Penalties for Exportation to Canada

We, one of exporters from Indonesia, recently, has received an order from Canada. As usual, for the first order buyer gives a little quantity, and this buyer from Canada as well. The Buyer only gave us 2400 pieces as stated on the order sheet they given.

Buyer  have also sent us the manual for handling their order. When I read the manual until end of the page, I got some surprises when I read some penalty because of some conditions. This kinds of penalty is so high than we have ever. Here I will mention some conditions, which will bring us to take some penalties:

Late delivery.

The discount taken on late delivery, which divide to several interval:

•  6-10 days late from initial delivery. It will taking discount 10% from the total invoice.
• 11-15 days late form initial delivery. This condition takes us to pay air freight charges. It means that the shipment mode will be changed from by sea to air shipment under our account.
• 16-20 days late from initial delivery. The shipment will be by air prepaid or we'll pay the cost shipment until port destination, and additionally, buyer gets 15% discount from total invoice from us.
• 21-25 days late from initial delivery. We'll pay the air freight and buyer gets 20% discount because of this lateness.
• 26-30 days late from initial delivery. Because of this lateness, shipment will do by air prepaid or we pay the air freight and buyer gets 25% discount on invoice.
• 31 plus days late. We pay the air freight charges and the discount to become 50% from invoice.

Shortage and Overage.

The tolerance of shortage or overage buyer given is 5% from the initial quantity. If the shortage or overage out of tolerance, buyer will apply discount depending on the quantity of shortage or overage.

• 50% to 10%. This shortage or overage condition brings us to pay 15% from total amount of invoice.
• 10% to 20%. Buyer takes 20% discount from the total invoice from us if this shortage or overage happened.
• More than 20%. The discount will be 50% from the total amount of invoice, or the order will be cancelled.

Missing price tickets.

We'll pay US$0.50 for each price ticket missing.

Wrong retail price.

We'll be charged US$250.00 at minimum for wrong retail price. 

Wrong ticketing.

Wrong ticketing is when we are wrong on placing or attaching the ticket. For example, we attach size XL hang tag label on size L garment. We will pay US$250.00 for this.

Wrong packing list.

If the packing list differ from the goods shipped or received, US$500.00 will be applied to us as the penalty.

Wrong carton content.

If there is a discrepancy between carton marking and the carton content, we'll pay US$10.00 for each carton with a minimum of US$100.00.

Marking.

Charge for wrong carton marking is US$5.00 per carton.

Late shipping documents.

If buyer receive shipping document two days prior to ETA, we should pay US$1000.00 per shipment and US$500.00 per shipment for late document received one week after on board date.

Missing shipping document.

Buyer charges us US$500.00 per shipment if the shipping documents are missing or wrong.