“Affiliate” means with respect to any Party, any other entity or person that, directly, or indirectly though one or more intermediaries, controls, or is controlled by, or is under common control with, such Party. For purposes of the foregoing definition, “control” means the direct or indirect ownership of more than fifty percent (50%) of the outstanding capital stock or other equity interest having ordinary voting power for the election of directors or the equivalent thereof and/or the power to direct or cause the direction of the management and policies of such entity.
“Buyer” means the entity as stated in the Form of Contract of the Purchase Order and shall include its legal successors in title and assigns.
“Buyer Group” means Buyer, Client, its and their Affiliates, directors, officers and employees.
“Client” means the entity specified in the Form of Contract and shall include its legal successors in title and assigns.
“Delivery Date” means the date for delivery of the Goods at the Delivery Point as specified in the Form of Contract of this Purchase Order.
“Delivery Point” means the place where the Goods are to be delivered to as stated in the Form of Contract of this Purchase Order.
“Delivery Term” means the specified delivery term under Incoterm 2010 as stated in the Form of Contract of this Purchase Order.
“Goods” means all items to be supplied by Seller for Buyer’s purchase as specified in the Form of Contract of this Purchase Order.
“Purchase Order” means the purchase order issued by Buyer to Seller detailing all relevant information on supply of the required Goods and includes all attachments and enclosures specified in the Form of Contract to this Purchase Order, including this Terms and Conditions and any subsequent amendments to them.
“Seller” means the company named the Form of Contract of the Purchase Order who supplies and delivers the Goods pursuant to the Purchase Order and shall include its legal successors in title and assigns.
“TAXES” shall include:
Taxes due on income, profits, royalty, excess profits of Seller.
Taxes due and payable by Seller in countries outside of Seller’s area of operations.
Taxes and duties due on any offices or property whether owned, occupied or operated by Seller including vehicles, plants, franchise licenses, permits, registration fees.
All employment taxes and contributions imposed by law ,or trade union contracts, or regulations (which are imposed by or on behalf of Inland Revenue Board (IRB) or any taxing authority of any jurisdiction)with respect to or measured by the compensation (wages, salaries ,bonuses and benefits) paid to employees of Seller including without limitation, taxes and contributions for unemployment and compensation insurance, old age benefits, welfare funds, pensions and annuities and disability insurance and includes penalties, interest, fines in respect thereof.
Taxes as a result of non-compliance of the Purchase Order by Seller.
Import and export, sale, excise, storage, consumption and use and service taxes.
Taxes and duties due on importation of tools, vessels work and Goods necessary for the performance of the Purchase Order except for such Customs Duties expressly provided to be payable by Buyer in this Purchase Order.
Levies of any kind.
Seller’s acceptance of this Purchase Order shall constitute a waiver by Seller of any restrictive clause appearing or which may appear on the Goods, drawings, price proposal and/or data delivered by Seller to Buyer under this Purchase Order; such clauses, if any, shall not be binding upon Buyer, and Seller authorizes Buyer to nullify, obliterate or otherwise remove any such restrictive Clause from any Goods, drawings, price proposal or data so delivered.
3.PACKAGING, PACKING AND MARKING
All Goods shall be suitably and adequately packed, packaged or otherwise prepared in accordance with good commercial practice to prevent any possible damage such as but not limited to resulting from weather conditions, handling of Goods during loading and unloading and during in transit and/or storage. Packages must be packed to withstand the type and mode of delivery or shipment as specified in the Form of Contract of the Purchase Order and in full compliance to trade terms stated therein.
Packages must be marked with the Purchase Order number, item number, destination, contents, quantity, date and method of dispatch and weight of each package.
Any Goods that are received in a damaged condition shall, at the discretion of the Buyer, be returned for replacement or credit and all charges arising from the return and replacement of damaged Goods shall be solely borne by the Seller.
All wooden crates / pallets with cargoes to be strapped with polyester band, NOT metal band.
Buyer shall not be liable to pay for or return to Seller any packing or crating, unless otherwise agreed in writing.
