Terms & Conditions
Standard terms of trade governing international B2B export contracts, sales confirmations, and direct factory supply from SA Shamim Jute Mills Ltd.
These Terms & Conditions govern the quotation, sale, manufacture, and export dispatch of all jute products—including food-grade cocoa bags, sacking sacks, hessian cloth, and precision yarn—manufactured by SA Shamim Jute Mills Ltd (“the Manufacturer/Seller”).
Issuance of a formal Purchase Order (PO) or confirmation of a Proforma Invoice (PI) signifies full acceptance of the commercial and technical terms set forth below.
Quotations, Proforma Invoices & Contract Scope
All price quotations issued by our export desk are direct-from-mill rates calculated on prevailing raw tossa jute market indices, order volume, and agreed Incoterms 2020.
Quotations remain valid for a period of 7 to 14 calendar days from issuance unless formally extended. A legally binding export contract is executed only upon bilateral signing of a formal Proforma Invoice (PI) or Sales Confirmation specifying exact product grade, GSM, bag dimensions, packaging requirements, and payment schedule.
Minimum Order Quantity (MOQ) & Production Scale
To maintain strict operational efficiency across our 352+ heavy machine lines, our standard commercial Minimum Order Quantity (MOQ) is one 20-foot full container load (1×20′ FCL, approx. 21 MT).
Backed by our factory’s active 1,000+ metric tons monthly export capacity, multi-container consignments (40′ HC, approx. 26–27 MT each) are scheduled across phased dispatch intervals according to buyer pipeline requirements.
Quality Standards, Tolerances & Laboratory Testing
All products are produced strictly in accordance with contracted technical specifications:
- Food-Grade Packaging (VOT): Manufactured with 100% vegetable oil treated batching emulsion. Tested under German BfR Method 2009 by IJIRA Kolkata (Test Report Ref: TSR-195/2026-27), ensuring MOSH & MOAH hydrocarbon migration remains strictly below limit of detection (< LOD).
- Moisture Regain: Electronic moisture regain tests are calibrated to standard export thresholds (14%–16% standard at baling).
- Physical Tolerances: Standard international manufacturing tolerances of ±5% on weight and dimensions apply to coarse natural woven fabrics unless stricter tolerances are agreed in the written sales contract.
Pre-Shipment Inspection (PSI)
We maintain an open-door policy for certified quality verification. International buyers are entitled to nominate accredited independent inspection agencies—such as SGS, Intertek, or FIS (Federal Inspection Bureau)—to conduct pre-shipment sampling, drop tests, and container stuffing oversight at our 6+ acre Dinajpur mill campus.
Inspection costs are borne as stipulated in the Proforma Invoice. Issuance of a Clean Inspection Report by the nominated agency confirms final physical acceptance prior to container sealing.
Incoterms 2020 & Multimodal Logistics
Delivery obligations are defined in accordance with ICC Incoterms® 2020:
- FOB (Chattogram Sea Port – UN/LOCODE: BDCGP): The Seller’s export obligation concludes once cargo passes the ship’s rail at Chattogram Port, with export customs clearance completed in Bangladesh.
- CFR / CIF (Destination Port): The Seller arranges ocean freight to the nominated overseas seaport. For CIF contracts, basic marine cargo insurance is provided as agreed.
- Overland Cross-Border Corridors: Overland consignments are routed via authorized land customs stations including Benapole, Sona Masjid, Bhomra, and Banglabandha.
Payment Framework & Trade Finance
To ensure compliance with Bangladesh Bank export regulations, all international transactions must be settled through scheduled commercial banking channels using one of the following methods:
- Irrevocable Letter of Credit (L/C at Sight): 100% operative, irrevocable L/C opened through an internationally recognized prime bank, allowing transferability and third-party inspection certificates where agreed.
- Advance Telegraphic Transfer (T/T): Part advance deposit (standard 30% to 50%) upon contract signing, with remaining balance settled against copy of original Bill of Lading (B/L) prior to document release.
- Cash Against Documents (CAD): Bank-to-bank collection strictly subject to prior management credit approval.
Lead Time, Dispatch & Force Majeure
Standard manufacturing lead times range between 15 to 30 days following receipt of an operative L/C or confirmed advance deposit.
Neither party shall be held liable for failure or delay in fulfilling contractual obligations resulting from events beyond reasonable control (“Force Majeure”), including but not limited to acts of God, extreme cyclones, national labor strikes, port congestion, maritime blockades, or government export embargoes. In such instances, dispatch schedules shall be extended by the duration of the delay.
Governing Law & Dispute Resolution
These Terms & Conditions and all underlying export contracts are governed by and construed in accordance with the substantive laws of the People’s Republic of Bangladesh.
Any commercial dispute arising out of or in connection with an export sale shall first be addressed through amicable executive consultation. If unresolved within 30 days, disputes shall be referred to arbitration in Dhaka, Bangladesh, conducted in English under the arbitration rules of the Bangladesh Jute Mills Association (BJMA) or ICC International Court of Arbitration.
