These Payment Terms & Conditions (hereinafter referred to as “these Terms”) apply to all purchases of custom machinery and production lines from Zhengzhou Quncheng Machinery Equipment Co., Ltd. (hereinafter referred to as “the Company”). By placing an order with the Company, the client is deemed to have agreed to and accepted all the contents of these Terms.
Quotation Validity: All prices quoted by the Company are valid for a period of 30 calendar days from the date of issuance, unless otherwise specified in writing. After this period, prices are subject to change without prior notice.
Price Basis: All prices are quoted in [Specify Currency, e.g., United States Dollars (USD)] and are exclusive of any applicable taxes (including but not limited to sales tax, value-added tax, customs duties, and import levies), shipping costs, insurance, installation, or commissioning fees, unless explicitly stated otherwise in the sales contract.
Pricing Adjustments: The Company reserves the right to adjust prices for raw materials, components, or labor costs that occur between the date of quotation and the date of delivery, especially for long-term projects or those requiring significant lead times. Any such adjustments will be communicated to the client in writing.
Payment for custom machinery and production lines shall be made according to the following schedule, unless otherwise mutually agreed upon and specified in the sales contract:
Down Payment: An initial down payment of 30% of the total contract value is required upon signing the sales contract. Production of the machinery or commencement of the project line will only begin after receipt of this payment.
Milestone Payments: Further payments may be scheduled based on the completion of specific project milestones, such as design approval, major component fabrication, or factory acceptance testing (FAT). The exact percentage and timing of these payments will be detailed in the sales contract.
Pre-Shipment Payment: A payment of 60% of the total contract value (less the down payment and any milestone payments already made) is due prior to the shipment of the machinery or components from the Company’s facility.
Final Payment: The remaining balance of 10% of the total contract value is due upon successful on-site commissioning and final acceptance by the client, or within 15 calendar days of shipment if on-site commissioning is not part of the Company’s scope.
Payments can be made via bank wire transfer to the Company’s designated bank account. All bank charges associated with the transfer are the sole responsibility of the client. Other payment methods may be considered upon mutual agreement and must be specified in the sales contract.
Grace Period: A grace period of 5 business days may be granted for overdue payments.
Late Payment Charges: If any payment is not received by the due date, the Company reserves the right to charge interest on the overdue amount at a rate of 1.5% per month or the maximum rate permitted by law, whichever is lower, calculated from the due date until the date of full payment.
Suspension of Services: The Company reserves the right to suspend production, delivery, installation, commissioning, or any after-sales services until all overdue payments, including any accrued interest, are received in full.
Collection Costs: In the event of late payment, the client shall be responsible for all costs incurred by the Company in collecting overdue amounts, including but not limited to legal fees, collection agency fees, and administrative charges.
For international transactions, prices are set based on the exchange rate prevailing at the time of quotation. If significant fluctuations in currency exchange rates occur between the quotation date and the payment date, the Company reserves the right to adjust the final invoice amount to reflect such changes, ensuring the Company receives the equivalent value in its functional currency. Any such adjustments will be communicated and agreed upon with the client.
The client is solely responsible for all applicable taxes, duties, levies, customs charges, and any other governmental fees associated with the purchase and importation of the machinery and components into their country. The Company will provide necessary documentation to assist with customs clearance, but will not be responsible for any delays or additional costs incurred due to import regulations.
The ownership and title of the machinery and components shall remain with the Company until the full purchase price, including any interest or other charges, has been received in cleared funds by the Company. Until such time, the client shall hold the goods as the Company’s fiduciary agent and bailee, and shall keep the goods separate from those of the client and third parties, properly stored, protected, and insured.
In the event of any payment dispute, both parties shall first attempt to resolve the matter through amicable negotiation. If a resolution cannot be reached, the dispute shall be resolved in accordance with the dispute resolution provisions outlined in the main sales contract.
Please Note: These Terms are general payment terms. The specific payment schedule, methods, and any other financial arrangements for a particular order will be detailed in the sales contract. The Company reserves the right to the final interpretation of these Terms.
We appreciate your business and look forward to a successful partnership.