Seller shall, whenever a consignment of Goods is ready for transit, make up a packing slip, in English, adequately identifying the contents with one copy of said slip shall company the consignment and another shall be sent immediately to the person named in the Purchase Order.
Unless otherwise so stated, price of Goods shall be inclusive of any applicable service tax, customs duties and any other taxes (including any withholding tax) which may be imposed by relevant authority with respect to the Goods and inclusive of all charges for packaging, packing, insurance, transportation, handling, storage and any other duties or levies imposed.
If any such cost is specified to be payable by Buyer, Seller shall effect payment first and seek reimbursement at cost from Buyer. In the case of any costs relating to transportation specified to be payable by Buyer, the transport methods as identified in the Purchase Order shall be used.
Price of the Goods is fixed and firm throughout the duration of this Purchase Order. No increase in the Price may be made, whether on account of increased material, labour or transport costs, fluctuation in rates of exchange or otherwise.
Seller shall promptly inform Buyer of any discount available for early payment prior to the issuance of the Purchase Order and the payment period qualifying for such discount shall commence at the actual date of receipt of the invoice by Buyer (irrespective of anything appearing on the invoice to the contrary).
5.INVOICING AND PAYMENT
(a)Seller shall be entitled to submit its invoice on or at any time after delivery of the Goods. Seller shall submit an original “Tax Invoice” or “Commercial” invoice with a valid Purchase Order and other relevant supporting documents to the “Invoice To” address as noted on the Purchase Order for payment processing.
(b)Payment shall be made by Buyer subject to the submission of the following documents by Seller:
i.The Purchase Order duly signed by the Buyer’s authorised representative.
ii.The Delivery Order (“DO”) duly signed and stamped by the Buyer’s authorized personnel at the Delivery Point and shall state clearly the date of receipt of the Goods together with the name and designation of the authorized personnel. The DO shall be clearly marked with the Purchase Order number; and
iii.Other relevant documents or certification of the Goods e.g. Mill Certificate, Notice to Invoice etc., as may be required by Buyer.
(c)Buyer shall make payment of the invoice or of the undisputed portion thereof within sixty (60) days upon receipt by Buyer of Seller’s invoice.
(d)In the event of any dispute or query on Seller’s invoice, Buyer shall notify Seller of the said dispute or query. Buyer and Seller have to make every effort to resolve the said dispute or query as soon as possible. Buyer shall make payment within thirty (30) days after resolution of the dispute or query. Such prescribed periods are meant only to ensure undisputed invoices are paid without undue delay. Buyer is not barred from disputing or querying on the invoices after lapse of such prescribed period.
(e)Seller shall not unilaterally suspend the supply of any other Goods under this Purchase Order on account of the invoices being disputed in good faith and the Parties shall make every effort to resolve the dispute amicably.
(f)Buyer will notify Seller of any erroneous billings made by or payments made to Seller and Seller will promptly, and in any event no later than thirty (30) days from such notification, make appropriate adjustments therein and reimburse Buyer any amounts of overpayment still outstanding as reflected by said adjustments, notwithstanding the fact that a temporary withholding or a correction of discrepancy may have been effected previously. Accordingly, Buyer will pay Seller any amount of underpayment subject to verification thereof.
(g)Seller shall submit invoices to our centralised processing centre in Kuala Lumpur for immediate processing. Seller to send all invoices as follows:
i.Softcopy Invoice Submission:
Seller to scan invoice as a single PDF file with all relevant supporting documents and e-mail to email@example.com with Purchase Order Number as Subject at earliest opportunity. This softcopy is required to begin processing and speed up the payment timeline. This email address is exclusive for receipt of invoices and not for any correspondence.
ii.Hardcopy Invoice by “Mail / Courier” Submission:
Physical original “Tax Invoice” or “Commercial” invoices are mandatory for processing and time for processing will start from the receipt of these physical invoices in Kuala Lumpur.
Seller to send invoices with all relevant supporting documents to the “Invoice To” address as noted on the Purchase Order. Please address the package as “Attention: Invoice Processing Team, Supply Chain” for payment processing.
