PAPER TRADE CUSTOMS

Nomenclature :

Printing and Writing Papers :
Creamwove / white wove paper
Maplitho Paper
Maplitho Paper (SS)
Duplicating
Cover Paper
Art Paper
Chromo Paper
Account Book Paper
Azure laid /Ledger Paper
Coating Base Paper
Plain Copier Paper
Bond Paper
Drawing Paper / Cartridge paper
and all other papers as are primarily manufactured for Printing / or writing.

Packing & Wrapping Papers :

Art Board (both side coated)
Chromo Board (One side coated, Enamel Board)
Black Centered Board
Duplex Board (Plain)
Duplex Board LWC
Duplex Board HWC
Duplex Board Gray back
Duplex Board White back
Triplex Board
Mill Board
Gray Board
Straw Board
MG / MF Board (includes Ticket/Tag/Post card Boards)
Folding Box Board
SBS Board
Pulp Board

Specialty Papers :

Crepe Tissue and Soft Tissue
Airmail/Manifold Paper
Bank Paper
Bible Printing Paper
Parchment Paper
Cast Coated Paper & Board
Cigarette Paper /Cigarette Tissue
Automotive Filter Paper
Laminating Base Paper
Security Paper
Cheque Paper / MICR Paper
Fluorescent Paper /Board
Ivory Board /Brief Card
OTC Base /Carbonizing Tissue Paper
Electrical Grade Paper
Yellow Interleaving Paper
and all other paper that are primarily manufactured for special purposes.

By weight, whether put up in sheets or reels.
per ream, based upon nominal weight including weight of wrappers.
Per reel based upon actual weight including weight of wrappers, end cores, as detailed under clause IV.

The outside wrapper of each ream shall be marked with nominal weight, number of sheets, size in centimeters, substance, grain direction, lot number and date of manufacture, variety /nomenclature and grade and the name of the paper mill. The label should also carry any other markings as required under the Standards of Weights and Measures Act, 1976 and the standards of Weights and Measures (Packed Commodities), Rules, 1977.

Papers & Boards as detailed in item I(A) (B), (C), & (D).
A ream shall consist of 500 sheets only in case of paper the packing could be 1/2 Ream,1/4th Ream, in case of board the ream will consist of 500 sheets and packing could be ½, ¼, 1/5th, 1/10th. The reams should be so packed in bundles that the weight of each bundle should not exceed 65 kg. Weight of each ream should not exceed 25 kg.

The chargeable weight shall include the weight of necessary ream and reel wrappers, strings and in the case of reels, cores (excepting that of plugs) and side discs of wrapper / board Edge protectors.

Substance :
Unless otherwise agreed, tolerance of +/- 2.5% and +/- 5% in substance will be applicable to paper and board as indicated below :
+/- 2.5% in the case of A, B & D.
+/- 5% in the case of C.
For the purpose of determining the tolerance in substance, random samples in the minimum size of 25 X 25 cm shall be taken and tested as per IS : 1060 Part I. The average substance of 10 random sheets so tested should not vary more than + / – 2.5% or + /- 5% of the declared actual substance as the case may be.

Wherever supplies are made in reams on national weight basis, the average variation in weight shall not exceed either way :
+/- 2.5% in the case of A, B & D.
+/- 5% in the case of C.
In case of variation beyond these tolerance limits, the actual weight and or nominal weight which ever is less shall apply.

The variation of measurement in sheets must not exceed 0.5% either way above or below the declared measurement. Where 0.5% is less than 3 mm the maximum tolerance shall be +/- 3 mm and where 0.5% exceeds 5 mm the maximum possible tolerance shall be +/- 5 mm.
Width of reels shall not vary more than 0.5% with a maximum permissible tolerance of +/- 5 mm.

Upto 10% of the total order can be supplied in retree quality and such supplies will be subject to usual rebate for retree quality as per each mill’s policy or as mutually agreed. The uniform marking for retree Quality shall be “XX”.

