Terms of business

Two services, two sets of terms

Custody

Governed by the account mandate you sign before anything is deposited. It fixes the storage type, the fee basis, the mandated signatories and the withdrawal instructions.

Carriage, packing and clearance

Governed by the standard trading conditions incorporated into each booking, together with the applicable carriage convention. Trading conditions adopted: to be supplied

Custody

Storage type decides what you own

This is the most important line on the mandate.

Allocated

Specific identified pieces, recorded to your account by serial number. They are your property, held by us as bailee. They are not our assets and do not form part of our estate if we become insolvent.

Segregated

Allocated, and additionally kept physically apart from other clients' metal.

Pooled

A contractual claim on a quantity of identical metal, not on identified pieces. Cheaper, and a materially different legal position. It is explained again on the mandate and initialled separately.

Deposits and records

Each piece is entered with its refiner, serial number as struck, fineness, gross weight, fine weight, assay reference where one exists, and its position in the vault. Fine weight is calculated as gross weight × fineness ÷ 1000; it is never keyed in by hand. Every movement is an append-only ledger entry showing what moved, when, on whose instruction and against which document. Corrections are made as reversing entries, so the original stays visible.

Getting metal out

Withdrawal is by written instruction from a mandated signatory, against identity verification, to an address on the mandate or by collection in person. Allocated metal is returned as the same pieces unless you instruct otherwise. We do not accept release instructions by telephone.

Charges

Storage is charged on the basis fixed in the mandate, either as a percentage of value per annum or as a flat periodic amount, and invoiced in arrears. Deposits, withdrawals, inspections and carriage are quoted separately. Unpaid invoices accrue statutory interest under the Late Payment of Commercial Debts (Interest) Act 1998 where the account is a business account. We may exercise a general lien over goods in our possession for unpaid charges properly due, which is a normal bailee's right and is not a release fee.

Carriage, packing and clearance

Capacity in which we act

We act as a forwarding agent arranging carriage, and as a carrier only where we expressly say so in writing on the booking. That distinction changes who is liable and under which convention, so the booking confirmation states it.

Charges and chargeable weight

Air

The greater of actual gross weight and volumetric weight, calculated as length × width × height in centimetres ÷ 6,000, unless the quotation states another divisor.

Sea

The greater of weight and cubic measure. Container loading is planned to the 23,000 kg UK road limit, which is lower than the box will physically hold.

Duty and tax

Customs duty and import VAT are the importer's liability and are payable to the authority, not to us. We do not release goods against an unpaid charge, because the authority does not permit it.

Your obligations

1. Provide an accurate, itemised packing list and, for commercial shipments, a commercial invoice.
2. Declare hazardous goods in advance of collection, not on arrival at the airport or depot.
3. Declare accurately what is inside. A misdeclaration can void insurance and constitute an offence.
4. Hold the right to deal with the goods, and confirm they are not subject to any sanction or prohibition.

Liability limits

Carrier liability is limited by international convention and by the trading conditions, and those limits are low relative to the value of bullion. As an indication only:

These limits are not insurance and will not make you whole. They exist to cap a carrier's exposure, not to protect the value of your goods.

Insurance

Cargo and storage insurance is arranged on request and is strongly recommended on every movement and every account. Cover exists when it is written on the instruction and not otherwise. We never assume it. The insurer, the policy limits and the excess are stated on the cover note. Underwriter: to be supplied

Claims

Notify loss or damage in writing immediately, and in any event within the period stated in the applicable convention or trading conditions, which is often very short. Keep the packaging and the goods available for survey. See the complaints procedure for how a claim is handled.

Things we will not do

1. Take release instructions by telephone.
2. Accept goods we cannot lawfully handle, or where the sourcing cannot be established. See sanctions and sourcing.
3. Open an account without completing identity checks. See anti-money-laundering.
4. Charge a fee to release, clear, unlock or insure metal a client already owns.

Governing law

These terms are governed by the law of England and Wales, and the courts of England and Wales have exclusive jurisdiction, without prejudice to any mandatory convention.

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Questions about this document go to info@goldstarbullionsecurity.com, or write to Gold Star Bullion Security, 144 Houndsditch, London EC3A 7BX, United Kingdom.