INTERNATIONAL TRADE TRANSACTION
PRIVATE EXERCISE
The Vietnamese company located in Ho Chi Minh city is about to enter into a sale contract
of rice with the Japanese buyer whose headquarter is in Kobe. On behalf of the seller, you
are required to draft the following terms and conditions:
1. Commodity and specification
2. Quantity and price
3. Delivery (CIP Incoterms Ò 2020 is required)
4. Inspection
-----------------------------------------------------------------------------------------------------------SALES CONTRACT
Contract No. 001/VNF/2023
Ho Chi Minh City, 25th September, 2023
1. Commodity: Vietnam Long Grain White Rice ST25 5% Broken
2. Specification:
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Broken: 5% max
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Moisture: 14.5% max
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Foreign matter: 0.1% max
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Yellow kernels: 0.5% max
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Chalky grains: 3% max
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Glutinous rice: 0.5% max
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Red kernel and red streaked kernel: 0.5% max
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Damage: 0.5% max
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Paddy grain: 5 grains/kg
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Purity: 85% min
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Average length of grain: 7.2 mm
The inspection of quality is specified in Clause 6 below.
3. Quantity: 5000 MT more or less 10% at the seller’s option. Tolerance’s price is
determined at time of delivery. The mentioned above quantity is understood as gross
weight for net. The inspection of quantity is specified in Clause 6 below.
4. Price:
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Price currency: USD;
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Unit price: USD 610/MT as per CIP Cat Lai Port, Incoterms Ò 2020, packing
charges included;
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Loading, unloading costs and any other surcharges arising from the contract,
whether at the loading or unloading charges shall be at Buyer’s account;
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Total price: Approximately USD 3050000 (In words: About three million and fifty
thousand United States Dollars only).
At the time of delivery, if price of rice on Viet Nam market is of 10% different from
this price then market price shall be applied.
5. Delivery: Delivery of the goods shall be made CIP Cat Lai Port, Incoterms Ò 2020.
The scheduled date of delivery shall be 20th October 2023. Risk of the goods shall
pass from the Seller to the Buyer when the goods are handled to the carrier
contracted by the Seller. The place of delivery under this contract is Kobe Port.
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Port of Loading: Cat Lai Port, Ho Chi Minh City, Vietnam
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Port of Discharge: Kobe Port, Japan
6. Inspection:
6.1.
Inspection by the Buyer
The Buyer may, at the Buyer’s option, inspect the goods prior to shipment. At
least three (03) days before the actual delivery date, the Seller shall give notice
to the Buyer, or to any agent nominated by the Buyer, that the goods are available
for inspection. The Seller shall permit access to the goods for the purposes of
inspection at a reasonable time agreed by the parties.
Note: Customs requirements for information of goods into some countries
require inspection by SGS prior to shipment from the Seller’s country. The
following clause is recommended for sales to these countries.
6.2.
Inspection by Inspection Service
The parties understand that importation into Japan requires inspection of goods
by SGS before shipment from Ho Chi Minh City. The Seller agrees to cooperate
fully with the SGS in providing access to and necessary information about the
goods for the purposes of such inspection.