LEGAL DOCUMENTS

APPROVED

by the Minutes of Meeting of the Board

of the OJSC «Belarusian Universal Commodity Exchange»

REGULATION

1. General Provisions

1.1. Regulation on the procedure of exchange commodities examination establishes requirements to the procedure of exchange commodities examination (hereinafter referred to as the examination), legalization and registration of the certificate of examination.

1.2. This Regulation is intended for the expert organizations which examine commodities, admitted by the OJSC «Belarusian Universal Commodity Exchange» (hereinafter referred to as the Exchange) to exchange trade, and it is obligatory at examining irrespective of departmental subordination, patterns of ownership and economical activity of the examination executor.

1.3. This Regulation is developed on the basis of the applicable law of the Republic of Belarus and the Regulations of Exchange Trade in the OJSC «Belarusian Universal Commodity Exchange».

1.4. In this Regulation, the following terms and their definitions are used:

Accredited expert organization - the organization that is brought by the Exchange in the register of the accredited expert organizations and that performs works or render a service on exchange commodities examination in compliance with local Exchange’s standards, on the basis of contracts with the Exchange or participants of exchange trade and their clients;

(the second paragraph of subclause 1.4 in edition of Minutes of the Board’s Meeting of 24.08.2007 No. 51)

Selection check - the check at which the decision is accepted by the results of one or several selections;

Defect - each separate discrepancy of products to the established requirements;

Customer - a legal entity or a natural person that orders and pays for work and services in examination of exchange commodities to the expert organization;

Prior notice - the notice on the event received:

not less than 3 days prior to the event, for residents of Belarus;

not less than 5 days before the event, for non-residents of Belarus;

Quality of products – a set of indicators of product quality that stipulates its aptitude to satisfy certain requirements according to its appointment;

Object of examination - exchange commodities, procedures and actions with them;

Consignment of commodities - the commodities formalized by one transport document;

Professional - a person who possesses qualification and special knowledge, that can be applied in the course of performance of work and rendering services in examination of exchange commodities both in Belarus, and outside its limits;

Total check – a check of each unit of products in the consignment of commodities;

Normative-technical documentation - technical standard, legal certificates and other documents connected with the object of examination;

Container - the basic element of packing that represents an article for placing the products;

Commodity place - the unit of container with the commodities placed in it;

Vehicles - the means of automobile, railway, water (river, sea), air, and pipeline transport, including containers;

Packing - means or a complex of means that provide: protection of exchange commodities against damage and losses, environment against pollution, and also the process of products circulation;

Expert - a highly qualified expert who is certified on the right of examining, possesses special knowledge that can be applied in the course of performance of work and rendering services in examination of exchange commodities both in Belarus, and outside its limits;

Examination – an independent research of exchange commodities executed by a competent expert (professional) on the basis of objective facts in order to receive the reliable decision of a task in view;

Expert organization - the organization that performs works and renders services in the commodity examination, including exchange commodities on the basis of contracts with customers according to the Exchange’s local standard legal certificates.

(paragraph twenty-one of subclause 1.4 in edition of Minutes of the Board’s Meeting of 24.08.2007 No. 51)

1.5. Expert organizations shall execute examination according to the legislation of the country of registration, the legislation of Belarus, this Regulation, other local standard legal certificates of the Exchange and standard requirements to expert organizations which execute commodity examinations.

1.6. The principles of commodity examination are objectivity, reliability, independence, competence, system, efficiency, safety.

1.7. In the course of exchange commodities examination experts use methods of merchandising: measuring, organoleptic, management methods of scientific cognition (analysis, synthesis, diagnostics, forecasting, programming, planning), systematization (identification, grouping, classification, commodities coding).

1.8. Expert organization must have the status of legal person and the organizational form that corresponds to the requirements of the legislation of the country of registration.

1.9. Expert organization and its staff must not be influenced by the commercial, financial, administrative or other impact that is capable to affect the results of examination.

1.10. Expert organization cannot examine its own commodities and the commodities of those economic players with whom it has general commercial interest or any other.

1.11. Cost of work (services) of examination is established by expert organization at the contract conclusion on examination on the assumption of labor expenditures costing (accounting).

