STANDARD TERMS AND CONDITIONS OF THE E-AUCTION OF IMPORTED SCRAP

 SCRAP TO BE SOLD BY THIS AUCTION WILL BE SOLD ON HIGH SEAS BASIS ONLY.

 

1.0          SELLER:

 

1.1    MSTC Limited who are owner/seller of imported scrap, is hereinafter referred to as “Seller” or “MSTC”.

 

2.0          WHO CAN BID ?

 

2.1  Imported scrap offered for sale through e-Auction is open to all, Indian citizen customers registered with MSTC as per the registration process detailed in MSTC’S website www.mstcauction.com.

 

2.2 Only those buyers who shall register themselves with MSTC for purchasing imported scrap from MSTC through e-auction as per specified guidelines for registration, displayed on MSTC website www.mstcauction.com and have deposited PRE-BID EMD as per terms given herein below, shall be eligible to participate in the e-auction.

 

3.0          How to register with MSTC for purchase of imported scrap through e-auction?

 

(i)    Log on to our website at www.mstcauction.com

(ii)    Click on the link provided: “             ”

 

(iii)   GENERAL   TERMS  &  CONDITIONS  OF  e-AUCTION FOR IMPORTED SCRAP will appear on the screen. Scroll down to the bottom of the page where two options will be there :-

 

(a)Register as Buyer and 

(b)Register as Seller.

 

(iv)   Select and click on “Register as Buyer” option.

 

(v)   BUYER SPECIFIC TERMS & CONDITIONS will appear next on the screen. Read them carefully and Scroll down to the bottom of the page where again two options will be available: ‘Agree’   and   ‘Disagree’.

 

(vi)   Select and click on ‘Agree’ button.

 

(vii)   Buyer's Registration Form will appear on the screen. Fill up the desired information. You will have to select from Drop box and click on ‘Imported Scrap ’ in the Buyer Type field.

 

(viii)   All field’s marked with * are mandatory and must be filled in.

 

(ix)    Select your User ID and Password and keep a note of the same.

 

(x)     After filling up the form click on the ‘Submit’ button.

 

(xi)    The next page is not relevant to you. Please do not fill anything and click on ‘Preview’ button. All the information typed in the form will be displayed to you for verification. If the information is correctly entered then click on ‘Submit’ button. On successful registration the system will send you an email along with Standard Terms & Conditions of the e-Auction of imported scrap and also inform you instantly to submit ‘Registration Fee’ if any and the relevant documents as mentioned under:

 

(a)    Copy of Sales Tax Registration Certificate

 

(b)      Copy of PAN Card

 

(c)    Copy of EXPORT-IMPORT Code number and BIN Number

 

(d)    Copy of Income Tax return (Latest one)

 

(e)             Copy of Two passport size photographs of the contact/authorised person along with his specimen signature. (Please note that the authorized person shall be allowed to act on your/the company’s behalf for any transaction concerning the scrap auction for which you shall be fully liable).

 

(f)               Purpose of purchase of scrap i.e. own consumption or trading.

 

(g)             If manufacturer, what are the products manufactured by you

 

The above documents can be submitted at any of our offices in India whose address is available on the website itself with an intimation to Shri A. DAS, JM(MKTG-III), of MSTC HO. ( adas@mstcindia.com )

 

Only after submission of documents your account will be activated and you will be issued a ‘Photo Identity Card’.

 

3.1 The Registration fee :  FREE for registration within one year till 31st December 2006. Customers registering under this scheme will be allowed to bid for imported scrap only, subject to fulfillment of all conditions herein including payment of PRE-BID EMD mentioned in Clause 7.0 hereinunder. Those who are already registered for usual e-auctions of indigenous scrap will automatically be entitled to bid for imported scrap subject to payment of PRE-BID EMD as mentioned in Clause 7.0 hereinunder as well as submission of documents under Clause 3.0 (xi)(c ).

 

4.0 INFORMATION ABOUT THE IMPORTED SCRAP AUCTION:

 

4.1 All the registered imported scrap buyers will be intimated about all the auctions through email.

 

4.2 Type of scrap and approx. quantity and expected shipment date of the imported scrap to be sold through e auction, will be notified on www.mstcauction.com at least 7 days in advance from the date of auction and also shall be intimated via e-mail to the registered customers.

 

5.0 HOW TO KNOW ABOUT THE QUALITY OF IMPORTED SCRAP:

  

5.1  The quality and quantity of scrap shall be determined by a inspection agency of repute at load port. The finding of this inspection agency shall be final and binding on MSTC and the buyers. 

