw, chaff, flax rug or rice husks have been used as packing material for the goods of this invoice or (if timber or plywood is used for packing)

d. we hereby declare that all timber used for the packing of the goods listed in this invoice has been inspected and was, to the best of our knowledge, free of bark and visible signs of insect and fungal attack when goods were shipped to [Country of Construction Site].

e. No hay, straw, chaff, flax rug or rice husks have been used as packing material for the goods of this invoice.

The above statements shall be signed by a responsible party of the vendor.

Note: Vendors are reminded that the full cost of quarantine treatment, if any, at destination will be a charge against the vendor.

2. Packing List

The packing list shall show every item contained, net and gross weight and cubic dimensions and total cubic meters of every package: If is imperative that tag numbers are being mentioned whenever tags are required to be used. It shall list only those items actually being shipped. Items previously shipped or items to be shipped in the future shall not be listed.

In preparing the packing list, the names of equipment and materials shall be the same as those described in Company's purchase order or other Company documents, even if the name of the vendor's product differs form the one shown in Company's documents.

The vendor shall put either of the following descriptions at the end of the packing list.

This shipment is the (first) partial shipment under purchase order

no._____________________."

or

"This shipment is the final and complete shipment under purchase order

no. ___________________".

One set of the packing list must be packed in a plastic envelope and securely fastened to the outside of each package.

3. Language

All shipping documents shall be written in English, unless otherwise specified.

9.2 Distribution

The vendor shall distribute the shipping documents as shown in Attachments 5.

Customs Export documents shall accompany the goods and complete shipping documents shall be mailed to the project forwarder latest on the day of delivery in the shipping port.

10. Special Notes

When project cargo is lost of damaged en route to contractual point of delivery, the vendor shall dually inform Company Head Office and Project Forwarder immediately and shall follow their instructions.

11. Attachments

The following attachments shall form a part of this Specification:

Click here for Attachments in pdf format, 6 pages