General Conditions for Sales, 

Performed by Operators in Transport and/or Logistics

Article 1 – SUBJECT AND SCOPE OF APPLICATION

The present rules regulate methods of execution by “Operators in Transport and/or Logistics”, named hereinafter OTL, irrespective of the type (air transport agent, shipbroker, forwarder, transport intermediary, warehouse holder, authorized representative, worker of loading-unloading operations, customs agent, intermediary agent between transporter, transporter, etc.) operations and services, related with physical movement and/or management of movement of goods (packed or not) of any kind, origin, to any places of freely agreed price, which represents fair payment for provided services, both within the country and abroad.

Each assigned to and performed by “Operator in Transport and/or Logistics” operation shall be considered unconditionally accepted by contracting authority, without objections and in compliance with the general conditions, regulated herein below.

Notwithstanding the type of transport these General Conditions shall regulate all relations between Contracting Authority and “Operator in Transport and/or Logistics.”

“Operator in Transport and/or Logistics” shall perform requested services under the conditions, regulated particularly in Article 7 herein below.

No additional conditions or other general conditions by side of Contracting Authority can have greater legal force of these Conditions, except those officially accepted by “Operator in Transport and/or Logistics.”

Article 2 – DEFINITIONS

Within the sense of these General Conditions the concepts below are defined as follows:

2-1. – Contracting Authority:

Contracting Authority is party, signing contract about performing of services with OTL or Customs agent, and it performs function of ordering persons for particular services.

2-2. – Parcel:

Parcel means object or set of several subjects, regardless of weight, size and volume, constituting single load at delivery for transportation (container, cage, briefcase, box, container, envelope, heavy load, cask, package, pallet stabilized or wrapped with foil by Contracting Authority, roller, bag, suitcase, etc.), packed before it has been taken by OTL, even if its content is described in detail in the transport document.

2.3.  Consignment

Consignment means quantity of goods, along package and support of the cargo, which is to given in the moment to OTL and whose transportation is a responsibility of single Contracting Authority for single recipient from single point of loading to single point of unloading.

Article 3 – SERVICE PRICES

 3.1. – Prices shall be calculated based on information, provided by Contracting Authority taking into account offered services, type, weight and volume of consignment and utilised routes. Prices shall be calculated according to the official exchange rate of the Bulgarian National Bank in the moment of offer presentation. They are also subject of subcontractors’ conditions and rates, as well as laws in force, regulations and international conventions. In case of change of one or several basic elements, after prices have already been offered, including by OTL’s subcontractors and if they contradict to interests of the latter with provided evidence, the prices initially offered shall be changed under the same conditions. It shall be done the same in case of unforeseen event, regardless of its nature, which leads to change in performed service, including fuel price, whose change must be taken into account according to information, available on the web site of http://www.lukoil.bg/Lukoil/Main.do.

3.2. – Prices shall not include fees, taxes, duties, excise and other sums of this kind due under regulations in force.

3.3. – Initial agreed prices shall be renegotiated at least once after signing the contract. They may be reviewed in case of significant change in costs of OTL, costs that are most often affected by conditions  external for OTL, such as fuel prices, as mentioned in the previous paragraph (3.1.). If parties fail to agree about new tariff conditions, each of them can terminate the contract under the conditions, specified in Article 12 herein below.

Article 4 – INSURANCE OF GOODS

OTL shall conclude insurance contract on behalf of Contracting Authority for each consignment, only when requested in writing by Contracting Authority, specifying risks and the amounts to be covered by insurance.

When there is already such a written request, OTL shall conclude insurance contract with insurance company, which is known to be solvent at the time of insuring. In absence of precise specification there shall be insured only ordinary risks (beyond risks of war and strike).

In this particular case OTL cannot be considered as insurer, because it is in the capacity of authorized representative. Conditions of insurance contract shall be deemed known and approved by senders and recipients, which bear all costs of concluding insurance contract.

