Industrias Plásticas Médicas

Credit and collection policies

1.- Prices and Payment Conditions

Prices are based on the price list (VEN-18). This list does not include VAT or any other applicable tax.

New CUSTOMERS will pay in ADVANCE PAYMENT.

Prepaid orders will be valid in the system only for 15 days, if payment is not received within this time, the order will be automatically cancelled.

Payment shall be made in dollars (USD) or Mexican pesos (MXN), at the exchange rate published by DOF on the day of payment, according to the prices of the commercial proposal. In no case, the CUSTOMER may withhold payment of an invoice without justification.

In case of non-payment of any invoice, IPM reserves the right to unilaterally modify the previously agreed payment terms and may take appropriate legal action.

Government Support Prices are those that are previously authorized in writing by the Commercial Manager, and in the case of special products must come with a quotation authorized by the Commercial Manager and/or General Management.

2.- Credits

2.1. GENERAL

New lines of credit requested by the customer must be authorized by the Commercial Manager with an initial amount of their average purchases.

This will be effective from the date on which the Credit and Collection Assistant informs the customer that his/her credit line has been approved. In order to consider approving the credit lines, it is an indispensable condition that the customer makes a minimum of 3 purchases, within a minimum period of 3 months. The credit line granted may not exceed the customer's historical purchase amount.

The payment term of the credit granted shall start from the date on which IPM's warehouse sends the invoice to the customer and/or sales representative. In the accounting of the days, calendar days and not working days shall be considered.

Example:

I.- Warehouse sends invoice today January 1st (specifying the carrier company).

II.- The destination is Veracruz, so IPM is committed to the customer to receive it in 5 days, from the moment they receive the invoice (depends on the CP and the carrier company).

III.- The order should arrive on January 6th.

IV.- If it does not arrive by January 6, it is necessary to notify the Warehouse.

V.- If received on time, and considering that the customer has 30 days to pay, the customer must pay no later than February 1.

CUSTOMERS who wish to extend the amount of their credit line or the payment term, must request it through form CON-10 and provide the documentation requested in this form. The extension must be authorized by the Commercial Manager.

Regardless of whether the client is an individual or a legal entity, it is essential to provide copies of the requested documentation in order to be eligible to receive a loan.

Delinquency in the payment of an order will cause temporary suspension of the customer's credit line. This suspension will be maintained until the customer fully complies with its overdue commitments. If the situation is repeated THREE times, the credit line will be suspended permanently, without prior notice.

CUSTOMERS with suspended credit lines may make new purchases until they have paid their overdue accounts, as long as the overdue accounts are not more than 15 days overdue. These purchases must be authorized by the Commercial Management and the Credit and Collection Area, and will be exclusively as ADVANCE PAYMENT.

If a CUSTOMER's credit line was suspended due to non-compliant payments, and the CUSTOMER requests the reopening of the credit line, the case must be examined by the Commercial Management and it will decide whether to approve the previous credit line or a new one, specifying the conditions and requirements to be met by the CUSTOMER; or, if applicable, it will reject the request.

When a CUSTOMER with a credit line pays by check and more than one check is returned in a month, the credit line will be cancelled and the CUSTOMER will only be allowed to make new purchases with prepayment.

In accordance with art. 193 of the Law of Credit Instruments and Operations, the CLIENT agrees to pay IPM a 20% penalty for each check returned for any cause attributable to the CLIENT, as well as the commissions charged by the bank to this company for the return of the check.

CUSTOMERS of special and maquila products must pay a 50% advance payment, and cover the other 50% to deliver the product.

IPM may define other payment conditions according to the needs or payment history of each CLIENT, as well as suspend credit lines when deemed appropriate.

2.2- MAINTAIN LINE OF CREDIT IN THE EVENT OF A CHANGE OF CORPORATE NAME

In the event that a CUSTOMER changes its corporate name and wishes to keep its previous credit line, it must send a request to the Customer Service area (ventas@ipm.mx).

Letter explaining the reasons for the change
Format VEN-17 Data update.
Signed form CON-10 "Credit Application

As well as copies of the following documentation:

New customer's C.F.R.
Proof of tax domicile
Articles of Incorporation and/or power of attorney (legal entity)
Official identification (Legal Representative for legal entity)
Commercial references 2 to 3
Proof of tax status
Recent financial statements
Recent bank statement.

And provide the following information:

Shipping address to: in writing
Form of payment
Payment method table
Key Description
01 Cash
02 Nominative check
03 Electronic funds transfer
04 Credit card
28 Debit card
99 To be defined

2.3.- CREDIT NOTES

In the case of returns due to quality problems, these must be reviewed and approved by the Quality Assurance Manager, before accepting the return from the CUSTOMER. If the return proceeds, the Billing Assistant will follow up on the case.

In the event of any shortage, please notify the Warehouse area in writing (almacen@ipm.mx). The maximum time limit for the customer to report any shortage is 24 hours from the date of receipt.

In the case of a re-invoicing request, the Credit and Collection Assistant (cobranza@ipm.mx ) and the Billing Assistant (almacen@ipm.mx) must be notified in writing.

In the event that a return will be accepted due to failure of the Sales Representative, the Sales Representative shall pay the freight, both shipping and return, and 20% of the invoice (MIT-121.6).

In the event that a return will be accepted due to CUSTOMER error, the CUSTOMER shall pay the freight, both shipping and return, and 20% of the invoice. (MIT-121.6)All requests must be in writing stating the cause or reason for the request.