CONTRACTFORPROCESSING&ASSEMBLY
ContractNo:________________
ConclusionDate:____________
ConclusionPlace:___________
PartyA:__________Company(PartyofProcessingorAssembling)
LegalAddress:________________________________
Tel:_______________Fax:______________E-mail:___________
PartyB:___________Ltd.(PartyofSupplyingMaterialsandParts)
LegalAddress:________________________________
Tel:_______________;Fax:______________;E-mail:__________
PartyAandPartyB,accordingtothelawsandpoliciesofthePeople’sRepublicofChinaandtherelevantregulationsandtheprinciplesofequalityandmutualbenefit,havehelddiscussionsrelatingtotheprocessingandassemblingof(plastictoyproducts)andhavereachedagreementonthefollowingcontractualclauses:
1.Responsibilities
(1)ResponsibilitiesofPartyA
1)PartyAshallprovidefactoryspaceconsistingof_____squaremetres,fieldof_____squaremetreswithoutcovering,_____factorymanagementpersonand_____workersforthefirstphase.Thenumberofworkersshallbeincreasedto_____twelvemonthsafteroperation.WithintheContractterm,PartyAshallprocesstheproductsforpartyBwhichshallbere-exprotedto_____.
2)ThewatersupplyandutilityequipmentrequiredforprocessingshallbeprovidedbyPartyA.Ifadditionalinstallationsofwaterandelectricfacilitiesarerequired,theexpensesthereofshallbebornebyPartyB.
3)PartyAshallarrangeallthenecessaryimportandexportapprovalsrequiredforprocessingandassemblyandprovideadministrationandaccountingmanagementfortheprocessingplant.PartyAcannotassignPartyA’sresponsibilitiestoanyotherpartyorindividualinanyway.
(2)ResponsibilitiesofPartyB
1)Toprovidetheequipmentwiththetotalvalueof_____.
2)Toprovidetherawmaterials,indirectmaterialsandpackagingmaterialsforprocessingtheproducts.Quantitiesandspecificationsaretobespecifiedinseparateprocessingcontracts.
3)Intheeventanypersonnel,includingmanagementshowssubstandardperformanceandmakesnoimprovementafterretraining,PartyBshallhavetherighttorequestPartyAtoreplacesuchpersons.However,anyphysicalsearchoftheworkersshallberegardedasillegalandprohibited.
2.QuantityofProducts
Duringthefirstyear,thetotalprocessingfeeshallamountto_____.Fromthesecondyear,thequantityshallbeincreased.Detailsshallbespecifiedinseparateprocessingcontracts.
3.Price&Salary
(1)Thetrialproduction(includingtraining)periodshallbe_____.Duringsuchperiod,theworkersshallbepaid_____permonthonthebasisof_____workingdayspermonthand_____workinghoursperday.
(2)Afterthetrialproductionperiod,theworker’spaymentshallbecalculatedaccordingtoactualproductionquantities.Onthebasisofmutualbenefit,bothpartiesshallconsidertheprocessingfee,whichshallbespecifiedinseparateprocessingcontracts,accordingtodifferentkindsofproducts,specifications,stylesandengineeringprocedures.Inordertoensurethereasonableincomeoftheworkers,theworker’smonthlysalaryshallbemaintainednolowerthan_____.Ifovertimeworkisrequired,paymentshallbecalculatedseparately.However,overtimeshallnotexceed_____hoursaday.
(3)ExpensesforwaterandelectricityinPartyA’splantshallbebornebyPartyB.
(4)EverymonthPartyBshallpay_____toPartyAformanagementexpenses.
4.ProportionProductsDamaged
(1)Duringthetrialproductionperiod,PartyBshallabsorbthecostofproductsdamaged.
(2)Afterthetrialproductionperiod,theproportionofdamagedproductsshallbemutuallyconsideredanddecidedbybothpartiesandspecifiedinseparateprocessingcontracts.
5.ShipmentofRawMaterials&FinishedProducts
(1)Everymonth,PartyBshallprovidesufficientrawmaterialsandpackagingmaterialsaccordingtothecontractedprocessingvolume.ToensurethenormalproductionofPartyA’splant,PartyBshallshipsuchmaterialstotheplant_____daysbeforetheproductionofeachlotofproducts.Exceptforreasonofforcemajeure,theplantshalloperateformorethan_____daysinamonth.Incaseproductionisheldupfor_____daystoinsufficientsupplyofrawmaterials,PartyBshallcalculatetheactualdayswhenproductionisshutdownandpaytoPartyAtheworkers’livingexpensesattherateof_____perpersonperday.
(2)ToensurethenormaloperationofPartyB’sbusinessactivities,PartyAshalldeliverthefinishedproductstoPartyBinaccordancewiththetimeofdelivery,qualityandquantity.Exceptforreasonofforcemajeure,incaselossestoPartyBarecausedduetoPartyA’sfailuretomakedeliveryasmentionedabove,PartyAshallberesponsibleforthecompensation.Detailsofsuchcompensationshallbemutuallyagreeduponinseparateprocessingcontracts.
