The Code of customs of the JSC “Novoroslesexport” hereinafter the “Code” is the document which regulates:

• working order of the JSC “Novoroslesexport;
• order and conditions of port entry, loading and discharge operations, handling of vessel in port;
• order and conditions of reception, storage, delivery and dispatch of cargo by railway, motor and other means of transportation;
• relations between the JSC “Novoroslesexport and its customers.

• International practice of seaport work;
• Legislation of Russian Federation;
• Company Charter of the JSC “Novoroslesexport.

Paragraph 1           Definitions

Paragraph 2          Working order of the Company

Paragraph 3           Services

Paragraph 4           Guarantees

Paragraph 5           Conditions of acceptance and processing of vessels at berths

Paragraph 6          Harbor dues

Paragraph 7          Lay time estimation

Paragraph 8          Lay time calculation

Paragraph 9          Cargo processing methods

Paragraph 10        Responsibility of the Parties

Paragraph 11        Disposal of the cargoes

Paragraph 1

Definitions

All words and expression mentioned herein have the following definitions:

company – the joint stock company “Novoroslesexport”;

customer – any natural or legal person which uses the services of Company having the contractual relations with it;

cargo – any cargo including package enlargement facilities, container or other facilities designed or manufactured in order to provide the transportation, protection and holding of cargo;

vessel – self-propelled or non self-propelled floating hydrotechnic construction used for means of merchant shipping;

shipowner – a person which runs the vessel on his behalf regardless of being an actual owner of the vessel or running her on any other legal basis;

forwarding agent – an authirised attorney of the shipowner;

handling of vessel - operations related to loading, discharge and follow-up works, incomplete forwarding services and re-positioning of vessel to the berth of the Company;

weather working day – a day that allows the safe performance of loading operations in accordance with “Seaport regulations of labor safety” and “Safety regulations of maintenance of working cargo gear” with no menace of damage to be caused to the cargo, vessel, portal constructions and equipment.

Paragraph 2

Working order of the Company

2.1. The call of vessels is performed the year around.

2.2. The normal working period lasts from 08:00 until 16:00 except weekends and holidays.

The Company performs its operations 24 hours on contractual basis.
The holidays are:
January 1,2,3,4,5 – New Year holidays;
January 7 – Orthodox Christmas;
February 23 –Motherland’s Defender Day;
March 8 – International women’s day;
May 1 – Labor and Spring Holiday;
May 9 – World War II Victory Day;
June 12 – Independence Day;
November 4 – Peoples Unity Day.

2.3. The loading operations are performed in weather working days.

2.4. The acceptance of vessels for handling, anchorage and other operations is performed only against the prior approval of Company after the confirmation of acceptance or on the basis of contracts (agreements).

The obligatory pilotage into the port or out of it or in case of vessels re- position from one berth to another is performed on the basis of normatives and pilot fees established by “Compulsory decrees of Novorossiysk Port Authority”.

Paragraph 3

Services

3.1. Within the limits of its territory and water area on the basis of contracts (agreements) with cargo owners or their forwarding agents, charterers and other customers the JSC “Novoroslesexport” is rendering services and operations including:

• loading, discharge (including stowage), separation, lashing and unlashing of cargo, dry cleaning of cargo room after the discharge of vessel coming to the seaport;
• forwarding services;
• warehousing jobs;
• transshipment of cargo loaded to sea transport from other transport facilities and vice versa.

To perform the above operations the Company applies specially designed complexes, terminals and berths of general purpose with secured warehouses and platform slings as well as its own special gear.

The dangerous cargoes are transshipped according IMCO and MOPOG regulations only after prior coordination with competent authorities.

The goods are delivered to the territory of Company only if this delivery is confirmed by the Company.The Company is rendering services on loading, discharge, storage and warehousing jobs on the basis of the agreements concluded with shipowners or their authorized representatives.

3.2. The Company is rendering the following services against the additional applications:

- rendering of berths for holding anchorage of vessels;
- power supply of vessels;
- cargo finishing operations (tare repair, re-stuffing of cargo etc.);
- marking and re-marking of cargo;
- other works and services stipulated by the contract (agreement).