 

5.2  ACTUAL QUANTITY, QUALITY AND SPECIFICATION:-

Specific shipment period actual specification approximate quantity provision etc. shall be available on the date of auction minimum 1 hr before the scheduled time.  Log on to www.mstcauction.com and type your user id and password. You will be taken to your ‘Home Page’. There will be two buttons: Select and click on “View Forthcoming Auctions”. A list of all the imported scrap auctions will appear on your screen. Select and click the one you want to see. The auction catalogue with all the details specification and terms and condition will appear. You can take a print of the same and keep for your further needs and record.

 

6.0  TERMS OF SALE:

All materials will be sold on High Seas Sale basis against payment of total amount as per MSTC’s invoice and all other charges as detailed below. The customers to file Bill of Entry in their own name with customs and pay the requisite customs duties and taxes as applicable at their own cost. No liability shall lie with MSTC upon completion of High Seas Sale.

 

7.0 PRE-BID EMD (Earnest Money Deposit):

 

(i) At present prospective bidder/buyer will have to deposit non- interest bearing EMD at the rate of Rs. 1000/- per metric tonne (MT) for the quantity that the bidder desires to bid/purchase for sale on High Seas basis.

 

ii) Minimum quantity for which EMD to be deposited is 500 MT for each bidder and multiples of 100 MT thereafter.

 

(iii) Earnest money has to be deposited at HO Office or any of our Regional & Branch Office before 48 hours of the scheduled auction time. For example, if auction is on 10th, EMD will be accepted up to 8th (if 8th is a MSTC holiday then till 9th). Bidders sending EMD by post/courier, may do so at their own risk. MSTC will not be responsible for any postal delay or loss and will not accept any claim on that account.

 

(iv) Earnest money has to be deposited by way of Demand Draft/Pay Order in favour of “MSTC Limited” payable at Kolkata drawn on any scheduled bank. Such DD/PO may be deposited at any office of MSTC under intimation to Shri A. Das, JM(MKTG), MSTC, Kolkata. (email- adas@mstcindia.com) / Smt. S. Arya, AGM(MKTG), MSTC Kolkata (E-Mail: sarya@mstcindia.com )

 

v) Earnest money can also be deposited directly in our HDFC bank account no.   –0140350000425 with intimation to Shri A. Das, JM(MKTG), MSTC,    Kolkata. (email- adas@mstcindia.com ) / Smt. S. Arya, AGM(MKTG), MSTC Kolkata (E-Mail: sarya@mstcindia.com ).In this case the bidder shall be activated only after credit of the above sum to our account.  

 

(vi) During auction any bidder can bid up to the maximum quantity for which he has deposited EMD e.g. any customer who has deposited Rs10.00 Lacs, the Maximum Permissible Quantity (MPQ) that will be allowed for bidding for him shall be (Rs10,00,000/1000) = 1000 MT.  This will be shown on his screen when he logs in to the auction floor.

 

7.1 FORFEITURE OF PREBID-EMD:

 

The PREBID-EMD submitted by the successful bidder will be liable for forfeiture in following cases:

 

(i) If after the auction, successful bidder fails to make full financial arrangement for imported scrap value and all other charges within the stipulated time,

 

(ii) If after making necessary payment for imported scrap value and other charges, bidder fails to lift imported scrap or take delivery within stipulated period or requests for cancellation of order.

 

 

(iii) If any of the documents submitted by him at any point of time are not found in order.

 

7.2 ADJUSTMENT/REFUND OF PREBID-EMD:     

 

(i) In case of unsuccessful bidders, EMD will be refunded without interest.

 

(ii) In case of successful bidders, bidders will have the option either to get the EMD adjusted at the time of making full payment of imported scrap value and other charges or make full payment and seek refund of EMD thereafter.

 

8.0 APPOINTMENT OF STEVEDORES, C&F, HANDLING AGENT:

 

8.1 For each port of import MSTC will select one specific agent / contractor who shall be responsible for the entire clearing and forwarding, stevedoring, handling job of the scrap at that port. It is mandatory for all successful bidders to give appointment to the nominated handling agent of MSTC for the entire above job. The rate for the above job shall be negotiated and fixed by MSTC themselves and will be available on the screen of the auction on per metric tonne basis. All import shall be on “NO DISPATCH / DEMURRAGE BASIS”, if not specifically mentioned otherwise in the catalog. Hence the demurrage incurred or dispatch shall not be in the account of the successful bidder. However, in case of any delay in filing of Bill of Entry or any other statutory formalities due to the bidder’s fault, the bidder shall be held responsible and the demurrage money shall be recovered from the EMD of that bidder. Also in cases where the import will involve payment of Despatch/Demurrage the same shall be notified for that particular auction.