(h)Please note the requirements to send physical invoices and all relevant supporting documents including Purchase Order and other valid supporting documents signed by Buyer’s representative. A valid Purchase Order number must be stated on invoice submitted. Invoices that do not meet our guidelines will be returned to Seller for completion of missing information. This may result in processing and payments delays until the invoices are re-submitted with the required details.
(i)When billing, Seller to ensure that invoice/credit note must reference to the correct legal entity and contains at least the following information for proper accounting and tax audit record:
•Legal entity name
•Legal entity’s address noted on our Purchase Order
•TAX / GST registration number
•Total net amount charged on the invoice and applicable tax rates and tax amounts (tax exemptions and GST zero-rated must be also stated)
•Discounts and other price reductions (if any)
•Quantity, unit of measure and common description of the goods supplied or services rendered
•Currency (must be the same as the currency of the corresponding PO)
•Relevant payment information (banking details or address to send payment)
(j)Revised invoices should be raised preferably with the same invoice number as the original one, and categorically mentioned as “REVISED INVOICE” on the package. In case the revised invoice is raised with a different invoice number, Seller to provide a credit note for processing and reject the incorrect old invoice submitted previously.
Delivery must be affected on the Delivery Date or within the time stated in this Purchase Order, otherwise the Buyer may, by instruction in writing, (a) extend the time for delivery; or (b) cancel this Purchase Order. Seller shall reimburse Buyer for any additional cost incurred by the Buyer if the Buyer shall purchase elsewhere in case of cancellation. Buyer assumes no obligation with respect of the Goods delivered in excess of quantities specified herein. If requested by Seller, Goods delivered in excess of quantities ordered may be returned at Seller’s expenses and are at Seller’s risk. The quantities and weight determined by the Buyer upon receipt shall prevail for all consignments. In the event Seller fails to observe the required mode of transportation for delivery, Buyer shall have the right to (a) cancel this Purchase Order; or (b) affirm this Purchase Order and charge the Seller all additional expenses incurred by the Buyer for Seller’s failure to comply. Liquidated Damage shall be imposed for delay of delivery of Goods under this Purchase Order.
Acknowledgement of delivery or prepayment of invoice to secure cash discount shall not be deemed a waiver of Buyer’s rights reserved in this Purchase Order. Delivery of Goods shall include the provisions of all required certificates and documents as well as services as specified in this Purchase Order. The delivery is deemed completed upon written acceptance by authorized personnel assigned by Buyer.
A partial delivery is not acceptable unless with prior written agreement by the Buyer.
Notwithstanding any inspection, delivery to or acceptance by the Buyer of the Goods, or any part thereof, the Seller warrants to the Buyer that:
i.the Goods shall be genuine, new, unused and current or of recent production;
ii.the Goods shall be of merchantable quality and fit for its purpose or for any purpose held out by the Buyer or made known to the Seller at any time the Purchase Order is issued and shall be suitable for oil and gas environment;
iii.the Goods shall be free from any defects in design, material and workmanship;
iv.the Goods shall correspond with any relevant specification or sample; and
v.the Goods shall comply with all statutory requirements and regulations relating to the sale of the Goods.
Without prejudice to the general warranty mentioned above, the Seller shall ensure that any guarantees or warranties issued by manufacturers of the Goods supplied by Seller shall be issued in the joint names of Seller and Buyer, such that Buyer enjoys the same benefits and protection provided by such guarantees or warranties as does the Seller. The original copy of all such guarantees or warrantees shall be supplied to Buyer upon delivery of the Goods. The issuance or existence of such guarantees and warrantees shall in no way relieve the Seller of any obligations under this Purchase Order. Seller shall list out procedures, frequency and details of any preventive maintenance and precautions which are necessary to be carried out so as not to nullify the warranty herein. Seller shall also specify the part of the Goods that are not to be handled by Buyer’s personnel in observance of the warranty.
