Terms of Sale
One of the most important factors governing a purchase is the Buying Term used. The International Chamber of Commerce (ICC) (see website at: www.iccwbo.org) has sought to standardise and simplify the confusion surrounding 'buying terms', and has established a common set of definitions under which international trade could occur. By clearly defining the roles and responsibilities of the buyer and seller in international transactions, the ICC sought to reduce the risks and possibilities for misunderstanding in order to promote freer global trade. The terms that were established have become known as the INCOTERMS and have been updated and revised in recent years to take into account rapidly changing business practices.
It is our intent to use generally accepted INCOTERMS as our standard 'buying terms'.
If you are unable to deliver the full quantity requested on each purchase order line in one consignment, you will need to request permission before despatching the delivery. This will allow us to amend our systems before the delivery is made and assist in improving the flow through the RDC. In addition this will facilitate invoice matching and reduce the number of delivery disputes.
Please ensure that you contact The Body Shop 'Supply Chain Planning' to request permission to deliver a purchase order line over more than one consignment.
If the quantity outstanding is significant and the delay is likely to be more than 10 days, The Body Shop will review if it is still required.
Standard International and Domestic Buying Terms
FCA (named point)
This term is defined as “Free Carrier at a named place of export”. Under this arrangement, the supplier fulfils their obligation when they have delivered the appropriate merchandise, cleared customs for export, into the charge of the carrier named by The Body Shop at the point of export. Unlike some more common INCOTERMS, this one is correct for all modes of transport. In practice, our suppliers will have fulfilled their obligations under the PO when they have delivered the goods, cleared for export and with all necessary documentation, into the care of one of our global logistics partners, at the agreed named point of export (example: FCA, Factory Shanghai).
This term is not an international trade term. This should only be used in exceptional circumstance and will require the approval of The Body Shop Transport team.
Having a clear understanding of payment terms is critical to the smooth flow of product and payments. The Body Shop will agree payment terms with each supplier at the start of the relationship.
Invoices sent to The Body Shop for payment must include those detailed the Shipping Documentation section.
To facilitate invoice matching we request that you issue one invoice for each purchase order despatch. For example, if you despatch stock against five different purchase orders in one shipment, you will need to raise one invoice per separate purchase order quantity.
Where the supplier provides and charges for freight and other (non-product) costs, these must be separately identified on the purchase order and invoiced separately from the products i.e. on a different invoice.
Where there is a discrepancy between the invoiced amount and the purchase order, a debit note will be raised, reducing the invoice amount to the amount on our systems. The Body Shop will then pay the net amount (i.e. the invoice amount less the debit note).