{"id":3910,"date":"2025-10-16T17:57:48","date_gmt":"2025-10-16T14:57:48","guid":{"rendered":"https:\/\/danil-hristich.com\/?p=3910"},"modified":"2026-05-28T10:57:03","modified_gmt":"2026-05-28T07:57:03","slug":"gafta-contracts-and-arbitration-2025-what-has-changed","status":"publish","type":"post","link":"https:\/\/danil-hristich.com\/en\/gafta-contracts-and-arbitration-2025-what-has-changed\/","title":{"rendered":"Gafta Contracts and Arbitration 2025: What Has Changed"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">\u0421\u043e\u0434\u0435\u0440\u0436\u0430\u043d\u0438\u0435<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/danil-hristich.com\/en\/gafta-contracts-and-arbitration-2025-what-has-changed\/#Payment_under_C_F_CFR_and_CIF_Contracts_Letter_of_Indemnity_and_Bank_Guarantees\" title=\"Payment under C&amp;F \/ CFR and CIF Contracts (Letter of Indemnity and Bank Guarantees)\">Payment under C&amp;F \/ CFR and CIF Contracts (Letter of Indemnity and Bank Guarantees)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/danil-hristich.com\/en\/gafta-contracts-and-arbitration-2025-what-has-changed\/#Appropriation_Clause_in_C_F_CFR_and_CIF_Contracts_Time_Limits_Adjusted\" title=\"Appropriation Clause in C&amp;F \/ CFR and CIF Contracts: Time Limits Adjusted\">Appropriation Clause in C&amp;F \/ CFR and CIF Contracts: Time Limits Adjusted<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/danil-hristich.com\/en\/gafta-contracts-and-arbitration-2025-what-has-changed\/#Date_of_Default_in_Gafta_C_F_CFR_and_CIF_Contracts\" title=\"Date of Default in Gafta C&amp;F \/ CFR and CIF Contracts\">Date of Default in Gafta C&amp;F \/ CFR and CIF Contracts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/danil-hristich.com\/en\/gafta-contracts-and-arbitration-2025-what-has-changed\/#Final_Quality_under_Gafta_47_and_Gafta_49\" title=\"Final Quality under Gafta 47 and Gafta 49\">Final Quality under Gafta 47 and Gafta 49<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/danil-hristich.com\/en\/gafta-contracts-and-arbitration-2025-what-has-changed\/#Gafta_124_Sampling_of_Malting_Barley\" title=\"Gafta 124: Sampling of Malting Barley\">Gafta 124: Sampling of Malting Barley<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/danil-hristich.com\/en\/gafta-contracts-and-arbitration-2025-what-has-changed\/#Gafta_131_Sampling_Clause_for_EU_Deliveries\" title=\"Gafta 131: Sampling Clause for EU Deliveries\">Gafta 131: Sampling Clause for EU Deliveries<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/danil-hristich.com\/en\/gafta-contracts-and-arbitration-2025-what-has-changed\/#Gafta_126_Shorter_Deadline_for_Deposit_Payment\" title=\"Gafta 126: Shorter Deadline for Deposit Payment\">Gafta 126: Shorter Deadline for Deposit Payment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/danil-hristich.com\/en\/gafta-contracts-and-arbitration-2025-what-has-changed\/#Other_Changes\" title=\"Other Changes\">Other Changes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/danil-hristich.com\/en\/gafta-contracts-and-arbitration-2025-what-has-changed\/#Need_Legal_Advice\" title=\"Need Legal Advice?\">Need Legal Advice?<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>As of 1 October 2025, several amendments to Gafta contracts and arbitration rules have come into effect. The changes include revised provisions on delivery under a Letter of Indemnity (LOI), modified appropriation deadlines in several proformas, clarification of the \u201cdeemed default\u201d date, a shorter deposit payment period under Gafta 126, finality of quality under Gafta 47 and 49, the introduction of a sampling clause for EU deliveries, and the standardisation of electronic submissions under Gafta 125. Below is a detailed overview of all updates.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Payment_under_C_F_CFR_and_CIF_Contracts_Letter_of_Indemnity_and_Bank_Guarantees\"><\/span>Payment under C&amp;F \/ CFR and CIF Contracts (Letter of Indemnity and Bank Guarantees)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>What has changed:<\/strong> The payment provisions for C&amp;F\/C&amp;FFO\/CIF\/CIFFO contracts were revised with respect to Letters of Indemnity and bank guarantees.<\/p>\n\n\n\n<p><strong>Previous version<\/strong> (<strong>summary <\/strong>of clauses 12(d)\u2013(f) of Gafta 48, effective from 1 January 2022):<\/p>\n\n\n\n<p>(d) In the absence of all shipping documents upon the vessel\u2019s arrival at the port of discharge, the seller <span style=\"text-decoration: underline;\">shall<\/span> provide the buyer with a Letter of Indemnity to enable discharge of the cargo.