Article 5 – PERFORMANCE OF SERVICES

Dates of departure and arrival are provided by OTL only for information. Contracting Authority is obliged to give timely necessary and correct instructions to OTL about performance of active transport and additional services and/or logistic services. OTL is not obliged to check documents (commercial invoice, packing list, etc.), provided by Contracting Authority. All specific delivery instructions (payment upon delivery, etc.) shall be subjected to written and repeated order for each consignment and must be explicitly approved by OTL. These additional instructions only complement  main transport service and/or logistics service

Article 6 – OBLIGATIONS OF CONTRACTING AUTHORITY

 6.1. – Packing and Labeling:

6.1.1. – Packing:

Consignment must be prepared under appropriate conditions, packed, marked with stamp or second stamp in way to endure transport and/or storage operations, carried out under normal conditions, as well as successive relocation activities that are part of those operations.

Consignment must not be dangerous for personnel, performing transportation and relocation, for environment, security of vehicles, other transported or stored consignments, vehicles of third parties. Contracting Authority is responsible for the manner of consignment packing and adaption to endure transport and relocation. If Contracting Authority gives to OTL consignment that does not meet the above requirements, it shall be transported to the risk of Contracting Authority and OTL is not responsible for any damages.

6.1.2. – Labeling:

Each parcel and consignment must be clearly labeled, so that sender, recipient, place of delivery and type of consignment can be immediately and explicitly identified. Inscriptions on labels must comply with those which written in the transport document.

6.1.3. – Responsibility:

Contracting Authority shall be responsible for any loss, tampering or defect in preparation, packing, marking or labeling of consignment.

6.2. – Sealing:

Upon completion of loading, complete trucks, trailers, movable cages and containers must be sealed by the person who loads or by his representative.

6.3. – Additional Obligations:

Contracting Authority is responsible for all consequences of the fact that it has not followed obligations to provide information and declare exactly the type of consignment and its specifics, when the latter requires special conditions about its value, risk of eventual damage of consignment and danger that consignment may harm third persons, especially when it is related to dangerous and fragile consignments. On the other hand, Contracting Authority is expressely obliged not to give to OTL illegal or prohibited goods (such as false goods, drugs, etc.).

Contracting Authority shall bear alone without OTL all consequences, whatever they may be, when there are wrong, incomplete, inapplicable or lately presented documents, including information, needed for handing over required summary declaration by customs authorities, particularly when transporting goods, coming from third states.

6.4. – Reserves:

In case of loss, damage or any consignment damage, delay of performance of order, the recipient or  the person who accepts the goods shall draft valid comprehensive written protocol, noting all motivated reserves and shall perform all necessary actions to protect his rights and legitimate interests in accordance with all legally regulated procedures and terms. Otherwise OTL or its subcontractors are not responsible.

6.5. – Refusal of Obligation Performance by Recipient:

If recipient refuses to accept goods and in case of violation of its obligations for whatever reason, all initial and additional costs due and made ​​by OTL or  its subcontractors in this regard shall be paid by Contracting Authority.

6.6. – Customs Formalities:

If customs operations must be performed, Contracting Authority does guarantee to customs agent, that it shall indemnify him for all damages and additional costs, resulting from wrong instructions, inapplicable documents, etc., in general leading to termination of rights and/or imposing additional fees, penalties, etc. by relevant competent state or municipal authority.

When imposing customs duties on goods, according to concluded and signed by European Union preferential regime, Contracting Authority does guarantee that it is fully aware of the provisions of the Community Customs Code, which aim to ensure that all conditions of processing of the preferential regime has been observed.

Upon request of OTL Contracting Authority shall provide to OTL within the prescribed period all required information under the customs regulations. Contracting Authority is responsible for all unfavorable consequences of delay, additional price, damage, etc, if the information is not provided within that period.

Contracting Authority is responsible for compliance with rules about quality and/or technical standardization of goods and it is obliged to provide OTL with all required documents by legislative authorities for goods movement (tests, certificates, etc.). OTL is not responsible if goods do not conform to quality standards and technical standardization.

Authorized customs agent releases consignment in its capacity of direct representative and in accordance with Article 5 of the Community Customs Code .

Article 7 – RESPONSIBILITY

 7.1. – Responsibility of Subcontractors:

OTL’s responsibility is limited to that of subcontractors within the scope of authorized operation. When the amount of compensation limits for intermediaries or subcontractors are not known or do not come from obligatory or legally regulated provisions, they are considered identical with those fixed in Article 7.2 herein below.

7.2. – Personal Responsibility of OTL:

The limits of compensations listed below of OTL’s responsibility.

