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Criteria for selecting Contractors for product distribution.

In compliance with Federal Law No. 381-FZ “On the Basic Principles of State Regulation of Trading Activities in the Russian Federation”, ZAO Confectionery Factory, hereinafter referred to as “Company”, provides information on criteria for selecting Contractors for product distribution.

Criteria for selecting Contractors for product distribution.

  • The Company selects Contractors based on the unified set of criteria, depending on their transparency, economic efficiency and equal access to information.
  • The Company examines integrity and checks law compliance of all Contractors.
  • Contractors selection criteria:

3.1. Companies or individual entrepreneurs must meet following requirements to become Contractors of the Company:

  • The Contractor must be registered as required by law;
  • The Contractor must not have a reorganization/liquidation/bankruptcy status;
  • Reputation as a reliable partner:

– The Contractor must have no history of non-performance or improper performance of contract obligations;

– The Contractor must have no history of violation of current legislation;

– The Contractor must have no history of multiple breach of distribution contracts concluded with other partners of the Contractor;

– The Contractor must have a stable financial situation;

– The Contractor must take interest in increase in the demand for goods and further development of the product distribution;

– At least one year of experience in the confectionery wholesale or food retail market;

– Distribution volume: at least 30 tons per month;

– Distribution contract with full prepayment;

– A Contractor must possess space for product storage and sales;

– A Contractor must have a possibility to dispatch the goods from the warehouse of the Company.

To conclude the contract, the Contractor must provide the Company with following documents affixed with the seal (if possible) and signed by the head of the company:

4.1. For legal entities:

  • Extract from the Unified State Register of Legal Entities issued not earlier than 30 days before the conclusion of the distribution contract;
  • Certificate of State Registration of a Legal Entity (OGRN);
  • Tax Identification Number (INN);
  • Latest version of the constituent documents;
  • Executive body credentials;
  • Reports for the latest accounting period;
  • Customer’s card signed by head of the company and chief accountant. The card must include: full and short name of the company of Contractor; legal and physical address; telephone numbers; Tax Identification Number (INN) and Tax Registration Reason Code (KPP); full names of head of the company and chief accountant.

4.2.For individual entrepreneurs:

  • Primary State Registration Number of the Individual Entrepreneur (OGRNIP);
  • Tax Identification Number (INN);
  • Internal Passport of Russian citizen (pages with the photo and address of registration).

4.3. In case the contract is not signed by the head of the company (entrepreneur), the Contractor must provide a proxy for signing the distribution contract.

4.4. On the request of the Company, the Contractor must provide other required documents.

5. Essential terms of the contract. Essential terms include information about the product (name of the product) and the quantity (item #3 articles 455 and 465 of the Civil Code of the Russian Federation), as well as terms and deadlines of product distribution (Article 506 of the Civil Code). Another essential term is information about the price of the product. When, during the conclusion of a contract for delivery, disagreements arose between the parties over particular terms and conditions of the contract, the party which has offered to conclude the contract and received from the other party the proposal on the adjustment of these terms and conditions shall, during 30 days since the day of receipt of this proposal, unless a different date is fixed by law and agreed upon between the parties, take measures on the coordination of the relevant terms and conditions of the contract or notify in writing the other party about the refusal to conclude it. (Article 507 of the Civil Code).

6. The Company may conclude a distribution contract drawn by the Contractor if the terms of this contract are acceptable for the Company.

7. Disclosure of this information about the criteria for selecting Contractors for product distribution does not constitute a public offer.

8. The company is entitled to review, modify and specify the terms at any time.