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International paper sales terms

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Protocol: Communication standards that determine message content and format, enabling uniformity of transmissions.

Material Acquisition Costs: One of the elements comprising a company's total supply chain management costs. These costs consist of the following:
1. Materials (Commodity) Management and Planning: All costs associated with the supplier sourcing, contract negotiation and qualification, and the preparation, placement, and tracking of a purchase order - including all costs related to buyer/planners.
2. Supplier Quality Engineering: The costs associated with the determination, development/certification, and monitoring of suppliers' capabilities to fully satisfy the applicable quality and regulatory requirements. 3. Inbound Freight and Duties: Freight costs associated with the movement of material from a vendor to the buyer, including all associated administrative tasks. Duties are those fees and taxes levied by government for moving purchased material across international borders. Customs broker fees should also be included in this category.
4. Receiving and Put Away: all costs associated with taking possession of material and storing it. Note - inventory-carrying costs are normally covered in a separate worksheet. 5. Incoming Inspection: All costs associated with the inspection and testing of received materials to verify compliance with specifications.

Message: The EDIFACT term for a transaction set. A message is the collection of data, organized in segments, exchanged by trading partners engaged in EDI. Typically, a message is an electronic version of a document associated with a common business transaction, such as a purchase order or shipping notice. A message begins with a message header segment, which identifies the start of the message (e.g., the series of characters representing one purchase order). The message header segment also carries the message type code, which identifies the business transaction type. EDIFACT's message header segment is called UNH; in ANSI X12 protocol, the message header is called ST. A message ends with a message trailer segment, which signals the end of the message (e.g., the end of one purchase order). EDIFACT's message trailer is labeled UNT; the ANSI X12 message trailer is referred to as SE.

General trade conditions for sales of paper and board.

Manufacturing Execution Systems (MES): Programs and systems that participate in shop-floor control, including programmed logic controllers and process control computers for direct and supervisory control of manufacturing equipment; process information systems that gather historical performance information, then generate reports; graphical displays; and alarms that inform operations personnel what is going on in the plant currently and a short history into the past. Quality control information is also gathered - a laboratory information management system may be part of this configuration to tie process conditions to the quality data that are generated. Thereby, cause-and-effect relationships can be determined. The quality data at times affect the control parameters that are used to meet product specifications, either dynamically or offline.

Credit Terms: The agreement between two or more enterprises concerning the amount and timing of payment for goods or services.

4. All deliveries are EXW (Incoterms 2000) loaded Nucor shipping facility, freight prepaid or freight collect to destination. If shipped freight prepaid, the charge for freight will be added to the invoice. Neither freight charges nor tax is subject to any discount. Title and risk of loss pass upon delivery. Risk of loss or damage in transit shall be borne by Buyer, and claims shall be made directly with carrier. Buyer may pick up the goods at Nucor's shipping facility provided Buyer does so within 10 days after the date Buyer is notified of the availability of goods. Nucor reserves the right to ship without further notification at any time after the 10-day period. Buyer shall indemnify and hold harmless Nucor from and against any claims, damages or liabilities suffered by Nucor resulting from any acts or omissions of carrier.

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The importance of Incoterms for international sales contracts


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8. Nucor may, at its sole discretion, assign any Nucor credit manager to Buyer's account. All credit information supplied to Nucor will be available for use throughout Nucor for the purpose of determining credit worthiness. If, in Nucor's opinion, Buyer's credit becomes impaired, Nucor may suspend all performance until such time as Nucor has received full payment for any or all goods already delivered or in process and is satisfied (in its sole discretion) as to Buyer's credit for future deliveries. If Nucor suspends performance and later proceeds with such performance, Nucor shall be entitled to such extension of time as is necessitated by the suspension.

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