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(b) if the destination of the crude oil is outside the EU or outside the country in which the
Loading Terminal is located and, if required by the applicable VAT/GST regime in
which the Loading Terminal is located, the Buyer provides to the Seller, within 30 days
of the Seller’s request, evidence satisfactory to the EU state or the applicable VAT/GST
regime in which the Loading Terminal is located that the crude oil has been received by
the Buyer, or on the Buyer’s behalf, or by some other party acting on its own behalf, at
such destination.
31.1.3 In circumstances where either Section 31.1.2 above may apply, the Seller will issue a valid
tax invoice in respect of the crude oil which is zero rated for VAT or GST. However, if the
Buyer fails to comply with the requirements set out in Section 31.1.2 above within the allotted
time frame or in the event of any fraud or misappropriation in respect of the crude oil and/or
the documents/information referred to in Section 31.1.2 above, the Seller shall be entitled to
issue a further tax invoice for the amount of any VAT or GST payable on the crude oil
(inclusive of duty if appropriate) together with any penalties and/or interest at the rate
stipulated under the VAT/GST rules applicable. Such invoice may be rendered either in local
currency of the country in which such tax is payable or, at the Seller's option, in the invoicing
currency for the crude oil, converted at the appropriate exchange rate prevailing at the date
of the tax point under the relevant VAT/GST rules. Any such invoice shall be paid in full within
one banking day in New York of presentation of such tax invoice or, if later, the date of
payment for the crude oil, in each case without set-off, withholding, deduction or
counterclaim, to the Seller's bank account. Any outstanding amount shall bear interest in
accordance with the provisions of Section 32.8 hereof.
31.1.4 The Buyer shall indemnify the Seller in respect of any costs, penalties and interest incurred by
the Seller as a result of the Buyer's failure to pay, or delay in paying, any VAT, GST or similar
tax in accordance with the Agreement.
31.1.5 If the Seller is subsequently able to obtain a credit or repayment from the authorities of any
such VAT, GST or similar tax which has been paid by the Buyer, the Seller shall within 5
banking days in New York from the time the Seller received the credit or repayment,
reimburse the Buyer with the net amount so credited or repaid less any costs, penalties and
interest. The Seller shall use all reasonable efforts, at the cost of the Buyer, to obtain such
credit or repayment.
31.1.6 For the purposes of this Section, “evidence satisfactory” to an EU state shall, as a minimum
and without prejudice to the provisions of Section 30 hereof, require a certificate of discharge
of the crude oil. For the avoidance of doubt, the Buyer shall not be obliged to provide any
documents pursuant to this Section which are not required by the relevant authorities in the EU
state in question.
31.2 Other taxes, duties, etc.
31.2.1 The Buyer’s responsibilities
The amount of any taxes, duties, imposts, fees, charges and dues of every description
imposed or levied by any governmental, local or port authority on the crude oil supplied
hereunder, or on its export, delivery, transportation, ownership, sale or use, in respect of any
stage after risk in such crude oil has passed to the Buyer, shall be for the Buyer's account.
In the case of FOB sales, all taxes, duties, imposts, fees, charges (including, without limitation,
pilotage, mooring and towage expenses) and dues (including, without limitation, quay dues)
in respect of the Vessel incurred at the Loading Terminal shall be for the Buyer’s account.
In the case of CFR and CIF sales, all taxes, duties, imposts, fees, charges (including, without
limitation, pilotage, mooring and towage expenses) and dues (including, without limitation,
quay dues) in respect of the Vessel incurred at the Discharge Port shall be for the Buyer’s
account, except for those specified in Worldscale as being for the owners account.
For the avoidance of doubt and in respect of every type of sale, the Seller shall not be the
importer of record but shall be responsible for ensuring that the Buyer is provided with all
necessary documentation required to comply with customs and excise entry procedures at the