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COMMERCIAL GOVERNANCE · GLOBAL SUPPLY CONTRACT

Terms & Conditions of Sale,
trade governance & supply terms.

Official commercial contract framework, international export rules, Incoterms 2020 delivery standards, and institutional buyer commitments governing all dehydrated onion, garlic, fried onion, and spice ingredient supplies.

Effective: October 2026 APEDA & FSSAI Registered Incoterms 2020 Aligned
Legally Binding Published: October 2026 · Version 2.4
1

Merchant Identity, Role & Contractual Scope

These General Terms and Conditions of Sale and Supply govern all commercial contracts, proforma invoices, trade confirmations, and export shipments entered into by Pure Foods Ingredients ("Pure Foods", "Company", "Merchant", or "Seller"), registered in Bhavnagar, Gujarat, India, with institutional buyers, food blenders, industrial manufacturers, and distributors worldwide ("Buyer").

Pure Foods operates as an accredited merchant supply partner, sourcing agricultural commodities from certified dehydration plants across Gujarat's Mahuva-Bhavnagar agro-belt. These terms apply to all transactions to the exclusion of any terms proposed by the Buyer, unless expressly agreed upon in writing and signed by an authorized director of the Company.

2

Commercial Quotations, Validity & Order Formation

All quotations, price indications, crop availability estimates, and delivery schedules issued by our Trade Desk are commercial invitations to treat and remain subject to final confirmation:

  • Validity Window: Unless otherwise specified in writing, formal commercial offers remain valid for a maximum of 14 calendar days due to agricultural raw bulb mandi volatility, currency fluctuations, and international maritime freight surcharges.
  • Binding Agreement: A binding contract is formed only upon the Buyer's receipt of our formal countersigned Sales Confirmation or Proforma Invoice (PI) accompanied by the agreed advance financial instrument.
  • Custom Specifications: Orders requiring custom granulometry, specialized moisture thresholds (< 4.0%), irradiation treatment, or private label packaging must be defined in writing prior to proforma execution.
3

Minimum Order Quantities (MOQ) & Packaging Standards

Our export commercial desk is structured around Full Container Load (FCL) maritime deliveries to optimize freight efficiency and preserve microbiological purity during international transit:

  • 20ft Standard Container (FCL): 7.5 to 14.0 Metric Tons (MT), depending on product volume bulk density (flaked kibble vs. minced vs. powder).
  • 40ft High Cube Container (HC FCL): 18.0 to 24.0 Metric Tons (MT) for compacted powders, granules, and fried onion lots.
  • Trial & Pilot Shipments (LCL): Less-than-Container-Load palletized consignments (minimum 1,000 kg) are accommodated for laboratory evaluations, pilot formulations, and regional distributor trials.
  • Primary Barrier Packaging: Heavy-gauge virgin food-grade poly-liner bags inside multi-ply craft paper bags or corrugated export cartons (14kg, 20kg, 25kg standard nets).
4

International Commercial Delivery Terms (Incoterms 2020)

All international deliveries are interpreted in accordance with the International Chamber of Commerce (ICC) Incoterms 2020 rules. Standard offered trade bases include:

  • FOB Indian Port (Free On Board): Mundra Port (Gujarat), Pipavav Port (Gujarat), or Nhava Sheva / JNPT (Mumbai). Pure Foods bears all costs, export duties, and risks up to the moment goods pass over the vessel rail at the loading terminal.
  • CFR Destination Port (Cost and Freight): Pure Foods arranges and pays for ocean carriage to the nominated overseas discharge port. Risk transfers to Buyer upon container loading at the Indian origin port.
  • CIF Destination Port (Cost, Insurance and Freight): CFR terms augmented with marine cargo insurance covering Institute Cargo Clauses (A) all-risk terms for 110% of invoice commercial value.
5

Product Tolerances, Moisture Targets & Retained Samples

Agricultural commodities are naturally subject to subtle chromatic and seasonal variations. All goods delivered conform strictly to the parameters codified in our official Technical Data Sheet (TDS):

  • Moisture Limits: Guaranteed maximum moisture content of 5.5% for dehydrated onion and garlic flakes/powders (or < 4.0% for super-dry export grades).
  • Mesh Granulometry: Particle sizing follows ASTM / Tyler standard wire sieves with allowable ±3% mesh retention variance.
  • Retained Batch Samples: A sealed representative reference sample from every production run is retained in climate-controlled storage for 12 months for verification against pre-shipment approvals.
6

Payment Terms, Banking Instruments & Default

To secure raw farm-gate arrivals and manufacturing schedules, commercial transactions are backed by established international banking mechanisms:

  • Irrevocable Letter of Credit (LC): Confirmed, irrevocable LC at sight issued by an internationally rated Tier-1 commercial bank, allowing 21 days presentation from Bill of Lading date.
  • Telegraphic Transfer (TT / Wire): 30% advance deposit upon Proforma confirmation; balance 70% payable against scanned copies of non-negotiable shipping documents (BL, COA, Phytosanitary Certificate).
  • CAD / Open Credit: Available exclusively to accredited multinational corporate partners with proven trade history and insurance underwriting under ECGC (Export Credit Guarantee Corporation of India).
  • Late Settlement: Overdue accounts incur interest at 1.5% per month or the maximum permissible statutory rate under Indian commercial law.
7

Quality Inspection, NABL Testing & Export Certification

Every export shipment is accompanied by batch-traceable official documentation:

  • Standard Pack: Clean on Board Ocean Bill of Lading (3/3 set), Commercial Invoice, Packing List, Certificate of Analysis (COA), Certificate of Origin (Chamber of Commerce / APEDA), and Plant Quarantine Phytosanitary Certificate.
  • Third-Party Surveyor: The Buyer possesses the right, at its own expense, to appoint an independent inspection agency (e.g., SGS, Bureau Veritas, Geo-Chem, or Intertek) to draw samples and verify container stuffing at the factory or port prior to dispatch.
8

Force Majeure & Crop Vagaries

Neither party shall be liable for non-performance or delayed fulfillment resulting from events beyond reasonable control, including but not limited to catastrophic crop failures, monsoon disruptions, unseasonal cyclone damage, maritime canal blockades, war, embargoes, export bans imposed by the Directorate General of Foreign Trade (DGFT), strikes, or pandemic lockdowns.

The affected party shall promptly notify the other in writing within 5 business days, providing supporting documentation from regional agricultural boards or authorities.

9

Title, Risk of Loss & Destination Demurrage

Title and property in the goods remain with Pure Foods until the full contract purchase price is settled in cleared funds. Risk of physical loss or moisture degradation transfers strictly according to the agreed Incoterms 2020 clause.

The Buyer is exclusively responsible for timely import clearance, local customs duties, and container destuffing at the destination port within the shipping line's standard free days. Pure Foods shall not be liable for port storage, terminal demurrage, or detention surcharges caused by the Buyer's documentary delay.

10

Governing Law & Dispute Resolution

These terms and all underlying contracts shall be governed by and construed in accordance with the laws of the Republic of India. In the event of any commercial dispute or controversy arising out of or in connection with supply contracts:

  • The parties shall first endeavor to resolve the dispute through friendly commercial negotiation between senior executives.
  • Failing amicable settlement within 30 days, disputes shall be referred to arbitration in accordance with the Indian Arbitration and Conciliation Act, 1996. The seat and venue of arbitration shall be Bhavnagar, Gujarat, India, and proceedings conducted in English.
  • The competent civil courts in Bhavnagar, Gujarat, India shall have exclusive territorial jurisdiction over any legal proceedings.
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