 

8.2  The payment of the handling agent shall have to be submitted to MSTC by the successful bidder by way of DD/PO in favour of the handling agent during signing of the High Seas Sale agreement.

 

9.0 INITIAL BID PRICE:

 

i)      MSTC will fix an initial bid price for imported scrap offered under auction. The initial bid and subsequent bids price will be in terms of Rupees per MT based on the CNF price, Usance Interest, Bank Charges, Insurance etc. Other charges/statutory levies, Duties, taxes, etc. such as stevedoring charges, customs duties, handling charges, port charges etc. will be chargeable extra on actual basis and will not be part of either the initial bid price or the floor price or the bid made by yourselves.

 

ii) On quoting a price above the initial bid price the bidder will be allotted the quantity on a provisional basis if their bid is more than that of other bidders or balance material is available for purchase / booking.

 

 

iii) However the provisional allotment after closure of any auction is not final. Final allotment will be based on MSTC’s undisclosed reserve /floor price and booking of full shipload quantity and will be intimated by MSTC after the auction, which may not be as per the provisional allotment.

 

iv) In case the full quantity or a substantial portion of the quantity offered is not sold at or above the reserve price and /or if the total quantity demanded at the close of the auction is not adequate to place order, MSTC reserves the right not to book any cargo and cancel the e-auction. In such cases the EMD will be refunded to the customers without any interest. No claim shall lie against MSTC.

 

10.0  BIDDING PROCESS:

 

(i) Bidders have to bid separately for each item as per the bid price described above. PLEASE NOTE THAT OTHER CHARGES/STATUTORY LEVIES, DUTIES, TAXES, ETC. SUCH AS STEVEDORING CHARGES, CUSTOMS DUTIES, HANDLING CHARGES, PORT CHARGES ETC. SHALL NOT BE A PART OF THE BID PRICE.

 

(ii) If the bidders bid is H-1 and above the initial bid price then the quantity of imported scrap provisionally allotted to the bidder at that particular time will be reflected in the bidder’s ‘PROVISIONAL ALLOTMENT QUANTITY’ field. The bidder can click on the link provided there to know the details of quantity allotted to him and at what price .

 

(iii) The bidder to keep checking the allotted quantity field as the quantity can decrease if any other buyer quotes a higher price. In such case the bidder can give a higher bid.

 

(iv) Bidders have to bid for minimum 500 mts and multiples of 100 MT therafter, subject to submission of Pre-bid EMD. However the maximum limit shall depend on his MPQ (MAXIMUM PERMISSIBLE QUANTITY) based on the PRE-BID EMD deposited by him, which will be shown in the auction screen. PLEASE NOTE THAT THE MPQ CANNOT BE ENHANCED BY SUBMISSION OF ADDITIONAL EMD DURING THE AUCTION. The system shall not accept bids for higher quantity  beyond the MPQ.

 

(v) The bidder to note that the bids the bidder is bidding is only for the HSS price. The charges for C&F, Stevedoring, Handling and Plot rent for temporary /intransit storage at the Port shall be fixed and are not included in the bid he is giving . The same has to be paid extra.

 

(vi) The bid can be increased any number of times by minimum Rs.25/- Per MT during the scheduled auction period

 

(vii) Auction period will normally be from 11.00 hrs to 13.00 hrs (IST) subject to automatic extension. If any valid bid is received less than 10 minutes before closing time, closing time will automatically extend up to last bid time plus 10 minutes, thus giving enough opportunity to others to revise their bids on that item. The time displayed and reserved by the system shall be final while during normal auction hours, bidders can increase bid minimum by Rs.25/- (twentyfive)/tonne but during extension time of auction bid has to be increased by minimum Rs. 50/- (Fifty)/tonne.

 

(viii) Auctions will be held on pre-notified dates. Dates of auctions will be put on websites of MSTC given above. However, MSTC reserve the right to cancel, postpone, prepone any auction without assigning any reason.

 

11. 0 METHODOLOGY FOR ALLOCATION OF QUANTITY:

 

Allocation of quantity to the bidder will be carried out by the e-auction software on descending order of bid price on following basis; provided the bids are above the reserve price.

