Presentation on theme: "“Invoicing Arrangements For Late Payments” Distribution Workstream – 28th August 2008 Erika Melen UNC Modification Proposal 0220."— Presentation transcript:
“Invoicing Arrangements For Late Payments” Distribution Workstream – 28th August 2008 Erika Melen UNC Modification Proposal 0220
Seite 2Thema Datum Bereich Current UNC Arrangement for Late Payment Invoices Currently under UNC Section S3.5 “where any amount payable under an Invoice is not paid on or before the due date, the paying party shall pay interest, after as well as before judgment, at the Applicable Interest Rate, on the unpaid amount from the Invoice Due Date until the Day on which payment is made.” Transporters have no obligation to raise a Late Payment Invoice & more importantly no timescale underlined in UNC. Shippers are unable to raise Late Payment Invoices so the incentive lies with the Transporters.
Seite 3Thema Datum Bereich Modification Proposal 0220 Change to UNC Section S3.5 is proposed that will state the time period in which Late Payment Invoices are to be issued. Late Payment Invoices should be raised by the Transporters no more than 30 days after the late payment date. Failure to raise the Late Payment Invoice within this time will mean Shippers can Net Off the late payment charges against the next payment run (providing the Shipper gives 5 days notice to the transporters).
Seite 4Thema Datum Bereich Comments on Proposal Transporters & Shippers will have clear guidelines regarding Late Payment Invoicing/Charging, which may benefit both parties Shippers will not be penalised if Transporters are unable to raise the late payment invoices. There will be adequate incentive to Transporters to ensure Late Payment Invoices (both debits and credits) are processed on time.