For manufacture and supply of special size, substance, watermark, tint etc., terms shall be as is mutually agreed to by the paper mill and buyer.

Unless expressly agreed to in writing, the paper mill shall be free to use their discretion in the selection of material input for manufacture.

Any buyer requiring a special watermark shall provide the roll or moulds free of charge to the paper mill. The condition governing the issue of such special dandy or mould shall be as is mutually agreed in writing between the paper mill and buyer.

No special dandy or mould supplied by the buyer can be destroyed until the buyer has been given an opportunity to redeem the same.

All orders for special as well as ordinary goods, shall be deemed to be properly fulfilled if the quantity supplied is within the following limits :
Upto but not exceeding 1 tonne +/- 15%.
Above 1 tonne but not exceeding 5 tonnes +/- 10%.
Above 5 tonnes +/- 5%.

 Deliveries may be suspended or cancelled in the event

Force Majeure: Any contingency arising beyond the control of the seller or buyer such as act of God, War, riot, strike, lockout, civil commotion, fire, flood, drought, interruption of transport, interruption of power or water supplied to the paper mill, act of Government etc.

Any accident and/or damage whether partial or total to the premises, machinery, etc. during such time as may be required to make good repair such accident or damage.

The seller or buyer, as the case may be, shall give to the other party immediate notice of the cause of such suspension / cancellation as the case may be.

In the case of suspension of deliveries, the same shall be resumed as soon as it is practicable, after giving due notice to the buyer, of his intention to resume supplies.

If the suspension of deliveries shall continue for a period of more than two months from the commencement of such suspension or interruption of deliveries either party may, by notice in writing to the other, cancel the portion of the order affected by the suspension.

Goods in transit, at the time of any notice, as aforesaid being given by the buyer, must be accepted by the buyer not withstanding such notice.

In the case of orders/contracts for delivery in installments each delivery shall be considered as a separate contract.

The goods or any portion thereof, are not dispatched within fifteen days of the promised dispatch date given by the mills, customers will have the option of canceling the same, by intimating in writing to the effect to the mills within fifteen days of the promised date but if no such notification of cancellation is received by the company, the goods will be dispatched and the buyer must take delivery provided, however, that if the goods or any portion thereof from unavoidable causes such as want of accommodation on railway or strikes of operatives of carrier, accidents, mill breakdown or any other case of force majeure, are dispatched late, buyers must accept them if dispatched within two months of the date stipulated whether the company has notified buyers or not.

Mills shall issue order confirmation and specify date of delivery. In absence of any delivery period it would be assumed that delivery will be within six weeks of confirmation by mills.

 Delayed Deliveries

Specifications of markings (along with sample in case of special grades or orders) shall be sent to the seller in reasonable time but not later than eight weeks before the due date of delivery required by the buyer. If the paper ordered /contracted for acceptance, by ready for delivery on the specified date, and the buyers does not take delivery when requested by the seller to do so, whole of the delivery be not ready, the seller may invoice such portion of the order as is ready, unless a fixed date for delivery for the whole is agreed to between the buyer and the seller. In case samples are not received in time, the supply will conform to the mill’s normal specifications for similar quality.

Paper and board stores at the mill beyond the agreed date of dispatch shall be subject to a rental as is determined by the mill. The maximum period of storage shall be four weeks from the date on which goods were scheduled for dispatch, as mentioned aforesaid, and the seller shall thereafter have the right to dispose of the stored material at the risk of the buyer.

Where the material mentioned in X(1) above is dispatched to the buyer does not take delivery thereof the transaction shall be deemed to have been repudiated by the buyer and the seller shall have the right to dispose off the stores at the risk of the buyer.

 Claims

The customer shall not withhold the payment because the complaint has been lodged.

Claims on any goods, whatsoever must be made in writing within 30 days from the receipt of goods, but this is not to operate where defective quality cannot reveal itself during this period. In such cases claims for defective quality must be lodged in writing within six weeks from the receipt of the goods. In all cases of defective goods claims must be settled only on the quantity produced for inspection. In certain cases depending upon the nature of claim it shall be necessary to produce bundles or reams or reels in original packing for inspection before consideration of claim. The claim would be settled only on the basis of intact and defective goods made available for inspection.