1.12. A customer pays all expenses connected with the execution of examination.

1.13. The examination executed with infringement of this Regulation is considered nugatory, the certificate of such examination admits invalid.

1.14. Losses caused to the customer by expert organization as a result of default or improper executions of its duties in the course of examination are to be compensated according to legislation of the Republic of Belarus.

2. The order of examination

2.1. The procedure of examination consists of following stages:

preliminary stage;

an application and a contract;

examination process;

registration and delivery of the examination certificate.

2.1.1. A preliminary stage

When a customer applies to expert organization on the occasion of exchange commodities examination expert organization conducts a preliminary stage of negotiations with the customer for the purpose of informing him/her of an order of examination and discussing the questions connected with the examination.

2.1.2. An application and a contract

Examination is executed on the basis of the application of a customer according to the coordinated conditions of examination of contracting parties.

If performance of task requires applications of destructive inspection technique, the customer’s agreement on the destruction of the sample of commodities in the quantity provided by normative-technical documents should be pointed in the application.

The contract of examination is executed after preliminary negotiations and contains:

the essential elements of contracting parties;

information required for the exchange commodities examination according to the normative- technological documentation in force;

the customer’s agreement on the performance of requirements, that are obligatory for examination and the payment of expenses on its execution irrespective of the results of examination;

the term of examination.

2.1.3. Examination process

Examination process includes:

the appointment of an expert (professional);

the selection of materials and documentation required for examination;

examination execution.

The appointment of an expert (professional)

For examination execution the expert (professional) or two and more experts (professionals) are appointed by the head of the expert organization.

Two and more experts (professionals) working on the ground of the same application for one examination are appointed in cases of especially difficult examinations (simultaneous check of commodities quality and quantity, simultaneous quantity check of places and weight or intratare quantity of commodities at the unloading from a vehicle, etc.). In other cases when participation of two and more experts in one examination is organized, economically feasible and expenses of time do not exceed the norms provided on one expert.

If necessary, expert organization can involve experts from other organizations for participation in examination.

Materials and documentation required for examination

Commercial, shipping, technological normative documentation is necessary for examination, and in case of need – a standard-sample and (or) commodities tests.

If necessary, expert organization within its competence has the right to request the additional documentation on the considered object of examination from the customer.

Examination execution

The correspondence of commodities with the requirements of the exchange contract, shipping and other necessary documents is checked in the course of examination execution

In some cases tests can be conducted by the forces of expert organization based on the techniques and programs, coordinated with the customer.

The procedure of exchange commodities examination is fixed by the expert (professional) who executes it. Photo-, video-, audio- devices and hard-copy forms are used for fixing.

2.1.4. Registration and delivery of the certificate of examination

Results of examination are executed by the expert (professional) in the form of certificate.

The certificate of examination signed by the expert (professional) is registered by expert organization. The registration fact is assured by the signature of the head and the stamp of expert organization.

The registered certificate of examination is issued to the customer.

3. Basic requirements to the examination execution

3.1. Examination is executed by the expert (professional) personally, on the assumption of the problem specified in the application of the customer. The formulation of the examination problem in the application of the customer and the examination certificate should be identical.

3.2. In the course of the exchange commodities examination an expert (professional) in his actions is guided by this Regulation.

3.3. According to subparagraph 2.1.3 of this Regulation in the course of the examination execution an expert (professional) fixes all information required for registration of the examination certificate according to a task in view.

3.4. An expert (professional) receives from the customer documents required for the decision of the examination problem. Examination starts with analysis of the shown documentation by an expert (professional). An expert (professional) endorses "shown to the expert (professional)", puts the signature and date on the shown documents.

3.5. The competent representative of the customer participates in the examination execution and, if necessary, the authorized representatives of interested and other organizations participate as well. The definition of the list of such organizations and their preliminary notice on the examination execution are carried out by the customer.

3.6. Depending on the problem put by the customer, when defining the quality indicators of commodities with a glance to the requirements of contractual (contract) conditions, an expert (professional) chooses:

3.6.1. Check types:

total check;

selection check.

The definition of the commodities quality by the method of sampling (tests) is admitted in the cases provided by the contract or the requirements of the normative-technical documentation. Total check in such cases is admitted if there is a written statement of the customer.

