ANNEX 1. The main cargo transport and forwarding conditions in the Sea Commercial port of Mariupol

4. OBLIGATIONS OF THE PORT AND CARGO OWNER

4.1. The port accepts delivery of the cargoes and records their movements, as well as spare tare, by B/L's lots, ship's lots, waybills and wagons lots.

Stock and documentary inventories of cargoes to be made by the port with participation of the cargo owners/their forwarders or repre-sentatives/at their cost for the period from 1st October, last year till 30th September, current year.

4.2. The port provides storage of goods in sheltered or open storage areawithin the limits of one-time and maximum periods of storage.

The port determines norms and terms of storage of cargoes. In case ofexceeding periods specified by the port, payments for storage to be applied at the higher rates. In case of non-removal of the goods by a cargo owner (his forwarder or representative) by the last time fixed inthe contract concluded with the port, the latter has the right to sell those cargoes.

4.3. A cargo owner/his forwarder or representative/submits all necessary information about cargoes concerning their ways and conditions of carriage, storage and transshipment, determining the weight, etc.; the contracts' requirements to tare and marks should be taken into consideration in this information. All necessary customs, cargo covering transport documents as well as quarantine and other certificates including declarations and IMCO certificate to be presented by the cargo owners (their forwarders or representatives) for enclosure while cargo transfer.

Settles questions and problems with the customs concerning opening of cargo pieces/containers to perform inspection by the demand of the authorized bodies.

4.4. A cargo owner shall provide the examination of entering import cargoes according to norms of quality and to microbiological, radiochemical, toxicological and hygienic indices. On this ground the permission for discharging of transport vehicles and dispose of cargoes, sub-standard lots, remains and sweepings to be agreed with corresponding bodies in due time.

Duly concludes an agreement with survey companies on participation of the expert-surveyors in checking the quantity, quality and other characteristics of the goods to arrive and informs the port authorities correspondingly.

Signs tallysheets. Affixes seals (own or forwarder's ones) onto wagons/trucks leaving the port.

Settles all the problems with the receivers (without port participation) concerning the quality and quantity of the goods that have been accepted or dispatched with the surveyors, tally men of cargo owners'/forwarders' presence.

4.5. A cargo owner has to envisage in contracts a delivery of cargoes in firm,good, standard packages that conform the standars in force. This packing to be fit for carriage by all transport means with marking inscribed on each package , with the centre of gravity, warning signs and points for sling attachment marked as well.

Settles problems with the sea and/or railway carriers concerning the goods in a defected/damaged tare.

4.6. To provide repacking in the port, a cargo owner shall furnish the port with spare packages (bags, cases, cardboard boxes, barells, etc) in the quantity needed. In due time delivers an order to the port for re-packing of the damaged pieces or repairing.

Export, transit and re-export cargoes.

4.7. The port accepts and releases the documents covering the wagons with export goods on behalf of cargo owner and against his proxy.

The port's obligations are as follows:

Discharging of the cargo owner's goods from the wagons, motor vehicles and other transport means, dismounting of special attachments and discharging of spare packages.

Cleaning of the discharged wagons, hacking and loosening of adfreezed and long-layed bulk cargoes at the cargo owners' or forwarders' cost.

4.7.1. Acceptance for storage from railway wagons and other transport means of packages and cases being in good condition and received to a cargo owner's adatedress by only counting them and not weighing and subsequent shipment of this cargo for export without checking the weight of cargo.

Inspection of the packages damaged shall be executed for the cargo owner's account.

4.7.2. Acceptance of the general cargo arrived in the port with 'in bulk' indicated in 'number of packages' column of a waybill when it's impossible for the port to calculate the number of pieces before the wagon's discharging, shall be carried out by counting the packages by an expert of the Chamber of Commerce or a surveyor of an indepen- dant organization invited for a cargo owner's account. If a cargo owner invites neither of them, the port shall accept the cargo by only counting the wagons and actual number of pieces in each wagon and shall not be responsible for the number of pieces and their weight in the discharged wagon.

