excluding tankers and vessels which are either classified in Lloyd’s Register or described in Lloyd’s. Shipping Index as “Ore/Oil” vessels. (b) No obvious clerical error in the documents shall entitle Buyers . of supervision and sampling of the goods, from the GAFTA Register of. Any extra charges for loading single and/or tween deckers (self-trimming bulk carriers excluded) and in any. 79 space/hold/tank other than.

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When seeking to rely on clauses that excuse performance or relieve from obligation, parties need to be careful not to “jump too early” and arbitrators and courts will look closely at whether the circumstances are sufficient to activate the particular wording of the relevant clause, and at what has actually caused a particular breach or non-performance. Where the provision of a phytosanitary certificate has been agreed between the parties, Sellers shall use their reasonable endeavours to supply, at their own cost, a phytosanitary certificate in circumstances where: Food, Drugs, Healthcare, Life Sciences.

Gaftq illustrates how readily this will occur. News About this Firm.

These amendments became effective from 1 and 7 Septemberrespectively. A phytosanitary certificate is an official document issued by the national plant protection organisation of the exporting country where the goods have been grown or processed.

GAFTA – The Grain and Feed Trade Association

Contracts often state that certain provisions are to prevail over others to the extent of any conflict between them. The full clause reads:. It certifies that the products covered by the certificate have been inspected according to appropriate procedures, and are considered to be free from quarantine pests and meet specified phytosanitary import requirements, and are in conformity with the certifying statement of the appropriate model gaftq.

This new clause has been introduced in an effort to mitigate the burden placed on sellers with no knowledge of the goods’ final destination, which can result in their failure to provide contractually compliant phytosanitary certificate, thereby putting them in breach of their obligations under the sales contract.


The phytosanitary certificate facilitates trade, but it is not a trade document. Worldwide Europe European Union U.

In this case, the sellers under an FOB contract for the sale of maize, appealed against a decision of the GAFTA Board of Appeal holding that the buyers had validly nominated a substitute vessel to take delivery of the cargo. GAFTA has recently published new amendments to its standard form contracts, which relate to the provision of phytosanitary certificates and nomination clauses.

GAFTA’s prohibition clause was again in the spotlight. Your LinkedIn Connections at Firm. In many circumstances this will help interpretation.

In considering a Russian ban on the export of wheat, announced on 5 Augustthe Board took note that in practice export embargoes can be modified or withdrawn. The debate ultimately moved to the Court of Appeal where it was held in Bunge SA v Nidera BV [] LLR that the prohibition clause would only operate if the seller’s inability to perform was caused by the restriction.

Challenging the regime in international arbitration: This clause will help to protect sellers who must use “reasonable endeavours” to obtain a certificate in circumstances where either the country of import changes its requirements or, at the time the contract is agreed, they are not aware of the named country of import.

GAFTA’s “prohibition” clause gafga broadly speaking to cancel an export contract when there has been a relevant government act restricting its fulfilment. Media, Telecoms, IT, Entertainment.

Where traders use a mix of GAFTA standard and specifically negotiated gxfta, time and costs will be saved and uncertainties minimised if there is a clear mechanism for the interaction between the two sets of terms.

The new Trans-Pacific Partnership. Although the above discussion has focused on the issue of prohibition clauses, the common law principles and analysis used in Pagnan and Nibulon are of general application.

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It held that on a true construction of the contract, where an FOB buyer nominates a substitute vessel pursuant to its right under GAFTA 49, that nomination had to comply with the terms of the contract of sale, including those as to nomination and pre-advice.


The sellers shall have the goods ready to be delivered to the buyers at any time within the contract period of delivery. This change clearly brings clarity and favours FOB buyers giving them greater flexibility in nominating substitute vessels. The Trans-Pacific Partnership to begin in late December The full clause reads: No new pre-advice is required to be given in respect of any substitute vessel, provided that the substitute vessel arrives no earlier than the estimated time of arrival of the original vessel nominated and always within the delivery period.

Interested in the next Webinar on this Topic? The Court therefore concluded that the nomination of the vessel was not made in accordance with the contract because it did not comply with the contractual requirements for the original nomination. More from this Firm.

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As a consequence GAFTA has now amended the nomination clause to confirm that pre-advice terms for an original nomination do not apply to a substitute vessel provided that the substitute vessel arrives no earlier than the estimated time of arrival of the original vessel nominated and within the delivery period. No ifs or butts: Many contracts with Chinese suppliers have been drafted in a manner whereby a Chinese Court will not enforce them.

Bunge SA declared a wheat export contract cancelled on 9 August but were met by a claim for default from Nidera BV as buyers, who argued that the announcement on 5 August of a ban that would take effect on 15 August did not automatically cancel a contract for FOB delivery between 23 and 30 August.

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