HOW THIS BOOKLET WILL BENEFIT YOU...September 2018 HOW THIS BOOKLET WILL BENEFIT YOU Page 2 of 18 Ensure that goods reach the designated destination safely, speedily and without problems

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SPII Shipping, Packing

and Invoicing Instructions

September 2018

SARAWAK SHELL BERHAD

SABAH SHELL PETROLEUM COMPANY LIMITED

September 2018

HOW THIS BOOKLET WILL BENEFIT YOU

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Ensure that goods reach the designated destination safely, speedily and without problems.

Informs SELLER of Company’s packing, shipping, and invoicing requirements.

Directs SELLER where to send the Goods, shipping documents and invoices.

Inform where and what documents to submit with SELLER’s invoices, enabling timely payment by Company.

Avoid being charged unnecessary costs such as levies or fines by third parties because of non-compliance to delivery terms.

These instructions together with the terms and conditions set out on the General Terms and Conditions form an integral part of the Purchase Order. These instructions equally apply to “Goods and Services” supplied pursuant to call-off orders placed against Price Agreement and Contracts. They are to be followed and complied with, without deviation.

Failure to do so may result in:

Additional costs (e.g. bond rents, fines, levies) incurred by BUYER, due to SELLER’s non-compliance, and which shall be charged to SELLER.

Payment to SELLER being delayed.

Exclusion of SELLER from future enquiries.

It is the responsibility of SELLER when acting as an AGENT to ensure compliance on behalf of its PRINCIPAL.

QUERIES?

Please quote the Purchase Order number when making queries.

The warehouse is open from 09.00 hours to 15.00 hours on Shell working days only. The addresses are as below:

Queries About Telephone Email

Purchase Order (PO) Refer to the contact particulars stated on the PO

Delivery to Labuan Warehouse

+6087 596490

+6087 596523 [email protected]

Delivery to Miri Warehouse


Customs and freight forwarding


All Invoicing & Payment matters

N/A [email protected]

MIRI LABUAN F.T.

(LUTONG WAREHOUSE) SARAWAK SHELL BERHAD (SSB)

LOCKED BAG NO 1, 98009 MIRI, SARAWAK, MALAYSIA

WAREHOUSE OPERATION SUPPORT SABAH SHELL PETROLEUM COMPANY LIMITED,

LABUAN SUPPLY BASE MAIN WAREHOUSE, JALAN RANCHA RANCHA INDUSTRIAL ESTATE,

87025 W.P. LABUAN, MALAYSIA

mailto:[email protected]



September 2018

TABLE OF CONTENT

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CHAPTER

1 PACKING AND LABELLING

2 CERTIFICATES

3 SHIPPING REQUIREMENTS

4 DELIVERY TO WAREHOUSE

5 HOW TO GET PAID

6 APPENDICES

September 2018


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1.1. The general idea for proper packing is to safeguard the Goods so that they can withstand the rigors of handling, shipment and environmental exposure while complying with appropriate safety, transport and business regulations.

1.2. The packing must be strong enough to withstand rough handling and storage during shipment. If BUYER requires special packing, this will be specified in the Purchase Order.

1.3. Goods must be properly preserved for transport and storage under tropical conditions for duration up to the warranty/guarantee period provided by the Manufacturer.

1.4. Proper packing and labelling helps all parties who will be dealing with the Goods to handle them safely, properly and send them to the correct final destinations. The BUYER reserves the right to reject the Goods if it is not packed and labelled in accordance with the requirements stated herein.

1.5. For packing of Goods, be it in crates or boxes, the following requirements ARE MANDATORY:

a) Goods in respect of each Purchase Order must be LABELLED INDIVIDUALLY.

b) Goods are to be packed in plain boxes that are shipping worthy. Usage of recycled food packaging boxes is STRICTLY NOT PERMITTED.

c) Both sides (opposite sides) of each packaging MUST BE LABELED CLEARLY showing:

BUYER’s Purchase Order Number

SELLER’s Delivery Order Number

SELLER’s name and address

Gross weight of the crates in kilograms

Package numbering within the crate/carton box: Box (number) of (total number of) boxes

Fragile/Hazardous/Keep Dry/Arrow Pointing Upright stickers/labels MUST be applied on all packages (where applicable) with delicate items.

1.6. For labelling of ALL TYPES OF GOODS, the following information ARE MANDATORY:


Purchase Order item No.

Material/Service No.