Mills should acknowledge the receipt of complaint within 7 days from the date of receipt of letter of complaint. Till then the buyer shall carefully store the goods in the warehouse.

Goods under complaint should be inspected within 3 weeks from the receipt of complaint by an authorized representative of the mill.

Inspection should be carried out and a copy of the inspection report duly signed by all parties shall be given wherever practical to the parties concerned.

Final settlement of claim amounts and payments should be made within 30 days from the date of inspection.

If an order is executed in successive lots of delivery, each delivery shall be treated as a separate contract and claims or disputes about one delivery shall not affect the balance of the contract.

 Contracting Out

Any or all these terms may be varied or made inapplicable by the terms of any specific Contract.

Arbitration :
All disputes arising under any order or contract shall be submitted to arbitration as per Sub-clauses 8 of clause XV.

Other Terms :
All contracts are deemed to be entered into at the head office/registered office of the Mill concerned. The seller may call for payment at any of their office suiting their convenience.
Delivery of goods which may arrive at the buyer’s station must be taken and buyer must accept railway receipt or lorry carrier note and/or mill draft/bill as correct without further proof of correct dispatch.

Each delivery under a contract is to be considered a separate contract. The date for payment specified in the terms are of the essence of the contract. If the buyers fail to pay on the due dates for payment the company will be entitled (a) to treat such failure as a repudiation, (b) to repudiate further performance of all deliveries to be made under the indent, and (c) to claim damages forthwith for the breach of the contract in respect of all deliveries.

Further, if the buyers fail to pay on the due dates under any indent, the company will be entitled to stop supplies under other indents and claim damages, including interest at the discretion of the mill.

Indent or portion of same, to be considered executed as soon as placed on rail or lorry at Mill siding, on board steamer and rail or lorry receipt or shipping documents obtained. The company is not be held responsible for any delay in transit by rail, road, or river/sea to buyer’s station or port.
Qualities to be as near as possible to those of the company’s current standards unless otherwise contracted for, or mandatory under any act of Government of India.
Railway receipt or lorry carrier note, bill of lading shall be proof of date of dispatch.
Notice from one party of the other shall be deemed to have been duly delivered if left at the other’s last known place of business or if posted in a registered cover addressed to the other at such place.

All disputes whatsoever arising on or out of or in connection with or arising in any way with any contracts / indents / order acceptances for supply of the goods by the seller paper Mill to the buyer, shall be referred to a mutually agreed party and or parties or if not then referred jointly to Paper Mills Association and Federation of Paper Traders Associations of India.
All risks and responsibilities of the paper mill shall cease as soon as goods are handed over to the authorized carriers.

Buyers shall accept and pay for all goods dispatched against orders.

Time of shipment and/or delivery is to be understood relating to manufacturers railhead or port of shipment and with reservation against delay of the availability of bookings or scheduled shipping opportunity. Where a date for time of delivery is qualified by the words about or approximately or some similar expression, it shall mean that the seller mill is allowed a margin of four weeks either way, any how with the reservation against delay of rail booking availability or scheduled shipping opportunity.

Where goods are sold c.i.f. insurance shall cover the amount of invoice only, unless the buyer within reasonable period of time, before shipment, shall have requested the seller to issue for a large amount, in which case the premium on the excess value shall be to the account of the buyer.

Any duties or other public charges imposed by any country into which goods are imported, shall be borne by the buyer and any such charges by the exporting country shall also be to the account of the buyer.

Legal prohibitions subsequent to the conclusion of the contract affecting the import of goods into the importing country shall entitle the buyer to cancel the order, except as to goods which are due for delivery not more than two months from the said event and which are already in the course of manufacture or shipment/transit.

Mills should insure goods for transit risk and recover the premium from customer, unless otherwise agreed.To get a copy of The Paper Trade Customs, kindly contact the FPTA’s office.