i. Unless otherwise stated in the Form of Contract of the Purchase Order, the Warranty Period shall remain in force for 12 months from when Goods are put into their intended service or 24 months from delivery, whichever occurs earlier. If any defect is discovered in the performance capability of any of the Goods due to defective design, material, workmanship or manufacture, within the Warranty Period, Seller shall at its own expense, without delay and at no additional cost to Buyer, correct, repair, rectify, making good or replace the defective part or item thereof in accordance with the provisions of this Purchase Order. Replacement and repairs shall themselves be subject to a period of 12 months from date of replacement or repair. If the Seller refuses or is unable to rectify and/or replace such defective Goods at the Delivery Point or in the event that the Goods are already installed on a vessel or a facility or any other place that access to the Goods cannot be granted for such rectification or replacement for any reasons whatsoever, then Buyer may undertake such rectification or replacement itself or by a third party and in either instance, the Buyer shall be entitled to recover the full cost of such rectification and/or replacement from the Seller. For the avoidance of doubt any and all costs relating to the dismantling or re-assembly of objects in order to gain access to such part of the Goods which is required to be rectified or replaced shall be for the sole account of the Seller.
ii.Where applicable, Seller further warrants that it has the experience and capability including sufficient and competent manpower to perform periodical maintenance of the Goods, during the Warranty Period.
8. LIABILITY AND INDEMNITY
Seller shall be responsible for all liabilities, loss, damages, costs and expenses (including any legal expenses) awarded against or incurred or paid by Buyer and shall indemnify Buyer in full against the foregoing resulting from or in connection with or resulting from:
(a)breach of any warranty given by Seller in relation to the Goods;
(b)any claim that the Goods infringe, or their importation, use or resale, infringes the intellectual property rights or other persons;
(c)any liability under any laws relating to consumer protection in respect of the Goods;
(d)any act or omission of Seller or its employees, agents or Sellers in supplying, delivering and installing (if any) of the Goods; and
(e)any personal injury of Seller, its servants or agents and loss or damage to property and equipment of Seller, its servants or agents and consequential losses or damages of Seller, howsoever caused.
(f)all spills, leaks or discharges of any pollution substance whatsoever, including without limitation, fuels, lubricants, motor oils, pipe dope, paints, solvents, ballast, bilge, sludge, garbage, or any other liquid or solid whatsoever in the possession and control of Seller, and/or directly associated with Seller equipment and facilities, arising from or relating to the performance of the Purchase Order, without regard to negligence of Buyer Group.
(a)Seller shall, at the Seller’s sole expenses and risks, provide and maintain in force insurance coverage with insurance companies acceptable to Buyer to cover its liabilities under the Purchase Order and at law. Such insurances shall be deemed as primary coverage. The list of insurances and the required limits are as specified in the Form of Contract.
(b)All deductibles applicable to the insurances taken by Seller shall be for the account of and be paid by Seller.
(c)Except for Workmen Compensation and Employer’s Liability insurances, Buyer Group shall be named as additional assured but only to the extent of the liabilities expressly assumed by Seller in the Purchase Order. Seller shall instruct its insurers to include a waiver of all expressed or implied rights of subrogation against Buyer Group for all its insurances.
(d)The insurance policies shall contain a policy endorsement including requirements that the insurance companies shall provide not less than twenty-one (21) days written notice shall be given to Buyer and Client prior to any cancellation of material modification of the policies.
(e)Within thirty (30) days of issuance of the Purchase Order, Seller shall furnish to Buyer with all insurance certificates from its insurers evidencing that all insurances under this Purchase Order are in full force and effect and fully compliant with the Purchase Order requirements. Seller shall not commence its obligations under the Purchase Order until the insurance certificates have been provided to Buyer.
(f)Seller shall wherever required produce to Buyer the insurance policies for review and compliance to the conditions stipulated herein.
(g)Seller shall produce a certificate from its insurers to the effect that all premium under the policies have been paid and indicating validity of the policy.
(h)Seller shall be solely responsible for any non-disclosure, breach of express or implied warranties, breach or non-fulfilment of any terms and conditions of the policies which may result in automatic termination or cancellation, payment of all premiums, deductibles, or self-insured retentions that are applicable to any claims made against any insurance policies provided by Seller.
(i)Approval by Buyer of any insurer or terms of insurance proposed by Seller shall not relieve Seller of any of its obligations or liability under or arising from this Purchase Order or generally at law.