All services rendered by the Company are to be paid according to current tariffs.

Paragraph 4

Guarantees

4.1. Every customer who intents to dispose of the services of the JSC “Novoroslesexport” has to guarantee that he is either the owner of cargo or transport facility arriving to the port or the authorized agent of cargo or transport owner. He also has to guarantee the strict observance of this Code.

4.2. Unless another it is not agreed with the JSC “Novoroslesexport” the customer has to guarantee in written form that every lot of cargo or the vessel or the transport facility that is directed to the port:

- are not potentially dangerous or will not become dangerous in that condition as delivered or during their storage on the territory of Company;
- are not toxic and will mot become a source of toxic gas, dust, liquid, or nuclear radiation;
- will not pollute or appear to be dangerous for its harm or health damage to any person or any cargo or gear or water or the port territory;
- have the due package meeting the current regulations;
- have the due marks – warning signs (in case the cargo is dangerous) and the appropriate signs (in case there will be any regulations on trans-loading of cargo);
- don not contain any drugs, contraband, porno products and other goods prohibited or limited in their turnover by Russian legislation.

Paragraph 5

Conditions of acceptance and processing of vessels at Company’s berths

5.1. Characteristics of the vessels accepted:

№ of berth	Draught (m)	Length (m)
32/1	7,1	108
32/2	7,8	121
32/3	7,9	121
32/4	8,3	146
32/5	5,6	126
28A	8,0	126
29	7,5	120
30	6,8	100
31	7,5	170 meters of neighboring berths
31A	6,5

5.1.1. The maximum length allowed of vessels moored at berth № 28A is 100 meters. Vessels over 100 meters long can only be accepted after approval from the Novorossiysk Port Authorities.

The maximum length allowed of vessels moored at berth №29 is 120 meters. Vessels over 120 meters can only be accepted after approval from the Novorossiysk Port Authorities.

5.2. Priority order of vessels’ berthing:

5.2.1. The Company will accept the vessels and include them into the waiting list of berthing. The vessel is included into the list on the date of submission of notice of readiness for loading.

5.2.2. The following vessels have priority regardless of time of arrival:

- container vessels on a regular liner service, when mooring at berth №28А;
- large vessels whose draft exceeds that permissible at berths № 31 and 31А when moving them to berth № 29;
- vessels with perishable cargo to be unloaded at the Companies Berths.

5.2.3. The Company has the right to change the order of vessels berthing if for operational reasons its sees it necessary to do so.

5.3. Information on calling of the vessels:

5.3.1. The shipmaster or his agent shall submit to the Company the regarding the vessel 10 days before arrival and give definite notices 72, 48, 24 and 6 hours before the expected call of the vessel to the port, this information should include:

- Details of vessel’s Owner, Charterer, Call sign of the vessel, precise time of the vessel’s arrival at the Pilot Body Ground (pilot buoy), expected draft of the vessel on arrival and departure, length over all, quantity and sizes of its hatches, details of working cargo gear (quantity, location, carrying capacity at distance from center line), cargo-plan, full information about cargo documentation on board, fuel, water and other kinds of supply on board, services and lack of sanitary and other restrictions if any likely to prevent the vessel clearing customs, immigration, safety or environmental control and any other information about the vessel and / or the cargo, including dangerous cargo, to ensure the speedy processing of the vessel at the port.

The shipmaster or his agent should submit the following information for the vessels arriving to the port for additional loading:

Amount of cargo loaded at previous ports, cargo plan, details of lashing of the cargo, availability of free cargo space.The Company is obliged to confirm acceptance of such vessel within 6 working hours of receiving notice in each specific case.

5.3.2. The master of the vessel shall immediately inform the Company through his agent about any delays on the way to the port, which may cause the vessel to arrive later than the expected date of arrival.