If check by a sample method is not provided in the contract, total check is carried out.

3.6.2. Check methods:

Measuring method – the method of indicators definition of production quality, executed on the basis of industrial gages. The measuring method is based on the information received with use of measuring and control instruments;

Organoleptic method – the method of indicators definition of production quality, executed on the basis of the analysis of perception by sense organs. The quality indicators of commodities are defined: appearance, smell, taste, sound, perception to the touch, presence of defects.

Organoleptic method does not exclude the possibility of technical means usage (a magnifier, a ruler, scales, a microscope, etc.), which improve perceptiveness and increase abilities of sense organs.

3.6.3. Kinds of tests:

Destructive test – a test with destructive checks, at which the service ability of object can be troubled;

Nondestructive test – the test with nondestructive checks, at which the service ability of object must not be troubled.

3.6.4. Conditions and a place of carrying out of tests:

Laboratory tests – the tests carried out in laboratory conditions.

Laboratory tests are carried out in case when quality is regulated by physicochemical, physical-mechanical, medical-biological and other indicators defined by means of laboratory tests according to the contract provisions (provisions of the contract) and (or) the requirements of normative-technical documentation.

 Sampling (tests) for laboratory tests is carried out by an authorized person. Sample volume (quantity of samples, weight or a measure of tests), ways of packing and storage of the selected samples (tests) must correspond to the normative-technical documentation requirements.

The selected samples (tests) are marked with indication of description of commodities, date of sampling (tests), numbers of consignment and other data, which specifies the accessory of selected samples (tests) to the  consignment shown for examination. The sample (test) must be sealed up.

The certificate of sampling (tests) is executed without fail. Together with the selected sample (test) it should be sent on test and (or) on storage as the arbitration sample (test) by an expert (professional).

On the basis of the test report in which results of carrying out laboratory tests are shown, the expert (professional) executes the examination certificate. The test report is an integral part of the examination certificate.

3.7. An expert (professional) carries out quality check of the shown commodities, fixing presence, character, size and site of the revealed defects and if it is possible, the reasons of their appearance according to subparagraph 2.1.3 of this Regulation, if necessary, he defines quality loss in percentage.

3.8. If at examination execution it is necessary for an expert (professional) to use measuring devices, measuring instruments, etc., he(she) is obliged to be convinced of their serviceability and that brand period of validity of verification officer has not expired, and to note it in the examination certificate.

3.9. In case of the  infringement of transportation and (or) storage conditions of commodities which have led to defect formation, an expert (professional) can execute quality examination only after the customer reduces the commodities in a condition at which is possible to define their quality.

3.10. An expert (professional) systematizes the results of the commodities quality check, defines quantity of commodities which quality corresponds to the normative-technical documentation requirements, and quantity of commodities which mismatch these requirements.

3.11. The procedure of the commodities quantity examination

3.11.1. Depending on the problem put by the customer an expert chooses a method of commodities quantity definition with a glance to the requirements of contract provisions and (or) requirements of the normative-technical documentation (standards).

Commodities selection check by quantity is executed only in the cases provided by contract provisions (provisions of the contract) and (or) requirements of the normative-technical documentation (standards). Concerning the commodities which weight depends on humidity, it is forbidden to define quantity without fixing actual humidity of commodities.

The approximate definition of the commodities quantity is not supposed.

3.11.2 Examination of the commodities quantity that have arrived in a vehicle

Before opening of a vehicle an expert (professional) is obliged:

to verify the number of a vehicle with number specified in a consignation note;

to check up a vehicle condition, the serviceability (technical condition) of a container, a carriage, a motor van, doors, door locks;

presence and condition of seals of a sender or a departure point (station, port), their serviceability, the conformity of the given seals prints with the data specified in transport and shipping documents.

In the course of opening of a vehicle an expert (professional) is obliged:

to present at removal of a seal by the customer (commodities owner);

to check up the existence of waterproof paper on the interior of doors;

to define the filling degree of a vehicle with commodities, a way of cargo fastening, presence of blockages, container serviceability;

to pay attention to commodity and precautionary marks of commodities if commodities application cautious treatment;

to check up a temperature regime at the moment of vehicle opening if commodities were transported in a certain mode;

to define an order of unloading and calculation of commodities from a vehicle, which excludes the necessity of repeated recalculation.