(j)The terms of insurance shall include a provision whereby in the event of any claim being brought or made against Buyer Group in respect of which Seller would be entitled to receive indemnity under the policy, the insurer will indemnify Buyer Group against such claims and any costs charges and expenses in respect thereof.
(k)Seller shall include in his respective contracts with its suppliers such clause(s) pertaining to insurance, indemnity and waiver of subrogation that appear in this Purchase Order. This, however, shall not relieve Seller from his responsibilities under this Purchase Order.
(l)Seller shall notify Buyer immediately upon receipt of any notice of claims, incidents or demands or of any situation which may give rise to such claims or demands being made under the said insurance policies. Written notice shall be given not later than two (2) days after the occurrence of any accident. However, for serious accidents (including but not limited to death or serious injuries) notice shall be given immediately and confirmed in writing.
Buyer reserves the right but not the obligation to inspect the Goods at any time either before or after delivery.
Inspection conducted at Seller’s manufacturing plant shall not be constituted as approval or acceptance of goods in whatsoever manner. Approval or acceptance during such inspection shall not constitute waiver to Seller’s obligation in the warranty to deliver the goods or service in accordance with the terms and conditions of the Purchase Order.
Any discrepancies shall be notified through Material Description Deficiency Report and it is the Seller obligation’s to rectify all identified discrepancies to the acceptance of Buyer.
Goods may be rejected if found defective, not in accordance to the type, brands, specifications, quantum or if supplied not in accordance with the Shipping Instruction or supplied later than the Delivery Date or delivered to the wrong Delivery Point or are incorrectly labelled or not in compliance with any applicable regulations. Buyer shall inform Seller if any Goods are rejected and Seller shall, at its sole costs, be responsible to correct, repair, rectify, making good or provide replacement to the Goods not later than five (5) days upon receipt of Buyer’s notice.
If Buyer received Goods whose defects or nonconformities are not apparent on examination or when Buyer found any latent defect on the Goods, Buyer reserve the right to return and require replacement of such Goods and the Seller shall, not later than five (5) days upon receipt of Buyer’s notice, correct, repair, rectify, making good or provide replacement to the Goods at no additional costs to the Buyer.
The Buyer’s rights herein shall be without prejudice and in addition to its rights at law.
12.TITLE AND RISK
(a)Risk of damage to or loss of the Goods shall pass to the Buyer until actual delivery to the Delivery Point and Buyer's actual receipt and acceptance thereof. Loss or damage to the Goods during transit shall be at the Seller’s own risk and expense. If the Goods or any part thereof are nonconforming, the Seller shall continue to bear risk of loss as to them until cure of the defect or acceptance.
(b)The legal title in the Goods shall pass to the Buyer upon acceptance of the delivery by the Buyer, upon payment if payment is made prior delivery or upon buyer invoking default or termination clauses, whichever is earlier.
All materials or equipment to be incorporated into the Goods and for which the title has passed to Buyer shall be clearly marked as Buyer’s property and where possible be stored separately.
Seller shall indemnify, defend and hold harmless the Buyer, its Affiliates, successors, assigns, customers and the users of its Goods from and against all losses, damages, liability, claims, demands, proceedings and expenses including attorney’s fees for actual or alleged infringement of any patent, design, trademark or violation of process or other proprietary or protected rights of any person or entity by the reason of or through the use of the Goods.
Seller shall not assign this Purchase Order or any moneys due or become due hereunder, without Buyer’s prior written consent and any attempted assignment without such consent of Buyer shall be void.
Without prejudice to any of its rights or remedies the Buyer may cancel and terminate this Purchase Order of any part thereof:
(a)If the Seller at any time fails or is unable to comply with any warranty, term or condition expressed or implied in this Purchase Order relating to Goods such as but not limited to failure to deliver on the required Delivery Date or through specific mode of transportation for delivery, or
(b)If the Goods or part of the Goods delivered do not conform in full to this Purchase Order, including any relevant specification, drawings, samples or descriptions and any alteration thereto authorized in writing by the Buyer or are not fit for the purpose for which they are intended or are defective or are insufficient in quantity, or
(c)If in the case of the Seller being a company and an order is made or a resolution is passed for the winding up or dissolution of the Seller or for the reconstruction and amalgamation of the other Party or otherwise under Section 176 of the Companies Act 1965 or any other similar action or proceeding under any other law or if a receiver or manager or official manager, liquidator, or like official is appointed in respect of the whole or a substantial part of the undertaking and property of the Seller or assignment for the benefit of his creditors.
