Common use of Materials on Consignment Clause in Contracts

Materials on Consignment. Where materials are supplied by HP on consignment: (a) CM shall be responsible for all forwarding and brokerage costs and customs duties or user fees. CM shall also assist HP with all import formalities and obtain customs clearance for such consigned materials. (b) As long as CM continues to have possession of the material supplied by HP, HP shall retain legal title to all such materials supplied. In the event such materials are used even with loss of identity, the legal title to the resultant products shall remain in HP. (c) CM shall submit to HP on a monthly basis, a report on the balance of consigned materials in the possession and control of CM at its premises in an agreed format. (d) HP reserves the right to perform a periodic statistical audit of CM's physical inventory. (e) Upon termination of this Agreement and/or business relationship for whatever reasons, CM shall return the remaining quantity of consigned materials to HP in good condition.