Description

1.7. Specifically applicable for structural material (eg; tubes, pipes, fittings, flanges, plates, beams of all types of iron and steel and the like), each item MUST be labeled showing the following additional information:

Size/Dimension

Heat Number

Country of Origin

September 2018


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1.8. Specific requirement for supply and delivery of gas cylinders:

For delivery to BUYER’s warehouse, gas cylinders MUST be packed inside a proper standard gas rack (standing) complete with cylinder caps. Failure to comply will result in items being rejected at Company’s warehouse.

Individual gas cylinder MUST be stenciled with the following:

SELLER’s Company Name


Purchase Order item No.

Material/Service No.

Last inspection Date

Next inspection Date

Serial Number of Cylinder

* Please refer to Appendix I for further details on labelling requirement.

1.9. Classification, packaging and labeling of all chemicals MUST conform to latest edition of the Malaysia’s Occupational Safety and Health (Classification, Labelling and Safety Data Sheet of Hazardous Chemicals) Regulations 2013 or any updates/amendments from time to time in force.

1.10. Dangerous and Hazardous Goods MUST be packed and shipped in accordance with appropriate International Packing (UN Standards) and Transport Regulations. MSDS or CSDS (English AND Bahasa Malaysia versions) must accompany all Dangerous and Hazardous Goods.

September 2018

2 CERTIFICATES

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Certificates are required to ascertain the Goods’ quality, country of origin, compliance to approved standard(s) and/or agreed specifications and performance. Certificates MUST accompany the Goods when delivering to BUYER’s warehouse.

2.1 In general, the Certificates required may include any of the following which list is non-exhaustive:

Mill Certificate(s)

Country of Origin Certificate(s)

Certificate of Conformity (CoC)

Test Certificate(s)

Inspection Certificate(s)

Release Certificate(s)

Material Safety Data Sheet(s) in English AND Bahasa Malaysia

* Please refer to Appendix II for sample of the different type of Certificates.

2.2 The Certificates MUST be ORIGINAL COPY. If the Certificates are issued by Manufacturer or Principal Supplier, SELLER MUST verifies the certificates first and confirms “CERTIFIED TRUE COPY” on the Certificates. In the event where the GOODS come directly from the Manufacturer and the original Certificates are inside the packaging, SELLER MUST attach scanned copy of the Certificates to the Delivery Order.

2.3 Each Certificate for the Goods MUST indicate BUYER’s Purchase Order number and the corresponding item number.

2.4 SELLER to supply any additional Certificates where stated in the Purchase Order.

2.5 For the following type of materials, it is MANDATORY for certificates to accompany the Goods, failing which the delivery of the Goods will be rejected during delivery at BUYER’s warehouse:

Casing, Tubing and Accessories.

Wellhead Equipment and Accessories.

Hoisting and Lifting Equipment.

Marine and Offshore Installations.

Instrumentation.

Electrical.

Tubular Goods/Pipes.

Fittings and Flanges.

Valves and Accessories.

Bars, Plates, Sheets and wire products.

Industrial gas cylinders.

Chemicals

September 2018

2 CERTIFICATES

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2.6 For Duplex Stainless Steel (DSS) and Super Duplex Stainless Steel (SDSS) material, Goods MUST comply to the minimum requirement in Table below and Test Certificates MUST accompany the Goods when delivered to BUYER’s warehouse.

No Requirement Applicable Standard Acceptance Criteria

a)

Mechanical

properties (tensile

and hardness)

Industrial standard

governing material grade

In accordance with industrial standard governing material grade

b) Charpy impact test

ASTM A370 or ISO 148-1 and supplemented by

applicable standards above

60 J minimum average with no single value less than 45 J at test temperature -50°C.

c) Microstructural

examination

ASTM A923 Method A Uniform ferrite and austenite phase distribution, maximum 1% volume fraction of inter-metallic phases and third phase.

d) Ferrite / austenite

balance

ASTM E562 Ferrite content 40-60% for base material and solution annealed weldments and 35-65% for weld metal and HAZ.

e) Pitting corrosion test

ASTM G48 Practice A No pitting on the test face surface at 20x magnification and weight loss less than 4.0 g/m2 at test temperature 25°C for DSS and 50°C for SDSS)

September 2018


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3.1 Depending on specified delivery terms, i.e. Incoterms in Purchase Order, Shipping documents are required by the BUYER at the final destination. The BUYER requires these Shipping documents to perform custom clearance(s) of Goods delivered. Shipping documents MUST contain correct information.

3.2 Failure to provide relevant Shipping documents may result in additional charges in the form of Custom Bond rents and port demurrage charges which shall be borne solely by SELLER.