In the event of cancellation or termination of all or any of the Purchase Order in accordance with this Clause, the Buyer shall have no obligations save to pay for any Goods which have been accepted by Buyer under this Purchase Order. Buyer shall have the right to offset such payment due against any additional costs which incurred by the Buyer as a result of such cancellation or termination.
Buyer reserves the right to change the Goods specifications, method of delivery, packaging and packing as to any Goods covered by this Purchase Order and Seller agrees to comply with such change notice and shall submit to Buyer with any consequent effect to such change notice such as price and/or delivery schedule. Any change notices will be in writing and signed by the Buyers authorised representative.
Failure by Buyer to enforce a provision of this Purchase Order shall in no way be construed to be a waiver of such provisions, nor in any way affect the validity of this Purchase Order or any part thereof, or Buyer’s right thereafter to enforce each and every such provision. Any waiver by Buyer shall not be valid unless it is made in writing and signed by Buyer’s ` representative.
18.ATTACHMENTS AND ENCLOSURES
Attachments and enclosures as specified on the Form of Contract to this Purchase Order are integral to and made a part of this Purchase Order.
19. LIQUIDATED DAMAGES
(a)Time is the essence of this Purchase Order. Seller shall notify Buyer immediately if it learns or has reasonable grounds to believe that it cannot fulfil an obligation by any such specified date. Seller shall, at its own costs and expense, and without prejudice to any other rights Buyer may have under the Purchase Order and/or at law, take all necessary steps Buyer requires it to take in order to minimise possible loss, delay or inconvenience to the Buyer. Buyer may call for meetings to address potential delays. Seller shall implement all requests or recommendations made by Buyer.
(b)In the event Seller fails to deliver the Goods by the delivery date or any approved extension thereof, Seller shall pay Buyer liquidated damages for the delay. Unless otherwise stated in the Form of Contract of the Purchase Order, the amount of the liquidated damages payable by Seller is in the sum of 20% of the value of Purchase Order so delayed per day up to the maximum of 100 % of the total Purchase Order price.
(c)The Buyer may, without prejudice to any other method of recovery or other rights under this Purchase Order or at law, deduct and retain from any sum otherwise due or become due by Buyer to the Seller hereunder the amount of the liquidated damages payable by the Seller. The deduction of such liquidated damages shall not relieve the Seller from his obligation or liabilities under this Purchase Order.
(d)The imposition of liquidated damages are expressly agreed by the Parties to represent a genuine pre estimate of the costs likely to be suffered by Buyer because of delays, and shall not be construed as a penalty nor as consequential loss.
(e)In addition to the liquidated damages, the event of delay in the delivery of the Goods, Buyer may, at its option, reject the Goods and terminate the Purchase Order by serving Seller with a notice of its intention to terminate.
20.TAXES, LICENSES, DUTIES, FEES AND OTHER CHARGES
(a)Seller shall be responsible for and pay at its own expense when due and payable, all TAXES and duties relating to the Seller’s obligations in connection with this Purchase Order by any governmental offices, entity or agency including but not limited to:
i.All sales, excise, storage, consumption (e.g. service tax, VAT, GST etc.) and use taxes, licenses, permit and registration fees, income, profit, royalty, excess profit, franchise and personal property taxes.
ii.All employment taxes and contributions imposed by law, or trade union contracts, or regulations (which are imposed by or on behalf of Inland Revenue Board (IRB) or of any taxing authority of any jurisdiction)with respect to or measured by the compensation (wages, salaries or other) paid to employees of Seller and its suppliers including, without limitation, taxes and contributions for compensation insurance, welfare funds, pensions and annuities and disability insurance and includes penalties, interest, fines in respect thereof.
iii.All other taxes arising from the use of personnel, materials and equipment necessary for Seller’s performance under this Purchase Order.
