Region Middle East : Payment Terms (Freight Prepaid and Freight Collect)
Continuous improvement is our aim to serve you better. This includes the correct and timely preparation of invoices.
In order to avoid misunderstandings and resulting invoice corrections, we kindly ask you to:
- Add specific information regarding payment terms in the remarks field of your Shipping Instructions and stipulate precisely, particularly for Terminal Handling Charge Destination (THD) and Destination Land Freight (DLF), whether the charges shall be prepaid or collect – this will help us to ensure correct invoicing.
- Refrain from using INCO terms instead of payment terms in your Shipping Instructions.
- If you require ALL charges to be prepaid or collect, your SI must specifically indicate as such, including the word “ALL” accordingly.
Unless otherwise specified by you or as indicated by any specific country requirements, we would like to provide you with the Hapag-Lloyd Region Middle East standard definitions of the terms “freight prepaid” and “freight collect”.
Ancillary charges at origin applied to the bill of lading will default as prepaid unless otherwise requested and approved.
Country specific information needs to be observed. The above handling will apply unless the respective country rules and regulations specify otherwise.
As a general guideline, our standard process also dictates that prepaid charges will be invoiced to the origin customer and booking party of record. Collect charges are invoiced at destination to the consignee (or to the notify party in case of a “to order” shipment).
According to these definitions, charges will be invoiced as prepaid to the booking party or collect to the consignee. If payment is to be made outside of the origin and destination of the shipment, this should be referred to as “elsewhere payment” and your instructions should read “elsewhere + the location + payer name and address”.
In case you have any deviations from this standard, it will be necessary to state them clearly in your shipping instructions.
Your support in this matter is much appreciated and will assist in providing a better service to you.
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