An aluminum toll conversion agreement is a legal contract enacted between two business entities engaged in trading and processing of raw aluminum wherein the party undertaking to process raw aluminum has all the necessary plant and facilities for toll conversion and agrees to use this facility for conversion process as per specifications of the second party.
In other words it is akin to contract job work agreement wherein one party undertakes to convert raw metal into finer and purified product at its facility and the other party desirous of getting this job done agrees to make the payments in time and as per the arrangement agreed upon. An aluminum toll conversion agreement contains of specific clauses such as supply of raw material in full, the mode and timing of supply, the specifications for the conversion process, the payments and the payout cycle, the roles and responsibilities of each party with respect to supply, shipping, collection of raw and finished product, the sampling and quality assurance procedure and the legal remedies in case of any dispute.
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