5.4. The readiness of the vessel for operations:

5.4.1. Notice on readiness of the vessel for loading or unloading is officially presented by the shipmaster to the Company only during working hours after the vessel is allowed for free practice (after registration of the arrival, customs and sanitary inspection and termination of loading as well in case the vessel is to be loaded).

5.4.2. The cargo compartments of the vessel shall be dry, fully watertight and provided with all the necessary facilities for loading of the cargo in accordance with the notices.

5.4.3. The vessel is considered to be ready for loading of bulk cargoes provided it has an easily readable draft marking and a full draft scale on board which allows the port to define the cargo loaded, all documents and tables and information about ballast water on or not on board, readiness of the holds for the specific cargo to be loaded.

5.4.4. Readiness of the vessel for loading shall be accepted provided she is ready in every respect for loading and/ or unloading of the given cargo into all holds of the vessel which are to be used at the port, the presence of a full set of cargo documents and also completion of all customs, quarantine, sanitary and other formalities. The readiness of the vessel in accordance with the requirements of the Company for safe performance of work shall be agreed in a Statement of readiness of the vessel for safe performance of loading/unloading operations and drawn out in the form of Code and to be signed by the representatives of the Company and the vessel.

5.4.5. If required the readiness of vessel for loading/unloading operations shall be confirmed by the appropriate inspection (commission).

5.5. Vessel’s obligations:

5.5.1. The vessel shall accept or discharge the cargo during day or night time, Sundays and holidays, providing free steam, electric power, illumination, compressed air, winches, cranes and other implements, necessary for loading or unloading of the cargo.

5.5.2. Before the cargo operations start, the vessel shall inform the Company about all particularities of the vessel, s construction, which may influence the process of cargo operations.

The Company bears no responsibility for damage, caused to the vessel during the loading operations, if due safety measures to protect parts of the vessel (ladders, covers of the ballast tanks, vessel’s set etc.) were not arranged by the vessel before the beginning of loading operations.

5.5.3. The acceptance and passing of the cargoes onto/from the vessel shall be carried out at the board of the vessel by the tallymen of the Company and vessel including the obligatory drawing up of the tally/hatch receipt of the appropriate form by each of the Parties. By that, each “loading” and/or amount of the loaded/unloaded per a shift cargo shall be confirmed by the mutual signatures of the tallymen of the Company and the vessel or the nominated surveyor company.

The Company maintains a right not to provide its tallymen.

Any amendments to tally/hatch receipts are allowed only by the mutual consent of the Parties with the appropriate confirmation which is to be the signatures of the tallymen of the company and the vessel or the nominated surveyor company. The tally/hatch receipts with amendments, made without AM agreement of the Parties or performed by the vessel unilaterally are not valid. In case the vessel cannot provide her own tallymen, then the account of tallymen of surveyor is to be accepted no matter whether such information on quantity of the loaded and unloaded cargo was presented to the shipmaster or not, notwithstanding this all cargo documentation done on behalf of the Company are to be signed by the shipmaster unconditionally.

The vessel shall deliver the cargo as per the bill of lading. Additional costs, connected with unloading of cargo sorted per bill of lading, are to be for the account of the vessel.

5.5.4. During the time-breaks when loading or unloading is suspended or in case of bad weather conditions, the vessel shall close the holds. In case of usage of the shore cranes for this purpose, these services are paid to the Company in accordance with the conditions of the Agreement concluded between the agent and the Company.

5.5.5. The cost of idle time of labor force, happened through the reasons depending on the vessel (failure of vessels gear, lack of steam, illumination, suspension or decrease of loading operations in order to sort the ship lots as per bill of lading or upon the demand of vessel or through her fault) are paid to the Company in accordance with the conditions of the Agreement concluded between the agent and the Company.

5.5.6. Upon the demand of the Company, the vessel shall leave the berth. If the vessel refuses to do so the owner of the vessel bears financial responsibility in full for losses incurred by the Company.

