SPV adheres to clear purchasing policy formulated for convenience and fairness to all potential and existing suppliers.
 
Purchases are classified as:

	MRO Purchases (Spares, Consumables).
	Capital Equipment Purchases (Equipment).
	MRO Out-sourced Services Including Fabrication, Repairs at site and outside.
	Raw Material Purchase.

SPV is committed to ‘Full and Fair Value’ Procurement. We have our general rules which apply in all cases, unless altered by mutual agreement in writing by both seller and buyer.

We encourage long-term pricing agreements but our written Purchase Order shall be binding in all cases.

PT South Pacific Viscose, a limited liability company duly established and existing under the laws of the Republic of Indonesia, having its domicile at Desa Cicadas, Purwakarta 41101 - West Java, Indonesia, hereinafter referred to as SPV or Buyer or the First Party agrees to the following by placing a Purchase Order (P.O.) on the Second Party or the Seller subject to the following.

The Seller is requested to send acceptance of our P.O. by fax, e-mail or courier within 3 working days from the date of receipt of P.O.

In case, the acceptance of a P.O. is not received by SPV within the stipulated period for whatsoever reasons, the purchase order terms and conditions shall be deemed as final and apply towards all obligations to be covered by both parties.

	Scope of Work & Supply
	The Vendor agrees to supply materials and/or carry out the job as per the agreed scope of work where technical specifications are part of the agreement.
	Price & Currency Clause
	The price/value agreed to at the time of confirming an order remains valid. It can be altered only subject to written agreement by both parties at a later date which shall be incorporated only as a revised P.O.
	Delivery, Partial Delivery and Job Completion
	The vendors are strictly requested to abide by the schedule of delivery dates as agreed upon in the P.O./Contract.
	Penalty
	In case of any delay in delivery due to reasons not attributable to SPV, a penalty, calculated after a grace period of 5 working days from the scheduled date of delivery @ 1% per week and subject to a maximum limit of 5% of the order value, is to be paid by the supplier within 15 days from the delivery of goods. Wherever partial deliveries are expressly stated and agreed to, the penalty for delay will apply from the first delivery date accepted.
	Inspection
	For classified items, SPV has in-house inspection arrangements at its own QPD. However, where specified in the P.O., if a Third Party inspection is required, then the Seller will ensure the inspection certificate is attached to the shipping documents and invoice.
	Guarantee/Warranty
	The vendor shall guarantee the good quality of materials and workmanship. The details of guarantee and period of guarantee shall be as agreed by both parties and as stipulated in P.O. or Contract.
	Terms of Payment
	The payment shall be made by SPV as per terms agreed by both parties.
	Insurance
	Insurance shall be covered by one of the parties based on the agreement.
	Revision/Cancellation of Order
	If the Buyer accepts the Seller's alternative, a revised P.O. will be sent, otherwise a cancellation of the P.O. will be sent to the Seller.
	Documentation
	The Seller will write the Buyer's P.O. number on all the documents.
	Settlement of Disputes
	The Buyer and Seller shall agree to settle any dispute that may arise in this transaction by mutual discussion/negotiation. If settlement cannot be reached within 8 weeks upon such a dispute arising the matter shall be referred to a International Court of Arbitration.
	Force Majeure
	If either of the parties is prevented from performing its obligation in this order due to cases of Force Majeure such as war, serious fire, labour unrest, civil disturbance, flood, typhoon and earthquake, the time for performance under terms of order shall be extended by mutual consent.

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