3.3 All correspondence regarding Shipping documents shall be sent via EMAIL to the Custom and Freight forwarding team. For deliver(ies) on Incoterm (2010) regardless of destination, SELLER shall follow the following process:

(i) Certificate of Approval (COA) is applicable for tube, pipes, plates, beams of all type of iron and steel and any other materials that are subject to import license or permit from relevant authorities. COA application will be based on individual PO and country of origin. Any cargo below 500KG weight does not require COA Application. (ii) Applicable for structural material (eg; tubes, pipes, fittings, flanges, plates, beams of all types of iron and steel and the like) (ii) From Manufacturer for exemption from testing, not required if structural materials are for “maintenance use”

3.4 SELLER MUST ensure the following information is on the Bill of Lading or Airway Bill:

Consignee – Sarawak Shell Berhad / Sabah Shell Petroleum Company (per information in BUYER’s Purchase Order)

Notify Party – BUYER’s appointed Freight Forwarding Agent

Destination

Mandatory Documents required from SELLER

Accompanying goods (ORIGINAL)

Emailed 2 weeks in advance (COPY)

Accompanying goods (ORIGINAL)

Emailed 2 weeks in advance (COPY)

BY AIR BY SEA

All Destination

i) Airway bill sticker with number

ii) Shipping invoice(s)

iii) Packing list iv) PO v) All Relevant

Certificates

i) Airway bill ii) Shipping

invoice(s) iii) Packing List iv) Certificate of

Country of origin

v) Exporter Letter to CIDB for COA Application(i)

vi) Certified true copy of mill certificate(ii)

vii) API Monogram(iii)

i) Bill of Lading ii) Shipping

invoice(s) iii) Packing list iv) PO v) All Relevant

Certificates

i) Bill of Lading ii) Shipping

invoice(s) iii) Packing List iv) Certificate of

Country of origin

v) Exporter Letter to CIDB for COA Application(i)

vi) Certified true copy of mill certificate(ii)

vii) API Monogram(iii)

September 2018


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3.5 Shipping Invoices MUST adhere to these points:

The original Shipping Invoice must originate from the SELLER as the Consignor, on Consignor’s letter head, signed in ink and stamped with Consignor’s Company Seal.

Shipping Invoice must show to whom the goods are:

o “SOLD TO”

o “SHIPPED TO”

Shipping Invoice must NOT have statements such as :

o “PROFORMA INVOICE”

o “FREE OF CHARGE”

o “FOR CUSTOMS PURPOSES”

o “NO COMMERCIAL VALUE”

Shipping Invoice shall contain:

o Invoice number (One invoice for each Purchase Order)

o BUYER’s Purchase Order(s) number(s)

o Incoterms (for example: DAP SHELL LSB Warehouse, DAP Lutong Warehouse)

o Item number and description (Must be Identical to BUYER’s Purchase Order)

o Identification of each item (Serial number, Machine number, Unique number)

o Country of origin of each item

o Quantity of each item

o Unit price of each item

o Total monetary value of each item

o Other charges if applicable (for example: mark-up, commissions)

o Total invoice value and currency

o Type of package ( for example : wooden crates )

o Number of packages

o Gross weight of each package in Kilograms

o Net weight of each package in Kilograms

o Dimension of each package in centimeters

o Shipping marks as shown on each package (please refer section 2 for shipping marks)

o Certificates related to the consignment (such as: Certificate of Origin)

3.6 Shipping documents will be verified by BUYER’s appointed Freight Forwarding Agent (BUYER’s Agent) and once deemed complete, BUYER’s Agent will submit to Customs Department for clearance. Once Custom cleared, BUYER’s Agent will contact SELLER to inform that good(s) is ready for delivery.

September 2018


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3.7 Specifically applicable for deliver(ies) on FCA/FOB Incoterm (2010), SELLER shall follow the following process:

Shipping documents will be verified by BUYER appointed Freight Forwarding Agent (BUYER’s Agent) and once deemed complete, BUYER’s Agent will arrange for transportation and communicate shipping details to SELLER.

SELLER is to obtain at SELLER’s own risk and expense any export license(s) or other official authorization and carry out all customs formalities necessary for the exportation of the goods.

SELLER is to load the Goods onto the vessel/plane named by the BUYER at the named port of shipment/airport on the date or within the period stipulated and in the manner customary at the receiving port.

SELLER to give the BUYER immediate notice that the Goods have been delivered on board.

