Para 6.3 — GOODS_MANUAL

6.3. Terms of Payment for Domestic Goods 1. Terms of Payment may be decided by the procuring entity safeguarding its interest based on the terms of delivery, nature of goods, type of inspection, mode of transport and risks in such situations. The following payment terms are suggested for various terms of delivery. 2. Where the term of delivery is FOR destination/ delivery at site, the usual payment term is 100 (hundred) per cent on receipt and acceptance of goods by the consignee and on the production of all required documents by the supplier. 3. Where the terms of delivery are FOR Dispatching Station, the payment terms, depending on the value and nature of the goods, mode of transportation, and so on, may be 60 to 90 (sixty to ninety) per cent on proof of dispatch and other related documents and balance on receipt at site and acceptance by the consignee. 4. Where goods to be supplied also need installation and commissioning by the supplier, the payment terms are generally: a) For a contract with terms of delivery as FOR dispatching station -- 60 (sixty) per cent on proof of dispatch along with other specified documents, 30 (thirty) per cent on receipt of the goods at the site by the consignee and a balance of 10 (ten) per cent on successful installation and commissioning and acceptance by the consignee;

Chapter 6: Forms of Securities, Prices, Payment Terms and Price Variations b) For a contract with terms of delivery as FOR destination/delivery at the site -- 90 (ninety) per cent on receipt and acceptance of goods by the consignee at destination and on production of all required documents by the supplier and balance 10 (ten) per cent on successful installation and commissioning and acceptance by the consignee.

Note: Generally (especially for goods requiring installation and commissioning at the site by the supplier), the desirable terms of delivery are FOR destination/delivery at the site so that the supplier remains responsible for the safe arrival of the ordered goods at the site. Therefore, unless otherwise decided, ex-works or FOR dispatching station terms should be avoided.