Calculation and quantity record of commodities are executed simultaneously by an expert (professional) and the customer at the moment of vehicle opening and unloading.

 At detection the commodity places which have damage with access to the commodities or which are slightly wet, the quantity of commodities in them is checked at once after unloading of these commodity places.

Presence of defects which can be fixed only at the moment of vehicle opening and unloading is checked simultaneously. The reason of damage or slightly wetting of commodities is being fixed whenever possible.

The quantity of commodities in a vehicle is compared to the data of transport and shipping documents.

After unloading of all commodities from a vehicle an expert (professional) in case of divergence of commodities actual quantity with the data of shipping documents or damage of commodities packing is obliged to make careful inspection of a vehicle, thus to pay attention to serviceability of a roof, a floor, etc. If necessary the customer (commodities owner) should provide the execution of a commercial certificate.

3.11.3. Quantity examination of commodities loaded into a vehicle

Before the beginning of commodities loading into a vehicle an expert (professional) is obliged:

to check up a vehicle condition, serviceability (a technical condition) of a container, a carriage, a motor van, doors, door locks;

to check up the availability of a vehicle to commodities loading.

In the course of vehicle loading an expert (professional) is obliged:

to pay attention to the vehicle filling with commodities, a way of cargo fastening, the serviceability of a container (packing);

to pay attention to commodity and precautionary marks of commodities if commodities application cautious treatment;

to get convinced of the equipment serviceability which provides a temperature regime if the commodities require transportation in a certain mode;

to define an order of loading and calculation of commodities into a vehicle, which excludes the necessity of repeated recalculation.

Calculations, quantity record of commodities are executed simultaneously by an expert (professional) and the customer at the moment of commodities loading into a vehicle.

Loading of commodities which have visible defects and (or) damage of a container (packing), is inadmissible.

3.11.4. Quantity examination of commodities in a storing place

Before beginning to define the commodities quantity an expert (professional) is obliged:

to examine a storing place of commodities;

to familiarize with an order of commodities warehousing and conditions of their storage (temperature, humidity and so forth);

to carry out the external inspection of commodities, paying attention to the existence of damages, the conformity of marks, including handling signs;

to define an order of commodities quantity calculation, which excludes the necessity of repeated recalculation.

Calculation and quantity record of commodities are executed simultaneously by an expert (professional) and the customer of examination.

3.11.5. The quantity examination of commodity places of commodities

Before beginning to define the quantity of commodity places an expert (professional) is obliged:

to examine a site of commodity places;

to familiarize with an order of commodity places warehousing and conditions of their storage (temperature, humidity and so forth);

to carry out the external inspection of commodity places, to fix the existence and arrangement of control tapes, metal cramps, paying attention to the existence of damages or opening signs, the conformity of transport marks, including handling signs.

At detection of commodity place damage or opening an expert (professional) is obliged:

to present at the opening of the damaged commodity place;

to carry out the external inspection of a commodity place and auxiliary packing means, to check up, how the commodities in a commodity place are laid, to check up the degree of commodity place filling and the condition of packing means;

to make calculation of the commodities quantity in the damaged commodity place together with the customer of examination (consignee);

to check up the presence of the information on the commodities and to compare it with data of the packing list, the specification of the supplier or with marks data on a commodity place;

to compare total quantity of products with the quantity specified in packing lists, specifications or in marks on a commodity place.

If there is no shipping specification and packing lists an expert compares the contents of each commodity place with marks data on the packing if it is available. If there is no data marks on the packing an expert fixes actual presence of the commodities in the damaged commodity place.

In case of divergence detection of commodities actual quantity in a commodity place with the data of the specification, packing lists or marks on the packing an expert (professional) operates as follows:

 repeatedly checks the commodities (carries out calculation, measurement, weighing) personally in the presence of the examination customer;

 carries out additional external and internal inspection of the container and means of packing in order to determine the reasons of shortage formation, if necessary carries out sampling of packing with signs of damage for research and concludes, whether the missing commodities could go into a commodity place;

executes control weighing of a commodity place (fixes own weight and gross weight);

notifies the customer about necessity to preserve the packing of a commodity place in which shortage has been found out, and the commodities which have been in it;

recommends to the customer to call representatives of law machinery in case signs of container and packing means damage are found.

