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Terms of Payment - Prepayment Prepayment shall
be understood as a full (100%) or partial prepayment, contingent on each specific
contract. 100% Prepayment Upon agreement on the
terms of payment by the buyer and the seller – 100% prepayment. The buyer shall
make the payment to the seller’s current account not later than 15 days prior
to the planned shipment month. All full (100%) prepayment details are
negotiated for each specific shipment. Partial Prepayment
Partial prepayment shall be understood as transfer of the monies prior to and
after the shipment. It can be 50/50, 70/30. Upon agreement on the terms of payment
by the buyer and the seller – partial prepayment. The buyer shall make the payment
to the seller’s current account not later than 15 days prior to the planned shipment
month. All partial prepayment details are negotiated for each specific
shipment. Terms of Payment of the
Letter of Credit A letter of credit shall be accepted as a means of payment
in the following manner: 1. Upon coordination of the letter of credit
project between the Buyer’s and the Seller’s banks the Buyer shall draw an irrevocable,
100% covered for the amount of the cost of the monthly supply volume, divisible
and confirmed letter of credit within 7 banking days after execution of the contract
for the duration of not less than 55 days. 2. A letter of credit shall
comply with the Uniform Customs and Practices for Documentary Credit approved
by the International Chamber of Commerce in the ICC Publication No.500 dated 1993.
3. A letter of credit shall be paid in parts for each shipped batch within
the framework of the Goods monthly batch. 4. Banking expenses in the Seller’s
bank shall be borne by the Seller, and in the Seller’s bank – by the Buyer. In
the event of the use by the Seller of the correspondent bank services the costs
shall be covered by the Seller, and in the event of the Buyer’s use of the correspondent
bank services the costs shall be covered by the Buyer. 5. All detailed
terms of the letter of credit shall be specified in the appendices to the contract.
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