Common use of Derogation Clause in Contracts

Derogation. Where raw materials/components do not comply 100% with the specification, suppliers may request MCG to allow its use by way of a derogation request (MCG format - please request current version from MCG – Derogation Requesting). In order to consider such request, it needs to be submitted with a minimum advance notice of one (1) week prior to having to be used or to be delivered. MCG reserve the right to accept/reject any derogation request. Where derogati3on requests impact on the number of coils (raw material) to be delivered, MCG shall charge a previously stipulated rate (according to annual price table in force) for each additional roll. Any material / components supplied under a derogation, must be send to MCG, properly identified (each component packaging / coil or each blank packaging) with a copy of the respective derogation and with a separate Delivery Note, where must be mentioned "Derogated Material".