Terms & Conditions
International business agreements, Incoterms 2020 rules, letters of credit (L/C), agricultural weight tolerances, and legal obligations for VGF Global shipments.
1. Scope of Agreement
Unless otherwise agreed in a separate, written corporate contract stamped and signed by VGF Global officers, all international quotations, order confirmations, proforma invoices, and fresh produce export shipments are governed strictly by these standard terms.
2. Incoterms 2020 Cargo Risk Allocation
We operate primarily under the International Chamber of Commerce (ICC) INCOTERMS 2020 guidelines. Unless explicitly marked otherwise on the proforma invoice:
- FOB (Free On Board) - Nhava Sheva / JNPT: VGF Global delivers the cargo and clears customs at Nhava Sheva port. Risk passes to the buyer as soon as the container crosses the ocean vessel’s rail.
- CIF (Cost, Insurance & Freight) - Destination Port: VGF Global pays marine freight and basic insurance to the designated terminal. The buyer handles import custom clearances, local duties, and post-discharge transport.
- CFR (Cost & Freight): Similar to CIF, but marine insurance is fully underwritten and arranged by the buyer.
3. Produce Specifications & Quality Tolerances
Fresh agricultural produce (apples, grapes, pomegranates, or onions) are naturally dynamic living products. VGF Global ensures that all products leave Indian packing plants meeting Grade-A APEDA/NPPO parameters. However:
- Natural Desiccation Loss: A natural weight shrinkage tolerance of up to 2-3% on grapes and 1-2% on onions/apples is standard for long maritime voyages and will not form grounds for damage claims.
- Residue Standards: Shipments are tested and certified residue-free at source. The buyer must ensure their destination territory is compliant with local Maximum Residue Limits prior to vessel locking.
4. Financial Terms & Documents
Export operations will only begin once clear financial coverage is secured:
- T/T Payments: Standard 30% advance deposit with balance payable upon presentation of scanned original Bill of Lading (OBL) and packaging lists.
- Letters of Credit (L/C): Irrevocable Letters of Credit, payable at sight, issued by prime international banks, are fully accepted. Terms must match our raw shipping manifests exactly.
5. Force Majeure & Jurisdiction
Neither party shall be held liable for delay or default in packing or handling caused by strikes, lockouts, blockades, terminal delays, naval re-routing, extreme climatic frosts, or governmental bans on export. Any litigation or trade dispute arising from transactions with VGF Global will be resolved strictly under local court jurisdiction in Mumbai, India, or under international arbitration guidelines.