 

a) First preference is given to highest bid price.

 b) If two or more parties bid for the same price then preference for allocation

is given to party for a higher bid quantity.

 c) In case two or more parties bid for same price and quantity then preference is given to the party that place the bid earlier as per the date and time of receipt of the bid by the system.

 d) In case the bids above the reserve price are insufficient to make the shipload quantity, MSTC reserves the right to negotiate with any or all the bidders or re-offer at fixed price (not below the initial bid price) to any or all the bidders at MSTC’s discretion for selling the material in an effort to sell the shipload quantity.

 

12.0 INTIMATION OF AUCTION RESULTS:

 

After the close of the bidding and upon finalization of the cargo based on the received and the reserve price depending on the demand generated through the e-auction each successful bidder will be intimated through e-mail by MSTC as soon as the transaction is finalized. However, it will be the responsibility of bidder to personally see and download the result of e-auction.

 

13.0     UPON ALLOTMENT:

 

13.1  After receipt of allotment intimation, successful bidders will have to deposit to MSTC within 3 days after the final allotment of quantity by MSTC :-

 

a)    20% of the sale value by way of demand draft in favour of “ MSTC LTD.” drawn on any scheduled bank, payable at Kolkata. Or open an Inland L/c for the full sale value in favour of MSTC in MSTC’s format.

 

b)    Letter of appointment to MSTC’s nominated Stevedoring, C&F, Handling agent authorizing them to act on their behalf.

 

c)     A letter intimating that the balance 80% of the sale value and all other charges as per Clause 14.1 below will be submitted by them by way of DD/PO/ILC at the time of High Seas Sale upon actual shipment from loadport.  

 

13.2 In case of default in payment at any stage described above in clause 13.1, apart from forfeiture of EMD, MSTC also reserves the right to debar the defaulter from participating in forthcoming e-Auctions for such period as decided by MSTC.

 

13.3 Apart from bid price and Handling Charges, successful bidder will also have to make full payment of other statutory port and Customs charges, Duties, taxes, levies etc. wherever applicable, at the prevailing rates. In case there is any change in these charges after the closure of auction but before completion of lifting, changed rates will be payable for the quantity balance on the date such change in rates is made effective.

  

14.0 UPON SHIPMENT OF MATERIALS:

 

14.1 Upon shipment from the load port and on receipt of advance set of non-negotiable documents MSTC shall intimate to the successful bidders who has submitted the required advance money /ILC after allotment. Within 5 working days after such intimation the successful bidder / purchaser to submit the following to MSTC : -

 

i)                  The balance sale value by way of DD/PO/ ILC in favour of MSTC Ltd. In case of ILC the same to be as per MSTC’s format, from a scheduled bank and the usance period shall not be more than 90 days from the B/L date.

 

ii)                Full value of the stevedoring –cum-handling charges by way of DD/PO in favour of the appointed handling agent. 

 

iii)             Customs duty, CVD, SAD, CESS etc as applicable by way of DD/PO in favour of relevant customs. 

 

iv)              Provisional plot rent for 30 days by way of cheque in favour of MSTC LTD (to be intimated in the auction catalogue) which shall be encashed and the balance, if any, will be returned on completion of lifting of entire materials sold on High Seas Sale basis. Additional amount on this account may also be demanded, if required in case of delay in lifting. However, buyers are advised to complete the lifting of quantity sold to them within 15 days after completion of discharge of the entire cargo.

 

14.2 Upon signing of the high seas sale contract and receipt of all amounts as above the original copy of the High Seas Sale along with B/L and Invoice shall be handed over to the CNF agent for clearing of the cargo and other statutory formalities.

 

15.0 UPON ARRIVAL OF VESSEL AT DISCHARGE PORT:

 

15.1 Upon arrival of the vessel the nominated handling –cum- stevedoring agent shall be responsible for clearing of the same from customs and discharging the cargo. However, it will be the joint responsibility of all the purchasers to whom material has been sold on High Seas Sale basis to co-ordinate and follow-up with all the relevant authorities for smooth berthing and discharge of materials. The bidder shall be responsible for placing the proper number of trucks in time for delivery of the materials directly from the berth or from the temporary stock -yard as suggested by the handling agent. The handling agent will load the trucks on first-cum-first serve basis without any preference to any bidder. Any requests for loading on pick and choose basis or from particular hip shall not be entertained. 

 

15.2 Scrap shall be loaded on the trucks by the handling agent and the weighment of each truck shall be done in the nearest weigh-bridge and the report of the same shall be final and binding on the purchaser, seller and handling agent.

