Common use of On Shipment Clause in Contracts

On Shipment. Seventy percent (70%) of the net CIP price (CIP price less Indian Agency commission) of the goods shipped shall be paid through irrevocable, non-transferable Letter of Credit (LC) opened in favour of the supplier in a bank in his country and upon submission of documents specified hereunder: (i) Four copies of supplier’s invoice showing contract number, goods description, quantity, unit price and total amount; (ii) Original and four copies of the negotiable clean, on-board Bill of Lading/ Airway bill, marked freight pre-paid and four copies of non-negotiable Bill of Lading/Airway bill; (iii) Four Copies of packing list identifying contents of each package; (iv) Insurance Certificate and documents also to be submitted for payment of LC confirming that dispatch documents has already been sent to all concerned as per the contract within 24 hours; (v) Manufacturer’s own factory inspection report and (vi) Certificate of origin by the chamber of commerce of the concerned country; (vii) Inspection Certificate for the dispatched equipment issued by recognized/ reputed agency like SGS, ▇▇▇▇▇, ▇▇▇▇▇▇ VARITUS and TUV or Equivalent prior to dispatch. (viii) Consignee Receipt Certificate in original issued by the authorized representative of user Department/Concerned Stores Department of the consignee.

On Shipment. Seventy percent (70%) of the net CIP price (CIP price less Indian Agency commission) of the goods shipped shall be paid through irrevocable, non-transferable Letter of Credit (LC) opened in favour of the supplier in a bank in his country and upon submission of documents specified hereunder: (i) Four copies of supplier’s invoice showing contract number, goods description, quantity, unit price and total amount; (ii) Original and four copies of the negotiable clean, on-board Bill of Lading/ Airway bill, marked freight pre-paid and four copies of non-negotiable Bill of Lading/Airway bill; (iii) Four Copies of packing list identifying contents of each package; (iv) Insurance Certificate and documents also to be submitted for payment of LC confirming that dispatch documents has already been sent to all concerned as per the contract within 24 hours; (v) Manufacturer’s/Supplier’s warranty certificate; (vi) Manufacturer’s own factory inspection report and (vivii) Certificate of origin by the chamber of commerce of the concerned country; (viiviii) Inspection Certificate for the dispatched equipment issued by recognized/ reputed agency like SGS, ▇▇▇▇▇, ▇▇▇▇▇▇ VARITUS and TUV or Equivalent prior to dispatch. (viiiix) Consignee Receipt Certificate in original issued by the authorized representative of user Department/Concerned Stores Department of the consignee.