(b)Seller, shall defend, protect, indemnify and hold harmless Buyer Group from:
i.Any and all claims or liability for income, excess profits, royalty and other taxes assessed or levied by the relevant authorities or by any relevant authorities thereof or by the government of any other country against Seller or its suppliers or against Buyer Group, on account of any payment made to or earned by Seller or its suppliers;
ii.All taxes assessed or levied against or on account of wages, salaries or other benefits paid to or enjoyed by employees of Seller or its suppliers, and all taxes assessed or levied against or on account of any property or equipment of Seller or its suppliers;
iii.All claims, demands and causes of action based on any actual or alleged failure by Seller and/or its suppliers to make timely payment of any taxes or duties for which they are liable or any actual or applicable reporting, return or other procedural requirements with respect to their payment.
iv.This indemnity shall include without limitation all penalties, awards and judgments, court and arbitration costs, attorney’s fees and other reasonable expenses associated with such claims, demands and causes of action.
(c)Buyer’s Right to Withhold Monies or Payment
i.Buyer shall have the right to withhold income, excess profit, royalty and other taxes from payment due to Seller under this Purchase Order, to the extent that such withholdings maybe required by the relevant authorities or any relevant authorities thereof.
ii.Where Seller is of the opinion that it is not subject to withholding tax, it is the sole responsibility of the Seller to secure written direction of the relevant authorities and submit the original copy to Buyer. Upon receipt of such written direction Buyer may make the said payments without deduction of such taxes.
Seller shall give prompt notice to the Buyer on all matters pertaining to non-payment, payment under protest, or claim of immunity, or exemption from any taxes, duties or levies, which may affect the performance of Seller’s obligation under this Purchase Order.
In the event that the Seller is a foreign incorporated company and by virtue of its activities related to the provision of services is considered to have a permanent establishment in any country, the Seller shall be solely liable or responsible for the following:
-Any liability for TAXES
-Any and all other costs incurred by Seller due to the creation of a permanent establishment
- Any TAX and other filing obligation occasioned by the creation of the permanent establishment
i.Where service tax is applicable to any services rendered by the Seller under this Purchase Order, Buyer shall be responsible for and pay the service tax when invoiced by the Seller for any taxable service, provided that Seller shall provide Buyer a copy of valid Service Tax license issued by the Royal Customs Department confirming that Seller is licensed under the Service Tax Act as a taxable person providing taxable services.
ii.Service tax amount shall be separately stated in the prices and rates, and shall be separately itemised in the invoice.
(f)Malaysian Goods and Services Tax (GST)
i.The price quoted by the Seller for any taxable supplies to be made under this Purchase Order is exclusive of GST.
ii.Where Goods and Services Tax (“GST”) is applicable to any supplies made or provided by the Seller under this Purchase Order, the Seller (who is ”Taxable Person” under Section 2 of the Good and Services Tax Act 2014) is entitled to charge GST on the payment of the supply. The GST for such supply will be calculated as:
A x R
A is the amount of consideration payable for the supply; and
R is the applicable rate of GST
iii.If the Seller is liable for GST as contemplated above then:
a)the Seller shall:
i.provide to the Buyer information that may be reasonably required to establish its liability for GST; and
ii.do such things and provide such information and documents as may reasonably be required by the recipient to enable the recipient to enable the recipient to claim an input tax credit under the GST law; and
b)where a taxable supply has been made and consideration charged but the applicable GST has not been charged, the GST for such supply set out above shall be paid by the Buyer upon the provision of a tax invoice by the Seller in accordance with the GST law.
i.Where costs incurred by one party are to be reimbursed by another, the amount to be reimbursed shall be calculated net of any GST input tax credits that the party seeking reimbursement is entitled to in respect of the cost incurred.
ii.Where costs are paid by one Party on behalf of the other Party (disbursement to 3rd party) the amount to be paid to the Party, who made the payment on behalf of the other Party, shall be inclusive of GST paid. All documentation for disbursement must be in the name of Party on whose behalf the payment was made by the other Party.
iii.For avoidance of doubt, “GST” as mentioned above refers to the tax imposed on goods and services supplied in Malaysia effective from 1 April 2015 as set out in the Goods and Services Tax Act 2014.
iv.Seller shall be responsible for and shall pay at its own expenses when due and payable all customs duties assessed against it in connection with the Purchase Order.
