Warehouse Criteria

All companies who wish to become MMTA Approved must conform to the following: Warehouse Company Criteria Financial and Regulatory Note: MMTA approval applies to a named location & address and not the company in its entirety

Ownership

1. An MMTA approved warehouse operator must own the warehouse building or hold a direct lease with the actual owners for a period of a minimum of at least three years. A signed letter from a Director of the Company confirming warehouse ownership or long lease to be provided to the MMTA. Such letter to be shared by the warehouse operator with the Inspection Company upon request.
2. An approved MMTA warehouse is not permitted to be multi-tenanted.
3. The Company shall be neutral, not owned or associated with any Trading Company.
4. The Company must have their own personnel experienced in the metals business. The company is required to employ a minimum of 3 persons (clerical - for site) and 3 persons (physical warehouse staff for each individual warehouse building) for handling and administration of the subject products whilst in storage. The clerical and physical warehouse staff must be experienced in their field of work with clear segregation of duties. Additionally, 4-eyes principle to be applied at all - times.
5. The Company must be financially sound with a minimum net worth of US$ 1,000,000.00 or have financial guarantees in place to cover the cost and expenses of leased premises, equipment, staff, etc for a minimum period of 12 months.
6. The Company must have an Indemnity Insurance in place for a minimum of USD 1,250,000.00 (or local currency equivalent), per each occurrence, to cover any losses caused by fraud and negligence by their own personnel and any unexplained losses. In order for the insurance policy to be invoked, it is a condition that a/ it may only be invoked by a paid-up MMTA member's insurance company claiming against the warehouse's insurer and b/ the member is understood to have agreed to abide by the warehouse’s General Terms and Conditions (GTCs) in its contract with the warehouse covering the goods in question. The minimum figure requirement may be increased by the Association if the market prices of metals on the MMTA’s product list greatly increase in value. Any insurance increase to be reviewed at the time of annual insurance submissionby the Warehouse Standards Committee who will propose new minimum US$ levels, if so needed, to the MMTA Board for subsequent approval. is the responsibility of the warehouse to ensure that the MMTA is sent a copy of the relevant insurance indemnity policy annually.
7. The Company must have strict working procedures in place, to ISO standard or equivalent outside body governing the warehousing and logistics trade.
8. The Company must be able to act for MMTA members in relation to all their customs needs whether directly or through an authorized third-party customs broker.
9. The Warehouse must agree to biennial inspections by the MMTA’s appointed independent inspection companies and also to undertake self-assessment inspections during the non- external inspection years. Such self-assessment to be done according to MMTA’s inspection report format.

10. The MMTA reserves the right to request a 3rd Party inspection of a warehouse in the period between the biennial inspections. The basis of the inspection would be a complaint received from an MMTA member warranting further investigation. Such investigation may require an audit by one of MMTA’s appointed independent inspection companies. Should the inspection confirm a breach of compliance with the MMTA Warehouse Company Criteria - Financial and Regulatory and/or gross deviation from the Security Guidelines without any mitigating measures - then the cost of the inspection and necessary remedial upon borne by the MMTA. Security Guidelines Explanatory note This section will address the requirements in respect of storage and handling of the following product categories:

Storage and handling of "higher volume minor metals" including palletized drums, big bags may require bulk stacks or rack storage. By mutual agreement between customer and warehouse such products may be stored in a locker or separate from other products in the Warehouse Company's location. If a customer's preferred option cannot be catered for, goods may be moved to an alternative warehouse / location at the cost of the customer.
Storage and handling of “low volume/ high value metals”, including palletized drums, pails, boxes or other individual packing which require storage in a separate locker or high value storage area. For the storage of "low volume/high value metals" additional requirements are stipulated per below.

Building/warehouse
1. General

1. 1. The warehouse is required to have a designated security officer
  2. For the storage of high value/low volume metals additional guidelines as per clause c., below.

1. Perimeter and warehouse security

1. 1. An MMTA approved warehouse must either a) have a fully fenced perimeter with access control or b) security measures including access control and systems in place on the outer walls of - and entrances to the storage warehouse.
  2. If any side(s) of the warehouse borders a public road, then the operational doors bordering that road must be locked and secured and also connected to the alarm system during non-operational hours. When a side of the warehouse is bordering a public road the emergency doors must be closed and under 24/7 alarm. Additionally, the side must be under alarm and/or CCTV. Such a warehouse is only compliant for the storage of high value / low volume metals when approved under paragraph 1c (locker / cage).
  3. A burglary detection system must consist of a combination of electronic detection systems including a CCTV system, such in combination with access and/or visitor control., movement detection or other security recognised surveillance systems.
  4. The security system must be programmed for the specific warehouse building in which minor metals are stored.
  5. The warehouse burglary detection system should be connected to a (licensed Private) Monitoring Centre which may be either internal or 3^rd party.
  6. Documented procedures available for alarm response in real-time 24x7x366.