5.6. Responsibility for allocation, fastening and separating of cargo on the vessel.

5.6.1. The distribution and separation of cargo on the vessel is to be performed according to the cargo plan established by the shipmaster and agreed with the Company and the representative of the cargo owner.When loading of large items (with weight more than 5 tones per movement or length more than 8 meters), before the beginning of the operations the vessel shall submit to the Company a scheme of allocation and fastening of the mentioned above cargoes, regarding the permissible load for the cargo compartments and presence of suitable lashing points.The administration of vessel shall be responsible for the right allocation, stowage, trimming, securing, separation, and safeness of the cargo in the cargo compartments of the vessel.

The owner of the vessel bears responsibility for the separating of the bill of lading cargoes and the quality of the separation, and also for all expenses, resulting from the incorrect loading of vessel.

5.6.2. Stanchions for the acceptance of cargo onto the deck, fastening the deck cargo shall be performed at the vessel’s expense and under its responsibility, no matter if this work was done by the vessel’s crew or by the staff and facilities of the Company upon the request of shipmaster.

5.6.3. The works on separation and lashing/unlashing of cargo shall be performed at the vessel’s expense.

The separation and lashing materials necessary for carriage are presented by the owner of cargo and at his expense.

Special equipment – ropes, shackles, steel ropes and other lashing facilities are to be supplied by the vessel.

Upon the lack of agreement with the vessels’ owners, all the expenses on fastening, fastening and separation materials are to for the account of the cargo owner or his forwarder. At linear vessels the above materials shall be presented by the owner of cargo at his expense.

The calculation of normative time for lashing of cargo is performed depending on the ship lot of goods and the period of work of controlling authorities.

5.6.4. Additional charges, connected with the loading/unloading of the cargo from the lockers, deep tanks and other compartments, not fitted for the appropriate work of people and equipment as well as the unloading of unconventional cargoes and the cargoes with damaged packing are to be for the account of the cargo owner.

Paragraph 6

Harbor dues

6.1. Any vessel entering the port of Novorossiysk for loading operations is to pay the following harbor dues as per the existing rates:

-tonnage,
- lighthouse,
- wharfage,
- pilot,
- tug assistance,
- environment (ecological),
- mooring.

6.2. The port authorities are to perform the collection of harbor dues and to control their income.

6.3. The rates of pilot, mooring and environment dues are to be increased:

a) during working days:
from 16.00 to 24.00 , from 00.00 to 08.00 – 25% more
b) on Saturdays, Sundays and holidays:
from 08.00 to 16.00 – 50% more,
from 16.00 to 24.00 , from 24.00 to 08.00 – 100% more

Paragraph 7

Lay time estimation

7.1. The lay time of vessel in port is understood as a period the vessel was staying at the port from the moment she has arrived (mooring finished). The lay time of vessel in port is finished from the moment the vessel has left the port (de-berthing started).

7.2. The actual lay time of vessel in port is recorded by the vessel together with the Company by means of drawing out of Lay time report. If the vessel has come for discharge with further loading the Lay time report is to be drawn out separately for discharge and loading operations. The Lay time report is signed by the shipmaster (agent) and the representatives of the Company. The signing of lay time report should not delay the vessels departure. The Lay time report is not subject to any change and neither party has a right to refuse from its signing. In case of disagreement the objecting party is to enter an appropriate clause against its signature.

7.3. The Lay time report is to indicate the chronological order of all working operations performed by the Company with stating of their time in hours and minutes as well as all delays in processing of vessel that caused the break of vessels lay time with stating of their duration and reason and drawing out of the appropriate reports.

7.4. The Lay time report is to be submitted by the agent to the chief dispatcher of the Company not later than two days the loading operations were terminated. The Lay time report is presented to the chief stevedore of the appropriate cargo sector for acceptance or entering of clauses.

Paragraph 8

Lay time calculation

8.1. The lay time is to be understood as working time allowed on the basis of contract provisions and/or this Code for Company to perform loading or unloading of vessel including separation, re-weighting, regular lashing/unlashing (stipulated by IMO regulations) and stowage of cargo; opening, closing of hatches, documentary clearance of loaded/discharged cargo; dry cleaning and cleaning of cargo room after discharge, water and fuel bunkering if their performance is not possible while loading operations, mooring operations connected with loading/discharge considering the functions of Companies berths.