BUYER’s Agent will sign Delivery Order (DO) produced by SELLER once custody of goods has been transferred to BUYER’s Agent.

SELLER must handover all original documents to BUYER’s Agent.

Upon receipt of signed DO by BUYER’s Agent, SELLER may submit invoice for payment.

September 2018


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4.1 For Delivery to Labuan Supply Base Warehouse, SELLER to inform BUYER’s Labuan Warehouse Operations Support MINIMUM 3 WORKING DAYS IN ADVANCE prior to delivery of Goods weighing MORE THAN 2.50 TONNES and/or Goods that require special handling equipment.

4.2 For Delivery to Lutong Warehouse Miri, SELLER to inform BUYER’s Miri Warehouse Operations Support MINIMUM 2 WEEKS IN ADVANCE prior to delivery of oversize and overweight Goods that require special permit.

4.3 For Delivery to other work site locations in Malaysia, SELLER to communicate with respective Buyers to identify authorized receiver.

4.4 All delivery to BUYER’s warehouse MUST BE ACCOMPANIED WITH A COPY OF PURCHASE ORDER, DELIVERY ORDER, RELEVANT CERTIFICATES AND/OR DATA SHEET. SELLER is strongly encouraged to deliver Goods direct to BUYER's warehouse by themselves or via local agents.

4.5 The Purchase Order number and correct Company’s name must be indicated in the Delivery Order, relevant certificates, data sheet and all documents/correspondences pertaining to the Purchase Order.

4.6 All delivery to BUYER’s warehouse shall STRICTLY COMPLY with Shell’s 12 Life Saving Rules and minimum Personal Protective Equipment (PPE) requirements i.e. safety boots, safety googles, safety helmet, gloves and all other PPE that is necessary to deliver the Goods in a safe manner to BUYER.

4.7 BUYER reserves the right to decline entry into BUYER’s warehouse, for any failure to comply to the 12 Life Saving Rules and minimum PPE requirements. Any cost incurred for re-delivery shall be borne solely by SELLER.

4.8 SELLER to ensure upon delivery to BUYER’s warehouse, their Delivery Order is acknowledged with the following information:

Name of Receiver at BUYER’s warehouse;

Signature of Receiver;

Company Stamp (Optional);

Date of receipt

Failure to get the Delivery Order acknowledged properly may result in SELLER not getting paid.

September 2018


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4.9 Specifically for Delivery by COURIER SERVICE to BUYER’s LABUAN SUPPLY BASE WAREHOUSE

4.9.1 PRIOR to send-out, SELLER MUST email a copy of the Purchase Order, Delivery Order and a photo of the Goods to [email protected].

4.9.2 Each package MUST BE LABELED clearly showing:


SELLER’s Delivery Order Number

Applicable labelling (eg: fragile, hazardous etc)

And accompanied with a copy of the Purchase Order, Delivery Order and relevant certificates OUTSIDE the package

4.9.3 Dangerous Goods (DG) or possible content of DG is NOT ALLOWED to be sent via courier service.

4.10 Where the Goods are to be delivered to BUYER’s OTHER WORK SITE LOCATIONS in Malaysia by COURIER SERVICE, SELLER to communicate with respective Buyers to identify authorized receiver.


September 2018

5 HOW TO GET PAID

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5.1 To ensure timely payment for the Goods supplied, SELLER shall submit their invoices together with the relevant documents to BUYER’s SBSCKL SMEP Scanning Unit.

5.2 Payment invoices must originate from the SELLER and NOT the Principal.

5.3 All ORIGINAL invoices must be submitted together with details of the amount charged for each Purchase Order and issued against the CORRECT SHELL COMPANY’S NAME AS PRINTED IN THE PURCHASE ORDER.

5.4 Each invoice MUST indicate the PURCHASE ORDER (PO) Number. The PO number and PO line item numbers (where applicable) must be specified on the invoice. The invoice MUST also include amongst others, the following information as a minimum:

Invoice number/ reference and date

Period of work performed/Goods delivered

Location of service done

SST Rate & Amount, if applicable

WHT amount (if any)

5.5 All original invoices MUST be type-written with the following required information to appear on THE FIRST PAGE OF THE INVOICE:

i) SELLER details (Name, Address, Postcode) to appear on the invoice header (top 25%) as per sample below

ii) Footer (bottom 20%) of the page as per sample below.

5.6 The payment date is determined automatically according to the PO payment term and from the date the invoice is received by SMEP’s scanning Unit.