In this case, 'Notice of the wagons use' is filled in by a port's and railways' representative at the time the wagons are taken away by the railway station locomotive. This procedure is regulated by the “ Rules on using the wagons and containers “ approved by the Order of the Ministry of transport of Ukraine, No 113, dated Feb. 25,1999. Once the differences in number and weight found out, the port issues 'General report' and presents it to cargo owner or his representative or forwarder.

4.7.3. Acceptance of bulk cargoes from adjoining transport facilities shall becarried out in accordance with the regulations in force, unless otherwise agreed in the contract with a cargo owner.

Storehousing at the port's open area.

4.7.5. Storehousing and storage are performed by the port according to waggons', ships' and B/ls' lots. The cargoes are stored in the way to recount the number of pieces, if needed, can be possible.

The similar bulk and dry-bulk cargoes of the same grade can be stored in a common pile unless otherwise agreed.

Withdrawal from the records of the short cargo due to its natural loss is made by the port as per normative documents in force.

Port and cargo owner, his representative, forwarder can define other conditions of storehousing and storage by signing their mutual agree-ment.

Storehousing and storage at the port's open and sheltered area.

4.7.6. Storehousing of cargoes is made by the port separately by waybills and waggons lots (or by B/L's and ship's lots if cargoes delivered by inland waterways) so that it would be possible to recount the number of packages in case of need.

The similar bulk and dry-bulk cargoes of the same grade can be stored in a common pile unless otherwise agreed. Writing off the natural losses shall be carried out according to the norms of the standards in force.

The port and cargo owner can define other conditions of storage in accordance with their mutual agreement.

4.7.7. Issue of preliminary cargo plan for a certain ship together with a carrier in accordance with shipping orders presented by a cargo owner (his representative or forwarder). Any alteration to the preliminary cargo plan, resulting in non-fulfillment of shipping orders , presented by the cargo owners (their representative or forwarder) can be allowed as an exception as per an agreement with the latter.

4.7.8. Loading of ships according to cargo plans, regulations and instructions for cargo carriage in force with provision of the optimal loading of the ship, proper stowage and separation of B/Ls' lots in holds, their fastening, including special one on decks and holds under supervision of the latter.

4.7.9. Repacking of each package, measurement of cargoes, repairing of tare, marking, straightening, painting of each package and other works according to an adateditional cargo owner's request.

4.7.10. Cargo owner, his representative, forwarder on receiving the 'Commercial act' issued by the railway authorities shoul provide the port with its copy in every case.

4.7.11. Port issues a set of B/Ls (Mate's receipt) and cargo manifests in a sufficient quantity every time a separate B/L's lot loaded and passes them to a cargo owner, his representative, forwarder or sends to the corresponding adatedresses requested.

Issuing the B/Ls' copies (Mate's receipt) are furnished by the port at a fixed price which covers all the B/Ls' copies (Mate's receipts) including those ones required by the customs rules at the port of destination.

As an exception, sometimes, a cargo owner, his representative, forwarder issues himself a set of B/Ls (Mate's receipts) and makes an adateditional note about it.

B/Ls (Mate's receipts) with 'the cargo gross weight' obligatory mentioned are issued by a cargo owner, his representative, forwarder in a full set required for handling to all users in accordance with the normative documents in force.

A cargo owner, his representative, forwarder should inform the port in a written about all adateditions, amendments being inserted to the B/L (Mate's receipt) after signing a shipping order by a vessel's master.

Based on this presented letter, the port issues a manifest with the required adateditions, amendments inserted. A cargo owner, his representative, forwarder bears all responsibility for the supplements and amendments (remarks) inserted as for the quantity and condition of the cargo in the B/L (Mate's receipt) signed by a vessel's master.

All the claims and disputes, if any, are solved by a cargo owner, his representative, forwarder without the port's participation.

4.8. The cargo owners' obligations are as follows:

4.8.1. In case of need, participation in agreement of conditions of the cargo delivery on board with shipowners.

4.8.2. To stipulate in the contracts chartering of ships fit to carry the certain cargo on the basis of the contract concluded with the port.

