Payment Terms
Accepted modes of payment, LC terms, T/T split, bank charges, and the compliance checks Mintwell performs before accepting an order.
Last updated: 12 April 2026
1. Definitions
Bank LC — Letter of Credit, an irrevocable payment undertaking issued by the Buyer's bank.
T/T — Telegraphic Transfer (bank wire).
CAD — Cash Against Documents. Buyer's bank releases shipping documents on payment.
DP / DA — Documents Against Payment / Documents Against Acceptance (documentary collection via banks).
UCP 600 — ICC Uniform Customs and Practice for Documentary Credits, governs LC operations.
2. Accepted Payment Modes
Irrevocable Bank LC at sight
Preferred for orders above USD 50,000 and for all first-time buyers. Confirmed LC (confirmed by a first-class international bank) required from buyers in sanctioned or high-risk jurisdictions. Operative under UCP 600, payable at sight against presentation of shipping documents.
T/T Advance
Default split: 30% advance on PI acceptance, 70% balance against scanned B/L copy before B/L release to Buyer. Production begins only after advance is credited to Mintwell's bank account.
CAD / DP
Available to approved repeat buyers with a minimum of three clean prior transactions. Documents routed through Mintwell's bank to the Buyer's bank; documents released on payment.
DA / Open Account
Offered case-by-case to long-standing buyers with ECGC or equivalent credit insurance cover. Typical tenor: net 30 to net 90 days from B/L date, subject to approved credit limit.
3. Letter of Credit Requirements
LCs must be:
- Irrevocable, at sight, operative on receipt, and subject to UCP 600.
- Issued by a reputable bank acceptable to Mintwell; LCs from banks outside the top Indian corresponding-bank list must be confirmed by a first-class international bank at Buyer's cost.
- Advised through Mintwell's nominated bank in India.
- Allow partial shipment and transhipment unless explicitly prohibited in the PI.
- Provide a workable latest shipment date — typically ready date + 45 days.
- Expire in India at the counters of Mintwell's bank.
- Include a tolerance clause (+/- 5% on quantity and value) for bulk export items.
LC drafts must be sent for Mintwell's review before issuance to avoid amendment charges.
4. Bank Charges
Standard split under all payment modes:
- Charges of the remitter's / issuing / advising bank outside India — to Buyer's account.
- Charges of Mintwell's beneficiary / negotiating bank in India — to Mintwell's account.
- LC amendment charges, discrepancy fees, and reimbursement charges are to the Buyer's account unless the discrepancy is caused by Mintwell.
5. Currency
Default invoice currency is USD. EUR, GBP, AED, and INR (for buyers operating through Indian entities) are accepted on request. Exchange-rate fluctuations between PI acceptance and payment are to the Buyer's account.
6. Compliance & Sanctions Screening
Before accepting a PO, Mintwell screens:
- Buyer entity against OFAC SDN, UN Security Council Consolidated List, EU sanctions list, and Indian RBI Caution list.
- Destination country against active sanctions and Indian DGFT export restrictions.
- End-use declaration — we do not ship to restricted end-users or for restricted end-uses.
Mintwell reserves the right to refuse or cancel any order that fails compliance screening, with full refund of any advance received less bank / wire transfer charges.
7. Refunds & Cancellation
Refund rules under the various cancellation scenarios (pre-production, post-production, LC amendment, failed compliance) are set out in our Terms & Conditions clause 5.
Payment & LC queries
For LC drafts, bank coordinates, or alternative payment arrangements, contact [email protected] or +91 92664 24442.