1. Locker for storage of high value-low volumemetals
  1. For the storage of high value/low volume metals a separate locker should be available within the approved warehouse. Such a locker should not have direct access to the outer perimeter wall of the warehouse.
  2. The perimeter of the locker should be caged or hard walled including roof and top.
  3. A locking device should be available on the access door, by preference with an access control system. Warehouse should not have ground floor windows. Perimeter detection and CCTV (24/7) is required, securing the outer shell of the warehouse
  4. Access to the locker should be agreed for a limited number of employees only and by preference only to long term employed staff members.
  5. The entrance to – and interior of the locker should be CCTV covered allowing image capture of those entering the locker.
  6. The locker system should be programmed as a separate zone within the (burglary) detection system, enabling it to be activated also during operational hours of the main warehouse.

1. Intrusion / burglary Detection
  1. An intrusion detection system (e.g. infrared, motion, sound or vibration detection or a combination thereof) is required to monitor the internal warehouse space and locker / cage area.
  2. The alarms must be activated according to documented and agreed block periods.
  3. Regardless of the operational hours, perimeter intrusion detection or physical barriers are required on external (dock) doors and ground-floor windows in office and warehouse. CCTV must be looked at 24/7 (incase CCTV is part of the alarm system) and CCTV must directly be available in case of an alarm
  4. The burglary detection systems must be programmed by zones allowing zone-by-zone activation during operational hours as required.
  5. A documented maintenance program covering all systems (physical and electronic) to be in place to ensure functionality at all times.
  6. Burglary detection systems on emergency doors and non-operational dock doors to be activated 24x7x366.
1. CCTV system
  1. A CCTV system to be installed covering the outside dock areas, (visitor / employee) entrance points and the main access gate for a fenced perimeter.
  2. In accordance with section c-vi the locker to be utilized with a CCTV system.
  3. CCTV systems checked to be functional at all times via a documented procedure.
  4. A documented maintenance program to be in place to ensure functionality at all times.
  5. CCTV recordings to be stored for a minimum of 30 days where allowed by local law.
  6. Access to the CCTV recording system to be tightly controlled with verifiable segregation of duty, including hardware, software and data storage.
2. Access Control
  1. Access to the perimeter and warehouse to be controlled and documented.
  2. Visitors to be recorded in a visitor log in accordance to local law. ID should be checked, and visit must be controlled.
  3. Access to the locker area to be tightly controlled with verifiable segregation of duty in order to ensure restricted access to authorized individuals only.
  4. Issue and use of keys and access cards or tags to be controlled and documented.
  5. A procedure to be in place that company assets such as keys and access cards are returned upon an employee’s termination of contract.
For driver access please refer to section ‘2. Procedures – a-i & ii’.
1. Loading / unloading and General Minimum Requirements
1. 1. Loading /Unloading
    1. Details of drivers, truckers or carriers to be recorded upon entry and exit from the warehouse. Registration to include:
      1. Full name of the trucking company
      2. Truck and trailer registration plates
      3. Name and ID card number of the driver(s). Copy to be taken of driver’s licence, if allowed by law.
      4. Country of residence
      5. Unique order number for inbound goods, pre-allocated by the warehouse
      6. Unique order number allocated by the warehouse for outbound goods
    2. Drivers are not allowed entry into the warehouse area.
    3. Loading and unloading must always take place within the perimeter of the warehouse i.e. not in a public area.
    4. When the warehouse is open, operational staff directly employed by the Warehouse Company must always physically be on site to oversee operations.
    5. Movement of material i.e. loading and unloading of trucks, containers etc must always be supervised by staff directly employed by the warehouse company.
    6. Stock and shipments stored in the locker should be signed out / in and verified by two staff members independently and who are directly employed by the warehouse. Such process to be specified in the warehouse’s Standard Operating Procedures.
  2. General requirements
    1. Electronic calibrated weighing scales must always be available and suitable for a/ bulk itemised gross weighing and b/ low volume / high value materials. Upon request, all parcels to be gross weighed into the warehouse at the time of storage and weighing is to be undertaken on a pallet by pallet, case by case or drum by drum basis for the account of storing party. Calibration to be carried out according to local regulations and company standards, available for inspection.
    2. Appropriate back-up systems to be in place to maintain day-to-day business in the event of disruption.
    3. Records to be available for all maintenance issues relating to onsite equipment, security - and access control systems.
Warehouse Clerical Procedures Minimum Requirements and Guidance:
1. 1. Warehouse Procedures (clerical)
    1. A comprehensive computerised stock control system, to be in place and in use with verifiable back-up.
    2. Each parcel or lot shall have a unique reference number.
    3. A Warehouse Management System (WMS) must be in place for all inbound and outbound movement and storage, including historical records.
  2. Warehouse storage confirmation
It is required that an MMTA approved warehouse should provide the following information in all confirmations of goods stored:
1. 1. 1. Unique warehouse reference to be used for any storage confirmation issued
    2. A storage confirmation should conform to the following format:
      1. Name of title holder.
      2. Details of whether goods are insured by warehouse on customer's behalf or not.
      3. Warehouse location (name and/or address).
      4. Full description of goods, as advised upon delivery into warehouse.
      5. Origin to be included upon request by the owner of the goods.
      6. Number and type of packing units. Markings to be provided upon request.
      7. It shall be the responsibility of the first member company receiving material in warehouse from a non-association party, or when first placing material into warehouse for eventual onward release, to have the material gross weighed (STW) by the holding warehouse, prior to onward release. Cost of such gross weighing is for the account of the first member company.
      8. Advised net weight by supplier (STW) or actual net weight established by the holding warehouse for the parcel upon request.
      9. Remarks – to include shortages such as damages, seals, repairs to packing etc
      10. Customs Status of the goods – customs cleared per the jurisdiction in which the goods are located.
      11. Warehouse rent is for the account of party which is storing the cargo (title holder), as from the date of storage unless as otherwise agreed
  2. Releases
    1. Name of selling principal
    2. Terms (for example EXW, FCA etc) whether insured or not, irrevocable or conditional release
    3. Warehouse reference, including warehouse location (name and/or address)
    4. Full description of goods based on available records
    5. Country of origin to be included upon request by the seller of the goods.
    6. Number and type of packing units. Markings to be provided.
    7. All releases must state either actual gross weight established by the holding warehouse for the parcel or STW.
    8. All releases to state STW net weight for the parcel.
    9. Remarks at the warehouses’ discretion in respect of damage to packing, missing seals or lids etc.
    10. Customs Status of the goods – customs cleared per the jurisdiction in which the goods are located.
    11. Warehouse rent is for the account of receiver (title holder), as from the date of release unless as otherwise agreed.
    12. Effective date of release
A. Conditional Releases. Where both parties agree at the time of contract to a conditional release, this shall take the form of a holding confirmation prior to release by the Holding Warehouse to the Buyer to the following general format: Holding confirmation prior to release (updated 1st May 2014) To: (Buyer’s details) Cc: (Seller’s details) From: (Warehouse details) On the request of Messrs. [ seller ] we confirm holding for their account the parcel(s) as detailed below:
1. 1. - basis: [ ] – (Incoterms 2010)
    - customs status: [ ]
    - neither insured nor weighed by us, unless otherwise stated. Our ref. Amount / Packing s.t.w. gross kilos / s.t.w. net kilos Product:
Marks: Brand: Shape: Grade: Stored in our warehouse: [ ] Port no.: [ ] Applicable conditions: [ ] which will, except in case for force majeure, be released to your order, irrevocably, only upon our receipt of either:
1. 1. 1. A written confirmation sent DIRECTLY from the Buyer’s bank, confirming that payment in the amount of [currency and amount] has been unconditionally and irrevocably transferred for immediate value by SWIFT/Telegraphic transfer to:
(Seller’s Bank Details) Bank: Beneficiary: Account Number: Swift/Iban: OR:
1. 1. 1. An explicit written confirmation from the sellers (Seller’s confirmation) that [warehouse] may effect the final irrevocable release to buyers
B. Unconditional and irrevocable Releases. Where both parties agree at the time of contract to an unconditional and irrevocable release, this shall take the form of a release by the Holding Warehouse to the Buyer to the following general format: To: (Buyer’s details) Cc: (Seller’s details) From: (Warehouse details) On the request of Messrs. [ seller ] we release to your order the following parcel(s) as detailed below:
1. 1. - Irrevocably and unconditionally for account of
    - basis: [ ] – (Incoterms 2010)
    - customs status: [ ] (T1, EU etc.)
    - neither insured nor weighed by us, unless otherwise stated, nor are we responsible for the contents of the packing in case this document covers packed material.
    - Effective:
    - Warehouse rent starting for your account as per: Our ref. Amount / Packing s.t.w. gross kilos / s.t.w. net kilos
Product: Marks: Brand: Shape: Grade: Stored in our warehouse: [ ] Port no.: [ ] Applicable conditions: [ ] General Terms and Conditions of: [ ] : in particular Art.: [ ] The Warehouse may ask that rent and/or other charges are paid prior to release in respect of the released cargo. For collection the Warehouse may need to be informed by a working day prior to loading.