4.8.3. To provide preliminary payments for handling and storage of cargoes in the volumes not less than delivered during a month and to provide the port with funds to pay to the railway administration in accordance with the Statue of railway transport and carriage rules.

4.8.4. To provide proper railway bills with indication of the followings:

• cargo owner's name, number of the contract concluded with the port or the forwarder's name
• country of destination;
• number of contract, specification, number of manufacturer's order;
• export license number, if requested;
• number and weight of packages;
• weight and method of its measurement for bulk and dry-bulk cargoes.

The column 'Consignee' should contain the cargo owner's name (his representative or forwarder), his code registered by Donetsk railways as per 'Instructions on coding the railway station's facilities, shippers' names, receivers' names and cargoes on the railways' with the special note on the waggons' delivery to the port railroads. To sign 'A notice of the waggons' (containers') use 'together with a representative of the railways in accordance with the 'Rules on using the waggons and containers' approved by the Order of the Ministry of transport of Ukraine, No.113, dated 25.02.99.

Before 48 hours to commence a vessel's loading, to provide the port with a shipping (loading) order duly proved by the custom as well asthe cargo lists for each shipping lot delivered to the port for a furthersea carriage. This should contain:

• shipper's and consignee's name and adatedress;
• port of destination name of goods, number of pieces, type of packing, mark, symbols, weight(gross, net), cargo volume, conditions of cargo and packing or remarks, if absent;
• information on the enclosed documents that should be in the ship's bag.

To make entries into a shipping/loading order that the quantity of bulk and dry-bulk (as well as pig iron, scrap, ferroalloys and etc) and liquid is performed by a draft survey ordered by a cargo owner, his rep- resentative, forwarder.

If the cargo declared in a shipping (loading) order was weighted by the port on accepting it from a shipper, a shipping (loading) order should contain a note – “ the weight checked “. If the cargo was accepted without checking the weight, a note – 'the weight as per ship- per's statement' should be fixed in.

Shipping orders and other documents covering dangerous goods should be issued in accordance with IMO and MOPOG Rules.

Port doesn't accept the orders with all necessary data missed, if any.

Such orders are returned to a cargo owner, his representative, forwarder with the reasons pointed.

4.8.6. To settle with the railways all the matters concerning the reconsigning of the goods by effecting the corresponding payments to the port and railways.

4.8.7. To take all measures to dispatch the goods from the port within the terms stipulated by the agreement.

4.8.8. To provide the settlement of all the border, customs, quarantine, veterinary, ecology and other formalities concerning the goods.

4.8.9. To provide the port with information on vessels' arrival for loading (discharging) not later than 4 days before arrival. If sailing to the port takes less than 4 days, a cargo owner, his representative, forwarder informs the port immediately on receiving such information from a vessel.

Import, transit and rejected for export cargoes.

4.9 The port's obligations are as follows:

4.9.1. Transshipment of the grain, seeds of agricultural plants, grist in bulk 'from' or 'into' river vessels, barges, motor vehicles are performed by a direct scheme or via port's storehouses (shore, floating).

Transshipment of perishable, limited and dangerous cargoes (listed in IMO, MOPOG), raw sugar, non-ferrous metallurgical concentrates in bulk, chemical cargoes in bulk and etc., shall be carried out by a direct scheme only.

4.9.2. Acceptance of the cargoes by B/Ls.

General cargoes are accepted onboard a vessel by visual inspection with marking checked and obligatory double counting performed by port'stallymen and ship's representative.

Packed and parceled goods are accepted by a standard or templatedweight indicated on the cargo pieces or by an average B/L's weight ifinformation about each cargo piece is absent.

The packages arrived in damaged tare with an access to the contents orwith any signs of stealing or if their actual weight does not correspond tothe weight shown in B/Ls shall be accepted by reweighing and recountingwith participation of the ship's, port's and custom's representatives totally.

On the request of cargo owner (his representative or forwarder) or on thewritten demand of the inspecting organizations, the port shall arrangepartial or control re-weighing and , as an exception , total re-weighing ofthe certain cargo lots (meat, fresh vegetables, fruits) with issuing the tally sheets and weighing reports.