In case the vessel is requires special lashing/unlashing of cargo as well as performance of specific labor-intensive preparatory operations connected with the condition of cargo being unloaded (explosive works, scarifying, re-stuffing, selection of wetted and disordered cargo packages), at the transshipment of poisonous, inflammable goods using gas respirators etc. the Company is provided with an extra time which is added to the lay time and determined as the time actually spent for the operations above.

8.2. The lay time is estimated by dividing the cargo mass (quantity) in tons (m³, pieces) into the rate of loading/discharge of cargo from/to the vessel of a specified class on weather working day.

In case the cargo is to be loaded to the vessel at different loading rates the mass of cargo being loaded is divided into the stipulated rate of loading on weather working days. In case the cargo is not loaded into all cargo compartments (bulk, twin deck, Ro-Ro vessel decks) the stipulated loading rate is multiplied into the number of cargo hatches shown for loading and divided into the total number of cargo hatches available on the ship. The lay time spent for loading operations is added to the lay time of supportive operations which were not performed along with loading of vessel).

8.3. When estimating the lay time the weekends and official holidays, after 15.00 on Saturdays, days before holidays, before 08.00 on Mondays and days following holidays are not considered as the lay time regardless of processing of vessel.

8.4. The lay time begins from 16.00 in case the notice of readiness is handed by the shipmaster before 12.00 and from 08.00 in case the notice is handed after 12.00.

8.5. The lay time is interrupted in case the loading and supportive operations registered as a lay time can not be performed through the reasons below:

• bad weather (fall-out, cold, heat, strong wind), strikes and other force –majeur circumstances and their consequence;
• through the fault of vessel, charterer, cargo owner;
• in case of lack of transport facilities for the cargoes to be transshipped as per the direct scheme in those volumes as established by the agreements between the JSC “Novoroslesexport” and the customer.

8.6. The time that was actually spent for the operations connected with unloading of cargo form lockers, deep tanks and other compartment not fitted for normal work of people and gear also the unloading of unconditioned cargo and cargo in defective tare is to be added to the lay time.

Paragraph 9

Cargo processing methods

9.1. Unless otherwise is not agreed between the customer and the Company the Company maintains its right to be completely unlimited to choose the method, procedure and gear for the reception, storage, strapping, transportation, loading, unloading, re-stuffing, stowage and record of cargo.

Paragraph 10

Responsibility of the Parties

10.1. The Company is not responsible for shortage, loss, damage and misaddressed cargo or damage caused to the vessel regardless of when it happened unless the customer has proved that the shortage, loss, damage and misaddressing of the cargo happened through negligence, illegal actions or default of the Company or its employees.

10.2 The Company is not responsible for shortage, loss, damage and misaddressed cargo or damage caused to the vessel in case it happened due the circumstances mentioned below:

- irresistible force, hurricane, storm or flooding;
- fire, explosion, fumigation;
- strike, lockout and other industrial actions;
- war, revolution, riot and other social actions;
- inappropriate and insufficient package of cargo;
- inappropriate, insufficient, unreadable or incorrect cargo marks;
- action of the insects, depredators, rot or corrosion;
- influence of cold and heat;
- actions of the third persons during their allowed or prohibited presence on the territory of the Company;
- actions of the Company, its employees or agents well-taken in order to provide the security and safety of people, territory, vessel or cargo;
- lack of the berths, man power, gear, fuel and electric power;
- partial or total failure of any of electronic database systems and services provided by the Company including partial or total failure of communication with these systems;
- written approval of the shipowner, owner of cargo or their attorney.

10.3. In case the Company is responsible for the damage of cargo the top amount of recovery to be paid shall be equal to the cost of claimed cargo but not over:

• 200 $ per one cargo package,
• 2000 $ for total damage in each specific case.