7.2.1. – Loss and Damages:

In all cases when OTL bears personal responsibility, regardless of reasons and grounds, it is strictly limited to the following: any damages to consignment, done by transport operation, which led to losses and damages and all consequences, that may directly result from this, to the upper limit of compensation, regulated in laws in force and other regulations, applicable to the relevant transport.

7.2.2. – Other Damages:

For all other damages, including damages due to properly found late delivery and provided that OTL is personally responsible, the latter owes indemnification for damages to the amount of the transport price of consignment (if there are any accrued rights, fees and other additional costs) or up to the service price before the damage, subject of the contract. This compensation may not exceed the compensation due in case of loss or damage to goods in accordance with applicable regulations.

For damages, resulted of guilty violation of performance of logistic service, subject of the contract, OTL’s personal responsibility is limited to the particular service price, but not more than BGN 60 000  per event .

In no case OTL’s responsibility cannot exceed amounts, fixed herein above.

7.3. – Quotation:

All presented prices, all given offers for prices, as well as general rates have been agreed taking into account liability limitations, specified herein above (7.1. And 7.2.).

7.4. – Insurance on Value:

Contracting Authority can instruct OTL according Article 4 (Insurance of Goods), to sign on its behalf and at its expense insurance through payment of relevant premium, and clarifying risks to be covered and values ​​to be guaranteed. The instructions (declaration of value or insurance) must be renewed for each operation, unless expressly agreed upon conclusion of subscription contract.

Article 8 – SPECIAL TRANSPORTS

For special transports (transport in cisterns, transport of indivisible objects, transport of goods, perishables in temperature regime, transport of live animals, transport of vehicles, transport of goods, subject to specific rules and particulary transport of dangerous goods, etc.) OTL shall provide particular specialized equipment, according to reliminary information, provided by Contracting Authority.

Article 9 – PAYMENT RULES

 9.1. Service price shall be paid by Contracting Authority via bank transfer or in cash upon receipt of invoice, without discount, at place of issuing. Contracting Authority is obliged to guarantee its payment with legally acceptable securities upon OTL’s request.

9.2. Unilateral compensation of value of alleged damages with due service price is not allowed.

 9.3. To each payment delay with a day after agreed date of invoice maturity, it shall be charged with penalty interest of 14% per year, as well as with fixed penalty for recovery costs in amount of BGN 40.

9.4. With each partial payment on agreed date of invoice maturity, Contracting Authority’s obligation shall be deemed as covered in the following succession: expenses, penalties, interests, principal sum.

Article 10 – POSSESSORY LIEN

Regardless of the reason for OTL’s intervention, Contracting Authority explicitly acknowledges possessory lien, which implies total and permanent possessory lien on all consignments, which ensures covering of all Contracting Authority’s obligations (expenses, penalties, interests, principal sum).

Article 11 – TERM AND TERMINATION

 11.1. In case that between Contracting Authority and OTL has been signed a permanent contract, which establishes lasting relations, which the parties wish to build between them, this contract may be terminated at any time by either party by sending a registered letter with acknowledgment of receipt with one month’s notice, when past six months have passed since the contract signing. Notice shall increase its term to two months, if it has been passed more than six months but less than one year since the contract signing. When relations between the parties continue more than a year notice shall increases to three months, to which shall be added a single month for each year when relations, last more than two years.

11.2. – During notification period the parties are obliged to follow their financial obligations under this contract.

11.3. – If there are serious and repeated, proven by any of the parties, violations of commitments and obligations, the other party is obliged to send a reasoned notice by registered letter with acknowledgment of receipt. If it does not enter into force within one month, a period when both sides may try to smooth relations between them, it can permanently terminate the contract without notice and compensation by registered letter with acknowledgment of receipt and taking into account the fact that attempts to resolve the dispute have failed.

Article 12. – CANCELLATION – INVALIDITY

If any provision of these General Conditions about Sales is announced invalid or is not drafted in writing, all other provisions shall remain valid and applicable.

Article 13. – APPLICABLE LAW

All arisen disputes or objections shall be solved by the competent court of OTL’s registration, even if there are many defendants.

All matters not provided in this contract shall be ruled by the Bulgarian Civil Legislation.

Current General Conditions about Sales shall replace all general conditions, published before and shall come into force from 01 January 2015.