Terms of Delivery and Payment Terms

1. Conclusion of a contract

Delivery contracts are concluded in writing. These are executed in accordance with the latest version of Deutscher Garnkontrakt e.V. (German Yarn Contract) and in line with the following terms. Any of the customer’s purchase conditions, which conflict with the terms stated below, shall be deemed invalid.

2. Classification and acceptance

The classification of ordered yarns shall be undertaken in good time. If the classification is not done in time, the vendor is entitled to the rights as per Section 375 of the German Commercial Code (HGB). As regards contracts with pending number and type submissions, the German Yarn Contract Part I (5.) Delivery and Payment Terms shall apply. Where the buyer’s deliveries are

  • less than 500kg per lot, the vendor is entitled to increase the agreed rate by 5%
  • less than 300kg per lot, the vendor is entitled to increase the agreed rate by 10%.

This does not include amounts ordered as samples. For Mouline and fancy yarns, the quantity refers to individual threads, insofar as these differ from the other twisted threads in terms of lot, yarn number or finish.

3. Quantity tolerance

The vendor may deliver more or less (given below as a percentage) :

  • for deliveries of lots up to and including 2000kg ± 10%
  • for deliveries of lots exceeding 2000kg ±5%

Higher deviations in tolerances are to be accepted for fancy yarns.

4. Disruptions to deliveries

Operational disruptions specified under Section 1 (9.) of the German Yarn Contract also include: measures stemming from international or national public authorities, power shortage, strikes, lockouts, transport disruption and the like, as well as circumstances where the vendor is unavailable to execute particular raw materials or auxiliary materials as per contract for reasons for which they cannot be held accountable, either partly or entirely.

5. Tubes

X- yarn tubes are invoiced as yarn and are non-returnable. For a surcharge of 2.5%, it can be agreed upon that only the yarn will be charged for (net yarn). In this case, the plastic tubes or ring tubes (heavy tubes), if in a good condition, may be returned by the buyer within two (2) months ‘franco’ (carriage paid).

6. Payment

a) It is not permitted to offset invoice amounts due with a contested counterclaim or to hold back amounts payable, even in cases of complaints.

b) In the event of the buyer putting forward a protested bill of exchange, non-redemption of a cheque amount or non-payment, all invoice amounts become due with immediate effect.

7. Notices of defects

The vendor shall not be held liable for

a) minor deviations that cannot be avoided – either technical or commercial – in terms of quality, colour or finish of the yarns supplied (including the fibre mix ratio and the degree of foreign fibres). The vendor reserves the right for deviations in fancy yarns and twisted yarns in line with the current state of technology concerning problems associated with the yarn (dyeing, burls etc.).

b) Foreign fibres in yarns that are not part of the original textile materials.

c) Defects that would have been avoided if the yarns had been processed appropriately, such as with multi-protective or multi-system interweaving

d) Errors that occur as a result of processing different lots or units at the same time.

As far as finished yarns are concerned, the vendor is only liable for errors that occur as a result of deficiencies in the raw materials, the dyes used as well as the finish, insofar as a warranty has been given by the suppliers of the fibres or dyes. For yarns that have been finished in a particular way either by the buyer or on their behalf, the vendor is only liable for errors that occur as a result of defects in the raw materials where the fibre supplier provides a warranty, presuming that the fibres have been treated appropriately.

In the event of obvious defects, the vendor is entitled to a prompt one-off repair of the goods or to receive defect-free replacement goods. Repair and replacement must take place within a reasonable period of at least six weeks after receipt of the returned goods. Defective goods may only be returned once the vendor has given his consent to this. In the meantime, the buyer shall store the goods free of charge for the vendor. Where defects only become visible once the supplied goods have been processed, the buyer’s claim is limited to a reduction in the purchase price of the goods in question based on the delivery that caused the damage. Claims for further extensive damage and claims constituting a breach of property rights are not accepted.

8. Moisture surcharge

This is governed principally by the provisions stipulated in the German Yarn Contract, Section 2 (1. Commercial Weight).
For polyester acrylic yarns and twines, the permitted moisture surcharge on dry weight is 2.5%.

9. Commercial number (commercial fineness)

The following percentages shall apply as permissible deviations that cannot be avoided in the spinning of yarns under spinning conditions for semi-worsted yarns, triple condenser yarns, open-end yarns and fancy yarns and for twisted yarns from these yarns:

  • up to and incl. Nm 5 (200 tex) ± 10%
  • greater than Nm 5 and up to Nm 7 (less than 200 tex bis 145 tex) ± 8%
  • greater than Nm 7 (less than 145 tex) ± 6%
  • for smooth fancy yarns ± 4%

Where deviations in the numbers (fineness) are greater than the tolerance values stated above, the full deviation from the agreed yarn number (yarn fineness) is to be credited. For small lots, the buyer is expected to accept a higher degree of deviation.

10. Test dyeing and other checks

In the case of tufting/weaving, 1-3m of raw white material must be dyed in the test procedure, in order to detect any possible faults. Afterwards, following a trial run where everything has worked according to plan, a normal dyeing process is to be carried out on material measuring 500m.
Flock-dyed yarns need to be checked for streaks prior to processing. If raw white and dyed yarns, or even yarns comprising a different fibre structure are processed together, a sufficient inspection is to be carried out for uniform shrinkage.

11. Addendum for international customers

a) Where yarns are exported, the "Single Law on the Conclusion of International Contracts of Sale for Movable Items" as well as the "Single Law on the International Purchase of Movable Items” is expressly excluded.

b) Place of jurisdiction The vendor shall also be entitled to file proceedings at the court responsible where the offices of the international ordering party or buyer is registered or, if appropriate, at the court of the capital of the country in which the ordering party or buyer has their registered office.

Retention of title:

The yarn shall remain the property of the vendor until full payment of the purchase price, including all secondary claims, has been made. The retention of title does not preclude the buyer’s right to process or to sell the supplied goods as part of regular business operations. However, as long as the retention of title exists, the buyer may not use the goods as security, nor may they be pledged. Where the yarn or the items made from the yarn are garnished or seized, the buyer must notify the vendor of this in writing and without delay.

Where the goods are processed further, the vendor’s ownership shall not cease, however, as a result of combining, mixing or processing the yarn, rather the contracting parties agree that the newly produced goods created by the transformation are new items for the vendor as the owner or as the co-owner. In the event that the buyer sells the yarns or the items created from them before full payment has been made, the vendor shall make an offer to be willing to accept the assignment of receivables from customers who have taken over the goods, to the buyer as security. If the buyer sells on the goods made of the yarns that have been delivered to him, the assignment of goods is limited to the invoice value of the yarns contained in the further processed goods. The acceptance of this offer by the buyer takes place on the return of the declaration of consent or by accepting a delivery of goods without objection after having received these terms. The buyer undertakes to inform the vendor of any legal or economic change to the supplied goods (sale, processing) upon request.

Likewise, the buyer must immediately provide notice of any claim made by third parties concerning goods entrusted to him, in particularly judicial or administrative seizures, or any other enforcement measures.