(3)BothpartiesshallmutuallyinspectanddocumenttheequipmentandmaterialsprovidedbyPartyB,suchasmachinery,ventilationandlightingequipmentandrawmaterials.AfterthefinishedproductsareinspectedandshippedfromtheplantbyPartyB,PartyAshallbefreeofanyresponsibilityinregardtospecifications,qualityandquantity,etc.
6.MethodofPayment
Paymentofworkers’salaryandmanagementfeeshallbesettledonceamonthbyD/P,whichshallbeconductedthroughBankofChina_________BranchbyPartyB’sbankin_____(_____Bank,AccountNO.______)inaccordancewiththeinvoicesissuedbyPartyAandaTradeCompany(authorizedbythelocalgovernmenttobeinchargeofaffairsofprocessingandassemblyandwithforeigntradeauthority,hereinafterreferredtoastheAuthorizedTradeCompany).IncasePartyB’spaymentisdelayedfor_____days,PartyBshallberesponsiblefortheinterestincurredaccordingtothebank’sinterestrate;incasepaymentisnotsettledfor_____consecutivemonths,PartyAshallhavetherighttosuspenddeliveryofthefinishedproductsortakeothermeasures.
7.LabourProtection&Insurance
(1)Theplantshalltakesafetymeasuresandprotecttheworkersfromdirt,smokeandpoisonousmaterials.Thefactoryshallbemaintainedventilatedandbright,andthesurroundingscleanandtidy.
(2)Thetransportationexpensesforthemachinery,ventilationandlightingequipment,rawmaterials,indirectmaterials,packagingmaterialsandthefinishedproductsshallbepaidforbyPartyB.
(3)Allinsuranceforthetransportationandstorageoftheabovematerials,machineryandequipmentandcoverageoftheworkersoperatingthemachineryshallbearrangedthroughthe_____InsuranceCompanyof.
8.TechnicalExchange
Afterthearrivaloftheequipmentintheplant,PartyBshalldispatchpersonneltoinstallsuchequipment,whilePartyAshallarrangepersonneltoassisttheinstallation.Whenthetrialproductionbegins,PartyBshallprovidetechnicalpersonneltocarryoutthetraininguntiltheworkershavemasteredthetechnologyandtheproductionoperatesnormally.PartyBshallberesponsibleforthetechnicalpersonnel’ssalaryandallrelatedexpenses,andPartyAshallprovidedailynecessities.
9.ContractTerm
Afterthiscontractissignedandapproved,PartyBshallpresenttoPartyAitsCommercialRegistrationandBankCreditCertificateforPartyAtoarrangebusinesslicenceandCustomsRegistration.Thetermofthiscontractshallbethreeyears,e.g.from______to________.Ifeitherpartywishestoterminateinadvanceorextendthecontract,theresponsiblepartyshallinformtheotherpartythreemonthsinadvancesothatbothpartiescandiscussandsettlesuchaterminationorextension.Ifeitherpartyterminatesthecontactbeforethetermexpires,theresponsiblepartyshallcompensatetheotherpartyforthelossesinsuchcase,theresponsiblepartyshallpaytheotherpartyascompensationtheamountof_____timesthemonthlyprocessingfee.Thefeewillbebasedontheaveragemonthlyfeeoftheprevious_____months.
Afterthecontracttermexpires,therealestatesuchasthefactorybuildinganddormitorybuildingshallreturntoPartyAandthemachineryandequipmentdeliveredbyPartybshallbereturnedtoPartyB.Customsclearanceproceduresshallbegonethroughaccordingtorelevantregulations.
Bothpartiesagreethat,within_____daysafterthecontractissignedandapproved,PartyBshallpayPartyAtheamountof_____asitsguaranteetocarryoutthecontract.If,within_____monthsafterPartyA’sreceiptofsuchamount,PartyBstillcannotarrangetostartproduction,theamountshallbeforfeitedtoPartyAunconditionallyandPartyAshallhavetherighttocancelthecontract.IfPartyBcanstartproductionontime,theamountwillbedeductedfromtheprocessingfee.
10.Arbitration
AnydisputearisingfromorinconnectionwiththisContract(andincludingalltheseparateprocessingcontracts)shallbesettledthroughamicablenegotiation.Shouldnosettlementbereachedthroughnegotiation,thecaseshallthenbesubmittedtotheChinaInternationalEconomicandTradeArbitrationCommission(CIETAC),ShenzhenCommissionforarbitrationthatshallbeconductedinShenzheninaccordancewiththeCIETAC’sarbitrationrulesineffectatthetimeofapplyingforarbitration.Thearbitralawardisfinalandbindinguponparties.
11.Language
ThepresentcontractisdrawninChineseandEnglishaswell,bothtextsbeingequallyauthentic.Incaseofanydivergenceofinterpretation,theChinesetextshallprevail.
12.AmendmentandCopies
Thiscontactismadeoutin_____copiesrespectivelyheldbytheParties,theCustoms,VehicleAuthorityandtheAuthorizedTradeCompany.Theyshallhavethesameforce.
Ifthereareotherissuesnotcoveredinthecontract,bothpartiescandiscusstosupplementoramendthecontractandsubmittheresultstorelevantdepartmentsforapproval.
PartyA:_____________________
PartyB:________________________
AuthorizedRepresentative:____
AuthorizedRepresentative:________
TheAuthorizedTradeCompany:_____________________
