§ 6. Checking of the quality and quantity, claims.

6.1. The Buyers shall have the right to carry out at their expense the checking of quality and quantity of the shipped Products under the acceptance rules in accordance with the relevant standards, indicated in the Specification.

6.2. The Buyers shall have the right, for their account, to involve independent inspection companies in inspecting of the Products quantity and quality in the point of transfer. In this case inspection of the Products quantity and quality shall be only performed in the presence of the Sellers' representative or authorized person and the result of inspection of the Products shall be reported in the Commercial Act.

6.3. In the event of discovering the shortage in weight and/or the non-conformity to the quality, indicated in Specification, the Buyers shall have the right to make a claim on the Sellers, with the indication of its purpose, not later than 30 calendar days from the date of the vagon arrival at the port or the station of destination as per the railway bill' s stamp.

6.4. Claims are to be sent by registered mail. The dale of a postmark, indicated on the Buyer's envelope shall be regarded as the date of submitting the claims.

6.5. Claims are to be attached with the claim report in 2 copies and containing the following information:

• originals of the Waybills (in the case a claim concerning the quantity is presented).

• original of the Statement of Damage;

• Certifiacate of the Chamber of Commerce and Industry or Independent Survey Company Report.

6.6. The claim should contain the following information:

• Contract number;

• description of the Products as per present Contract;

• weight of the Products in respect of which the claim has been made;

• number of a Railway Waybill;

• marking of the Products;

• description and delivery terms.

6.7. Within 30 calendar days the Seller is to give an answer to the claim.

6.8. If the Buyer fails to lodge a claim within the above period, they shall not have the right to apply to the International Commercial Arbitration court at the Chamber of Commerce and Industry of the Ukraine.

6.9. If during the weight check at the delivery point in accordance with the present Contract by independent inspection company in the presence of the Seller's representative or his authorized person, a weight difference does not exceed 1% as against the weight indicated in the shipping documents, the payment shall be effected for the weight shown in the shipping documents. If the difference in weight is more than 1%, the Buyer shall pay to the Seller the cost of steel products as per shipping documents and make a claim in accordance with the provisions of the present Contract.

§ 7. Responsibilities of the Parties.

7.1. In case the Seller fails to ship the agreed lot within the time-limits, indicated in Specification, the Seller shall pay to the Buyer a penalty at the rate of 0,3% for every day of delay, but not more than 8 % of the value of the agreed and unshipped Products.

7.2. In case the Buyer's Bank fails to notify the Seller's Bank about the opening of L/C, the Buyer shall pay to the Seller a penalty at the rate of 0,3% of the value of the ordered and unpaid lot of the Products.