10.4. In case the Company is responsible for the damage of vessel the top amount of recovery to be paid shall be equal to:

• the cost of damaged part of vessel to which the claim is related for the moment the damage or loss was caused;
• the cost of repair (to be stipulated by the shipmaster and the surveyor appointed by the Company).

10.5. In case the Company is responsible for the damage of vessels gear the top amount of recovery to be paid shall be equal to the cost of repair (to be stipulated by the owner of this gear and the surveyor appointed by the Company) either to the cost of the gear but not over 200$ per one damaged item.

10.6. The responsibility of parties (vessel, Company, charterer, owner or cargo) for violation of terms and conditions of loading/unloading, dispatch and demurrage is stipulated by contracts (agreements) between the parties.

10.7. The Company is responsible towards the shipowner for the damage of vessel happened through the fault of the Company confirmed by the report to be drawn out with obligatory participation of Company’s representatives within the shift period when the damage was caused.

Paragraph 11

Disposal of the cargoes

11.1. The Company is rightful of selling or any other disposal of cargoes having inappropriate or insufficient marks, misaddressed or can not be identified and the Company is not able to find their consignee or specify the vessel they are to be shipped to as well as any cargoes that were not exported or accepted by the consignee upon the expiration of storage limits.

All charges related to the storage, processing and selling of these cargoes are to be paid by the customer.

The owner of cargo or his attorney is to perform the utilization of cargo at his expense.

APPENDIX №1
to the Code of customs of JSC “Novoroslesexport”

List of safety requirements for loading operations on board of the vessel

1. All gangways, ladders, safety bridges are to be in working order, to meet the regulations and character of the operations performed, to provide free access.

2. The pilot ladder is to be equipped with safety screen in order to prevent a person from falling out of pilot ladder.

3. The pilot ladder is to be equipped with the ring life buoy having the rope of not shorter than 27.5 m.

4. The relling on deck, floors, bridges etc. are to be in working order with the height of not less than 1100 mm in case of available on the vessel the port doors are to be securely locked, the detachable relling are to be fixed in their proper location.

5. In case the hatch comings is not available or its height makes below 750 mm. then the relling of not less than 1000 mm is to be fixed.

6. The opened hatches are to be securely locked.

7. Cargo spaces shall be thoroughly ventilated.

8. At night time the rate of illumination should be not less than:

• 20 lux in cargo compartment at transshipment of bulk cargoes;
• 30 lux in cargo compartment at transshipment of general cargoes;
• 50 lux in cargo compartment on the ramps of Ro-Lo and Ro-Flo vessels.

9. All hatches, doors and holes in the deck are to be securely locked.

10. The vessels cargo gear is to be in working condition in case if used.

11. The venting system in cargo compartments is to be in working condition.

12. The electric system of vessel is to be in working condition in order to prevent a hazard of electric shock.

Besides Ro-Lo and Ro-Flo vessels are to meet the requirements bellow:

1. The ribbed cover of the interior and outer ramps, cargo decks, galleries etc. is to be in working condition.

2. The edges of interior and outer ramps are to be not less than 400 mm high.

3. The relling of not less than 1100 mm high is to be fixed alongside the outer and interior ramps.

4. The light and sound alarm on the interior and outer ramps is to be in working condition and should be switched on 10 -15 seconds before the ramp starts moving.

5. The entrances of cargo compartments, interior ramps, cargo lifts, and cargo decks are to be provided with warning signs stating maximum size, axial load and speed limit.

6. When in operating position the interior ramps should be securely locked.

7. The cargo decks should be provided with reliable locking devices providing their holding in operating and upright position.

8. Each hanging deck should be equipped with two ladders in order to provide free access when the deck is in operating position.

9. Each open space on the cargo deck should be secured with relling.In case if necessary any other vessels gear might be inspected.

Our address: 2, Mira str., Novorossiysk, 353900 Krasnodar Region, Russia Tel: +7(8617) 600-401 – reception of the General Director Fax: +7(8617) 614-499 – registry office E-mail: referent@nle.ru