(g)In the event Buyer has paid or incurred any liability for any taxes or custom duties on behalf of Seller, which is subsequently determined to be not payable, Seller shall promptly account for and refund to Buyer all payments made.
(h)Seller shall act in the best interest of the Buyer in the procurement and movement of any materials / equipment for the purposes of work outside Malaysia by applying for customs duties / Value added Tax (“VAT”) / Goods and Services Tax (“GST”) facilities that can mitigate import duty and VAT payable (in the country where the WORK are carried out) from the relevant authorities in the respective countries.
Seller shall be responsible for the preparation of all documents required by the relevant Customs Department (“Customs Authority”), in connection with the import and export of Goods, to and from <name of country>. Seller is also required to provide assistance, information and documentation to Buyer as and when required for any application to be made to the Customs Authority or any other relevant authorities for the purposes of this Purchase Order.
(i)For avoidance of doubt “Custom Duties” shall not be limited to any import duties, export duties, excise duties, surtax, sales tax, service tax and other statutory imposts as levied, which are imposed by or on behalf of the Customs Authority or any other relevant authorities.
This Purchase Order is governed by the laws of Malaysia. Seller shall comply with all statutes, rules, regulations and laws that may apply to the activities under the Contract, without prejudice to the law of the Purchase Order. Seller shall be responsible for obtaining all authorisations, approvals, permits, licences and the like necessary for performance of the Purchase Order.
22.DISPUTE RESOLUTION AND ARBITRATION
(a)If any dispute or difference between the Parties should arise under this Purchase Order, the Parties shall make every reasonable effort to resolve such dispute or difference within twenty-eight (28) days of either Party bringing the dispute to the notice of the other Party.
(b)In the event that the Parties are unable to resolve such dispute or difference within the twenty-eight (28) days as set forth above, the matter shall be submitted to arbitration in accordance with and be subject to Rules of the Kuala Lumpur Regional Centre for Arbitration. The place of arbitration shall be Kuala Lumpur and all arbitration proceedings shall be conducted in the English language.
(c)The arbitration tribunal shall consist of three (3) arbitrators, one each appointed by Seller and Buyer respectively and the two arbitrators so appointed shall in turn appoint a third arbitrator who shall also act as an umpire.
(d)Pending determination of the dispute or difference as aforesaid, each Party shall fulfil all of its obligations under this Purchase Order, including the obligation to take steps necessary during the arbitration proceedings to ensure that the supply of the Goods shall be completed within the time stipulated by this Purchase Order.
(d)Any decision or award of the arbitration tribunal shall be final and binding. The costs of the arbitration process shall be borne by the Party as determined by the arbitration tribunal.
Buyer’s authorized representatives shall have access, at all reasonable times for a period of three (3) years from expiry or earlier termination of the Purchase Order to all Seller's and its agents', suppliers and consultants' personnel, books, records, correspondence, instructions, plans, drawings, receipts, vouchers, gifts and entertainment records, data stored in computers and other documentation pertaining to this Purchase Order for the purpose of auditing and verifying compliance with the terms and conditions of the Purchase Order.
Seller shall ensure that the provisions of this Clause are included in all its subcontracts.
Neither party shall be liable to the other party and/or the other party's indemnitees and each agrees to defend and indemnify the other party and/or the other party's indemnitees against consequential losses of an indirect nature (such as but not limited to loss of production, loss of product, loss of use of revenue, profit or anticipated profit and business interruption howsoever arising) resulting from or arising out of any breach of Purchase Order.
Seller warrants that all Goods specified in this Purchase Order shall be free and clear of all liens and that Seller has good and marketable title to the same. In the event of breach of the foregoing warranties Seller shall protect, indemnify and hold Buyer harmless from and against all liabilities resulting there from Including all costs incurred (including legal costs on a solicitors client basis) and payments made by the Buyer to secure discharge of liens and payments made by Buyer for damage suffered by others.