Reimbursement for expences to the port connected with goods' re-weighing and payment for experts' work is to be done for a cargo owner's,his representative's, forwarder's account.

The quantity of bulk and dry-bulk cargoes shall be stated by the port inGeneral Statement as a result of draft survey without re-weighing.

The actual weight of bulk and dry-bulk cargoes is measured and calculatedby a port's, cargo owner's representative or his forwarder together with arailway station's representative. This is performed on the scales owned byMariupol railway station while delivering the goods to the railways or on themotor vehicle scales while delivering at the spot.

Arrangement of fumigation of cargoes of livestock or vegetable nature onboard or in containers as well as fumigation of containers used for this kindof cargoes shall be carried out at the request of a cargo owner (his repre-sentative or forwarder) in accordance with the port's Rules in force.

4.9.4. Shipment of import cargoes by any kind of transport: by railway, motor vehicles, as well as delivery of those cargoes on the spot (site) shall be carried out in accordance with a cargo owner's, his representative's or forwarder's delivery orders.

Settlement of the questions on delivery of the less than wagon load lots to be effected by a cargo owner (forwarder) without port's participation.

The shipment documents should bear the cargo owner's name (or his forwarder's) , description of the cargo, code and adatedress.

Sealing of the waggons with import cargoes shall be carried out by a cargo owner or his forwarder with their own seals.

Shipment of import cargoes within the terms stipulated in the contractwhen transport vehicles are provided by a cargo owner (his forwarder).

In case of any shipment delay, not depending on the port (coordinationof special conditions for carriage of the cargo in damaged tare, absenceof necessary documents or drawings, fumigation, expertise, making ofspecial appliances and so on), the shipment shall be carried out after deleting of the above causes and according to agreement with a cargoowner (his representative or forwarder) or under his guarantee.

4.9.5. Re-adatedressing and re-delivery of the cargo shall be fo the account of the port, if the latter is at fault in delivery the cargo to a wrong adatedress or for the account of a cargo owner if above occurred at his fault.

4.9.6. Fastening and separation of the cargoes aboard aboard and in waggons shall be carried out in accordance with technical requirements being in force for a certain type of transport means. Special fastening as well as the materials used for this purpose shall be for account of a cargo owner.

4.9.7. Shipment and delivery on site of the cargoes rejected for export shall be carried out in accordance with the waybill issued by a cargo owner.

4.9.8. Repair of tare, re-packing of the cargoes into spare tare provided by a cargo owner, marking and re-marking, obtaining of specifications, sorting of cargoes and tare which defective condition is recorded in Statement Notices and other documents shall be carried out at the request of a cargo owner (his representative or forwarder) and for his account. Repair of the tare damaged by the port to be carried out for the port's account.

4.10. A cargo owner's obligations are as follows:

4.10.1. To provide the port within the terms as per Section 1 of this Code with information about the cargoes arrived aboard the vessels, chartered by foreign firms, irrespective of their ownership, with indication of cargo's description, number of packages and their weight, description of cargo's location in holds and heavy packages as well, if any.

4.10.2. To provide acceptance of the cargoes being unloaded by the direct scheme as well as delivery of the transport means to take the goods out of the port that adatedressed to a cargo owner with further sealing by his own seals. A cargo owner must take out the import cargoes accepted by the port for storage within 10 days from the day of acceptance unless otherwise agreed with a cargo owner.

4.10.3. To settle with a carrier and port the conditions of shipment or transfer on site of the goods arrived to the port in tare and packing unfit for further safe transportation, i.e. damaged, with signs of wetting, with unproper marking or absence that to be confirmed by Statement Notices as well as without necessary certificates or other documents covering such cargoes. To coordinate with transport companies and port the way and procedure of handling and transportation of perishable and specific goods prior to shipment as per a contract.

4.10.4. To provide a preliminary agreement with transport organization the conditions of transportation of oversized and heavy lifts cargoes. To ensure the port with elaborated and approved designs for the railway transportation and those ones for the sea carriage as well.

4.10.5 To settle with a receiver all the problems concerning cargoes' quantity defined in the port by experts without port's participation.