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Report No: II08/240

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INSPECTION REPORT
REPORT NO. : II08/240
CLIENT : AXA INSURANCE SINGAPORE PTE LTD.
SCOPE OF SERVICE : DAMAGE SURVEY
COMMODITY : TIPCO NEWSPRINT PAPER
CERTIFICATE OF INSURANCE : ITC000376
BILL OF LADING : EGLV 060800093473
VESSEL/VOYAGE : UNI-ASPIRE 0242-190 / OOCL MANILA 017A
SHIPPER : TRUST INTERNATIONAL PAPER CORP.
6th FLOOR, ACE BLDG., 101RADA COR.
DELA RASA ST., LAGASPI VILLAGE,
MAKATI CITY 1229, PHILIPPINES
CONSIGNEE : TO ORDER OF
BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM
SAIGON BRANCH.
NOTIFY PARTY : TOAN LUC TRADING JOINT STOCK COMPANY.
34-36 PHAN VAN TRI STR., DIST. 5
HOCHIMINH CITY, VIETNAM
PORT OF LOADING : MANILA PORT, PHILIPPINES
PORT OF DISCHARGE : HOCHIMINH CITY PORT, VIETNAM
QUANTITY DECLARED : 758 ROLLS/ 14 CONTAINERS
QUANTITY INSPECTED : 54 ROLLS IN CONTAINER HMCU 9016332
DATE OF INSPECTION : 22 NOVEMBER 2008
PLACE OF INSPECTION : RECEIVER WAREHOUSE, HOCHIMINH CITY, VIETNAM
INSPECTORS : MAC TU KHOA

Report prepared for:


AXA INSURANCE SINGAPORE PTE LTD.

By IITS Company Ltd.


Date: 12 December 2008

All business is carried out and reported in accordance with our Terms and Conditions of Business which is available upon request
IITS Company Ltd.
28 Phung Khac Khoan St., Dist. 1, Hochiminh City, Vietnam. Tel: +84.8.827 4764. Fax: +84.8.827 4766. Email: info@iits-group.com - Web: www.
group.com
Report No: II08/240
Page 2 of 13
As per the request of AXA Insurance Singapore Pte., Ltd., we, surveyors of IITS
Company Ltd., attended Receiver’s warehouse on 22 November 2008 to carry out the
damage survey for the aforesaid consignment.
We report as follows:

I. GENERAL INFORMATION:
The newsprint paper rolls stuffed in 14 x 40’ containers and were shipped from Manila
port, Philippines to HoChiMinh city – CatLai port, Vietnam by M/v “UNI-ASPIRE 0242-
190” and “OOCL MANILA 017A” under Bill of Lading No. EGLV 060800093473. At the
time of receiving containers at CatLai port on 21 November 2008, the receiver found
container HMCU 9016332 got a hole on roof. This matter was noted to the concerned
parties.
An inspection order was sent to us by AXA INSURANCE SINGAPORE PTE LTD on
21/11/2008.

II. COMMODITY DETAILS:


As per Bill of Lading No. EGLV 060800093473 dated 15/10/2008 and relevant
documents, the details of the consignment are as follows:
• Commodity : TIPCO NEWSPRINT PAPER, SUBSTANCE 45 GSM, REEL WIDTH 82 CM
• Packing : In rolls covered by Kraft paper, lined by carton paper at 2 ends
• Quantity : 365.766 Mts/ 758 rolls/ 14 containers
• Invoice value : 338,333.55 USD (925.00 USD per Ton)

III. INSPECTION DETAILS


The inspection was carried out at receiver’s warehouse on 22 November 2008. The
details are as follows:
1. PARTICIPANTS:
 IITS surveyors – on behalf of AXA Insurance Singapore Pte. Ltd.
 Representative of Toan Luc Receiver.
2. TIME LOG:

Content Date
Cargo on board 15-10-2008
Cargo arrived Cat Lai disport 27/10-2008
Cargo arrived receiver’s warehouse 21-11-2008
Commenced unstuffing 21-11-2008
Completed unstuffing 23-11-2008
Found damage 21-11-2008
Commenced survey 22-11-2008
Completed survey 22-11-2008
Issued report 02-12-2008
All business is carried out and reported in accordance with our Terms and Conditions of Business which is available upon request
IITS Company Ltd.
28 Phung Khac Khoan St., Dist. 1, Hochiminh City, Vietnam. Tel: +84.8.827 4764. Fax: +84.8.827 4766. Email: info@iits-group.com - Web: www.
group.com
Report No: II08/240
Page 3 of 13