<\/p>\n\n\n\n<p>(e) If the seller failed to provide either the documents or the Letter of Indemnity, the buyer was entitled to take delivery under its own LOI and make payment <span style=\"text-decoration: underline;\">after<\/span> all the shipping documents had been received.<\/p>\n\n\n\n<p>(f) In the absence of bills of lading or other documents, the buyer was entitled to pay for the goods provided that the seller furnished a bank guarantee ensuring receipt of such documents in due course.<\/p>\n\n\n\n<p><strong>New version<\/strong> (Gafta 48, October 2025 edition, clause 12(d); <strong>summary<\/strong>):<\/p>\n\n\n\n<p>(d) In the absence of a full set of shipping documents, the seller <span style=\"text-decoration: underline;\">may at their option<\/span> issue an LOI in exchange for payment. Clauses (e) and (f) have been deleted.<\/p>\n\n\n\n<p><strong>Why it matters:<\/strong> Previously, a seller could be compelled to release the goods against an LOI, exposing them to the risk of non-payment. Now, the seller is protected: issuing an LOI is optional, and the parties must agree separately on any discharge without documents.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Appropriation_Clause_in_C_F_CFR_and_CIF_Contracts_Time_Limits_Adjusted\"><\/span>Appropriation Clause in C&amp;F \/ CFR and CIF Contracts: Time Limits Adjusted<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>What has changed:<\/strong> Gafta has changed the time limit for serving a Notice of Appropriation in several proformas (for instance, from 2 to 3 business days in Gafta 80) and unified the wording across contracts.<\/p>\n\n\n\n<p>For example, in the old version of Gafta 48, clause 11(b) stated: <em>\u201cThe Non-Business Days Clause shall not apply.\u201d<\/em> Since appropriation periods are in any case calculated in business days, that phrase was potentially confusing. It has now been deleted.<\/p>\n\n\n\n<p><strong>Why it matters:<\/strong> Timely service of a Notice of Appropriation is a condition of the contract. Delay gives the buyer the right to terminate the contract, declare the seller in default, and claim damages.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Date_of_Default_in_Gafta_C_F_CFR_and_CIF_Contracts\"><\/span>Date of Default in Gafta C&amp;F \/ CFR and CIF Contracts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>What has changed:<\/strong> The period for \u201cautomatic\u201d default has been extended: if a Notice of Appropriation is not served within <strong>five business days<\/strong> after the last day of the appropriation period (previously four), the seller is deemed to be in default. The <strong>default date<\/strong> is the first business day after expiry of that period.<\/p>\n\n\n\n<p><strong>Why it matters:<\/strong> The date of default is crucial for <strong>damage calculation<\/strong>. It determines the market price against which the contract price is compared.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Final_Quality_under_Gafta_47_and_Gafta_49\"><\/span>Final Quality under Gafta 47 and Gafta 49<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>What has changed:<\/strong> Gafta 47 and Gafta 49 now include a full <strong>Quality Clause<\/strong>, expressly stating that <strong>the quality at the place of delivery is final<\/strong>.<\/p>\n\n\n\n<p><strong>Why it matters:<\/strong> Arbitrators and courts treat final certificates strictly. Except in very limited cases (such as proven fraud), even an <strong>erroneous surveyor\u2019s certificate remains binding and final<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Gafta_124_Sampling_of_Malting_Barley\"><\/span>Gafta 124: Sampling of Malting Barley<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>What has changed:<\/strong> Sampling Rule 9.5.2.4 of Gafta 124 has been amended for malting barley. A <strong>third analysis<\/strong> may now be carried out where the first two test results differ significantly (by more than <strong>0.50%<\/strong>).<\/p>\n\n\n\n<p><strong>Why it matters:<\/strong> This amendment provides greater protection for buyers where the initial results differ materially.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Gafta_131_Sampling_Clause_for_EU_Deliveries\"><\/span>Gafta 131: Sampling Clause for EU Deliveries<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>What has changed:<\/strong> Gafta 131 (optional clauses) now includes a new clause for goods imported in the EU.