6. Packing and Marking

The general rule in all packing is to make goods secure for the kind of journey they have to make, but also to keep package as small and light as possible.

e.g. Packing in which the cigarettes are shipped must secure full safety of the goods and protect them from damage during transportation by all means of transport and transshipment en route as well as to protect the goods from atmospheric effects. The face side of each carton box shall be marked with indelible paint, as follows:

contract №;

Sellers1 and Buyers' names;

brand and quality of cigarettes;

gross and net weight.

The boxes, individual packing of goods as well as articles must bear no marks or symbols which have no relation to the object of the present Contract.

7. Claims

e.g. In case of shortage while packing or in case of nonconformity of the quality of the goods to the samples, the Buyers have the right to claim on the Sellers within 180 days on the arrival of the goods to Russia. The Parties agreed that the Inspection Report drawn up by the Chamber of Commerce and Industry, Russia, Moscow, will prove the claim.

The Sellers are to examine the claim within 15 days. Should the Sellers fail to send a reply on expiration of the said period, the claim will be considered as admitted by the Sellers and its sum deducted from the 3 % sum.

While claiming for an inferior quality of the goods the Buyers return the faulty goods to the Sellers with deduction of 10 % penalty of the returned goods.

The cost of the defective goods or shortage while packing, being intact, penalty and also transport charges are deducted by the Buyer from the 3% sum. In case the sum of 3% proves to be insufficient to cover the claim and penalty, the Sellers are to remit the balance due to the Buyers within 15 days from the date of receipt of the claim.

All transport and other charges connected with delivery and return of defective goods are to be paid by the Sellers.

8. Sanctions

e.g. In case of a non-delivery of the goods in respect of firm of delivery fixed in the Contract, the Sellers must pay to the Buyers a fine of 0.1% of the value of the goods in delay per day of delay. If the delay exceeds 30 days, the charging of the fine is stopped and additionally to the sum of the fine the Sellers must pay the Buyers a penalty of 2% of the value of the goods in delay.

The payment of the fine does not release the Sellers from the obligation to deliver the goods in delay. If the delay in shipment is caused because of delays in the vessel's arrival dates then there will be no sanctions against the Sellers. In the case of delivering of defective goods, the Sellers pay the Buyers an additional 2% fine of the value of the goods admitted defective to the payment of the claim value. Besides, the Buyers shall have the right to return the defective goods on the Sellers' account.

The Sellers shall pay the Buyers a fine of 1 % of the value of the goods in respect to which there were Infringements:

a) the goods have been shipped In packing and/or with marking not meeting the Contract terms or conditions;

b) the assortment of goods is incorrect.

The payment of the fine does not release the Sellers from Compensating the Buyers for the losses the latter has sustained due-to the Sellers' non-observance of the above mentioned Terms and Conditions of the Contract.