Logistics
Logistics is a key pillar of our supply chain strategy. We provide you with all the essential information regarding the specifications, incoterms, merchandise conditions, transportation, packaging, and customs clearance of goods from our suppliers.
Specifications (CDC) or Import List:
To benefit from the customs duty exemptions as provided in the SimFer Mining Convention, goods imported or sold from bonded warehouses of Guinean suppliers must be included in the SimFer CDC or that of SimFer’s direct contractor (annex of the SimFer CDC).
The CDC is annual, prepared between June and September of year N-1, and submitted by SimFer in mid-September for review by the CPDM and Customs before final approval by the Minister of the Budget by the end of December of year N-1. This approved CDC will be valid for the entire year N.
It is therefore imperative to plan ahead in order to benefit from customs duty exemptions according to the customs regime of the SimFer Mining Convention.
Only SimFer’s direct contractors and suppliers (having a contract signed by SimFer) can benefit from these exemptions.
Any goods not listed in the SimFer CDC and its direct contractors must be imported with all taxes included (TTC) and subject to the full payment of customs duties, at the expense of the contractor or supplier.
In certain exceptional cases, SimFer may accept to prepare an additional CDC during the year, but this exemption is exceptional and only the SimFer logistics management is authorized to make this decision.
Incoterms to be used for duty-free importation
Throughout the construction phase of the SimFer project, the SimFer logistics management requires that the incoterms used for duty-free importation of goods be FCA or FOB.
This means that the contractor or supplier will be responsible for the first part of the logistics chain (from the supplier’s warehouse in the exporting country to the export port under FCA, up to loading onto the vessel under FOB) and that SimFer will directly manage the rest of the import logistics chain with its own logistics providers, including sea and air transport, customs clearance in Guinea, and road transport to the site.
Any supplier or contractor deciding to use another Incoterm without prior written approval from SimFer logistics management will assume the payment of all customs duties.
Packaging of Goods
The contractor or supplier is responsible for ensuring the compliance of the packaging of goods at the origin.
Any damage to the goods caused by non-compliance of the packaging with SimFer’s requirements will be entirely the responsibility of the contractor or supplier.
The contractor or supplier must ensure that the packaging of the goods at the origin takes into account delivery constraints, such as sea transport, port handling, and road transport in Guinea, where some roads may be unpaved and subject to deterioration, especially during the rainy season, for example.
Preparation for Duty-Free Importation
The contractor or supplier must take the usual import timelines into account in their contractual schedule with Simfer.
For example, for goods that are not classified as oversized imported by sea from China, already listed in the SimFer CDC, and with 100% compliant import documents, the usual timeline includes, in addition to all preliminary steps in the exporting country:
- 45 to 60 days of maritime transport (the duration is shorter for goods from Europe, for example),
- Then 8 to 15 days for customs clearance,
- Then 6 to 7 days for road delivery (1 day for loading at the port, 4-5 days of road transport, 1 day for unloading).
Before the goods are even loaded onto the vessel at the export port, the contractor or supplier must IMPERATIVELY submit draft import documents (including the commercial invoice and packing list) to the SimFer’s logistics team for document review and correction requests if necessary.
The contractor or supplier will only be authorised to commence the delivery process once written confirmation regarding the compliance of the draft import documents has been obtained.
If this rule is not followed, the contractor or supplier will be responsible for the full payment of customs duties, and potential customs penalties if applicable.
Customs Clearance of Duty-Free Goods
SimFer directly manages the customs clearance of goods imported with customs duty exemptions, using one of the customs brokers under contract with SimFer, selected through a transparent tender process and compliant with local content criteria. For all goods, the customs broker is chosen by SimFer based on the recent performance of brokers contracted with SimFer.
It is strictly prohibited for any contractor or supplier of SimFer to engage another customs broker or attempt to directly manage the customs clearance of any goods benefiting from customs duty exemptions under SimFer’s customs regime.
On-Site Delivery, Road Transport, Including Health and Safety Rules
As a rule, only road transport companies under contract with SimFer are authorized to deliver goods to the site. These transporters, selected through a transparent tender process and in accordance with local content criteria, comply with SimFer’s road transport specifications, which include, for example, the following requirements:
- Company pre-qualified by SimFer’s transport and HSE teams, during a 2-step audit: questionnaire to be completed followed by a 2-day physical and documentary audit;
- Operational management process validated by Simfer;
- Preventive and corrective maintenance process validated by SimFer;
- HSE management process for road freight transport validated by SimFer;
- Transport and driver performance management process validated by SimFer (this process includes all HSE performance indicators required by Simfer);
- New or recent truck in perfect working condition, audited by SimFer and officially integrated into SimFer’s transport fleet;
- Operational OBC tracking system on all trucks and accessible in real-time by SimFer’s transport team;
- Drivers and driver assistants employed by the transport company;
- Complete and up-to-date driver training plan, audited and validated by SimFer;
- Driver trainer employed by the transport company and certified to train drivers, particularly regarding the 16 modules of defensive driving;
- Complete and good condition PPE for the driver and their assistant;
- Complete and good condition HSE equipment on each truck.
For imported goods, SimFer’s logistics team directly selects the transporter from the transport companies contracted with SimFer, responsible for delivering the goods on-site.
For goods purchased in Guinea, the supplier is required to deliver to SimFer’s warehouse in Coléah-Conakry, and on-site delivery will be carried out by a transporter selected by the logistics team from the transport companies contracted with SimFer.
SimFer’s logistics management may exceptionally grant written exemptions, allowing a contractor or supplier to deliver goods directly. To obtain this written exemption, the contractor or supplier must first:
- Submit a written exemption request to the logistics management;
- Provide SimFer’s logistics management with the direct contact of the proposed transport company;
- Ensure that the proposed transport company completes the checklist sent by SimFer’s logistics management;
- Ensure that the proposed transport company is physically audited by SimFer’s transport and HSE teams;
- Receive from the logistics management the audit result and written authorization to use the proposed transport.
Failure to comply with any of these necessary steps to obtain the transport exemption exposes the contractor or supplier to sanctions from SimFer, including contract cancellation.
