Rice Trading & Freight Terms

In these terms:

• “Goods” — the Basmati rice and related products supplied by Medad-X;
• “Buyer” — the party purchasing the Goods;
• “Contract” — the signed order confirmation or pro-forma invoice together with these terms;
• “Incoterms” — Incoterms® 2020 as published by the International Chamber of Commerce.

Quotations are indicative and valid only for the period stated, subject to prior sale and stock availability. A binding contract arises only upon Medad-X’s written order confirmation. Origin-market price movements, currency fluctuations and freight rates may affect any unconfirmed quotation.

Prices are stated in US Dollars or Saudi Riyals as specified and, unless otherwise agreed, are quoted on the applicable Incoterms basis exclusive of destination duties and taxes. Saudi VAT and any GCC import duties are payable by the Buyer.

Unless otherwise agreed in writing, payment is made by one of the following:

• Irrevocable Letter of Credit (L/C) at sight, confirmed by a first-class bank;
• Telegraphic Transfer (T/T) — advance deposit with balance against shipping documents;
• Cash Against Documents (CAD) through nominated banks.

Delivery is made on the agreed Incoterms® 2020 basis — commonly FOB, CFR or CIF a named port. The applicable rule, load port and destination port are stated in the contract and determine the transfer of cost and risk between the parties. Title passes only upon receipt of full payment in cleared funds.

Where Medad-X arranges carriage, it will nominate a suitable vessel or container line and book freight to the agreed destination port. Estimated shipment and transit times are given in good faith but are not guaranteed. Partial shipments and transhipment are permitted unless the contract states otherwise. Demurrage and detention at destination are for the Buyer’s account.

Goods conform to the specification stated in the contract — including variety, grain length, moisture content, broken percentage and admixture — within customary commercial tolerances for a natural agricultural product. Colour, aroma and cooking behaviour may vary naturally between crops and seasons.

Quality and weight may be certified at the load port by an independent surveyor (such as SGS or Intertek), whose certificate is final and binding as to condition and quantity on shipment. Buyers requiring additional pre-shipment inspection may arrange it at their own cost.

Goods are supplied in new packaging (typically 40 kg polypropylene bags, or as specified) marked in accordance with destination requirements. The shipped weight certified at origin governs the contract; natural weight variation in transit is not a valid ground for claim.

Standard shipping documents include:

• Commercial invoice and packing list;
• Full set of clean “on-board” Bills of Lading;
• Certificate of Origin;
• Phytosanitary certificate;
• Halal certificate where applicable;
• Any certificates required for SFDA and destination customs clearance.

Risk in the Goods passes to the Buyer in accordance with the agreed Incoterms rule. Notwithstanding the passing of risk, legal title remains with Medad-X until the full contract price has been received in cleared funds.

The Buyer must inspect the Goods on arrival. Any claim as to quality or condition must be notified in writing, supported by independent survey evidence, within 14 days of discharge at the destination port; shortage claims must be supported by the outturn report. No claim is accepted after the Goods have been processed, re-bagged or resold.

Under CIF sales, Medad-X arranges marine cargo insurance for 110% of the CIF value. Under FOB and CFR sales, insurance is the Buyer’s responsibility from the point at which risk passes.

Neither party is liable for failure or delay caused by events beyond its reasonable control — including crop failure, export bans, port closures, war, epidemic or acts of government. The affected party will notify the other promptly, and obligations are suspended for the duration of the event.

These terms and each supply contract are governed by the laws of the Kingdom of Saudi Arabia. The parties will seek to resolve disputes amicably; failing which, disputes shall be settled by arbitration under the rules of the Saudi Center for Commercial Arbitration (SCCA) seated in Riyadh, or, where agreed, before the competent Saudi courts.