5.7 SELLER’s SST Tax Invoice MUST NOT contains a mixture of taxable and non-taxable items. SELLER MUST issue separate invoices for items with different SST treatment. Tax invoices with SST charges must follow the most current format specified by the Customs authorities.

5.8 Original invoices that are submitted to BUYER’s business users will result in delayed payment to the SELLER.

September 2018

5 HOW TO GET PAID

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5.9 Since April 2016, BUYER has implemented Optical Character Recognition (OCR) solution for invoices to further simplify and automate the registration and processing of SELLER’s invoices in SAP.

5.10 No handwriting on the original invoice is allowed as it will not be recognized/ read by the OCR and this would result in delayed payment.

5.11 Submission of original invoices via EMAIL (E-invoices) IS PREFERRED and will result in faster processing.

5.12 For ORIGINAL invoices submitted electronically via email (E-invoices), SELLER may send them to this mailbox address : [email protected]

5.13 This mailbox is solely for the submission of PDF E-invoices only. Emails other than PDF E-invoice submission sent to the mailbox will be disregarded.

5.14 E-invoices MUST abide by the following requirements :

a) Invoices must be in PDF format, other formats will not be processed

b) The PDF file must not be password protected or in Zip Format

c) The PDF file invoices should be of at least 300 dpi (Dot per Inch) resolution

d) If converting a paper invoice to a PDF File, please ensure that the PDF/scan quality has at least 300 Dpi

e) Each invoice and supporting (multi pages) documents must be submitted together as one (1) PDF file. The invoice must be the first page in the multi-page document PDF file

f) If more than one (1) E- invoice is sent in one (1) email, they are to be separated by PDF file. One (1) PDF file is deemed as one (1) invoice by the OCR tool.

g) Ensure that PDF file is not damaged or corrupted. Damage or corrupted PDF file will not be processed and will result in delayed invoice payment

h) The size of each email is limited to 10MB only.

i) Do not send the same E-invoice more than once to this mailbox as it will create conflicts in the system which may delay your payment

5.15 Submission of hardcopy invoice subsequent to submission of E-invoice via email is NOT required. However, in the event the SELLER insist, SELLER to state “For Filing Purposes only” on the hardcopy invoice and courier to the following address:

Payment Unit

Attn: SMEP Scanning Unit

Wisma Shell

3450, Jalan Teknokrat 3,

63000 Cyberjaya

Selangor Darul Ehsan, Malaysia

5.16 All queries related to invoices and payment shall be directed to [email protected]



September 2018

6 APPENDICES

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APPENDIX I - LABELLING REQUIREMENT FOR ALL TYPE OF GOODS

Labelling Criteria per requirement below:

1. Font color: Black or White 2. Font type: Calibri 3. Font size: 8” in Capital Letters

Stenciling – Mandatory requirement for pipe dimension >3 inch and all other structural material as per sample below.

Laminated sticker label – Mandatory requirement for pipe dimension ≤3 inch, fittings, flanges, valves and all other structural material where stenciling is not possible, as per sample below.

Label must be laminated and pasted on each item.

For round bar type of material with smaller diameter where it is not possible to paste, to pack into bundle and laminated label to be tagged on each bundle.

September 2018

6 APPENDICES

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APPENDIX II - SAMPLE OF THE DIFFERENT TYPE OF CERTIFICATES

Sample – Certificate of Conformity

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Seller’s name and address

Purchase OrderPO Number :Date :Buyer :Tel No.:Fax No.:E-mail:

Buyer’s contract

Buyer’s PO Number

Scope of Supply

Item Material Description Qty U/M Unit Price Order Value

IMPORTANT NOTES

Item specifications, quantity etc against Seller’s Quotation are listed here

Buyer’s delivery terms, correspondence references, etc are listed here.

Important notes are listed here.

Seller’s name and address

Purchase OrderPO Number :Date :Buyer :Tel No.:Fax No.:E-mail:

Buyer’s contract

Buyer’s PO Number

Scope of Supply

Item Material Description Qty U/M Unit Price Order Value

IMPORTANT NOTES

Item specifications, quantity etc against Seller’s Quotation are listed here

Buyer’s delivery terms, correspondence references, etc are listed here.

Important notes are listed here.

APPENDIX III – PURCHASE ORDER SAMPLE

A) SAP PURCHASE ORDER (PO)

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Contracting and Procurement Shell Malaysia Exploration & Production

C/O

Sarawak Shell Berhad

Locked Bag No.1

98009 Miri, Sarawak, Malaysia

Telephone : 085-454545

Fax : 085-454808