3.11.6. The quantity examination of commodities which have arrived in commodity places

Before opening a commodity place an expert (professional) is obliged:

to examine the storage facilities in which commodities are stored;

to familiarize with an order of commodities warehousing and conditions of their storage (temperature, humidity and so forth);

to carry out the external inspection of commodity places, to fix the existence and arrangement of control tapes, metal cramps, paying attention to the existence of damages or opening signs, the conformity of transport marks, including handling signs.

In the course of opening a commodity place an expert (professional) is obliged:

to present at opening of each commodity place;

to carry out the internal inspection of a commodity place and auxiliary packing means, to check up, how the commodities in a commodity place are laid, to check up the degree of commodity place filling, whether packing paper, film, boxes are available, to check up their condition;

to make commodities calculation on each stock attribute together with a consignee;

to check up the presence of the information on commodities (article, sizes of products etc.) specified in marks on commodities and to compare it with data of the packing list, the specification of the supplier or with marks data on a commodity place;

to compare total quantity of products with the quantity specified in packing lists, specifications or in marks on a commodity place.

If there is supplier’s shipping specification (shipping documentation) and (or) packing lists, an expert (professional) compares the numbers of places specified in them with the numbers of places specified in marks, and in case they conform to each other he compares the results of actual check of the each commodity place contents with the data of the packing list and (or) per box specifications, fixes deviations in them.

Absence of invoice, specification, schedule, packing lists or some of them does not suspend the examination.

If there is no shipping specification and packing lists an expert (professional) compares each commodity place contents with marks data on the packing if it is available. If there are no data marks on the packing he fixes commodities actual availability in each commodity place.

In case of divergence of commodities actual quantity in a commodity place with the data of per box specifications, packing lists or marks on the packing an expert (professional) operates as follows:

ceases further opening of commodity places;

repeatedly checks the commodities (carries out calculation, measurement, weighing) personally in the presence of the examination customer;

carries out additional external and internal inspection of the container and means of packing in order to determine the reasons of shortage formation, if necessary carries out sampling of packing with signs of damage for research and concludes, whether the missing commodities could go into a commodity place;

executes control weighing of a commodity place (fixes own weight and gross weight);

notifies the customer about necessity to preserve the packing of a commodity place in which shortage has been found out, and the commodities which have been in it;

recommends to the customer to call representatives of law machinery in case signs of container and packing means damage are found.

An expert (professional) systematizes the results of check: counts up total amount of commodity places, the quantity of commodities by range, the quantity of commodities which mismatch shipping documents (shortage, surpluses, divergence by range, etc.). If possible, an expert (professional) concludes about the reasons of revealed discrepancies formation.

If in the consignment shown for commodities quantity check in a warehouse of the examination customer, the part of places has a broken packing with access to commodities or it is unpacked, an expert can specify the quantity of these commodities in the examination certificate only after results of not broken places check, behind their result.

3.11.7. Commodities quantity examination is executed without its temporary suspension as a rule.

In cases when an expert (professional) is compelled to suspend the quantity examination of commodities which have arrived in commodity places, the recipient is obliged to take measures to preserve the commodities during a break in examination. The time of the break start, its end and the reason which has caused it, should be fixed by an expert (professional).

A break in quantity examination at commodities unloading from vehicles is not allowed.

4. Requirements to the drawing up of the examination certificate

4.1. The examination certificate should be drawn up separately on every shipping consignment of commodities. It is not allowed to include commodities which have arrived under different contracts, from various suppliers in one certificate.

4.2. The examination results are processed on the basis of the data fixed by an expert (professional) in the course of examination execution.

4.3. An expert (professional) draws up the examination certificate with the help of printers accurately, without blots and reductions. An expert (professional) stipulates corrections in the examination certificate, certifies them by his signature and signatures of people who were taking part in examination. The corrections brought into a final part of the certificate, are certified only by an expert’s (professional’s) signature.