3. CONDITION OF CONTAINERS:
There are 13 containers were in normal condition and 01 damaged container with
detail as follows:
- Container number: HMCU 9016332
- Condition: 01 hole (0.5cm x 6cm) on the roof, at the middle, near the right top rail.
The stagnant water was found in container, corresponding to the position of the
aforesaid hole, other components of this container were found in normal condition.
4. CONDITION OF CARGO:
At the time of survey on 22/11/2008, container HMCU 9016332 was still intact seal,
the hole on roof taped. Opening container for checking condition cargo, the results are
as follows:
Quantity of normal cargo: 46 rolls
Quantity of damaged cargo: 8 rolls, with details are:
No. Roll Number Condition of roll Dimension measured
01 TI128J2214320 All surface x 300mm
02 TI128J2219254 All surface x 10mm
03 TI128J2219177 All surface x 160mm
Damp, wetted
04 TI128J2316308 All surface x 380mm
and/or swelled at
05 TI128J2214165 All surface x 200mm
the end of each roll.
06 TI128J2316320 All surfaces x 820mm
07 TI128J2219208 All surface x 10mm
08 TI128J2219308 All surface x 820mm

IV. EXTENT OF DAMAGE / SALVAGE VALUE


1. EXTENT OF DAMAGE:
Basing on our findings at the survey time as well as basing on the characteristic of
paper used for serial printing, the extent of damage is computed as follows:

Depth of Extent of Weight of


No. Roll Number Weight Diameter Core
wet damage damage
TI128J221432 100 All x
01 480 kgs 1010 mm 36.59 % 176 kgs
0 mm 300mm
TI128J221925 100
02 485 kgs 1016 mm All x 10mm 1.22 % 6 kgs
4 mm
TI128J221917 100 All x
03 480 kgs 1013 mm 19.51 % 94 kgs
7 mm 160mm
TI128J231630 100 All x
04 493 kgs 1016 mm 46.34 % 228 kgs
8 mm 380mm
TI128J221416 100 All x
05 482 kgs 1016 mm 24.39 % 118 kgs
5 mm 200mm
TI128J231632 100 All x 100.00
487 kgs 1016 mm 487 kgs
06 0 mm 820mm %
All business is carried out and reported in accordance with our Terms and Conditions of Business which is available upon request
IITS Company Ltd.
28 Phung Khac Khoan St., Dist. 1, Hochiminh City, Vietnam. Tel: +84.8.827 4764. Fax: +84.8.827 4766. Email: info@iits-group.com - Web: www.
group.com
Report No: II08/240
Page 4 of 13
TI128J221920 100
493 kgs 1014 mm All x 10mm 1.22 % 6 kgs
07 8 mm
TI128J221930 100 All x 100.00
494 kgs 1015 mm 494 kgs
08 8 mm 820mm %
Total 1,609 kgs

The loss value as per commercial invoice: 1.609 x 925 = 1,488.33 USD

2. SALVAGE VALUE:
According to Toan Luc consignee’s information, the above consignment of paper
was imported for trade to use for serial printing. Therefore, they cannot receive
the good remain parts of the damaged rolls for their main purpose.
Basing on the consignee’s loss claim and their salvage value, we arranged a public
sale and found out Tan Vinh Cuong Co. Ltd., as the best retail buyer to sale this
damaged cargo. The details are as follows:

Cargo: Paper in rolls (wetted)


Quantity: 3.894 Mts ( 8 rolls)
Unit price: 4,500,000 VND per ton
Total amount: 3.894 x 4,500,000 = 17,523,000 VND (equal with 1,032 USD)

V. COMMENT
Basing on the above mentioned inspection results, we are of the opinion that, because
the container holed on roof therefore the water went into container and the damage
occured right after that.

VI. PHOTOGRAPHS:
A set of photographs was taken during inspection performance and adhered to this
report.

This report reflects our findings at the time and place indicated above and does not refer to any other
matters.
This survey has been carried out to the best of our knowledge and ability and our responsibility is limited to
the exercise of reasonable care.
This company shall only be responsible to the client by whom this survey was requested. We are not liable
to any other party except the client in connection with this survey as the advice contained herein is limited
to the scope of the instructions received.

For IITS Company Ltd.

