London Stamp Exchange philatelic auctions

STANDARD TERMS & CONDITIONS OF SALE OF LONDON STAMP EXCHANGE LIMITED

CONDITIONS OF BUSINESS

These Conditions of Business represent the terms upon which, London Stamp Exchange Limited ("London Stamp"), contracts with Sellers ("Sellers"); and acting in its capacity as agent on behalf of Sellers, contracts with Buyers ("Buyers"). The items in this sale are offered under the British Philatelic Auctioneers standard terms and conditions of sale (1985 Revisions). Where there is any conflict between London Stamp standard Terms and Conditions of sale, London Stamp shall prevail. The definition of words and phrases with special meanings appear in Condition.

CONDITIONS PRIMARILY CONCERNING BUYERS (TO BE READ BY SELLERS ALSO)

1. The Buyer
The highest bidder shall be the buyer at the "hammer price" and any dispute shall be settled at the auctioneer's absolute discretion. Any bidder acting for any person who is not bidding shall be jointly and severally liable with that person for satisfaction of all obligations and liabilities hereunder.
2. Catalogue Descriptions
2.1. Any statement or representation made by London Stamp whether in the catalogue, at rostrum or otherwise as to the authorship, origin, date, age, size, medium, attribution, genuineness, provenance, condition, nature, reference to particular defects, damage, repair, restoration or estimated selling price of any lot is a statement of opinion only and should not be relied upon. No warranty or undertaking is made as to the accuracy of any such opinion.
2.2. Buyers must satisfy themselves as to all matters referred to in Condition 2.1. above by inspection or otherwise before bidding and eventual purchase.
3. The Buyer's Premium
The Buyer shall pay to London Stamp a premium at the rate of 17.63% (equal to 15% premium plus 17.5% VAT thereon) on the "hammer price", which will be final price. The buyer also agrees that London Stamp, when acting as an agent for the Seller, may also receive commission from the Seller according to Condition 9.
4. Value Added Tax
4.1. Under Auctioneer's Margin Scheme or Global Accounting Margin Scheme Where the Seller is either a private individual or registered under the margin scheme either in the UK or in any other EC Member state, no VAT is payable by the buyer on the hammer price. The VAT (17.5% on 10% premium) payable on the Buyer's premium under Condition 3 above is considered "notional VAT" under these two schemes and is not recoverable by the Buyer.
4.2. Outside the Auctioneer's Margin Scheme or Global Accounting Margin Scheme. Where the seller is registered for VAT, either in the UK or in any other EC Member state and he does not operate either of these two schemes, VAT at 17.5% is payable on the hammer price by the buyer. These lots are marked by the dagger symbol (†) in the catalogue.
4.3. Imported Lots
Imports from non-EU countries such as Japan, USA and other countries are subject to 2.5% VAT on importation. This VAT of 2.5% on the total purchase price (hammer price plus Buyer's premium) is payable by the Buyer under London Stamp's Temporary Importation Scheme. These lots are marked by the star symbol (*) in the catalogue. This VAT of 2.5% is collected by London Stamp and paid to HM Customs on behalf of the buyer.
4.4. VAT Refunds (Exports)
Where the buyer exports the goods and provides evidence of export of where London Stamp exports goods on behalf of the buyer, VAT refund may be due as follows:
4.4.1. Buyer from within the EU: where 17.5% VAT on the hammer price was charged, this may be refunded. Where 2.5% VAT was charged on the hammer price and Buyer's premium on import, this may not be refunded. Where 17.5% VAT has been paid on the Buyer's premiums, it may be refunded only if the Seller is not operating one of two margin schemes.
4.4.2. Buyer from outside the EU: where 17.5% VAT on the hammer price was charged, this may be refunded. Where 2.5% VAT on the hammer price and buyer's premium, this may not be refunded.
4.4.3. Export Retail Scheme: Customs & Excise will refund Buyer directly under this scheme for private Buyers.
4.4.4. Export License: UK Domestic and/or EC Export License may be required for export.
4.4.5. Refund Application: Buyer must notify London Stamp if he wishes to apply for refund of VAT.
4.6. Purchase Invoice
The purchase invoice will not show VAT separately. It will show the hammer price plus Buyer's premium at 17.63% and the total. Buyer will advise London Stamp of his name, address, banker's details and VAT registration number (if applicable) for invoicing purposes.
4.7. General: This entire Condition 4 should be read in conjunction with Condition 11.
5. Payment and Title to Goods
The Buyer shall pay London Stamp the "total amount due" which will be the full purchase price (i.e. hammer price. Buyer's premium and any VAT due) plus any other agreed charges hereunder within 7 calendar days after the date of sale. The legal ownership of the lot bought shall not pass to the Buyer until he has made payment in full to London Stamp of the "total amount due".
6. Collection of Purchases
6.1. The Buyer shall at his expense remove the purchased not later than 7 calendar days after the day of the auction but not before payment of London Stamp of the "total amount due".
6.2. The Buyer may be charged additional costs such as storage, interest on late payment, consequential loss arising on re-sale of the lot, insurance, etc. if the lot is not removed within 7 calendar days.
6.3. London Stamp will not be responsible for any loss, damage or theft after the expiration of the 7 calendar days unless agreed payments are made under Condition 6.1 and 6.2 above.
7. Liability of London Stamp and the Seller
7.1. All goods sold are sold subject to all faults, imperfections and errors of description. The Buyer should satisfy himself prior to sale as to the condition of each lot and rely on his judgement as to whether the lot accords with its description.
7.2. The Seller hereby warrants that he has the authority to sell the goods, the goods correspond with the description and the goods supplied are of satisfactory quality.
7.3. A "deliberate forgery" may be returned by the Buyer (any other person is not eligible) mentioned on the original purchase invoice within 5 years of the date of auction. London Stamp's liability under the Condition will be limited to the original amount paid for the Lot.
7.4. Subject to the obligations accepted by London Stamp hereunder no warranty undertakings or guarantee whether implied or expressed, is given as to the genuineness or authenticity or description of any lot by London Stamp or by the Seller or any of their respective agents, nominees or designees.