 

15.3 MSTC may regulate the delivery of the quantity of scrap so that all purchasers are able to lift the same proportion of the allocated quantity. Shortage, if any, shall have to shared equally or the same proportion by all the purchasers.   

 

16.0 FORCE MAJEURE:

 

16.1  MSTC will not be liable for any failure or delay in performance due to any cause beyond their control including but not limited to Fires, Floods, Strikes, Go-Slow, Lock-outs, closure, Pestilence, Dispute, Epidemics, Political upheavals, Government action, Civil commotion, Breakdown of machinery, shortage of labour, Acts of God etc. It will be the sole discretion of MSTC to extend time of performance after cause of delay will have cease to exist. The provisions aforesaid shall not be limited or abrogated by any other terms of contract whether printed or written.

 

17.0 GENERAL TERMS:

 

(i)               The auction of imported scrap will be done for specific consignment/vessel wise and for specific type. All the prospective buyers/bidders should satisfy themselves about suitability and quality of imported scrap before bidding which will be as per USISRI specification unless otherwise stated. The inspection report of the inspection agency of repute at the loadport on quality and quantity shall be final and binding on the successful bidder. No refusal, after acceptance of bid, will be entertained for bided imported scrap on quality or suitability or any other ground. No claim shall be on MSTC.

 

(ii)            Quality claim will be taken up by MSTC with the seller but no claim shall be with MSTC.

 

(iii)          Quantity claim will be taken up by MSTC with the appropriate party but no claim shall be with MSTC.

 

(iv)          After closure of e-Auction, sale intimation letter will be issued through e-mail to the successful bidders by MSTC, advising them to deposit full value along with other charges within stipulated time.

 

Buyers must check the result/ status of their bid from MSTC website. Non receipt or delay in receipt of sale intimation letter by e-mail for any reason whatsoever will not confer upon buyer any right to retract his bid and EMD shall be forfeited in such a case.

 

(v)    The decision of MSTC management in matters related to this e-Auction shall be final and binding on buyers/bidders.

 

(vi)   All matters related to e-Auction will be subject to jurisdiction of Kolkata High Court.

 

(vii)   Quantity allotted is only indicative and delivery will be given based on actual shipment, actual discharge and on actual weighment basis.

 

(viii) MSTC reserves the right to modify or amend any of the terms & conditions. Any interpretation of any clause will be subject to clarification by MSTC, which will be deemed as firm and final.

 

(ix)   It is in the interest of buyers/bidders to keep their e-mail account valid all the time and keep their e-mail password secret, failing which they will be liable for non-compliance of payment terms due to non-receipt of e-mails from MSTC.

 

(x)    Registration of customers with MSTC is a continuous process. Nevertheless prospective bidders registering themselves 3 days prior to date of auction, shall be assured of their eligibility to participate in the said e-Auction.

 

(xi)   In addition to these terms and conditions, the Buyer Specific Terms and Conditions (BST) and General Terms and Conditions (GTC) will also form an integral part of terms and conditions of sale through e-auction.

 

(xii)   Bidders must be extremely careful to avoid any wrong bidding (whether typographical or otherwise) and they must check and rectify their bid (if required) before submitting their Bid into the live e-auction floor by clicking the “Bid” button. In case of any bid being equal to or more than 5(five) times the current Highest Bid for a particular Lot, this will be displayed by way of a warning on the Bidder’s screen before he confirms/submits the bid. There is no provision for putting Bids in decimals. The Bidder shall be solely responsible for all consequences arising out of the bid submitted by him (including any wrongful bidding by him) and no complaint / representation will be entertained by MSTC in this regard.

 

 

(xiii) The Auction List and Special Terms and conditions (STC) being displayed in the Auction Notification under “View Forthcoming Auctions” on MSTC’s e-Auction Website or being displayed in MSTC’s Corporate Website (www.mstcindia.com) are tentative and subject to last moment changes at MSTC’s sole discretion till the start of e=Auction. Only the Auction List and Special Terms and Conditions displayed on the Auction Floor under “View Live Auctions” (and not under “View Forthcoming Auctions) on start of e-Auction will be final and will form the basis for all sale contracts against this e-Auction and no representation / complaint in this regard will be entertained by MSTC / Principal from the Bidders.

 

(xiv) During Live Auction and before Bidding, it will be the responsibility of the Bidders to see the hyper linked “Item Details” by clicking on the respective “Lot Name” and no representation / complaint in this regard will be entertained by MSTC / Principal from the Bidders.

 

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