APPENDIX

 Certificate of insurance
 Bill of lading
 Packing list
 Commercial invoice

All business is carried out and reported in accordance with our Terms and Conditions of Business which is available upon request
IITS Company Ltd.
28 Phung Khac Khoan St., Dist. 1, Hochiminh City, Vietnam. Tel: +84.8.827 4764. Fax: +84.8.827 4766. Email: info@iits-group.com - Web: www.
group.com
Report No: II08/240
Page 5 of 13

Photo 01: Container HMCU 9016332 with intact seal at the time of survey.

Photo 02: A taped hole was found on the roof


All business is carried out and reported in accordance with our Terms and Conditions of Business which is available upon request
IITS Company Ltd.
28 Phung Khac Khoan St., Dist. 1, Hochiminh City, Vietnam. Tel: +84.8.827 4764. Fax: +84.8.827 4766. Email: info@iits-group.com - Web: www.
group.com
Report No: II08/240
Page 6 of 13

Photo 03: Opening the tape for checking the hole (0.5cm x 6cm)

Photo 04: Condition of stowage in container


All business is carried out and reported in accordance with our Terms and Conditions of Business which is available upon request
IITS Company Ltd.
28 Phung Khac Khoan St., Dist. 1, Hochiminh City, Vietnam. Tel: +84.8.827 4764. Fax: +84.8.827 4766. Email: info@iits-group.com - Web: www.
group.com
Report No: II08/240
Page 7 of 13

Photo 05: Water was found in container at position corresponding with the hole on roof.

Photo 06: Condition of cargo rolls affected by water.


All business is carried out and reported in accordance with our Terms and Conditions of Business which is available upon request
IITS Company Ltd.
28 Phung Khac Khoan St., Dist. 1, Hochiminh City, Vietnam. Tel: +84.8.827 4764. Fax: +84.8.827 4766. Email: info@iits-group.com - Web: www.
group.com
Report No: II08/240
Page 8 of 13

Photo 07: Condition of cargo rolls affected by water.

Photo 08: Marking


All business is carried out and reported in accordance with our Terms and Conditions of Business which is available upon request
IITS Company Ltd.
28 Phung Khac Khoan St., Dist. 1, Hochiminh City, Vietnam. Tel: +84.8.827 4764. Fax: +84.8.827 4766. Email: info@iits-group.com - Web: www.
group.com
Report No: II08/240
Page 9 of 13

Photo 09: Condition of damage

Photo 10: Condition of damage


All business is carried out and reported in accordance with our Terms and Conditions of Business which is available upon request
IITS Company Ltd.
28 Phung Khac Khoan St., Dist. 1, Hochiminh City, Vietnam. Tel: +84.8.827 4764. Fax: +84.8.827 4766. Email: info@iits-group.com - Web: www.
group.com
Report No: II08/240
Page 10 of 13

Photo 11: Condition of damage

Photo 12: Condition of damage


All business is carried out and reported in accordance with our Terms and Conditions of Business which is available upon request
IITS Company Ltd.
28 Phung Khac Khoan St., Dist. 1, Hochiminh City, Vietnam. Tel: +84.8.827 4764. Fax: +84.8.827 4766. Email: info@iits-group.com - Web: www.
group.com
Report No: II08/240
Page 11 of 13

Photo 13: Condition of damage

Photo 14: Condition of damage


All business is carried out and reported in accordance with our Terms and Conditions of Business which is available upon request
IITS Company Ltd.
28 Phung Khac Khoan St., Dist. 1, Hochiminh City, Vietnam. Tel: +84.8.827 4764. Fax: +84.8.827 4766. Email: info@iits-group.com - Web: www.
group.com
Report No: II08/240
Page 12 of 13

Photo 15: Condition of damage

Photo 16: Condition of damage


All business is carried out and reported in accordance with our Terms and Conditions of Business which is available upon request
IITS Company Ltd.
28 Phung Khac Khoan St., Dist. 1, Hochiminh City, Vietnam. Tel: +84.8.827 4764. Fax: +84.8.827 4766. Email: info@iits-group.com - Web: www.
group.com
Report No: II08/240
Page 13 of 13

Photo 17: Condition of damage

Photo 18: Condition of damage


All business is carried out and reported in accordance with our Terms and Conditions of Business which is available upon request
IITS Company Ltd.
28 Phung Khac Khoan St., Dist. 1, Hochiminh City, Vietnam. Tel: +84.8.827 4764. Fax: +84.8.827 4766. Email: info@iits-group.com - Web: www.
group.com

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