<\/p>\n\n\n\n<p><strong>Key provisions:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Sampling by holds:<\/strong> To comply with EU regulations on pesticide residues, mycotoxins, plant toxins and other contaminants, samples must be taken <strong>per hold<\/strong>.<\/li>\n\n\n\n<li><strong>Number of increments:<\/strong> to be taken from each hold; must be determined based on its Nominated Quantity, as set out in <strong>Gafta 124<\/strong>.<\/li>\n\n\n\n<li><strong>Separate sets:<\/strong> A separate set of samples must be prepared for each hold and made available for analysis upon request.<\/li>\n<\/ul>\n\n\n\n<p><strong>Why it matters:<\/strong> The clause allows parties to align their sampling procedures with EU import requirements in advance, thereby reducing the risk of compliance disputes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Gafta_126_Shorter_Deadline_for_Deposit_Payment\"><\/span>Gafta 126: Shorter Deadline for Deposit Payment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>What has changed:<\/strong> Under Rule 4.1, the arbitration deposit must now be paid within <strong>30 days<\/strong>, instead of 60.<\/p>\n\n\n\n<p><strong>Why it matters:<\/strong> If the deposit is not paid on time, the claim is treated as <strong>waived and time-barred<\/strong>. The arbitrator may exercise discretion to reinstate the claim under Rule 9, but in practice <strong>late payment is rarely excused<\/strong>.<\/p>\n\n\n\n<p>Given that Gafta 126 provides for <strong>expedited arbitration<\/strong> (e.g. seven days to reply, compared to twenty-eight under Gafta 125), the shorter deposit deadline aligns with its summary nature.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_Changes\"><\/span>Other Changes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Gafta has also introduced a number of minor adjustments to its arbitration rules and contract forms. For instance, Rule 4.4 of the <a href=\"https:\/\/danil-hristich.com\/en\/gafta-arbitration-general-guide\/\">Gafta 125 Arbitration Rules<\/a> now provides that all submissions and evidence must be served by email, with hard copies only required upon the arbitrators\u2019 request.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Need_Legal_Advice\"><\/span>Need Legal Advice?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you require legal advice under English law or assistance with Gafta contracts or arbitration, you may contact me:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"mailto:danil@danil-hristich.com\"><\/a><a href=\"mailto:danil@danil-hristich.com\" target=\"_blank\" rel=\"noreferrer noopener\">danil@danil-hristich.com<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/t.me\/danilhristich\" target=\"_blank\" rel=\"noreferrer noopener\">Telegram<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/wa.me\/380632956265\" target=\"_blank\" rel=\"noreferrer noopener\">WhatsApp<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>As of 1 October 2025, several amendments to Gafta contracts and arbitration rules have come into effect. The changes include revised provisions on delivery under a Letter of Indemnity (LOI), modified appropriation deadlines in several proformas, clarification of the \u201cdeemed default\u201d date, a shorter deposit payment period under Gafta 126, finality of quality under Gafta<\/p>\n","protected":false},"author":1,"featured_media":3903,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"rank_math_title":"","rank_math_description":"","rank_math_focus_keyword":"","footnotes":""},"categories":[1],"tags":[206,361,360,359,697,13],"class_list":{"0":"post-3910","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-main","8":"tag-arbitration-en","9":"tag-c-amp-f","10":"tag-cfr","11":"tag-cif","12":"tag-contracts-2","13":"tag-gafta"},"_links":{"self":[{"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/posts\/3910","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/comments?post=3910"}],"version-history":[{"count":2,"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/posts\/3910\/revisions"}],"predecessor-version":[{"id":3940,"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/posts\/3910\/revisions\/3940"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/media\/3903"}],"wp:attachment":[{"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/media?parent=3910"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/categories?post=3910"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/danil-hristich.com\/en\/wp-json\/wp\/v2\/tags?post=3910"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}