7. Inspection and Testing

7.1. The Buyers have the right to send their inspectors to the Sellers’ factories to check the process of manufacture, the quality of the equipment and of the materials used, as well as to take part in the test of the equipment. The Sellers should provide the Buyers’ inspectors free of charge with premises and technical facilities necessary for carrying out the inspection.

7.2. Before packing the Sellers are to test the equipment in accordance with the conditions of the contract.

7.3. Ten days before the test the Sellers are to inform the Buyers of the readiness of the goods for test. If by the appointed time the Buyers’ inspector does not arrive at the place of the test the Sellers will carry out the test in his absence. If the test is carried out in the presence of the Buyers’ inspector and no defects are revealed the inspector issues a Release Note for Shipment.

7.4. … … …

7.5. The Release Note for shipment and the Test Report do not free the Sellers from their liabilities as per Clause 8 of the contract.

The final inspection and acceptance test of the equipment will take place in the RF after its start-up.

8. Guarantee of the Quality of the Equipment

8.1. The Quality of the delivered equipment is to correspond to the technical conditions stipulated by the contract or its appendices. The Sellers guarantee that:

1. the delivered equipment corresponds to the highest technical level and the highest standards existing in the Sellers’ country for the equipment in question at the time of execution of the Contract;

2. high-quality materials have been used for the manufacture of the equipment, first-class workmanship and technical performance of the equipment have been ensured;

3. the capacity of the delivered equipment and quality of its operation are in all respects in conformity with the technical conditions of the contract;

4. the equipment has been delivered complete in accordance with the conditions of the Contract and this will ensure its normal stable operation.

8.2. The guarantee period is ... months from the date of the start-up of the equipment but not more than ... months from the date of delivery of the last lot of the equipment of the relevant Trans. The date of the Start-up Report will be considered the date of putting the equipment into operation.

8.3. If the equipment proves to be defective or faulty during the guarantee period, if it does not correspond to the conditions of the Contract, if it does not reach or does not maintain the capacity stipulated by the Contract the Sellers have at their expense at the Buyers’ choice either to remedy the defects or to replace the faulty equipment with the new equipment of good quality which is to be delivered without delay c.i.f. __________ (name of the port).

8.4. If by mutual agreement the defects are eliminated by the Buyers the Sellers shall compensate the Buyers for the expenses which they have incurred in this connection.

8.5. Should the elimination of the defects or the replacement of faulty equipment take place the guarantee period shall be extended by the time taken to rectify the fault.