Freeport Facility Clause Samples
The Freeport Facility clause defines the terms under which goods may be stored in a designated freeport facility, typically a secure warehouse where goods can be held without incurring local import duties or taxes. This clause outlines the responsibilities of the parties regarding storage, handling, and insurance of the goods while they remain in the freeport, and may specify conditions for access, inspection, or removal of the items. Its core practical function is to facilitate the temporary storage and transfer of goods in a tax-efficient manner, often used in international trade or for high-value items such as art, thereby solving logistical and financial challenges related to customs and taxation.
Freeport Facility. Customer acknowledges that it is familiar with the general specifications and locations for the LNG berthing and unloading facilities of the Freeport Facility as of the date hereof. FLNG acknowledges that such specifications have taken into consideration the necessary ship-shore compatibility in relation to typical LNG tankers existing as of the Effective Date. After the date hereof, Customer shall ensure, at no cost to FLNG except as set forth in Section 8.2(b), that each of the LNG Vessels is fully compatible with the Freeport Facility. Should an LNG Vessel fail materially either to be compatible with the Freeport Facility, or to be in compliance with the provisions of Article 9, Customer shall not employ such LNG Vessel until it has been modified to be so compatible or to so comply.
Freeport Facility. 32 8.2 Compatibility of Freeport Facility with LNG Vessels...............34 8.3
Freeport Facility. Freeport Facility
Freeport Facility. 8.1 Freeport Facility 8.2 Modifications to Freeport Facility 8.3 Customer Inspection Rights
Freeport Facility. 8.1 Freeport Facility
(a) Standard of Operation. By the Commercial Start Date, FLNG shall cause the Freeport Facility to be constructed and commissioned. On and after the Commercial Start Date, FLNG shall at all times provide, maintain and operate (or cause to be provided, maintained and operated) the Freeport Facility in accordance with the following: (i) International LNG Terminal Standards; and (ii) to the extent not inconsistent with International LNG Terminal Standards, such good and prudent practices as are generally followed in the LNG industry by Reasonable and Prudent Operators of LNG receiving and regasification terminals. On and after the Commercial Start Date, FLNG shall at all times provide, maintain and operate (or cause to be provided, maintained and operated) the Freeport Facility Pipeline in accordance with (i) Pipeline Standards; and (ii) to the extent not inconsistent with Pipeline Standards, such good and prudent practices as are generally followed by Reasonable and Prudent Operators of U.S. Gas pipelines.