The examination certificate is printed in duplicate, the one is issued to the examination customer, and the second copy is handed over to records of expert organization.

4.4. The examination certificate is stated by a simple language, it is inappropriate to use foreign words and highly specialized terms and expressions in it needlessly. Nevertheless if special terms are necessary, they should be explained at the first mention in the text.

4.5. The examination certificate is drawn up on forms of expert organization and consists of three parts: introductory, descriptive and the conclusion.

4.5.1. The introductory part of the examination certificate

In the introductory part of the expert organization’s examination certificate following details are specified:

the name of the examination certificate;

the date and place of examination execution;

the basis for examination execution;

the task for examination execution;

the list of represented documents and materials;

summary data about expert organization, experts (professionals) and permission availability to render expert services (certified copies of justificative documents are applied to the examination certificate);

an expert’s (professional’s) surname, name and patronymic, education, speciality, the experience of work as the expert (professional), scientific degree and rank, appointment (certified copies of justificative documents are applied to the examination certificate);

surnames, names and patronymics of people, who were present at examination execution, with indication of their appointment and names of organizations they represent.

In the introductory part of the accredited expert organization’s examination certificate following details are specified:

the name of the examination certificate;

the date and place of examination execution;

the basis for examination execution;

the task for examination execution;

the list of represented documents and materials;

accreditation registration data;

an expert’s (professional’s) surname, name and patronymic;

surnames, names and patronymics of people, who were present at examination execution, with indication of their appointment and names of organizations they represent.

4.5.2. The descriptive part of the examination certificate

In the descriptive part of the examination certificate the examination order of the shown documents is described, a technique, ways of research and actually ascertained examination results (inspection and (or) analysis of the examination subject, performed calculations etc.) according to a task in view are stated, the time of the commodities check start and end are specified.

Methods of research and their results should be stated in such a way that it is possible to check up the accuracy of their conclusions, each conclusion in a descriptive part should be justified by references to the corresponding normative-technical documentation.

(the second part of subparagraph 4.5.2 in edition of Minutes of the Board’s Meeting of 24.08.2007 No 51)

The descriptive part of the examination certificate is subscribed by an expert (professional) and the representatives of organizations who were taking part in examination execution. If there is disagreement of the customer representative and(or) representatives of the organizations with the contents of the certificate the latter should sign it with reference to the special opinion which is attached to the examination certificate. If the customer representative and-or representatives of the organizations refuse to sign and represent special opinion in written form, an expert (professional) has the right to execute the examination certificate without their signatures, but he should note a corresponding record in the examination certificate.

4.5.3. The expert's (professional’s) conclusion

In the conclusion an expert (professional) gives well-reasoned answers to the questions put in task for examination.

The conclusion whenever possible should be drawn up by an expert (professional) briefly, specifically and well-grounded on the assumption of undoubted and objective data, and so clear that further expert's (professional’s) explanations are not required.

Credible or presumable summary cannot be taken as a principle of the conclusions.

The conclusion should correspond to the problems put before an expert (professional) and to the descriptive part of the certificate.

An expert (professional) signs the conclusion and is responsible for examination results according to the legislation in force.

4.6. Phototables, reference and justificative documents and materials are attached to the examination certificate. If a copy of the document is granted it should be certified by the organization which has given it out.

5. The procedure of examination certificate registration and delivery to the customer

5.1. The examination certificate that is prepared and signed by an expert (professional) is registered by expert organization.

The registration fact is certified by the stamp and signature of the expert organization director.

5.2. The executed and registered examination certificate with appendices is transferred to the examination customer against his signature, with indication of the receipt date, surname, signature and appointment of the person who has received the certificate, or, in coordination with the customer, goes by registered mail with a return receipt. In this case a return receipt is the document that justifies the fact of performed work (service) transference to the customer, and is subjoined to the second copy of the examination certificate by expert organization.

5.3. The second copy of the examination certificate with all appendices on which the expert's conclusion is based, is handed over to records and is stored within three years.

5.4. After examination certificate registration changes or additions can be brought in it only if there is a permission of the expert organization head in the presence of the justified written proposition of the customer.