CONDITIONS PRIMARILY CONCERNING THE SELLER (TO BE READ BY THE BUYER ALSO)

8. The Seller
The Seller shall be the legitimate owner or is the authorised agent of the legitimate owner of the relevant lot or lots. In some cases, provided all relevant legal conditions are met, a trustee, mortgagee, sheriff or police may be the authorised seller. A sale may be authorised under writ of ficri facias, distress for rent and other miscellaneous powers granted by a Court of Law.
9. The Seller's Commission
The Seller shall pay London Stamp a commission at the rate of 11.75% (equal to 10% commission plus 17.5% VAT thereon) on the hammer price, which will be the final bid price. The Seller also agrees that London Stamp, when acting as an agent for the buyer, may also receive a premium from the buyer according to Condition 3.
10. Sales Invoice
The sales invoice will not show VAT separately. It will show the hammer price less Seller's commission of 17.63% and the net amount. Seller will advise London Stamp of his name, address, bankers and VAT registration number (if any) for invoicing purposes.
11. Value Added Tax
11.1. Auctioneer's Margin Scheme or Global Account Margin Scheme Works of art, antiques and collector's items are treated as second-hand goods and fall under Customs & Excise margin scheme for VAT purposes. VAT of 17.5% is payable on the dealer's margin, that is the difference between the buying and the selling price rather than the whole of the selling price. The seller, the auctioneer and/or the buyer can either opt to operate this scheme or opt to charge the full 17.5% on the hammer price, the premium and/or the commission. London Stamp has opted to use this scheme.
11.2. The Seller and VAT
The Seller will advise London Stamp whether he is operating the Margin Scheme or whether he is operating the normal rules VAT method. He has to operate one or the other method at least for two years before changing over. He cannot operate both methods. Under the margin scheme he cannot charge VAT on the hammer price. Under the normal VAT rules method, he can charge 17.5% VAT to the buyer on the hammer price. The latter type of lots are marked by a dagger symbol (†) in London Stamp's catalogue.
11.3. Global Accounting Margin Scheme
Under this scheme which applies to items under £500 each, a VAT registered dealer may opt to account for VAT on the difference between the buying and selling prices of all eligible goods bought and sold in each accounting period, without the need to maintain a detailed record of individual items dealt with under the margin schemes. London Stamp does not operate this scheme.
11.4. Seller from within EU
The Seller can be a private Seller when cannot charge VAT. Or, the Seller can be a dealer or business, either registered for VAT or not registered. If registered, he must advise London Stamp his VAT registration number in the UK or other EU Member state.
11.5. Seller from outside EU
The Seller from countries such as Japan, USA, etc. are outside the scope of VAT and he cannot charge VAT under any circumstance.
11.6 This entire Condition 11 should be read in conjunction with Condition 4.
12. Seller's Warranties and Liabilities
12.1. The Seller warrants and undertakes that he has the right to sell the lot free from any third party claims, liens, encumbrances or other restrictions on title.
12.2. The Seller warrants and undertakes that he will make the lot available and in a deliverable state on demand by the Buyer.
12.3. The Seller hereby confirms that he has given London Stamp all relevant information in his possession concerning the provenance of the lot and that to the best of the Seller's knowledge and belief such information is accurate.
12.4. The Seller will indemnify London Stamp and the Buyer against any claim, actions, expenses, damages or costs (including reasonable legal costs) incurred or suffered either directly or indirectly as a result of any breach, alleged breach, or non-performance by the Seller of the Terms and Conditions.
13. London Stamp's Duties to the Seller
13.1. London Stamp agrees to act according to the Seller's reasonable instructions in the performance of its duties hereunder.
13.2. London Stamp agrees to act with due skill and care in and about the sale his principal's lot.
14. Special Conditions
14.1. In the event of a dispute as to any bid the Auctioneer may withdraw the lot from the Sale during the Sale.
14.2. The bidding and advances shall be regulated by and at the Auctioneer's discretion.
14.3. The condition of covers that have been commercially used through the post are often affected by minor creases, tears or stains. These may not be mentioned in the descriptions as they are considered endemic, and are not accepted as grounds for return.

Extensions
Buyers who wish to obtain expert opinion on any lot (other than a mixed lot or lot containing undescribed stamps) are requested to notify us in writing not less than forty-eight hours before the sale. Notice of a request for an expert opinion must give the reason why such is required and specify the identity of the expert which will be subject to our agreement. Buyers are reminded that any lot(s) purchased 'on extension'are subject to full payment in accordance with our normal Terms & Conditions of Business. Settlement of any lots on extension should be made at the time of invoice payment. Overdue accounts are subject to interest charges. Extensions requested on account of condition will not normally be accepted for expert opinions. Any lot described as having faults or defects may not be returned should a certificate cite other faults or defects not included in the catalogue description. Should we accept a request for an extension under the foregoing provisions of this paragraph, the fact may be stated by the Auctioneer from the rostrum prior to the sale of the lot. It should be noted that any stamp accompanied by a Certificate of Authenticity is sold on the basis of that Certificate only and not on the basis of any other. No request for an extension will be accepted on such a stamp and the return of such a stamp will not be accepted.

London Stamp Exchange
38 Greyhound Road, London W6 8NX, England
Tel: +44 (0) 2076101387 Fax: +44 (0) 20 7610 0078
E-mail: admin@londonstampex.com Website: www.londonstampex.com