Guidelines for Nonferrous Scrap: NF-2006

Note:When the individual scrap grades in this Circular, denoted by the various code words, are used, an agreement between parties is also bound by the terms of “Apple” as it appears below, unless the terms and conditions of a specific contract provide otherwise, in which case the specific contractual provisions shall govern.

Apple - Nonferrous Terms

a. Delivery of more or less of the specified quantity up to 3 percent is permissible.

b. A ton shall be understood to be 2,000 pounds, unless otherwise specified.

c. If any portion of the goods covered by a contract are unshipped or undelivered within the time specified in a contract, then that portion is subject to cancellation by the buyer and/or the buyer has the right to hold the seller responsible for substantiated damages. If, because of embargo and/or other conditions of force majeure, a delivery or shipment cannot be made by the time specified, the contract shall remain valid and shall be completed promptly upon lifting of the embargo and/or conditions of force majeure and the terms of said contract shall not be changed.

d. If for any portion of a contract the buyer fails in a timely manner to open a Letter of Credit and/or fails to provide proper conveyance and/or shipping instructions as specified in the contract, then that portion is subject to cancellation by the seller and/or the seller has the right to hold the buyer responsible for substantiated damages. If, because of embargo and/or other conditions of force majeure, a delivery or shipment cannot be made by the time specified, the contract shall remain valid and shall be completed promptly upon lifting of the embargo and/or conditions of force majeure and the terms of said contract shall not be changed.

e. If a significant weight or quality difference is apparent, the seller should be notified promptly and, if requested, another weight or quality determination should be taken. Seller and/or buyer should be given the opportunity to appoint an independent surveyor or a representative to verify weights and/or quality. For purposes of this section, the meaning of the word “significant” shall be determined by agreement between buyer and seller, depending on the commodities and their values.

f. If it is mutually determined that goods delivered do not conform to the description specified in the contract, then the shipment is subject to rejection or downgrade. Disposition of, replacement of, and/or financial adjustment for rejected material shall be subjected to mutual agreement between buyer and seller. Seller is responsible for freight costs. Buyer is expected, however, to exert every effort to limit rejections only to that portion of the shipment which is unsortable and to return the rejected portion promptly upon request, if government regulations permit.